Document:

exv10w1

Exhibit 10.1

 

 

AMENDED AND RESTATED

CREDIT AGREEMENT

dated as of March 25, 2010,

as

AMENDED AND RESTATED

as of December 28, 2010

among

BIOSCRIP, INC.,

as Borrower,

and

THE GUARANTORS PARTY HERETO,

as Guarantors,

THE LENDERS PARTY HERETO,

HFG HEALTHCO-4, LLC,

as Swingline Lender,

and

HEALTHCARE FINANCE GROUP, LLC,

as Administrative Agent, Collateral Agent and Collateral Manager

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE I DEFINITIONS	 	 	2	 
	Section 1.01
	 	Defined Terms	 	 	2	 
	Section 1.02
	 	Terms Generally	 	 	42	 
	Section 1.03
	 	Accounting Terms; GAAP	 	 	42	 
	Section 1.04
	 	Pro Forma Calculations	 	 	43	 
	Section 1.05
	 	Resolution of Drafting Ambiguities	 	 	43	 
	Section 1.06
	 	Rounding	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE II THE CREDITS	 	 	43	 
	Section 2.01
	 	Commitments	 	 	43	 
	Section 2.02
	 	Revolving Loans	 	 	43	 
	Section 2.03
	 	Borrowing Procedure	 	 	44	 
	Section 2.04
	 	Evidence of Debt; Repayment of Loans	 	 	44	 
	Section 2.05
	 	Fees	 	 	45	 
	Section 2.06
	 	Interest on Loans	 	 	46	 
	Section 2.07
	 	Termination and Reduction of Commitments	 	 	47	 
	Section 2.08
	 	[Intentionally Omitted]	 	 	47	 
	Section 2.09
	 	Optional and Mandatory Prepayments of Loans	 	 	47	 
	Section 2.10
	 	[Intentionally Omitted]	 	 	49	 
	Section 2.11
	 	Alternate Rate of Interest	 	 	49	 
	Section 2.12
	 	Increased Costs; Change in Legality	 	 	49	 
	Section 2.13
	 	[Intentionally Omitted]	 	 	51	 
	Section 2.14
	 	Payments Generally; Pro Rata Treatment; Sharing of Setoffs	 	 	51	 
	Section 2.15
	 	Taxes	 	 	52	 
	Section 2.16
	 	Mitigation Obligations; Replacement of Lenders	 	 	54	 
	Section 2.17
	 	Swingline Loans	 	 	57	 
	Section 2.18
	 	Letters of Credit	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES	 	 	65	 
	Section 3.01
	 	Organization; Powers	 	 	65	 
	Section 3.02
	 	Authorization; Enforceability	 	 	65	 
	Section 3.03
	 	No Conflicts	 	 	65	 
	Section 3.04
	 	Financial Statements; Projections	 	 	66	 
	Section 3.05
	 	Properties	 	 	66	 
	Section 3.06
	 	Intellectual Property	 	 	67	 
	Section 3.07
	 	Equity Interests and Subsidiaries	 	 	68	 
	Section 3.08
	 	Litigation; Compliance with Laws	 	 	69	 
	Section 3.09
	 	Agreements	 	 	69	 
	Section 3.10
	 	Federal Reserve Regulations	 	 	70	 
	Section 3.11
	 	Investment Company Act; Public Utility Holding Company Act, etc.	 	 	70	 
	Section 3.12
	 	Use of Proceeds	 	 	70	 
	Section 3.13
	 	Taxes	 	 	70	 

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	Section 3.14
	 	No Material Misstatements	 	 	71	 
	Section 3.15
	 	Labor Matters	 	 	71	 
	Section 3.16
	 	Solvency	 	 	71	 
	Section 3.17
	 	Employee Benefit Plans	 	 	71	 
	Section 3.18
	 	Environmental Matters	 	 	72	 
	Section 3.19
	 	Health Care Matters	 	 	73	 
	Section 3.20
	 	Insurance	 	 	76	 
	Section 3.21
	 	Security Documents	 	 	76	 
	Section 3.22
	 	Acquisition Documents;
Representations and Warranties in Acquisition Agreement	 	 	77	 
	Section 3.23
	 	Anti-Terrorism Law	 	 	78	 
	Section 3.24
	 	Borrowing Base Matters	 	 	78	 
	 
	 	 	 	 	 	 
	ARTICLE IV CONDITIONS TO CREDIT EXTENSIONS	 	 	79	 
	Section 4.01
	 	Conditions to Restatement Date	 	 	79	 
	Section 4.02
	 	Conditions to All Credit Extensions	 	 	83	 
	 
	 	 	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS	 	 	84	 
	Section 5.01
	 	Financial Statements, Reports, etc.	 	 	84	 
	Section 5.02
	 	Litigation and Other Notices	 	 	86	 
	Section 5.03
	 	Existence; Businesses and Properties	 	 	87	 
	Section 5.04
	 	Insurance	 	 	88	 
	Section 5.05
	 	Obligations and Taxes	 	 	89	 
	Section 5.06
	 	Employee Benefits	 	 	89	 
	Section 5.07
	 	Maintaining Records; Access to
Properties and Inspections; Annual Meetings	 	 	89	 
	Section 5.08
	 	Use of Proceeds	 	 	90	 
	Section 5.09
	 	Compliance with Environmental Laws; Environmental Reports	 	 	90	 
	Section 5.10
	 	Health Care Matters	 	 	91	 
	Section 5.11
	 	Additional Collateral; Additional Guarantors	 	 	91	 
	Section 5.12
	 	Security Interests; Further Assurances	 	 	93	 
	Section 5.13
	 	Information Regarding Collateral	 	 	94	 
	Section 5.14
	 	Maintenance of Corporate Separateness	 	 	95	 
	Section 5.15
	 	Borrowing Base Matters	 	 	95	 
	Section 5.16
	 	Net Cash Proceeds	 	 	97	 
	Section 5.17
	 	Maintenance of Ratings	 	 	97	 
	Section 5.18
	 	Designation as Senior Debt	 	 	97	 
	Section 5.19
	 	ABDC Intercreditor Agreement	 	 	97	 
	Section 5.20
	 	Post-Restatement Date Deliveries	 	 	97	 
	 
	 	 	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS	 	 	98	 
	Section 6.01
	 	Indebtedness	 	 	98	 
	Section 6.02
	 	Liens	 	 	100	 
	Section 6.03
	 	Sale and Leaseback Transactions	 	 	102	 

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	Section 6.04
	 	Investments, Loans and Advances	 	 	102	 
	Section 6.05
	 	Mergers and Consolidations	 	 	103	 
	Section 6.06
	 	Asset Sales	 	 	104	 
	Section 6.07
	 	Acquisitions	 	 	105	 
	Section 6.08
	 	Dividends	 	 	106	 
	Section 6.09
	 	Transactions with Affiliates	 	 	106	 
	Section 6.10
	 	Financial Covenants	 	 	107	 
	Section 6.11
	 	Prepayments of Other Indebtedness;
Modifications of Organizational Documents, Acquisition and Certain Other Documents, etc.	 	 	107	 
	Section 6.12
	 	Limitation on Certain Restrictions on Subsidiaries	 	 	107	 
	Section 6.13
	 	Limitation on Issuance of Capital Stock	 	 	108	 
	Section 6.14
	 	Limitation on Creation of Subsidiaries	 	 	108	 
	Section 6.15
	 	Business	 	 	108	 
	Section 6.16
	 	Limitation on Accounting Changes	 	 	109	 
	Section 6.17
	 	Fiscal Periods	 	 	109	 
	Section 6.18
	 	No Further Negative Pledge	 	 	109	 
	Section 6.19
	 	Anti-Terrorism Law; Anti-Money Laundering	 	 	109	 
	Section 6.20
	 	Embargoed Person	 	 	109	 
	Section 6.21
	 	Health Care Matters	 	 	110	 
	 
	 	 	 	 	 	 
	ARTICLE VII GUARANTEE	 	 	110	 
	Section 7.01
	 	The Guarantee	 	 	110	 
	Section 7.02
	 	Obligations Unconditional	 	 	110	 
	Section 7.03
	 	Reinstatement	 	 	111	 
	Section 7.04
	 	Subrogation; Subordination	 	 	112	 
	Section 7.05
	 	Remedies	 	 	112	 
	Section 7.06
	 	Instrument for the Payment of Money	 	 	112	 
	Section 7.07
	 	Continuing Guarantee	 	 	112	 
	Section 7.08
	 	General Limitation on Guarantee Obligations	 	 	112	 
	Section 7.09
	 	[Intentionally Omitted]	 	 	112	 
	Section 7.10
	 	Right of Contribution	 	 	112	 
	 
	 	 	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT	 	 	114	 
	Section 8.01
	 	Events of Default	 	 	114	 
	Section 8.02
	 	Rescission	 	 	116	 
	 
	 	 	 	 	 	 
	ARTICLE IX COLLECTION ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS	 	 	117	 
	Section 9.01
	 	Collection Account	 	 	117	 
	Section 9.02
	 	Application of Proceeds	 	 	117	 
	 
	 	 	 	 	 	 
	ARTICLE X THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT	 	 	118	 
	Section 10.01
	 	Appointment	 	 	118	 
	Section 10.02
	 	Agent in Its Individual Capacity	 	 	119	 

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	Section 10.03
	 	Exculpatory Provisions	 	 	119	 
	Section 10.04
	 	Reliance by Agent	 	 	120	 
	Section 10.05
	 	Delegation of Duties	 	 	120	 
	Section 10.06
	 	Successor Agent	 	 	120	 
	Section 10.07
	 	Non-Reliance on Agent and Other Lenders	 	 	121	 
	Section 10.08
	 	Name Agents	 	 	121	 
	Section 10.09
	 	Indemnification	 	 	121	 
	 
	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	122	 
	Section 11.01
	 	Notices	 	 	122	 
	Section 11.02
	 	Waivers; Amendment	 	 	124	 
	Section 11.03
	 	Expenses; Indemnity	 	 	126	 
	Section 11.04
	 	Successors and Assigns	 	 	129	 
	Section 11.05
	 	Survival of Agreement	 	 	132	 
	Section 11.06
	 	Counterparts; Integration; Effectiveness	 	 	133	 
	Section 11.07
	 	Severability	 	 	133	 
	Section 11.08
	 	Right of Setoff	 	 	133	 
	Section 11.09
	 	Governing Law; Jurisdiction; Consent to Service of Process	 	 	134	 
	Section 11.10
	 	Waiver of Jury Trial	 	 	134	 
	Section 11.11
	 	Headings; No Adverse Interpretation of Other Agreements	 	 	134	 
	Section 11.12
	 	Confidentiality	 	 	135	 
	Section 11.13
	 	Interest Rate Limitation	 	 	135	 
	Section 11.14
	 	Assignment and Acceptance	 	 	135	 
	Section 11.15
	 	Obligations Absolute	 	 	136	 
	Section 11.16
	 	Waiver of Defenses; Absence of Fiduciary Duties	 	 	136	 
	Section 11.17
	 	Patriot Act	 	 	136	 
	Section 11.18
	 	Judgment Currency	 	 	136	 
	Section 11.19
	 	Assumption of Obligations under Loan Documents	 	 	137	 
	Section 11.20
	 	Assumption of Obligations under Commitment Letter and Fee Letter	 	 	137	 
	Section 11.21
	 	Conversion of Term Loans on the Restatement Date	 	 	137	 
	Section 11.22
	 	Amendment And Restatement	 	 	137	 

ANNEXES

	 	 	 

	Annex I
	 	[Intentionally Omitted]
	Annex II(A)
	 	Revolving Commitments
	Annex II(B)
	 	Term Loans
	Annex III
	 	Net Value Factors
	Annex IV
	 	Eligibility Criteria (Eligible Receivables and Eligible Inventory)
	Annex V
	 	Borrowing Base Reserves (Eligible Receivables and Eligible Inventory)

SCHEDULES

	 	 	 

	Schedule 1.01(c)
	 	Subsidiary Guarantors
	Schedule 1.01(d)
	 	Pledgors

iv

 

	 	 	 

	Schedule 1.01(e)
	 	Refinancing Indebtedness
	Schedule 1.01(g)
	 	[Intentionally Omitted]
	Schedule 3.05(b)
	 	Real Property
	Schedule 3.06(a)
	 	Use of Intellectual Property
	Schedule 3.06(e)
	 	Agreements or Order Materially Affecting Intellectual Property
	Schedule 3.07(a)
	 	Subsidiaries
	Schedule 3.07(c)
	 	Corporate Organizational Chart
	Schedule 3.09(c)
	 	Material Agreements
	Schedule 3.19(a)
	 	Programs
	Schedule 3.19(b)
	 	Company Health Care Permits
	Schedule 3.19(f)
	 	Health Care Audits
	Schedule 3.19(j)
	 	Cash Management System
	Schedule 3.20
	 	Insurance
	Schedule 3.22
	 	Acquisition Documents
	Schedule 4.01(j)
	 	Local Counsel
	Schedule 5.20
	 	Post-Restatement Date Deliveries
	Schedule 6.01(b)
	 	Pre-Restatement Indebtedness
	Schedule 6.02(c)
	 	Pre-Restatement Liens
	Schedule 6.04(b)
	 	Pre-Restatement Investments
	Schedule 6.09(c)
	 	Employment Agreements
	Schedule 6.09(i)
	 	Other Affiliate Transactions

v

 

EXHIBITS

	 	 	 

	Exhibit A
	 	Form of Assignment and Acceptance
	Exhibit B-1
	 	Form of Borrowing Request
	Exhibit B-2
	 	Form of Borrowing Base Certificate
	Exhibit C
	 	Form of Compliance Certificate
	Exhibit D
	 	Form of Intercompany Note
	Exhibit E
	 	[Intentionally Omitted]
	Exhibit F
	 	Form of Landlord Access Agreement
	Exhibit G
	 	Form of LC Request
	Exhibit H-1
	 	Form of Revolving Note
	Exhibit H-2
	 	Form of Swingline Note
	Exhibit I-1
	 	Form of Perfection Certificate
	Exhibit I-2
	 	Form of Perfection Certificate Supplement
	Exhibit J
	 	Form of Security Agreement
	Exhibit K
	 	Form of Non-Bank Certificate
	Exhibit L
	 	[Intentionally Omitted]
	Exhibit M
	 	Form of Supplier Intercreditor Agreement
	Exhibit N
	 	Form of Collateral Management Agreement

vi

 

AMENDED AND RESTATED CREDIT AGREEMENT

     This AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 25, 2010 and as AMENDED AND
RESTATED as of December 28, 2010 (as so Amended and Restated, and as it may be further amended,
supplemented or otherwise modified from time to time, this “Agreement”), among BioScrip Inc., a
Delaware corporation (the “Borrower”), the Subsidiary Guarantors (such term and each other
capitalized term used but not defined herein having the meaning given to it in Article I),
the Lenders, Healthcare Finance Group, LLC as successor to Jefferies Finance LLC (“Jefferies”), (i)
as lead Arranger (in such capacity, the “Arranger”), (ii) as administrative agent for the Lenders
(in such capacity, the “Administrative Agent”), and (iii) as collateral agent for the Secured
Parties (in such capacity, the “Collateral Agent”), Healthcare Finance Group, LLC, as collateral
manager (in such capacity, the “Collateral Manager”), HFG Healthco-4, LLC (“HF-4”), as swingline
lender (in such capacity, the “Swingline Lender”) for the Lenders, and Healthcare Finance Group,
LLC, as Issuing Bank for the Lenders (in such capacity, the “Issuing Bank”).

WITNESSETH:

     WHEREAS, Borrower has entered into a merger agreement, dated as of January 24, 2010 (as it may
have been amended, supplemented or otherwise modified prior to the Closing Date, the “Acquisition
Agreement”), with Camelot Acquisition Corp., a Delaware corporation (“Merger Sub”), Critical
Homecare Solutions Holdings, Inc., a Delaware corporation (the “Target”), Kohlberg Investors V,
L.P., solely in its capacity as the stockholders’ representative, and Kohlberg Partners V, L.P., a
Delaware limited partnership, Kohlberg Offshore Investors V, L.P., a Delaware limited partnership,
Kohlberg TE Investors V, L.P., a Delaware limited partnership, KOCO Investors V, L.P., a Delaware
limited partnership, Robert Cucuel, Mary Jane Graves, Nitin Patel, Joey Ryan, Blackstone Mezzanine
Partners II L.P., a Delaware limited partnership, Blackstone Mezzanine Holdings II L.P., a Delaware
limited partnership, and S.A.C. Domestic Capital Funding, Ltd., a Cayman Islands limited company,
each a selling stockholder, pursuant to which it acquired on the Closing Date (the “Acquisition”)
the capital stock of the Target by means of a merger between Merger Sub and Target.

     WHEREAS, immediately following the Acquisition and as of the Closing Date, (i) the Target
became a Wholly Owned Subsidiary of Borrower, (ii) the Target became a Subsidiary Guarantor and
Pledgor for all purposes under the Loan Documents, and (iii) each Subsidiary of the Target became a
Subsidiary Guarantor and Pledgor for all purposes under the Loan Documents.

     WHEREAS, in order to fund, in part, the consummation of the Acquisition and the repayment of
outstanding indebtedness of Borrower and its Subsidiaries and Target and its Subsidiaries listed on
Schedule 1.01(e) (the “Refinancing”), Borrower and the Lenders entered into this Agreement
(as in effect immediately prior to the Restatement Date, the “Existing Credit Agreement”) pursuant
to which on the Closing Date (i) certain Lenders extended term loan credit, (ii) certain Lenders
extended revolving credit, and (iii)the Swingline Lender agreed to make Swingline Loans, all
subject and pursuant to the terms and conditions set forth in the Existing Credit Agreement, the
proceeds of which were utilized on the Closing Date in accordance with Section 3.12.

     WHEREAS, in order to fund, in part, the consummation of the Acquisition and the Refinancing,
on the Closing Date, Borrower issued $225,000,000 in aggregate principal amount of Senior Notes to
certain qualified purchasers in a transaction exempt from the registration requirements of the
Securities Act.

 

 

     WHEREAS, in order to best meet the ongoing and future capital needs of Borrower and Subsidiary
Guarantors, the parties hereto have elected to amend and restate the Existing Credit Agreement in
the manner set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
in the other Loan Documents, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree to AMEND AND RESTATE the Existing Credit Agreement on the Restatement Date in its
entirety as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings specified below:

     “ABDC means AmerisourceBergen Drug Corporation, a Delaware corporation, and its successors and
assigns.

     “ABDC Intercreditor Agreement” shall mean the Intercreditor Agreement, dated as of the Closing
Date, between the Collateral Agent (for the benefit of the Secured Parties) and ABDC, concerning
the subordination of the ABDC Lien, substantially in the form of the Supplier Intercreditor
Agreement, as amended, supplemented, waived or otherwise modified from time to time in accordance
with the terms hereof and thereof.

     “ABDC Lien” shall mean the Lien of ABDC on the Inventory of Borrower and its Subsidiaries (to
the extent sold or supplied by ABDC), related Accounts and the products and proceeds thereof, as
described more particularly and defined in the definition of “Second Priority Collateral” (as
defined in the ABDC Intercreditor Agreement) and, in all events, subject to the provisions of the
ABDC Intercreditor Agreement.

     “Accounts” shall have the meaning assigned to such term in the Security Agreement.

     “Accounts Receivable Turnover” means, at the end of any Test Period, the quotient obtained by
dividing (i) aggregate net Receivables of Borrower as presented on its balance sheet averaged for
the three-Month period then ended for such Test Period, by (ii) an amount equal to the aggregate
net revenue of Borrower for the 12 -Month period then ended for such Test Period, divided by 365
days.

     “Accreditations” shall mean collectively all accreditations, approvals or other rights issued
by any health care accrediting agency including the Joint Commission, Accreditation Commission for
Health Care, National Quality Forum and Community Health Accreditation Program.

     “Accrued Amounts” shall mean, as of any date of determination, the aggregate amount of accrued
but unpaid (whether or not due and payable) (a) interest on Loans that will become due and payable
on or prior to the next Interest Payment Date, (b) fees and expenses that will become due and
payable on or prior to the next Interest Payment Date, in each case, to the extent constituting
Obligations.

     “Acquisition” shall have the meaning assigned to such term in the recitals hereto, and as the
context requires.

2

 

     “Acquisition Agreement” shall have the meaning assigned to such term in the recitals hereto.

     “Acquisition Consideration” shall mean the purchase consideration for a Permitted Acquisition
and all other payments, directly or indirectly, by any Company in exchange for, or as part of, or
in connection with, a Permitted Acquisition, whether paid in cash or by exchange of Equity
Interests or of properties or otherwise and whether payable at or prior to the consummation of a
Permitted Acquisition or deferred for payment at any future time, whether or not any such future
payment is subject to the occurrence of any contingency, and includes any and all payments
representing the purchase price and any assumptions of Indebtedness, “earn-outs” and other
agreements to make any payment the amount of which is, or the terms of payment of which are, in any
respect subject to or contingent upon the revenues, income, cash flow or profits (or the like) of
any person or business; provided that any such future payment that is subject to a contingency
shall be considered Acquisition Consideration only to the extent of the reserve, if any, required
under GAAP at the time of the consummation of such Permitted Acquisition to be established in
respect thereof by the Companies.

     “Acquisition Documents” shall mean the collective reference to the Acquisition Agreement and
the other documents listed or required to be listed on Schedule 3.22.

     “Adjusted LIBOR Rate” shall mean as of any day in a Month with respect to any Borrowing, the
higher of (i) (a) an interest rate per annum (rounded upward, if necessary, to the next 1/100th of
1%) determined by the Administrative Agent to be equal to the LIBOR Rate for such Month, divided by
(b) 1 minus the Statutory Reserves (if any) for such Borrowing and (ii) 1.25%.

     “Administrative Agent” shall have the meaning assigned to such term in the preamble hereto and
includes each other person appointed as the successor administrative agent pursuant to Article
X.

     “Administrative Agent Fees” shall have the meaning assigned to such term in Section 2.05(c).

     “Administrative Questionnaire” shall mean an administrative questionnaire in the form supplied
from time to time by the Administrative Agent.

     “Advisors” shall mean legal counsel (including local counsel and in-house counsel), auditors,
engineers, accountants, consultants, appraisers or other advisors.

     “Affiliate” shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the person specified; provided, however, that, for purposes of
Section 6.09, the term “Affiliate” shall also include any person that directly or
indirectly owns more than 10% of any class of Equity Interests of the person specified.

     “Agents” shall mean the Arranger, the Administrative Agent, each Document Agent, the
Collateral Agent and the Collateral Manager; and “Agent” shall mean any of them, as the context may
require.

     “Agreement” shall have the meaning assigned to such term in the preamble hereto.

     “Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upward, if necessary,
to the next 1/100th of 1%) equal to the greatest of (a) the Base Rate in effect on such day, (b)
the Federal Funds Effective Rate in effect on such day plus 0.50%, and (c) 1.50%. If the
Administrative Agent

3

 

shall have determined in its reasonable discretion (which determination shall
be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective
Rate for any reason, including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base
Rate shall be determined without regard to clause (b) of the preceding sentence until the
circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate
due to a change in the Base Rate or the Federal Funds Effective Rate shall be effective on the
effective date of such change in the Base Rate or the Federal Funds Effective Rate, respectively.

     “Anti-Terrorism Laws” shall have the meaning assigned to such term in Section 3.23.

     “Applicable Margin” shall mean for any date of determination with respect to any Loan, 3.50%.

     “Approved Fund” shall mean any person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or investing in bank and other commercial loans and similar
extensions of credit in the ordinary course of its business and that is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

     “Approved Valuation” shall mean any periodic valuation of the Inventory of the Loan Parties
performed by Hilco Appraisal Services, LLC or such other unaffiliated valuation company selected by
the Collateral Manager and acceptable to Borrower and the Collateral Agent, performed at Borrower’s
or Collateral Manager’s request not more than once every six months (unless a Default or Event of
Default is continuing, in which case the Collateral Manager may request valuations on a more
frequent basis); it being understood such valuation shall (except as may be approved by the
Collateral Manager) take into account the amount estimated by such valuation company for
marshalling, reconditioning, carrying, and sales expenses designated to maximize the resale value
of such Inventory and assuming that the time required to dispose of such Inventory is customary
with respect to such Inventory.

     “Arranger” shall have the meaning assigned to such term in the preamble hereto.

     “Asset Sale” shall mean (a) any disposition of any property, by any Company and (b) any sale
or other disposition of any Equity Interests in a Subsidiary by Borrower or any issuance, sale or
other disposition of any Equity Interests by any Subsidiary (including any sale or other
disposition of any Equity Interests in a Subsidiary by any such Subsidiary), in each case, to any
person other than a Loan Party. Notwithstanding the foregoing, none of the following shall
constitute “Asset Sales”: (i) any disposition of assets permitted by Section 6.04(c)(ii),
ýSection 6.05(a), ýSection 6.06(a), ýSection 6.06(d), ýSection 6.06(i) or ýSection 6.06(j), or (ii)
solely for purposes of clause (a) above, (A) any trade-in of equipment in exchange for other
equipment in the ordinary course of business; provided that in the good faith judgment of
such Company it receives equipment having a Fair Market Value equal to or greater than the
equipment being traded in; (B) the creation of a Lien (but not the sale or other disposition of the
property subject to such Lien), to the extent it is a Permitted Lien; (C) licensing or sublicensing
of intellectual property of any Company in the ordinary course of business and otherwise in
accordance with the applicable Security Documents; and (D) any other conveyance, sale, lease,
sublease, assignment, transfer or other disposition (including by way of merger or consolidation
and including any
Sale and Leaseback Transaction) of any property, by any Company for Fair Market Value
resulting in not more than $100,000 in Net Cash Proceeds per asset sale (or series of related asset
sales) and not more than $500,000 in Net Cash Proceeds in any fiscal year.

4

 

     “Assigning Lender” shall mean each Lender immediately prior to the Restatement Date that holds
both a Revolving Commitment or a Revolving Commitment and Term Loans under the Existing Credit
Agreement, other than HF-4.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender,
as assignor, and an assignee, and accepted by the Administrative Agent, substantially in the form
of Exhibit A, or such other form as shall be approved by the Administrative Agent from time
to time.

     “Bailee Letter” shall have the meaning assigned to such term in the Security Agreement.

     “Base Rate” shall mean, for any day, the prime rate published in The Wall Street Journal for
such day; provided that if The Wall Street Journal ceases to publish for any reason such rate of
interest, “Base Rate” shall mean the prime lending rate as set forth on the Bloomberg page PRIMBB
Index (or successor page) for such day (or such other service as determined by the Administrative
Agent from time to time for purposes of providing quotations of prime lending interest rates); each
change in the Base Rate shall be effective on the date such change is effective. The prime rate is
not necessarily the lowest rate charged by any financial institution to its customers.

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United States.

     “Board of Directors” shall mean, with respect to any person, (i) in the case of any
corporation, the board of directors of such person, (ii) in the case of any limited liability
company, the board of managers or board of directors, as applicable, of such person, or if such
limited liability company does not have a board of managers or board of directors, the functional
equivalent of the foregoing, (iii) in the case of any partnership, the board of directors or board
of managers, as applicable, of the general partner of such person and (iv) in any other case, the
functional equivalent of the foregoing.

     “Borrower” shall have the meaning assigned to such term in the preamble hereto.

     “Borrower Account” shall mean, initially account # 000009069730 at Bank of America, N.A., ABA
# 011500010, or, thereafter, such other bank account designated by Borrower by written notice to
the Collateral Agent and the Collateral Manager from time to time.

     “Borrowing” shall mean (a) a Revolving Loan, or (b) a Swingline Loan.

     “Borrowing Base” shall mean, as of any date of determination, an amount equal to (i) 85% of
the Expected Net Value of Eligible Receivables, plus (ii) (x) from the Restatement Date until the
Valuation Delivery Date, 25%; provided if the Valuation Delivery Date has not occurred by January
11, 2011 due primarily to the lack of cooperation by Borrower, then 0%, or (y) all times after the
Valuation Delivery Date, 50%, of the OLV of the Eligible Inventory, in each case and at all times
as calculated by the Collateral Manager based upon the most recent Borrowing Base Certificate
delivered to the Collateral Manager by Borrower as may be modified in accordance with this
Agreement, provided, that prior to the occurrence of the Valuation Date, the amount included in the
Borrowing Base under this clause (ii) shall not exceed $12,000,000; minus (iii) Accrued Amounts,
minus (iv) Borrowing Base Reserves. For the
purposes of this defined term, “Valuation Delivery Date” shall mean the date of the delivery
to the Collateral Manager of a reasonably acceptable updated Approved Valuation.

5

 

     “Borrowing Base Certificate” shall mean a certificate signed by Borrower, substantially in the
form of Exhibit B-2 hereto, which shall provide the most recently available information
(including updated information) with respect to the Eligible Receivables and Eligible Inventory of
the Loan Parties (segregated by the classes set forth in Annex III attached hereto) that is
set forth in the general trial balance of each of the Loan Parties.

     “Borrowing Base Deficiency” means, as of any date the positive difference, if any, between (x)
the Revolving Exposure of all of the Lenders, minus (y) the Borrowing Base, determined with
reference to the most recent Borrowing Base Certificate.

     “Borrowing Base Reserves” shall mean (x) the reserves established as of the Restatement Date
and set forth on Annex V hereto and (y) the Collateral Manager shall have the right to
establish, modify or eliminate reserves against Eligible Receivables and Eligible Inventory from
time to time in its Permitted Discretion. Borrowing Base Reserves will not be established (1) for
any non-cash items, (2) for the loss of any contract including any Program Agreement, (3) to
address matters otherwise adjusted under the Expected Net Value or OLV, or (4) as a result of the
filing of any lawsuit by any person or the initiation of any investigation or inquiry by any
Governmental Authority, or in either case the threat thereof, unless and until the Collateral
Manager determines in good faith after consultation with Borrower that the basis of such lawsuit,
investigation or inquiry is likely to result in a material setoff, recoupment or other reduction of
collections under the Receivables. Without limiting the generality of the foregoing, reserves
shall in all cases be taken with respect to the full amount of Federal tax Liens, whether or not
Borrower has taken reserves with respect to such amounts on its books and records.

     “Borrowing Request” shall mean a request by Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit B, or such other form as
shall be approved by the Administrative Agent and Collateral Manager from time to time.

     “Business Day” shall mean any day other than a Saturday, Sunday or other day on which banks in
New York City are authorized or required by law to close; provided, however, that when used in
connection with the determination of the LIBOR Rate, the term “Business Day” shall also exclude any
day on which banks are not open for dealings in Dollar deposits in the London interbank market.

     “Capital Expenditures” shall mean, without duplication, for any period (a) any expenditure or
commitment to expend money made during such period for any purchase or other acquisition of any
asset including capitalized leasehold improvements, which would be classified as a fixed or capital
asset on a consolidated balance sheet of Borrower and its Subsidiaries prepared in accordance with
GAAP, and (b) Capital Lease Obligations incurred by such persons during such period with respect to
real or personal property acquired during such period, or Synthetic Lease Obligations incurred by
such persons during such period, but excluding expenditures made directly in connection with (i)
the replacement, substitution or restoration of property by reason of (i) a Casualty Event, (ii)
the Acquisition and (iii) any Permitted Acquisitions.

     “Capital Lease Obligations” of any person shall mean the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as
capital leases on a balance sheet of such person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance with GAAP.

6

 

     “Capital Requirements” shall mean, as to any person, any matter, directly or indirectly, (i)
regarding capital adequacy, capital ratios, capital requirements, the calculation of such person’s
capital or similar matters, or (ii) affecting the amount of capital required to be obtained or
maintained by such person or any person controlling such person (including any direct or indirect
holding company), or the manner in which such person or any person controlling such person
(including any direct or indirect holding company), allocates capital to any of its contingent
liabilities (including letters of credit), advances, acceptances, commitments, assets or
liabilities.

     “Cash Equivalents” shall mean, as to any person, (a) marketable securities issued, or
directly, unconditionally and fully guaranteed or insured, by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United States is pledged in
support thereof) having maturities of not more than one year from the date of acquisition by such
person, (b) time deposits and certificates of deposit of any Lender or any commercial bank having,
or which is the principal banking subsidiary of a bank holding company organized under the laws of
the United States, any state thereof or the District of Columbia having, capital and surplus
aggregating in excess of $500,000,000 and a rating of “A” (or such other similar equivalent rating)
or higher by at least one nationally recognized statistical rating organization (as defined in Rule
436 under the Securities Act) with maturities of not more than one year from the date of
acquisition by such person, (c) repurchase obligations with a term of not more than 30 days for
underlying securities of the types described in clause (a) above entered into with any person
meeting the qualifications specified in clause (b) above, (d) commercial paper issued by any person
incorporated in the United States having one of the two highest ratings obtainable from Standard &
Poor’s Rating Service or Moody’s Investors Service Inc., in each case maturing not more than one
year after the date of acquisition by such person, (e) investments in money market funds at least
95% of whose assets are comprised of securities of the types described in clauses (a) through (d)
above, and (f) demand deposit accounts maintained in the ordinary course of business with any bank
meeting the qualifications specified in clause (b) above.

     “Cash Interest Expense” shall mean, for any period, Consolidated Interest Expense for such
period, less the sum of (a) interest on any debt paid by the increase in the principal amount of
such debt including by issuance of additional debt of such kind for such period, and (b) items
described in clause (c) or, other than to the extent paid in cash, clause (g) of the definition of
“Consolidated Interest Expense” for such period.

     “Casualty Event” shall mean any loss of title or any loss of or damage to or destruction of,
or any condemnation or other taking (including by any Governmental Authority) of, any property of
any Company. “Casualty Event” shall include any taking of all or any part of any Real Property of
any person or any part thereof, in or by condemnation or other eminent domain proceedings pursuant
to any Legal Requirement, or by reason of the temporary requisition of the use or occupancy of all
or any part of any Real Property of any person or any part thereof by any Governmental Authority,
or any settlement in lieu thereof.

     “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended, 42 U.S.C. § 9601 et seq.

     A “Change of Control” means an event or series of events by which: (a) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any
employee benefit plan of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined

7

 

in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
person or group shall be deemed to have “beneficial ownership” of all Equity Interests that such
person or group has the right to acquire, whether such right is exercisable immediately or only
after the passage of time (such right, an “option right”)), directly or indirectly, of 35% or more
of the Equity Interests of Borrower entitled to vote for members of the Board of Directors of
Borrower on a fully diluted basis (and taking into account all such securities that such person or
group has the right to acquire pursuant to any option right); (b) during any period of 24
consecutive months, a majority of the members of the Board of Directors of Borrower cease to be
composed of individuals (i) who were members of that Board of Directors on the first day of such
period, (ii) whose election or nomination to that Board of Directors was approved by individuals
referred to in clause (i) above constituting at the time of such election or nomination at least a
majority of that Board of Directors or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of that Board of
Directors (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that Board of Directors occurs as a
result of an actual or threatened solicitation of proxies or consents for the election or removal
of one or more directors by any person or group other than a solicitation for the election of one
or more directors by or on behalf of the board of directors); (c) any person or two or more persons
acting in concert shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation thereof, will result in its or their acquisition of
the power to exercise, directly or indirectly, a controlling influence over the management or
policies of Borrower, or control over the Voting Stock of Borrower on a fully-diluted basis (and
taking into account all such Voting Stock that such person or group has the right to acquire
pursuant to any option right) representing 40% or more of the combined voting power of such Voting
Stock; or (d) at any time a “Change of Control” (or other defined term having a similar purpose) as
defined in the Senior Note Documents or in any document governing any refinancing of any of the
Senior Notes occurs.

     “Change in Law” shall mean (a) the adoption of any law, treaty, order, rule or regulation
after the date of this Agreement, (b) any change in any law, treaty, order, rule or regulation or
in the interpretation or application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender or Issuing Bank (or for purposes of Section
2.12(b), by any lending office of such Lender or by such Lender’s or Issuing Bank’s holding
company, if any) with any request, guideline or directive (whether or not having the force of law)
of any Governmental Authority made or issued after the date of this Agreement.

     “Charges” shall have the meaning assigned to such term in Section 11.13.

     “Cisco Capital Lease” shall mean the Master Agreement to Lease Equipment, dated as of January
15, 2010, between Borrower and Cisco Systems Capital Corporation, as it may be amended,
supplemented, waived or otherwise modified from time to time in accordance with the terms hereof
and thereof.

     “Claims”
shall have the meaning assigned to such term in Section 11.03(b).

     “Class,” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are Revolving Loans or Swingline Loans and, when used in reference
to any Commitment, refers to whether such Commitment is a Revolving Commitment or Swingline
Commitment.

8

 

     “Closing Date” shall mean March 25, 2010, being the date of the initial Credit Extension under
the Existing Credit Agreement.

     “CMS” shall mean Centers for Medicare and Medicaid Services of the U.S. Department of Health
and Human Services.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Collateral” shall mean, collectively, all of the Security Agreement Collateral, the Mortgaged
Property (if any) and all other property of whatever kind and nature, whether now existing or
hereafter acquired, pledged as collateral under any Security Document.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble hereto.

     “Collateral Manager” shall have the meaning assigned to such term in the preamble hereto.

     “Collateral Management Agreement” shall mean the Amended and Restated Collateral Management
Agreement, dated as of the Closing Date and amended and restated as of the Restatement Date,
substantially in the form of Exhibit N among the Loan Parties, the Administrative Agent,
the Collateral Manager and the Collateral Agent for the benefit of the Secured Parties, as the same
may be supplemented from time to time by one or more Joinder Agreements (as defined therein), or
otherwise.

     “Collection Account” shall have the meaning provided in the Collateral Management Agreement

     “Collections” shall mean all cash collections, wire transfers, electronic funds transfers and
other cash proceeds of Receivables and Inventory, and all Net Cash Proceeds, deposited in or
transferred to the Collection Account, including, without limitation, all cash proceeds thereof.

     “Commercial Letter of Credit” shall mean any letter of credit issued for the purpose of
providing credit support in connection with the purchase of materials, goods or services by
Borrower or any of its Subsidiaries in the ordinary course of their businesses.

     “Commitment” shall mean, with respect to any Lender, such Lender’s Revolving Commitment or
Swingline Commitment.

     “Commitment Letter” shall mean the Commitment Letter, dated December 10, 2010 (together with
the Arrangement and Fee Letter referred to therein), between Borrower and the Administrative Agent.

     “Communications” shall have the meaning assigned to such term in Section 11.01(d).

     “Companies” shall mean Borrower and its Subsidiaries; and “Company” shall mean any one of
them.

     “Company Accreditation” and “Company Accreditations” shall have the meanings assigned to such
terms in Section 3.19(c).

     “Company Health Care Permit” and “Company Health Care Permits” shall have the meanings
assigned to such terms in Section 3.19(b).

9

 

     “Company Regulatory Filings” shall have the meaning assigned to such term in Section
3.19(e).

     “Company Reimbursement Approval” and “Company Reimbursement Approvals” shall have the meanings
assigned to such terms in Section 3.19(d).

     “Compliance Certificate” shall mean a certificate of a Financial Officer substantially in the
form of Exhibit C.

     “Confidential Information Memorandum” shall mean that certain confidential information
memorandum dated February 2010.

     “Consolidated Amortization Expense” shall mean, for any period, the amortization expense of
Borrower and its Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

     “Consolidated Current Assets” shall mean, as at any date of determination, the total assets of
Borrower and its Subsidiaries (other than cash, cash equivalents and marketable securities) which
may properly be classified as current assets on a consolidated balance sheet of Borrower and its
Subsidiaries in accordance with GAAP.

     “Consolidated Current Liabilities” shall mean, as at any date of determination, the total
liabilities of Borrower and its Subsidiaries which may properly be classified as current
liabilities (other than the current portion of any Loans or Senior Notes, if any) on a consolidated
balance sheet of Borrower and its Subsidiaries in accordance with GAAP.

     “Consolidated Depreciation Expense” shall mean, for any period, the depreciation expense of
Borrower and its Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period,
adjusted by (x) adding thereto, without duplication, in each case (other than clause (e) below)
only to the extent (and in the same proportion) deducted in determining such Consolidated Net
Income (and with respect to the portion of Consolidated Net Income attributable to any Subsidiary
of Borrower only if a corresponding amount would be permitted to be (A) distributed by operation of
the terms of its Organizational Documents or any agreement (other than this Agreement and the
Senior Note Agreement), instrument, Order or other Legal Requirement applicable to such Subsidiary
or its equity holders or (B) to the extent such amount is not permitted to be distributed solely as
a direct result of the insolvency of such Subsidiary, repaid to Borrower under the Intercompany
Note):

     (a) Consolidated Interest Expense for such period,

     (b) Consolidated Amortization Expense for such period,

     (c) Consolidated Depreciation Expense for such period,

     (d) Consolidated Tax Expense for such period,

10

 

     (e) all cash proceeds of business interruption insurance received by the Loan Parties
during such period to the extent not already included in determining Consolidated Net
Income,

     (f) Consolidated Permitted Restructuring Costs for such period,

     (g) Consolidated Permitted Severance Costs for such period,

     (h) costs and expenses directly incurred in connection with the Transactions (not to
exceed $12,000,000 in the aggregate for all periods) during such period,

     (i) reasonable and customary one-time, non-recurring fees, expenses and costs relating
to any Permitted Acquisition, Equity Issuance, Investment, Debt Issuance or repayment of
Indebtedness, or amendment or modification of any Material Agreement or any regulatory
compliance matter, each to the extent permitted hereunder (whether or not consummated) and
only to the extent permitted to be deducted in accordance with GAAP (and not added back) in
calculating Consolidated Net Income not to exceed $2,000,000 in any twelve month period, in
each case, reasonably satisfactory to the Administrative Agent;

     (j) non-cash costs and expenses relating to any equity-based compensation or
equity-based incentive plan of Borrower or any Subsidiary for such period, and

     (k) the aggregate amount of all other non cash items reducing Consolidated Net Income
(excluding any non cash charge that results in an accrual of a reserve for cash charges in
any future period) for such period.

(y) subtracting therefrom the aggregate amount of all non-cash items increasing Consolidated Net
Income (other than the accrual of revenue or recording of receivables in the ordinary course of
business).

     “Consolidated Fixed Charge Coverage Ratio” shall mean, for any Test Period, the ratio of (a)
Consolidated EBITDA for such Test Period minus (i) the aggregate amount of Capital Expenditures
(other than Capital Expenditures financed with the proceeds of one or more Equity Issuances) for
such period, to the extent paid in cash, (ii) all cash payments in respect of income taxes made
during such period (net of any cash refund in respect of income taxes actually received during such
period) and (iii) all cash Dividends paid by Borrower during such period as permitted in
Section 6.08; to (b) Consolidated Fixed Charges for such Test Period.

     “Consolidated Fixed Charges” shall mean, for any period, the sum, without duplication, of

     (a) Cash Interest Expense for such period; and

     (b) the principal amount of all voluntary prepayments and scheduled amortization
payments on all Indebtedness (including the principal component of all Capital Lease
Obligations
of Borrower and its Subsidiaries for such period (as determined on the first day of the
respective period)).

11

 

     “Consolidated Interest Expense” shall mean, for any period, the total consolidated interest
expense of Borrower and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP plus, without duplication:

     (a) imputed interest on Capital Lease Obligations of Borrower and its Subsidiaries for
such period;

     (b) commissions, discounts and other fees and charges owed by Borrower or any of its
Subsidiaries with respect to letters of credit securing financial obligations, bankers’
acceptance financing and receivables financings for such period;

     (c) amortization of debt issuance costs, debt discount or premium and other financing
fees and expenses incurred by Borrower or any of its Subsidiaries for such period;

     (d) cash contributions to any employee stock ownership plan or similar trust made by
Borrower or any of its Subsidiaries to the extent such contributions are used by such plan
or trust to pay interest or fees to any person (other than Borrower or a Wholly Owned
Subsidiary) in connection with Indebtedness incurred by such plan or trust for such period;

     (e) all interest paid or payable with respect to discontinued operations of Borrower or
any of its Subsidiaries for such period;

     (f) the interest portion of any deferred payment obligations of Borrower or any of its
Subsidiaries for such period;

     (g) all interest on any Indebtedness of Borrower or any of its Subsidiaries of the type
described in clause (e) or (i) of the definition of “Indebtedness” for such period;

provided that (a) to the extent directly related to the Transactions, Debt Issuance costs, debt
discount or premium and other financing fees and expenses shall be excluded from the calculation of
Consolidated Interest Expense and (b) Consolidated Interest Expense shall be calculated after
giving effect to Hedging Agreements (including associated costs) intended to protect against
fluctuations in interest rates, but excluding unrealized gains and losses with respect to any such
Hedging Agreements.

     “Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of
Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded from such net income (to the extent otherwise included therein),
without duplication:

     (a) the net income (or loss) of any person (other than a Subsidiary of Borrower) in
which any person other than Borrower and its Subsidiaries has an ownership interest, except
to the extent that cash in an amount equal to any such income has actually been received by
Borrower or (subject to clause (b) below) any of its Subsidiaries during such period;

     (b) the net income of any Subsidiary of Borrower during such period to the extent that
(A) the declaration or payment of dividends or similar distributions by such Subsidiary of
that income is not permitted by operation of the terms of its Organizational Documents
or any agreement (other than this Agreement and the Senior Note Agreement), instrument,
Order or other Legal Requirement applicable to that Subsidiary or its equity holders during
such period,

12

 

(B) such amount is not permitted to be distributed solely as a direct result of
the insolvency of such Subsidiary, repaid to Borrower under the Intercompany Note, except
that Borrower’s equity in net loss of any such Subsidiary for such period shall be included
in determining Consolidated Net Income or (C) such net income, if dividended or distributed
to the equity holders of such Subsidiary in accordance with the terms of its Organizational
Documents, would be received by any Person other than a Loan Party;

     (c) any gain (or loss), together with any related provisions for taxes on any such gain
(or the tax effect of any such loss), realized during such period by Borrower or any of its
Subsidiaries upon any disposition of assets by Borrower or any of its Subsidiaries;

     (d) gains and losses due solely to fluctuations in currency values and the related tax
effects determined in accordance with GAAP for such period;

     (e) non-cash gains and losses resulting from any reappraisal, revaluation, write-down
or write-up of assets (including intangible assets, goodwill and deferred financing costs);

     (f) unrealized gains and losses with respect to Hedging Obligations for such period;
and

     (g) any extraordinary (as determined in accordance with GAAP) or nonrecurring gain (or
extraordinary or nonrecurring loss), together with any related provision for taxes on any
such gain (or the tax effect of any such loss), recorded or recognized by Borrower or any of
its Subsidiaries during such period.

For purposes of this definition of “Consolidated Net Income,” “nonrecurring” means any non-cash
gain or loss as of any date that (i) did not occur in the ordinary course of Borrower’s or its
Subsidiaries’ business and (ii) is of a nature and type that has not occurred in the prior twelve
month period and is not reasonably expected to occur in the future.

     “Consolidated Permitted Restructuring Costs” shall mean, for itemized restructuring charges
not exceeding $40,000,000 in the aggregate taken at any time or from time to time during the 2011
fiscal year of Borrower, in connection with the consummation of the Acquisition, those demonstrable
cost-savings and one-time restructuring costs and related charges, expenses or reserves reasonably
anticipated by Borrower as of any date of determination to be achieved or incurred, as the case may
be, including any such costs related to retention, systems establishment, pension charges, contract
terminations, lease obligations and costs to consolidate facilities and relocate employees or
equipment and similar costs, expenses or reserves following the consummation thereof, which
cost-savings and one-time restructuring costs, and related charges expenses or reserves shall (x)
in each case, be estimated by Borrower on a good faith basis as of each date of determination prior
to the inclusion of the applicable cost-savings and/or one-time restructuring costs, expenses or
reserves in the calculation of Consolidated Permitted Restructuring Costs (which may include,
without limitation, those permitted under Regulation S-X of the Exchange Act).

     “Consolidated Permitted Severance Costs” shall mean, one-time severance expense of Borrower
and its Subsidiaries incurred during the 2010 fiscal year of Borrower in an amount not to exceed
$5,500,000 in the aggregate.

13

 

     “Consolidated Tax Expense” shall mean, for any period, the tax expense of Borrower and its
Subsidiaries, for such period, determined on a consolidated basis in accordance with GAAP.

     “Contingent Obligation” shall mean, as to any person, any obligation, agreement, understanding
or arrangement of such person guaranteeing or intended to guarantee any Indebtedness, leases,
dividends or other obligations (“primary obligations”) of any other person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of such person, whether or
not contingent, (a) to purchase any such primary obligation or any property constituting direct or
indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any
such primary obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary
obligation; (d) with respect to bankers’ acceptances, letters of credit and similar credit
arrangements, until a reimbursement obligation arises (which reimbursement obligation shall
constitute Indebtedness); or (e) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof; provided, however, that the term “Contingent
Obligation” shall not include endorsements of instruments for deposit or collection in the ordinary
course of business or any product warranties given in the ordinary course of business. The amount
of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Contingent Obligation is made (or, if
less, the maximum amount of such primary obligation for which such person may be liable, whether
singly or jointly, pursuant to the terms of the instrument evidencing such Contingent Obligation)
or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such person is required to perform thereunder) as determined by such person in good
faith.

     “Contribution Share” shall have the meaning assigned to such term in Section 7.10.

     “Control” shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have
meanings correlative thereto.

     “Control Agreement” shall have the meaning assigned to such term in the Security Agreement.

     “Credit and Collection Policy” shall have the meaning provided in the Collateral Management
Agreement.

     “Credit Extension” shall mean, as the context may require, (i) the making of a Loan by a
Lender or (ii) the issuance of any Letter of Credit, or the amendment, extension or renewal of any
existing Letter of Credit, by the Issuing Bank.

     “Debt Issuance” shall mean the incurrence by any Company of any Indebtedness after the Closing
Date (other than as permitted by Section 6.01).

     “Default” shall mean any event, occurrence or condition which is, or upon notice, lapse of
time or both would constitute, an Event of Default.

     “Default Period”
shall have the meaning assigned to such term in Section 2.16(c).

14

 

     “Default Rate” shall have the meaning assigned to such term in Section 2.06(b).

     “Defaulted Receivable” shall mean a Receivable (i) as to which the Obligor thereof or any
other person obligated thereon has taken any action, or suffered any event to occur, of the type
described in paragraph (g) or (h) of Section 8.01 (assuming for the purposes of this clause
(i) that such Obligor or other person, as applicable, was a Loan Party), or (ii) which, consistent
with the Credit and Collection Policy, would be written off on the applicable Loan Party’s books as
uncollectible.

     “Defaulting Lender” shall mean any Lender, as reasonably determined by the Administrative
Agent, that has (a) failed to fund its portion of any Borrowing, or any portion of its
participation in any Letter of Credit or Swingline Loan, within three Business Days of the date on
which it shall have been required to fund the same, unless the subject of a good faith dispute
between Borrower and such Lender related hereto, (b) notified Borrower, the Administrative Agent,
any Issuing Bank, the Swingline Lender or any other Lender in writing that it does not intend to
comply with any of its funding obligations under this Agreement or has made a public statement to
the effect that it does not intend to comply with its funding obligations under this Agreement or
under agreements in which it commits to extend credit generally, (c) failed, within three Business
Days after written request by the Administrative Agent or Borrower, to confirm that it will comply
with the terms of this Agreement relating to its obligations to fund prospective Loans (unless the
subject of a good faith dispute between Borrower and such Lender) and participations in then
outstanding Letters of Credit and Swingline Loans; provided that any such Lender shall cease to be
a Defaulting Lender under this clause (c) upon receipt of such confirmation by the Administrative
Agent or Borrower, (d) otherwise failed to pay over to Borrower, the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within three Business Days of the
date when due (unless the subject of a good faith dispute), or (e) (i) been (or has a parent
company that has been) adjudicated as, or determined by any Governmental Authority having
regulatory authority over such person or its properties or assets to be, insolvent or (ii) become
the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, assignee for the benefit of creditors or similar person charged with reorganization
or liquidation of its business or custodian, appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or has a parent company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of
creditors or similar person charged with reorganization or liquidation of its business or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment, unless in the case of any Lender referred
to in this clause (e) Borrower, the Administrative Agent, the Swingline Lender and each Issuing
Bank shall be satisfied that such Lender intends, and has all approvals required to enable it, to
continue to perform its obligations as a Lender hereunder. For the avoidance of doubt, a Lender
shall not be deemed to be a Defaulting Lender solely by virtue of the ownership or acquisition of
any Equity Interest in such Lender or its parent by a Governmental Authority.

     “Delinquent Receivable” shall mean a Receivable (a) that has not been paid in full on or
following the 180th day following the date of original invoicing thereof, or (b) that is a Denied
Receivable.

     “Denied Receivable” shall mean any Receivable as to which any related representations or
warranties have been discovered at any time to have been breached.

15

 

     “Depositary Agreement” shall have the meaning assigned to such term in the Collateral
Management Agreement.

     “Determination Date” shall mean, for any Month, the date two Business Days immediately prior
to the first day of such Month.

     “disposition” shall mean, with respect to any property, any conveyance, sale, lease, sublease,
assignment, transfer or other disposition (including by way of merger or consolidation and
including any Sale and Leaseback Transaction) of such property.

     “Disqualified Capital Stock” shall mean any Equity Interest which, by its terms (or by the
terms of any security into which it is convertible or for which it is exchangeable or exercisable),
or upon the happening of any event, (a) matures (excluding any maturity as the result of an
optional redemption by the issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part,
on or prior to the first anniversary of the Scheduled Maturity Date, (b) is convertible into or
exchangeable or exercisable (unless at the sole option of the issuer thereof) for (i) debt
securities or other indebtedness or (ii) any Equity Interests referred to in (a) above, in each
case at any time on or prior to the first anniversary of the Scheduled Maturity Date, or (c)
contains any repurchase or payment obligation which may come into effect prior to the first
anniversary of the Scheduled Maturity Date.

     “Dividend” shall mean, with respect to any person, that such person has declared or paid a
dividend or returned any equity capital to the holders of its Equity Interests or authorized or
made any other distribution, payment or delivery of property (other than Qualified Capital Stock of
such person) or cash to the holders of its Equity Interests as such, or redeemed, retired,
purchased or otherwise acquired, directly or indirectly, for consideration any of its Equity
Interests outstanding (or any options or warrants issued by such person with respect to its Equity
Interests), or set aside any funds for any of the foregoing purposes, or shall have permitted any
of its Subsidiaries to purchase or otherwise acquire for consideration any of the Equity Interests
of such person outstanding (or any options or warrants issued by such person with respect to its
Equity Interests). Without limiting the foregoing, “Dividends” with respect to any person shall
also include all payments made or required to be made by such person with respect to any stock
appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting
aside of any funds for the foregoing purposes.

     “Document Agent” shall have the meaning assigned to such term in Section 10.08.

     “Dollar Equivalent” shall mean, as to any amount denominated in a Judgment Currency as of any
date of determination, the amount of Dollars that would be required to purchase the amount of such
Judgment Currency based upon the spot selling rate at which Bank of America, N.A. (or another
financial institution designated by the Administrative Agent from time to time) offers to sell such
Judgment Currency for Dollars in the London foreign exchange market at approximately 11:00 a.m.
London time on such date for delivery two Business Days later.

     “Dollars” or “$” shall mean lawful money of the United States.

     “Domestic Subsidiary” shall mean any Subsidiary other than a Foreign Subsidiary.

     “Early Termination Fee” shall mean 1.00% of the Revolving Commitment being reduced or
terminated hereunder.

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     “Eligibility Criteria” shall mean the criteria and basis for determining whether a Receivable
qualifies as an Eligible Receivable or Inventory qualifies as Eligible Inventory, all as set forth
in Annex IV hereto, as such Eligibility Criteria may be modified, subject to compliance
with Section 11.02, from on the recommendation of the Collateral Manager based solely on
historical performance and other Loan Party-related or Obligor-related factually-based credit
criteria upon notice from the Collateral Manager to Borrower (with a copy to the Administrative
Agent).

     “Eligible Inventory” shall mean Inventory that satisfy the Eligibility Criteria for Inventory.

     “Eligible Receivables” shall mean Receivables that satisfy the Eligibility Criteria for
Receivables.

     “Embargoed Person” shall have the meaning assigned to such term in Section 6.20.

     “Employee Benefit Plan” shall mean any “employee benefit plan” as defined in Section 3(3) of
ERISA which is or was maintained or contributed to by any Company or any of their respective ERISA
Affiliates.

     “Environment” shall mean any surface or subsurface physical medium or natural resource,
including air, land, soil, surface waters, ground waters, stream and river sediments, biota and any
indoor area, surface or physical medium.

     “Environmental Claim” shall mean any claim, notice, demand, Order, action, suit, proceeding,
or other communication alleging or asserting liability or obligations under Environmental Law,
including liability or obligation for investigation, remediation, removal, cleanup, response,
corrective action, damages to natural resources, personal injury, property damage, fines, penalties
or other costs resulting from, related to or arising out of (i) the presence, Release or threatened
Release of Hazardous Material in, on, into or from the Environment at any location or (ii) any
violation of or non-compliance with Environmental Law, and shall include any claim, notice, demand,
Order, action, suit or proceeding seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from, related to or arising out of the presence,
Release or threatened Release of Hazardous Material or alleged injury or threat of injury to
health, safety or the Environment.

     “Environmental Law” shall mean any and all applicable current and future Legal Requirements
relating to health, safety or the Environment, the Release or threatened Release of Hazardous
Material, natural resources or natural resource damages, or occupational safety or health.

     “Environmental Permit” shall mean any permit, license, approval, consent, registration or
other authorization required by or from a Governmental Authority under any Environmental Law.

     “Equity Interest” shall mean, with respect to any person, any and all shares, interests,
participations or other equivalents, including membership interests (however designated, whether
voting or nonvoting), of equity of such person, including, if such person is a partnership,
partnership
interests (whether general or limited) and any other interest or participation that confers on
a person the right to receive a share of the profits and losses of, or distributions of property
of, such partnership, whether outstanding on the date hereof or issued on or after the Closing
Date, but excluding debt securities convertible or exchangeable into such equity.

     “Equity Issuance” shall mean, without duplication, (i) any issuance or sale by Borrower after
the Closing Date of any of its Equity Interests (including any Equity Interests issued upon
exercise of any

17

 

warrant or option) or any warrants or options to purchase its Equity Interests or
(ii) any contribution to the capital of Borrower; provided, however, that an Equity Issuance shall
not include (x) any Preferred Stock Issuance or Debt Issuance, (y) any issuance of Equity Interests
made pursuant to the Acquisition Agreement, and (z) any such sale or issuance by Borrower of not
more than an aggregate amount of 10% of its Equity Interests (including its Equity Interests issued
upon exercise of any warrant or option or warrants or options to purchase its Equity Interests but
excluding Disqualified Capital Stock), in each case, to directors officers or employees of any
Company.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be
amended from time to time.

     “ERISA Affiliate” shall mean, with respect to any person, any trade or business (whether or
not incorporated) that, together with such person, is treated as a single employer under Section
414(b) or (c) of the Code, or solely for purposes of Section 302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414 of the Code. Any former ERISA Affiliate of
a person or any of its Subsidiaries shall continue to be considered an ERISA Affiliate of such
person or such Subsidiary within the meaning of this definition with respect to the period such
entity was an ERISA Affiliate of such person or such Subsidiary and with respect to liabilities
arising after such period for which such person or such Subsidiary could reasonably be expected to
be liable under the Code or ERISA, but in no event for more than six years after such period if no
such liability has been asserted against such person or such Subsidiary; provided, however, that
such person or such Subsidiary shall continue to be an ERISA Affiliate of such person or such
Subsidiary after the expiration of the six-year period solely with respect to any liability
asserted against such person or such Subsidiary prior to the expiration of such six-year period.

     “ERISA Event” shall mean (i) a “reportable event” within the meaning of Section 4043 of ERISA
and the regulations issued thereunder with respect to any Pension Plan; (ii) the failure to meet
the minimum funding standard of Section 412 of the Code with respect to any Pension Plan (whether
or not waived in accordance with Section 412(d) of the Code) or the failure to make by its due date
a required installment of a material amount under Section 412(m) of the Code with respect to any
Pension Plan or the failure to make any required contribution of a material amount to a
Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to
Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the withdrawal by any Company or any of their
respective ERISA Affiliates from any Pension Plan with two or more contributing sponsors or the
termination of any such Pension Plan resulting in liability pursuant to Section 4063 or 4064 of
ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which could reasonably be expected to constitute grounds under
ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi)
the imposition of liability of a material amount on any Company or any of their respective ERISA
Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section
4212(c) of ERISA; (vii) the withdrawal of any Company or any of their respective ERISA
Affiliates in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205
of ERISA) from any Multiemployer Plan if there is any potential liability of a material amount
therefor, or the receipt by any Company or any of their respective ERISA Affiliates of notice from
any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245
of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA;
(viii) the assertion of a material claim (other than routine claims for benefits) against any
Employee Benefit Plan, or the assets thereof, or against any Company or any of their respective
ERISA Affiliates in connection with any

18

 

Employee Benefit Plan; (ix) receipt from the Internal
Revenue Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan
intended to be qualified under Section 401(a) of the Code) to qualify under Section 401(a) of the
Code, or the failure of any trust forming part of any Pension Plan to qualify for exemption from
taxation under Section 501(a) of the Code; (x) the imposition of a Lien pursuant to Section
401(a)(29) or 412(n) of the Code or pursuant to ERISA with respect to any Pension Plan; or (xi) the
occurrence of a non-exempt prohibited transaction (within the meaning of Section 4975 of the Code
or Section 406 of ERISA) which could reasonably be expected to result in liability of a material
amount to any Company or any of their respective ERISA Affiliates.

     “Eurodollar Unavailability Period” shall mean any period of time during which a notice
delivered to Borrower in accordance with Section 2.11 or Section 2.12(e) shall
remain in effect.

     “Event of Default” shall have the meaning assigned to such term in Section 8.01.

     “Excess Payment” shall have the meaning assigned to such term in Section 7.10.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Exchange Senior Notes” shall mean senior notes issued in exchange for Senior Notes pursuant
to the Senior Note Agreement, which Exchange Senior Notes are substantially identical securities to
the originally issued Senior Notes and shall be issued pursuant to a registered exchange offer or
private exchange offer for the Senior Notes; provided that in no event will the issuance of any
Exchange Senior Notes increase the aggregate principal amount of Senior Notes theretofore
outstanding or otherwise result in an increase in the interest rate applicable to the Senior Notes
theretofore outstanding.

     “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, the Issuing
Bank or any other recipient of any payment to be made by or on account of any obligation of
Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the
United States, or by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
lending office is located and (b) in the case of a Foreign Lender (other than an assignee pursuant
to a request by Borrower under Section 2.16), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure
or inability (other than as a result of a Change in Law) to comply with Section 2.15(e),
except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time
of designation of a new lending office (or assignment), to receive additional amounts from Borrower
with respect to such withholding tax pursuant to Section 2.15(a) (it being understood and
agreed, for the avoidance of doubt, that any withholding tax imposed on a Foreign Lender as a
result of a Change in Law or regulation or interpretation thereof occurring after the time such
Foreign Lender became a party to this Agreement shall not be an Excluded Tax).

     “Executive Order” shall have the meaning assigned to such term in Section 3.23.

     “Executive Orders” shall have the meaning assigned to such term in Section 6.20.

     “Existing Credit Agreement” shall have the meaning assigned to such term in the recitals
hereto.

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     “Existing Credit Agreement Obligations” shall have the meaning assigned to such term in
Section 11.22.

     “Expected Net Value” shall mean, with respect to any Eligible Receivable, the gross unpaid
amount of such Receivable on the date of creation thereof, times the Net Value Factor.

     “Fair Market Value” shall mean, with respect to any asset (including any Equity Interests of
any person), the price at which a willing buyer, not an Affiliate of the seller, and a willing
seller who does not have to sell, would agree to purchase and sell such asset, as determined in
good faith by the Board of Directors of Borrower or, pursuant to a specific delegation of authority
by such Board of Directors or a designated senior executive officer, of Borrower, or the Subsidiary
of Borrower selling such asset.

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System of the United
States arranged by federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a
Business Day, the average (rounded upwards, if necessary to the next 1/100th of 1%) of the
quotations for the day for such transactions received by the Administrative Agent from three
federal funds brokers of recognized standing selected by it.

     “Fee Letter” shall mean the confidential Fee Letter, dated the Restatement Date, between
Borrower and the Administrative Agent.

     “Fees” shall mean the Non-Utilization Fees, the Early Termination Fees, the Administrative
Agent Fees, the LC Participation Fees, the Fronting Fees and the other fees referred to in
Section 2.05.

     “Financial Officer” of any person shall mean any of the chief financial officer, the vice
president — finance, principal accounting officer, treasurer or controller of such person.

     “FIRREA” shall mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989,
as amended.

     “Foreign Lender” shall mean any Lender that is not a “United States person” within the meaning
of Section 7701(a)(30) of the Code.

     “Foreign Subsidiary” shall mean a Subsidiary that is organized under the laws of a
jurisdiction other than the United States or any state thereof or the District of Columbia.

     “Fronting Fee”
shall have the meaning assigned to such term in Section 2.05(d).

     “Funding
Default” shall have the meaning assigned to such term in Section 2.16(c).

     “GAAP” shall mean generally accepted accounting principles in the United States applied on a
consistent basis.

     “Governmental Authority” shall mean any federal, state, local or foreign (whether civil,
administrative, criminal, military or otherwise) court, central bank or governmental agency,
tribunal, authority, instrumentality, intermediary, carrier or regulatory body or any subdivision
thereof or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers of or

20

 

pertaining to government (including any supra-national bodies such as
the European Union or the European Central Bank).

     “Governmental Real Property Disclosure Requirements” shall mean any Legal Requirement of any
Governmental Authority requiring notification of the buyer, lessee, mortgagee, assignee or other
transferee of any Real Property, facility, establishment or business, or any notification,
registration or filing to or with any Governmental Authority, in connection with the sale, lease,
mortgage, assignment or other transfer (including any transfer of control) of any Real Property,
facility, establishment or business, as may be required under any applicable Environmental Law or
of any actual or threatened presence or Release in or into the Environment, or the use, disposal or
handling of Hazardous Material on, at, under or near the Real Property, facility, establishment or
business to be sold, acquired, leased, mortgaged, assigned or transferred.

     “Granting Lender”
shall have the meaning assigned to such term in Section 11.04(h).

     “Guaranteed Obligations” shall
have the meaning assigned to such term in Section 7.01.

     “Guarantees” shall mean the guarantees issued pursuant to Article VII by each of the
Subsidiary Guarantors.

     “Hazardous Materials” shall mean hazardous substances, hazardous wastes, hazardous materials,
polychlorinated biphenyls (“PCBs”) or any substance or compound containing PCBs, asbestos or any
asbestos-containing materials in any form or condition, lead-based paint, urea, formaldehyde,
pesticides, radon or any other radioactive materials including any source, special nuclear or
by-product material, petroleum, petroleum products, petroleum-derived substances, crude oil or any
fraction thereof, or any other pollutants, contaminants, chemicals, wastes, materials, compounds,
constituents or substances, defined under, subject to regulation under, or which can give rise to
liability or obligations under, any Environmental Laws.

     “Health Care
Audits” shall have the meaning assigned to such term in Section 3.19(f).

     “Health Care Laws”
 shall have the meaning assigned to such term in Section 3.19(g).

     “Health Care Permits” shall mean, collectively, all licenses, leases, powers, Permits,
franchises, certificates, authorizations, approvals, consents, variances, exemptions, certificates
of need, certifications, Orders and other rights necessary for and relating to the provision of
health care services provided by the Companies.

     “Hedging Agreement” shall mean (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, cap transactions, floor transactions, collar
transactions, spot contracts, or any other similar transactions or any combination of any of the
foregoing (including any options or
warrants to enter into any of the foregoing), whether or not any such transaction is governed
by, or otherwise subject to, any master agreement or any netting agreement, and (b) any and all
transactions or arrangements of any kind, and the related confirmations, which are subject to the
terms and conditions of, or governed by, any form of master agreement (or similar documentation)
published from

21

 

time to time by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement (any such agreement
or documentation, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

     “Hedging Obligations” shall mean obligations under or with respect to Hedging Agreements.

     “HF-4” shall have the meaning assigned to such term in the preamble hereto.

     “Indebtedness” of any person shall mean, without duplication, (a) all obligations of such
person for borrowed money or advances; (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments; (c) all obligations of such person under conditional sale
or other title retention agreements relating to property purchased by such person (even though the
rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property); (d) all obligations of such person issued or
assumed as part of the deferred purchase price of property or services (excluding trade accounts
payable and accrued obligations incurred in the ordinary course of business on normal trade terms
and not overdue by more than 90 days); (e) all Indebtedness of others secured by any Lien on
property owned or acquired by such person, whether or not the obligations secured thereby have been
assumed, but limited to the lower of (i) the Fair Market Value of such property and (ii) the amount
of the Indebtedness secured; (f) all Capital Lease Obligations, Purchase Money Obligations and
Off-Balance Sheet Obligations of such person; (g) all Hedging Obligations to the extent required to
be reflected on a balance sheet of such person; (h) all obligations of such person for the
reimbursement of any obligor in respect of letters of credit, letters of guaranty, bankers’
acceptances and similar credit transactions; and (i) all Contingent Obligations of such person in
respect of Indebtedness or obligations of others of the kinds referred to in clauses (a) through
(h) above. The Indebtedness of any person shall include the Indebtedness of any other entity
(including any partnership in which such person is a general partner) to the extent such person is
liable therefor as a result of such person’s ownership interest in or other relationship with such
entity, except (other than in the case of general partner liability) to the extent that terms of
such Indebtedness expressly provide that such person is not liable therefor.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

     “Indemnitee” shall have the meaning assigned to such term in Section 11.03(b).

     “Information” shall have the meaning assigned to such term in Section 11.12.

     “Insurance Policies” shall mean the insurance policies and coverages required to be maintained
by each Loan Party that is an owner or lessee of Mortgaged Property with respect to the applicable
Mortgaged Property pursuant to Section 5.04 and all renewals and extensions thereof.

     “Insurance Requirements” shall mean, collectively, all provisions of the Insurance Policies,
all requirements of the issuer of any of the Insurance Policies and all Orders, rules, regulations
and any other requirements of the National Board of Fire Underwriters (or any other body exercising
similar
functions) binding upon any Loan Party that is an owner of Mortgaged Property and applicable
to the Mortgaged Property or any use or condition thereof.

     “Intellectual Property” shall have the meaning assigned to such term in Section
3.06(a).

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     “Intercompany Note” shall mean a promissory note substantially in the form of Exhibit
D.

     “Interest Payment Date” shall mean (i) the first Business Day of each Month, and (ii) the
Maturity Date or such earlier date on which the Revolving Commitments are terminated.

     “Inventory” shall have the meaning assigned to such term in the Security Agreement.

     “Investments” shall have the meaning assigned to such term in Section 6.04.

     “ISP” shall mean, with respect to any Letter of Credit, the ‘International Standby Practices
1998’ (or ‘ISP 98’) published by the Institute of International Banking Law & Practice, Inc. (or
such later version thereof as may be in effect at the time of issuance of such Letter of Credit).

     “Issuing Bank” shall mean, as the context may require, (a) Healthcare Finance Group, LLC (or
any bank designated to act on its behalf with the consent of Borrower and the Administrative Agent,
such consent not unreasonably withheld), with respect to Letters of Credit issued by it (or such
designated bank), (b) any other Lender that issues a Letter of Credit from time to time pursuant to
Section 2.18(j) and Section 2.18(k) with respect to Letters of Credit issued by
such Lender, or (c) collectively, all of the foregoing.

     “Joinder Agreement” shall mean a joinder agreement substantially in the form of Exhibit
3 to the Security Agreement.

     “Judgment Currency” shall have the meaning assigned to such term in Section 11.18.

     “Judgment Currency Conversion Date” shall have the meaning assigned to such term in
Section 11.18.

     “Key Locations” shall mean: (i) those locations of the Companies constituting, or containing,
assets having a Fair Market Value greater than $2,500,000 on the Closing Date, and designated as
such on Schedule 3.05(b) and (ii) such locations of the Companies constituting, or
containing, assets having a Fair Market Value greater than $2,500,000 at any time subsequent to the
Closing Date, including any Mortgaged Property described in Section 5.11(d).

     “Landlord Access Agreement” shall mean a Landlord Access Agreement, substantially in the form
of Exhibit F, or such other form as may reasonably be acceptable to the Administrative
Agent.

     “Last Service Date” shall mean, with respect to any Receivable that is not a Rebate
Receivable, the earlier of (i) the date on which the applicable Loan Party has received the data
required to bill such Receivable and (ii) the last day for submission of the related claim under
any related contracts.

     “LC Commitment” shall mean the commitment of the Administrative Agent to issue (or to arrange
for the issuance of by a Lender designated by the Administrative Agent) Letters of Credit
pursuant to Section 2.18. The amount of the LC Commitment shall be $5,000,000, but in
no event shall the LC Commitment exceed the Revolving Commitment.

     “LC Disbursement” shall mean a payment or disbursement made by the Issuing Bank pursuant to a
Letter of Credit.

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     “LC Exposure” shall mean at any time the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate principal amount of all
Reimbursement Obligations outstanding at such time. The LC Exposure of any Revolving Lender at any
time shall mean its Pro Rata Percentage of the aggregate LC Exposure at such time. For all
purposes of this Agreement and the other Loan Documents, if, on any date of determination, a Letter
of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP (or any other equivalent applicable rule with respect to force
majeure events), such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn thereunder.

     “LC Participation Fee” shall have the meaning assigned to such term in Section
2.05(d).

     “LC Request” shall mean a request by Borrower in accordance with the terms of Section
2.18(b) and substantially in the form of Exhibit G, or such other form as shall be
approved by the Issuing Bank.

     “LC Sub-Account” shall have the meaning assigned to such term in Section 9.01(c).

     “Leases” shall mean any and all leases, subleases, tenancies, options, concession agreements,
rental agreements, occupancy agreements, franchise agreements, access agreements and any other
agreements (including all amendments, extensions, replacements, renewals, modifications and/or
guarantees thereof), whether or not of record and whether now in existence or hereafter entered
into, affecting the use or occupancy of all or any portion of any Real Property.

     “Legal Requirements” shall mean, as to any person, the Organizational Documents of such
person, and any treaty, law (including the common law), statute, ordinance, code, rule, regulation,
policies and procedures, Order or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such person or any of its property or to
which such person or any of its property is subject.

     “Lenders” shall mean (a) the financial institutions and other persons party hereto as
“Lenders” on the Closing Date, and (b) each financial institutions or other person that becomes a
party hereto pursuant to an Assignment and Acceptance, other than, in each case, any such financial
institution or person that has ceased to be a party hereto pursuant to an Assignment and
Acceptance. Unless the context clearly indicates otherwise, the term “Lenders” shall include the
Swingline Lender and each Issuing Bank.

     “Letter of Credit” shall mean any Standby or Commercial Letter of Credit, in each case, issued
or to be issued by an Issuing Bank for the account of Borrower or one of its Subsidiaries pursuant
to Section 2.18.

     “Letter of Credit Expiration Date” shall mean the date which is three Business Days prior to
the Scheduled Maturity Date.

     “LIBOR Rate” shall mean, as for any Month, the rate per annum equal to the arithmetic mean
(rounded to the nearest 1/100th of 1%) of the offered rates for deposits in Dollars with a term of
three Months that appears on Reuters Screen LIBOR01 (or such other page as may replace such page on
such service for the purpose of displaying the rates at which Dollar deposits are offered by
leading banks in the London interbank deposit market as designated by the Administrative Agent from
time to time) at approximately 11:00 a.m. on the Determination Date for such Month; provided,
however, that (i) if no comparable term is available, the LIBOR Rate shall be determined using the
weighted average of the

24

 

offered rates for the two terms most nearly corresponding to such term, and
(ii) if Reuters Screen LIBOR01 shall at any time no longer exist, “LIBOR Rate” shall mean the rate
per annum equal to the rate at which the Administrative Agent is offered deposits in Dollars at
approximately 11:00 a.m., London, England time, on the Determination Date in the London interbank
market for delivery on the first day of such Month for a period of 90 days; provided that during
any Eurodollar Unavailability Period, the “LIBOR Rate” shall be deemed to equal the Alternative
Base Rate. “Reuters Screen LIBOR01” shall mean the display designated on the Reuters 3000 Xtra
Page (or such other page as may replace such page on such service for the purpose of displaying the
rates at which Dollar deposits are offered by leading banks in the London interbank deposit
market).

     “Lien” shall mean, with respect to any property, (a) any mortgage, deed of trust, lien,
pledge, encumbrance, claim, charge, assignment, hypothecation, security interest or encumbrance of
any kind or any filing of any financing statement under the UCC or any other similar notice of Lien
under any similar notice or recording statute of any Governmental Authority, including any
easement, right-of-way or other encumbrance on title to Real Property, in each of the foregoing
cases whether voluntary or imposed by law, and any agreement to give any of the foregoing, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such property, and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.

     “Loan Documents” shall mean this Agreement, the Letters of Credit, the Notes (if any), the
Security Documents, the Restatement Documents, each Joinder Agreement, each Hedging Obligation
relating to the Loans entered into with any counterparty that was a Lender or an Affiliate of a
Lender at the time such Hedging Obligation was entered into and, solely for purposes of Section
8.01(e), the Fee Letter. Any reference in this Agreement or any other Loan Document to a Loan
Document shall include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other modifications thereto, and shall refer to this Agreement or such
Loan Document as the same may be in effect at any and all times such reference becomes operative.

     “Loan Parties” shall mean Borrower and the Subsidiary Guarantors.

     “Loan” or “Loans” shall mean, as the context may require, a Revolving Loan, a Term Loan or a
Swingline Loan.

     “Lockbox” shall have the meaning provided in the Collateral Management Agreement.

     “Lockbox Account” shall have the meaning provided in the Collateral Management Agreement.

     “Lockbox Banks” shall have the meaning provided in the Collateral Management Agreement.

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” shall mean (a) a material adverse effect on (i) the Acquisition, any
of the other Transactions or the Restatement Transactions, or (ii) the condition (financial or
otherwise), results of operations, assets, liabilities (contingent or otherwise), material
agreements, properties, solvency, business, management or value of the Companies, taken as a whole,
or the Loan Parties, taken as a whole, (b) a material impairment of the ability of the Loan
Parties, taken as a whole, to fully and timely perform any of their obligations under any Loan
Document, (c) a material impairment of the

25

 

rights of or benefits or remedies available to the
Lenders, the Issuing Bank or any Agent under any Loan Document, or (d) a material adverse effect on
the Collateral or the Liens in favor of the Collateral Agent (for its benefit and for the benefit
of the other Secured Parties) on the Collateral or the validity, enforceability, perfection or
priority of such Liens. Without limiting the foregoing (A) the (i) loss of a previously held
Health Care Permit material to the operation of the Companies’ business as a result of action taken
by any Governmental Authority to revoke, withdraw or suspend such Health Care Permit, or (ii)
exclusion from continuing participation in any Program of which any Company is a participant which
is material to the operation of the Companies’ business as a result of action taken by any
Governmental Authority to revoke, withdraw or suspend participation in such Program, shall be
considered a Material Adverse Effect, and (B) the taking by Borrower of Consolidated Permitted
Restructuring Costs and Consolidated Permitted Severance Costs in and of itself shall not be
considered a Material Adverse Effect.

     “Material Agreement” shall mean any agreement, contract or instrument to which any Company is
a party or by which any Company or any of its properties is bound (excluding this Agreement or any
other Loan Document) (i) pursuant to which any Company is required to make payments or other
consideration, or will receive payments or other consideration, in excess of $1,000,000 in any
fiscal year, (ii) governing, creating, evidencing or relating to Indebtedness of any Company in
excess of $1,000,000, or (iii) the termination or suspension of which, without its prompt
replacement, or the failure of any party thereto to perform its material obligations thereunder,
without prompt cure, in each case, could reasonably be expected to have a Material Adverse Effect.

     “Maturity Date” shall mean the earlier to occur of (i) the Scheduled Maturity Date, and (ii)
the occurrence of an Event of Default (unless such event is waived in writing by the Required
Lenders or 100% of the Revolving Lenders, as applicable).

     “Maximum Rate” shall have the meaning assigned to such term in Section 11.13.

     “Medicaid” shall mean collectively, the healthcare assistance program established by Title XIX
of the Social Security Act (42 U.S.C. Sections 1396 et seq.) and any statutes succeeding thereto,
and all Legal Requirements, rules, regulations, manuals, policies, procedures, orders, guidelines
or requirements pertaining to such program including (a) all federal statutes (whether set forth in
Title XIX of the Social Security Act or elsewhere) affecting such program, (b) all state statutes,
regulations and plans for medical assistance enacted in connection with such program and federal
rules and regulations promulgated in connection with such program, and (c) all applicable
provisions of all rules, regulations, manuals, policies, procedures, orders and administrative or
reimbursement guidelines and requirements of all Governmental Authorities promulgated in connection
with such program (whether or not having the force of law).

     “Medicaid Provider Agreement” shall mean an agreement, contract or instrument entered into
between a health care facility, home health agency, hospice, rehabilitation facility or clinic (or
equivalent), pharmacy, clinical laboratory, durable medical equipment supplier, orthotics and/or
prosthetics supplier, respiratory therapy provider, wholesaler, physician, practitioner or
other health care provider or supplier and CMS or any federal or state agency or other entity
administering Medicaid in such state, or any other grant of authority by CMS or any federal or
state agency or other entity administering Medicaid in such state, under which such health care
facility, home health agency, hospice, rehabilitation facility or clinic (or equivalent), pharmacy,
clinical laboratory, durable medical equipment supplier, orthotics and/or prosthetics supplier,
respiratory therapy provider, wholesaler,

26

 

physician, practitioner or other health care provider or
supplier is authorized to provide medical goods (including prescriptions) and services to Medicaid
recipients and to be reimbursed by Medicaid for such goods and services.

     “Medicare” shall mean, collectively, the health insurance program for the aged and disabled
established by Title XVIII of the Social Security Act (42 U.S.C. Sections 1395 et seq.) and any
statutes succeeding thereto, and all Legal Requirements, rules, regulations, manuals, policies,
procedures, orders or guidelines pertaining to such program including (a) all federal statutes
(whether set forth in Title XVIII of the Social Security Act or elsewhere) affecting such program,
and (b) all applicable provisions of all rules, regulations, manuals, policies, procedures, orders
and administrative or reimbursement guidelines and requirements of all Governmental Authorities
promulgated in connection with such program (whether or not having the force of law), in each case
as the same may be amended, restated, supplemented or otherwise modified from time to time.

     “Medicare Provider Agreement” shall mean an agreement, contract or instrument entered into
between a health care facility, home health agency, hospice, rehabilitation facility or clinic (or
equivalent), pharmacy, clinical laboratory, durable medical equipment supplier, orthotics and/or
prosthetics supplier, respiratory therapy provider, wholesaler, physician, practitioner or other
health care provider or supplier and CMS or any federal agency or other entity administering
Medicare, or any other grant of authority by CMS or any federal agency or other entity
administering Medicare, under which such health care facility, home health agency, hospice,
rehabilitation facility or clinic (or equivalent), pharmacy, clinical laboratory, durable medical
equipment supplier, orthotics and/or prosthetics supplier, respiratory therapy provider,
wholesaler, physician, practitioner or other health care provider or supplier is authorized to
provide medical goods (including prescriptions) and services to Medicare patients and to be
reimbursed by Medicare for such goods and services.

     “Merger Sub” shall have the meaning given to such term in the recitals hereto.

     “Minimum Revolving Balance” shall mean $30,000,000.

     “Misdirected Payment” shall mean any form of payment in respect of a Receivable made by an
Obligor in a manner other than as provided in the Notice to Obligors sent to such Obligor.

     “Month” shall mean a calendar month.

     “Mortgage” shall mean an agreement, including a mortgage, deed of trust or any other document,
creating and evidencing a first priority Lien (subject to Permitted Liens) in favor of the
Collateral Agent on Mortgaged Property in a form reasonably satisfactory to the Collateral Agent
(including with respect to requirements for title, flood and other insurance and surveys), with
such schedules and including such provisions as shall be necessary to conform such document to
applicable local or foreign law or as shall be customary under applicable local or foreign Legal
Requirements.

     “Mortgaged Property” shall mean each Real Property, if any, which shall be subject to a
Mortgage delivered after the Closing Date pursuant to Section 5.11(d).

     “Multiemployer Plan” shall mean a multiemployer plan within the meaning of Section 4001(a)(3)
or Section 3(37) of ERISA (a) to which any Company or any ERISA Affiliate is then making or
accruing an obligation to make contributions, (b) to which any Company or any ERISA Affiliate

27

 

has
within the preceding six plan years made contributions, or (c) with respect to which any Company
could incur liability.

     “Net Cash Proceeds” shall mean:

     (a) with respect to any Asset Sale (other than any issuance or sale of Equity
Interests), the proceeds thereof in the form of cash, cash equivalents and marketable
securities (including any such proceeds received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment receivable, or by
the sale, transfer or other disposition of any non-cash consideration received in connection
therewith or otherwise, but only as and when received) received by any Company (including
cash proceeds subsequently received (as and when received by any Company) in respect of
non-cash consideration initially received) net of (i) reasonable and customary selling
expenses (including reasonable brokers’ fees or commissions, legal, accounting and other
professional and transactional fees, transfer and similar taxes and Borrower’s good faith
estimate of income taxes paid or payable in connection with such sale (after taking into
account any available tax credits or deductions and any tax sharing arrangements)), (ii)
amounts provided as a reserve, in accordance with GAAP, against any liabilities under any
indemnification obligations associated with such Asset Sale (provided that, to the extent
and at the time any such amounts are released from such reserve, such amounts shall
constitute Net Cash Proceeds), (iii) the principal amount, premium or penalty, if any,
interest and other amounts on any Indebtedness that is secured by a Lien on the properties
sold in such Asset Sale (so long as such Lien was permitted to encumber such properties
under the Loan Documents at the time of such sale) and which is repaid with such proceeds
(other than any such Indebtedness assumed by the purchaser of such properties) and (iv) any
cash distributions or other payments required to be made under, and in accordance with, the
Organizational Documents of an applicable Subsidiary or joint venture to minority interest
equity holders in such Subsidiary or joint venture, as the case may be, as a result of such
Asset Sale, provided, that such cash distributions or other payments were not required to be
made pursuant to any such Organizational Document in anticipation of any such sale and such
Organizational Documents were not amended, modified or supplemented, directly or indirectly,
with respect to any such payment in anticipation of any such sale;

     (b) with respect to any Debt Issuance, any Equity Issuance or any other issuance or
sale of Equity Interests by Borrower or any of its Subsidiaries, the cash proceeds thereof,
net of reasonable and customary fees, commissions, costs and other expenses incurred in
connection therewith; and

     (c) with respect to any Casualty Event, the cash insurance proceeds, condemnation
awards and other compensation received in respect thereof, net of all reasonable costs and
expenses incurred in connection with the collection of such proceeds, awards or other
compensation in respect of such Casualty Event.

     “Net Value Factor” shall mean, initially, the percentages set forth on Annex III attached
hereto, as such percentages may be reasonably adjusted upwards or downwards by the Collateral
Manager based on objective historical performance and actual collection history.

     “Non-Recourse Debt” shall mean Indebtedness: (i) as to which neither Borrower nor any of its
Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or
instrument

28

 

that would constitute Indebtedness), (b) is directly or indirectly liable (whether such
liability is actual or contingent) as a guarantor, surety, debtor, obligor or otherwise, or (c)
constitutes the lender or other creditor; (ii) no default or event of default with respect to which
would permit (whether upon notice, lapse of time, satisfaction of any other condition or
otherwise), any holder of any other Indebtedness of Borrower or any of its Subsidiaries to declare
a default or event of default on such other Indebtedness or cause the payment of any such
Indebtedness to be accelerated or payable prior to its stated final maturity.

     “Non-Utilization
Fee” shall have the meaning assigned to such term in Section 2.05(a).

     “Notes” shall mean any notes evidencing the Revolving Loans or Swingline Loans issued pursuant
to Section 2.04(e) of this Agreement, if any, substantially in the form of Exhibit
H-1 or H-2, respectively.

     “Notice to Obligors” shall have the meaning provided in the Collateral Management Agreement.

     “Obligations” shall mean (a) all obligations of Borrower and the other Loan Parties from time
to time arising under or in respect of the due and punctual payment of (i) the principal of and
premium, if any, and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (ii) each payment required to be made by Borrower and
the other Loan Parties under this Agreement in respect of any Letter of Credit, when and as due,
including payments in respect of Reimbursement Obligations, interest thereon and obligations to
provide cash collateral and (iii) all other monetary obligations, including fees, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such proceeding), of
Borrower and the other Loan Parties under this Agreement and the other Loan Documents, (b) the due
and punctual performance of all covenants, agreements, obligations and liabilities of Borrower and
the other Loan Parties under or pursuant to this Agreement and the other Loan Documents, (c) the
due and punctual payment and performance of all obligations of Borrower and the other Loan Parties
under each Hedging Agreement relating to the Loans entered into with any counterparty that was a
Lender or an Affiliate of a Lender at the time such Hedging Agreement was entered into and (d) the
due and punctual payment and performance of all obligations in respect of overdrafts and related
liabilities owed to any Lender, any Affiliate of a Lender, the Administrative Agent or the
Collateral Agent arising from treasury, depositary and cash management services or in connection
with any automated clearinghouse transfer of funds.

     “Obligor” shall mean each person who is responsible for the payment of all or any portion of a
Receivable.

     “OFAC” shall have the meaning assigned to such term in Section 3.23.

     “Off-Balance Sheet Obligations” of a person shall mean, without duplication, (a) any
repurchase obligation or liability of such person with respect to accounts or notes receivable sold
by such person, (b) any Synthetic Lease Obligations of such person, or (c) any indebtedness,
liability or obligation arising with respect to any other transaction which is the functional
equivalent of or takes the place of borrowing but which does not constitute a liability on the
balance sheets of such person (other than operating leases).

29

 

     “Officers’ Certificate” shall mean a certificate executed by (i) any one of the Responsible
Officers, and (ii) any one of the Financial Officers, each in his or her official (and not
individual) capacity.

     “OLV” shall mean the “net orderly liquidation value” determined by the Collateral Manager
based upon the most recent Approved Valuation, as such valuation may be subsequently adjusted by
the Collateral Manager based on reasonably objective historical performance and actual liquidation
value with respect to the Loan Parties’ Inventory, and based upon the most recent Borrowing Base
Certificate delivered to the Collateral Manager by Borrower pursuant to Section
5.15(g)(ii).

     “Order” shall mean any judgment, decree, order, consent order, consent decree, writ or
injunction.

     “Organizational Documents” shall mean, with respect to any person, (i) in the case of any
corporation, the certificate of incorporation and by-laws (or similar documents) of such person,
(ii) in the case of any limited liability company, the certificate of formation and operating
agreement (or similar documents) of such person, (iii) in the case of any limited partnership, the
certificate of formation and limited partnership agreement (or similar documents) of such person,
(iv) in the case of any general partnership, the partnership agreement (or similar document) of
such person, (v) in any other case, the functional equivalent of the foregoing, and (vi) any
shareholder, voting trust or similar agreement between or among any holders of Equity Interests of
such person.

     “Other List” shall have the meaning assigned to such term in Section 6.20.

     “Other Taxes” shall mean any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges (including fees and expenses to the extent incurred with respect
to any such taxes or charges) or similar levies (including interest, fines, penalties and additions
with respect to any of the foregoing) arising from any payment made or required to be made under
any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to,
any Loan Document.

     “Participant”
shall have the meaning assigned to such term in Section 11.04(e).

     “Patriot Act” shall have the meaning assigned to such term in Section 3.23.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

     “Pension Plan” shall mean any Employee Benefit Plan (other than a Multiemployer Plan) subject
to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA which is
maintained or contributed to by any Company or any of their respective ERISA Affiliates or with
respect to which any Company could incur liability (including under Section 4069 of ERISA) for
which the Company has not received a binding, contractual right of indemnification unlimited in
time or amount
and in respect of which the indemnitor has acknowledged in writing to the Company its
unconditional obligation to so indemnify.

     “Perfection Certificate” shall mean a perfection certificate in the form of Exhibit
I-1 or any other form approved by the Collateral Agent, as the same shall be supplemented from
time to time by a Perfection Certificate Supplement or otherwise.

30

 

     “Perfection Certificate Supplement” shall mean a perfection certificate supplement in the form
of Exhibit I-2 or any other form approved by the Collateral Agent.

     “Permits” shall mean, collectively, all licenses, leases, powers, Permits, franchises,
certificates, authorizations, approvals, consents, variances, exemptions, certificates of need,
certifications, Orders and other rights.

     “Permitted Acquisition” shall mean any transaction or series of related transactions for the
direct or indirect (a) acquisition of all or substantially all of the property of any person, or
all or substantially all of any business or division of any person, (b) acquisition of in excess of
50% of the Equity Interests of any person, and otherwise causing such person to become a Subsidiary
of such person, or (c) merger or consolidation or any other combination with any person, if each of
the following conditions is met:

     (i) no Default then exists or would result therefrom;

     (ii) with respect to any transaction involving Acquisition Consideration of $5,000,000
or more, Borrower shall certify to Administrative Agent prior to the consummation of such
transaction that it is in compliance with the Pro Forma Condition, and with respect to any
transaction involving Acquisition Consideration of $10,000,000 or more, Borrower shall have
received the prior written consent of the Required Lenders;

     (iii) after giving effect to such transaction on a Pro Forma Basis, the aggregate
amount of (A) all Unrestricted Domestic Cash and Cash Equivalents and (B) the undrawn and
available portion of the Revolving Commitments shall be at least $20,000,000;

     (iv) no Company shall, in connection with any such transaction, assume or remain liable
with respect to any Indebtedness or other liability (including any material tax or ERISA
liability) of the related seller or the business, person or properties acquired, except (A)
Indebtedness to the extent permitted to be incurred under Section 6.01 and (B)
obligations not constituting Indebtedness incurred in the ordinary course of business and
necessary or desirable to the continued operation of the underlying properties, and any
other such liabilities or obligations not permitted to be assumed or otherwise supported by
any Company hereunder shall be paid in full or released as to the business, persons or
properties being so acquired on or before the consummation of such acquisition;

     (v) the person or business to be acquired shall be, or shall be engaged in, a business
of the type that Borrower and its Subsidiaries are then permitted to be engaged in under
Section 6.15 and the property acquired in connection with any such transaction shall
be made subject to the Lien of the Security Documents in accordance with Section
5.11 and shall be free and clear of any Liens, other than Permitted Liens;

     (vi) if the person to be acquired is a public company, the Board of Directors of such
person shall not have publicly indicated its opposition to the consummation of such
acquisition or, if such Board of Directors has indicated its opposition publicly, such
opposition has been publicly withdrawn;

     (vii) all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all Legal Requirements applicable thereto;

31

 

     (viii) with respect to any transaction involving Acquisition Consideration of
$5,000,000 or more, Borrower shall have provided the Administrative Agent and the Lenders
with (A) historical financial statements for the last three fiscal years (or the applicable
lesser number thereof if the person or business to be acquired has existed for a lesser
period) of the person or business to be acquired (audited if available without undue cost or
delay) and unaudited financial statements thereof for the most recent interim period that is
available, (B) monthly projections for the following year and quarterly projections for the
two years thereafter (or, if sooner, through the Scheduled Maturity Date), in each case, in
detail comparable to the financial statements delivered pursuant to Section 5.01(c)
or 5.01(b), respectively, pertaining to the person or business to be acquired and
updated projections for Borrower after giving effect to such transaction, (C) a reasonably
detailed description of all material information relating thereto and copies of all material
documentation pertaining to such transaction, and (D) all such other information and data
relating to such transaction or the person or business to be acquired as may be reasonably
requested by the Administrative Agent or any Lender, to the extent made available to or
otherwise obtainable by Borrower or such Subsidiary;

     (ix) such transaction could not reasonably be expected to result in a Material Adverse
Effect;

     (x) at least 5 Business Days prior to the proposed date of consummation of the
transaction, Borrower shall have delivered to the Administrative Agent and the Lenders an
Officers’ Certificate certifying that (A) such transaction complies with this definition
(which shall have attached thereto reasonably detailed backup data and calculations showing
such compliance), and (B) no Default or Event of Default exists or would result therefrom;

     (xi) the aggregate Acquisition Consideration (x) for all Permitted Acquisitions
consummated during the fiscal year 2011, shall not exceed $20,000,000, (y) for all Permitted
Acquisitions consummated in any subsequent fiscal year, shall not exceed $35,000,000, and
(z) for all Permitted Acquisitions after the first anniversary of the Restatement Date shall
not exceed $120,000,000; provided that no Equity Interests constituting all or a portion of
such Acquisition Consideration shall require any payments or other distributions of cash or
property in respect thereof, or any purchases, redemptions or other acquisitions thereof for
cash or property, in each case prior to the 91st day following payment in full and
performance of the Obligations; and

     (xii) (a) in the case of an acquisition of all or substantially all of the property of
any person, the person making such acquisition is, or immediately upon consummation of the
Permitted Acquisition becomes, Borrower or a Domestic Subsidiary and a Guarantor, (b) in the
case of an acquisition of in excess of 50% of the Equity Interests of any person, both the
person
making such acquisition and the person so acquired is, or immediately upon consummation
of the Permitted Acquisition becomes, Borrower or a Domestic Subsidiary and a Guarantor, and
(c) in the case of a merger or consolidation or any other combination with any person, the
person surviving such merger, consolidation or other combination is, or immediately upon
consummation of the Permitted Acquisition becomes, Borrower or a Domestic Subsidiary and a
Guarantor.

32

 

     “Permitted Discretion” shall mean the reasonable exercise of the Collateral Manager’s good
faith judgment in consideration of any factor which is reasonably likely to (i) materially
adversely affect the value of any Collateral, the enforceability or priority of the Liens thereon
or the amount that the Administrative Agent and the Lenders would be likely to receive (after
giving consideration to delays in payment and costs of enforcement) in the liquidation thereof,
(ii) suggest that any collateral report or financial information delivered to the Administrative
Agent, the Collateral Agent, the Collateral Manager or the Lenders by any person on behalf of
Borrower or any Subsidiary is incomplete, inaccurate or misleading in any material respect, or
(iii) materially increase the likelihood that the Secured Parties would not receive payment in full
in cash for all of the Obligations. In exercising such judgment, the Collateral Manager may
consider such factors already included in or tested by the definition of Eligible Receivables or
Eligible Inventory, as well as any of the following: (i) the changes in collection history and
dilution, collectibility or expected collection amounts with respect to the Accounts; (ii) changes
in demand for, pricing of, or product mix of Inventory; (iii) changes in any concentration of risk
with respect to the Loan Parties’ Accounts or Inventory; and (iv) any other factors that change the
credit risk of lending to Borrower or any Loan Party on the security of Borrower’s or any Loan
Party’s Accounts or Inventory. The burden of establishing lack of good faith under this definition
shall be on the Loan Parties.

     “Permitted Joint Venture” shall mean any person that is organized under the laws of the United
States or any subsidiary thereto or the District of Columbia and which is, directly or indirectly,
through its subsidiaries or otherwise, engaged in any business that is engaged in by Borrower and
its Subsidiaries on the Closing Date (or which is ancillary thereto, reasonably related thereto or
are reasonable extensions thereof or complementary thereto), and the Equity Interests of which (i)
are owned by Borrower or a Subsidiary and one or more persons other than Borrower or any Affiliate
of Borrower or (ii) is acquired by Borrower or a Subsidiary, so long as Borrower and its
Subsidiaries shall be in compliance with the Pro Forma Condition immediately after giving effect to
such acquisition.

     “Permitted Liens” shall have the meaning assigned to such term in Section 6.02.

     “person” shall mean any natural person, corporation, business trust, joint venture,
association, company, limited liability company, partnership or government, any agency or political
subdivision thereof, or any other entity, in any case, whether acting in a personal, fiduciary or
other capacity.

     “Platform” shall have the meaning assigned to such term in Section 11.01(d).

     “Pledgor” shall mean each Subsidiary listed on Schedule 1.01(d), and each other
Subsidiary of any Loan Party that is or becomes a party to this Agreement (in its capacity as a
Subsidiary Guarantor) and the Security Documents pursuant to Section 5.11.

     “Pre-Restatement Lien” shall have the meaning assigned to such term in Section
6.02(c).

     “Preferred Stock” shall mean, with respect to any person, any and all preferred or preference
Equity Interests (however designated) of such person whether now outstanding or issued after the
Closing Date.

     “Preferred Stock Issuance” shall mean the issuance or sale by any Company of any Preferred
Stock after the Closing Date.

     “Premises” shall have the meaning assigned thereto in the applicable Mortgage.

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     “Pro Forma Basis” shall mean, with respect to compliance with any test or covenant hereunder,
compliance with such covenant or test after giving effect, as applicable, to (a) (i) the
Acquisition, (ii) any proposed Permitted Acquisition, or (iii) any Asset Sale as if the Acquisition
or such Permitted Acquisition or Asset Sale, and all other Permitted Acquisitions or Asset Sales
consummated during the period, and any Indebtedness or other liabilities incurred in connection
with such Acquisition or any such Permitted Acquisitions or Asset Sales had been consummated and
incurred at the beginning of such period, and (b) any cost savings (such as through consolidations
or workforce reductions) reasonably satisfactory to the Administrative Agent and reasonably
expected by Borrower to be realized upon or arise during the period as a result of such acquisition
as if such cost savings had been realized at the beginning of such period. For purposes of this
definition, if any Indebtedness to be so incurred bears interest at a floating rate and is being
given pro forma effect, the interest on such Indebtedness will be calculated as if the rate in
effect on the date of incurrence had been the applicable rate for the entire period (taking into
account any applicable interest rate Hedging Agreements).

     “Pro Forma Condition” shall mean, with respect to any proposed Permitted Acquisition, proposed
Permitted Joint Venture, proposed Investment or proposed incurrence of Indebtedness, after giving
effect to such transaction on a Pro Forma Basis, (A) Borrower shall be in compliance with all
covenants set forth in Section 6.10 as of the most recent Test Period (assuming, for
purposes of Section 6.10, that such transaction had occurred on the first day of such
relevant Test Period, and (B) with respect to any proposed Permitted Acquisition, the person or
business to be acquired shall have generated positive cash flow for the Test Period most recently
ended prior to the date of consummation of such proposed Permitted Acquisition.

     “Pro Rata Percentage” of any Revolving Lender at any time shall mean the percentage of the
total Revolving Commitments of all Revolving Lenders represented by such Lender’s Revolving
Commitment.

     “Pro Rata Share” shall have the meaning assigned to such term in Section 7.10.

     “Programs” shall have the meaning assigned to such term in Section 3.19(a).

     “Program Agreements” shall have the meaning assigned to such term in Section 3.19(a).

     “Projections” shall have the meaning assigned to such term in Section 3.04(c).

     “property” shall mean any right, title or interest in or to property or assets of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible and including Equity
Interests of any person and whether now in existence or owned or hereafter entered into or
acquired, including all Real Property, cash, securities, accounts, revenues and contract rights.

     “Purchase Money Obligation” shall mean, for any person, the obligations of such person in
respect of Indebtedness (including Capital Lease Obligations) incurred for the purpose of financing
all or any part of the purchase price of any property (including Equity Interests of any person) or
the cost of installation, construction or improvement of any property and any refinancing thereof;
provided, however, that (i) such Indebtedness is incurred within 60 days after such acquisition,
installation, construction or improvement of such property by such person and (ii) the amount of
such Indebtedness does not exceed 100% of the cost of such acquisition, installation, construction
or improvement, as the case may be.

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     “Qualified Capital Stock” of any person shall mean any Equity Interests of such person that
are not Disqualified Capital Stock.

     “Real Property” shall mean, collectively, all right, title and interest (including any
leasehold estate) in and to any and all parcels of or interests in real property owned, leased or
operated by any person, whether by lease, license or other means, together with, in each case, all
easements, hereditaments and appurtenances relating thereto, all improvements and appurtenant
fixtures and equipment, all general intangibles and contract rights and other property and rights
incidental to the ownership, lease or operation thereof.

     “Rebate Receivable” shall mean a Receivable, the Obligor of which is a manufacturer or
distributor of pharmaceutical products.

     “Receivable Information” shall mean the information listed on Exhibit II to the
Collateral Management Agreement (as such Exhibit may be modified by the Collateral Manager from
time to time, subject to Section 11.02 hereof).

     “Receivables” shall have the meaning assigned to the term “Accounts” in the Security
Agreement.

     “Refinancing” shall have the meaning assigned to such term in the recitals hereto.

     “Refinancing Documents” shall mean the documents, instruments and agreements entered into in
connection with the Refinancing.

     “Register” shall have the meaning assigned to such term in Section 11.04(c).

     “Regulation D” shall mean Regulation D of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Reimbursement Approvals” shall mean any and all certifications, provider or supplier numbers,
provider or supplier agreements (including Medicare Provider Agreements and Medicaid Provider
Agreements), participation agreements, Accreditations and/or any other agreements with or approvals
by Medicare, Medicaid, CHAMPUS, CHAMPVA, TRICARE, Veteran’s Administration and any other
Governmental Authority, or quasi-public agency, Blue Cross/Blue Shield, any and all managed care
plans and organizations, including Medicare Advantage plans, Medicare Part D prescription drug
plans, health maintenance organizations and preferred provider organizations, private commercial
insurance companies, employee assistance programs and/or any other governmental or third party
arrangements, plans or programs for payment or reimbursement in connection with health care
services, products or supplies.

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     “Reimbursement Obligations” shall mean Borrower’s obligations under Section 2.18(e) to
reimburse LC Disbursements.

     “Related Person” shall mean, with respect to any person, (a) each Affiliate of such person and
each of the officers, directors, partners, trustees, employees, affiliates, shareholders, Advisors,
agents, attorneys-in-fact and Controlling persons of each of the foregoing, and (b) if such person
is an Agent, each other person designated, nominated or otherwise mandated by or assisting such
Agent pursuant to Section 10.05 or any comparable provision of any Loan Document.

     “Release” shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating
or migrating of any Hazardous Materials in, into, onto, from or through the Environment or any Real
Property.

     “Required Lenders” shall mean, at any time, Lenders having Loans, LC Exposure and unused
Revolving Commitments representing more than 50% of the sum of all Loans outstanding, LC Exposure
and unused Revolving Commitments at such time.

     “Response” shall mean (a) “response” as such term is defined in CERCLA, 42 U.S.C. § 9601(25)
or any other applicable Environmental Law, or (b) all other actions required by any Governmental
Authority or voluntarily undertaken to (i) clean up, remove, treat, abate, monitor or in any other
way address any Hazardous Materials at, in, on, under or from any Real Property, or otherwise in
the Environment, (ii) prevent the Release or threat of Release, or minimize the further Release, of
any Hazardous Material, or (iii) perform studies and investigations in connection with, or as a
precondition to, clause (i) or (ii) above.

     “Responsible Officers” of any person shall mean each of the president, the chief operating
officer, the executive vice president and general counsel and each Financial Officer of such person
with responsibility for the administration of the obligations of such person in respect of this
Agreement and the other Loan Documents.

     “Restatement Date” shall mean, subject to the satisfaction of the conditions herein, December
28, 2010.

     “Restatement Documents” shall mean each Assignment and Acceptance Agreement, dated on or about
the Restatement Date, with each Assigning Lender, with respect to the Revolving Commitment and
Loans of such Assigning Lender outstanding immediately prior to the Restatement Date, any documents
underlying the repayment in full of each Term Loan Non-Assigning Lender with respect to
the Term Loans of such Term Loan Non-Assigning Lender outstanding immediately prior to the
Restatement Date, the amendment and restatement, dated as of the Restatement Date, of this
Agreement, the Security Agreement and the Collateral Management Agreement, and each other Security
Document or pledge agreement delivered as of the Restatement Date, and all amendments to UCC or
other financing statements or instruments of perfection required by this Agreement, the Security
Agreement, the Collateral Management Agreement, any Mortgage, any Control Agreement or any other
such Security Document or pledge agreement to be filed with respect to the security interests in
property created pursuant to the Security Agreement, the Collateral Management Agreement, any
Mortgage, any Control Agreement and any other document or instrument utilized to pledge any
property as Collateral for the Obligations as of the Restatement Date.

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     “Restatement Transactions” shall mean, collectively, the transactions to occur pursuant to, or
contemplated by, this Agreement, the Restatement Documents, including (a) the assignment and
assumption of the Loans of the Assigning Lenders immediately prior to the Restatement Date, (b) the
repayment in full of all Term Loans of the Term Loan Non-Assigning Lenders, (c) the repayment in
full of the Term Loans of HF-4, (d) the execution, delivery and performance of this Agreement as so
amended and restated and the other Loan Documents, as they may be amended and restated as of the
Restatement Date, and the initial Credit Extensions hereunder on the Restatement Date, and (e) the
payment of all fees, costs and expenses to be paid on or prior to the Restatement Date owing in
connection with the foregoing.

     “Revolving Availability Period” shall mean the period from and including the Closing Date to
but excluding the earliest of (i) the Business Day preceding the Scheduled Maturity Date, (ii) the
Maturity Date, or (iii) any other date of termination of the Revolving Commitments.

     “Revolving Borrowing” shall mean a Borrowing comprised of Revolving Loans.

     “Revolving Commitment” shall mean, with respect to each Lender, the commitment, if any, of
such Lender to make Revolving Loans hereunder up to the amount set forth on Annex II(A) or
on Schedule 1 to the Assignment and Acceptance pursuant to which such Lender assumed its
Revolving Commitment, as applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.07 and (b) reduced or increased from time to time pursuant to assignments by or
to such Lender pursuant to Section 11.04. The aggregate principal amount of the Lenders’
Revolving Commitments on the Restatement Date is $150,000,000.

     “Revolving Exposure” shall mean, with respect to any Lender at any time, the aggregate
principal amount at such time of all outstanding Revolving Loans of such Lender, plus the aggregate
amount at such time of such Lender’s LC Exposure, plus the aggregate amount at such time of such
Lender’s Swingline Exposure.

     “Revolving Lender” shall mean a Lender with a Revolving Commitment.

     “Revolving Loan” shall mean a Loan made by the Lenders to Borrower pursuant to Article II.

     “Sale and Leaseback Transaction” shall have the meaning assigned to such term in
Section 6.03.

     “Sarbanes-Oxley Act” shall mean the United States Sarbanes-Oxley Act of 2002, as amended, and
all rules and regulations promulgated thereunder.

     “Scheduled Maturity Date” shall mean the earliest to occur of (i) March 25, 2015, if the
“stated maturity” under the Senior Note Agreement is not extended from the date in effect on the
Restatement Date, and (ii) if the Senior Note Agreement is amended to extend the “stated maturity”
from the date in effect on the Restatement Date, the earlier to occur of (x) the date which is six
months prior to such new “stated maturity date” and (y) December 28, 2015.

     “SDN List” shall have the meaning assigned to such term in Section 6.20.

     “Secured Parties” shall mean, collectively, the Administrative Agent, the Collateral Agent,
each other Agent, the Lenders and each party to a Hedging Agreement relating to the Loans if at the
date of entering into such Hedging Agreement such person was an Agent, a Lender or an Affiliate of
an Agent or

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Lender and such person executes and delivers to the Administrative Agent a letter
agreement in form and substance acceptable to the Administrative Agent pursuant to which such
person (i) appoints the Administrative Agent and the Collateral Agent as its agents under the
applicable Loan Documents and (ii) agrees to be bound by the provisions of Section 11.03
and Section 11.09.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Security Agreement” shall mean that certain Amended and Restated Security Agreement, dated as
of the Closing Date and amended and restated as of the Restatement Date, substantially in the form
of Exhibit J among the Loan Parties and the Collateral Agent for the benefit of the Secured
Parties, as the same may be supplemented from time to time by one or more Joinder Agreements, or
otherwise.

     “Securities Collateral” shall have the meaning assigned to such term in the Security
Agreement.

     “Security Agreement Collateral” shall mean all property pledged or granted as collateral
pursuant to the Security Agreement delivered on the Closing Date or thereafter pursuant to
Section 5.11.

     “Security Documents” shall mean the Security Agreement, the Collateral Management Agreement,
the ABDC Intercreditor Agreement (together with each other intercreditor agreement substantially in
the form of the Supplier Intercreditor Agreement), the Mortgages (if any), each Depositary
Agreement, each Control Agreement and each other security document or pledge agreement delivered in
accordance with applicable local or foreign Legal Requirements to grant a valid, enforceable,
perfected security interest (with the priority required under the Loan Documents) in any property
as collateral for the Obligations, and all UCC or other financing statements or instruments of
perfection required by this Agreement, the Security Agreement, the Collateral Management Agreement,
the ABDC Intercreditor Agreement (together with each other intercreditor agreement substantially in
the form of the Supplier Intercreditor Agreement), any Mortgage, any Control Agreement or any other
such security document or pledge agreement to be filed with respect to the security interests in
property created pursuant to the Security Agreement, the Collateral Management Agreement, the ABDC
Intercreditor Agreement (together with each other intercreditor agreement substantially in the form
of the Supplier Intercreditor Agreement), any Mortgage, any Control Agreement and any other
document or instrument utilized to pledge any property as collateral for the Obligations.

     “Senior Note Agreement” shall mean any indenture, note purchase agreement or other agreement
pursuant to which the Senior Notes are issued as in effect on the date hereof and thereafter
amended, supplemented, waived or modified from time to time subject to the requirements of this
Agreement.

     “Senior Note Documents” shall mean the Senior Notes, the Senior Note Agreement, the Senior
Note Guarantees and all other documents executed and delivered with respect to the Senior Notes or
the Senior Note Agreement.

     “Senior Note Guarantees” shall mean the guarantees of the Subsidiary Guarantors pursuant to
the Senior Note Agreement, including any guarantee of the Exchange Senior Notes issued pursuant to
the Senior Note Agreement in exchange for the outstanding Senior Notes.

     “Senior Notes” shall mean Borrower’s 10.25% Senior Notes due 2015 issued pursuant to the
Senior Note Agreement and any registered notes issued by Borrower in exchange for, and as

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contemplated by, such notes with substantially identical terms as such notes. As used in this
Agreement, the term “Senior Notes” shall include any Exchange Senior Notes issued pursuant to the
Senior Note Agreement in exchange for the outstanding Senior Notes, as contemplated by the
definition of Exchange Senior Notes.

     “SPC” shall
have the meaning assigned to such term in Section 11.04(h).

     “Standby Letter of Credit” shall mean any letter of credit (other than a Commercial Letter of
Credit) or similar instrument issued pursuant to this Agreement in the ordinary course of
Borrower’s and its Subsidiaries’ businesses.

     “Statutory Reserves” shall mean for any Borrowing, the average maximum rate at which reserves
(including any marginal, supplemental or emergency reserves) are required to be maintained during a
three Month period under Regulation D by member banks of the United States Federal Reserve System
in New York City with deposits exceeding one billion Dollars against “Eurocurrency liabilities” (as
such term is used in Regulation D). Borrowings shall be deemed to constitute Eurodollar
liabilities and to be subject to such reserve requirements without benefit of or credit for
proration, exceptions or offsets which may be available from time to time to any Lender under
Regulation D.

     “Subordinated Indebtedness” shall mean Indebtedness of any Company that is by its terms
subordinated in right of payment to all of the Obligations.

     “Subsidiary” shall mean, with respect to any person (the “parent”) at any date, (i) any person
the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such
date, (ii) any other corporation, limited liability company, association or other business entity
of which securities or other ownership interests representing more than 50% of the voting power of
all Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the
election of the Board of Directors thereof are, as of such date, owned, controlled or held by the
parent and/or one or more subsidiaries of the parent, (iii) any partnership (a) the sole general
partner or the managing general partner of which is the parent and/or one or more subsidiaries of
the parent or (b) the only general partners of which are the parent and/or one or more subsidiaries
of the parent and (iv) any other person that is otherwise Controlled by the parent and/or one or
more subsidiaries of the parent.

     “Subsidiary Guarantor” shall mean each Subsidiary of any Loan Party that is or becomes a party
to this Agreement and the Security Documents pursuant to Section 5.11, including the
Subsidiaries listed on Schedule 1.01(c).

     “Supplier Intercreditor Agreement” shall mean an intercreditor agreement, substantially in the
form of Exhibit M among the Loan Parties, the Collateral Agent for the benefit of the
Secured Parties and one or more second lien creditors to the Loan Parties (including an agent or
representative of all or any such creditors), as amended, supplemented, waiver or otherwise
modified from time to time in accordance with the terms hereof and thereof.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make loans
pursuant to Section 2.17, as the same may be reduced from time to time pursuant to
Section 2.07 or Section 2.17. The aggregate principal amount of the Swingline
Commitment shall be $10,000,000, but the Swingline Commitment shall in no event exceed the
Revolving Commitment.

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     “Swingline Exposure” shall mean at any time the aggregate principal amount at such time of all
outstanding Swingline Loans. The Swingline Exposure of any Revolving Lender at any time shall
equal its Pro Rata Percentage of the aggregate Swingline Exposure at such time.

     “Swingline Lender” shall have the meaning assigned to such term in the preamble hereto.

     “Swingline Loan” shall mean any loan made by the Swingline Lender pursuant to Section
2.17.

     “Synthetic Lease” shall mean, as to any person, any lease (including leases that may be
terminated by the lessee at any time) of any property (i) that is accounted for as an operating
lease under GAAP and (ii) in respect of which the lessee retains or obtains ownership of the
property so leased for U.S. federal income tax purposes, other than any such lease under which such
person is the lessor.

     “Synthetic Lease Obligations” shall mean, as to any person, an amount equal to the capitalized
amount of the remaining lease payments under any Synthetic Lease that would appear on a balance
sheet of such person in accordance with GAAP if such obligations were accounted for as Capital
Lease Obligations.

     “Target” shall have the meaning assigned to such term in the recitals hereto.

     “Tax Returns” shall mean all returns, statements, filings, attachments and other documents or
certifications filed or required to be filed in respect of Taxes.

     “Taxes” shall mean (i) any and all present or future taxes, duties, levies, imposts,
assessments, deductions, withholdings or other similar charges, whether computed on a separate,
consolidated, unitary, combined or other basis and any and all liabilities (including interest,
fines, penalties or additions with respect to any of the foregoing) with respect to the foregoing,
and (ii) any transferee, successor, joint and several, contractual or other liability (including
liability pursuant to Treasury Regulation § 1.1502-6 (or any similar provision of state, local or
non-U.S. law)) in respect of any item described in clause (i).

     “Term Loan Lender” shall mean a Lender with an outstanding Term Loan immediately prior to the
Restatement Date.

     “Term Loan Non-Assigning Lender” means each Term Loan Lender other than HF-4 that is not an
Assigning Lender.

     “Term Loans” shall mean the term loans made by the Lenders to Borrower pursuant to the
Existing Credit Agreement and outstanding immediately prior to the Restatement Date in the amount
set forth for each Term Loan Lender on Annex II(B) to this Agreement.

     “Test Period” shall mean, at any time, the four consecutive fiscal quarters of Borrower then
last ended (in each case taken as one accounting period) for which financial statements have been
or are required to be delivered pursuant to Section 5.01(a) or (b).

     “Third-Party Payor Contracts” shall have the meaning assigned to such term in Section
3.19(a).

     “Third-Party Payors” shall have the meaning assigned to such term in Section 3.19(a).

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     “Title Company” shall mean any title insurance company as shall be retained by Borrower and
reasonably acceptable to the Administrative Agent.

     “Title Policy” shall mean, with respect to each Mortgage, a policy of title insurance (or
marked-up title insurance commitment having the effect of a policy of title insurance) insuring the
Lien of such Mortgage as a valid first mortgage Lien on the Mortgaged Property and fixtures
described therein in the amount equal to not less than the Fair Market Value of such Mortgaged
Property and fixtures, which policy (or such marked-up commitment) shall be issued by the Title
Company, and contain such endorsements as shall be reasonably requested by the Collateral Agent and
no exceptions to title other than exceptions reasonably acceptable to the Collateral Agent.

     “Transaction Documents” shall mean the Acquisition Documents, the Refinancing Documents, the
Senior Note Documents and the Loan Documents.

     “Transactions” shall mean, collectively, the transactions to occur pursuant to, or
contemplated by, the Transaction Documents, including (a) the consummation of the Acquisition, (b)
the execution, delivery and performance of the Loan Documents and the initial Credit Extensions
hereunder, (c) the consummation of the Refinancing, (d) the execution, delivery and performance of
the Senior Note Documents and the initial borrowings thereunder, and (e) the payment of all fees,
costs and expenses to be paid on or prior to the Closing Date owing in connection with the
foregoing.

     “TRICARE/CHAMPUS” shall mean the Civilian Health and Medical Program of the Uniformed Service,
a program of medical benefits covering former and active members of the uniformed services and
certain of their dependents, financed and administered by the United States Departments of Defense,
Health and Human Services and Transportation and established pursuant to 10 USC §§ 1071-1106, and
all regulations promulgated thereunder including without limitation (a) all federal statutes
(whether set forth in 10 USC §§ 1071-1106 or elsewhere) affecting TRICARE/CHAMPUS, and (b) all
rules, regulations (including 32 CFR 199), manuals, orders and administrative, reimbursement and
other guidelines of all Governmental Authorities (including, without limitation, the Department of
Health and Human Services, the Department of Defense, the Department of Transportation, the
Assistant Secretary of Defense (Health Affairs), and the Office of TRICARE/CHAMPUS, or any person
or entity succeeding to the functions of any of the foregoing) promulgated pursuant to or in
connection with any of the foregoing (whether or not having the force of law) in each case as may
be amended, supplemented or otherwise modified from time to time.

     “UCC” shall mean the Uniform Commercial Code as in effect from time to time (except as
otherwise specified) in any applicable state or jurisdiction.

     “Unbilled Receivable” shall mean a Receivable in respect of which the goods have been shipped,
or the services rendered, and rights to payment thereon have accrued, but the invoice has not been
rendered to the applicable Obligor.

     “Unfunded Pension Liability” shall mean the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in accordance with the actuarial assumptions used for funding the Pension Plan pursuant
to Section 412 of the Code for the applicable plan year.

     “United States” and “U.S.” shall mean the United States of America.

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     “Unrestricted Domestic Cash and Cash Equivalents” shall mean domestic cash and Cash
Equivalents of Borrower and the Subsidiaries that are free and clear of all Liens, not subject to
any restrictions on the use thereof to pay Indebtedness and other obligations of any of the Loan
Parties or any of their respective Subsidiaries and subject to a Control Account in favor of the
Collateral Agent.

     “Voting Stock” shall mean, with respect to any person, any class or classes of Equity
Interests pursuant to which the holders thereof have the general voting power under ordinary
circumstances to elect at least a majority of the Board of Directors of such person.

     “Wholly Owned Subsidiary” shall mean, as to any person, (a) any corporation 100% of whose
capital stock (other than directors’ qualifying shares) is at the time owned by such person and/or
one or more Wholly Owned Subsidiaries of such person and (b) any partnership, association, joint
venture, limited liability company or other entity in which such person and/or one or more Wholly
Owned Subsidiaries of such person have a 100% equity interest at such time.

     Section 1.02 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.” The phrase “Material Adverse Effect”
shall be deemed to be followed by the phrase “, individually or in the aggregate.” The word
“asset” shall be construed to have the same meaning and effect as the word “property.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.” Unless the
context requires otherwise (a) any definition of or reference to any Loan Document, agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth in any Loan Document), (b)
any reference herein to any person shall be construed to include such person’s successors and
assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof and
(d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Exhibits and Schedules to, this Agreement, unless otherwise
indicated. This Section 1.02 shall apply, mutatis mutandis, to all Loan Documents.

     Section 1.03 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all financial statements to be delivered pursuant
to this Agreement shall be prepared in accordance with GAAP as in effect from time to time and all
terms of an accounting or financial nature shall be construed and interpreted in accordance with
GAAP, as in effect on the date hereof. If at any time any change in GAAP would affect the
computation of any financial ratio set forth in any Loan Document, and Borrower or the
Administrative Agent shall so request, the Administrative Agent and Borrower shall negotiate in
good faith to amend such ratio or requirement to preserve the original intent thereof in light of
such change in GAAP (subject to approval by the Required Lenders and Borrower); provided that,
until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein, and Borrower shall provide to the Administrative Agent and the
Lenders within five days after delivery of each certificate or financial report required hereunder
that is affected thereby a written statement of a Financial Officer of Borrower setting forth in
reasonable detail the differences (including any differences that would affect any calculations
relating to the financial covenants as set forth in Section 6.10) that would have resulted
if such financial statements had been prepared without giving effect to such change.

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     Section 1.04 Pro Forma Calculations. With respect to any period during which the Acquisition, any Permitted Acquisition or Asset Sale
occurs as permitted pursuant to the terms hereof, the financial covenants set forth in
Section 6.10 shall be calculated with respect to such period and the Acquisition, such
Permitted Acquisition or Asset Sale on a Pro Forma Basis.

     Section 1.05 Resolution of Drafting Ambiguities. Each Loan Party acknowledges and agrees that it was represented by counsel in connection with
the execution and delivery of the Loan Documents to which it is a party, that it and its counsel
reviewed and participated in the preparation and negotiation thereof and that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not
be employed in the interpretation hereof or thereof.

     Section 1.06 Rounding. Any financial ratios required to be satisfied in order for a specific action to be permitted
under this Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with a rounding-up if
there is no nearest number).

ARTICLE II

THE CREDITS

     Section 2.01 Commitments. Subject to the terms and conditions and relying upon the representations and warranties herein
set forth, each Lender agrees, severally and not jointly on and after the Restatement Date to make
Revolving Loans to Borrower, at any time and from time to time until the earlier of the Maturity
Date and the termination of the Revolving Commitment of such Lender in accordance with the terms
hereof, in an aggregate principal amount at any time outstanding that will not result in (x) such
Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment and (y) the Revolving
Exposure for
all Lenders exceeding the then applicable Borrowing Base (based on the Borrowing Base Certificate
last delivered). Subject to the terms, conditions and limitations set forth herein, Borrower may
borrow, pay or prepay and reborrow Revolving Loans.

     Section 2.02 Revolving Loans. (a) Each Revolving Loan shall be made by the Lenders ratably in accordance with their
applicable Revolving Commitments; provided that the failure of any Lender to make any Revolving
Loan shall not in itself relieve any other Lender of its obligation to lend hereunder (it being
understood, however, that no Revolving Lender shall be responsible for the failure of any other
Revolving Lender to make any Revolving Loan required to be made by such other Revolving Lender).
Except for Revolving Loans deemed made pursuant to Section 2.18(e)(ii), (x) any Borrowing
shall be in an aggregate principal amount that is (i) an integral multiple of $100,000 and not less
than $250,000 or (ii) equal to the remaining available balance of the applicable Commitments.

          (b) Each Revolving Lender may at its option make any Revolving Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Revolving Loan; provided that any exercise
of such option shall not affect the obligation of the Revolving Lender to make such Revolving Loan
and Borrower to repay such Revolving Loan in accordance with the terms of this Agreement.

          (c) Except with respect to Revolving Loans made pursuant to Section
2.18(e)(ii), each Revolving Lender shall make each Revolving Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available funds to such
account in New York City as the Administrative Agent may designate not later than 11:00 a.m., New
York City time, and the

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Administrative Agent shall promptly credit the amounts so received to an
account as directed by Borrower in the applicable Borrowing Request maintained with the
Administrative Agent or, if a Borrowing shall not occur on such date because any condition
precedent herein specified shall not have been met, return the amounts so received to the
respective Lenders.

          (d) Unless the Administrative Agent shall have received notice from a Revolving Lender prior
to the date of any Borrowing that such Revolving Lender will not make available to the
Administrative Agent such Revolving Lender’s portion of such Borrowing, the Administrative Agent
may assume that such Revolving Lender has made such portion available to the Administrative Agent
on the date of such Borrowing in accordance with paragraph (c) above, and the Administrative Agent
may (but shall not be obligated to), in reliance upon such assumption, make available to Borrower
on such date a corresponding amount. If the Administrative Agent shall have so made funds
available, then, to the extent that such Revolving Lender shall not have made such portion
available to the Administrative Agent, such Revolving Lender agrees to repay to the Administrative
Agent forthwith on demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to Borrower until the date such amount is repaid to the
Administrative Agent at the greater of the Federal Funds Effective Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules or practices on interbank
compensation. If such Revolving Lender shall repay to the Administrative Agent such corresponding
amount, such amount shall constitute such Revolving Lender’s Loan as part of such Borrowing for
purposes of this Agreement, and Borrower’s obligation to repay the Administrative Agent such
corresponding amount pursuant to this Section 2.02(d) shall cease.

     Section 2.03 Borrowing Procedure. To request a Revolving Borrowing, Borrower shall deliver, by hand delivery or facsimile
transmission (or transmit by other electronic transmission if arrangements for doing so have been
approved in writing by the Administrative Agent), a duly completed and executed Borrowing Request
to the Administrative Agent not later than 12:00 noon, New York City time, on the second Business
Day before the date of the proposed Borrowing (or such later time as may be reasonably acceptable
to the Administrative Agent, in the case of any Borrowing, or the Issuing Bank, in the case of any
issuance, amendment, extension or renewal of a Letter of Credit). Each Borrowing Request shall be
irrevocable and shall specify the following information in compliance with Section 2.02:

          (a) the aggregate amount of such Borrowing;

          (b) the date of such Borrowing, which shall be a Business Day;

          (c) the location and number of Borrower’s account to which funds are to be disbursed, which
shall comply with the requirements of Section 2.02(c); and

          (d) that the conditions set forth in Sections 4.02(b) — (d) are satisfied as of the
date of the notice.

     Section 2.04 Evidence of Debt; Repayment of Loans. (a) Borrower hereby unconditionally promises to pay to (i) the Administrative Agent for the
account of each Revolving Lender, the then unpaid principal amount of each Revolving Loan of such
Revolving Lender on the Maturity Date and (ii) the Swingline Lender, the then unpaid principal
amount of each Swingline Loan on the earlier of the Maturity Date and the first date after such
Swingline Loan is made that is the 15th or last day of a calendar month and is at least
two Business Days after such Swingline Loan is made; provided that on

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each date that a Revolving
Borrowing is made, Borrower shall repay all Swingline Loans that were outstanding on the date such
Borrowing was requested.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of Borrower to such Lender resulting from each Loan made by such Lender
from time to time, including the amounts of principal and interest payable and paid to such Lender
from time to time under this Agreement.

          (c) The Administrative Agent shall maintain accounts in which it will record (i) the amount of
each Loan made hereunder and the Class applicable thereto; (ii) the amount of any principal or
interest due and payable or to become due and payable from Borrower to each Lender hereunder; and
(iii) the amount of any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

          (d) Absent manifest error, the entries made in the accounts maintained pursuant to paragraphs
(b) and (c) above shall be prima facie evidence of the existence and amounts of the obligations
therein recorded; provided that the failure of any Lender or the Administrative Agent to maintain
such accounts or any error therein shall not in any manner affect the obligations of Borrower to
repay the Loans in accordance with their terms.

          (e) Any Lender by written notice to Borrower (with a copy to the Administrative Agent) may
request that Loans of any Class made by it be evidenced by a promissory note. In such event,
Borrower shall prepare promptly (and, in all events, within five Business Days of receipt of such
request), execute and deliver to such Lender a promissory note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its registered assigns) in the form of
Exhibit H-1, or H-2, as the case may be. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after assignment pursuant to
Section 11.04) be represented by one or more promissory notes in such form payable to the
order of the payee named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns).

     Section 2.05 Fees. Non-Utilization Fee. (a) Borrower shall pay to the Administrative Agent for the
account of each Lender a non-utilization fee (a “Non-Utilization Fee”) equal to the greater of (x)
0.50% per annum of the average daily unused amount of each Revolving Commitment of such Lender
during the period from and including the Closing Date to but excluding the date on which such
Revolving Commitment terminates. Accrued Non-Utilization Fees shall be payable in arrears (A) on
each Interest Payment Date with respect to the prior Month, and (B) on the date on which such
Commitment terminates. Non-Utilization Fees shall be computed on the basis of a year of 360 days
and shall be payable for the actual number of days elapsed (including the first day but excluding
the last day). For purposes of computing Non-Utilization Fees, a Revolving Commitment of a Lender
shall be deemed to be used to the extent of the outstanding Revolving Loans and LC Exposure of such
Lender, and the Swingline Exposure of such Lender shall be disregarded for such purpose.

          (b) Early Termination Fee. Upon the termination of this Agreement or termination or
reduction of the Revolving Commitment or any portion thereof prior to the second anniversary of the
Restatement Date, Borrower shall pay to the Administrative Agent for the account of the Revolving
Lenders an amount equal to the Early Termination Fee; provided, that no Early Termination Fee shall
be payable with respect to up to $25,000,000 of the initial voluntary partial reduction of the
Revolving Commitment by Borrower effectuated pursuant to Section 2.07(b).

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          (c) Administrative Agent Fees. Borrower agrees to pay to the Administrative Agent,
for its own account, the administrative fees set forth in the Fee Letter or such other fees payable
in the amounts and at the times separately agreed upon between Borrower and the Administrative
Agent (the “Administrative Agent Fees”).

          (d) LC and Fronting Fees. Borrower agrees to pay to (i) the Administrative Agent for
the account of each Revolving Lender a participation fee (“LC Participation Fee”) with respect to
its participations in Letters of Credit, which shall accrue at a rate per annum equal to the
Applicable Margin from time to time used to determine the interest rate on Revolving Loans pursuant
to Section 2.06 on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to Reimbursement Obligations) during the period from and including the
Restatement Date to but excluding the later of the date on which such Lender’s Revolving Commitment
terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) the Issuing
Bank a fronting fee (“Fronting Fee”), which shall accrue at the rate per annum usually and
customarily charged by the Issuing Bank to corporate account parties (or such lesser rate per annum
as the Issuing Bank may from time to time agree) on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to Reimbursement Obligations) during the period from
and including the Restatement Date to but excluding the later of the date of termination of the
Revolving Commitments and the date on which there ceases to be any LC Exposure, as well as the
Issuing Bank’s customary charges with respect to the administration, issuance, amendment,
negotiation, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Accrued LC Participation Fees and Fronting Fees shall be
payable in arrears (i) on the last Business Day of March, June, September and December of each
year, commencing on the first such date to occur after the Restatement Date, and (ii) on the date
on which the Revolving Commitments terminate. Any such fees accruing after the date on which the
Revolving Commitments terminate shall be payable on demand. Any other fees payable to the Issuing
Bank pursuant to this paragraph shall be payable within 10 days after demand therefor. All LC
Participation Fees and Fronting Fees shall be computed on the basis of a year of 360 days and shall
be payable for the actual number of days elapsed (including the first day but excluding the last
day).

          (e) Other Fees. Borrower agrees to pay the Agents, for their own account, fees
payable in the amounts and at the times separately agreed upon between Borrower and the applicable
Agents.

          (f) Payment of Fees. All Fees shall be paid on the dates due, in immediately
available funds in Dollars, to the Administrative Agent for distribution, if and as appropriate,
among the Lenders, except that Borrower shall pay the Fronting Fees directly to the Issuing Bank.
Once paid, none of the Fees shall be refundable under any circumstances.

     Section 2.06 Interest
on Loans. (a) Subject to the provisions of Section 2.06(b), each Revolving Loan and Swingline
Loan shall bear interest at a rate per annum equal to the Adjusted LIBOR Rate plus the Applicable
Margin.

          (b) Notwithstanding the foregoing, during an Event of Default, all Obligations shall, to the
extent permitted by applicable Legal Requirements, bear interest, after as well as before judgment,
at a per annum rate equal to (i) in the case of principal of or interest on any Loan, 2.0% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
2.06 or (ii) in the case of any other amount, 2.0% plus the Alternate Base Rate plus the
Applicable Margin (in either case, the “Default Rate”).

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          (c) Accrued interest on the Revolving Loan for each Month (or such other period if remaining
accrued and unpaid) shall be payable in arrears on each Interest Payment Date for such Loan on the
greater of (x) the daily outstanding balance thereof during such Month (or such other period), and
(y) the Minimum Revolving Balance; provided that (i) in calculating the greater amount between (x)
and (y) above in any one Month, Borrower shall be given credit for the daily outstanding balance of
Swingline Loans for such Month as if they were made as Revolving Loans (ii) interest accrued
pursuant to Section 2.06(b) shall be payable on demand, and (iii) in the event of any
repayment or prepayment of any Revolving Loan, accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment.

          (d) Accrued interest on the Swingline Loan shall be payable in arrears on the date of any
repayment or prepayment of any Swingline Loan.

          (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Base Rate shall be computed on the basis of a year of 365
days (or 366 days in a leap year), and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate
or Adjusted LIBOR Rate shall be determined by the Administrative Agent in accordance with the
provisions of this Agreement and such determination shall be conclusive absent manifest error.

     Section 2.07 Termination and Reduction of Commitments. (a) The Revolving Commitments, the Swingline Commitment and the LC Commitment shall
automatically terminate on the Maturity Date.

          (b) At its option, Borrower may at any time terminate, or from time to time permanently
reduce, the Revolving Commitments; provided that (i) each reduction of the Revolving Commitments
shall be in an amount that is an integral multiple of $2,500,000 and not less than $5,000,000; (ii)
unless the Revolving Commitments are being terminated in full in connection with the simultaneous
payment in full of all Obligations, the Revolving Commitments shall not be reduced to below
$30,000,000; (iii) the Revolving Commitments shall not be terminated or reduced if, after giving
effect to any concurrent prepayment of the Revolving Loans in accordance with Section 2.09,
the aggregate amount of Revolving Exposures would exceed the aggregate amount of Revolving
Commitments; and (iv) simultaneously with any termination or reduction, Borrower shall have paid to
the Administrative Agent for the benefit of the Revolving Lenders the Early Termination Fee (if
any).

          (c) Borrower shall notify the Administrative Agent in writing of any election to terminate or
reduce the Revolving Commitments under Section 2.07(b) at least three Business Days prior
to the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by Borrower pursuant to this
Section 2.07 shall be irrevocable. Any termination or reduction of the Revolving
Commitments shall be permanent. Each reduction of the Revolving Commitments shall be made ratably
among the Revolving Lenders in accordance with their respective Revolving Commitments.

     Section 2.08 [Intentionally Omitted].

     Section 2.09 Optional and Mandatory Prepayments of Loans. (a) Optional Prepayments. Borrower shall have the right at any time and from time to
time to prepay any Borrowing, in whole or in part; provided that each partial prepayment or
permanent reduction in any Commitment shall be in an amount that is an integral multiple of
$250,000 and not less than $500,000 and provided, further that

47

 

following such prepayment, the
outstanding principal balance of the Revolving Loan is not less than the Minimum Revolving Balance.

          (b) Revolving Loan Prepayments. (i) In the event of the termination of all the
Revolving Commitments, Borrower shall, on the date of such termination, repay or prepay all its
outstanding Revolving Borrowings and all outstanding Swingline Loans and either (A) replace all
outstanding Letters of Credit or (B) cash collateralize all outstanding Letters of Credit in
accordance with the procedures set forth in Section 2.18(i).

          (ii) In the event of any partial reduction of the Revolving Commitments, then (x) at or
prior to the effective date of such reduction, the Administrative Agent shall notify
Borrower and the Revolving Lenders of the sum of the Revolving Exposures after giving effect
thereto and (y) if the sum of the Revolving Exposures would exceed the aggregate amount of
Revolving Commitments after giving effect to such reduction, then Borrower shall on the date
of such reduction (and notwithstanding that such reduction may be in breach of the
requirement
to maintain a Minimum Revolving Balance), first, repay or prepay Swingline Loans,
second, repay or prepay Revolving Borrowings and third, replace outstanding Letters of
Credit or cash collateralize outstanding Letters of Credit in accordance with the procedures
set forth in Section 2.18(i), in an aggregate amount sufficient to eliminate such
excess.

          (iii) In the event that the sum of all Lenders’ Revolving Exposures exceeds the
Revolving Commitments then in effect, Borrower shall, without notice or demand, immediately
first, repay or prepay Swingline Loans, second, repay or prepay Revolving Borrowings, and
third, replace outstanding Letters of Credit or cash collateralize outstanding Letters of
Credit in accordance with the procedures set forth in Section 2.18(i), in an
aggregate amount sufficient to eliminate such excess.

          (iv) In the event that the aggregate LC Exposure exceeds the LC Commitment then in
effect, Borrower shall, without notice or demand, immediately replace outstanding Letters of
Credit or cash collateralize outstanding Letters of Credit in accordance with the procedures
set forth in Section 2.18(i), in an aggregate amount sufficient to eliminate such
excess.

          (v) In the event that the sum of all Lenders’ Revolving Exposures exceeds the Borrowing
Base then in effect (based on the Borrowing Base Certificate last delivered), Borrower
shall, without notice or demand, immediately first, repay or prepay Swingline Loans, second,
repay or prepay Revolving Borrowings, and third, replace outstanding Letters of Credit or
cash collateralize outstanding Letters of Credit in accordance with the procedures set forth
in Section 2.18(i), in an aggregate amount sufficient to eliminate such excess.

          (c) Application of Prepayments. Prior to any optional or mandatory prepayment
hereunder, Borrower shall select the Class Borrowing or Borrowings to be prepaid and shall specify
such selection in the notice of such prepayment pursuant to Section 2.09(d), subject to the
provisions of this Section 2.09(c).

          (d) Notice of Prepayment. Borrower shall notify the Administrative Agent (and, in the
case of prepayment of a Swingline Loan, the Swingline Lender) by written notice of any prepayment
hereunder (i) not later than 11:00 a.m., New York City time, on the third Business Day before the
date of prepayment, and (ii) in the case of prepayment of a Swingline Loan, not later than 11:00
a.m., New York

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City time, on the date of prepayment. Each such notice shall be irrevocable. Each
such notice shall specify the prepayment date, the principal amount of each Borrowing or portion
thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation
of the amount of such prepayment. Promptly following receipt of any such notice (other than a
notice relating solely to Swingline Loans), the Administrative Agent shall advise the Lenders of
the contents thereof. Such notice to the Lenders may be by electronic communication. Each partial
prepayment of any Borrowing shall be in an amount that would be permitted in the case of a
Borrowing of the same Class as provided in Section 2.02, except as necessary to apply fully
the required amount of a mandatory prepayment. Each prepayment of a Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing and otherwise in accordance with this
Section 2.09. Prepayments shall be accompanied by accrued interest to the extent required
by Section 2.06.

     Section 2.10 [Intentionally Omitted].

     Section 2.11 Alternate Rate of Interest. If the Administrative Agent, in good faith and in its reasonable discretion, shall determine
that for any reason in connection with any request for a Loan that (a) Dollar deposits are not
being offered to banks in the London interbank eurodollar market for the applicable amount of such
Loan, (b) adequate and reasonable means do not exist for determining the Adjusted LIBOR Rate with
respect to a proposed Loan, or (c) the Adjusted LIBOR Rate for any requested Loan or in connection
with a Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan as
a result of events occurring after the Restatement Date, the Administrative Agent will promptly so
notify Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain
Loans as to which the interest rate is determined with reference to the Adjusted LIBOR Rate shall
be suspended until the Administrative Agent revokes such notice and during such period Loans based
on the Alternate Base Rate shall be made and continued based on the interest rate determined by the
greater of clauses (a) and (b) in the definition of Alternate Base Rate. Upon receipt of such
notice, Borrower may revoke any pending request for a Borrowing of Loans (without penalty) or,
failing that, will be deemed to have converted such request into a request for a Borrowing based on
the Alternate Base Rate in the amount specified therein.

     Section 2.12 Increased Costs; Change in Legality. (a) If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against property of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBOR Rate) or the
Issuing Bank; or

          (ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition, cost or expense affecting this Agreement or Loans made by such Lender or any
Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the
cost to such Lender, the Issuing Bank or such Lender’s or the Issuing Bank’s holding company, if
any, of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of
any sum received or receivable by such Lender or the Issuing Bank hereunder (whether of principal,
interest or otherwise), as determined by such Lender or the Issuing Bank, in good faith, in its
reasonable discretion, then Borrower will pay to such Lender or the Issuing Bank, as the case may
be, such additional amount or

49

 

amounts as will compensate such Lender or the Issuing Bank, as the
case may be, for such additional costs incurred or reduction suffered provided that the foregoing
shall not apply to any such costs incurred more than 365 days prior to the date on which Borrower
receives a certificate in regard thereto, as provided in subsection (c) below; it being
understood that, to the extent duplicative of the provisions of Section 2.15, this
Section 2.12 shall not apply to Taxes. The protection of this Section 2.12 shall
be available to each Lender and the Issuing Bank regardless of any possible contention of the
invalidity or inapplicability of the Change in Law that shall have occurred or been imposed.

          (b) If any Lender or the Issuing Bank determines (in good faith in its reasonable absolute
discretion) that any Change in Law regarding Capital Requirements has or would have the effect of
reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of
such Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this
Agreement, the Commitment of such Lender or the Loans made by, or participations in Letters of
Credit or Swingline Loans held by such Lender, or the Letters of Credit issued by the Issuing Bank,
to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s
holding company with respect to capital adequacy), then from time to time Borrower will pay to such
Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company,
for any such reduction suffered; provided that the foregoing shall not apply to any such costs
incurred more than 365 days prior to the date on which Borrower receives a certificate in regard
thereto, as provided in subsection (c) below.

          (c) A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the
amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this Section 2.12 shall be
delivered to Borrower (with a copy to the Administrative Agent) and shall be conclusive and binding
absent manifest error. Borrower shall pay such Lender or the Issuing Bank, as the case may be, the
amount shown as due on any such certificate within 10 days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.12 shall not constitute a waiver of such Lender’s or the Issuing
Bank’s right to demand such compensation, except as otherwise expressly provided in subsection (a)
and (b) above.

          (e) If any Lender determines in good faith in its reasonable discretion that any Change in Law
has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any
Lender to make, maintain or fund Loans based on the Adjusted LIBOR Rate, or to determine or charge
interest rates based upon the Adjusted LIBOR Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or to take deposits of,
Dollars in the London interbank market, then, on notice thereof by such Lender to Borrower through
the Administrative Agent, any obligation of such Lender to make or continue Loans based on the
Adjusted LIBOR Rate or, if such notice relates to the unlawfulness or asserted unlawfulness of
charging interest based on the Adjusted LIBOR Rate, to make Loans as to which the interest rate is
determined with reference to the Adjusted LIBOR Rate shall be suspended until such Lender notifies
the Administrative Agent and Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, Borrower shall, within one Business Day after demand
from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all
Loans based on the Adjusted

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LIBOR Rate of such Lender to Loans based on the Alternate Base Rate, if
such Lender may lawfully continue to maintain such Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such Loans as to which the interest rate is determined
with reference to the Adjusted LIBOR Rate. Notwithstanding the foregoing and despite the
illegality for such a Lender to make, maintain or fund Loans as to which the interest rate is
determined with reference to the Adjusted LIBOR Rate, that Lender shall remain committed to make
Loans as to which the rate of interest is not determined with reference to the Adjusted LIBOR Rate
and shall be entitled to recover interest at such Alternate Base Rate. Upon any such prepayment or
conversion, Borrower shall also pay accrued interest on the amount so prepaid or converted.

     Section 2.13 [Intentionally Omitted].

     Section 2.14 Payments Generally; Pro Rata Treatment; Sharing of Setoffs. (a) Borrower shall make each payment required to be made by it hereunder or under any other
Loan Document (whether of principal, interest, fees or Reimbursement Obligations, or of amounts
payable hereunder) on or before the time expressly required hereunder or under such other Loan
Document for such payment (or, if no such time is expressly required, prior to 2:00 p.m., New York
City time), on the date when due, in immediately available funds, without setoff, deduction or
counterclaim. Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 199 Water Street, 31st Floor, New York, NY 10038 Attn: BioScrip Account
Manager, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.12, 2.15 and
11.03 shall be made directly to the persons entitled thereto and payments pursuant to other
Loan Documents shall be made to the persons specified therein. The Administrative Agent shall
distribute any such payments received by it for the account of any other person to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan Document shall be due
on a day that is not a Business Day, unless specified otherwise, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments under each Loan
Document shall be made in Dollars.

          (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, Reimbursement Obligations, interest and fees then due
hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and Reimbursement
Obligations then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and Reimbursement Obligations then due to such parties.

          (c) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise
(including by exercise of its rights under the Security Agreement), obtain payment in respect of
any principal of or interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Loans and participations in LC Disbursements and Swingline Loans and
accrued interest thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of

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all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if
any such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Revolving Loans or participations in LC Disbursements or Swingline
Loans to any assignee or participant, other than to any
Company or any Affiliates (as to which the provisions of this paragraph shall apply). Each
Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable Legal Requirements, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against each Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation. If under applicable bankruptcy, insolvency or any similar law any
Secured Party receives a secured claim in lieu of a setoff or counterclaim to which this
Section 2.14(c) applies, such Secured Party shall to the extent practicable, exercise its
rights in respect of such secured claim in a manner consistent with the rights to which the Secured
Party is entitled under this Section 2.14(c) to share in the benefits of the recovery of
such secured claim.

          (d) Unless the Administrative Agent shall have received notice from Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that Borrower will not make such payment, the Administrative Agent may
assume that Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders the amount due. In such event, if Borrower has not
in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed
to such Lender or the Issuing Bank with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to the Administrative Agent,
at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules or practices on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.02(c), 2.14(d), 2.17(d), 2.18(d), 2.18(e) or
11.03(e), then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for
the account of such Lender to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

     Section 2.15 Taxes. (a) Any and all payments by or on account of any obligation of Borrower hereunder or under any
other Loan Document shall be made without setoff, counterclaim or other defense and free and clear
of and without deduction or withholding for any and all Indemnified Taxes or Other Taxes; provided
that if Borrower shall be required by applicable Legal Requirements to deduct any Indemnified Taxes
or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions or withholdings applicable to additional
sums payable under this Section 2.15) the Administrative Agent, any Lender or the Issuing
Bank, as the case may be, receives an amount equal to the sum it would have received had no such
deductions or withholdings been made, (ii) Borrower shall make such deductions or withholdings and

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(iii) Borrower shall timely pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable Legal Requirements.

          (b) In addition, Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable Legal Requirements.

          (c) Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 10 Business Days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the
case may be, on or with respect to any payment by or on account of any obligation of Borrower
hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.15) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to
Borrower by a Lender or the Issuing Bank (in each case, with a copy delivered concurrently to the
Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or
the Issuing Bank, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes and in any
event within 30 days following any such payment being due, by Borrower to a Governmental Authority,
Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. If
Borrower fails to pay any Indemnified Taxes or Other Taxes when due to the appropriate Governmental
Authority or fails to remit to the Administrative Agent the required receipts or other documentary
evidence, Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank for
any incremental Taxes or expenses that may become payable by the Administrative Agent, such Lender
or the Issuing Bank, as the case may be, as a result of any such failure.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which Borrower is resident for tax purposes, or any treaty to
which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by Borrower or the Administrative Agent as will permit such payments to be made without
withholding or at a reduced rate of withholding. Without limiting the generality of the foregoing,
each Foreign Lender shall (i) furnish on or prior to the date it becomes a party hereto, either (a)
two accurate and completed originally executed U.S. Internal Revenue Service Form W-8BEN (or
successor form), (b) two accurate and complete originally executed U.S. Internal Revenue Service
Form W-8ECI (or successor form), or (c) two accurate and complete originally executed U.S. Internal
Revenue Service Form W-8IMY (or successor form), together with any required schedules or
attachments, certifying, in each case, to such Foreign Lender’s legal entitlement to an exemption
or reduction from U.S. federal withholding tax with respect to all interest payments hereunder, and
(ii) to the extent it may lawfully do so at such times, provide a new Form W-8BEN (or successor
form), Form W-8ECI (or successor form) or Form W-8IMY (or successor form) upon the expiration or
obsolescence of any previously delivered form, or at any other time upon the reasonable request of
Borrower or the Administrative Agent, to reconfirm any complete exemption from, or any entitlement
to a reduction in, U.S. federal withholding tax with

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respect to any interest payment hereunder;
provided that any Foreign Lender that is not a “bank” within the meaning of Section 881(c)(3)(A) of
the Code shall also furnish a “Non-Bank Certificate” in the form of Exhibit K if it is
furnishing a Form W-8BEN. If requested by Borrower or the Administrative Agent, each Foreign
Lender shall (and shall cause other Persons acting on its behalf to) take any action (including
entering into an agreement with the Internal Revenue Service) and comply with any information
gathering and reporting requirements, in each case, that are required to obtain the maximum
available exemption from U.S. federal withholding taxes under Title I of the Foreign Account Tax
Compliance Act of 2009 (the “Proposed Act”), if enacted, or under any other enacted legislation
that is substantially
similar to Title I of the Proposed Act, with respect to payments received by or on behalf of
such Foreign Lender, provided that, for the avoidance of doubt, a Foreign Lender’s breach of this
sentence shall affect the rights only of the breaching Foreign Lender, and not the rights of any
other Foreign Lender, under Section 2.15(a).

          (f) If the Administrative Agent or a Lender (or an assignee) determines in its reasonable
discretion that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has
been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant
to this Section 2.15, it shall pay over such refund to Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by Borrower under this Section 2.15
with respect to the Indemnified Taxes or the Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender (or assignee) and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such
refund); provided, however, that if the Administrative Agent or such Lender (or assignee) is
required to repay all or a portion of such refund to the relevant Governmental Authority, Borrower,
upon the request of the Administrative Agent or such Lender (or assignee), shall repay the amount
paid over to Borrower that is required to be repaid (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender (or
assignee) within a reasonable time (not to exceed 20 days) after receipt of written notice that the
Administrative Agent or such Lender (or assignee) is required to repay such refund (or a portion
thereof) to such Governmental Authority. Nothing contained in this Section 2.15(f) shall
require the Administrative Agent or any Lender (or assignee) to make available its Tax Returns or
any other information which it deems confidential to Borrower or any other person. Notwithstanding
anything to the contrary, in no event will the Administrative Agent or any Lender (or assignee) be
required to pay any amount to Borrower the payment of which would place the Administrative Agent or
such Lender (or assignee) in a less favorable net after-tax position than the Administrative Agent
or such Lender (or assignee) would have been in if the additional amounts giving rise to such
refund of any Indemnified Taxes or Other Taxes had never been paid.

     Section 2.16 Mitigation Obligations; Replacement of Lenders. (a) Mitigation of Obligations. If any Lender requests compensation under Section 2.12(a) or
(b), or if Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.15, then such Lender shall use
reasonable efforts to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the reasonable judgment of such Lender, such designation or assignment (i) would
eliminate or reduce materially amounts payable pursuant to Section 2.12(a), 2.12(b), or 2.15, as
the case may be, in the future, (ii) would not subject such Lender to any unreimbursed cost or
expense, (iii) would not require such Lender to take any action materially inconsistent with its
internal policies or legal or regulatory restrictions, and (iv) would not otherwise be materially
disadvantageous to such Lender. Borrower shall pay all reasonable costs and expenses incurred by
any Lender in connection with any such designation or assignment. A certificate setting

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forth such
costs and expenses in reasonable detail submitted by such Lender to the Administrative Agent shall
be conclusive absent manifest error.

          (b) Replacement of Lenders. In the event (i) any Lender or the Issuing Bank delivers
a certificate requesting compensation pursuant to Section 2.12(a) or (b), (ii) any
Lender or the Issuing Bank delivers a notice described in Section 2.12(e), (iii) Borrower
is required to pay any additional amount to any Lender or the Issuing Bank or any Governmental
Authority on account of any Lender or
the Issuing Bank pursuant to Section 2.15, (iv) any Lender refuses to consent to any
amendment, waiver or other modification of any Loan Document requested by Borrower that requires
the consent of 100% of the Lenders and the Required Lenders have granted consent, or (v) any Lender
or the Issuing Bank defaults in its obligations to make Loans or issue Letters of Credit, as the
case may be, or other extensions of credit hereunder, Borrower may, at its sole expense and effort
(including with respect to the processing and recordation fee referred to in Section
11.04(b)), upon notice to such Lender or the Issuing Bank and the Administrative Agent, require
such Lender or the Issuing Bank to transfer and assign, without recourse (in accordance with and
subject to the restrictions contained in Section 11.04), all of its interests, rights and
obligations under this Agreement to an assignee which shall assume such assigned obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that (w) no Default
shall have occurred and be continuing, (x) such assignment shall not conflict with any applicable
Legal Requirement, (y) Borrower shall have received the prior written consent of the Administrative
Agent (and, if a Revolving Commitment is being assigned, the prior written consent of the Issuing
Bank and the Swingline Lender), which consent shall not unreasonably be withheld or delayed, and
(z) Borrower or such assignee shall have paid to the affected Lender or the Issuing Bank in
immediately available funds an amount equal to the sum of the principal of and interest and any
prepayment premium or penalty (if any) accrued to the date of such payment on the outstanding Loans
or LC Disbursements of such Lender or the Issuing Bank, respectively, affected by such assignment
plus all Fees and other amounts owing to or accrued for the account of such Lender or such Issuing
Bank hereunder (including any amounts under Section 2.12); provided further that, if prior
to any such transfer and assignment the circumstances or event that resulted in such Lender’s or
the Issuing Bank’s claim for compensation under Section 2.12(a) or (b) or notice
under Section 2.12(e) or the amounts paid pursuant to Section 2.15, as the case may
be, cease to cause such Lender or the Issuing Bank to suffer increased costs or reductions in
amounts received or receivable or reduction in return on capital, or cease to have the consequences
specified in Section 2.12(e), or cease to result in amounts being payable under Section
2.15, as the case may be (including as a result of any action taken by such Lender or the
Issuing Bank pursuant to paragraph (a) of this Section 2.16), or if such Lender or the
Issuing Bank shall waive its right to claim further compensation under Section 2.12(a) or
(b) in respect of such circumstances or event or shall withdraw its notice under
Section 2.12(e) or shall waive its right to further payments under Section 2.15 in
respect of such circumstances or event or shall consent to the proposed amendment, waiver, consent
or other modification, as the case may be, then such Lender or the Issuing Bank shall not
thereafter be required to make any such transfer and assignment hereunder. Each Lender and the
Issuing Bank hereby irrevocably authorizes the Administrative Agent to execute and deliver, on
behalf of such Lender and the Issuing Bank as assignor, any Assignment and Acceptance necessary to
effectuate any assignment of such Lender’s or the Issuing Bank’s interests hereunder in the
circumstances contemplated by this Section 2.16(b).

          (c) Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in
the event that any Lender becomes a Defaulting Lender, then (i) during any Default Period (as
defined below) with respect to such Defaulting Lender, such Defaulting Lender shall be deemed not
to be a “Lender”, and the amount of such Defaulting Lender’s Revolving Commitment and Revolving
Loans shall

55

 

be excluded for purposes of voting, and the calculation of voting, on any matters
(including the granting of any consents or waivers) with respect to any of the Loan Documents; (ii)
to the extent permitted by applicable Legal Requirements, until such time as the Default Excess (as
defined below) with respect to such Defaulting Lender shall have been reduced to zero, (A) any
voluntary prepayment of the Loans pursuant to Section 2.09(a) shall, if Borrower so directs
at the time of making such voluntary prepayment, be applied to the Loans of other Lenders in
accordance with Section 2.09(a) as if such Defaulting Lender had no Loans outstanding and
the Revolving Exposure of such Defaulting Lender were
zero, and (B) any mandatory prepayment of the Loans pursuant to Section 2.09 shall, if
Borrower so directs at the time of making such mandatory prepayment, be applied to the Loans of
other Lenders (but not to the Loans of such Defaulting Lender) in accordance with Section
2.09 as if such Defaulting Lender had funded all Defaulted Revolving Loans of such Defaulting
Lender, it being understood and agreed that borrower shall be entitled to retain any portion of any
mandatory prepayment of the Loans that is not paid to such Defaulting Lender solely as a result of
the operation of the provisions of this clause (B); (iii) the amount of such Defaulting Lender’s
Revolving Commitment, Revolving Loans and LC Exposure shall be excluded for purposes of calculating
the commitment fee payable to Revolving Lenders pursuant to Section 2.05(a) in respect of
any day during any Default Period with respect to such Defaulting Lender, and such Defaulting
Lender shall not be entitled to receive any commitment fee pursuant to Section 2.05(a) with
respect to such Defaulting Lender’s Revolving Commitment in respect of any Default Period with
respect to such Defaulting Lender; (iv) if any Swingline Exposure or LC Exposure exists at the time
a Lender becomes a Defaulting Lender then: (A) all or any part of such Swingline Exposure and LC
Exposure shall be reallocated among the Revolving Lenders that are not Defaulting Lenders in
accordance with their respective Revolving Commitments but, in any case, only to the extent (x)
the sum of the Revolving Exposures of all Revolving Lenders that are not Defaulting Lenders does
not exceed the total of the Revolving Commitments of all Revolving Lenders that are not Defaulting
Lenders and (y) the conditions set forth in Section 4.02 are satisfied at such time; (B) if the
reallocation described in clause (A) above cannot, or can only partially, be effected, Borrower
shall within one Business Day following notice by the Administrative Agent (x) prepay such
Swingline Exposure of such Defaulting Lender and (y) cash collateralize such Defaulting Lender’s LC
Exposure (after giving effect to any partial reallocation pursuant to clause (A) above) in
accordance with the procedures set forth in Section 2.18(i) for so long as such LC Exposure is
outstanding; (C) if Borrower cash collateralizes any portion of such Defaulting Lender’s LC
Exposure pursuant to this paragraph (iv), Borrower shall not be required to pay any LC
Participation Fee to such Defaulting Lender pursuant to Section 2.05(c) with respect to such
Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash
collateralized; (D) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to
this paragraph (iv), then the fees payable to the Lenders pursuant to Section 2.05 shall be
adjusted in accordance with such non-Defaulting Lenders’ reallocated LC Exposure; and (E) if any
Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to this
paragraph (iv), then, without prejudice to any rights or remedies of the Issuing Banks or any
Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting
Lender (solely with respect to the portion of such Defaulting Lender’s Commitment that was utilized
by such LC Exposure) and LC Participation Fee payable under Section 2.05 with respect to such
Defaulting Lender’s LC Exposure shall be payable to the applicable Issuing Banks until such LC
Exposure is cash collateralized and/or reallocated; (v) the Revolving Exposure of all Lenders as at
any date of determination shall be calculated as if such Defaulting Lender had funded all Defaulted
Revolving Loans of such Defaulting Lender; and (vi) so long as any Lender is a Defaulting Lender,
the Swingline Lender shall not be required to fund any Swingline Loan and no Issuing Bank shall be
required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related
exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by Borrower in accordance with

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paragraph (iv) of this Section 2.16(c),
and participating interests in any such newly issued or increased Letter of Credit or newly made
Swingline Loan shall be allocated among non-Defaulting Lenders in a manner consistent with
paragraph (iv)(A) of this Section 2.16(c) (and Defaulting Lenders shall not participate therein).
In the event that each of the Administrative Agent, Borrower, the Issuing Banks and the Swingline
Lender agree that a Defaulting Lender has adequately remedied all matters that caused such Lender
to be a Defaulting Lender, then the Swingline Exposure, LC Exposure and Revolving Exposure of the
Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and
on such date such Lender shall purchase at par such of the Loans of the other Lenders (other
than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for
such Lender to hold such Loans in accordance with its Revolving Commitment.

     For purposes of this Agreement, (i) “Funding Default” means, with respect to any Defaulting
Lender, the occurrence of any of the events set forth in the definition of “Defaulting Lender,”
(ii) “Default Period” means, with respect to any Defaulting Lender, the period commencing on the
date of the applicable Funding Default and ending on the earliest of the following dates: (a) the
date on which all Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (b) with respect any Funding Default (other than any such
Funding Default arising pursuant to clause (e) of the definition of “Defaulting Lender”), the date
on which (1) the Default Excess with respect to such Defaulting Lender shall have been reduced to
zero (whether by the funding by such Defaulting Lender of all payments resulting in such Funding
Default of such Defaulting Lender or by the non-pro rata application of any voluntary or mandatory
prepayments of the Loans in accordance with the terms hereof or any combination thereof) and (2)
such Defaulting Lender shall have delivered to Borrower and the Administrative Agent a written
reaffirmation of its intention to honor its obligations under this Agreement with respect to its
Commitment(s), and (c) the date on which Borrower, the Administrative Agent and the Required
Lenders waive all Funding Defaults of such Defaulting Lender in writing, and (iii) “Default
Excess” shall mean, with respect to any Defaulting Lender, the excess, if any, of such Defaulting
Lender’s pro rata percentage of the aggregate outstanding principal amount of Loans of all Lenders
(calculated as if all Defaulting Lenders (including such Defaulting Lender) had funded all of their
respective payments which resulted in such Lender being a Defaulting Lender) over the aggregate
outstanding principal amount of Loans of such Defaulting Lender.

     No amount of the Commitment of any Lender shall be increased or otherwise affected, and,
except as otherwise expressly provided in Section 2.16(c), performance by Borrower of its
obligations under this Agreement and the other Loan Documents shall not be excused or otherwise
modified, as a result of any Funding Default or the operation of Section 2.16(c). The
rights and remedies against a Defaulting Lender under Section 2.16(c) are in addition to
other rights and remedies that Borrower may have against such Defaulting Lender with respect to any
Funding Default and that the Administrative Agent or any Lender may have against such Defaulting
Lender with respect to any Funding Default.

     Section 2.17 Swingline Loans. (a) Swingline Commitment. Subject to the terms and conditions set forth herein, the
Swingline Lender agrees to make Swingline Loans to Borrower from time to time on any Business Day
during the Revolving Availability Period, in an aggregate principal amount at any time outstanding
that will not result in (and upon each such Borrowing of Swingline Loans, Borrower shall be deemed
to represent and warrant that such Borrowing will not result in) (i) the aggregate principal amount
of outstanding Swingline Loans exceeding the Swingline Commitment, (ii) the sum of the total
Revolving Exposures exceeding the total Revolving Commitments or (iii) the Revolving Exposure for
all Lenders exceeding the Borrowing Base; provided that the Swingline Lender shall not be required
to make a Swingline Loan to refinance, in whole or in part, an outstanding Swingline Loan. Within
the

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foregoing limits and subject to the terms and conditions set forth herein, Borrower may borrow,
repay and reborrow Swingline Loans.

          (b) Swingline Loans. To request a Swingline Loan, Borrower shall deliver, by hand
delivery or facsimile transmission (or transmit by other electronic transmission if arrangements
for doing so have been approved in writing by the Administrative Agent), a duly completed and
executed
Borrowing Request to the Administrative Agent and the Swingline Lender, not later than 10:00
a.m., New York City time, on the Business Day of a proposed Swingline Loan. Each such notice shall
be irrevocable and shall specify the requested date (which shall be a Business Day) and the amount
of the requested Swingline Loan. Each Swingline Loan shall accrue interest based on the Adjusted
LIBOR Rate. The Swingline Lender shall make each Swingline Loan available to Borrower by means of
a credit to the Borrower Account by the Swingline Lender (or, in the case of a Swingline Loan made
to finance the reimbursement of an LC Disbursement as provided in Section 2.18(e), by
remittance to the Issuing Bank). The Swingline Lender shall endeavor to fund each Swingline Loan
by 3:00 p.m., New York City time and shall in all events fund each Swingline Loan by no later than
5:00 p.m., New York City time, on the requested date of such Swingline Loan. Borrower shall not
request a Swingline Loan if at the time of or immediately after giving effect to the Credit
Extension contemplated by such request a Default has occurred and is continuing or would result
therefrom. Swingline Loans shall be made in minimum amounts of $100,000 and integral multiples of
$50,000 above such amount.

          (c) Prepayment. Borrower shall have the right at any time and from time to time to
repay any Swingline Loan, in whole or in part, upon giving written notice to the Swingline Lender
and the Administrative Agent before 12:00 p.m., New York City time, on the proposed date of
repayment; provided that Borrower shall repay each Swingline Loan (whether through proceeds of a
Revolving Loan or otherwise) on or prior to the fifth Business Day following the initial advance of
the Swingline Lender with respect thereto.

          (d) Participations. The Swingline Lender (i) may at any time in its discretion, and
(ii) no less frequently than every five Business Days or as directed by the Administrative Agent
from time to time on not less than one Business Day’s written notice to the Swingline Lender, shall
by written notice given to the Administrative Agent (provided such notice requirements shall not
apply if the Swingline Lender and the Administrative Agent are the same entity) not later than
11:00 a.m., New York City time, on the next succeeding Business Day following such notice require
the Revolving Lenders to acquire participations on such Business Day in all or a portion of the
Swingline Loans then outstanding. Such notice shall specify the aggregate amount of Swingline
Loans in which Revolving Lenders will participate. Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Revolving Lender, specifying in such notice
such Lender’s Pro Rata Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s Pro Rata Percentage of
such Swingline Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation to
acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including the occurrence and continuance
of a Default, a reduction or termination of the Commitments or a Borrowing Base Deficiency, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever (so long as such payment shall not cause such Lender’s Revolving Exposure to exceed such
Lender’s Revolving Commitment). Each Revolving Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as provided in
Section 2.02(c) with respect to Loans made by such Lender (and
Section

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2.02 shall
apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the Revolving Lenders; provided, that the Revolving Lender who is the Swingline Lender shall be
deemed to have funded its Pro Rata Percentage automatically without further funding. The
Administrative Agent shall notify Borrower of any participations in any Swingline Loan acquired by
the Revolving Lenders pursuant to this paragraph, and thereafter payments in respect of such
Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline
Lender from Borrower (or other party on behalf of Borrower) in respect of a Swingline Loan after
receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent. Any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving Lenders that shall
have made their payments pursuant to this paragraph, as their interests may appear. The purchase
of participations in a Swingline Loan pursuant to this paragraph shall not relieve Borrower of any
default in the payment thereof.

          (e) Resignation or Removal of the Swingline Lender. The Swingline Lender may resign
as Swingline Lender hereunder at any time upon at least 30 days’ prior written notice to the
Lenders, the Administrative Agent and Borrower, provided that such Swingline Lender is replaced by
a successor Swingline Lender simultaneously with its resignation. Following such notice of
resignation from the Swingline Lender, the Swingline Lender may be replaced at any time by written
agreement among Borrower (with Borrower’s agreement not to be unreasonably withheld, delayed or
conditioned), the Administrative Agent, the replaced Swingline Lender and the successor Swingline
Lender. The Administrative Agent shall notify the Lenders of any such replacement of the Swingline
Lender. At the time any such resignation or replacement shall become effective, Borrower shall pay
all unpaid fees accrued for the account of the replaced Swingline Lender. From and after the
effective date of any such resignation or replacement, (i) the successor Swingline Lender shall
have all the rights and obligations of the Swingline Lender under this Agreement with respect to
Swingline Loans to be made by it thereafter and (ii) references herein and in the other Loan
Documents to the term “Swingline Lender” shall be deemed to refer to such successor or to any
previous Swingline Lenders, or to such successor and all previous Swingline Lenders, as the context
shall require. After the resignation or replacement of the Swingline Lender hereunder, the
replaced Swingline Lender shall remain a party hereto and shall continue to have all the rights and
obligations of the Swingline Lender under this Agreement with respect to Swingline Loans made by it
prior to such resignation or replacement, but shall not be required to make additional Swingline
Loans. Notwithstanding anything to the contrary in this Section 2.17(e) or otherwise, the
Swingline Lender may not resign until such time as a successor Swingline Lender has been appointed.

     Section 2.18 Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, Borrower may
request the Administrative Agent, and the Administrative Agent agrees to cause an Issuing Bank to
issue Letters of Credit for its own account or the account of a Subsidiary in a form reasonably
acceptable to Borrower (with Borrower’s agreement not to be unreasonably withheld, delayed or
conditioned), the Administrative Agent and the Issuing Bank, at any time and from time to time
during the Revolving Availability Period (provided that Borrower shall be a co-applicant, and be
jointly and severally liable, with respect to each Letter of Credit issued for the account of a
Subsidiary). The Issuing Bank shall have no obligation to issue, and Borrower shall not request
the issuance of, any Letter of Credit at any time if after giving effect to such issuance, (w) the
LC Exposure would exceed the LC Commitment, (x) the total Revolving Exposure would exceed the total
Revolving Commitments, (y) the Revolving Exposure for all Lenders would then exceed the Borrowing
Base, or (z) the expiry date of the proposed Letter of Credit is on or after than the close of
business on the Letter of Credit

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Expiration Date. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by Borrower to, or entered into by Borrower with, the
Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall
control.

          (b) Request for Issuance, Amendment, Renewal, Extension; Certain Conditions. To
request the issuance of a Letter of Credit or the amendment, renewal or extension of an outstanding
Letter of Credit, Borrower shall hand deliver or facsimile transmission (or transmit by electronic
communication if arrangements for doing so have been approved by the Issuing Bank) an LC Request to
the Issuing Bank and the Administrative Agent not later than 11:00 a.m., New York City time, on the
third Business Day preceding the requested date of issuance, amendment, renewal or extension (or
such later date and time as is acceptable to the Issuing Bank).

     A request for an initial issuance of a Letter of Credit shall specify in form and detail
reasonably satisfactory to the Issuing Bank:

          (i) the proposed issuance date of the requested Letter of Credit (which shall be a
Business Day);

          (ii) the face amount thereof;

          (iii) the expiry date thereof (which shall not be later than the close of business on
the Letter of Credit Expiration Date);

          (iv) the name and address of the beneficiary thereof;

          (v) whether the Letter of Credit is to be issued for its own account or for the account
of one of its Subsidiaries (provided that Borrower shall be a co-applicant, and be jointly
and severally liable, with respect to each Letter of Credit issued for the account of a
Subsidiary);

          (vi) whether the Letter of Credit is to be issued as a Standby Letter of Credit or a
Commercial Letter of Credit;

          (vii) the documents to be presented by such beneficiary in connection with any drawing
thereunder;

          (viii) the full text of any certificate to be presented by such beneficiary in
connection with any drawing thereunder; and

          (ix) such other matters as the Issuing Bank may require.

     A request for an amendment, renewal or extension of any outstanding Letter of Credit shall
specify in form and detail reasonably satisfactory to the Issuing Bank:

          (i) the Letter of Credit to be amended, renewed or extended;

          (ii) the proposed date of amendment, renewal or extension thereof (which shall be a
Business Day);

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          (iii) the expiry date thereof (which shall not be later than the close of business on
the Letter of Credit Expiration Date);

          (iv) the nature of the proposed amendment, renewal or extension; and

          (v) such other matters as the Issuing Bank may require.

If requested by the Issuing Bank, Borrower also shall submit a letter of credit application on the
Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and, upon issuance, amendment,
renewal or extension of each Letter of Credit, Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension, (i) the LC Exposure
shall not exceed the LC Commitment, (ii) the total Revolving Exposures shall not exceed the total
Revolving Commitments and (iii) the conditions set forth in Article IV in respect of such
issuance, amendment, renewal or extension shall have been satisfied. Unless the Issuing Bank shall
agree otherwise, no Letter of Credit shall be in an initial amount less than $100,000.

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (x) the date which is one year after the date of the issuance of such
Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal
or extension) and (y) the Letter of Credit Expiration Date; provided that this paragraph (c) shall
not prevent any Issuing Bank from agreeing that a Letter of Credit will automatically be extended
for one or more successive periods not to exceed one year each (and, in any case, not to extend
beyond the Letter of Credit Expiration Date) unless each such Issuing Bank elects not to extend for
any such additional period.

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby irrevocably grants to each Revolving Lender,
and each Revolving Lender hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Revolving Lender’s Pro Rata Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each
Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent,
for the account of the Issuing Bank, such Revolving Lender’s Pro Rata Percentage of each LC
Disbursement made by the Issuing Bank and not reimbursed by Borrower on the date due as provided in
Section 2.18(e), or of any reimbursement payment required to be refunded to Borrower for
any reason. Each Revolving Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Commitments or a Borrowing Base Deficiency and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever (so long
as such payment shall not cause such Lender’s Revolving Exposure to exceed such Lender’s Revolving
Commitment).

          (e) Reimbursement. (i) If the Issuing Bank shall make any LC Disbursement in respect
of a Letter of Credit, Borrower shall reimburse such LC Disbursement by paying to the Issuing Bank
an amount equal to such LC Disbursement not later than 2:00 p.m., New York City time, on the
Business Day immediately following the date that such LC Disbursement is made if Borrower shall
have received notice of such LC Disbursement prior to 11:00 a.m., New York City time, on such date,
or, if

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such notice has not been received by Borrower prior to such time on such date, then not
later than 2:00 p.m., New York City time, on the second Business Day immediately following the day
that Borrower receives such notice; provided that Borrower may, subject to the conditions to
borrowing set forth herein, request in accordance with Section 2.03 that such payment be
financed with Revolving Loans in
an equivalent amount and, to the extent so financed, Borrower’s obligation to make such
payment shall be discharged and replaced by the resulting Revolving Loans.

          (ii) If Borrower fails to make such payment when due, and if the amount is not financed
pursuant to the proviso to Section 2.18(e), the Issuing Bank shall notify the Administrative
Agent and the Administrative Agent shall notify each Revolving Lender of the applicable LC
Disbursement, the payment then due from Borrower in respect thereof and such Revolving
Lender’s Pro Rata Percentage thereof. Each Revolving Lender shall pay by wire transfer of
immediately available funds to the Administrative Agent not later than 12:00 p.m., New York
City time, on such date (or, if such Revolving Lender shall have received such notice later
than 11:00 a.m., New York City time, on any day, not later than 11:00 a.m., New York City
time, on the immediately following Business Day), an amount equal to such Revolving Lender’s
Pro Rata Percentage of the unreimbursed LC Disbursement in the same manner as provided in
Section 2.02(c) with respect to Revolving Loans made by such Revolving Lender, and the
Administrative Agent will promptly pay to the Issuing Bank the amounts so received by it
from the Revolving Lenders; provided, that if the Issuing Bank is also a Revolving Lender,
such Revolving Lender shall be deemed to have funded its Pro Rata Percentage automatically
without further funding. The Administrative Agent will promptly pay to the Issuing Bank any
amounts received by it from Borrower pursuant to the above paragraph prior to the time that
any Revolving Lender makes any payment pursuant to the preceding sentence and any such
amounts received by the Administrative Agent from Borrower thereafter will be promptly
remitted by the Administrative Agent to the Revolving Lenders that shall have made such
payments and to the Issuing Bank, as appropriate.

          (iii) If any Revolving Lender shall not have made its Pro Rata Percentage of such LC
Disbursement available to the Administrative Agent as provided above, each of Borrower and
such Revolving Lender severally agrees to pay interest on such amount, for each day from and
including the date such amount is required to be paid in accordance with the foregoing to
but excluding the date such amount is paid, to the Administrative Agent for the account of
the Issuing Bank at (i) in the case of Borrower, the Default Rate and (ii) in the case of
such Lender, at the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules or practices on interbank
compensation.

          (f) Obligations Absolute. The Reimbursement Obligation of Borrower as provided in
Section 2.18(e) shall be absolute, unconditional and irrevocable, and shall be paid and
performed strictly in accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit
or this Agreement, or any term or provision therein; (ii) any draft or other document presented
under a Letter of Credit being proved to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that fails
to strictly comply with the terms of such Letter of Credit; (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section 2.18, constitute a legal or equitable discharge of, or

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provide a right of
setoff against, the obligations of Borrower hereunder; (v) the fact that a Default shall have
occurred and be continuing; (vi) any material adverse change in the condition (financial or
otherwise), results of operations, assets, liabilities (contingent or otherwise), material
agreements, properties, solvency, business, management, prospects or value of any Company; or (vii)
any other fact,
circumstance or event whatsoever. None of the Agents, the Lenders, the Issuing Bank or any of
their Affiliates shall have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any
error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not
be construed to excuse the Issuing Bank from liability to Borrower to the extent of any direct
damages (as opposed to consequential, special, punitive or other indirect damages, claims in
respect of which are hereby waived by Borrower to the extent permitted by applicable Legal
Requirements) suffered by Borrower that are caused by the Issuing Bank’s failure to exercise care
when determining whether drafts and other documents presented under a Letter of Credit comply with
the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or
willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion,
either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly give written notice to the Administrative Agent and
Borrower of such demand for payment and whether the Issuing Bank has made or will make an LC
Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not
relieve Borrower of its Reimbursement Obligation to the Issuing Bank and the Revolving Lenders with
respect to any such LC Disbursement (other than with respect to the timing of such Reimbursement
Obligation set forth in Section 2.18(e)).

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is
made, the unpaid amount thereof shall bear interest payable on demand, for each day from and
including the date such LC Disbursement is made to but excluding the date that Borrower reimburses
such LC Disbursement, at the Alternate Base Rate plus the Applicable Margin for a period of three
calendar days from the date of such LC Disbursement, and at the Default Rate thereafter. Interest
accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that
interest accrued on and after the date of payment by any Revolving Lender pursuant to Section
2.18(e) to reimburse the Issuing Bank shall be for the account of such Lender to the extent of
such payment.

          (i) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure
representing

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greater than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, Borrower shall deposit in the LC Sub-Account, in the name of the
Collateral Agent and for the benefit of the Revolving Lenders, an amount in cash equal to 105% of
the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the
obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become immediately due
and payable, without demand or other notice of any kind, upon the occurrence of any Event of
Default with respect to Borrower described in paragraph (g) or (h) of Section 8.01. Funds
in the LC Sub-Account shall be applied by the Collateral Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held
for the satisfaction of outstanding Reimbursement Obligations or, if the maturity of the Loans has
been accelerated (but subject to the consent of Revolving Lenders with LC Exposure representing
greater than 50% of the total LC Exposure), be applied to satisfy other Obligations of Borrower in
accordance with Article IX. If Borrower is required to provide an amount of cash
collateral hereunder as a result of the occurrence of an Event of Default, such amount plus any
accrued interest or realized profits with respect to such amounts (to the extent not applied as
aforesaid) shall be returned to Borrower within five Business Days after all Events of Default have
been cured or waived.

          (j) Additional Issuing Banks. The Administrative Agent may, at any time and from time
to time, designate one or more additional Revolving Lenders to act as an Issuing Bank under the
terms of this Agreement, with the consent of Borrower (which consent shall not be unreasonably
withheld). Any Revolving Lender designated as an Issuing Bank pursuant to this paragraph (j) shall
be deemed (in addition to being a Revolving Lender) to be the Issuing Bank with respect to Letters
of Credit issued or to be issued by such Revolving Lender, and all references herein and in the
other Loan Documents to the term “Issuing Bank” shall, with respect to such Letters of Credit, be
deemed to refer to such Revolving Lender in its capacity as Issuing Bank, as the context shall
require.

          (k) Resignation or Removal of the Issuing Bank. The Issuing Bank may resign as
Issuing Bank hereunder at any time upon at least 30 days’ prior written notice to the Lenders, the
Administrative Agent and Borrower. The Issuing Bank may be replaced at any time by written
agreement among Borrower, the Administrative Agent, the replaced Issuing Bank and the successor
Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the
Issuing Bank or any such additional Issuing Bank. At the time any such resignation or replacement
shall become effective, Borrower shall pay all unpaid fees accrued for the account of the replaced
Issuing Bank pursuant to Section 2.05(d). From and after the effective date of any such
resignation or replacement or addition, as applicable, (i) the successor or additional Issuing Bank
shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to
Letters of Credit to be issued by it thereafter and (ii) references herein and in the other Loan
Documents to the term “Issuing Bank” shall be deemed to refer to such successor or such addition or
to any previous Issuing Bank, or to such successor or such addition and all previous Issuing Banks,
as the context shall require. After the resignation or replacement of an Issuing Bank hereunder,
the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such resignation or replacement, but shall not be required to issue additional Letters of
Credit. If at any time there is more than one Issuing Bank hereunder, Borrower may, in its
discretion, select which Issuing Bank is to issue any particular Letter of Credit.

          (l) Other. The Administrative Agent shall be under no obligation to arrange for an
Issuing Bank to issue any Letter of Credit if:

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          (i) any Order of any Governmental Authority or arbitrator shall by its terms purport to
enjoin or restrain the Administrative Agent from arranging, or Issuing Bank from issuing,
such Letter of Credit, or any Legal Requirement applicable to the Issuing Bank or any
request or directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over the Issuing Bank shall prohibit, or request that the
Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not
otherwise compensated hereunder) not in effect on the Restatement Date, or shall impose upon
the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the
Restatement Date and which the Issuing Bank in good faith deems material to it; or

          (ii) the issuance of such Letter of Credit would violate one or more policies of
general application of the Administrative Agent or the Issuing Bank.

The Issuing Bank shall be under no obligation to amend any Letter of Credit if (A) the Issuing Bank
would have no obligation at such time to issue such Letter of Credit in its amended form under the
terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Each Loan Party represents and warrants to the Administrative Agent, the Collateral Agent, the
Issuing Bank and each of the Lenders (with references to the Companies being references thereto
after giving effect to the Restatement Transactions unless otherwise expressly stated) that:

     Section 3.01 Organization; Powers. Each Company (a) is duly incorporated or organized and validly existing under the laws of the
jurisdiction of its incorporation or organization, as the case may be, (b) has all requisite power
and authority to carry on its business as now conducted and to own, lease and operate its property
and (c) is registered, qualified and in good standing (to the extent such concept is applicable in
the applicable jurisdiction) to do business in every jurisdiction where such qualification is
required, except in such jurisdictions where the failure to so register, qualify or be in good
standing could not reasonably be expected to result in a Material Adverse Effect. There is no
existing default under any Organizational Document of any Company or any event which, with the
giving of notice or passage of time or both, would constitute a default by any party thereunder.

     Section 3.02 Authorization; Enforceability. The Transactions entered into by each Loan Party were, and the Restatement Transactions entered
into by each Loan Party are, within such Loan Party’s powers and have been duly authorized by all
necessary corporate or other organizational action on the part of such Loan Party. This Agreement
has been duly executed and delivered by each Loan Party and constitutes, and each other Loan
Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party,
will constitute, a legal, valid and binding obligation of such Loan Party, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

     Section 3.03 No Conflicts. The Transactions and Restatement Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental

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Authority, except (i) such as
have been obtained or made and are in full force and effect, (ii) filings necessary to perfect or
maintain the perfection or priority of the Liens created by the Security Documents and (iii)
consents, approvals, registrations, filings, Permits or actions the failure of which to obtain or
perform could not reasonably be expected to result in a Material Adverse Effect, (b) will not
violate the Organizational Documents of any Company, (c) will not violate or result in a default or
require any consent or approval under (x) any indenture, agreement, or other instrument binding
upon any Company or its property or to which any Company or its property is subject, or give rise
to a right thereunder to require any payment to be made by any Company, except for violations,
defaults or the creation of such rights that could not reasonably be expected to result in a
Material Adverse Effect or (y) any Organizational Document, (d) will not violate any material Legal
Requirement in any material respect and (e) will not result in the creation or imposition of any
Lien on any property of any Company, other than the Liens created by the Security Documents.

     Section 3.04 Financial Statements; Projections. (a) All financial statements and all financial statements delivered pursuant to Sections
5.01(a), (b) and (c) have been prepared in accordance with GAAP consistently
applied throughout the applicable period covered, respectively, thereby and present fairly the
financial condition and results of operations and cash flows of Borrower as of the dates and for
the periods to which they relate (subject to normal year-end audit adjustments and the absence of
footnotes). Except as set forth in such financial statements, there are no liabilities of any
Company of any kind, whether accrued, contingent, absolute, determined, determinable or otherwise,
which could reasonably be expected to result in a Material Adverse Effect, and there is no existing
condition, situation or set of circumstances which could reasonably be expected to result in such a
liability.

          (b) Borrower heretofore has delivered to the Lenders the consolidated balance sheets and
related statements of income, stockholders’ equity and cash flows of Borrower as of and for the
fiscal quarters ended March 31, 2010, June 30, 2010 and September 30, 2010. Such financial
statements (A) have been prepared in good faith by the Loan Parties, based upon (i) accounting
principles consistent with the historical audited financial statements delivered pursuant to this
Section 3.04(b) and (ii) the best information reasonably available to, or in the possession
or control of, the Loan Parties as of the date of delivery thereof, (B) have been prepared in
accordance with GAAP (subject to normal year-end audit adjustments and the absence of footnotes)
consistently applied throughout the applicable period covered, respectively, thereby, and (C)
present fairly the consolidated financial position and results of operations of Borrower as of such
dates and for such periods.

          (c) Borrower has heretofore delivered to the Lenders the forecasts of financial performance of
Borrower and its Subsidiaries dated December 28, 2010 (the “Projections”). The Projections have
been prepared in good faith by the Loan Parties and based upon (i) the assumptions stated therein
(which assumptions are believed by the Loan Parties on the date hereof and the Closing Date to be
reasonable), (ii) accounting principles consistent with the historical audited financial statements
delivered pursuant to Section 3.04(a) consistently applied throughout the fiscal years covered
thereby, and (iii) the best information reasonably available to, or in the possession or control
of, the Loan Parties as of the dates of the Projections.

          (d) Since September 30, 2009, there has been no event, change, circumstance or occurrence that
has had or could reasonably be expected to result in a Material Adverse Effect.

     Section 3.05 Properties. (a) Each Company has good title to, or valid leasehold interests in, all its property material
to its business, free and clear of all Liens and irregularities, deficiencies and

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defects in title
except for Permitted Liens and minor irregularities, deficiencies
and defects in title that do not,
and could not reasonably be expected to, interfere in any material respect with its ability to
conduct its business as currently conducted or to utilize such property for its intended purpose.
The property of the Companies, taken as a whole, (i) is in good operating order, condition and
repair (ordinary wear and tear excepted), and (ii) constitutes all the property which is required
for the business and operations of the Companies as presently conducted.

          (b) Schedule 3.05(b) contains a true and complete list of each ownership and leasehold
interest in Real Property (including all modifications, amendments and supplements thereto with
respect to leased Real Property) (i) owned by any Company as of the Restatement Date and describes
the use and type of interest therein held by such Company and (ii) leased, subleased or otherwise
occupied or utilized by any Company, as lessee, sublessee, franchisee or licensee, as of the
Restatement Date and describes the use and type of interest therein held by such Company; and
accurately and comprehensively designates which, among such properties, constitute Key Locations as
of the Restatement Date. No Company is in default under any provision of any lease agreement to
which it is a party with respect to a leasehold interest in Real Property, where such default could
reasonably be expected to result in a Material Adverse Effect.

          (c) No Company has received any notice of, nor has any knowledge of, the occurrence or
pendency or contemplation of any Casualty Event affecting all or any portion of any Key Location
where such Casualty Event could reasonably be expected to result in a Material Adverse Effect. No
Mortgage encumbers improved Real Property that is located in an area that has been identified by
the Secretary of Housing and Urban Development as an area having special flood hazards within the
meaning of the National Flood Insurance Act of 1968 unless flood insurance available under such Act
has been obtained in accordance with Section 5.04.

          (d) Each Company owns or has rights to use all of its property and all rights with respect to
any of the foregoing used in, necessary for or material to each Company’s business as currently
conducted. The use by each Company of its property and all such rights with respect to the
foregoing do not infringe on the rights of any person, other than any infringement that could not
reasonably be expected to result in a Material Adverse Effect. No claim has been made and remains
outstanding that any Company’s use of any of its property does or may violate the rights of any
third party that could reasonably be expected to result in a Material Adverse Effect. Each Key
Location is zoned to permit the uses for which such Key Location is currently being used. The
present uses of each Key Location and the current operations of each Company’s business do not
violate in any material respect any provision of any applicable building codes, subdivision
regulations, fire regulations, health regulations or building and zoning bylaws.

     Section 3.06 Intellectual Property. (a) Ownership; No Claims; Use of Intellectual Property; Protection of Trade Secrets.
Each Company owns or is licensed to use, free and clear of all Liens (other than Permitted Liens),
all patents and patent
applications; trademarks, trade names, service marks, copyrights, domain names and applications for
registration thereof; and technology, trade secrets, proprietary information, inventions, know-how
and processes necessary for the conduct of its business as currently conducted (the “Intellectual
Property”), except for those the failure to own or license which could not reasonably be expected
to result in a Material Adverse Effect. No material claim has been asserted and is pending by any
person challenging or questioning the use of any such Intellectual Property or the validity or
effectiveness of any such Intellectual Property, nor does any Company know of any valid basis for
any such claim. The use of such Intellectual Property by each Company does not

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infringe the rights
of any person, except for such claims and infringements which could not reasonably be expected to
result in a Material Adverse Effect. Except pursuant to licenses and other user agreements entered
into by each Company in the ordinary course of business which, in the case of licenses and user
agreements in existence on the date hereof, are listed in Schedule 3.06(a), no Company has
done anything to authorize or enable any other person to use any such Intellectual Property, which
use, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect. Each Company has taken commercially reasonable measures to protect the secrecy,
confidentiality and value of all trade secrets used in such Company’s business, to the extent that
the loss thereof, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

          (b) Patents; Registrations. (i) On and as of the Restatement Date, each Company owns
and possesses the right to use all issued patents and pending patent applications, trademark,
service mark and domain name registrations and pending applications, and copyright registrations
and pending applications listed in Schedules 14(a), 14(b) and 14(c) to the
Perfection Certificate, and (ii) all patents and registered trademarks, service marks, copyrights
and domain names owned by each Company are valid, subsisting and in full force and effect;
excepting therefrom, in each case, the failure of which to comply herewith, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

          (c) No Violations or Proceedings. (i) There is no violation by others of any right of
any Company with respect to any Intellectual Property, other than such violations, individually or
in the aggregate, that could not reasonably be expected to have a Material Adverse Effect, (ii) no
Company is materially infringing upon or misappropriating any copyright, patent, trademark, trade
secret or other intellectual property right of any other person, (iii) no Company is in breach of,
or in default under, any license of Intellectual Property by any other person to such Company,
except in any case where such breach or default, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, and (iv) no proceedings have been
instituted or are pending against any Company or threatened, and no claim against any Company has
been received by any Company, alleging any such infringement or misappropriation, except to the
extent that such proceedings or claims, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

          (d) No Impairment. Neither the execution, delivery or performance of this Agreement
and the other Loan Documents, nor the consummation of the transactions contemplated hereby and
thereby, will alter, impair or otherwise affect or require the consent of any other person in
respect of any right of any Company in any Intellectual Property, except to the extent that such
alteration, impairment, effect or consent could not reasonably be expected to result in a Material
Adverse Effect.

          (e) No Agreement or Order Materially Affecting Intellectual Property. Except as set
forth on Schedule 3.06(e), no Company is subject to any settlement, covenant not to sue or
other
agreement, or any outstanding Order, which may materially affect the validity or
enforceability or restrict in any manner such Company’s use, licensing or transfer of any of the
Intellectual Property.

     Section 3.07 Equity Interests and Subsidiaries. (a) Schedule 3.07(a) sets forth a list of (i) each Subsidiary of Borrower and its
jurisdiction of incorporation or organization as of the Restatement Date, (ii) each Subsidiary as
of the Restatement Date, and (iii) the number of each class of its Equity Interests authorized, and
the number outstanding, on the Restatement Date and the number

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of shares covered by all outstanding
options, warrants, rights of conversion or purchase and similar rights on the Restatement Date.
All Equity Interests of each Company are duly and validly issued and are fully paid and
non-assessable, and all Equity Interests of the Subsidiaries are owned by Borrower directly or
indirectly through Wholly Owned Subsidiaries. Each Loan Party is the record and beneficial owner
of, and has good and marketable title to, the Equity Interests pledged by it under the Security
Documents, free of any and all Liens, rights or claims of other persons, except the security
interest created by the Security Documents and any Permitted Liens that arise by operation of
applicable Legal Requirements and are not voluntarily granted, and, as of the Restatement Date,
there are no outstanding warrants, options or other rights to purchase, or shareholder, voting
trust or similar agreements outstanding with respect to, or property that is convertible into, or
that requires the issuance or sale of, any such Equity Interests, except as may be set forth on
Schedule 3.07(a).

          (b) No consent of any person including any general or limited partner, any other member or
manager of a limited liability company, any shareholder or any other trust beneficiary is necessary
or reasonably desirable (from the perspective of a secured party) in connection with the creation,
perfection or first priority status (or the maintenance thereof) of the security interest of the
Collateral Agent in any Equity Interests pledged to the Collateral Agent under the Security
Documents or the exercise by the Collateral Agent or any Lender of the voting or other rights
provided for in the Security Documents or the exercise of remedies in respect of such Equity
Interests.

          (c) A complete and accurate organization chart, showing the ownership structure of the
Companies on the Restatement Date, both before and after giving effect to the Transactions and
Restatement Transactions, is set forth on Schedule 3.07(c).

     Section 3.08 Litigation; Compliance with Laws. (a) There are no actions, suits, proceedings or, to the knowledge of any Loan Party,
investigations at law or in equity by or before any Governmental Authority now pending or, to the
knowledge of any Loan Party, threatened against or affecting any Company or any business, property
or rights of any Company (i) that involve any Loan Document or any of the Transactions or
Restatement Transactions, or (ii) that have resulted in, or could reasonably be expected to result
in, a Material Adverse Effect.

          (b) Except for matters covered by Section 3.18, no Company or any of its property is
(i) in violation of, nor will the continued operation of its property as currently conducted
violate, any Legal Requirements (including any zoning or building ordinance, code or approval or
any building permits) or any restrictions of record or agreements affecting any Company’s Real
Property or (ii) in default with respect to any Order, where such violation or default, could
reasonably be expected to result in a Material Adverse Effect.

     Section 3.09 Agreements. (a) No Company is a party to any agreement or instrument or subject to any corporate or other
constitutional restriction, or any restriction under its Organizational Documents, that has
resulted or could reasonably be expected to result in a Material Adverse Effect.

          (b) No Company is in default in any manner under any provision of any Material Agreement
evidencing Indebtedness, or any other agreement or instrument to which it is a party or by which it
or any of its property is or may be bound or subject, where such default could reasonably be
expected to result in a Material Adverse Effect, and no condition exists which, with the giving of
notice or the lapse of time or both could reasonably be expected to constitute such a default.

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          (c) No Company is in default of, lost or has had terminated any Material Agreement.
Schedule 3.09(c) accurately and completely lists all Material Agreements (other than leases
of Real Property set forth on Schedule 3.05(b)) to which any Company is a party which were
in effect on the Restatement Date in connection with the operation of the business conducted
thereby and Borrower has delivered to the Administrative Agent (or made available to the
Administrative Agent and the Lenders for review on or before the date hereof) complete and correct
copies of all such Material Agreements, including any amendments, supplements or modifications with
respect thereto, and all such Material Agreements are in full force and effect.

     Section 3.10 Federal Reserve Regulations. (a) No Company is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose of buying or carrying Margin Stock.

          (b) No part of the proceeds of any Credit Extension will be used, whether directly or
indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a
violation of, or that is inconsistent with, the provisions of the regulations of the Board,
including Regulation T, U or X. The pledge of the Securities Collateral pursuant to the Security
Agreement does not violate such regulations.

     Section 3.11 Investment Company Act; Public Utility Holding Company Act, etc.
No Company is (a) an “investment company” or a company “controlled” by an “investment
company,” as defined in, or subject to regulation under, the Investment Company Act of 1940, as
amended, (b) a “holding company,” an “affiliate” of a “holding company” or a “subsidiary company”
of a “holding company,” as defined in, or subject to regulation under, the Public Utility Holding
Company Act of 2005, as amended, or (c) subject to regulation under any Legal Requirement (other
than Regulation X) that limits its ability to incur, create, assume or permit to exist
Indebtedness.

     Section 3.12 Use of Proceeds. Borrower will use the proceeds of the Revolving Loans and Swingline Loans on and after the
Restatement Date for the repayment of any Term Loans assigned to HF-4 by the Assigning Lenders, for
general corporate and working capital purposes (including to effect any Permitted Acquisitions),
for Capital Expenditures and for other corporate purposes consistent with the terms of this
Agreement.

     Section 3.13 Taxes. Each Company has (a) timely filed or caused to be timely filed all federal, state, local and
foreign Tax Returns required to have been filed by it and all such Tax Returns are true and correct
in all material respects and (b) duly and timely paid or caused to be duly and timely paid all
Taxes (whether or not shown on any Tax Return) due and payable by it and all assessments received
by it, except Taxes that are being contested in good faith by appropriate proceedings and for which
such Company has set aside on its books adequate reserves in accordance with GAAP. Each Company
has made adequate provision in accordance with GAAP for all Taxes not yet due and payable. No
Company is aware of any proposed or pending tax assessments, deficiencies, audits or other
proceedings that could reasonably be expected to result in a Material Adverse Effect. No Company
has ever been a party to any understanding or arrangement constituting a “tax shelter” within the
meaning of Section 6662(d)(2)(C)(ii) of the Code or Sections 6111(c) or 6111(d) of the Code (as in
effect prior to the amendment by the American Jobs Creation Act of 2004, P.L. 108-357), or has ever
“participated” in a “reportable transaction” within the meaning of Treasury Regulation Section
1.6011-4. No Company is a party to any tax sharing or similar agreement.

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     Section 3.14 No Material Misstatements. No information, report, financial statement, certificate (including the Perfection Certificate),
Borrowing Request, LC Request, exhibit or schedule furnished by or on behalf of any Company to the
Administrative Agent or any Lender in connection with the negotiation of any Loan Document or
included therein or delivered pursuant thereto (including the Confidential Information Memorandum),
taken as a whole, contained or contains any material misstatement of fact or omitted or omits to
state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were or are made, not misleading as of the date such information is dated or
certified; provided that to the extent any such information, report, financial statement, exhibit
or schedule was based upon or constitutes a forecast or projection, each Loan Party represents and
warrants only that on the date of delivery thereof such forecast or projection was prepared in good
faith based upon (i) the assumptions stated therein (which assumptions are believed by the Loan
Parties on the date delivered to the Administrative Agent or a Lender to be reasonable), (ii)
accounting principles consistent with the historical audited financial statements of Borrower, and
(iii) the best information reasonably available to, or in the possession or control of, the Loan
Parties as of the date of delivery thereof to the Administrative Agent or a Lender.

     Section 3.15 Labor Matters. There are no strikes, lockouts or slowdowns against any Company pending or, to the knowledge of
the Loan Parties, threatened that have resulted in, or could reasonably be expected to result in, a
Material Adverse Effect. The hours worked by and payments made to employees of any Company have
not been in violation of the Fair Labor Standards Act of 1938, as amended, or any other applicable
Legal Requirement dealing with such matters in any manner that has resulted in, or could reasonably
be expected to result in, a Material Adverse Effect. All payments due from any Company, or for
which any claim may be made against any Company, on account of wages and employee health and
welfare insurance and other benefits, have been paid or accrued as a liability on the books of such
Company except to the extent that the failure to do so has not resulted in, and could not
reasonably be expected to result in, a Material Adverse Effect. The consummation of the
Transactions and Restatement Transactions will not give rise to any right of termination or right
of renegotiation on the part of any union under any collective bargaining agreement to which any
Company is bound.

     Section 3.16 Solvency. Both immediately before and immediately after the consummation of the Restatement Transactions
to occur on the Restatement Date and immediately following the making of each Credit Extension and
after giving effect to the application of the proceeds of each Credit Extension, (a) the fair value
of the properties of each Loan Party will exceed its debts and liabilities, subordinated,
contingent or otherwise, (b) the present fair saleable value of the property of each Loan Party
will be greater than the amount that will be required to pay the probable liability of its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured, (c) each Loan Party generally will be able to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute
and matured, and (d) each Loan Party will not have unreasonably small capital with which to conduct
its business in which it is engaged as such business is now conducted and is proposed, contemplated
or about to be conducted following the Restatement Date.

     Section 3.17 Employee Benefit Plans. (a) The Company and each of its ERISA Affiliates are in material compliance with all applicable
Legal Requirements, including all applicable provisions of ERISA and the Code and the regulations
and published interpretations thereunder, with respect to all Employee Benefit Plans. Each
Employee Benefit Plan complies in all material respects, and is operated and maintained in
compliance in all material respects, with all applicable Legal Requirements, including

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all material
applicable provisions of ERISA and the Code and the regulations and published interpretations
thereunder. Each Employee Benefit Plan that is intended to qualify under Section 401(a) of the
Code has received a favorable determination from the Internal Revenue Service and nothing has
occurred which would prevent, or cause the loss of, such qualification.

          (b) No ERISA Event has occurred or is reasonably expected to occur. No Pension Plan has any
Unfunded Pension Liability. Within the last six years, no Pension Plan has been terminated,
whether or not in a “standard termination” as that term is used in Section 4041 of ERISA, nor has
any Pension Plan (determined at any time within the last six years) with an Unfunded Pension
Liability been transferred outside of the “controlled group” (within the meaning of Section
4001(a)(14) of ERISA) of any Company or any of their respective ERISA Affiliates. Using actuarial
assumptions and computation methods consistent with subpart I of subtitle E of Title IV of ERISA,
the aggregate liabilities of any Company or any of its ERISA Affiliates to all Multiemployer Plans
in the event of a complete withdrawal therefrom, as of the close of the most recent fiscal year of
each such Multiemployer Plan, have not resulted in, and could not reasonably be expected to result
in, a Material Adverse Effect.

          (c) Except to the extent required under Section 4980B of the Code, no Employee Benefit Plan
provides health or welfare benefits (through the purchase of insurance or otherwise) for any
retired or former employee of any Company or any of its ERISA Affiliates.

     Section 3.18 Environmental Matters. Except as could not reasonably be expected to result in a Material Adverse Effect:

          (i) the Companies and their businesses, operations and Real Property are and have at
all times during the Companies’ ownership or lease thereof been in compliance with, and the
Companies have no liability under, any applicable Environmental Law;

          (ii) the Companies have obtained all Environmental Permits required for the conduct of
their businesses and operations, and the ownership, operation and use of the Real Property,
under all applicable Environmental Laws. The Companies are in compliance with the terms and
conditions of such Environmental Permits, and all such Environmental Permits are valid and
in good standing. No expenditures or operational adjustments are reasonably anticipated to
be required to remain in compliance with the terms and conditions of, or to renew or modify
such Environmental Permits during the next five years;

          (iii) there has been no Release or threatened Release or any handling, management,
generation, treatment, storage or disposal of Hazardous Materials on, at, under or from any
Real Property or facility presently or formerly owned, leased or operated by any of the
Companies or their predecessors in interest that has resulted in, or is reasonably likely to
result in, liability or obligations by any of the Companies under Environmental Law or in an
Environmental Claim;

          (iv) there is no Environmental Claim pending or, to the knowledge of the Loan Parties,
threatened against any of the Companies, or relating to the Real Property currently or
formerly owned, leased or operated by any of the Companies or relating to the operations of
the Companies, and, to the knowledge of the Loan Parties, there are no actions, activities,
circumstances, conditions, events or incidents that are reasonably likely to form the basis
of such an Environmental Claim;

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          (v) no person with an indemnity, contribution or other obligation to any of the
Companies relating to compliance with or liability under Environmental Law is in default
with respect to any such indemnity, contribution or other obligation;

          (vi) no Company is obligated to perform any action or otherwise incur any expense under
Environmental Law pursuant to any Order or agreement by which it is bound or has assumed by
contract or agreement, and no Company is conducting or financing any Response pursuant to
any Environmental Law with respect to any Real Property or any other location;

          (vii) no Real Property or facility owned, operated or leased by the Companies and, to
the knowledge of the Loan Parties, no Real Property or facility formerly owned, operated or
leased by any of the Companies or any of their predecessors in interest is (i) listed or
proposed for listing on the National Priorities List as defined in and promulgated pursuant
to CERCLA or (ii) listed on the Comprehensive Environmental Response, Compensation and
Liability Information System promulgated pursuant to CERCLA or (iii) included on any similar
list maintained by any Governmental Authority that indicates that any Company has or may
have an obligation to undertake investigatory or remediation obligations under applicable
Environmental Laws;

          (viii) no Lien has been recorded or, to the knowledge of any Loan Party, threatened
under any Environmental Law with respect to any Real Property or property of the Companies;

          (ix) the execution, delivery and performance of this Agreement and the other Loan
Documents and the consummation of the Transactions, the Restatement Transactions and the
other transactions contemplated hereby and thereby will not require any
notification, registration, filing, reporting, disclosure, investigation, remediation
or cleanup obligations pursuant to any Governmental Real Property Disclosure Requirements or
any other Environmental Law; and

          (x) the Companies have made available to the Lenders all material records and files in
the possession, custody or control of, or otherwise reasonably available to, the Companies
concerning compliance with or liability or obligation under Environmental Law, including
those concerning the condition of the Real Property or the existence of Hazardous Materials
at Real Property or facilities currently or formerly owned, operated, leased or used by any
of the Companies.

     Section 3.19 Health Care Matters. Without limiting or being limited by any other provision of any Loan Document:

          (a) Health Care Programs and Third-Party Payor Participation. The Company
participates in and has not been excluded from the federal and state health care programs
(individually, a “Program” and collectively, the “Programs”) listed on Schedule 3.19(a). A
list of all of the Companies’ existing (x) Medicare Provider Agreements and numbers and Medicaid
Provider Agreements and numbers, and (y) all other federal and state Program provider agreements
and numbers, excluding TRICARE and CHAMPUS, pertaining to the business of each Company or, if such
contracts do not exist, other documentation evidencing such participation are set forth on
Schedule 3.19(a). The Companies’ existing (x) Medicare Provider Agreements and numbers and
Medicaid Provider Agreements and

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numbers, and (y) all other federal and state Program provider
agreements and numbers, including TRICARE and CHAMPUS shall be referred to herein as “Program
Agreements.” The Companies Reimbursement Approvals include contractual arrangements with
third-party payors including, but not limited to, private insurance, managed care plans and HMOs,
health care providers and employee assistance programs (the “Third-Party Payors”). A list of each
Companies’ existing Reimbursement Approvals with Third-Party Payor(s) that provide for payment of
$500,000 or more in calendar year 2010 pertaining to such Company Subsidiary’s business is set
forth on Schedule 3.19(a) (the “Third-Party Payor Contracts”). The Program Agreements and
Third-Party Payor Contracts constitute legal, valid, binding and enforceable obligations of the
Company that is a party thereto and the other parties thereto (subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless whether considered in a proceeding at equity or
in law) and, to the knowledge of the Company, are in full force and effect. To the knowledge of
the Companies, no Company is in default under any Program Agreement or under any Third-Party Payor
Contract to which it is a party and, to the knowledge of the Company, the other parties thereto are
not in material default thereunder. The Company is in material compliance with the rules and
policies respecting each Program Agreement and Third-Party Payor Contract, including, but not
limited to, all certification, billing, reimbursement and documentation requirements. Except as set
forth on Schedule 3.19(a), no action has been taken by any Governmental Authority or, to
the knowledge of the Company, recommended by any Governmental Authority, either to revoke, withdraw
or suspend any Program Agreement or to terminate or decertify any participation of any Company in
any “Federal Health Care Program” (as that term is defined in 42 U.S.C. § 1320a-7b(f)) in which it
participates (including, but not limited to Medicare, Medicaid, TRICARE and CHAMPUS), nor is there
any decision by the Company not to renew any Program Agreement. To the knowledge of the Companies,
except as could not reasonably be expected to have a Material Adverse Effect, no party to a Program
Agreement or Third-Party Payor Contract or other government regulatory authority has threatened in
writing revocation, suspension, termination, probation, restriction, limitation or nonrenewal
affecting any Program Agreement or Third-Party Payor Contract.

          (b) Health Care Permits. Except as could not reasonably be expected to have a
Material Adverse Effect, each Company holds all Health Care Permits necessary or required by
applicable Legal Requirement or Governmental Authority for the operation of the business of such
Company. Schedule 3.19(b) sets forth all such Health Care Permits held by each Company as
of the Restatement Date (individually, a “Company Health Care Permit,” and collectively, the
“Company Health Care Permits”). Except as could not reasonably be expected to have a Material
Adverse Effect, there are no pending or, to the knowledge of any Loan Party, threatened suits or
proceedings that could reasonably be expected to result in the suspension, revocation, restriction,
amendment or nonrenewal of any Company Health Care Permit, and no event which (whether with notice
or lapse of time or both) could reasonably be expected to result in a suspension, revocation,
restriction, amendment or nonrenewal of any Company Health Care Permit has occurred. Except as
could not reasonably be expected to have a Material Adverse Effect, each Company is in compliance
with the terms of the Company Health Care Permits.

          (c) Accreditations. Except as could not reasonably be expected to have a Material
Adverse Effect, each Company holds all Accreditations necessary or required by applicable Legal
Requirements or Governmental Authority for the operation of the business of such Company (including
accreditation by the appropriate Governmental Authorities and industry accreditation agencies and
accreditation and certifications necessary to receive payment and compensation and to participate
under Medicare, Medicaid, TRICARE/CHAMPUS, Blue Cross/Blue Shield and other payor programs

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relevant
to any Company) (individually, a “Company Accreditation,” and collectively, the “Company
Accreditations”). There are no pending or, to the knowledge of any Loan Party, threatened suits or
proceedings that could reasonably be expected to result in the suspension, revocation, restriction,
amendment or nonrenewal of any Company Accreditations, and no event which (whether with notice or
lapse of time or both) could reasonably be expected to result in a suspension, revocation,
restriction, amendment or nonrenewal of any Company Accreditation has occurred. Except as could
not reasonably be expected to have a Material Adverse Effect, each Company is in compliance with
the terms of the Company Accreditations.

          (d) Reimbursement Approvals. Except as could not be expected to have a Material
Adverse Effect, each Company holds all Reimbursement Approvals necessary or required by applicable
law or Governmental Authority for the operation of the business of such Company (individually, a
“Company Reimbursement Approval,” and collectively, the “Company Reimbursement Approvals”).
Reimbursement Approvals include, but are not limited to, those items listed on Schedule
3.19(a). Except as could not reasonably be expected to have a Material Adverse Effect, there
are no pending or, to the knowledge of any Loan Party, threatened suits or proceedings that could
reasonably be expected to result in the suspension, revocation, restriction, amendment or
nonrenewal of any Company Reimbursement Approvals, and no event which (whether with notice or lapse
of time or both) could reasonably be expected to result in a suspension, revocation, restriction,
amendment or nonrenewal of any Company Reimbursement Approval has occurred. Except as could not
reasonably be expected to have a Material Adverse Effect, each Company is in compliance with the
terms of the Company Reimbursement Approvals.

          (e) Regulatory Filings. Since December 31, 2009, each Company has timely filed, or
caused to be filed, all material regulatory reports, schedules, statements, documents, filings,
submissions, forms, registrations and other documents, together with any amendments required
to be made with respect thereto, that each was required to file with any Governmental Authority or
pursuant to any Company Health Care Permit, Company Accreditation or Company Reimbursement Approval
or other applicable Legal Requirement, including health, pharmacy, laboratory, drug enforcement,
Medicaid and Medicare regulatory authorities (“Company Regulatory Filings”), and has timely paid
all amounts, Taxes, fees and assessments due and payable in connection therewith, except where the
failure to make such filings or payments on a timely basis could not reasonably be expected to have
a Material Adverse Effect. All such Company Regulatory Filings complied in all material respects
with applicable Legal Requirements.

          (f) Surveys, Audits and Investigations. Schedule 3.19(f) sets forth a list of
all notices received during the fiscal year ended December 31, 2010, of material noncompliance,
requests for material remedial action, investigations, return of overpayment or imposition of fines
(whether ultimately paid or otherwise resolved) by any Governmental Authority or pursuant to any
Company Health Care Permit, Company Accreditation or Company Reimbursement Approval (the “Health
Care Audits”), other than ordinary course overpayments and/or notices advising of routine payor
audits. For purposes this Section 3.19(f), a routine payor audit is considered to be an
audit that requests records for identified patients during a limited period of time, but does not
include an audit that identifies any specific area of review. Each Company has prepared and
submitted timely all corrective action plans or responses required to be prepared and submitted in
response to any Health Care Audits and has implemented all of the corrective actions described in
such corrective action plans, except where the failure to do so would not reasonably be expected to
have a Material Adverse Effect. No Company has any (A) uncured deficiency that could lead to the
imposition of a remedy or (B) existing accrued and/or

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unpaid indebtedness to any Governmental
Authority or pursuant to any Company Reimbursement Approval, including Medicare or Medicaid,
excepting any that could not reasonably be expected to have a Material Adverse Effect.

          (g) Compliance with Laws. Each Company is in compliance with all Medicare and
Medicaid provisions of the Social Security Act, the anti-kickback provisions of the Social Security
Act, the Stark anti-referral provisions of the Social Security Act, the False Claims Act, the Civil
Monetary Penalty Law of the Social Security Act, the privacy and security provisions of the Health
Insurance Portability and Accountability Act of 1996, and similar federal or state laws or
regulations applicable to services, payments, record keeping, inventory and operations of each
Company (the “Health Care Laws”), except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

          (h) Corporate Integrity Agreement; Exclusion. No Company nor, to the knowledge of the
Loan Parties, any director, officer, manager, member or partner of any Company (in such capacity,
but not otherwise) is party to a corporate integrity agreement, consent order, consent decree,
permanent injunction or other settlement agreement with any Governmental Authority or pursuant to
any Company Health Care Permit, Company Accreditation or Company Reimbursement Approval. No
Company nor, to the knowledge of the Loan Parties, any director, officer, manager, member, partner,
managing employee, or direct or indirect owner of 5% or more of the Equity Interests of any Company
has been excluded from participating in state or federal health care programs, including Medicare
and Medicaid, or debarred from contracting with Governmental Authorities.

          (i) Transaction Documents. The execution and delivery of the Transaction Documents,
and each Company’s performance thereunder (including the performance of the pre- and post- closing
notices and applications as provided in the Transaction Documents) will not (i) result in the
loss of or limitation of any Company Health Care Permits, Company Accreditations or Company
Reimbursement Approvals or (ii) reduce receipt of the ongoing payments or reimbursements pursuant
to the Company Reimbursement Approvals that the Company is receiving as of the date hereof.

          (j) Cash Management. Schedule 3.19(j) sets forth, as of the Restatement Date,
an accurate and complete description of the cash management system maintained by each Company and
into which are deposited receivables generated pursuant to Company Reimbursement Approvals.

     Section 3.20 Insurance. Schedule 3.20 sets forth a description in reasonable detail of all insurance maintained
by each Company as of the Restatement Date. All insurance maintained by the Companies is in full
force and effect, all premiums due have been duly paid, no Company has received notice of violation
or cancellation thereof, the Premises, and the use, occupancy and operation thereof, comply with
all Insurance Requirements, and there exists no default under any Insurance Requirement, in each
case, to the extent that the absence of the foregoing could reasonably be expected to have a
Material Adverse Effect. Each Company has insurance in such amounts and covering such risks and
liabilities as are customary for companies of a similar size engaged in similar businesses in
similar locations.

     Section 3.21 Security Documents. (a) The Security Agreement (as in effect immediately prior to the Restatement Date) was
effective to create, and the Security Agreement as of the Restatement Date is effective to continue
in the same force and effect in favor of the Collateral Agent for the benefit of the Secured
Parties, legal, valid and enforceable Liens on, and security interests in, the Security Agreement
Collateral and, when (i) financing statements and other filings in appropriate form

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are filed in
the offices specified on Schedule 7 to the Perfection Certificate and (ii) upon the taking
of possession or control by the Collateral Agent of the Security Agreement Collateral with respect
to which a security interest may be perfected only by possession or control (which possession or
control shall be given to the Collateral Agent to the extent possession or control by the
Collateral Agent is required by each Security Document), the Liens created by the Security
Agreement shall constitute fully perfected Liens on, and security interests in, all right, title
and interest of the grantors thereunder in the Security Agreement Collateral (other than (A) the
Intellectual Property Collateral (as defined in the Security Agreement) and (B) such Security
Agreement Collateral in which a security interest cannot be perfected under the UCC as in effect at
the relevant time in the relevant jurisdiction), in each case subject to no Liens other than
Permitted Liens.

          (b) When (i) the Security Agreement or a short form thereof is filed in the United States
Patent and Trademark Office and the United States Copyright Office, and (ii) financing statements
and other filings in appropriate form are filed in the offices specified on Schedule 7 to
the Perfection Certificate, the Liens created by such Security Agreement shall constitute fully
perfected Liens on, and security interests in, all right, title and interest of the grantors
thereunder in the Intellectual Property Collateral (as defined in such Security Agreement), in each
case subject to no Liens other than Permitted Liens.

          (c) Each Mortgage, if any, upon the execution and delivery thereof, shall be effective to
create, in favor of the Collateral Agent, for its benefit and the benefit of the Secured Parties,
legal, valid and enforceable first priority Liens on, and security interests in, all of the Loan
Parties’ right, title and interest in and to the Mortgaged Properties thereunder and the proceeds
thereof, subject only to Permitted Liens, and when the Mortgages are filed or recorded in
accordance with the provisions of Sections 5.11 and 5.12 when such Mortgage is filed or recorded in the offices
specified in the local counsel opinion delivered with respect thereto in accordance with the
provisions of Sections 5.11 and 5.12, the Mortgages shall constitute fully
perfected first priority Liens on, and security interests in, all right, title and interest of the
Loan Parties in the Mortgaged Properties and the proceeds thereof, in each case prior and superior
in right to any other person, other than Permitted Liens.

          (d) Each Security Document delivered pursuant to Sections 5.11 and 5.12 will,
upon execution and delivery thereof, be effective to create in favor of the Collateral Agent, for
the benefit of the Secured Parties, legal, valid and enforceable Liens on, and security interests
in, all of the Loan Parties’ right, title and interest in and to the Collateral thereunder, and (i)
when all appropriate filings or recordings are made in the appropriate offices as may be required
under applicable Legal Requirements and (ii) upon the taking of possession or control by the
Collateral Agent of such Collateral with respect to which a security interest may be perfected only
by possession or control (which such possession or control shall be given to the Collateral Agent
to the extent required by any Security Document), the Liens in favor of the Collateral Agent
created under such Security Document will constitute valid, enforceable and fully perfected first
priority Liens on, and security interests in, all right, title and interest of the Loan Parties in
such Collateral, in each case subject to no Liens other than Permitted Liens.

     Section 3.22 Acquisition Documents; Representations and Warranties in Acquisition
Agreement. Schedule 3.22 lists (i) each exhibit, schedule, annex or other attachment to the
Acquisition Agreement and (ii) each agreement, certificate, instrument, letter or other document
contemplated by the Acquisition Agreement or any item referred to in clause (i) to be entered into,
executed or delivered or to become effective in connection with the Acquisition or otherwise
entered into, executed or delivered in connection with the Acquisition. The Lenders have been
furnished true and complete

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copies of each Acquisition Document to the extent executed and
delivered on or prior to the Restatement Date.

     Section 3.23 Anti-Terrorism Law. (a) No Company and, to the knowledge of the Loan Parties, none of its Affiliates is in
violation of any Legal Requirements relating to terrorism or money laundering (“Anti-Terrorism
Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001
(the “Executive Order”), and the USA PATRIOT Improvement and Reauthorization Act, Public Law
109-177 (March 9, 2006), as amended (the “Patriot Act”).

          (b) No Company and to the knowledge of the Loan Parties, no Affiliate or broker or other agent
of any Loan Party acting or benefiting in any capacity in connection with the Credit Extensions is
any of the following:

          (i) a person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order;

          (ii) a person owned or controlled by, or acting for or on behalf of, any person that is
listed in the annex to, or is otherwise subject to the provisions of, the Executive Order;

          (iii) a person with which any Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law;

          (iv) a person that commits, threatens or conspires to commit or supports “terrorism” as
defined in the Executive Order; or

          (v) a person that is named as a “specially designated national and blocked person” on
the most current list published by the U.S. Treasury Department Office of Foreign Assets
Control (“OFAC”) at its official website or any replacement website or other replacement
official publication of such list.

          (c) No Company and, to the knowledge of the Loan Parties, no broker or other agent of any
Company acting in any capacity in connection with the Loans (i) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the benefit of any
person described in paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to the Executive Order, or
(iii) engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law.

     Section 3.24 Borrowing Base Matters. (a) All Receivable Information, information provided in the application for the program
effectuated by the Collateral Management Agreement, and each other document, report and
Transmission (as defined in the Collateral Management Agreement) provided by Loan Party to the
Collateral Manager is or shall be accurate in all material respects as of its date and as of the
date so furnished, and no such document contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were made and when taken as a
whole, not misleading.

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          (b) Each Receivable identified in each Borrowing Base Certificate is, as of the date of such
Borrowing Base Certificate, an Eligible Receivable and all Inventory identified in each Borrowing
Base Certificate is, as the date of such Borrowing Base Certificate, Eligible Inventory.

          (c) All required Notices to Obligors (as defined in the Collateral Management Agreement) have
been prepared and delivered to each Obligor, and all invoices now bear only the appropriate
remittance instructions for payment direction to the applicable Lockbox or Lockbox Account, as the
case may be.

          (d) The Lockboxes are the only post office boxes and the Lockbox Accounts are the only lockbox
accounts maintained for Receivables; and no direction of any Loan Party is in effect directing
Obligors to remit payments on Receivables other than to the Lockboxes or Lockbox Accounts.

          (e) None of the Eligible Receivables constitutes or has constituted an obligation of any
Person which is an Affiliate of Borrower.

          (f) The Obligor of each Eligible Receivable has not been the Obligor of any Defaulted
Receivables in the past 12 months (other than, for the purpose of this clause, as a result of good
faith disputes).

          (g) Each Receivable that is an Unbilled Receivable will be, or has been, billed to the Obligor
of such Receivable within 30 days of the Last Service Date, or in the case of a Rebate Receivable,
will be, or has been, billed to the Obligor of the Rebate Receivable within 60 days after the
end of the fiscal quarter in which such Rebate Receivable became due and payable.

ARTICLE IV

CONDITIONS TO CREDIT EXTENSIONS

     Section 4.01 Conditions to Restatement Date. The obligation of each Lender and each Issuing Bank to make any Credit Extension on and after
the Restatement Date shall be subject to the satisfaction of the Administrative Agent of each of
the conditions precedent set forth below.

          (a) Loan Documents. All legal matters incident to this Agreement, as amended and
restated, the Credit Extensions hereunder, the Restatement Documents and the other Loan Documents
shall be satisfactory to the Lenders, to the Issuing Bank and to the Administrative Agent and the
Administrative Agent shall have received an executed counterpart of each of the Loan Documents and
the Perfection Certificate.

          (b) Assignment of Loans. Each Assigning Lender shall have executed and delivered the
Assignment and Acceptance documentation assigning their interests in the Loans to HF-4.

          (c) Repayment of Term Loans. (i) The Term Loans of the Term Loan Non-Assigning
Lenders shall have been and (ii) the Term Loans assigned to HF-4 by the Assigning Lenders shall be
concurrently with the entering into of this Agreement, paid in full and all Term Loan Commitments
shall have been terminated.

          (d) Agency Succession. All matters contemplated by the successor agency agreement
dated as of the Restatement Date, among the Administrative Agent, Jefferies, the Loan Parties and
the Required Lenders under the Existing Credit Agreement shall have completed (or to the

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satisfaction of the Administrative Agent, will be completed as soon as reasonably practicable) and
the Collateral Account (as defined in the Existing Agreement) shall have been closed and all
proceeds therein delivered to the Collection Account.

          (e) Corporate Documents. The Administrative Agent shall have received:

               (i) a certificate of the secretary or assistant secretary of each Loan Party dated the
Restatement Date, certifying (A) that attached thereto is a true and complete copy of each
Organizational Document of such Loan Party certified (to the extent applicable) as of a
recent date by the Secretary of State of the state of its incorporation or organization, as
the case may be, (B) that attached thereto is a true and complete copy of resolutions duly
adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents and Restatement Documents to which such person is a party
and, in the case of Borrower, the Credit Extensions hereunder, and that such resolutions
have not been modified, rescinded or amended and are in full force and effect and (C) as to
the incumbency and specimen signature of each officer executing any Loan Document,
Restatement Document or any other document delivered in connection herewith on behalf of
such Loan Party (together with a certificate of another officer as to the incumbency and
specimen signature of the secretary or assistant secretary executing the certificate in this
clause (i));

               (ii) a certificate as to the good standing of each Loan Party (in so-called “long-form”
if available) as of a recent date, from such Secretary of State; and

               (iii) such other corporate and related documents as the Lenders, the Issuing Bank or
the Administrative Agent may reasonably request.

          (f) Officers’ Certificate. The Administrative Agent shall have received a
certificate, dated the Restatement Date and signed by a Responsible Officer of Borrower (or other
senior officer acceptable to the Administrative Agent), confirming compliance with the conditions
precedent set forth in this Section 4.01 and Sections 4.02(b), (c) and (d).

          (g) Financings and Other Transactions, Etc. (i) Each of the Restatement Documents and
other Transaction Documents (to the extent applicable on the Restatement Date) shall have been duly
executed and delivered by Borrower and each Subsidiary party thereto and be in form and substance
satisfactory to the Administrative Agent, and shall be in full force and effect on the Restatement
Date.

          (h) Financial Statements; Financial Performance; Borrowing Base.

          (i) Borrower shall have delivered the Projections to the Lenders in accordance with
Section 3.04(c).

          (ii) Borrower shall have delivered to the Administrative Agent and the Collateral
Manager a Borrowing Base Certificate which shall have been prepared (and calculated) as of
the Restatement Date.

          (i) Compliance with Securities Laws. Borrower shall have complied with all applicable
laws and regulations (including the proxy rules under federal securities laws) in connection with
obtaining all consents and approvals from the stockholders of Borrower required under applicable

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securities laws and the Organizational Documents of Borrower, including all requirements with
respect to the provision of a proxy statement to stockholders of Borrower.

          (j) Opinions of Counsel. The Administrative Agent shall have received, on behalf of
itself, the other Agents, the Arranger, the Lenders and the Issuing Bank, a favorable written
opinion of (i) King & Spalding LLP, special counsel for the Loan Parties, and (ii) each local
counsel listed on Schedule 4.01(j), in each case (A) dated the Restatement Date, (B) addressed to
the Agents, the Issuing Bank and the Lenders and (C) covering such matters relating to the Loan
Documents and the Transactions and Restatement Transactions as the Administrative Agent shall
reasonably request (provided, that such local counsel opinions may delivered on a post-Restatement
Date basis as provided for in Section 5.20 and on Schedule 5.20), and (iv) a copy of each legal
opinion delivered under the other Transaction Documents, accompanied by reliance letters from the
party delivering such opinion authorizing the Agents, Lenders and the Issuing Bank to rely thereon
as if such opinion were addressed to them.

          (k) Legal Requirements. The Administrative Agent shall be satisfied that each
Company, and the Transactions and Restatement Transactions shall be in full compliance with all
material Legal Requirements, including Regulations T, U and X of the Board, and shall have received
satisfactory evidence of such compliance reasonably requested by it.

          (l) Consents and Approvals. The Administrative Agent shall be satisfied that all
necessary governmental, regulatory, shareholder and material third party approvals and consents
necessary in connection with the Transactions and Restatement Transactions shall have been obtained
and shall be in full force and effect, and all applicable waiting periods shall have expired
without any action being taken by any applicable authority that could reasonably be expected to
restrain or prevent any of the Transactions and Restatement Transactions.

          (m) Litigation. There shall not exist any claim, action, suit, investigation,
litigation or proceeding pending or threatened in writing before any court or any Governmental
Authority, domestic or foreign, that (i) seeks to restrain or prevent the effectuation of the
transactions contemplated in connection with the amendment and restatement of this Agreement, or
(ii) could reasonably be expected to have a Material Adverse Effect; provided, that the current
Minnesota U.S. Attorney’s Office investigation shall not be deemed to be materially adverse for the
purpose of this clause (m).

          (n) Fees. The Arranger, the Collateral Manager and Administrative Agent shall have
received all Fees and other amounts due and payable on or prior to the Closing Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including the legal
fees and expenses of Kaye Scholer LLP, special counsel to the Administrative Agent, and the fees
and expenses of any local counsel, foreign counsel, appraisers, consultants and other advisors)
required to be reimbursed or paid by the Loan Parties hereunder or under any other Loan Document.

          (o) Personal Property Requirements. The Collateral Agent shall have received:

          (i) the Intercompany Note executed by and among the Companies, accompanied by an
endorsement to the Intercompany Note (undated and endorsed in blank) in the form attached
hereto, and endorsed by each of the Loan Parties;

          (ii) all other certificates, agreements, including amendments, or amendments and
restatements to Depositary Agreements and control agreements, or instruments necessary to
perfect the Collateral Agent’s security interest in all Chattel Paper, all

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Instruments, all
Lockbox Accounts and Deposit Accounts identified in Schedule 16 to the Perfection
Certificate and all Investment Property of each Loan Party (as each such term is defined in,
and to the extent required by, the Security Agreement);

          (iii) amendments to UCC financing statements indicating the name and address of the
Administrative Agent, as agent for the Secured Parties, as “Secured Party” thereunder in
appropriate form for filing under the UCC, amendments to filings with the United States
Patent and Trademark Office and United States Copyright Office and such other documents
under applicable Legal Requirements in each jurisdiction as may be necessary or appropriate
or, in the reasonable opinion of the Collateral Agent, desirable to perfect the Liens
created, or purported to be created, by the Security Documents;

          (iv) certified copies, each as of a recent date, of (w) the UCC searches required to be
attached as Schedule 5 to the Perfection Certificate, (x) United States Patent and
Trademark Office and United States Copyright Office searches (provided, that such searches
may delivered on a post-Restatement Date basis as provided for in Section 5.20 and on
Schedule 5.20), (y) tax and judgment lien searches, bankruptcy and pending lawsuit searches
or equivalent reports or searches listing all effective lien notices or comparable documents
that name any Company as debtor and that are filed in the state and county jurisdictions in
which
any Company is organized or maintains its principal place of business, and (z) such
other searches (if any) that the Collateral Agent reasonably deems necessary or appropriate;

          (v) with respect to each Key Location existing on the Restatement Date, a Landlord
Access Agreement or Bailee Letter, as applicable, copies of any notices (and if required,
consents) if necessary or appropriate to be delivered in connection with the Restatement
Transactions, including information regarding the name and address of the new Administrative
Agent;

          (vi) a copy of the notice of change of address for notices under Section 9.01 of the
ABDC Intercreditor Agreement; and

          (vii) evidence reasonably acceptable to the Collateral Agent of payment or arrangements
for payment by the Loan Parties of all applicable filing or recording taxes, fees, charges,
costs and expenses required for the filing or recording of the Security Documents.

          (p) Insurance. The Administrative Agent shall have received a copy of, or a
certificate as to coverage under, the insurance policies required by Section 5.04 and the
applicable provisions of the Security Documents, each of which shall be addressed or otherwise
amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as
applicable) and shall name the Collateral Agent, on behalf of the Secured Parties, as additional
insured, in form and substance reasonably satisfactory to the Administrative Agent and the
Collateral Agent.

          (q) Bank Regulatory Documentation. The Administrative Agent and the Lenders shall
have received at least two Business Days before the Restatement Date, in form and substance
satisfactory to them, all documentation and other information required by bank regulatory
authorities or reasonably requested by the Administrative Agent or any Lender under or in respect
of applicable Anti-Terrorism Laws or “know-your-customer” Legal Requirements, including the
Executive Order.

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          (r) Performance of Obligations. All costs, fees, expenses (including reasonable legal
fees and expenses, title premiums, survey charges and recording taxes and fees) and other
compensation and amounts contemplated by the Commitment Letter, the Fee Letter or otherwise payable
to the Administrative Agent, its affiliates, or the Lenders or any of their respective affiliates,
shall have been paid to the extent due and invoiced. The Loan Parties shall have complied with all
of their covenants, agreements and obligations under the Commitment Letter and the Fee Letter, and
the Commitment Letter and the Fee Letter shall be in full force and effect. Subject to Section 3
of the Commitment Letter, all of the Loan Parties’ representations and warranties in the Commitment
Letter and Fee Letter shall be true and correct on the Restatement Date.

          (s) Absence of Material Adverse Changes. There shall not have been any event,
development, change or circumstance since September 30, 2010, that, either individually or in the
aggregate, has caused or could reasonably be expected to have a Material Adverse Effect.

          (t) Absence of Additional Information. The Administrative Agent and the Lenders shall
not have become aware after December 10, 2010 of any information, circumstance or other matter
(including any matter relating to financial models and underlying assumptions relating to the
Projections) affecting Borrower, Target or their respective subsidiaries, any Transaction or any
other matter contemplated by the Commitment Letter or the Fee Letter (the “New Information”) that
is inconsistent with any information disclosed to the Administrative Agent and the Lenders prior to
the
date of the Commitment Letter (the “Disclosed Information”), which, if such New Information
were to be regarded as a change from the Disclosed Information, could reasonably be expected to be
adverse in any material respect to Borrower and its Subsidiaries, the Target and its Subsidiaries,
or the rights, remedies or interests of the Lenders, taken as a whole, or have a Material Adverse
Effect.

          (u) [Intentionally Omitted].

          (v) [Intentionally Omitted].

     Section 4.02 Conditions to All Credit Extensions. The obligation of each Lender and each Issuing Bank to make any Credit Extension (including the
initial Credit Extension) shall be subject to, and to the satisfaction of, each of the conditions
precedent set forth below.

          (a) Notice. The Administrative Agent (with a copy to the Collateral Manager) shall
have received (x) a Borrowing Request as required by Section 2.03 (or such notice shall
have been deemed given in accordance with Section 2.03) if Loans are being requested or, in
the case of the issuance, amendment, extension or renewal of a Letter of Credit, the Issuing Bank
and the Administrative Agent shall have received a notice requesting the issuance, amendment,
extension or renewal of such Letter of Credit as required by Section 2.18(b) or, in the
case of the Borrowing of a Swingline Loan, the Swingline Lender and the Administrative Agent shall
have received a Borrowing Request as required by Section 2.17(b) and (y) not later than one
Business Day prior to the proposed date of the applicable Credit Extension, a Borrowing Base
Certificate which shall have been prepared (and calculated) as of such date of receipt by the
Administrative Agent (it being understood that each Borrowing Base Certificate shall include such
supporting information as the Administrative Agent or the Collateral Manager may reasonably,
respectively, request from time to time).

          (b) No Default. No Default or Event of Default shall have occurred and be continuing
on such date.

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          (c) Representations and Warranties. Each of the representations and warranties made
by any Loan Party set forth in Article III or in any other Loan Document shall be true and
correct in all material respects (or true and correct in all respects in the case of
representations and warranties qualified by materiality or Material Adverse Effect) on and as of
the date of such Credit Extension with the same effect as though made on and as of such date,
except to the extent such representations and warranties expressly relate to an earlier date (in
which case such representations and warranties shall be true and correct in all material respects
(or true and correct in all respects in the case of representations and warranties qualified by
materiality or Material Adverse Effect) on and as of such earlier date).

          (d) No Legal Bar. No Order of any Governmental Authority shall purport to restrain
(i) any Lender from making any Loans to be made by it or (ii) the Issuing Bank from issuing any
Letters of Credit to be issued by it. No injunction or other restraining Order shall have been
issued, shall be pending or noticed with respect to any action, suit or proceeding seeking to
enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a
result of, the transactions contemplated by this Agreement or the making of Loans or the issuance
of Letters of Credit hereunder.

     Each of the delivery of a Borrowing Request or notice requesting the issuance, amendment,
extension or renewal of a Letter of Credit and the acceptance by Borrower of the proceeds of such
Credit Extension shall constitute a representation and warranty by Borrower and each other Loan
Party that on the date of such Credit Extension (both immediately before and after giving effect to
such Credit Extension and the application of the proceeds thereof) the conditions contained in
Sections 4.02(a)-(c) have been satisfied. Borrower shall provide such information
(including calculations in reasonable detail of the covenants in Section 6.10) as the
Administrative Agent may reasonably request to confirm that the conditions in this Section
4.02 have been satisfied.

ARTICLE V

AFFIRMATIVE COVENANTS

     Each Loan Party warrants, covenants and agrees with the Administrative Agent, the Collateral
Agent, the Issuing Bank and each Lender that so long as this Agreement shall remain in effect and
until the Commitments have been terminated and the principal of and interest and premium (if any)
on each Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have
been paid in full and all Letters of Credit have been canceled or have expired and all amounts
drawn thereunder have been reimbursed in full, each Loan Party will, and will cause each of its
Subsidiaries to:

     Section 5.01 Financial Statements, Reports, etc. Furnish to the Administrative Agent:

          (a) Annual Reports. As soon as available and in any event within 90 days after the
end of each fiscal year, the consolidated balance sheet of Borrower as of the end of such fiscal
year and related consolidated statements of income, cash flows and stockholders’ equity for such
fiscal year, in comparative form with such financial statements as of the end of, and for, the
preceding fiscal year, and notes thereto (including a note with an unaudited consolidating
statement of income separating out Borrower and its Subsidiaries), all prepared in accordance with
GAAP and accompanied by an opinion of Ernst & Young LLP or other independent public accountants of
recognized national standing reasonably satisfactory to the Administrative Agent (which opinion
shall not be qualified as to scope or contain any going concern or other material qualification),
stating that such financial statements fairly present, in all

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material respects, the consolidated
financial condition, results of operations and cash flows of Borrower as of the dates and for the
periods specified in accordance with GAAP;

          (b) Quarterly Reports. As soon as available and in any event within 45 days after the
end of each of the first three fiscal quarters of each fiscal year, the consolidated balance sheet
of Borrower as of the end of such fiscal quarter and related consolidated statements of income and
cash flows for such fiscal quarter and for the then elapsed portion of the fiscal year, in
comparative form with the consolidated statements of income and cash flows for the comparable
periods in the previous fiscal year including a note with a consolidating statement of income
separating out Borrower and its Subsidiaries), all prepared in accordance with GAAP and accompanied
by a certificate of a Financial Officer stating that such financial statements fairly present, in
all material respects, the consolidated financial condition, results of operations and cash flows
of Borrower as of the date and for the periods specified in accordance with GAAP consistently
applied, and on a basis consistent with audited financial statements referred to in clause (a) of
this Section 5.01, subject to normal year-end adjustments, including audit adjustments, and
the absence of footnotes;

          (c) Monthly Reports. Within 30 days after the end of each month, the consolidated
balance sheet of Borrower as of the end of such month and the related consolidated statements of
income and cash flows of Borrower for such month and for the then elapsed portion of the fiscal
year, in comparative form with the consolidated statements of income and cash flows for the
comparable periods in the previous fiscal year, accompanied by a certificate of a Financial Officer
stating that such financial statements fairly present, in all material respects, the consolidated
results of operations and cash flows of Borrower as of the date and for the periods specified in
accordance with GAAP consistently applied, subject to normal year-end adjustments, including audit
adjustments, and the absence of footnotes;

          (d) Financial Officer’s Certificate. (i) Concurrently with any delivery of financial
statements under Section 5.01(a), (b) or (c) above, a Compliance
Certificate certifying that no Default has occurred or, if such a Default has occurred, specifying
the nature and extent thereof and any corrective action taken or proposed to be taken with respect
thereto, and (ii) concurrently with any delivery of financial statements under Section
5.01(a) or (b) above, a Compliance Certificate setting forth computations in reasonable
detail satisfactory to the Administrative Agent demonstrating compliance with the covenants
contained in Section 6.10;

          (e) Financial Officer’s Certificate Regarding Collateral. Concurrently with any
delivery of financial statements under Section 5.01(a) above and delivery of a Perfection
Certificate Supplement under Section 5.13(b), a certificate of a Financial Officer
certifying that all UCC financing statements (including fixture filings, as applicable) or other
appropriate filings, recordings or registrations, including all refilings, rerecordings and
reregistrations, containing a sufficient description of the Collateral have been filed of record in
each governmental, municipal or other appropriate office in each jurisdiction necessary to protect,
perfect or maintain the perfection or priority of the Liens under the Security Documents for a
period of not less than 18 months after the date of such certificate (except as noted therein with
respect to any continuation statements to be filed within such period);

          (f) Financial Officer’s Report on Restructuring Costs. Concurrently with any delivery
of financial statements under Section 5.01(a) and (b) relating to any reporting
period for the 2011 fiscal year, a report from a Financial Officer setting forth in detail an
itemized list by category of all Consolidated Permitted Restructuring Costs reflected in such
financial statements, including a

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description of the projected savings and benefits anticipated
therefrom, together with such backup documentation reasonably requested by the Administrative Agent
in connection therewith;

          (g) Public Reports. Promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements, notices and other materials or information filed by
any Company with the Securities and Exchange Commission, or any Governmental Authority succeeding
to any or all of the functions of the Securities and Exchange Commission, or with any national
securities exchange, or distributed to holders of its Indebtedness pursuant to the terms of the
documentation governing such Indebtedness (or any trustee, agent or other representative therefor),
as the case may be; provided, that copies need not be provided of any such reports posted publicly
to the Electronic Data Gathering, Analysis and Retrieval System or any successor reporting system;

          (h) Projections. No later than 60 days after the first day of each fiscal year of
Borrower, updated (through 2016) 3-year projected financial statements, in form reasonably
satisfactory to the Administrative Agent, including profit & loss statements and statements of cash
flow, of Borrower and its Subsidiaries;

          (i) Organization. Within 45 days after the close of each fiscal year of Borrower,
Borrower shall deliver an accurate and complete organization chart showing the ownership structure
of the Companies as of the last day of such fiscal year, or confirm that there are no changes to
Schedule 3.07(c);

          (j) Organizational Documents. (i) Promptly copies of any Organizational Documents
that have been amended or modified in a manner that is, or could reasonably be expected to be,
adverse in any material respects to any Agent or Lender, and (ii) a copy of any notice of default
given or received by any Company under any Organizational Document within 15 days after such
Company gives or receives such notice; and

          (k) Net Cash Proceeds. Promptly and in any event within one Business Day, notice to
the Administrative Agent of receipt of Net Cash Proceeds in excess of $500,000.

          (l) Other Information. Promptly, from time to time, such other information regarding
the operations, business affairs and financial condition of any Company, or compliance with the
terms of any Loan Document, or the environmental condition of any Real Property, as the
Administrative Agent or any Lender may reasonably request.

     Section 5.02 Litigation and Other Notices. Furnish to the Administrative Agent written notice of the following promptly (and, in any event,
within three Business Days following any Responsible Officer’s knowledge thereof):

          (a) any Default or any default or event of default under the Senior Note Documents, in each
case, specifying the nature and extent thereof and the corrective action (if any) taken or proposed
to be taken with respect thereto;

          (b) the filing or commencement of, or any threat or notice of intention of any person to file
or commence, any action, suit, litigation or proceeding, whether at law or in equity or otherwise
by or before any Governmental Authority, (i) against any Company or any Affiliate thereof that
could reasonably be expected to result in a Material Adverse Effect, (ii) with respect to any Loan
Document or (iii) with respect to any of the other Transactions or Restatement Transactions;

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          (c) any development that has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect;

          (d) the occurrence of a Casualty Event in excess of $500,000 (whether or not covered by
insurance);

          (e) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of Borrower and its Subsidiaries
in an aggregate amount exceeding $500,000;

          (f) the receipt by any Company of any notice of any Environmental Claim or violation of or
potential liability under, or knowledge by any Company that there exists a condition that could
reasonably be expected to result in an Environmental Claim or a violation of or liability under,
any Environmental Law, except for Environmental Claims, violations and liabilities the consequence
of
which, in the aggregate, would not be reasonably likely to subject the Companies collectively
to liabilities exceeding $500,000;

          (g) (i) the incurrence of any Lien (other than Permitted Liens) on, or claim asserted against
all or any substantial portion of the Collateral or (ii) the occurrence of any other event which
could reasonably be expected to materially and adversely affect the value of the Collateral;

          (h) the receipt by any Company of any notice of any termination, suspension, revocation,
transfer, surrender, or other material impairment of any material Company Health Care Permit,
material Company Accreditation or material Company Reimbursement Approval; and

          (i) the receipt by any Company of any notice of any Health Care Survey or Health Care Audit
that, alone or together with any other Health Care Survey or Health Care Audit, could reasonably be
expected to result in liability of the Companies in an aggregate amount exceeding $500,000 in any
twelve-month period.

     Section 5.03 Existence; Businesses and Properties. (a) Do or cause to be done all things necessary to preserve, renew and maintain in full force
and effect its legal existence, except as otherwise expressly permitted under Section 6.05
or Section 6.06.

          (b) Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in
full force and effect the rights, licenses, Permits, privileges, franchises, authorizations,
patents, copyrights, trademarks and trade names material to the conduct of its business; maintain
and operate such business in substantially the manner in which it is conducted and operated on the
Restatement Date; comply with all applicable Legal Requirements (including any and all zoning,
building, Environmental Law, ordinance, code or approval or any building permits or any
restrictions of record or agreements affecting the Real Property) and decrees and Orders of any
Governmental Authority, whether now in effect or hereafter enacted, in each case, except where the
failure to comply with such Legal Requirements could not reasonably be expected to result in a
Material Adverse Effect; pay and perform its obligations under all Leases and Transaction Documents
(other than the Loan Documents) except where the failure to perform such obligations could not
reasonably be expected to result in a Material Adverse Effect; pay and perform its obligations
under all Loan Documents; and at all times maintain, preserve and protect all property material to
the conduct of such business and keep such property in good repair, working order and condition
(other than wear and tear occurring in the ordinary course of business) and from time to time make,
or cause to be made, all necessary and proper

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repairs, renewals, additions, improvements and
replacements thereto necessary in order that the business carried on in connection therewith may be
properly conducted at all times; provided that nothing in this Section 5.03(b) shall
prevent (i) dispositions of property, consolidations or mergers by or involving any Company in
accordance with Section 6.05 or Section 6.06, (ii) the withdrawal by any Company of
its qualification as a foreign corporation in any jurisdiction where such withdrawal could not
reasonably be expected to result in a Material Adverse Effect, or (iii) the abandonment by any
Company of any Intellectual Property that such Company reasonably determines is not useful to its
businesses or no longer commercially desirable.

     Section 5.04 Insurance. (a) Keep its insurable property adequately insured at all times by financially sound and
reputable insurers; maintain such other insurance, to such extent and against such risks as is
customary with
companies in the same or similar businesses operating in the same or similar locations, including
insurance with respect to Mortgaged Properties and other properties material to the business of the
Companies against such casualties and contingencies and of such types and in such amounts with such
deductibles as is customary in the case of similar businesses operating in the same or similar
locations, including (i) physical hazard insurance on an “all risk” basis, (ii) commercial general
liability against claims for bodily injury, death or property damage covering any and all insurable
claims, (iii) explosion insurance in respect of any boilers, machinery or similar apparatus
constituting Collateral, (iv) business interruption insurance, (v) worker’s compensation insurance
and such other insurance as may be required by any Legal Requirement and (vi) such other insurance
against risks as the Administrative Agent may from time to time require (such policies to be in
such form and amounts and having such coverage as may be reasonably satisfactory to the
Administrative Agent and the Collateral Agent); provided that with respect to physical hazard
insurance, (x) neither the Collateral Agent nor the applicable Company shall agree to the
adjustment of any claim thereunder without the consent of the other (such consent not to be
unreasonably conditioned, withheld or delayed), and (y) no consent of any Company shall be required
during an Event of Default.

          (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least 15 days after receipt by the
Collateral Agent of written notice thereof, (ii) name the Collateral Agent as mortgagee (in the
case of property insurance) or additional insured on behalf of the Secured Parties (in the case of
liability insurance) or loss payee (in the case of property insurance), as applicable, (iii) if
reasonably requested by the Collateral Agent, include a breach of warranty clause and (iv) be
reasonably satisfactory in all other material respects to the Collateral Agent. Borrower shall not
permit, consent to or seek any amendment or change to any insurance policy that effects a material
reduction in amount or a material change in coverage under such policy without first providing the
Collateral Agent with at least 15 days prior written notice thereof.

          (c) Notify the Administrative Agent and the Collateral Agent immediately whenever any separate
insurance concurrent in form or contributing in the event of loss with that required to be
maintained under this Section 5.04 is taken out by any Company; and promptly (and, in any
event, within three Business Days) deliver to the Administrative Agent and the Collateral Agent a
duplicate original copy of such policy or policies.

          (d) Deliver to the Administrative Agent and the Collateral Agent a report of a reputable
insurance broker with respect to such insurance and such supplemental reports with respect thereto
as the Administrative Agent or the Collateral Agent may from time to time reasonably request,

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but
unless a Default or Event of Default has occurred and is then continuing, not more frequently than
annually.

     Section 5.05 Obligations and Taxes. (a) Pay its Indebtedness and other obligations promptly and in accordance with their terms and
pay and discharge promptly when due all material Taxes, assessments and governmental charges or
levies imposed upon it or upon its income or profits or in respect of its property, before the same
shall become delinquent or in default, as well as all material lawful claims for labor, services,
materials and supplies or otherwise that, if unpaid, might give rise to a Lien other than a
Permitted Lien upon such properties or any part thereof; provided that such payment and discharge
shall not be required with respect to any such Indebtedness, other obligation, Tax, assessment,
charge, levy or claim so long as (i) the validity or
amount thereof shall be contested in good faith by appropriate proceedings timely instituted and
diligently conducted and the applicable Company shall have set aside on its books adequate reserves
or other appropriate provisions with respect thereto in accordance with GAAP, and (ii) such contest
operates to suspend collection of the contested Indebtedness, other obligation, Tax, assessment or
charge and enforcement of a Lien other than a Permitted Lien.

          (b) Timely and correctly file all Tax Returns (other than immaterial Tax Returns, as
reasonably determined by the Administrative Agent) required to be filed by it.

          (c) Borrower does not intend to treat the Loans as being a “reportable transaction” within the
meaning of Treasury Regulation Section 1.6011-4. In the event Borrower determines to take any
action inconsistent with such intention, it will promptly notify the Administrative Agent thereof.

     Section 5.06 Employee Benefits. (a) Comply in all material respects with all applicable Legal Requirements, including the
applicable provisions of ERISA and the Code with respect to all Employee Benefit Plans and (b)
furnish to the Administrative Agent (x) as soon as possible after, and in any event within 5
Business Days after any Responsible Officer of any Company or any ERISA Affiliate of any Company
knows or has reason to know that, any ERISA Event or other event with respect to an Employee
Benefit Plan has occurred that, alone or together with any other ERISA Event could reasonably be
expected to result in liability of the Companies or any of their ERISA Affiliates in an aggregate
amount exceeding $1,000,000 or the imposition of a Lien, a statement of a Responsible Officer of
Borrower setting forth details as to such ERISA Event and the action, if any, that the Companies
propose to take with respect thereto, and (y) upon request by the Administrative Agent, copies of
(i) annual report (Form 5500 Series) filed by any Company or any ERISA Affiliate with the Employee
Benefits Security Administration with respect to each Employee Benefit Plan; (ii) the most recent
actuarial valuation report for each Pension Plan; (iii) all notices received by any Company or any
ERISA Affiliate from a Multiemployer Plan sponsor or any governmental agency concerning an ERISA
Event; and (iv) such other information, documents or governmental reports or filings relating to
any Employee Benefit Plan as the Administrative Agent shall reasonably request.

     Section 5.07 Maintaining Records; Access to Properties and Inspections; Annual
Meetings. (a) Keep proper books of record and account in which full, true and correct entries in
conformity with GAAP and all Legal Requirements are made of all dealings and transactions in
relation to its business and activities. Each Company will permit any representatives designated
by the Administrative Agent or a Lender as often as reasonably requested (except that, in the case
of representatives designated by a Lender, not more frequently than twice in any fiscal year of
Borrower unless a Default or Event of Default has occurred and is then continuing), in each case,
to visit and inspect the financial records and

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the property of such Company at reasonable times
during normal business hours and to make extracts from and copies of such financial records, and
permit any representatives designated by the Administrative Agent or any Lender to discuss the
affairs, finances, accounts and condition of any Company with the officers and employees thereof
and Advisors thereof in the presence of representatives of such Company (unless such
representatives are not then available).

          (b) Within 120 days after the close of each fiscal year of the Companies, at the request of
the Administrative Agent or Required Lenders, hold a meeting (at a mutually agreeable location and
time or, at the option of the Administrative Agent, a conference call) with all Lenders who
choose to attend such meeting or conference call at which meeting or conference call shall be
reviewed the financial results of the previous fiscal year and the financial condition of the
Companies and the budgets presented for the current fiscal year of the Companies.

     Section 5.08 Use of Proceeds. Use the proceeds of the Loans only for the purposes set forth in Section 3.12 and
request the issuance of Letters of Credit only in accordance with the definition of “Standby Letter
of Credit” and “Commercial Letter of Credit.”

     Section 5.09 Compliance with Environmental Laws; Environmental Reports.
(a) Except where the failure to do so could not reasonably be expected to have a Material Adverse
Effect, comply, and cause all lessees and other persons occupying Real Property owned, operated or
leased by any Company to comply, in all material respects, with all Environmental Laws and
Environmental Permits applicable to its operations and the Real Property; obtain and maintain in
full force and effect all material Environmental Permits applicable to its operations and the Real
Property; and conduct all Responses required by any Governmental Authority or under any applicable
Environmental Laws, and in accordance with, the requirements of any Governmental Authority and
applicable Environmental Laws.

          (b) Do or cause to be done all things necessary to prevent any Release of Hazardous Materials
in, on, under, to or from any Real Property owned, leased or operated by any of the Companies or
their predecessors in interest except in full compliance with applicable Environmental Laws or an
Environmental Permit, and ensure that there shall be no Hazardous Materials in, on, under or from
any Real Property owned, leased or operated by any of the Companies except those that are used,
stored, handled and managed in full compliance with applicable Environmental Laws.

          (c) Undertake all actions, including response actions, necessary, at the sole cost and expense
of Borrower, (i) to address any Release of Hazardous Materials at, from or onto any Real Property
owned, leased or operated by any of the Companies or their predecessors in interest as required
pursuant to Environmental Law or the requirements of any Governmental Authority; (ii) to address
any environmental conditions relating to any Company, any Company’s business or to any Real
Property, owned, leased or operated by any of the Companies or their predecessors in interest
pursuant to any reasonable written request of the Administrative Agent and share with the
Administrative Agent all data, information and reports generated or prepared in connection
therewith; (iii) to keep any Real Property owned, leased or operated by any of the Companies free
and clear of all Liens and other encumbrances pursuant to any Environmental Law, whether due to any
act or omission of any Company or any other person; and (iv) to promptly notify the Administrative
Agent in writing of: (1) any Release or threatened Release of Hazardous Materials in, on, under,
at, from or migrating to any Real Property owned, leased or operated by any of the Companies,
except those that are pursuant to and in compliance with the terms and conditions of an
Environmental Permit, (2) any non-compliance with, or

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violation of, any Environmental Law
applicable to any Company, any Company’s business and any Real Property owned, leased or operated
by any of the Companies to the extent that any such noncompliance or violation, individually or in
the aggregate, could reasonably be expected to result in a Material Adverse Effect, (3) any Lien
pursuant to Environmental Law imposed on any Real Property owned, leased or operated by any of the
Companies, (4) any investigation or remediation of any Real
Property owned, leased or operated by any of the Companies required to be undertaken pursuant
to Environmental Law, and (5) any notice or other communication received by any Company from any
person or Governmental Authority relating to any Environmental Claim or liability or potential
liability of any Company pursuant to any Environmental Law.

          (d) Except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect, diligently pursue and use commercially reasonable best efforts to cause any person
with an indemnity, contribution or other obligation to any of the Companies relating to compliance
with or liability under Environmental Law to satisfy such obligations in full and in a timely
manner. To the extent that such person has not fully satisfied or is not diligently undertaking
the necessary actions to achieve satisfaction of such obligations, the Companies shall promptly
undertake all action necessary to achieve full and timely satisfaction of such obligations.

     Section 5.10 Health Care Matters. (a) Compliance with Law and Other Obligations. Without limiting or being limited by
any other provision of any Loan Document: each Company shall (i) comply in all material respects
with all Legal Requirements, including all Health Care Laws; (ii) maintain and comply in all
material respects with all Company Health Care Permits, Company Accreditations and Company
Reimbursement Approvals; (iii) timely file, or cause to be filed, all Company Regulatory Filings in
accordance with all Legal Requirements; (iv) timely pay all amounts, Taxes, fees and assessments,
if any, due and payable in connection with Company Regulatory Filings, except where the failure to
make such filings or payments on a timely basis, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect; and (v) timely submit and implement all
corrective action plans required to be prepared and submitted in response to any Health Care
Audits, except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

          (b) Notices. If any Default has occurred and is then continuing, if requested by the
Administrative Agent, furnish to the Administrative Agent, to the maximum extent permitted by
applicable Legal Requirements, (i) copies of all Company Regulatory Filings; (ii) copies of all
Company Permits, Company Accreditations and Company Reimbursement Approvals, as the same may be
renewed or amended; (iii) copies of all Health Care Surveys or Health Care Audits and
correspondence related thereto and corrective action plans prepared and submitted in response
thereto; and (iv) a report of the status of all recoupments, holdbacks, offsets, vendor holds,
denials and appeals of amounts owed pursuant to any Company Reimbursement Approvals, in each case
outside the ordinary course of business (and ordinary course of business shall be deemed to exclude
recoupments, holdbacks, offsets, denials and vendor holds resulting from, related to or arising out
of allegations of fraud or patterns of practices of contracting, billing or claims submission
inconsistent with Legal Requirements), all subject to any limitations on disclosure included in
applicable law.

     Section 5.11 Additional Collateral; Additional Guarantors. (a) Subject to this Section 5.11, with respect to any property acquired after the
Closing Date by any Loan Party that is intended to be subject to the Lien created by any of the
Security Documents but is not so subject (but, in any event, excluding any Equity Interest of a
Foreign Subsidiary not required to be pledged pursuant to the last sentence of Section
5.11(b)), promptly (and in any event within 30 days after the acquisition thereof)

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(i) execute
and deliver to the Administrative Agent and the Collateral Agent such amendments or supplements to
the relevant Security Documents or such other documents
as the Administrative Agent or the Collateral Agent shall deem necessary or advisable to grant to
the Collateral Agent, for its benefit and for the benefit of the other Secured Parties, a Lien on
such property subject to no Liens other than Permitted Liens, (ii) to the extent requested by the
Administrative Agent or the Collateral Agent, deliver opinions of counsel to Borrower in form and
substance, and from counsel, reasonably acceptable to the Administrative Agent, and (iii) take all
actions necessary to cause such Lien to be duly perfected to the extent required by such Security
Documents in accordance with all applicable Legal Requirements, including the filing of financing
statements in such jurisdictions as may be reasonably requested by the Administrative Agent or the
Collateral Agent. Borrower shall otherwise take such actions and execute and/or deliver to the
Collateral Agent such documents as the Administrative Agent or the Collateral Agent shall require
to confirm the validity, perfection and priority of the Lien of the Security Documents against such
after-acquired properties.

          (b) With respect to any person that is or becomes (A) a guarantor of (or otherwise provides,
direct or indirect, credit support in respect of) the payment and/or performance of all or any
portion of the obligations under or in respect of any or all the Senior Note Documents (a “Note
Guarantor”) or (B) a Subsidiary of a Loan Party after the Closing Date, (y) on the Closing Date or,
as applicable, within 3 Business Days after such person becomes a Note Guarantor or (z) on the
Closing Date or, as applicable, within 30 days after such person becomes a Subsidiary, to (i)
deliver to the Collateral Agent (or its designated bailee or agent) the certificates, if any,
representing all of the Equity Interests of such Subsidiary, together with undated stock powers or
other appropriate instruments of transfer executed and delivered in blank by a duly authorized
Responsible Officer of the holder(s) of such Equity Interests, and all intercompany notes owing
from such Subsidiary to any Loan Party together with instruments of transfer executed and delivered
in blank by a duly authorized Responsible Officer of such Loan Party and (ii) if subsequent to the
Closing Date, cause such new Subsidiary (A) to execute a Joinder Agreement to become a Subsidiary
Guarantor and a Pledgor or, in the case of a Foreign Subsidiary, execute a security document
compatible with the laws of such Foreign Subsidiary’s jurisdiction in form and substance reasonably
satisfactory to the Administrative Agent, and (B) to take all actions necessary or advisable in the
opinion of the Administrative Agent or the Collateral Agent to cause the Lien created by the
applicable Security Document to be duly perfected to the extent required by such Security Document
in accordance with all applicable Legal Requirements, including the filing of financing statements
(or equivalent restrictions) in such jurisdictions as may be reasonably requested by the
Administrative Agent or the Collateral Agent. Notwithstanding the foregoing, (i) no Foreign
Subsidiary shall be required to take the actions specified herein if doing so would constitute an
investment of earnings in United States property under Section 956 (or a successor provision) of
the Code, which investment would or could reasonably be expected to trigger a material increase in
the net income of a United States shareholder of such Subsidiary pursuant to Section 951 (or a
successor provision) of the Code, as reasonably determined by Borrower and (ii) no Loan Party shall
be required to deliver any Equity Interests in any Foreign Subsidiary under clause (i) of the
preceding sentence, except for (A) Voting Stock of any Subsidiary which is a first-tier controlled
foreign corporation (as defined in Section 957(a) of the Code) representing no more than 66% of the
total voting power of all outstanding Voting Stock of such Subsidiary and (B) 100% of the Equity
Interests not constituting Voting Stock of any such Subsidiary. Any such Equity Interests
constituting “stock entitled to vote” within the meaning of Treasury Regulation Section
1.956-2(c)(2) shall be treated as Voting Stock for purposes of this Section 5.11(b).

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          (c) With respect to any person that is or becomes a Subsidiary of a Loan Party after the
Closing Date, promptly (and in any event within 30 days after such person becomes a Subsidiary)
execute and deliver to the Collateral Agent (or its designated bailee or agent) (i) a counterpart
to the
Intercompany Note, (ii) a Joinder Agreement (as defined in the Collateral Management
Agreement) to the Collateral Management Agreement and (iii) if such Subsidiary is a Loan Party, an
endorsement to the Intercompany Note (undated and endorsed in blank) in the form attached thereto,
endorsed by such Subsidiary.

          (d) Promptly grant to the Collateral Agent (and in any event within 45 days of the acquisition
thereof) a security interest in and Mortgage on each Real Property owned in fee by such Loan Party
as is acquired by such Loan Party after the Closing Date and that, together with any improvements
thereon, individually has a Fair Market Value of at least $2,500,000, as additional security for
the Obligations (unless the subject property is already mortgaged to a third party to the extent
permitted by Section 6.02). Such Mortgages shall be granted pursuant to documentation
reasonably satisfactory in form and substance to the Administrative Agent and the Collateral Agent
and shall constitute valid and enforceable perfected first priority Liens subject only to Permitted
Liens. Such Loan Party shall promptly deliver to the Collateral Agent (and in any event within 30
days) a Landlord Access Agreement or Bailee Letter, as applicable, with respect to each leased Real
Property constituting a Key Location (unless the applicable Loan Party shall have used all
commercially reasonable efforts to obtain, but failed to obtain, such Landlord Access Agreements or
Bailee Letter, as applicable). The Mortgages or instruments related thereto shall be duly recorded
or filed in such manner and in such places as are required by applicable Legal Requirements to
establish, perfect, preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Mortgages and all taxes, fees and other charges payable in connection
therewith shall be paid in full. Such Loan Party shall otherwise take such actions and execute
and/or deliver to the Collateral Agent such documents as the Administrative Agent or the Collateral
Agent shall require to confirm the validity, enforceability, perfection and priority of the Lien of
any existing Mortgage or new Mortgage against such after-acquired Real Property (including a Title
Policy, a Survey and local counsel opinion (in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent) in respect of such Mortgage) and shall take such
actions relating to insurance with respect to such after-acquired Real Property and execute and/or
delivery to the Collateral Agent such insurance certificates and other documentation (including
with respect to title and flood insurance), in each case in form and substance reasonably
satisfactory to the Administrative Agent and Collateral Agent, as the Collateral Agent shall
reasonably request.

     Section 5.12 Security Interests; Further Assurances. (a) Promptly, upon the reasonable request of the Administrative Agent, the Collateral Agent or
any Lender, at Borrower’s expense, execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, and thereafter register, file or record, or cause to be registered,
filed or recorded, in an appropriate governmental office, any document or instrument supplemental
to or confirmatory of the Security Documents or otherwise deemed by the Administrative Agent or the
Collateral Agent reasonably necessary or desirable for the continued validity, enforceability,
perfection and priority of the Liens on the Collateral covered thereby subject to no other Liens
except Permitted Liens, or obtain any consents or waivers as may be necessary or appropriate in
connection therewith.

          (b) Deliver or cause to be delivered to the Administrative Agent and the Collateral Agent from
time to time such other documentation, consents, authorizations, approvals and Orders in form and
substance reasonably satisfactory to the Administrative Agent and the Collateral Agent as the
Administrative Agent and the Collateral Agent shall reasonably deem necessary or advisable to
perfect

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or maintain the validity, enforceability, perfection and priority of the Liens on the
Collateral pursuant to the Security Documents.

          (c) Upon the exercise by the Administrative Agent, the Collateral Agent or any Lender of any
power, right, privilege or remedy pursuant to any Loan Document which requires any consent,
approval, registration, qualification or authorization of any Governmental Authority, execute and
deliver all applications, certifications, instruments and other documents and papers that the
Administrative Agent, the Collateral Agent or such Lender may require.

          (d) If the Administrative Agent, the Collateral Agent or the Required Lenders determine that
they are required by any Legal Requirements to have appraisals prepared in respect of the Real
Property of any Loan Party constituting Collateral, Borrower shall provide to the Administrative
Agent appraisals that satisfy the applicable requirements of the Real Estate Appraisal Reform
Amendments of FIRREA and are otherwise in form and substance satisfactory to the Administrative
Agent and the Collateral Agent.

          (e) In furtherance of the foregoing in this Section 5.12 and Section 5.11, to
the maximum extent permitted by applicable Legal Requirements, each Loan Party (A) authorizes each
of the Collateral Agent and/or the Administrative Agent to execute any such documentation,
consents, authorizations, approvals, Orders, applications, certifications, instruments and other
documents and papers in such Loan Party’s name and to file such agreements, instruments or other
documents in any appropriate filing office, (B) authorizes each of the Collateral Agent and/or the
Administrative Agent to file any financing statement (and/or equivalent foreign registration)
required hereunder or under any other Loan Document, and any continuation statement or amendment
(and/or equivalent foreign registration) with respect thereto, in any appropriate filing office
without the signature of such Loan Party, and (C) ratifies the filing of any financing statement
(and/or equivalent foreign registration), and any continuation statement or amendment with respect
thereto (and/or equivalent foreign registration), filed without the signature of such Loan Party
prior to the date hereof.

          (f) Borrower agrees to cooperate in good faith and utilize reasonable commercial efforts in
considering amendments or modifications of this Agreement and the Loan Documents proposed by the
Administrative Agent in its good faith judgment as being necessary to achieve a successful
syndication or to arrange for the execution of an Issuing Bank of this Agreement; provided such
amendments or modifications are no less favorable in any material economic term and are proposed
within 90 days of the Restatement Date.

     Section 5.13 Information Regarding Collateral. (a) Not effect any change, (i) in any Loan Party’s legal name, (ii) in the location of any Loan
Party’s chief executive office, (iii) in any Loan Party’s organizational structure, (iv) in any
Loan Party’s Federal Taxpayer Identification Number or organizational identification number, if any
(except as may be required by applicable Legal Requirements, in which case, Borrower shall promptly
notify the Administrative Agent of such change), or (v) in any Loan Party’s jurisdiction of
organization (in each case, including by merging with or into any other entity, reorganizing,
dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until (A) it shall
have given the Collateral Agent and the Administrative Agent not less than 30 days’ prior written
notice (in the form of an Officers’ Certificate) of its intention so to do, clearly describing such
change and providing such other information in connection therewith as the Collateral Agent or the
Administrative Agent may reasonably request and (B) it shall have taken all action reasonably
satisfactory to the Collateral Agent to maintain the validity, enforceability, perfection and
priority of the

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security interest of the Collateral Agent for the benefit of the Secured Parties in
the Collateral, if applicable. Each Loan Party shall promptly provide the Collateral
Agent with certified Organizational Documents reflecting any of the changes described in the
preceding sentence. Each Loan Party shall promptly notify the Collateral Agent of any change in
the location of any office in which it maintains books or records relating to Collateral owned by
it or any office or facility at which Collateral is located (including the establishment of any
such new office or facility), other than changes in location to a Mortgaged Property or a leased
property subject to a Landlord Access Agreement.

          (b) Concurrently with the delivery of financial statements pursuant to Section
5.01(a), deliver to the Administrative Agent and the Collateral Agent a Perfection Certificate
Supplement.

     Section 5.14 Maintenance of Corporate Separateness. Satisfy in all material respects, customary corporate, limited liability company or other like
formalities, including the maintenance of organizational and business records. No Company shall
take any action, or conduct its affairs in a manner, that is reasonably likely to result in the
organizational existence of such Company, or any other Company, being ignored.

     Section 5.15 Borrowing Base Matters. (a) Offices, Records and Books of Account. Keep each of the Loan Party’s principal
place of business and chief executive office and the office where it keeps its records concerning
the Receivables, Inventory and the Collateral at the address set forth in Section 11.01 or,
upon 30 days’ prior notice to the Collateral Manager (with a copy to the Administrative Agent), at
any other locations in jurisdictions where all actions reasonably requested by the Collateral
Manager or otherwise necessary to protect, perfect and maintain the Collateral Agent’s interest in
the Collateral (including the Receivables and Inventory) and all proceeds thereof have been taken
and completed. Each of the Loan Parties shall keep its books and accounts in accordance with GAAP
and shall not make any notation on its books and records, including any computer files, that is
inconsistent with the collateral assignment of the Receivables and Inventory to the Collateral
Agent. The Loan Parties shall maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Receivables, Inventory
and related contracts in the event of the destruction of the originals thereof), and keep and
maintain all documents, books, records and other information reasonably necessary or advisable for
collecting all Receivables and Inventory (including, without limitation, records adequate to permit
the daily identification of each Receivable and element of Inventory and all Collections of and
adjustments to each existing Receivable and element of Inventory) and for providing the Receivable
Information.

          (b) Performance and Compliance With Contracts and Credit and Collection Policy.
Timely and fully perform and comply, at each of the Loan Party’s expense, with all material
provisions, covenants and other promises required to be observed by it under the contracts and
other documents related to the Receivables, Inventory and other Collateral, and timely and fully
comply in all material respects with the Credit and Collection Policy in regard to each
Receivables, Inventory and the related contract, and it shall maintain, at its expense, in full
operation each of the Lockbox Accounts and Lockboxes. In addition, each of the Loan Parties shall
do nothing, nor suffer or permit any other person, to impede or interfere with the collection by
the Collateral Agent or the Collateral Manager of the Receivables and Inventory.

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          (c) Extension or Amendment of Receivables. Not amend, waive or otherwise permit
or agree to any material deviation from the terms or conditions of any Receivable except in
accordance with the Credit and Collection Policy.

          (d) Change in Business or Credit and Collection Policy. Not make any change in the
Credit and Collection Policy or make any change in the character of its business that, in either
event, could reasonably be expected to result in a Material Adverse Effect, and it will not make
any other material changes in the Credit and Collection Policy without the prior written consent of
the Collateral Manager; provided, however, that if an Event of Default has occurred and is
continuing, it will not make any material change in the Credit and Collection Policy.

          (e) Audits and Visits. Each Loan Party will, at any time and from time to time during
regular business hours as requested by the Collateral Manager, permit the Collateral Manager, or
its agents or representatives, upon reasonable notice and without interfering with the Loan Party’s
businesses or operations and subject to compliance with applicable law in the case of review of
plan participant/patient/customer information, or its agents or representatives, (i) on a
confidential basis, to examine and make copies of and abstracts from all books, records and
documents (including, without limitation, computer tapes and disks) in its possession or under its
control relating to Receivables and Inventory including, without limitation, the related contracts,
and (ii) to visit its offices and properties for the purpose of examining and auditing such
materials described in clause (i) above, and to discuss matters relating to Receivables and
Inventory or its performance hereunder or under the contracts with any of its officers or employees
having knowledge of such matters. Each Loan Party shall permit the Collateral Manager to have at
least one agent or representative physically present in its administrative office during normal
business hours to assist it in performing its obligations under the Collateral Management
Agreement, including its obligations with respect to the collection of Receivables and Inventory
pursuant to the Collateral Management Agreement. Notwithstanding the foregoing, and provided that
no Default or Event of Default shall have occurred and be continuing, all visits and examinations
shall be scheduled at times mutually convenient to the Collateral Manager and the applicable Loan
Party.

          (f) Change in Payment Instructions. None of the Loan Parties will terminate any
Lockbox or any Lockbox Account, or make any change or replacement in the instructions contained in
any invoice, Notice to Obligors or otherwise, or regarding payments with respect to Receivables to
be made to the Lockboxes or the Lockbox Accounts except upon the prior and express written consent
of the Collateral Manager.

          (g) Borrowing Base Additional Information. Each Loan Party will provide or make
available to the Collateral Manager (in multiple copies, if requested by the Collateral Manager)
(with a copy to the Administrative Agent) the following:

          (i) promptly (and in no event later than five Business Days following actual knowledge
or receipt thereof) notice (in reasonable detail), of (x) any Lien asserted or claim made
against a Receivable, (y) the occurrence of any other event which could reasonably be
expected to have a Material Adverse Effect on the value of a Receivable or Inventory or on
the Lien of the Collateral Agent in a Receivable or Inventory, or (z) the results of any
material cost report, investigation or similar audit being conducted by any federal, state
or county Governmental Entity or its agents or designees;

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          (ii) on the 25th of each month, a Borrowing Base Certificate calculated as
of the last day of the immediately prior calendar month, based on, with respect to Eligible
Inventory, the month-end perpetual Inventory reports; and

          (iii) such other information respecting the Receivables, Inventory or the other
Collateral as the Collateral Manager may from time to time reasonably request.

          (h) Notice of Proceedings; Overpayments. Borrower shall promptly notify (in
reasonable detail) the Collateral Manager (with a copy to the Administrative Agent) (and modify the
next Borrowing Base Certificate to be delivered hereunder) in the event of any action, suit,
proceeding, dispute, set-off, deduction, defense or counterclaim involving in excess of $100,000
that is or has been threatened to be asserted by any Obligor with respect to any Receivable or
element of Inventory. Each Loan Party shall make any and all payments to the Obligors necessary to
prevent the Obligors from offsetting any earlier overpayment to any member of the Companies against
any amounts the Obligors owe on any Receivables.

          (i) No “Instruments”. No Loan Party shall take any action which would allow, result
in or cause any Receivable to be evidenced by an “instrument” within the meaning of the UCC of the
applicable jurisdiction.

          (j) Implementation of New Invoices. Each Loan Party shall take all reasonable steps
to ensure that all invoices rendered or dispatched on or after the Closing Date contain only the
remittance instructions required under Article II of the Collateral Management Agreement.

     Section 5.16 Net Cash Proceeds. Direct payment of, or if such arrangements are not practicable, deposit within two Business Days
of receipt thereof, all Net Cash Proceeds solely into the Collection Account.

     Section 5.17 Maintenance of Ratings. Cause the Loans and Borrower’s corporate credit to continue to be rated by Standard & Poor’s
Ratings Group and Moody’s Investors Service Inc.

     Section 5.18 Designation as Senior Debt. Designate all Obligations as “Senior Indebtedness” (or equivalent term) under, and defined in,
all Senior Notes and in any other public senior indebtedness and all supplemental indentures
thereto.

     Section 5.19 ABDC Intercreditor Agreement. By no later than earlier to occur of (i) the date of the renewal or extension of the existing
agreement with ABDC, and (ii) August 31, 2012, enter into an extension, amendment or new ABDC
Intercreditor Agreement that is identical in form and substance to the ABDC Intercreditor Agreement
in effect as of the Restatement Date; provided, that in connection therewith, Borrower agrees (i)
to discuss with Administrative Agent no later than June 30, 2012 the amendments and modifications
to the ABDC Intercreditor Agreement proposed by the Administrative Agent, and (ii) to include
Administrative Agent in discussions with ABDC and use all commercial efforts to obtain such
amendments and modifications thereunder.

     Section 5.20 Post-Restatement Date Deliveries. Execute and deliver the documents and complete the tasks set forth on Schedule 5.20 in
each case within the time limits specified therein.

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ARTICLE VI

NEGATIVE COVENANTS

     Each Loan Party warrants, covenants and agrees with the Administrative Agent, the Collateral
Agent, the Issuing Bank and each Lender that, so long as this Agreement shall remain in effect and
until the Commitments have been terminated and the principal of and interest and premium (if any)
on each Loan, all Fees and all other expenses or amounts payable under any Loan Document have been
paid in full and all Letters of Credit have been canceled or have expired and all amounts drawn
thereunder have been reimbursed in full, no Loan Party will, nor will they cause or permit any
Subsidiaries to:

     Section 6.01 Indebtedness. Incur, create, assume or permit to exist, directly or indirectly, any Indebtedness, except:

          (a) Indebtedness incurred under this Agreement and the other Loan Documents;

          (b) Indebtedness outstanding on the Restatement Date and listed on Schedule 6.01(b);

          (c) Indebtedness under Hedging Obligations that are designed to protect against fluctuations
in interest rates entered into in the ordinary course of business and not for speculative purposes;
provided that if such Hedging Obligations relate to interest rates, (i) such Hedging Obligations
relate to payment obligations on Indebtedness otherwise permitted to be incurred by the Loan
Documents and (ii) the notional principal amount of such Hedging Obligations at the time incurred
does not exceed the principal amount of the Indebtedness to which such Hedging Obligations relate;

          (d) Indebtedness resulting from Investments, including loans or advances permitted by
Section 6.04;

          (e) Indebtedness of Borrower and its Subsidiaries in respect of (i) Capital Lease Obligations
under the Cisco Capital Lease and (ii) Purchase Money Obligations and Capital Lease Obligations
(excluding the Cisco Capital Lease) in an aggregate amount not to exceed $5,000,000 at any time
outstanding;

          (f) Indebtedness in respect of workers’ compensation claims, self-insurance obligations,
bankers’ acceptances and bid, performance or surety bonds issued for the account of any Company in
the ordinary course of business, including guarantees or obligations of any Company with respect to
letters of credit supporting such workers’ compensation claims, self-insurance obligations,
bankers’ acceptances and bid, performance or surety obligations (in each case other than for an
obligation for money borrowed), in an aggregate amount not to exceed $1,000,000 at any time
outstanding;

          (g) Contingent Obligations of any Company in respect of Indebtedness otherwise permitted under
this Section 6.01 (other than under Section 6.01(n));

          (h) Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business; provided, however, that such
Indebtedness is extinguished within five Business Days of incurrence;

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          (i) Indebtedness arising in connection with endorsement of instruments for deposit in the
ordinary course of business;

          (j) (x) Indebtedness of all Companies in an aggregate principal amount not to exceed
$10,000,000 at any time outstanding, and (y) Subordinated Indebtedness of the Companies in an
aggregate principal amount not to exceed $20,000,000 at any time outstanding; provided, that (1)
the documentation with respect to any Indebtedness incurred following the Restatement Date shall
provide that the stated maturity date and all mandatory prepayments thereunder not occur prior to
the Stated Maturity Date, and (2) prior any incurrence of Indebtedness in excess of $4,000,000,
Borrower shall certify to the Administrative Agent it is in compliance with the Pro Forma
Condition.

          (k) Indebtedness which represents a refinancing or renewal of any of the Indebtedness
described in clauses (b), (c) and (e); provided that (A) any such
refinancing Indebtedness is in an aggregate principal amount (or aggregate amount, as applicable)
not greater than the aggregate principal amount (or aggregate amount, as applicable) of the
Indebtedness being renewed or refinanced, plus the amount of any premiums required to be paid
thereon and reasonable fees and expenses associated therewith, (B) such refinancing Indebtedness
has a later or equal final maturity and longer or equal weighted average life to maturity than the
Indebtedness being renewed or refinanced, (C) the covenants, events of default, subordination
(including lien subordination) and other terms, conditions and provisions thereof (including any
guarantees thereof or security documents in respect thereof) shall be, in the aggregate, no less
favorable to the Administrative Agent, the Collateral Agent and the Lenders than those contained in
the Indebtedness being renewed or refinanced and (D) no Default or Event of Default has occurred or
is continuing or would result therefrom;

          (l) unsecured Indebtedness under the Senior Note Documents (including any notes and guarantees
issued in exchange therefor in accordance with the registration rights agreement entered into in
connection with the issuance of the Senior Notes and Senior Note Guarantees) in an aggregate
principal amount not to exceed $225,000,000 at any time outstanding);

          (m) unsecured Indebtedness arising from agreements of Borrower or a Subsidiary providing for
indemnification, contribution, earnout, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with any Permitted Acquisition, any Debt Issuance or
Asset Sale otherwise permitted under this Agreement; and

          (n) Indebtedness of Borrower or a Subsidiary in connection with the acquisition of assets or a
new Subsidiary; provided that such Indebtedness was incurred by the prior owner of such assets or
such Subsidiary prior to such acquisition by Borrower or one of its Subsidiaries and was not
incurred in connection with, or in contemplation of, such acquisition by Borrower or one of its
Subsidiaries; provided further that the aggregate amount of such Indebtedness, together with any
other outstanding Indebtedness incurred pursuant to this clause (n) does not exceed 10,000,000 at
any time outstanding; provided, further, that (1) the documentation with respect to any
Indebtedness incurred following the Restatement Date shall provide that the stated maturity date
and all mandatory prepayments thereunder not occur prior to the Stated Maturity Date, and (2)
prior any incurrence of
Indebtedness in excess of $1,000,000, Borrower shall certify to the Administrative Agent it is
in compliance with the Pro Forma Condition.

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     Section 6.02 Liens. Create, incur, assume or permit to exist, directly or indirectly, any Lien on any property now
owned or hereafter acquired by it or on any income or revenues or rights in respect of any thereof,
except the following (collectively, the “Permitted Liens”):

          (a) inchoate Liens for taxes, assessments or governmental charges or levies not yet due and
payable or delinquent and Liens for taxes, assessments or governmental charges or levies, which (i)
are being contested in good faith by appropriate proceedings for which adequate reserves have been
established in accordance with GAAP, which proceedings (or Orders entered in connection with such
proceedings) have the effect of preventing the forfeiture or sale of the property subject to any
such Lien;

          (b) Liens in respect of property of any Company imposed by law, which were incurred in the
ordinary course of business and do not secure Indebtedness for borrowed money, such as carriers’,
warehousemen’s, materialmen’s, landlords’, workmen’s, suppliers’, repairmen’s and mechanics’ Liens
and other similar Liens arising in the ordinary course of business, and (i) which do not in the
aggregate materially detract from the value of the property of the Companies, taken as a whole, or
the Loan Parties, taken as a whole, and do not materially impair the use thereof in the operation
of the business of the Companies, taken as a whole, or the Loan Parties, taken as a whole, and (ii)
which, if they secure obligations that are then due and unpaid, are being contested in good faith
by appropriate proceedings for which adequate reserves have been established in accordance with
GAAP, which proceedings (or Orders entered in connection with such proceedings) have the effect of
preventing the forfeiture or sale of the property subject to any such Lien;

          (c) any Lien in existence on the Restatement Date and set forth on Schedule 6.02(c)
and any Lien granted as a replacement or substitute therefor; provided that any such replacement or
substitute Lien (i) except as permitted by clause (A) of the proviso to Section 6.01(k),
does not secure an aggregate amount of Indebtedness or other obligations, if any, greater than that
secured on the Restatement Date and (ii) does not encumber any property other than the property
subject thereto on the Restatement Date (any such Lien, a “Pre-Restatement Lien”);

          (d) easements, rights-of-way, restrictions (including zoning restrictions), covenants,
licenses, encroachments, protrusions and other similar charges or encumbrances, and minor title
deficiencies on or with respect to any Real Property, in each case whether now or hereafter in
existence, not (i) securing Indebtedness, (ii) individually or in the aggregate materially
impairing the value or marketability of such Real Property or (iii) individually or in the
aggregate materially interfering with the ordinary conduct of the business of the Companies at such
Real Property;

          (e) Liens arising out of judgments, attachments or awards not resulting in a Default and in
respect of which such Company shall in good faith be prosecuting an appeal or proceedings for
review in respect of which there shall be secured a subsisting stay of execution pending such
appeal or proceedings;

          (f) Liens (other than any Lien imposed by ERISA) (x) imposed by law or deposits made in
connection therewith in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security legislation, (y)
incurred in the ordinary course of business to secure the performance of tenders, statutory
obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory bonds,
bids, leases, government contracts, trade contracts, performance and return of money bonds and
other similar obligations

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(exclusive of obligations for the payment of Indebtedness) or (z) arising
by virtue of deposits made in the ordinary course of business to secure liability for premiums to
insurance carriers; provided that (i) with respect to clauses (x), (y) and (z) of this paragraph
(f), such Liens are for amounts not yet due and payable or delinquent or, to the extent such
amounts are so due and payable, such amounts are being contested in good faith by appropriate
proceedings for which adequate reserves have been established in accordance with GAAP, which
proceedings or Orders entered in connection with such proceedings have the effect of preventing the
forfeiture or sale of the property subject to any such Lien, and (ii) to the extent such Liens are
not imposed by Legal Requirements, such Liens shall in no event encumber any property other than
cash and Cash Equivalents;

          (g) Leases of the properties of any Company, and the rights of ordinary-course lessees
described in Section 9-321 of the UCC, in each case entered into in the ordinary course of such
Company’s business so long as such Leases and rights do not, individually or in the aggregate, (i)
interfere in any material respect with the ordinary conduct of the business of any Company or (ii)
materially impair the use (for its intended purposes) or the value of the property subject thereto;

          (h) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by any Company in the ordinary course of business
in accordance with the past practices of such Company;

          (i) Liens securing Indebtedness incurred pursuant to Section 6.01(e), provided that
(i) any such Liens attach only to the property (including proceeds thereof) being financed pursuant
to such Indebtedness and (ii) do not encumber any other property of any Company;

          (j) bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more accounts maintained by any Company, in each
case granted in the ordinary course of business in favor of the bank or banks with which such
accounts are maintained, securing amounts owing to such bank with respect to cash management and
operating account arrangements, including those involving pooled accounts and netting arrangements;
provided that, unless such Liens are non-consensual and arise by operation of applicable Legal
Requirements, in no case shall any such Liens secure (either directly or indirectly) the repayment
of any Indebtedness;

          (k) Liens on property of a person existing at the time such person is acquired or merged with
or into or consolidated with any Company to the extent permitted hereunder; provided that such
Liens (i) do not extend to property not subject to such Liens at the time of such acquisition,
merger or consolidation (other than proceeds thereof and improvements thereon), (ii) are no more
favorable to the lienholders than such existing Liens (iii) are not created in anticipation or
contemplation of such acquisition, merger or consolidation; (iv) no such Liens shall cover Accounts
or Inventory of any kind or other Collateral of any Loan Party to the extent of the Lien existing
prior to the effective date of such merger, acquisition or consolidation, except to the extent the
subject of an intercreditor agreement acceptable to the Administrative Agent;

          (l) Liens granted pursuant to the Security Documents to secure the Obligations;

          (m) licenses of Intellectual Property granted by any Company in the ordinary course of
business and not interfering in any material respect with the ordinary conduct of business of the
Companies;

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          (n) the filing of UCC financing statements solely as a precautionary measure in connection
with operating leases or consignment of goods;

          (o) Liens of a collecting bank arising in the ordinary course of business under Section 4-208
of the UCC covering only the items being collected upon;

          (p) Liens granted by a Company in favor of a Loan Party in respect of Indebtedness owed by
such Company to such Loan Party; provided that such Indebtedness is evidenced by the Intercompany
Note; and

          (q) the ABDC Lien (only to the extent subject to the ABDC Intercreditor Agreement) and (y) a
Lien of a supplier to Borrower or a Subsidiary on Inventory (to the extent supplied by such
supplier) and related Accounts and the products and proceeds thereof, only to the extent that such
supplier has entered into an intercreditor agreement with the Collateral Agent (for the benefit of
the Secured Parties) and the Loan Parties in the form of the Supplier Intercreditor Agreement (with
such amendments, supplements and/or modifications thereto as may be reasonably acceptable to the
Administrative Agent).

     Section 6.03 Sale and Leaseback Transactions. Enter into any arrangement, directly or indirectly, with any person whereby it shall sell or
transfer any property used or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property which it intends to use for substantially
the same purpose or purposes as the property being sold or transferred (a “Sale and Leaseback
Transaction”).

     Section 6.04 Investments, Loans and Advances. Directly or indirectly, lend money or credit (by way of guarantee, assumption of debt or
otherwise) or make advances to any person, or purchase or acquire any stock, bonds, notes,
debentures or other obligations or securities of, or any other interest in, or make any capital
contribution to, any other person, or purchase or own a futures contract or otherwise become liable
for the purchase or sale of currency or other commodities at a future date in the nature of a
futures contract (all of the foregoing, collectively, “Investments”), except that the following
shall be permitted:

          (a) [Intentionally Omitted];

          (b) Investments outstanding on the Restatement Date and identified on Schedule
6.04(b);

          (c) the Companies may (i) acquire, hold and dispose of accounts receivable owing to any of
them if created or acquired in the ordinary course of business and payable or dischargeable in
accordance with customary terms, (ii) invest in, acquire and hold cash and Cash Equivalents, (iii)
endorse negotiable instruments held for collection in the ordinary course of business or (iv) make
lease, utility and other similar deposits in the ordinary course of business;

          (d) Hedging Obligations permitted pursuant to Section 6.01(c);

          (e) loans and advances to directors, employees and officers of Borrower and the Subsidiaries
for bona fide business purposes, in aggregate amount not to exceed $1,000,000 at any time
outstanding; provided that no loans in violation of the Sarbanes-Oxley Act (including Section 402
thereof) shall be permitted hereunder;

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          (f) Investments (i) by Borrower in any Subsidiary Guarantor, including any entity that becomes
a Subsidiary Guarantor in a Permitted Acquisition, (ii) by any Company in Borrower or any
Subsidiary Guarantor and (iii) by a Subsidiary of Borrower that is not a Subsidiary Guarantor in
any other Subsidiary of Borrower that is not a Subsidiary Guarantor; provided that any Investment
in the form of a loan or advance shall be evidenced by the Intercompany Note;

          (g) Investments in securities of trade creditors or customers in the ordinary course of
business and consistent with such Company’s past practices that are received in settlement of bona
fide disputes or pursuant to any plan of reorganization or liquidation or similar arrangement upon
the bankruptcy or insolvency of such trade creditors or customers;

          (h) mergers, consolidations and other transactions in compliance with Section 6.05;

          (i) Investments made by Borrower or any Subsidiary as a result of consideration received in
connection with an Asset Sale made in compliance with Section 6.06;

          (j) Acquisitions of property in compliance with Section 6.07;

          (k) Dividends in compliance with Section 6.08;

          (l) [Intentionally Omitted];

          (m) Guarantees by Borrower or any Subsidiary of Indebtedness of Borrower or a Subsidiary of
Indebtedness otherwise permitted under Section 6.01 (other than under Section
6.01(n)); and

          (n) Investments made by Borrower or any Subsidiary in any Permitted Joint Venture on or after
the date hereof in an aggregate amount not to exceed $5,000,000 (for each such Investment and
related series of Investments) and $15,000,000 in the aggregate; provided, that (x) if permitted
under the documents related to such Permitted Joint Venture, the equity held by any Company, or (y)
if not permitted, all proceeds and distributions payable to Borrower or any Subsidiary with respect
to such Permitted Joint Venture, in either case, shall be pledged to the Administrative Agent in a
manner reasonably acceptable to the Administrative Agent.

     Section 6.05 Mergers and Consolidations. Wind up, liquidate or dissolve its affairs or enter into any transaction of merger or
consolidation (or agree to do any of the foregoing at any future time), except that the following
shall be permitted:

          (a) [Intentionally Omitted];

          (b) dispositions of property in compliance with Section 6.06;

          (c) any solvent Company (other than Borrower) may merge or consolidate with or into Borrower
or any Subsidiary Guarantor (as long as Borrower or a Subsidiary Guarantor is the surviving person
in such merger or consolidation); provided that the Lien on and security interest in such property
granted or to be granted in favor of the Collateral Agent under the Security Documents shall be
maintained or created in accordance with the provisions of Sections 5.11 and 5.12,
as applicable;

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          (d) any Subsidiary may dissolve, liquidate or wind up its affairs at any time if such
dissolution, liquidation or winding up is not disadvantageous to any Agent or Lender in any
material respect; and

          (e) [Intentionally Omitted].

     To the extent the requisite Lenders under Section 11.02(b) waive the provisions of
this Section 6.05 with respect to the sale of any Collateral, or any Collateral is sold as
permitted by this Section 6.05, such Collateral (unless sold to a Company or any Affiliate
thereof) shall be sold free and clear of the Liens created by the Security Documents, and, so long
as Borrower shall have previously provided to the Collateral Agent and the Administrative Agent
such certifications or documents as the Collateral Agent and/or the Administrative Agent shall
reasonably request in order to demonstrate compliance with this Section 6.05, the
Collateral Agent shall take all actions it deems appropriate in order to effect the foregoing.

     Section 6.06 Asset Sales. Effect any disposition of any property, or agree to effect any of the foregoing, except that the
following shall be permitted:

          (a) dispositions of worn out, obsolete or surplus property by Borrower or any of its
Subsidiaries in the ordinary course of business and the abandonment or other disposition of
Intellectual Property that is, in the reasonable good faith judgment of Borrower or such
Subsidiary, no longer economically practicable to maintain or useful in the conduct of the business
of the Companies taken as a whole;

          (b) other dispositions of property; provided that (i) the aggregate consideration received in
respect of all dispositions of property pursuant to this clause (b) shall not exceed $2,000,000 in
any four consecutive fiscal quarters of Borrower, but, in any event, shall not exceed $500,000 with
respect to any single disposition of property, (ii) such dispositions of property are made for Fair
Market Value, and (iii) at least 80% of the consideration payable in respect of such disposition of
property is in the form of cash or Cash Equivalents (and for purposes of making the foregoing
determination, each of the following shall be deemed “cash”: (1) any liabilities, as shown on the
then most recent balance sheet of Borrower or any Subsidiary (other than contingent liabilities,
liabilities that are by their terms subordinated to the Obligations or impaired liabilities) that
are assumed by the transferee of any such assets pursuant to a customary novation agreement that
releases Borrower and Subsidiaries from all liability thereunder or with respect thereto; and (2)
any securities, notes or other obligations received by Borrower or such Subsidiary from the
transferee that are converted to cash within thirty (30) days after receipt, to the extent of the
cash received in that conversion);

          (c) leases, subleases, licenses or sublicenses of real or personal property (including
intellectual property or other general intangibles) to third parties in the ordinary course of
business and in accordance with the applicable Security Documents;

          (d) [Intentionally Omitted];

          (e) Permitted Liens in compliance with Section 6.02;

          (f) Investments in compliance with Section 6.04;

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          (g) dispositions related to mergers, consolidations and other transactions in compliance with
Section 6.05;

          (h) Dividends in compliance with Section 6.08;

          (i) sales of inventory or rental equipment fixed assets in the ordinary course of business and
dispositions of cash and Cash Equivalents in the ordinary course of business; and

          (j) any disposition of property that constitutes a Casualty Event.

     To the extent the requisite Lenders under Section 11.02(b) waive the provisions of
this Section 6.06, with respect to the sale of any Collateral, or any Collateral is sold as
permitted by this Section 6.06, such Collateral (unless sold to a Company or any Affiliate
thereof) shall be sold free and clear of the Liens created by the Security Documents, and, so long
as Borrower shall have previously provided to the Collateral Agent and the Administrative Agent
such certifications or documents as the Collateral Agent and/or the Administrative Agent shall
reasonably request in order to demonstrate compliance with this Section 6.06, the
Collateral Agent shall take all actions it deems appropriate in order to effect the foregoing.

     Section 6.07 Acquisitions. Purchase or otherwise acquire (in one or a series of related transactions) (i) all or any
substantial part of the property (whether tangible or intangible) of any person (ii) any business
unit or division of any person or (iii) in excess of 50% of the Equity Interests of such person (or
agree to do any of the foregoing at any future time), except that the following shall be permitted:

          (a) Investments in compliance with Section 6.04;

          (b) Capital Expenditures by Borrower and the Subsidiaries shall be permitted to the extent
permitted by Section 6.10(d);

          (c) purchases and other acquisitions of inventory, materials, equipment and intangible
property in the ordinary course of business;

          (d) leases or licenses of real or personal property in the ordinary course of business and in
accordance with the applicable Security Documents;

          (e) the Acquisition as contemplated by the Acquisition Documents;

          (f) Permitted Acquisitions;

          (g) mergers, consolidations and other transactions in compliance with Section 6.05;
and

          (h) Dividends in compliance with Section 6.08;

provided that the Lien on and security interest in such property granted or to be granted in favor
of the Collateral Agent under the Security Documents shall be maintained or created in accordance
with the provisions of Section 5.11 or Section 5.12, as applicable.

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     Section 6.08 Dividends. Authorize, declare or pay, directly or indirectly, any Dividends with respect to any Company,
except for the following:

          (a) Dividends by any Company that is a Subsidiary of Borrower to Borrower or any Subsidiary
Guarantor;

          (b) Dividends made solely in Equity Interests (other than Disqualified Capital Stock);
provided, that no Default or Event of Default has occurred and is continuing prior to, or will
occur immediately after, such Dividend;

          (c) Dividends to the extent constituting the non-cash repurchase of Equity Interests of
Borrower deemed to occur upon the exercise of stock options, warrants or other convertible or
exchangeable securities to the extent such Equity Interests represent a portion of the exercise
price of those securities, in each case, pursuant to Borrower’s equity-based compensation or
equity-based incentive plan; and

          (d) Dividends made in cash in lieu of the issuance of fractional share in connection with the
exercise of warrants, options or other securities convertible into, or exchangeable for, Equity
Interests of Borrower, in each case, pursuant to Borrower’s equity-based compensation or
equity-based incentive plan not to exceed $100,000 in the aggregate for any twelve-month period.

     Section 6.09 Transactions with Affiliates. Enter into, directly or indirectly, any transaction or series of related transactions, whether
or not in the ordinary course of business, with any Affiliate of any Company (other than between or
among Borrower and one or more Subsidiary Guarantors), other than on terms and conditions at least
as favorable to such Company as would reasonably be obtained by such Company at that time in a
comparable arm’s-length transaction with a person other than an Affiliate, except that the
following shall be permitted:

          (a) Dividends permitted by Section 6.08;

          (b) Investments, including loans and advances, permitted by Sections 6.04(e) and
(f);

          (c) reasonable and customary director, officer and employee compensation (including bonuses)
and other benefits (including retirement, health, stock option and other benefit plans) and
indemnification arrangements, in each case approved by the Board of Directors of the applicable
Company, including the employment agreements listed on Schedule 6.09(c) and the payment of
salaries and other compensation thereunder;

          (d) [Intentionally Omitted];

          (e) transactions between or among Borrower and its Subsidiaries to the extent permitted by
Sections 6.01(b) and (g), Section 6.05 (other than pursuant to paragraph
(b) thereof) and Section 6.06(g); and

          (f) any other agreement or arrangement as in effect on the date of this Agreement and
described on Schedule 3.09(i), and any amendment or modification thereto, and the
performance of obligations thereunder, so long as such amendment or modification is not more
disadvantageous to, or

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otherwise adverse to the interests of, the Administrative Agent and the
Lenders than those in effect on the date of this Agreement.

     Section 6.10 Financial Covenants.

          (a) Minimum Liquidity. Permit at any time the aggregate amount of Unrestricted
Domestic Cash and Cash Equivalents and the undrawn and available portion of the Revolving
Commitments to equal less than $20,000,000.

          (b) Minimum Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge
Coverage Ratio, as of the last day of any Test Period ending on the date set forth in the table
below, to be less than 1.20 to 1.0.

          (c) Accounts Receivable Turnover. Permit Accounts Receivable Turnover, calculated as
of the end of each Test Period, to exceed 75 days.

     Section 6.11 Prepayments of Other Indebtedness; Modifications of Organizational Documents,
Acquisition and Certain Other Documents, etc.
Directly or indirectly:

          (a) make or offer to make (or give any notice in respect thereof) any voluntary or optional
payment or prepayment on or redemption or acquisition for value of, or any prepayment, repurchase
or redemption, retirement, defeasance as a result of any asset sale, change of control or similar
event of, any Senior Notes or Subordinated Indebtedness; provided that, so long as no Default or
Event of Default has occurred and is then continuing or would result therefrom, Exchange Senior
Notes may be issued to the extent contemplated by the definition of Senior Notes and to the extent
consistent with the definition of Exchange Senior Notes;

          (b) amend, modify, supplement or waive, or permit the amendment, modification supplement or
waiver of, any provision of any Transaction Document in any manner that is, or could reasonably be
expected to be, adverse in any material respect to the interests of any Agent or Lender; or

          (c) terminate, amend, modify (including electing to treat any Pledged Interests (as defined in
the Security Agreement) as a “security” under Section 8-103 of the UCC) or change any of its
Organizational Documents (including by the filing or modification of any certificate of
designation) or any agreement to which it is a party with respect to its Equity Interests
(including any stockholders’ agreement), or enter into any new agreement with respect to its Equity
Interests, other than any such amendments, modifications or changes or such new agreements which
are not, and could not reasonably be expected to be, adverse in any material respect to the
interests of any Agent or Lender.

     Section 6.12 Limitation on Certain Restrictions on Subsidiaries. Directly or indirectly, create or otherwise cause or suffer to exist or become effective any
encumbrance, restriction or condition on the ability of any Subsidiary to (i) pay Dividends or make
any other distributions on its Equity Interests or any other interest or participation in its
profits owned by any Company, or pay any Indebtedness owed to any Company, (ii) make loans or
advances to any Company or (iii) transfer any of its properties to any Company, except for such
encumbrances, restrictions or conditions existing under or by reason of:

          (a) applicable mandatory Legal Requirements;

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          (b) (x) this Agreement and the other Loan Documents and (y) the Senior Note Documents;

          (c) customary provisions restricting subletting or assignment of any lease governing a
leasehold interest of a Subsidiary;

          (d) customary provisions restricting assignment of any agreement entered into by a Subsidiary
in the ordinary course of business;

          (e) customary restrictions and conditions contained in any agreement relating to the sale of
any property pending the consummation of such sale; provided that (i) such restrictions and
conditions apply only to the property to be sold, and (ii) such sale is permitted hereunder;

          (f) any agreement in effect at the time such Subsidiary becomes a Subsidiary of Borrower, so
long as such agreement was not entered into in connection with or in contemplation of such person
becoming a Subsidiary of Borrower; or

          (g) any encumbrances or restrictions imposed by any amendments or refinancings that are
otherwise permitted by the Loan Documents of the contracts, instruments or obligations referred to
in clause (f) above; provided that such amendments or refinancings are no more materially
restrictive with respect to such encumbrances and restrictions than those prior to such amendment
or refinancing.

     Section 6.13 Limitation on Issuance of Capital Stock. (a) With respect to Borrower, issue any Equity Interest that is Disqualified Capital Stock.

          (b) With respect to any Subsidiary of Borrower, issue any Equity Interest (including by way of
sales of treasury stock) or any options or warrants to purchase, or securities convertible into,
any Equity Interest, except (i) for stock splits, stock dividends and additional issuances of
Equity Interests which do not decrease the percentage ownership of any Subsidiaries or Borrower in
any class of the Equity Interests of such Subsidiary; and (ii) Subsidiaries of Borrower formed or
acquired after the Restatement Date in accordance with Section 6.14 may issue Equity
Interests to Borrower or the Wholly Owned Subsidiary which is to own such Equity Interests. All
Equity Interests issued in accordance with this Section 6.13(b)  shall, to the extent
required by Section 5.11 and 5.12 or any Security Document, be delivered to the
Collateral Agent for pledge pursuant to the applicable Security Document.

     Section 6.14 Limitation on Creation of Subsidiaries. Establish, create or acquire any additional Subsidiaries without the prior written consent of
the Required Lenders; provided that, without such consent, Borrower may (i) establish or create one
or more Wholly Owned Subsidiaries, (ii) establish, create or acquire one or more Subsidiaries in
connection with an Investment made pursuant to Section 6.04(f), or (iii) acquire one or
more Subsidiaries in connection with a Permitted Acquisition or another Investment permitted
hereunder, so long as, in each case, Section 5.11 shall be complied with.

     Section 6.15 Business. Engage (directly or indirectly) in any businesses other than those businesses in which Borrower
and its Subsidiaries are engaged on the Restatement Date (or which are ancillary thereto,
reasonably related thereto or are reasonable extensions thereof or complementary thereto).

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     Section 6.16 Limitation on Accounting Changes. Make or permit, any material change in accounting policies or reporting practices, without the
consent of the Required Lenders, which consent shall not be unreasonably withheld, except changes
that are required by GAAP.

     Section 6.17 Fiscal Periods. Change its fiscal year-end and fiscal quarter-ends to dates other than December 31 and March 31,
June 30 and September 30, respectively.

     Section 6.18 No Further Negative Pledge. Enter into any agreement, instrument, deed or lease which prohibits or limits the ability of any
Company to create, incur, assume or suffer to exist any Lien upon any of its properties or
revenues, whether now owned or hereafter acquired, or which requires the grant of any Lien for an
obligation if a Lien is granted for another obligation, except the following: (1) this Agreement
and the other Loan Documents and the Senior Note Documents; (2) covenants in documents creating
Liens permitted by Section 6.02 prohibiting further Liens on the properties encumbered
thereby; and (3) any prohibition or limitation that (a) exists pursuant to applicable Legal
Requirements, or (b) consists of customary restrictions and conditions contained in any agreement
relating to the sale or other disposition of any property pending the consummation of such sale or
other disposition; provided that (i) such restrictions apply only to such property, and (ii) such
sale or other disposition is permitted hereunder, or (c) restricts subletting or assignment of any
lease governing a leasehold interest of Borrower or one of its Subsidiaries.

     Section 6.19 Anti-Terrorism Law; Anti-Money Laundering. (a) Directly or indirectly, (i) knowingly conduct any business or engage in making or receiving
any contribution of funds, goods or services to or for the benefit of any person described in
Section 3.23, (ii) knowingly deal in, or otherwise engage in any transaction relating to,
any property or interests in property blocked pursuant to the Executive Order or any other
Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law (and the Loan Parties shall deliver to the Lenders
any certification or other evidence requested from time to time
by any Lender in its reasonable discretion, confirming the Companies’ compliance with this
Section 6.19).

          (b) Cause or permit any of the funds of such Loan Party that are used to repay the Credit
Extensions to be derived from any unlawful activity with the result that the making of the Credit
Extensions would be in violation of Legal Requirements.

     Section 6.20 Embargoed Person. Cause or permit (a) any of the funds or properties of the Loan Parties that are used to repay
the Loans or other Credit Extensions to constitute property of, or be beneficially owned directly
or indirectly by, any person subject to sanctions or trade restrictions under United States law
(“Embargoed Person” or “Embargoed Persons”) that is identified on (1) the “List of Specially
Designated Nationals and Blocked Persons” (the “SDN List”) maintained by OFAC and/or on any other
similar list (“Other List”) maintained by OFAC pursuant to any authorizing statute including the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation promulgated thereunder, with
the result that the investment in the Loan Parties (whether directly or indirectly) is prohibited
by applicable Legal Requirements, or the Loans or other Credit Extensions made by the Lenders and
the Issuing Bank would be in violation of Legal Requirements, or (2) the Executive Order, any
related enabling legislation or any other similar executive orders (collectively, “Executive
Orders”), or (b) any Embargoed Person to have any direct or indirect interest, of any nature
whatsoever in the Loan Parties, with the result that the investment in the Loan Parties (whether
directly or indirectly) is prohibited by

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applicable Legal Requirements or the Credit Extensions are
in violation of applicable Legal Requirements.

     Section 6.21 Health Care Matters. Without limiting or being limited by any other provision of any Loan Document, no Company shall
(i) fail to maintain in effect all Company Health Care Permits, Company Accreditations and Company
Reimbursement Approvals, to the extent such failure would result in a Material Adverse Effect, or
(ii) engage in any activity that constitutes or, with the giving of notice, the passage of time, or
both, would (a) result in a violation of any Company Health Care Permit, Company Accreditation or
Company Reimbursement Approval or any Health Care Laws, unless such activity could not reasonably
be expected to result in a Material Adverse Effect, or (b) cause any Company not to be in
substantial compliance with any Health Care Laws.

ARTICLE VII

GUARANTEE

     Section 7.01 The Guarantee. The Subsidiary Guarantors hereby, jointly and severally, guarantee, and hereby confirms,
ratifies and restates on the Restatement Date their joint and several guarantee, as primary
obligors and not as a sureties to each Secured Party and their respective successors and assigns,
the prompt payment and performance in full when due (whether at stated maturity, by required
prepayment, declaration, demand, by acceleration or otherwise) of the principal of and interest
(including any interest, fees, costs or charges that would accrue but for the provisions of the
Title 11 of the United States Code after any bankruptcy or insolvency petition under Title 11 of
the United States Code) on the Loans made by the Lenders to, and the Notes held by each Lender of,
Borrower, and all other Obligations from time to time
owing to the Secured Parties by any Loan Party under any Loan Document in each case strictly in
accordance with the terms thereof (such obligations being herein collectively called the
“Guaranteed Obligations”). The Subsidiary Guarantors hereby jointly and severally agree that if
Borrower or other Subsidiary Guarantor(s) shall fail to pay in full when due (whether at stated
maturity, by acceleration or otherwise) any of the Guaranteed Obligations, the Guarantors will
promptly pay the same in cash, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be
promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in
accordance with the terms of such extension or renewal.

     Section 7.02 Obligations Unconditional. The obligations of the Subsidiary Guarantors under Section 7.01 shall constitute a
guaranty of payment and performance and not of collection and to the fullest extent permitted by
applicable Legal Requirements, are absolute, irrevocable and unconditional, joint and several,
irrespective of the value, genuineness, validity, regularity or enforceability of the Guaranteed
Obligations under this Agreement, the Notes, if any, or any other agreement or instrument referred
to herein or therein, or any substitution, release or exchange of any other guarantee of or
security for any of the Guaranteed Obligations, and, irrespective of any other circumstance
whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or
Subsidiary Guarantor (except for payment in full). Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or
impair the liability of the Subsidiary Guarantors hereunder which shall remain absolute,
irrevocable and unconditional under any and all circumstances as described above:

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          (i) at any time or from time to time, without notice to the Subsidiary Guarantors, the
time for any performance of or compliance with any of the Guaranteed Obligations shall be
extended, or such performance or compliance shall be waived;

          (ii) any of the acts mentioned in any of the provisions of this Agreement or the Notes,
if any, or any other agreement or instrument referred to herein or therein shall be done or
omitted;

          (iii) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of
the Guaranteed Obligations shall be amended in any respect, or any right under the Loan
Documents or any other agreement or instrument referred to herein or therein shall be
amended or waived in any respect (including in each case, without limitation, the amendment
and restatement of this Agreement as of the Restatement Date) or any other guarantee of any
of the Guaranteed Obligations or any security therefor shall be released or exchanged in
whole or in part or otherwise dealt with; or

          (iv) any Lien or security interest granted to, or in favor of, any Secured Party as
security for any of the Guaranteed Obligations shall fail to be valid, perfected or to have
the priority required under the Loan Documents.

     The Subsidiary Guarantors hereby expressly waive diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that any Secured Party exhaust any right,
power or remedy or proceed against Borrower or any Subsidiary Guarantor under this Agreement or the
Notes, if any, or any other agreement or instrument referred to herein or therein, or against any
other person under any other guarantee of, or security for, any of the Guaranteed Obligations. The
Subsidiary
Guarantors waive any and all notice of the creation, renewal, extension, waiver, termination
or accrual of any of the Guaranteed Obligations (including, without limitation, the amendment and
restatement of this Agreement as of the Restatement Date) and notice of or proof of reliance by any
Secured Party upon this Guarantee or acceptance of this Guarantee, and the Guaranteed Obligations,
and any of them, shall conclusively be deemed to have been created, contracted or incurred in
reliance upon this Guarantee, and all dealings between Borrower and the Secured Parties shall
likewise be conclusively presumed to have been had or consummated in reliance upon this Guarantee.
This Guarantee shall be construed as a continuing, absolute, irrevocable and unconditional
guarantee of payment and performance without regard to any right of offset with respect to the
Guaranteed Obligations at any time or from time to time held by the Secured Parties, and the
obligations and liabilities of the Subsidiary Guarantors hereunder shall not be conditioned or
contingent upon the pursuit by the Secured Parties or any other person at any time of any right or
remedy against Borrower or against any other person which may be or become liable in respect of all
or any part of the Guaranteed Obligations or against any collateral security or guarantee therefor
or right of offset with respect thereto. This Guarantee shall remain in full force and effect and
be binding in accordance with and to the extent of its terms upon the Subsidiary Guarantors and
their respective successors and assigns, and shall inure to the benefit of the Secured Parties, and
their respective successors and assigns, notwithstanding that from time to time during the term of
this Agreement there may be no Guaranteed Obligations outstanding.

     Section 7.03 Reinstatement. The obligations of the Subsidiary Guarantors under this Article VII shall be automatically
reinstated if and to the extent that for any reason any payment by or on behalf of Borrower or
other Loan Party in respect of the Guaranteed Obligations is rescinded or must be

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otherwise
restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings
in bankruptcy or reorganization or otherwise.

     Section 7.04 Subrogation; Subordination. Each Subsidiary Guarantor hereby agrees that until the indefeasible payment and satisfaction in
full in cash of all Guaranteed Obligations and the expiration and termination of the Commitments of
the Lenders under this Agreement it shall waive any claim and shall not exercise any right or
remedy, direct or indirect, arising by reason of any performance by it of its guarantee in
Section 7.01, whether by subrogation or otherwise, against Borrower or any other Subsidiary
Guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed
Obligations. Any Indebtedness of any Loan Party permitted pursuant to Section 6.04(f)
shall be subordinated to such Loan Party’s Obligations in the manner set forth in the Intercompany
Note evidencing such Indebtedness.

     Section 7.05 Remedies. The Subsidiary Guarantors jointly and severally agree that, as between the Subsidiary Guarantors
and the Lenders, the obligations of Borrower under this Agreement and other Loan Documents may be
declared to be forthwith due and payable as provided in Article VIII (and shall be deemed
to have become automatically due and payable in the circumstances provided in Article VIII)
for purposes of Section 7.01, notwithstanding any stay, injunction or other prohibition
preventing such declaration (or such obligations from becoming automatically due and payable) as
against Borrower (but not such Subsidiary Guarantor) and that, in the event of such declaration (or
such obligations being deemed to have become automatically due and payable), such obligations
(whether or not due and payable by
Borrower) shall forthwith become due and payable by the Subsidiary Guarantors for purposes of
Section 7.01.

     Section 7.06 Instrument for the Payment of Money. Each Subsidiary Guarantor hereby acknowledges that the guarantee in this Article VII
constitutes an instrument for the payment of money, and consents and agrees that any Lender or
Agent, at its sole option, in the event of a dispute by such Subsidiary Guarantor in the payment of
any moneys due hereunder, shall have the right to bring a motion-action under New York CPLR Section
3213.

     Section 7.07 Continuing Guarantee. The guarantee in this Article VII is a continuing guarantee of payment and performance,
and shall apply to all Guaranteed Obligations whenever arising.

     Section 7.08 General Limitation on Guarantee Obligations. In any action or proceeding involving any state corporate limited partnership or limited
liability company law, or any applicable state, federal or foreign bankruptcy, insolvency,
reorganization or other Legal Requirement affecting the rights of creditors generally, if the
obligations of any Subsidiary Guarantor under Section 7.01 would otherwise be held or
determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any
other creditors, on account of the amount of its liability under Section 7.01, then,
notwithstanding any other provision to the contrary, the amount of such liability shall, without
any further action by such Subsidiary Guarantor, any Loan Party or any other person, be
automatically limited and reduced to the highest amount that is valid and enforceable, not void or
voidable and not subordinated to the claims of other creditors as determined in such action or
proceeding.

     Section 7.09 [Intentionally Omitted].

     Section 7.10 Right of Contribution. (a) The Loan Parties hereby agree as among themselves that, if any Loan Party shall make an
Excess Payment (as defined below), such Loan Party shall have a right of contribution from each
other Loan Party in an amount equal to such other Loan Party’s

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Contribution Share (as defined
below) of such Excess Payment. The payment obligations of any Loan Party under this Section
7.10 shall be subordinate and subject in right of payment to the Obligations until such time as
the Obligations have been paid in full in cash and all Commitments have terminated or expired, and
none of the Loan Parties shall exercise any right or remedy under this Section 7.10 against
any other Loan Party until such time as all Obligations have been performed and paid in full in
cash and all Commitments have been terminated. For purposes of this Section 7.10, (a)
“Excess Payment” shall mean the amount paid by any Loan Party in excess of its Pro Rata Share of
any Obligations; (b) “Pro Rata Share” shall mean, for any Loan Party in respect of any payment of
the Obligations, the ratio (expressed as a percentage) as of the date of such payment of
Obligations of (i) the amount by which the aggregate present fair salable value of all of its
assets and properties exceeds the amount of all debts and liabilities of such Loan Party (including
contingent, subordinated, un-matured, and un-liquidated liabilities, but excluding the Obligations
of such Loan Party) to (ii) the amount by which the aggregate present fair salable value of its
assets and
other properties of all Loan Parties exceeds the amount of all of the debts and liabilities
(including contingent, subordinated, un-matured, and un-liquidated liabilities, but excluding the
Obligations of all Loan Parties) of the Loan Parties; and (c) “Contribution Share” shall mean, for
any Loan Party in respect of any Excess Payment made by any other Loan Party, the ratio (expressed
as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate
present fair salable value of all of its assets and properties exceeds the amount of all debts and
liabilities of such Loan Party (including contingent, subordinated, un-matured, and un-liquidated
liabilities, but excluding the Obligations of such Loan Party) to (ii) the amount by which the
aggregate present fair salable value of all assets and other properties of the Loan Parties other
than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities
(including contingent, subordinated, un-matured, and un-liquidated liabilities, but excluding the
Obligations of the Loan Parties) of the Loan Parties other than the maker of such Excess Payment.
Nothing in this Section 7.10 shall require any Loan Party to pay its Contribution Share of
any Excess Payment in the absence of a demand therefor by the Loan Party that has made the Excess
Payment. Without limiting the foregoing in any manner, it is the intent of the parties hereto that
as of any date of determination, no Contribution Amount of any Loan Party shall be greater than the
maximum amount of the claim which could then be recovered from such Loan Party under this
Section 7.10 without rendering such claim voidable or avoidable under Section 548 of
Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law.

          (b) This Section 7.10 is intended only to define the relative rights of the Loan
Parties and nothing set forth in this Section 7.10 is intended to or shall impair the
obligations of the Loan Parties, jointly and severally, to pay any amounts and perform any
obligations as and when the same shall become due and payable or required to be performed in
accordance with the terms of this Agreement or any other Loan Document. Nothing contained in this
Section 7.10 shall limit the liability of Borrower to pay the Loans and other Credit
Extensions made to Borrower and accrued interest, Fees and expenses with respect thereto for which
Borrower shall be primarily liable.

          (c) The parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Loan Parties to which such contribution and
indemnification is owing.

          (d) The rights of any indemnified Loan Party against the other Loan Parties under this
Section 7.10 shall be exercisable upon, but shall not be exercisable prior to, the full and
indefeasible payment of the Obligations and termination or expiration of the Commitments under the
Loan Documents.

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ARTICLE VIII

EVENTS OF DEFAULT

     Section 8.01 Events of Default. Upon the occurrence and during the continuance of any of the following events (each, an “Event
of Default”):

          (a) default shall be made in the payment of any principal of any Loan or any Reimbursement
Obligation when and as the same shall become due and payable, whether at the due date thereof or at
a date fixed for mandatory prepayment thereof or by acceleration thereof or otherwise;

          (b) default shall be made in the payment of any interest on any Credit Extension or any Fee or
any other amount (other than an amount referred to in paragraph (a) above) due under any Loan
Document, when and as the same shall become due and payable, whether at the due date thereof
(including an Interest Payment Date) or at a date fixed for prepayment (whether voluntary or
mandatory) or by acceleration or demand thereof or otherwise, and such default shall continue
unremedied for a period of three Business Days or a Borrowing Base Deficiency shall have occurred
and be continuing for a period equal to or exceeding five Business Days;

          (c) any representation or warranty made or deemed made in or in connection with any Loan
Document or the Borrowings or issuances of Letters of Credit hereunder, or any representation,
warranty, statement or information contained in any report, certificate, financial statement or
other instrument furnished in connection with or pursuant to any Loan Document, shall prove to have
been false or misleading in any material respect when so made, deemed made or furnished;

          (d) default shall be made in the due observance or performance by any Company of any covenant,
condition or agreement contained in Section 5.01(a), 5.01(b), 5.02 (other than clause (a)
thereof), 5.03(a), 5.08, 5.11 or 5.16 or in Article VI;

          (e) default shall be made in the due observance or performance by any Company of any covenant,
condition or agreement contained in any Loan Document (other than those specified in paragraphs
(a), (b) or (d) immediately above) and such default shall continue unremedied or shall not be
waived for a period of 30 days (or (A) five days in the case of the Fee Letter or (B) ten days in
the case of any covenant, condition or agreement contained in Section 5.01 (other than
clause (a) or clause (b) thereof)) or Section 5.04 after the occurrence thereof;

          (f) any Company shall (i) fail to pay any principal or interest, regardless of amount, due in
respect of any Indebtedness (other than the Obligations), when and as the same shall become due and
payable beyond any applicable grace period, or (ii) fail to observe or perform any other term,
covenant, condition or agreement contained in any agreement or instrument evidencing or governing
any such Indebtedness if the effect of any failure referred to in this clause (ii) is to cause, or
to permit the holder or holders of such Indebtedness or a trustee or other representative on its or
their behalf (with or without the giving of notice, the lapse of time or both) to cause, such
Indebtedness to become due prior to its stated maturity or become subject to a mandatory offer to
purchase by the obligor; provided that it shall not constitute an Event of Default pursuant to this
paragraph (f) unless the aggregate amount of all such Indebtedness referred to in clauses (i) and
(ii) individually exceeds $2,500,000 at any one time (provided that, in the case of Hedging
Obligations, the notional amount thereof shall be counted for this purpose);

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          (g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (i) relief in respect of any Company or of a substantial
part of the property of any Company, under Title 11 of the United States Code, as now constituted
or hereafter amended, or any other federal, state or foreign bankruptcy, insolvency, receivership
or similar Legal Requirement; (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Company or for a substantial part of the property of any
Company; or (iii) the winding-up or liquidation of any Company; and such proceeding or petition
shall continue undismissed for 90 days or an Order approving or ordering any of the foregoing shall
be entered;

          (h) any Company shall (i) voluntarily commence any proceeding or file any petition seeking
relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any
other federal, state or foreign bankruptcy, insolvency, receivership or similar Legal Requirement;
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in clause (g) above; (iii) apply for or consent
to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for any Company or for a substantial part of the property of any Company; (iv) file an answer
admitting the material allegations of a petition filed against it in any such proceeding; (v) make
a general assignment for the benefit of creditors; (vi) become unable, admit in writing its
inability or fail generally to pay its debts as they become due; (vii) except as permitted in
Section 6.05, wind up or liquidate; or (viii) take any action for the purpose of effecting
any of the foregoing;

          (i) one or more Orders for the payment of money in an aggregate amount in excess of $2,500,000
(to the extent not adequately covered by insurance in respect of which a solvent and unaffiliated
insurance company has acknowledged coverage in writing) shall be rendered against any Company or
any combination thereof and the same shall remain undischarged, unvacated or unbonded for a period
of 90 consecutive days during which execution shall not be effectively stayed, or any action shall
be legally taken by a judgment creditor to levy upon properties of any Company to enforce any such
Order;

          (j) one or more ERISA Events shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other such ERISA Events that have occurred, could reasonably be
expected to result in liability of any Company and its ERISA Affiliates in an aggregate amount
exceeding $2,500,000 or the imposition of a Lien on any properties of a Company;

          (k) any security interest and Lien in any material portion of the Collateral purported to be
created by any Security Document shall cease to be in full force and effect, or shall cease to give
the Collateral Agent, for the benefit of the Secured Parties, the Liens, rights, powers and
privileges purported to be created and granted under such Security Documents (including a valid,
enforceable, perfected first priority (except as otherwise provided in this Agreement or any
Security Document) security interest in and Lien on, all of the Collateral thereunder (except as
otherwise expressly provided in this Agreement or such Security Document)) in favor of the
Collateral Agent, or shall be asserted by or on behalf of any Company not to be, a valid,
enforceable, perfected, first priority (except as otherwise expressly provided in this Agreement or
such Security Document) security interest in or Lien on the Collateral covered thereby; provided
that it will not be an Event of Default under this paragraph (k) if the Collateral Agent shall not
have or shall cease to have a valid, enforceable and perfected first priority Lien on any
Collateral purported to be covered by the Security Documents, individually or in the aggregate,
having a Fair Market Value of less than $2,500,000;

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          (l) any Loan Document or any material provisions thereof shall at any time and for any reason
be declared by a court of competent jurisdiction to be null and void, or a proceeding shall be
commenced by or on behalf of any Loan Party or any other person, or by any Governmental Authority,
seeking to establish the invalidity or unenforceability thereof (exclusive of questions of
interpretation of any provision thereof), or any Company (directly or indirectly) shall repudiate
or deny any portion of its liability or obligation for the Obligations;

          (m) there shall have occurred a Change of Control;

          (n) there shall have occurred the termination of, or the receipt by any Company of notice of
the termination of, or the occurrence of any event or condition which would, with the passage of
time or the giving of notice or both, constitute an event of default under or permit the
termination of, any one or more Material Agreements, Company Health Care Permits, Company
Accreditations or Company Reimbursement Approvals of any Company, except for terminations that
could not be expected to have a Material Adverse Effect; or

          (o) [Intentionally Omitted];

          (p) any Company or any of their directors or officers is criminally convicted under any law or
Legal Requirement that could lead to a forfeiture of any Collateral or exclusion from participation
in any federal or state health care program, including Medicare or Medicaid, and could reasonably
be expected to result in a Material Adverse Effect

then, and in every such event (other than an event with respect to Borrower described in paragraph
(g) or (h) above), and at any time thereafter during the continuance of such event (which shall
occur for all purposes hereunder, including without limitation, with respect to Section 6.10, as of
the date of occurrence or breach and not the date of reporting thereof), the Administrative Agent
may, and at the request of the Required Lenders shall, by notice to Borrower, take either or both
of the following actions, at the same or different times: (i) terminate forthwith the Commitments
and (ii) declare the Loans and Reimbursement Obligations then outstanding to be forthwith due and
payable in whole or in part, whereupon the principal of the Loans and Reimbursement Obligations so
declared to be due and payable, together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of the Loan Parties accrued hereunder and under any other Loan Document,
shall become forthwith due and payable, without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by the Loan Parties, anything contained herein
or in any other Loan Document or otherwise to the contrary notwithstanding; and in any event with
respect to Borrower described in paragraph (g) or (h) above, the Commitments shall automatically
terminate and the principal of the Loans and Reimbursement Obligations then outstanding, together
with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Loan
Parties accrued hereunder and under any other Loan Document, shall automatically become due and
payable, without presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by the Loan Parties, anything contained herein or in any other Loan
Document or otherwise to the contrary notwithstanding. No remedy and no waiver, modification or
amendment of an Event of Default shall be effective unless in writing and otherwise in conformance
with the requirements of Section 11.02.

     Section 8.02 Rescission. If at any time after termination of the Commitments or acceleration of the maturity of the
Loans, the Loan Parties shall pay all arrears of interest and all payments on account of principal
of the Loans and Reimbursement Obligations owing by them that shall have become

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due otherwise than
by acceleration (with interest on principal and, to the extent permitted by law, on overdue
interest, at the rates specified herein) and all Defaults (other than non-payment of principal of
and accrued interest on the Loans due and payable solely by virtue of acceleration) shall be
remedied or waived pursuant to Section 11.02, then upon the written consent of the Required
Lenders (which may be given or withheld in their sole discretion) and written notice to Borrower,
the termination of the Commitments or the acceleration and their consequences may be rescinded and
annulled; but such action shall not affect any subsequent Default or impair any right or remedy
consequent thereon. The provisions of the preceding
sentence are intended merely to bind the Lenders, the Issuing Bank and the other Secured Parties to
a decision that may be made at the election of the Required Lenders, and such provisions are not
intended to benefit Borrower and the other Loan Parties and do not give Borrower and/or any of the
Loan Parties the right to require the Lenders to rescind or annul any acceleration hereunder, even
if the conditions set forth herein are met.

ARTICLE IX

COLLECTION ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS

     Section 9.01 Collection Account. (a) Each Loan Party shall deposit into the Collection Account from time to time all Collections
and any cash that such Loan Party is required to pledge as additional collateral security hereunder
pursuant to the Loan Documents.

          (b) The balance from time to time in the Collection Account shall constitute part of the
Collateral and shall not constitute payment of the Obligations until applied as hereinafter
provided. So long as no Event of Default has occurred and is continuing or will result therefrom,
all funds in the Collection Account shall be applied as set forth in the Collateral Management
Agreement At any time following the occurrence and during the continuance of an Event of Default,
the Collateral Agent may (and, if instructed by the Required Lenders as specified herein, shall) in
its (or their) discretion apply or cause to be applied (subject to collection) the balance from
time to time outstanding to the credit of the Collection Account to the payment of the Obligations
in the manner specified in Section 9.02 subject, however, in the case of amounts deposited
in the LC Sub-Account, to the provisions of Section 2.18(i). The Loan Parties shall have
no right to withdraw, transfer or otherwise receive any funds deposited in the Collection Account
except to the extent specifically provided herein or the Collateral Management Agreement.

          (c) Amounts deposited into the Collection Account as cover for liabilities in respect of
Letters of Credit under any provision of this Agreement requiring such cover shall be held by the
Administrative Agent in a separate sub-account designated as the “LC Sub-Account” (the “LC
Sub-Account”) and, subject to Section 2.18(i), all amounts held in the LC Sub-Account shall
constitute collateral security to be applied in accordance with Section 2.18(i). So long
as no Event of Default has occurred and is continuing or will result therefrom, the Collateral
Agent shall within two Business Days of receiving a request of the applicable Loan Party for
release of cash proceeds with respect to the LC Sub-Account, remit such cash proceeds on deposit in
the LC Sub-Account to or upon the order of such Loan Party (x) at such time as all Letters of
Credit shall have been terminated and all of the liabilities in respect of the Letters of Credit
have been paid in full or (y) otherwise in accordance with Section 2.18(i).

     Section 9.02 Application of Proceeds. The proceeds received by the Collateral Agent in respect of any sale of, collection from or
other realization upon all or any part of the Collateral pursuant to the exercise by the Collateral
Agent of its remedies shall be applied, in full or in part, together with

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any other sums then held
or received by the Collateral Agent pursuant to this Agreement, the Collateral Management Agreement
or any other Loan Document, promptly by the Collateral Agent as follows:

          (a) First, to the payment of all reasonable costs and expenses, fees, commissions and taxes of
such sale, collection or other realization including compensation to the Collateral Agent and
its agents and counsel, and all expenses, liabilities and advances made or incurred by the
Collateral Agent in connection therewith and all amounts for which the Collateral Agent is entitled
to indemnification pursuant to the provisions of any Loan Document, together with interest on each
such amount at the highest rate then in effect under this Agreement from and after the date such
amount is due, owing or unpaid until paid in full;

          (b) Second, to the payment of all other reasonable costs and expenses of such sale, collection
or other realization including compensation to the other Secured Parties and their agents and
counsel and all costs, liabilities and advances made or incurred by the other Secured Parties in
connection therewith, together with interest on each such amount at the highest rate then in effect
under this Agreement from and after the date such amount is due, owing or unpaid until paid in
full;

          (c) Third, without duplication of amounts applied pursuant to clauses (a) and (b) above, to
the indefeasible payment in full in cash, pro rata, of interest and other amounts constituting
Obligations (other than principal, Reimbursement Obligations and Hedging Obligations) in each case
equally and ratably in accordance with the respective amounts thereof then due and owing;

          (d) Fourth, to the indefeasible payment in full in cash, pro rata, of the principal amount of
the Obligations then due and payable (including any Borrowing Base Deficiency and Reimbursement
Obligations);

          (e) Fifth, to Hedging Obligations to the extent secured by Liens on the Collateral and
constituting Obligations of the type described in clause (c) of the definition of Obligations; and

          (f) Sixth, the balance, if any, to the person lawfully entitled thereto (including the
applicable Loan Party or its successors or assigns) or as a court of competent jurisdiction may
direct.

     In the event that any such proceeds are insufficient to pay in full the items described in
clauses (a) through (f) of this Section 9.02, the Loan Parties shall remain liable, jointly
and severally, for any deficiency.

ARTICLE X

THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

     Section 10.01 Appointment. (a) Each Lender and the Issuing Bank hereby irrevocably designates and appoints Healthcare
Finance Group, LLC as the Administrative Agent and the Collateral Agent as an agent of such Lender
under this Agreement and the other Loan Documents. Each Lender irrevocably authorizes each Agent,
in such capacity, through its agents or employees, to take such actions on its behalf under the
provisions of this Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are delegated to such Agent by the terms of this Agreement and the other Loan
Documents, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article X are solely for the benefit of the Agents, the Lenders and the
Issuing Bank, and no Loan Party shall have rights as a third party beneficiary of any such
provisions.

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          (b) Each Lender irrevocably appoints each other Lender as its agent and bailee for the purpose
of perfecting Liens (whether pursuant to Section 8-301(a)(2) of the UCC or otherwise), for the
benefit of the Secured Parties, in assets which, in accordance with the UCC or any other applicable
Legal Requirement, a security interest can be perfected by possession or control. Should any
Lender (other than the Collateral Agent) obtain possession or control of any such Collateral, such
Lender shall notify the Collateral Agent thereof, and, promptly following the Collateral Agent’s
request therefor, shall deliver such Collateral to the Collateral Agent or otherwise deal with such
Collateral in accordance with the Collateral Agent’s instructions.

     Section 10.02 Agent in Its Individual Capacity. Each person serving as an Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such
person and its Affiliates may accept deposits from, lend money to, act as financial advisor or in
any other advisory capacity for, and generally engage in any kind of business with, any Company or
Affiliate thereof as if it were not an Agent hereunder and without duty to account therefor to the
Lenders or the Issuing Bank.

     Section 10.03 Exculpatory Provisions. No Agent shall have any duties or obligations except those expressly set forth in the Loan
Documents. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing,
(b) no Agent shall have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the Loan Documents that
such Agent is required to exercise in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 11.02); provided that no Agent shall be required to take any action that, in its
opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to
any Loan Document or applicable Legal Requirements, and (c) except as expressly set forth in the
Loan Documents, no Agent shall have any duty to disclose or shall be liable for the failure to
disclose, any information relating to any Company that is communicated to or obtained by the person
serving as such Agent or any of its Affiliates in any capacity. No Agent shall be liable for any
action taken or not taken by it with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as any Agent shall believe in
good faith shall be necessary, under the circumstances as provided in Section 11.02) or in
the absence of its own gross negligence or willful misconduct as found by a final and nonappealable
judgment of a court of competent jurisdiction. No Agent shall be deemed to have knowledge of any
Default unless and until written notice thereof is given to such Agent by Borrower, a Lender, or
the Issuing Bank, and no Agent shall be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with any Loan Document,
(ii) the contents of any certificate, report or other document delivered thereunder or in
connection therewith, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth in any Loan Document or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document. Without limiting the generality of the foregoing, the use of the
term “agent” in this Agreement with reference to the Administrative Agent or the Collateral Agent
is not intended to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable law. Instead, such term is used merely as a matter of market
custom and is intended to create or reflect only an administrative relationship between independent
contracting parties. Each party to this Agreement acknowledges and agrees that the Administrative
Agent may from time to time use one or more outside service providers for the tracking
of all UCC

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financing statements (and/or other collateral related filings and registrations from
time to time) required to be filed or recorded pursuant to the Loan Documents and the notification
to the Administrative Agent, of, among other things, the upcoming lapse or expiration thereof, and
that each of such service providers will be deemed to be acting at the request and on behalf of
Borrower and the other Loan Parties. No Agent shall be liable for any action taken or not taken by
any such service provider.

     Section 10.04 Reliance by Agent. Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent, or otherwise authenticated by a proper
person. Each Agent also may rely upon any statement made to it orally and believed by it to be
made by a proper person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank,
each Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank
unless each Agent shall have received written notice to the contrary from such Lender or the
Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent
may consult with legal counsel (who may be counsel for Borrower), independent accountants and other
advisors selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or advisors.

     Section 10.05 Delegation of Duties. Each Agent may perform any and all of its duties and exercise its rights and powers by or
through, or delegate any and all such rights and powers to, any one or more sub-agents appointed by
such Agent. Each Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Affiliates. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Affiliates of each Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Agent.

     Section 10.06 Successor Agent. Each Agent may resign as such at any time upon at least 30 days’ prior notice to the Lenders,
the Issuing Bank and Borrower. Upon any such resignation, the Required Lenders shall have the
right, in consultation with Borrower, to appoint a successor Agent from among the Lenders. If no
successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its resignation, then the
retiring Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Agent, which
successor shall be a commercial banking institution organized under the laws of the United States
(or any State thereof) or a United States branch or agency of a commercial banking institution, in
each case, having combined capital and surplus of at least $500,000,000; provided that if such
retiring Agent is unable to find a commercial banking institution that is willing to accept such
appointment and which meets the qualifications set forth above, the retiring Agent’s resignation
shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the
duties of the Agent under the Loan Documents until such time, if any, as the Required Lenders
appoint a successor Agent.

     Upon the acceptance of its appointment as an Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring (or retired) Agent shall be discharged from its duties and
obligations under the Loan Documents. The fees payable by Borrower to a successor Agent shall be
the same as those payable

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to its predecessor unless otherwise agreed between Borrower and such
successor. After an Agent’s resignation hereunder, the provisions of this Article X,
Section 11.03 and Sections 11.08 to 11.10 shall continue in effect for the
benefit of such retiring Agent, its sub-agents and their respective Affiliates in respect of any
actions taken or omitted to be taken by any of them while it was acting as Agent.

     Section 10.07 Non-Reliance on Agent and Other Lenders. Each Lender and the Issuing Bank acknowledges that it has, independently and without reliance
upon any Agent or any other Lender or any of their respective Affiliates and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender further represents and warrants that it has reviewed the
Confidential Information Memorandum and each other document made available to it on the Platform in
connection with this Agreement and has acknowledged and accepted the terms and conditions
applicable to the recipients thereof (including any such terms and conditions set forth, or
otherwise maintained, on the Platform with respect thereto). Each Lender and the Issuing Bank also
acknowledges that it will, independently and without reliance upon any Agent or any other Lender or
any of their respective Affiliates and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or related agreement or any document
furnished hereunder or thereunder.

     Section 10.08 Name Agents. Borrower hereby consents and acknowledges that the Administrative Agent may designate one or
more Lenders from time to time as a “Document Agent” hereunder. Any Document Agent shall hold its
title in name only, and that its title confers no additional rights or obligations relative to
those conferred on any Lender or the Issuing Bank hereunder.

     Section 10.09 Indemnification. The Lenders severally agree to indemnify each Agent in its capacity as such and each of its
Related Persons (to the extent not reimbursed by Borrower or the Subsidiary Guarantors and without
limiting the obligation of Borrower or the Subsidiary Guarantors to do so), ratably according to
their respective outstanding Loans and Commitments in effect on the date on which indemnification
is sought under this Section 10.09 (or, if indemnification is sought after the date upon
which all Commitments shall have terminated and the Loans and Reimbursement Obligations shall have
been paid in full, ratably in accordance with such outstanding Loans and Commitments as in effect
immediately prior to such date), from and against any and all liabilities, obligations, losses,
damages, fines, penalties, actions, claims, suits, litigations, investigations, inquiries or
proceedings, costs, expenses or disbursements of any kind whatsoever that may at any time (whether
before or after the payment of the Loans and Reimbursement Obligations) be imposed on, incurred by
or asserted against such Agent or Related Person in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or
referred to herein or therein, the Transactions, the Restatement Transactions or any of the other
transactions contemplated hereby or thereby or any action taken or omitted by such Agent or Related
Person under or in connection with any of the
foregoing (IN ALL CASES, WHETHER OR NOT CAUSED OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF ANY AGENT OR RELATED PERSON); provided that no
Lender shall be liable for the payment of any portion of such liabilities, obligations, losses,
damages, fines, penalties, actions, claims, suits, litigations, inquiries or proceedings, costs,
expenses or disbursements that are found by a final and nonappealable judgment of a court of
competent jurisdiction to have directly resulted solely from such Agent’s or Related Person’s, as
the case may be, gross negligence or willful misconduct. The agreements in this Section
10.09 shall survive the payment of the Loans and all other amounts payable hereunder.

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ARTICLE XI

MISCELLANEOUS

     Section 11.01 Notices.

          (a) Notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
facsimile transmission, as follows:

if to any Loan Party, to Borrower at:

BioScrip, Inc.

100 Clearbrook Road

Elmsford, New York 10523

Attention: Chief Executive Officer

Facsimile No.: (914) 460-1660

and to:

King & Spalding LLP

1185 Avenue of the Americas

New York, New York 10036

Attention: E. William Bates II. Esq.

Facsimile No.: (212) 556-2222

if to the Swingline Lender, Administrative Agent, the Collateral Agent,
Collateral Manager, at:

Healthcare Finance Group, LLC

199 Water Street, 31st Floor

New York, New York 10038

Attention: Chief Credit Officer and

                 National Portfolio Manager

Facsimile: (212) 785-8501

and to:

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: Terry D. Novetsky, Esq.

Facsimile No.: (212) 836-6490

if to a Lender, to it at its address (or telecopy number) set forth on
Annex II(A) or in the Assignment and Acceptance pursuant to which
such Lender shall have become a party hereto; and

All notices and other communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or
overnight

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courier service or sent by telecopy or by certified or registered mail, in each case
delivered, sent or mailed (properly addressed) to such party as provided in this Section
11.01 or in accordance with the latest unrevoked direction from such party given in accordance with
this Section 11.01, and failure to deliver courtesy copies of notices and other
communications shall in no event affect the validity or effectiveness of such notices and other
communications.

Notices delivered through electronic communications to the extent provided in Section
11.01(b) below, shall be effective as provided in Section 11.01(b).

          (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Bank hereunder may (subject to Section 11.01(d)) be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not apply to
notices to any Lender or the Issuing Bank pursuant to Article II if such Lender or the
Issuing Bank, as applicable, has notified the Administrative Agent (in a manner set forth in
Section 11.01(a)) that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent, the Collateral Agent or Borrower may, in their
respective sole discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures, respectively, approved by it (including as set
forth in Section 11.01(d)); provided that approval of such procedures may be limited to
particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (including by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

          (c) Change of Address, etc. Any party hereto may change its address, facsimile number
or e-mail address for notices and other communications hereunder by notice to the other parties
hereto.

          (d) Posting. Each Loan Party hereby agrees that it will provide to the Administrative
Agent all information, documents and other materials that it is obligated to furnish to the
Administrative Agent pursuant to this Agreement and any other Loan Document, including all notices,
requests, financial statements, financial and other reports, certificates and other information
materials, but excluding any such communication that (i) relates to a request for a new, or a
conversion of an existing, Borrowing or other extension of credit (including any election of an
interest rate or interest period relating thereto), (ii) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice
of any Default under this Agreement or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit
hereunder (all such non-excluded communications, collectively, the “Communications”), by
transmitting the Communications in an electronic/soft medium in a format reasonably acceptable to
the Administrative Agent at such e-mail address(es) provided to Borrower by the Administrative
Agent from time to time or in such other form, including hard copy

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delivery thereof, as the
Administrative Agent shall require. In addition, each Loan Party agrees to continue to provide the
Communications to the Administrative Agent in the manner specified in this Agreement or any other
Loan Document or in such other form, including hard copy delivery thereof, as the Administrative
Agent shall require. Nothing in this Section 11.01 shall prejudice the right of the
Agents, any Lender, the Issuing Bank or any Loan Party to give any notice or other communication
pursuant to this Agreement or any other Loan Document in any other manner specified in this
Agreement or any other Loan Document or as any such Agent shall reasonably require.

     To the extent consented to by the Administrative Agent in writing from time to time, the
Administrative Agent agrees that receipt of the Communications by the Administrative Agent at its
e-mail address(es) set forth above shall constitute effective delivery of the Communications to the
Administrative Agent for purposes of the Loan Documents; provided that Borrower shall also deliver
to the Administrative Agent an executed original of each Compliance Certificate required to be
delivered hereunder.

     Each Loan Party further agrees that the Administrative Agent may make the Communications
available to the other Agents, the Lenders or the Issuing Bank by posting the Communications on
IntraLinks, SyndTrak or a substantially similar electronic transmission system (the “Platform”).
The Platform is provided “as is” and “as available.” The Agents do not warrant the accuracy or
completeness of the Communications, or the adequacy of the Platform and expressly disclaim
liability for errors or omissions in the communications. No warranty of any kind, express, implied
or statutory, including, without limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or freedom from viruses or other code
defects, is made by any Agent in connection with the Communications or the Platform.

     Section 11.02 Waivers; Amendment. (a) No failure or delay by any Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of each Agent, the Issuing Bank and
the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any provision of any Loan
Document (other than any Hedging Agreement) or consent to any departure by any Loan Party therefrom
shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section 11.02, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a
Letter of Credit shall not be construed as a waiver of any Default, regardless of whether any
Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended, supplemented or modified except, in the case of this Agreement, pursuant to an
agreement or agreements in writing entered into by Borrower and the Required Lenders or, in the
case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by
the Administrative Agent, the Collateral Agent (in the case of any Security Document) and the Loan
Party or Loan Parties that are parties thereto, in each case with the written consent of the
Required Lenders; provided that no such agreement shall:

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          (i) increase the Commitment of any Lender without the written consent of such Lender;

          (ii) reduce the principal amount or premium, if any, of any Loan or LC Disbursement or
reduce the rate of interest thereon (other than waiver of any increase in the rate of
interest pursuant to Section 2.06(c)), or reduce any Fees payable hereunder, or
change the currency of payment of any Obligation, without the written consent of each Lender
directly affected thereby;

          (iii) postpone or extend the maturity of any Loan, or the required date of payment of
any Reimbursement Obligation, or any date for the payment of any interest or fees payable
hereunder, or reduce the amount of, waive or excuse any such payment (other than a waiver of
any increase in the rate of interest pursuant to Section 2.06(c)), or postpone the
scheduled date of expiration of any Commitment or postpone the scheduled date of expiration
of any Letter of Credit beyond the Letter of Credit Expiration Date, without the written
consent of each Lender directly affected thereby;

          (iv) change Section 11.04(b) in a manner which further restricts assignments
thereunder without the written consent of each Lender

          (v) change Section 2.14(b) or (c) or Section 9.02 in a manner
that would alter the order of or the pro rata sharing of payments or setoffs required
thereby, without the written consent of each Lender;

          (vi) change the percentage set forth in the definition of “Required Lenders” or any
other provision of any Loan Document (including this Section 11.02) specifying the
number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify
any rights thereunder or make any determination or grant any consent thereunder, without the
written consent of each Lender (or each Lender of such Class, as the case may be);

          (vii) release all or substantially all of the Subsidiary Guarantors from their
Guarantees (except as expressly provided in Article VII), or limit their liability
in respect of such Guarantees, without the written consent of each Lender;

          (viii) except as otherwise permitted in any Security Document or by Section
6.06, release all or substantially all the Collateral from the Liens of the Security
Documents or alter the relative priorities of the Obligations entitled to the Liens of the
Security Documents (except in connection with securing additional Obligations equally and
ratably with the other Obligations), in each case without the written consent of each
Lender;

          (ix) change any provisions of any Loan Document in a manner that by its terms adversely
affects the rights in respect of payments due to Lenders holding Loans of any Class
differently than those holding Loans of any other Class, without the written consent of
Lenders holding a majority in interest of the outstanding Loans and unused Commitments of
each adversely affected Class;

          (x) change any provisions in Section 2.17 without the written consent of the
Swingline Lender or change any provisions in Section 2.18 without the written
consent of the Issuing Lender;

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          (xi) change the Collateral Management Agreement, without the consent of the Collateral
Manager.

provided, further, that (1) no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent, the Collateral Agent, the Collateral Manager, the Issuing Bank
or the Swingline Lender without the prior written consent of the Administrative Agent, the
Collateral Manager, the Issuing Bank or the Swingline Lender, as the case may be, (2) any waiver,
amendment or modification of this Agreement that by its terms affects the rights or duties under
this Agreement of the Revolving Lenders may be effected by an agreement or agreements in writing
entered into by Borrower and the requisite percentage in interest of the Revolving Lenders under
this Section 11.02, and (3) any waiver, amendment or modification prior to the achievement
of a successful syndication of the credit facilities provided herein (as determined by the Arranger
in its sole discretion) may not be effected without the written consent of the Arranger.
Notwithstanding the foregoing, any provision of this Agreement may be amended by an agreement in
writing entered into by Borrower, the Required Lenders and the Administrative Agent (and, if their
rights or obligations are affected thereby, the Issuing Bank and the Swingline Lender) if (x) by
the terms of such agreement the Commitment of each Lender not consenting to the amendment provided
for therein shall terminate upon the effectiveness of such amendment, (y) at the time such
amendment becomes effective, each Lender not consenting thereto receives payment in full of the
principal of, premium, if any, and interest accrued on each Loan made by it and all other amounts
owing to it or accrued for its account under this Agreement, and (z) Section 2.16(b) is
complied with.

Without the consent of any other person, the applicable Loan Party or Loan Parties and the
Administrative Agent and/or Collateral Agent may (in its or their respective sole discretion, or
shall, to the extent required by any Loan Document) enter into any amendment or waiver of any Loan
Document, or enter into any new agreement or instrument, to effect the granting, perfection,
protection, expansion or enhancement of any security interest in any Collateral or additional
property to become Collateral for the benefit of the Secured Parties, or as required by applicable
Legal Requirements to give effect to, or protect any security interest for the benefit of the
Secured Parties, in any property or assets so that the security interests therein comply with
applicable Legal Requirements.

     Section 11.03 Expenses; Indemnity. (a) The Loan Parties agree, jointly and severally, to pay, promptly upon demand:

          (i) all reasonable costs and expenses incurred by the Arranger, the Administrative
Agent, the Collateral Agent, the Collateral Manager, the Swingline Lender and the Issuing
Bank, including the reasonable fees, charges and disbursements of Advisors for the Arranger,
the Administrative Agent, the Collateral Agent, the Collateral Manager, the Swingline Lender
and the Issuing Bank, in connection with the syndication of the Loans and Commitments, the
preparation, negotiation, execution and delivery of the Loan Documents, the administration
of the Credit Extensions and Commitments (including with respect to the establishment and
maintenance of a Platform), the perfection and maintenance of the Liens securing the
Collateral and any actual or proposed amendment, supplement or waiver of any of the Loan
Documents (whether or not the transactions contemplated hereby or thereby shall be
consummated);

          (ii) all costs and expenses incurred by the Administrative Agent, the Collateral
Manager and the Collateral Agent, including the fees, charges and disbursements of Advisors
for the Administrative Agent, the Collateral Manager, and the Collateral Agent, in

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connection with any action, claim, suit, litigation, investigation, inquiry or proceeding
affecting the Collateral or any part thereof, in which action, claim, suit, litigation,
investigation, inquiry or proceeding the Administrative Agent, the Collateral Manager, or
the Collateral Agent is made a party or participates or in which the right to use the
Collateral or any part thereof is threatened, or in which it becomes necessary in the
judgment of the Administrative Agent, the Collateral Manager, or the Collateral Agent to
defend or uphold the Liens granted by the Security Documents (including any action, claim,
suit, litigation, investigation, inquiry or proceeding to establish or uphold the compliance
of the Collateral with any Legal Requirements);

          (iii) all costs and expenses incurred by the Arranger, the Administrative Agent, the
Collateral Agent, the Collateral Manager, any other Agent, the Swingline Lender, the Issuing
Bank or any Lender, including the fees, charges and disbursements of Advisors for any of the
foregoing, incurred in connection with the enforcement or protection of its rights under the
Loan Documents, including its rights under this Section 11.03(a), or in connection
with the Loans made or Letters of Credit issued hereunder and the collection of the
Obligations, including all such costs and expenses incurred during any workout,
restructuring or negotiations in respect of the Obligations; and

          (iv) all Other Taxes in respect of the Loan Documents.

          (b) The Loan Parties agree, jointly and severally, to indemnify the Agents, each Lender, the
Issuing Bank and the Swingline Lender, each Affiliate of any of the foregoing persons and each
Related Person of each of the foregoing (each such person being called an “Indemnitee”) against,
and to hold each Indemnitee harmless from, all reasonable out-of-pocket costs and any and all
losses, claims, damages, liabilities, fees, fines, penalties, actions, judgments, suits and related
expenses, including reasonable Advisors fees, charges and disbursements (collectively, “Claims”),
incurred by or asserted against any Indemnitee, directly or indirectly, arising out of, in any way
connected with, or as a result of (i) the execution, delivery, performance, administration or
enforcement of the Loan Documents or any agreement or instrument contemplated thereby or the
performance by the parties thereto of their respective obligations thereunder, (ii) any actual or
proposed use of the proceeds of the Loans or issuance of Letters of Credit, (iii) any claim,
litigation, investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto, (iv) any actual or alleged presence or
Release or threatened Release of Hazardous Materials, on, at, under or from any property
owned, leased or operated by any Company at any time, or any Environmental Claim or threatened
Environmental Claim related in any way to any Company, (v) any past, present or future
non-compliance with, or violation of, Environmental Laws or Environmental Permits applicable to any
Company, or any Company’s business, or any property presently or formerly owned, leased, or
operated by any Company or their predecessors in interest, (vi) the environmental condition of any
property owned, leased, or operated by any Company at any time, or the applicability of any Legal
Requirements relating to such property, whether or not occasioned wholly or in part by any
condition, accident or event caused by any act or omission of any Company, (vii) the imposition of
any environmental Lien encumbering Real Property, (viii) the consummation of the Transactions, the
Restatement Transactions and the other transactions contemplated hereby or (ix) any actual or
prospective claim, action, suit, litigation, inquiry, investigation, or proceeding relating to any
of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by any Loan Party or otherwise, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses

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are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted directly from the gross
negligence or willful misconduct of such Indemnitee.

          (c) The Loan Parties agree, jointly and severally, that, without the prior written consent of
the Administrative Agent and any affected Lender, which consent(s) will not be unreasonably
withheld, the Loan Parties will not enter into any settlement of a Claim in respect of the subject
matter of clauses (i) through (ix) of Section 11.03(b) unless such settlement includes an
explicit and unconditional release from the party bringing such Claim of all affected Indemnitees
and does not include any statement as to or an admission of fault, culpability or failure to act by
or on behalf of any Indemnitees.

          (d) The provisions of this Section 11.03 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the consummation of the
Transactions, the Restatement Transactions and the other transactions contemplated hereby, the
repayment of the Loans, Reimbursement Obligations and any other Obligations, the release of any
Guarantor or of all or any portion of the Collateral, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on behalf of the Agents,
the Issuing Bank or any Lender. All amounts due under this Section 11.03 shall be payable
on written demand therefor accompanied by reasonable documentation with respect to any
reimbursement, indemnification or other amount requested.

          (e) To the extent that the Loan Parties fail to pay any amount required to be paid by them to
the Agents, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section 11.03 in accordance with paragraph (g) of this Section 11.03, each Lender
severally agrees to pay to the Agents, the Issuing Bank or the Swingline Lender, as the case may
be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount (such indemnity shall be effective
whether or not the related losses, claims, damages, liabilities and related expenses are incurred
or asserted by any party hereto or any third party); provided that the unreimbursed Claim was
incurred by or asserted against any of the Agents, the Issuing Bank or the Swingline Lender in its
capacity as such. For purposes of this paragraph, a Lender’s “pro rata share” shall be determined
based upon its share of the sum of the total Revolving Exposure, outstanding and unused Commitments
at the time.

          (f) To the fullest extent permitted by applicable Legal Requirements, no Loan Party shall
assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential, or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, any Loan Document or any agreement or
instrument contemplated thereby, the Transactions, the Restatement Transactions, any Loan or Letter
of Credit or the use of the proceeds thereof. No Indemnitee shall be liable for any damages
arising from the use by unintended recipients of any information or other materials distributed by
it through telecommunications, electronic or other information transmission systems in connection
with the Loan Documents or the transactions contemplated thereby.

          (g) All amounts due under this Section 11.03 shall be payable not later than 10 days
after demand therefor.

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     Section 11.04 Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that the Loan Parties may
not assign or otherwise transfer any of their respective rights or obligations hereunder without
the prior written consent of the Administrative Agent, the Collateral Agent, the Issuing Bank, the
Swingline Lender, and each Lender which consent may be withheld in their sole discretion (and any
attempted assignment or transfer by any Loan Party without such consent shall be null and void).
Nothing in this Agreement or any other Loan Document, express or implied, shall be construed to
confer upon any person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit),
Participants to the extent expressly provided in paragraph (e) of this Section 11.04 and,
to the extent expressly contemplated hereby, the other Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Agreement or any other Loan Document.

          (b) Any Lender shall have the right at any time to assign to one or more assignees (other than
any Company or any Affiliate thereof or a natural person, or any Person (or any Affiliate of a
Person) who is a direct or indirect holder of 5% or more of the Equity Interests of Borrower) all
or a portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that:

          (i) except in the case of (A) an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, (B) any assignment made in connection with the syndication of the Commitment
and Loans by the Arranger or (C) an assignment of the entire remaining amount of the
assigning Lender’s Revolving Commitment or Revolving Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not be less than
$2,500,000;

          (ii) each partial assignment shall be made as an assignment of a proportionate part of
all of the assigning Lender’s rights and obligations under this Agreement, except that this
clause (ii) shall not be construed to prohibit the assignment of a proportionate part of all
the assigning Lender’s rights and obligations in respect of Commitments or Loans;

          (iii) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500
(which fee may be waived or reduced by the Administrative Agent in its sole discretion);
provided that such fee shall not be payable in the case of (A) an assignment by any Lender
to an Approved Fund of such Lender, (B) any assignment made in connection with the primary
syndication of the Commitments and Loans by the Arranger or (C) an assignment settled
through the Administrative Agent;

          (iv) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire;

          (v) in the case of an assignment of all or a portion of a Revolving Commitment or any
Revolving Lender’s obligations in respect of its LC Exposure or Swingline Exposure (except
in the case of an assignment to a Lender, an Affiliate of a Lender or an

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Approved Fund), the
Issuing Bank and the Swingline Lender must give its prior written consent to such assignment
(which consent shall not be unreasonably withheld, delayed or conditioned);

          (vi) except in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, the Administrative Agent must give its prior written consent to such
assignment (which consent shall not be unreasonably withheld, delayed or conditioned); and

          (vii) in the case of an assignment of all or a portion of a Revolving Commitment, a
Revolving Loan or any Revolving Lender’s obligations in respect of its LC Exposure or
Swingline Exposure (except in the case of (A) an assignment to a Lender, an Affiliate of a
Lender or an Approved Fund, or (B) any assignment made in connection with the syndication of
the Commitment and Loans by the Arranger), Borrower must give its prior written consent to
such assignment (which consent shall not be unreasonably withheld, delayed or conditioned).

     Notwithstanding the foregoing, if a Default or Event of Default has occurred and is continuing
(i) any consent of Borrower otherwise required under this paragraph shall not be required, and (ii)
any consent of the Issuing Bank and the Swingline Lender required under this paragraph (b) may be
withheld by such person in its sole discretion. Subject to acceptance and recording thereof
pursuant to paragraph (d) of this Section 11.04, from and after the effective date
specified in each Assignment and Acceptance the assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement (provided that any liability of Borrower to such
assignee under Section 2.12 or 2.15 shall be limited to the amount, if any, that
would have been payable thereunder by Borrower in the absence of such assignment, except to the
extent any such amounts are attributable to a Change in Law occurring after the date of such
assignment), and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 2.12, 2.15 and 11.03).

          (c) The Administrative Agent, acting for this purpose as an agent of Borrower, shall maintain
at one of its offices a copy of each Assignment and Acceptance delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitments of, and principal
amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive in the absence
of manifest error, and Borrower, the Administrative Agent, the Issuing Bank and the Lenders may
treat each person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by Borrower, the Issuing Bank, the Collateral Agent, the
Swingline Lender and any Lender (with respect to its own interest only), at any reasonable time and
from time to time upon reasonable prior notice.

          (d) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section 11.04 and any written consent to such assignment required by paragraph
(b) of this Section 11.04, the Administrative Agent shall reasonably promptly accept such

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Assignment and Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with the requirements of this Section
11.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with paragraph (e) of this Section 11.04.

          (e) Any Lender shall have the right at any time, without the consent of, or notice to
Borrower, the Administrative Agent, the Issuing Bank, or the Swingline Lender or any other person
to sell participations to any person (other than any Company or any Affiliate thereof or a natural
person) (a “Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) Borrower, the Administrative Agent, the Collateral Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce the Loan Documents and to approve any amendment, modification or waiver of any
provision of the Loan Documents; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment, modification or
waiver that (1) is described in clauses (i), (ii) or (iii) of the proviso to Section
11.02(b) and (2) directly affects such Participant. Subject to paragraph (f) of this
Section 11.04, each Participant shall be entitled to the benefits of Sections2.12
and 2.15 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 11.04. To the extent permitted by Legal
Requirements, each Participant also shall be entitled to the benefits of Section 11.08 as
though it were a Lender; provided that such Participant agrees in writing to be subject to
Section 2.14(c) as though it were a Lender. Each Lender shall, acting for this purpose as
an agent of Borrower, maintain at one of its offices a register for the recordation of the names
and addresses of its Participants, and the amount and terms of its participations; provided that no
Lender shall be required to disclose or share the information contained in such register with
Borrower or any other person, except as required by applicable Legal Requirements.

          (f) A Participant shall not be entitled to receive any greater payment under Section
2.12 or 2.15 than the applicable Lender would have been entitled to receive with
respect to the
participation sold to such Participant, unless the sale of the participation to such
Participant is made with the prior written consent of Borrower (which consent shall not be
unreasonably withheld or delayed). A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.15 unless Borrower is notified of
the participation sold to such Participant and such Participant agrees, for the benefit of
Borrower, to comply with Section 2.15(e) as though it were a Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank or any central bank, and this
Section 11.04 shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender from any
of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto. Without limiting the foregoing, in the case of any Lender that is a fund that invests in
bank loans or similar extensions of

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credit, such Lender may, without the consent of Borrower, the
Issuing Bank, the Swingline Lender, the Administrative Agent or any other person, collaterally
assign or pledge all or any portion of its rights under this Agreement, including the Loans and
Notes or any other instrument evidencing its rights as a Lender under this Agreement, to any holder
of, trustee for, or any other representative of holders of, obligations owed or securities issued,
by such fund, as security for such obligations or securities.

          (h) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and Borrower, the option to
provide to Borrower all or any part of any Loan that such Granting Lender would otherwise be
obligated to make to such Borrower pursuant to this Agreement; provided that (i) nothing herein
shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise
such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall
be obligated to make such Loan pursuant to the terms hereof; provided further that nothing herein
shall make the SPC a “Lender” for the purposes of this Agreement, obligate Borrower or any other
Loan Party or the Administrative Agent to deal with such SPC directly, obligate Borrower or any
other Loan Party in any manner to any greater extent than they were obligated to the Granting
Lender, or increase costs or expenses of Borrower. The Loan Parties and the Administrative Agent
shall be entitled to deal solely with, and obtain good discharge from, the Granting Lender and
shall not be required to investigate or otherwise seek the consent or approval of any SPC,
including for the approval of any amendment, waiver or other modification of any provision of any
Loan Document. The making of a Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each
party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the Granting Lender).
In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it
will not institute against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States of America or any state thereof. In addition, notwithstanding anything to the
contrary contained in this Section 11.04(h), any SPC may (i) with notice to, but without
the prior written consent of, Borrower and the Administrative Agent and without paying any
processing fee therefor, assign all or a portion of its interests in any Loans to the Granting
Lender or to any financial institutions (consented to by Borrower and the Administrative Agent)
providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to
such SPC.

          (i) The words “execution,” “signed,” “signature,” and words of like import in any Assignment
and Acceptance shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable Legal Requirement, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

     Section 11.05 Survival of Agreement. All covenants, agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the reports, certificates or other

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instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of the Loan Documents and
the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made
by any such other party or on its behalf and notwithstanding that the Agents, the Issuing Bank or
any Lender may have had notice or knowledge of any Default or incorrect representation or warranty
at the time any credit is extended hereunder, and shall continue in full force and effect as long
as any Obligation or any Letter of Credit is outstanding and so long as the Commitments have not
expired or terminated. The provisions of Article X and Sections 2.12 to 2.15,
10.06, 11.03 and 11.08 to 11.10 shall survive and remain in full
force and effect regardless of the consummation of the Transactions, the Restatement Transactions
and the other transactions contemplated hereby, the repayment of the Loans, the payment of the
Reimbursement Obligations, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

     Section 11.06 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Agreement, the Fee Letter and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. This Agreement shall become effective when it shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement
by telecopy or other electronic transmission shall be effective as delivery of a manually executed
counterpart of this Agreement.

     Section 11.07 Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of
a particular provision in a particular jurisdiction shall not invalidate such provision in any
other jurisdiction.

     Section 11.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank and
each of their respective Affiliates are hereby authorized at any time and from time to time, to the
fullest extent permitted by applicable Legal Requirements, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever currency) at any
time held and other obligations (in whatever currency) at any time owing by such Lender, the
Issuing Bank or any such Affiliate to or for the credit or the account of any Loan Party against
any and all of the obligations of any Loan Party now or hereafter existing under this Agreement or
any other Loan Documents held by such Lender or the Issuing Bank, irrespective of whether or not
such Lender shall have made any demand under this Agreement or any other Loan Document and although
such obligations may be contingent or unmatured or are owed to a branch or office of such Lender or
the Issuing Bank different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender under this Section 11.08 are in addition to other
rights and remedies (including other rights of setoff) which such Lender may have.

133

 

     Section 11.09 Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State
of New York, without regard to conflicts of law principles that would require the application of
the laws of another jurisdiction.

          (b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in
New York County and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State court or, to the extent permitted by
applicable Legal Requirements, in such federal court. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by applicable Legal
Requirements. Nothing in this Agreement or any other Loan Document or otherwise shall affect any
right that the Administrative Agent, any other Agent, the Issuing Bank or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement or any other Loan Document
against any Loan Party or its properties in the courts of any jurisdiction.

          (c) Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent
permitted by applicable Legal Requirements, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in Section 11.09(b). Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal Requirements,
the defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court.

          (d) Each party to this Agreement irrevocably consents to service of process in any action or
proceeding arising out of or relating to any Loan Document, in the manner provided for notices
(other than facsimile or email) in Section 11.01. Nothing in this Agreement or any
other Loan Document will affect the right of any party to this Agreement to serve process in any
other manner permitted by applicable Legal Requirements.

     Section 11.10 Waiver of Jury Trial. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal
Requirements, any right it may have to a trial by jury in any legal proceeding directly or
indirectly arising out of or relating to any Loan Document, the Transactions, the Restatement
Transactions or the other transactions contemplated thereby (whether based on contract, tort or any
other theory). Each party hereto (a) certifies that no representative, agent or attorney of any
other party has represented, expressly or otherwise, that such other party would not, in the event
of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other
parties hereto have been induced to enter into this Agreement by, among other things, the mutual
waivers and certifications in this Section 11.10.

     Section 11.11 Headings; No Adverse Interpretation of Other Agreements. Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement. This Agreement may not be used to
interpret any other loan or debt agreement or instrument of any Company or of any other person.
Any such loan or debt agreement or instrument may not be used to interpret this Agreement or any
other Loan Document.

134

 

     Section 11.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its and its Affiliates’ and Approved Funds’ directors, officers, employees, agents, advisors and
other representatives, including accountants, legal counsel and other advisors (it being understood
that the persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential pursuant to the terms
hereof), (b) to the extent requested by any regulatory authority or any quasi-regulatory authority
(such as the National Association of Insurance Commissioners), (c) to the extent required by
applicable Legal Requirements or by any subpoena or similar legal process or in connection with any
pledge or assignment made pursuant to Section 11.04(g), (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies under the Loan Documents or any
suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement
of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially
the same as those of this Section 11.12, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to Borrower and its obligations, (iii) any rating agency for the purpose of obtaining a
credit rating applicable to any Loan or Loan Party or (iv) any actual or prospective investor in an
SPC, (g) with the consent of Borrower or (h) to the extent such Information (i) is publicly
available at the time of disclosure or becomes publicly available other than as a result of a
breach of this Section 11.12 or (ii) becomes available to the Administrative Agent, the
Issuing Bank or any Lender on a nonconfidential basis from a source other than Borrower or any
Subsidiary. In addition, the Agents, the Issuing Bank and the Lenders may disclose the existence
of the Loan Documents and information about the Loan
Documents to market data collectors, similar service providers to the financing community, and
service providers to the Agents, the Issuing Bank and the Lenders. For the purposes of this
Section 11.12, “Information” shall mean all information received from Borrower relating to
Borrower or any of its Subsidiaries or its business that is clearly identified at the time of
delivery as confidential, other than any such information that is available to the Administrative
Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by Borrower.
Any person required to maintain the confidentiality of Information as provided in this
Section 11.12 shall be considered to have complied with its obligation to do so if such
person has exercised the same degree of care to maintain the confidentiality of such Information as
such person accords to its own confidential information.

     Section 11.13 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the
“Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender
holding such Loan in accordance with applicable Legal Requirements, the rate of interest payable in
respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the operation of this
Section 11.13 shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor)
until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to
the date of repayment, shall have been received by such Lender.

     Section 11.14 Assignment and Acceptance. Each Lender to become a party to this Agreement (other than the Administrative Agent and any
other Lender that is a signatory hereto) shall do so by

135

 

delivering to the Administrative Agent an
Assignment and Acceptance duly executed by such Lender, Borrower (if Borrower consent to such
assignment is required hereunder) and the Administrative Agent.

     Section 11.15 Obligations Absolute. To the fullest extent permitted by applicable law, all obligations of the Loan Parties hereunder
shall be absolute and unconditional irrespective of:

          (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any Loan Party;

          (b) any lack of validity or enforceability of any Loan Document or any other agreement or
instrument relating thereto against any Loan Party;

          (c) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Obligations, or any other amendment or waiver of or any consent to any departure from any
Loan Document or any other agreement or instrument relating thereto;

          (d) any exchange, release or non-perfection or loss of priority of any Liens on any or all of
the Collateral, or any release or amendment or waiver of or consent to any departure from any
guarantee, for all or any of the Obligations;

          (e) any exercise or non-exercise, or any waiver of any right, remedy, power or privilege under
or in respect hereof or any Loan Document; or

          (f) any other circumstances which might otherwise constitute a defense available to, or a
discharge of, the Loan Parties.

     Section 11.16 Waiver of Defenses; Absence of Fiduciary Duties. (a) Each of the Loan Parties hereby waives any and all suretyship defenses available to it as a
Guarantor arising out of the joint and several nature of its respective duties and obligations
hereunder (including any defense contained in Article VII).

          (b) Each of the Loan Parties agrees that in connection with all aspects of the transactions
contemplated hereby or by the other Loan Documents and any communications in connection therewith,
the Loan Parties and their respective Affiliates, on the one hand, and each Lender, SPC and Agent,
on the other hand, will have a business relationship that does not create, by implication or
otherwise, any fiduciary duty on the part of any Lender, SPC or any Agent or any of their
respective Affiliates, and no such duty will be deemed to have arisen in connection with any such
transactions or communications.

     Section 11.17 Patriot Act. Each Lender hereby notifies each Loan Party that pursuant to the requirements of the Patriot
Act, it may be required to obtain, verify and record information that identifies the Loan Parties,
which information includes the name, address and taxpayer identification number of each Loan Party
and other information that will allow such Lender to identify such Loan Party in accordance with
the Patriot Act.

     Section 11.18 Judgment Currency. (a) The Loan Parties’ obligations hereunder and under the other Loan Documents to make payments
in Dollars shall not be discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than Dollars, except to the extent that such
tender or recovery results in the effective receipt by the Administrative

136

 

Agent or the respective
Lender or Issuing Bank of the full amount of Dollars expressed to be payable to the Administrative
Agent or such Lender or Issuing Bank under this Agreement or the other Loan Documents. If, for the
purpose of obtaining or enforcing judgment against any Loan Party in any court or in any
jurisdiction, it becomes necessary to convert into or from any currency other than Dollars (such
other currency being hereinafter referred to as the “Judgment Currency”) an amount due in Dollars,
the conversion shall be made at the Dollar Equivalent determined as of the Business Day immediately
preceding the day on which the judgment is given (such Business Day being hereinafter referred to
as the “Judgment Currency Conversion Date”).

          (b) If there is a change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, the Loan Parties shall pay, or
cause to be paid, such additional amounts, if any (but in any event not a lesser amount) as may be
necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate
of exchange prevailing on the date of payment, will produce the amount of Dollars which could have
been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at
the rate of exchange prevailing on the Judgment Currency Conversion Date.

          (c) For purposes of determining the Dollar Equivalent or any other rate of exchange for this
Section 11.18, such amounts shall include any premium and costs payable in connection with
the purchase of Dollars.

     Section 11.19 Assumption of Obligations under Loan Documents. Concurrently with the consummation of the Acquisition, each the Target and of its Subsidiaries
agrees that they are bound as Subsidiary Guarantors under this Agreement and the other Loan
Documents, and, in the case of the Security Documents, as Pledgors, in each case, by all of the
terms, covenants and conditions set forth in this Agreement and the other Loan Documents to the
same extent as if the Target and such Subsidiary Guarantors had been Subsidiary Guarantors
immediately prior to the consummation of the Acquisition.

     Section 11.20 Assumption of Obligations under Commitment Letter and Fee Letter. Each Loan Party hereby irrevocably agrees that it is jointly and severally liable with Borrower
and each other Loan Party for any and all liabilities and obligations of Borrower relating to or
arising out of any of its respective duties, responsibilities and obligations under the Commitment
Letter and the Fee Letter.

     Section 11.21 Conversion of Term Loans on the Restatement Date. Effective as the Restatement Date, each of the parties hereto acknowledges and agrees that (i)
all Term Loans outstanding (and excluding those Term Loans paid in full immediately prior to the
Restatement Date pursuant to Section 2.10 of the Existing Credit Agreement) shall hereby be
converted into and be deemed for all purposes of this Agreement to constitute Revolving Loans, and
(ii) the Revolving Commitments relating to such converted Revolving Loans will be reflected in the
revised Annex II(A) attached hereto.

     Section 11.22 Amendment And Restatement. On the Restatement Date, the Existing Credit Agreement shall be amended, restated and superseded
in its entirety. Borrower and each Subsidiary Guarantor hereby confirm and agree that all
Obligations outstanding under the Existing Credit Agreement immediately prior to the amendment and
restatement thereof as contemplated hereby (such Obligations, the “Existing Credit Agreement
Obligations”) shall, unless and until paid (including those repayments as of the date hereof),
continue to remain outstanding under this Agreement and shall not constitute new Obligations
incurred by Borrower on or after the Restatement Date. Borrower

137

 

and each Subsidiary Guarantor
hereby confirm that all Existing Credit Agreement Obligations are due and owing without offset,
defense, counterclaim or recoupment of any kind or nature. The parties hereto acknowledge and
agree that this Agreement and the other Restatement Documents, whether executed and delivered in
connection herewith or otherwise, do not constitute a novation, payment and reborrowing, or
termination of the Existing Credit Agreement Obligations.

     IN WITNESS WHEREOF, the Loan Parties have caused this Agreement to be duly executed by their
respective Responsible Officers and the other parties hereby by their authorized signatories as of
the day and year first above written.1

(Signature Pages Follow)

 

			
	1	 	To be updated as necessary

138

 

	 	 	 	 	 
	 	BIOSCRIP, INC., as Borrower

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President,
Secretary and General Counsel 	 
	 
	 	EACH SUBSIDIARY GUARANTOR SET FORTH ON ANNEX A

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President,
Secretary and General Counsel 	 
	 

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC,

as Administrative Agent, Collateral Agent,

Collateral Manager, and Arranger

 	 
	 	By:  	/s/  John D. Calabro 	 
	 	 	Name:  	John D. Calabro 	 
	 	 	Title:  	Executive Vice President 	 
	 

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	HFG HEALTHCO-4 LLC, as a Lender

By: Master Healthco, LLC, its member

 	 
	 	By:  	/s/  John D. Calabro 	 
	 	 	Name:  	John D. Calabro 	 
	 	 	Title:  	Executive Vice President 	 
	 

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	HFG HEALTHCO-4 LLC, as Swingline Lender

By: Master Healthco, LLC, its member

 	 
	 	By:  	/s/ John D. Calabro 	 
	 	 	Name:  	 John D. Calabro 	 
	 	 	Title:  	Executive Vice President 	 
	 

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC, as Issuing Bank

 	 
	 	By:  	/s/ John D. Calabro	 
	 	 	Name:  	John D. Calabro	 
	 	 	Title:  	Executive Vice President 	 
	 

Amended and Restated Credit Agreement

 

 

Annex A

Subsidiary Guarantors

BioScrip Infusion Services, Inc.

Chronimed, LLC

BioScrip Pharmacy, Inc.

Bradhurst Specialty Pharmacy, Inc.

BioScrip Pharmacy (NY), Inc.

BioScrip PBM Services, LLC

Natural Living, Inc.

BioScrip Infusion Services, LLC

BioScrip Nursing Services, LLC

BioScrip Infusion Management, LLC

BioScrip Pharmacy Services, Inc.

CHS Holdings, Inc.

Critical Homecare Solutions, Inc.

Applied Health Care, LLC

Cedar Creek Home Health Care Agency, Inc.

Deaconess Enterprises, LLC

Deaconess HomeCare, LLC

East Goshen Pharmacy, Inc.

Elk Valley Health Services, Inc.

Elk Valley Home Health Care Agency, Inc.

Elk Valley Professional Affiliates, Inc.

Gericare, Inc.

Infusion Partners, LLC

Infusion Partners of Brunswick, LLC

Infusion Partners of Melbourne, LLC

Infusion Solutions, Inc.

Knoxville Home Therapies, LLC

National Health Infusion, Inc.

New England Home Therapies, Inc.

Option Health, Ltd.

Professional Home Care Services, Inc.

Regional Ambulatory Diagnostics, Inc.

Scott-Wilson, Inc.

South Mississippi Home Health, Inc.

South Mississippi Home Health, Inc. — Region I

South Mississippi Home Health, Inc. — Region II

South Mississippi Home Health, Inc. — Region III

Specialty Pharma, Inc.

Wilcox Medical, Inc.

Amended and Restated Credit Agreement

 

 

Annex I

[Intentionally Omitted]

Annex I-1

 

Annex II(A)

Revolving Commitments

	 	 	 	 	 	 	 
	Lender	 	Address for Notices	 	Amount of Revolving Commitment
	HFG Healthco-4, LLC
	 	199 Water Street 

New York, NY 10036	 	$	150,000,000	 

Annex II(A)-1

 

Annex II(B)

Term Loans

	 	 	 	 	 
	Lender	 	Term Loan
	ING CAPITAL LLC*
	 	$	14,812,500.00	 
	COMPASS BANK*
	 	$	9,875,000.00	 
	GENERAL ELECTRIC CAPITAL CORPORATION*
	 	$	7,900,000.00	 
	RAYMOND JAMES BANK, FSB*
	 	$	5,431,250.00	 
	HFG HEALTHCO-4 LLC
	 	$	19,750,000.00	 
	JEFFERIES CP FUNDING
	 	$	1,975,000.00	 
	JFIN FUNDING LLC
	 	$	1,950,000.00	 
	AMMC VII, LIMITED
	 	$	987,500.00	 
	ATRIUM V
	 	$	1,975,000.00	 
	BATTALION CLO 2007-I
	 	$	2,468,750.00	 
	CAMULOS LOAN VEHICLE I
	 	$	987,500.00	 
	COMMONWEALTH OF PA TRSRY
	 	$	987,500.00	 
	CSAM FUNDING III
	 	$	2,962,500.00	 
	DENALI CAPITAL CLO V, LTD.
	 	$	987,500.00	 
	DENALI CAPITAL CLO VI, LTD
	 	$	1,876,250.00	 
	DENALI CAPITAL CLO VII
	 	$	2,370,000.00	 
	GSC CDO FUND VII
	 	$	2,073,750.00	 
	GSC GROUP CDO FUND VIII
	 	$	2,073,750.00	 
	GSC INVESTMENT CORP. CLO 2
	 	$	2,073,750.00	 
	GSC LOAN FUNDING 2005-1
	 	$	1,580,000.00	 
	GSC PARTNERS CDO FUND VI
	 	$	2,073,750.00	 
	GULF STREAM — COMPASS CLO
	 	$	740,625.00	 
	GULF STREAM — RASHINBAN CL
	 	$	740,625.00	 
	JFIN CLO 2007 LTD.
	 	$	5,950,000.00	 
	MADISON PARK FUNDING III
	 	$	1,975,000.00	 
	NEPTUNE FINANCE CCS, LTD
	 	$	493,750.00	 
	SPRING ROAD CLO 2007-1(FKA
	 	$	1,678,750.00	 
	TOTAL:
	 	$	98,750,000.00	 

 

			
	*	 	Assigning Lender

Annex II(B)-1

 

Annex III

NET VALUE FACTORS

	1.	 	Rebate Receivables: Initially 99%
	 
	2.	 	Receivables that are not Rebate Receivables:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	BioScrip
	PBM Services	 	Mail Order	 	New Jersey	 	Roslyn	 	Comm Pharm	 	Bronx	 	SF Mail	 	Burbank	 	Consolidated
	95%

	 	95%
	 	95%
	 	90%
	 	92%
	 	92%
	 	95%
	 	95%
	 	94%

Annex III-1

 

Annex IV

ELIGIBILITY CRITERIA

PART I  — ELIGIBLE RECEIVABLES

     The following shall constitute the eligibility criteria for acceptance of Receivables and
Inventory for inclusion in the Borrowing Base (capitalized terms not otherwise defined in the
Credit Agreement and used in this Annex IV shall have the meaning provided in the Collateral
Management Agreement and, if not defined therein, in the Security Agreement):

          (a) The information provided by the Loan Parties with respect to each such Receivable is
complete and correct and all documents, attestations and agreements relating thereto that have been
delivered to the Collateral Manager are true and correct, and, other than with respect to Unbilled
Receivables, the applicable Loan Party has billed the applicable Obligor and has delivered to such
Obligor all requested supporting claim documents with respect to such Receivable and no amounts
with respect to such Receivable have been paid as of the date and time of the inclusion of such
Receivable in the Borrowing Base. All information set forth in the bill and supporting claim
documents with respect to such Receivable is true, complete and correct; if additional information
is requested by the Obligor, each Loan Party (or the applicable member thereof) has or will
promptly provide the same, and if any error has been made with respect to such information, each
Loan Party will promptly correct the same and, if necessary, rebill such Receivable.

          (b) Each such Receivable (i) is payable, in an amount not less than its Expected Net Value, by
the Obligor identified by the applicable Loan Party as being obligated to do so, (ii) is based on
an actual and bona fide rendition of services to the Obligor or sale of goods to an Obligor or a
plan participant of the Obligor in the ordinary course of business, (iii) is denominated and
payable only in U.S. dollars in the United States, and (iv) is an account receivable or general
intangible within the meaning of the UCC of the state in which the applicable Loan Party has its
principal place of business, or is a right to payment under a policy of insurance or proceeds
thereof, and is not evidenced by any instrument or chattel paper. There is no payor other than the
Obligor identified by the Loan Parties as the payor primarily liable on such Receivable.

          (c) Each such Receivable (i) is not the subject of any action, suit, proceeding or
dispute (pending or threatened), setoff, counterclaim, defense, abatement, suspension, deferment,
deductible, reduction or termination by the Obligor (except for statutory rights of Governmental
Entities that are not pending or threatened), (ii) is not past, or within 60 days of, the
statutory limit for the invoice delivery date applicable to the Obligor or is not aged more
than 180 days from its Last Service Date, (iii) in the case of a Receivable that is not a Rebate
Receivable, was not billed to the Obligor on a date more than 30 days after the Last
Service Date, and (iv) in the case of a Rebate Receivable, was not billed to the Obligor on
a date more than 60 days after the end of the fiscal quarter in which such Rebate Receivable became
due and payable.

          (d) Each such Receivable is not due from any Governmental Authority other than Medicare,
Medicaid, TRICARE/CHAMPUS, Ryan White programs, 340B drug pricing programs, the State Children’s
Health Insurance Program (Title XXI of the Social Security Act) or any similar state or federally
funded program.

Annex IV-1

 

          (e) No Loan Party has any guaranty of, letter of credit providing credit support for, or
collateral security for, such Receivable, other than any such guaranty, letter of credit or
collateral security as has been assigned to the Collateral Agent (for the benefit of the Secured
Parties), and any such guaranty, letter of credit or collateral security is not subject to any Lien
in favor of any other Person.

          (f) The Obligor with respect to each such Receivable is (i) not currently the subject of any
bankruptcy, insolvency or receivership proceeding, nor is it unable to make payments on its
obligations when due, (ii) located in the United States of America, (iii) one of the following:
(x) a person which in the ordinary course of its business or activities agrees to pay for
healthcare services received by individuals, including, without limitation, commercial insurance
companies and non-profit insurance companies (such as Blue Cross and Blue Shield) issuing health,
personal injury, worker’s compensation or other types of insurance, employers or unions which
self-insure for employee or member health insurance, prepaid healthcare organizations, preferred
provider organizations, health maintenance organizations, commercial hospitals, physician’s groups
or any other similar person or (y) an individual, (iv) not an Affiliate of Borrower and (v) not the
Obligor of any Receivable that was a Defaulted Receivable in the past 12 months.

          (g) The financing of such Receivables under the Loan Documents is made in good faith and
without actual intent to hinder, delay or defraud present or future creditors of any of the Loan
Parties.

          (h) The insurance policy, contract or other instrument obligating an Obligor to make payment
with respect to such Receivable (i) does not contain any provision prohibiting the grant of a
security interest in such payment obligation from the applicable Loan Party to the Collateral Agent
(for the benefit of the Secured Parties) as provided in the Security Documents, (ii) has been duly
authorized and, together with such Receivable, constitutes the legal, valid and binding obligation
of the Obligor in accordance with its terms, (iii) together with such Receivable, does not
contravene in any material respect any requirement of law applicable thereto, and (iv) was in full
force and effect and applicable to the Obligor at the time the goods or services constituting the
basis for such Receivable were sold or performed.

          (i) No consents by any third party to the assignment of such Receivable are required other
than consents previously obtained in writing by the relevant Loan Party, a copy of each such
consent having been provided to the Collateral Manager.

          (j) The inclusion of each such Receivable in the Borrowing Base would not increase the
fraction expressed as a percentage where (i) the numerator is the sum of the then outstanding
principal amount of Eligible Receivables for any Obligor (or group of Obligors) listed below
included in the Borrowing Base, and (ii) the denominator is the Borrowing Base for all Eligible
Receivables, above the corresponding maximum percentage listed below:

	 	 	 	 	 
	 	 	Maximum
	Obligor	 	Percentage
	 
	 	 	 	 
	Health Maintenance Organizations
	 	 	100	%
	Managed Care Organizations
	 	 	100	%

Annex IV-2

 

	 	 	 	 	 
	 	 	Maximum
	Obligor	 	Percentage
	Long-Term Care Facilities
	 	 	20	%
	Employer Plans
	 	 	50	%
	any single AAA rated Obligor
	 	 	10	%
	any single AA rated Obligor
	 	 	6	%
	any single A rated Obligor
	 	 	4	%
	any single BBB rated Obligor
	 	 	3	%
	any single unrated Obligor
	 	 	3	%

With respect to any Receivables that fail to satisfy the Eligibility Criteria set forth in this
clause (j), such Receivables shall be deemed Eligible Receivables (provided they otherwise satisfy
the Eligibility Criteria set forth in this Annex IV) until shall time that the Collateral Manager,
in its sole discretion, determines that such Receivables (or any portion thereof) shall not be
Eligible Receivables as a result of their failure to satisfy the Eligibility Criteria set forth in
this clause (j).

          (k) Unless specifically verified and accepted by the Collateral Manager, no single Eligible
Receivable that is not a Rebate Receivable has an Expected Net Value greater than $800,000.

          (l) No prior sale or assignment of security interest which is still in effect on the
applicable date of the Borrowing Base Certificate has been made with respect to or granted in any
such Receivable.

PART II  — ELIGIBLE INVENTORY

     The following shall constitute the Eligibility Criteria for acceptance of Inventory for
inclusion in the Borrowing Base.

     All Inventory of the Loan Parties, valued at the lower cost or market in accordance with GAAP,
but excluding any Inventory having any of the following characteristics:

          (a) Inventory that is in-transit; located at any warehouse, job site or located on any other
premises that may be subject to the Lien of any person other than the Collateral Agent;

          (b) Inventory that is otherwise not subject to a duly perfected first priority Lien in the
Collateral Agent’s favor;

          (c) Inventory that is subject to (x) a Lien in favor of any Person other than the Lender other
than the ABDC Lien that is subject to the ABDC Intercreditor Agreement and (y) the Lien of a
supplier or similar creditor of any of the Loan Parties that is subject to a Supplier Intercreditor
Agreement;

          (d) Inventory covered by any negotiable or non-negotiable warehouse receipt, bill of lading or
other document of title; on consignment from any Person; on consignment to any Person or subject to
any bailment unless such consignee or bailee has executed an agreement with the Lender;

Annex IV-3

 

          (e) Supplies, packaging, parts or sample Inventory, or customer supplied parts or Inventory;

          (f) Work-in-process Inventory;

          (g) Inventory that is damaged, defective, obsolete, slow moving or not currently saleable in
the normal course of Borrower’s operations, or the amount of such Inventory that has been reduced
by shrinkage;

          (h) Inventory that the Borrower has returned, has attempted to return, is in the process of
returning or intends to return to the vendor thereof;

          (i) Inventory that is perishable or live or 30 days from expiration;

          (j) Inventory stored at locations outside the United States;

          (k) Inventory formulated by a Loan Party pursuant to a license unless the applicable licensor
has agreed in writing to permit the Collateral Agent to exercise its rights and remedies against
such Inventory; and

          (l) Inventory that is classified as controlled substances, C2 or other controlled substances
or pharmaceuticals unless the applicable Loan Party (i) possesses a specialized license from the
U.S. Drug Enforcement Agency or other federal, state or local authority to sell or dispose of same,
or (ii) is not otherwise prohibited under applicable law from selling or otherwise disposing of
same.

* * *

Annex IV-4

 

Annex V

Borrowing Base Reserves (Eligible Receivables and Eligible Inventory)

None.

Annex V-1

 

EXHIBIT A

[Form of]

ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Amended and Restated Credit Agreement, dated as of December 28, 2010
(as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among BioScrip, Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors,
the Lenders, Healthcare Finance Group, LLC, as administrative agent (in such capacity, the
“Administrative Agent”), as collateral agent for the Secured Parties and as collateral manager, and
other entities party thereto. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement.

     1. _____________________ (the “Assignor”) hereby irrevocably sells and assigns, without
recourse, to _________________ (the “Assignee”), and the Assignee hereby irrevocably purchases and
assumes, from the Assignor, without recourse to the Assignor, effective as of the Effective Date
set forth below (but not prior to the registration of the information contained herein in the
Register pursuant to Section 11.04(c) of the Credit Agreement), the interests set forth below (the
“Assigned Interest”) in the Assignor’s rights and obligations under the Credit Agreement and the
other Loan Documents, including, without limitation, the Swingline Commitment, Revolving Commitment
and the Swingline Loans, Revolving Loans and participations held by the Assignor in Letters of
Credit which are outstanding on the Effective Date. From and after the Effective Date (i) the
Assignee shall be a party to and be bound by the provisions of the Credit Agreement and, to the
extent of the interests assigned by this Assignment and Acceptance, have the rights and obligations
of a Lender thereunder and under the Loan Documents and (ii) the Assignor shall, to the extent of
the interests assigned by this Assignment and Acceptance, relinquish its rights and be released
from its obligations under the Credit Agreement.

     2. The Assignor (a) represents and warrants that (i) it is the legal and beneficial
owner of the interest being assigned hereby free and clear of any lien, encumbrance or other
adverse claim created by the Assignor and that its Commitments, and the outstanding balances of its
Loans, without giving effect to assignments thereof which have not become effective, are as set
forth in this Assignment and Acceptance and (ii) it has all necessary power and authority, and has
taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate
the transactions contemplated hereby; and (b) except as set forth in (a) above, the Assignor makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement, or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any
other Loan Document or any other instrument or document furnished pursuant thereto, or the
financial condition of any Loan Party or the performance or observance by any Loan Party of any of
its obligations under the Credit Agreement, any other Loan Document or any other instrument or
document furnished pursuant thereto.

     3. The Assignee (a) represents and warrants that (i) it is legally authorized to
enter into this Assignment and Acceptance and (ii) it has all necessary power and authority, and
has taken all action necessary, to execute and deliver this Assignment and Acceptance and to
consummate the transactions contemplated hereby and become a Lender under the Credit Agreement; (b)
confirms that it has received a copy of the Credit Agreement, and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (c) agrees that it will, independently and without reliance upon
the Assignor, the Agents or any Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement, the other Loan Documents or any

A-1

 

other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes
the Agents to take such action as agents on its behalf and to exercise such powers and discretion
under the Credit Agreement, the other Loan Documents or any other instrument or document furnished
pursuant hereto or thereto as are delegated to the Agents by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the
Credit Agreement and will perform in accordance with its terms all the obligations which by the
terms of the Credit Agreement are required to be performed by it as a Lender.

     4. The effective date of this Assignment and Acceptance shall be the Effective Date
of Assignment described in Schedule 1 hereto (the “Effective Date”). Following the execution of
this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance by
it and recording by the Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, in its
sole discretion, be earlier than three Business Days after the date of such acceptance and
recording by the Administrative Agent). This Assignment and Acceptance will be delivered to the
Administrative Agent together with (a) if the Assignee is a Foreign Lender, the forms specified in
Section 2.15(e) of the Credit Agreement, duly completed and executed by such Assignee; (b) if the
Assignee is not already a Lender under the Credit Agreement, an Administrative Questionnaire, and
(c) a processing and recordation fee of $3,500, if required under the Credit Agreement.

     5. Upon such acceptance and recording, from and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) [to the Assignor for amounts which have
accrued to the Effective Date and to the Assignee for amounts which have accrued subsequent to the
Effective Date] [to the Assignee whether such amounts have accrued prior to the Effective Date or
accrue subsequent to the Effective Date. The Assignor and the Assignee shall make all appropriate
adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with
respect to the making of this assignment directly between themselves.]

     6. From and after the Effective Date, (a) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a lender thereunder and under the other Loan Documents and shall be bound by the
provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights (except those surviving the payment in full of the Obligations)
and be released from its obligations under the Loan Documents.

     7. This Assignment and Acceptance shall be construed in accordance with and governed
by the law of the State of New York without regard to conflicts of law principles that would
require the application of the laws of another jurisdiction.

A-2

 

SCHEDULE 1

to

Assignment and Acceptance

Effective Date of Assignment: 

Legal Name of Assignor: 

Legal Name of Assignee: 

Assignee’s Address for Notices: 

 

Percentage Assigned of Applicable Loan/Commitment:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage Assigned of
	 	 	 	 	 	 	applicable Loan/Commitment
	 	 	 	 	 	 	(set forth, to at least 15 decimals,
	 	 	 	 	 	 	as a percentage of the Loans and
	 	 	 	 	 	 	the aggregate Commitments of
	Loan/Commitment	 	Principal Amount Assigned	 	all Lenders thereunder)
	Revolving Loans

	 	 	$	 	 	 	%	 
	Letters of Credit

	 	 	$	 	 	 	%	 
	Swingline Loans

	 	 	$	 	 	 	%	 

[Signature Page Follows]

A-3

 

	 	 	 	 	 
	 	The terms set forth above are hereby agreed to:

[ 

as Assignor

 	

] 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	 

as Assignee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Accepted:*

BIOSCRIP, INC.,

as Borrower

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	HEALTHCARE FINANCE GROUP, LLC,

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

[______________],

as [Swingline Lender/Issuing Bank]**

 

			
	*	 	To be completed to the extent consent of Borrower and/or
Administrative Agent is required under Section 11.04(b) of the Credit
Agreement.

	 
	**	 	

To be completed to the extent consent of the Swingline Lender or
Issuing Bank is required under Section 11.04(b) of the Credit Agreement.

A-4

 

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

A-5

 

	 	 	 	 	 

EXHIBIT B-1

[Form of]

BORROWING REQUEST

Healthcare Finance Group, LLC,

   as Administrative Agent for

   the Lenders referred to below

199 Water Street, 31st Floor

New York, New York 10038

Attention: [Bioscrip Account Manager]

Facsimile: (212) 785-8501

			
	 	 	 
	Re:   BioScrip, Inc.
	 	[Date]

Ladies and Gentlemen:

     Reference is made to the Amended and Restated Credit Agreement, dated as of December 28, 2010
(as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among BioScrip, Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors,
the Lenders, Healthcare Finance Group, LLC, as administrative agent, as collateral agent for the
Secured Parties and as collateral manager, and other entities party thereto. Capitalized terms
used but not defined herein shall have the meaning assigned to such terms in the Credit Agreement.
Borrower hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests
a Revolving Borrowing under the Credit Agreement, and that in connection therewith sets forth below
the terms on which such Revolving Borrowing is requested to be made:

B-1

 

	 	 	 	 	 

	(A)

	 	Principal amount of Borrowing:1	 	 
	 
	(B)

	 	Date of Borrowing

(which is a Business Day):	 	 
	 
	(C)

	 	Funds are requested to be disbursed

to Borrower’s account with:	 	 
	 

	 	 	 	Account No. 

Borrower hereby represents and warrants that the conditions to lending specified in Sections
4.02(b)-(d) of the Credit Agreement are satisfied as of the date hereof.

[Signature Page Follows]

 

			
	1	 	See Section 2.02(a) of the Credit Agreement
for minimum borrowing amounts.

B1-2

 

	 	 	 	 	 
	 	BIOSCRIP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B1-3

 

	 	 	 	 	 

EXHIBIT B-2

[Form of]

BORROWING BASE CERTIFICATE

B2-1      

 

BIOSCRIP, INC.

BORROWING BASE

at 1/31/2010

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	PBM	 	 	 	 	 	(ADIMA2)	 	 	 	 	 	Comm	 	 	 	 	 	 	 	 	 	 	 	 	 	Rebate	 	 	 	 	 	BioScrip
	 	 	Services	 	Mail Order	 	New Jersey	 	Roslyn	 	Pharm	 	Bronx	 	SF Mail	 	Burbank	 	Receivables	 	CHS	 	Consolidated
	Gross Receivables As of xx/xx/xxxx
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additions to Gross Receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Manual AR
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rebate Receivable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deductions to Gross Receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ineligible AR
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Offset — Shared Rebate Portion
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash Basis account for PBM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Eligible Receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Estimated Net Value Factor
	 	 	95	%	 	 	95	%	 	 	95	%	 	 	90	%	 	 	92	%	 	 	92	%	 	 	95	%	 	 	95	%	 	 	99	%	 	 	0	%	 	 	94	%
	Estimated Net Value
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additions to Estimated Net Value
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deduction to Estimated Net Value
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit Balances
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Month-end Cash intransit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Net Value of Receivable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate A/R
	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	85	%	 	 	0	%	 	 	85	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Availability
	 	#REF	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	$	 —	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additions to Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inventory Availability per Appendix 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Interim CHS availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Borrowing Base
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving Commitment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	150,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Borrowing Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Reserves
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Borrowing Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Activity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Outstanding Loan Balance Prior Monthly
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving Advances Since Prior Report
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less Collections
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deposits
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Total Interest, Fees, Charges & Expenses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Deposits in Transit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Revolving Advance Request This Report
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving Loan Balance This Report
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 

B2-2 

 

BIOSCRIP, INC.

The undersigned represents and warrants that the foregoing information is true,
complete and correct and that the collateral reflected herein complies with and
conforms to the Eligibility Criteria set forth in Annex IV to the Amended and
Restated Credit Agreement dated as of December 28, 2010 by and among Bioscrip,
Inc., the subsidiaries of Bioscrip, Inc., Healthcare Finance Group, LLC, as
Administrative Agent, Collateral Agent and Collateral Manager, and other
entities party thereto (as amended, restated, supplemented or otherwise
modified from time to time, the “Agreement”). BioScrip, Inc. promises to pay
to Healthcare Finance Group, LLC, as Collateral Manager, the new loan balances
reflected above, plus interest, as set forth in the Agreement.

	 	 	 	 	 
	By:  	 	 	Date:  _______________
	 	Name:  	 	 	 
	 	Title:  	 	 	 

B2-3 

 

BIOSCRIP, INC.

Inventory Collateral Report

As of X/XX/XXX

	 	 	 	 	 	 	 	 	 

	I.	 	 	Inventory per perpetual report
	 	$ 	—	 
	 	 	 	 	 
	 	 	 	 
	II.	 	Deductions:
	 	 	 	 
	 	 	 	 	Shrinkage, Slow Moving, WIP, etc.
	 	$ 	—	 
	 	 	 	 	Controlled Substances (class 2)
	 	$ 	—	 
	 	 	 	 	Other
	 	$ 	—	 
	 	 	 	 	 
	 	 	 	 
	III.	 	Net Eligible Inventory (I minus II)
	 	$ 	—	 
	 	 	 	 	 
	 	 	 	 
	IV.	 	80% of Net Eligible Inventory (OLV Rate)
	 	$ 	—	 
	 	 	 	 	 
	 	 	 	 
	V.	 	 	50%2 Of Net Orderly Liquidation Value of Eligible Inventory
	 	$ 	—	 
	 	 	 	 	 
	 	 	 	 
	VI.	 	Net Inventory Availability
	 	$ 	—	 

 

			
	2	 	25% (but in no event greater than
$12,000,000) until the Valuation Delivery Date.

B2-4 

 

EXHIBIT C

[Form of]

COMPLIANCE CERTIFICATE

     This Compliance Certificate(this “Certificate”) is delivered to you pursuant to Section
5.01(d) of the Amended and Restated Credit Agreement, dated as of December 28, 2010 (as amended,
restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”),
among BioScrip, Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors, the Lenders,
Healthcare Finance Group, LLC, as administrative agent, as collateral agent for the Secured Parties
and as collateral manager, and other entities party thereto. Capitalized terms used but not
defined herein shall have the meaning assigned to such terms in the Credit Agreement.

     1. I am the duly elected, qualified and acting [specify type of Financial Officer] of
Borrower.

     2. I have reviewed and am familiar with the contents of this Certificate.

     3. I have reviewed the terms of the Credit Agreement and the other Loan Documents and have
made, or caused to be made under my supervision, a review in reasonable detail of the transactions
and condition of Borrower and its Subsidiaries during the accounting period covered by the
financial statements attached hereto as Attachment 1 (the “Financial Statements”). Such
review did not disclose the existence during or at the end of the accounting period covered by the
Financial Statements, and I have no knowledge of the existence, as of the date of this Certificate,
of any condition or event which constitutes a Default or an Event of Default[, except as set forth
below].

     4. Attached hereto as Attachment 2 are the computations showing compliance with the
covenants set forth in Section 6.10 of the Credit Agreement.1

     IN WITNESS WHEREOF, I execute this Certificate in my official capacity as the [Financial
Officer] of Borrower, and not individually, this ____ day of ____________, 20__.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:	 	 
	 	 	Title:	[Financial Officer] of BioScrip, Inc. 	 
	 

 

			
	1	 	This Attachment should only be included in a
Compliance Certificate to be concurrently delivered with any delivery of
financial statements under Section 5.01(a) or Section 5.01(b) of the Credit
Agreement.

C-1 

 

ATTACHMENT 1

TO

COMPLIANCE CERTIFICATE

Financial Statements

     The information described herein is as of [__________________], and pertains to the fiscal
[month] [quarter] [year] ended [____________].

C-2 

 

ATTACHMENT 2

TO

COMPLIANCE CERTIFICATE

[Set forth financial covenant calculations]

C-3 

 

EXHIBIT D

[Form of]

INTERCOMPANY NOTE

INTERCOMPANY

SUBORDINATED DEMAND PROMISSORY NOTE

			
	Note Number: _____
	 	Dated: _____________, 20__

     FOR VALUE RECEIVED, Borrower (as defined below), and each of its Subsidiaries (collectively,
the “Group Members” and each, a “Group Member”) which is a party to this intercompany subordinated
demand promissory note (this “Promissory Note”) as a Payor (as defined below) promises to pay to
the order of such other Group Member that makes loans to such Group Member (each Group Member which
borrows money pursuant to this Promissory Note is referred to herein as a “Payor” and each Group
Member which makes loans and advances pursuant to this Promissory Note is referred to herein as a
“Payee”), on demand, in lawful money of the United States of America, in immediately available
funds and at the appropriate office of the Payee, the aggregate unpaid principal amount of all
loans and advances heretofore and hereafter made by such Payee to such Payor and any other
indebtedness now or hereafter owing by such Payor to such Payee as shown in the books and records
of such Payee. The failure to show any such indebtedness or any error in showing such Indebtedness
shall not affect the obligations of any Payor hereunder. Unless otherwise defined herein, terms
defined in the Credit Agreement (hereinafter defined) and used herein shall have the meanings given
to them in that certain Amended and Restated Credit Agreement, dated as of December 28, 2010 (as
amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among BioScrip, Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors,
the Lenders, Healthcare Finance Group, LLC, as administrative agent (in such capacity, the
“Administrative Agent”), as collateral agent for the Secured Parties and as collateral manager, and
other entities party thereto.

     The unpaid principal amount hereof from time to time outstanding shall bear interest at a rate
equal to the rate as may be agreed upon in writing from time to time by the relevant Payor and
Payee. Each Payor and any endorser of this Promissory Note hereby waives presentment, demand,
protest and notice of any kind. No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such rights.

     This Promissory Note has been pledged by (x) each Payee that is a Loan Party to the Collateral
Agent, for the benefit of the Secured Parties, as security for such Payee’s Obligations, if any,
under the Credit Agreement, the Security Agreement and the other Loan Documents to which such Payee
is a party and (y) each Payee that is the Company or any Guarantor (as defined in the Senior Note
Agreement) to the Trustee (under and as defined in the Senior Note Agreement) for the benefit of
the Holders (as defined in the Senior Note Agreement). Each Payor acknowledges and agrees that (x)
upon the occurrence and during the continuation of an Event of Default, the Collateral Agent and
the other Secured Parties may exercise all the rights of the Payees that are Loan Parties under
this Promissory Note in accordance with the terms and conditions of the Credit Agreement, the
Security Agreement and the other Loan Documents and will not be subject to any abatement,
reduction, recoupment, defense, setoff or counterclaim available to such Payor, and (y) upon the
occurrence and during the continuation of an Event of Default (as defined in the Senior Note
Agreement), the Trustee (as defined in the Senior Note Agreement) may exercise all rights of the
Company or any Guarantor (as defined in the Senior Note Agreement) as Payees under this Promissory
Note in accordance with the terms and conditions of the Senior Note Agreement and other

D-1

 

Senior Note Documents and will not be subject to any abatement, reduction, recoupment,
defense, setoff or counterclaim available to such Payor.

     Each Payee agrees that any and all claims of such Payee against any Payor that is a Loan Party
or any endorser for the obligations of a Payor that is a Loan Party of this Promissory Note, or
against any of their respective properties, shall be subordinate and subject in right of payment to
(x) the Obligations until all of the Obligations have been performed and paid in full in
immediately available funds, all Letters of Credit have been terminated or cash collateralized and
the Commitments have been terminated; provided, that each such Payor may make payments to the
applicable Payee so long as no Default or Event of Default shall have occurred and be continuing
and (y) the Obligations (as defined in the Senior Note Agreement) until all of the Obligations (as
defined in the Senior Note Agreement) have been performed and paid in full in immediately available
funds; provided, that each such Payor may make payments to the applicable Payee so long as no
Default or an Event of Default (each as defined in the Senior Note Agreement) shall have occurred
and be continuing.

     Notwithstanding any right of any Payee to ask, demand, sue for, take or receive any payment
from any Payor, all rights, Liens and security interests of such Payee, whether now or hereafter
arising and howsoever existing, in any assets of any Payor (whether constituting part of the
security or collateral given to the Collateral Agent or any Secured Party to secure payment of all
or any part of the Obligations or otherwise) shall be and hereby are subordinated to the rights of
(x) the Administrative Agent or any Secured Party in such assets and (y) the Trustee (as defined in
the Senior Note Agreement) or any Holder (as defined in the Senior Note Agreement) in such assets.
Except as expressly permitted by the Credit Agreement and the Senior Note Agreement, the Payees
shall have no right to possession of any such asset or to foreclose upon, or exercise any other
remedy in respect of, any such asset, whether by judicial action or otherwise, unless and until all
of (x) the Obligations shall have been performed and paid in full in immediately available funds,
all Letters of Credit have been terminated or cash collateralized and the Commitments have been
terminated and (y) the Obligations (as defined in the Senior Note Agreement) shall have been
performed and paid in full in immediately available funds.

     This Promissory Note shall be binding upon each Payor and its successors and assigns, and the
terms and provisions of this Promissory Note shall inure to the benefit of each Payee and their
respective successors and assigns, including subsequent holders hereof. Notwithstanding anything
to the contrary contained herein, in any Loan Document or any Senior Note Document or in any other
promissory note or other instrument, this Promissory Note (i) replaces and supersedes any and all
promissory notes or other instruments which create or evidence any loans or advances made on or
before the date hereof by any Payee to any other Group Member, and (ii) shall not be deemed
replaced, superseded or in any way modified (x) by any promissory note or other instrument entered
into on or after the date hereof which purports to create or evidence any loan or advance by any
Payee to any other Group Member or (y) prior to the payment in full of the Obligations, termination
or cash collateralization of all Letters of Credit and the terminations of all Commitments.

     THIS PROMISSORY NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS PROMISSORY NOTE
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CHOICE OF LAW THAT WOULD APPLY THE LAW OF ANOTHER
JURISDICTION.

     The terms and provisions of this Promissory Note are severable, and if any term or provision
shall be determined to be superseded, illegal, invalid or otherwise unenforceable in whole or in
part pursuant to applicable Legal Requirements by a Governmental Authority having jurisdiction,
such determination shall

D-2

 

not in any manner impair or otherwise affect the validity, legality or enforceability of that
term or provision in any other jurisdiction or any of the remaining terms and provisions of this
Promissory Note in any jurisdiction.

     From time to time after the date hereof, additional Subsidiaries of Borrower may become
parties (as Payor and/or Payee, as the case may be) hereto by executing a counterpart signature
page to this Promissory Note (each additional Subsidiary, an “Additional Party”). Upon delivery of
such counterpart signature page to the Payees, notice of which is hereby waived by the other
Payors, each Additional Party shall be a Payor and/or a Payee, as the case may be, and shall be as
fully a party hereto as if such Additional Party were an original signatory hereof. Each Payor
expressly agrees that its obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Payor or Payee hereunder. This Promissory Note shall be fully
effective as to any Payor or Payee that is or becomes a party hereto regardless of whether any
other person becomes or fails to become or ceases to be a Payor or Payee hereunder.

     This Promissory Note may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Promissory Note by telecopy or other electronic transmission shall be
effective as delivery of a manually executed counterpart of this Promissory Note.

[Signature Page Follows]

D-3

 

     IN WITNESS WHEREOF, each Payor and Payee has caused this Intercompany Subordinated Demand
Promissory Note to be executed and delivered by its proper and duly authorized officer as of the
date set forth above.

	 	 	 	 	 
	 	[PAYEE/PAYOR], as a Payor and Payee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-4

 

ENDORSEMENT

     FOR VALUE RECEIVED, each of the undersigned does hereby sell, assign and transfer to
_______________________ all of its right, title and interest in and to the Intercompany
Subordinated Demand Promissory Note, dated [_________] (as amended, supplemented, replaced or
otherwise modified from time to time, the “Promissory Note”), made by Borrower and each Subsidiary
thereof or any other person that becomes a party thereto, and payable to the undersigned. This
endorsement is intended to be attached to the Promissory Note and, when so attached, shall
constitute an endorsement thereof.

     The initial undersigned shall be the Group Members (as defined in the Promissory Note) that
are Loan Parties on the date of the Promissory Note. From time to time after the date thereof,
additional Subsidiaries of the Group Members shall become parties to the Promissory Note (each, an
“Additional Payee”) and, if such Subsidiaries are or will become Loan Parties, a signatory to this
endorsement by executing a counterpart signature page to the Promissory Note and to this
endorsement. Upon delivery of such counterpart signature page to the Payors, notice of which is
hereby waived by the other Payees, each Additional Payee shall be a Payee and shall be as fully a
Payee under the Promissory Note and a signatory to this endorsement as if such Additional Payee
were an original Payee under the Promissory Note and an original signatory hereof. Each Payee
expressly agrees that its obligations arising under the Promissory Note and hereunder shall not be
affected or diminished by the addition or release of any other Payee under the Promissory Note or
hereunder. This endorsement shall be fully effective as to any Payee that is or becomes a
signatory hereto regardless of whether any other person becomes or fails to become or ceases to be
a Payee under the Promissory Note or hereunder.

Dated: ________________

[Signature Page Follows]

D-5

 

	 	 	 	 	 
	 	[PAYEES], as a Payee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

D-6

 

EXHIBIT E

[Intentionally Omitted.]

E-1

 

EXHIBIT F

[Form of]

LANDLORD ACCESS AGREEMENT

     THIS LANDLORD ACCESS AGREEMENT (this “Agreement”) is made and entered into as of ____________,
by and between ________________________, having an office at __________________________
(“Landlord”), Healthcare Finance Group, LLC, as the Collateral Agent for the benefit of the lenders
(the “Lenders”) party to the Credit Agreement (as hereinafter defined) (in such capacity, the
“Collateral Agent”).

RECITALS:

     A. Landlord is the record title holder and owner of the real property described in
Schedule A attached hereto (the “Real Property”).

     B. Landlord has leased all or a portion of the Real Property (the “Leased Premises”)
to [___] (“Lessee”) pursuant to a certain lease agreement or agreements described in Schedule
B attached hereto (collectively, and as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Lease”).

     C. BioScrip, Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors
party thereto and the Collateral Agent, among others, have entered into an Amended and Restated
Credit Agreement, dated as of December 28, 2010 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; terms used and not otherwise defined
herein that are defined in the Credit Agreement shall have the meanings assigned to such terms
therein), pursuant to which the Lenders have agreed to make certain loans to Borrower
(collectively, the “Loans”).

     D. [The Lessee is a Subsidiary of Borrower.]

     E. [The Lessee has, pursuant to the Credit Agreement, guaranteed the obligations of
Borrower under the Credit Agreement and the other Loan Documents.]1

     F. As security for the payment and performance of Lessee’s Obligations under the
Credit Agreement and the other Loan Documents, the Collateral Agent has or will acquire a security
interest in and lien upon all of Lessee’s personal property, inventory, accounts, goods, machinery,
equipment, furniture and fixtures, other than any building fixtures, including, without limitation,
HVAC systems (together with all additions, substitutions, replacements and improvements to, and
proceeds of, the foregoing, collectively, the “Personal Property”) for the benefit of the Secured
Parties.

     G. The Collateral Agent has requested that Landlord execute this Agreement as a
condition precedent to the making of the Loans under the Credit Agreement.

 

			
	1	 	Include if Borrower is not the Lessee.

F-1

 

AGREEMENT:

     NOW, THEREFORE, for and in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord hereby
represents, warrants and agrees in favor of the Collateral Agent, as follows:

     1. Landlord certifies that (i) Landlord is the landlord under the Lease described in
Schedule B attached hereto, (ii) the Lease is in full force and effect and has not been
amended, modified or supplemented except as set forth in Schedule B hereto and (iii)
Landlord has sent no notice of default to Lessee under the Lease respecting a default which has not
been cured by Lessee.

     2. Landlord agrees that it will provide the Collateral Agent (via overnight mail at
Lessee’s cost and expense) with written notice of any default by Lessee under the Lease resulting
in termination of the Lease (a “Default Notice”) at the same time as it sends such notice to the
Lessee. The Collateral Agent shall have at least 10 days following receipt of such Default Notice
to cure such default, but the Collateral Agent shall not be under any obligation to cure any
default by Lessee under the Lease. No action by the Collateral Agent pursuant to this Agreement
shall be deemed to be an assumption by the Collateral Agent of any obligation under the Lease, and,
except as provided in Sections 3, 5 and 6 below, the Collateral Agent shall
not have any obligation to Landlord.

     3. Landlord agrees that the Personal Property is and will remain personal property
and not fixtures even though it may be affixed to or placed on the Leased Premises. Landlord
further agrees that the Collateral Agent has the right to remove the Personal Property from the
Leased Premises at any time in accordance with the terms of the Loan Documents; provided that the
Collateral Agent shall use its commercially reasonable efforts to notify Landlord first and shall
repair any damage arising from such removal. Landlord further agrees that it will not hinder the
Collateral Agent’s actions in removing Personal Property from the Leased Premises or the Collateral
Agent’s actions in otherwise enforcing its security interest in the Personal Property. The
Collateral Agent shall not be liable for any diminution in value of the Leased Premises caused by
the absence of Personal Property actually removed or by the need to replace the Personal Property
after such removal. Landlord acknowledges that the Collateral Agent shall have no obligation to
remove the Personal Property from the Leased Premises.

     4. Landlord acknowledges and agrees that Lessee’s granting of a security interest in
the Personal Property in favor of the Collateral Agent (for the benefit of the Secured Parties)
shall not constitute a default under the Lease nor permit Landlord to terminate the Lease or
re-enter or repossess the Leased Premises or otherwise be the basis for the exercise of any remedy
by Landlord and Landlord hereby expressly consents to the granting of such security interest and
agrees that such security interest shall be superior to any lien of the Landlord (statutory or
otherwise) in the Personal Property.

     5. Upon a termination of the Lease, Landlord will permit the Collateral Agent and
its representatives and invitees to occupy and remain on the Leased Premises; provided that (a)
such period of occupation (the “Disposition Period”) shall not exceed 180 days following receipt by
the Collateral Agent of a Default Notice or, if the Lease has expired by its own terms (absent a
default thereunder), up to 60 days following the Collateral Agent’s receipt of written notice of
such expiration, (b) for the actual period of occupancy by the Collateral Agent, the Applicable
Collateral Agent will pay to Landlord the basic rent due under the Lease pro rated on a per diem
basis determined on a 30-day month, and shall provide and retain liability and property insurance
coverage, electricity and heat to the extent required by the Lease and (c) such amounts paid by the
Collateral Agent to Landlord shall exclude any rent adjustments, indemnity payments or similar
amounts for which the Lessee remains liable under the Lease for default, holdover status or other
similar charges. If any injunction or stay is issued that prohibits the

F-2

 

Collateral Agent from removing the Personal Property, the commencement of the applicable
Disposition Period will be deferred until such injunction or stay is lifted or removed.

     6. During any Disposition Period, (a) the Collateral Agent and its representatives
and invitees may inspect, repossess, remove and otherwise deal with the Personal Property, and the
Collateral Agent may advertise and conduct public auctions or private sales of the Personal
Property at the Leased Premises, in each case without interference by Landlord or liability of the
Collateral Agent or any Lender to Landlord and (b) the Collateral Agent shall make the Leased
Premises available for inspection by Landlord and prospective tenants and shall cooperate in
Landlord’s reasonable efforts to re-lease the Leased Premises. If the Collateral Agent conducts a
public auction or private sale of the Personal Property at the Leased Premises, the Collateral
Agent shall use reasonable efforts to notify Landlord first and to hold such auction or sale in a
manner which would not unduly disrupt Landlord’s or any other tenant’s use of the Leased Premises.

     7. The terms and provisions of this Agreement shall inure to the benefit of and be
binding upon the successors and assigns of Landlord (including, without limitation, any successor
owner of the Real Property) and the Collateral Agent for the benefits of the Secured Parties.
Landlord will disclose the terms and conditions of this Agreement to any purchaser or successor to
Landlord’s interest in the Leased Premises.

     8. All notices to any party hereto under this Agreement shall be in writing and sent
to such party at its respective address set forth above (or at such other address as shall be
designated by such party in a written notice to the other party complying as to delivery with the
terms of this Section 8) by certified mail, postage prepaid, return receipt requested or by
overnight delivery service.

     9. The provisions of this Agreement shall continue in effect until Landlord shall
have received the Collateral Agent’s written certification that the Loans have been paid in full
and all of Borrower’s other Obligations under the Credit Agreement and the other Loan Documents
have been satisfied (exclusive of indemnification obligations which survive this termination of the
Loan Documents).

     10. THE INTERPRETATION, VALIDITY AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF
LAW PRINCIPLES THEREOF THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION.

     11. This Agreement may be executed in counterparts, each of which shall constitute
an original, but all of which taken together shall constitute a single agreement.

[SIGNATURE PAGE FOLLOWS]

F-3

 

     IN WITNESS WHEREOF, Landlord and the Collateral Agent have caused this Agreement to be duly
executed and delivered by their duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	as Landlord

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC, as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

F-4

 

 

Schedule A

To

Landlord Access Agreement

Description of Real Property

F-5

 

Schedule B

To

Landlord Access Agreement

Description of Lease

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Location/ Property	 
	Lessor	 	Lessee	 	 	Dated	 	 	Modification	 	 	Address	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

F-6

 

EXHIBIT G

[Form of]

LC REQUEST1

[Date]

Healthcare Finance Group, LLC,

  as Administrative Agent for

  the Lenders referred to below

199 Water Street, 31st Floor

New York, New York 10038

Attention: [Bioscrip Account Manager]

[______________]

	Re: 	 	BioScrip, Inc.

Ladies and Gentlemen:

     The undersigned, BioScrip, Inc., a Delaware corporation (“Borrower”), hereby makes reference
to that certain Amended and Restated Credit Agreement, dated as of December 28, 2010 (as amended,
restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”),
among BioScrip, Inc., a Delaware corporation, the Subsidiary Guarantors, the Lenders, Healthcare
Finance Group, LLC, as administrative agent, as collateral agent for the Secured Parties and as
collateral manager, and other entities party thereto. Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit
Agreement. Borrower hereby gives notice, pursuant to Section 2.18(b) of the Credit Agreement, that
Borrower hereby requests the issuance of a Letter of Credit under the Credit Agreement, and in
connection therewith sets forth below the information relating to such issuance (the “Proposed
Issuance”):

	 	(i)	 	The requested date of the Proposed Issuance: ____________

(which is a Business Day)
	 
	 	(ii)	 	The face amount of the proposed Letter of Credit: $____________
	 
	 	(iii)	 	The requested expiration date of such Letter of Credit: ____________
	 
	 	(iv)	 	The name and address of the beneficiary of such requested Letter of Credit is: ____________

 

 

 

 

			
	1	 	NOTE: Subject to review of Issuing Bank.

G-1

 

	 	(v)	 	The Proposed Issuance is requested for the account of [Borrower] [Subsidiary]
(provided that Borrower shall remain jointly and severally liable as co-applicant).
	 
	 	(vi)	 	The requested Letter of Credit shall be issued as a [Standby Letter of Credit]
[Commercial Letter of Credit].
	 
	 	(vii)	 	Any documents to be presented by such beneficiary in connection with any
drawing hereunder, including any certificate(s), application or form of such requested
Letter of Credit, are attached hereto as Attachment 1 or described therein.

     In connection with a request for an amendment, renewal or extension of any outstanding Letter
of Credit, Borrower sets forth the information below relating to such proposed amendment, renewal
or extension:

	 	(i)	 	A copy of the outstanding Letter of Credit requested to be amended, renewed or
extended is attached hereto as Attachment 2.
	 
	 	(ii)	 	The proposed date of amendment, renewal or extension thereof:
(which shall be a Business Day)
	 
	 	(iii)	 	The nature of the proposed amendment, renewal or extension is:

 

 

 

     The undersigned hereby certifies that the following statements are true and correct on the
date hereof, and will be true and correct on the date of the Proposed Issuance or on the date that
any amendment, renewal or extension of an outstanding Letter of Credit becomes effective hereunder:

     (A) each of the representations and warranties made by any Loan Party contained in each
Loan Document are true and correct in all material respects (or true and correct in all
respects in the case of representations and warranties qualified by materiality or Material
Adverse Effect) on and as of the date of the Proposed Issuance, before and after giving
effect to the Proposed Issuance requested hereby, with the same effect as though made on and
as of such date, except to the extent such representations and warranties expressly relate
to an earlier date (in which case such representations and warranties were true and correct
in all material respects (or true and correct in all respects in the case of representations
and warranties qualified by materiality or Material Adverse Effect) on and as of such
earlier date;

     (B) no event has occurred and is continuing, or would result from the Proposed Issuance
requested hereby, that constitutes a Default or an Event of Default; and

     (C) the LC Exposure does not exceed the LC Commitment and the aggregate amount of
Revolving Exposures do not exceed the total Revolving Commitments.

[Signature Page Follows]

G-2

 

	 	 	 	 	 
	 	Very truly yours,

BIOSCRIP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

G-3

 

	 	 	 	 	 

ATTACHMENT 1

TO

LC REQUEST

[Documents required by Issuing Bank]

G-4

 

ATTACHMENT 2

TO

LC REQUEST

[Outstanding Letter of Credit]

G-5

 

EXHIBIT H-1

[Form of]

REVOLVING NOTE

			
	 	 	 
	$[____________]
	 	New York, New York

	 
	 	[____________]

     FOR VALUE RECEIVED, the undersigned, BioScrip, Inc., a Delaware corporation (“Borrower”),
hereby promises to pay to the order of [________________] or its registered assigns (the “Lender”)
on the Maturity Date (as defined in the Credit Agreement referred to below) in lawful money of the
United States and in immediately available funds, the principal amount of the lesser of (a)
[____________] DOLLARS and (b) the aggregate unpaid principal amount of all Revolving Loans of the
Lender outstanding under the Credit Agreement referred to below at such office set forth in Section
2.14 of the Credit Agreement. Borrower further agrees to pay interest in like money at such office
on the unpaid principal amount hereof from time to time at the rates, and on the dates, specified
in Section 2.06 of the Credit Agreement. Terms used herein which are defined in the Credit
Agreement shall have such defined meanings unless otherwise defined herein.

     The holder of this Note may endorse and attach a schedule to reflect the date and amount of
each Revolving Loan of the Lender outstanding under the Credit Agreement, and the date and amount
of each payment or prepayment of principal hereof; provided that the failure of the Lender to make
any such recordation (or any error in such recordation) shall not affect the obligations of
Borrower hereunder or under the Credit Agreement.

     This Note is one of the Notes referred to in the Amended and Restated Credit Agreement, dated
as of December 28, 2010 (as amended, restated, supplemented, waived or otherwise modified from time
to time, the “Credit Agreement”), among BioScrip, Inc., a Delaware corporation, the Subsidiary
Guarantors, the lenders party thereto (including the Lender), Healthcare Finance Group, LLC, as
administrative agent (in such capacity, the “Administrative Agent”), as collateral agent for the
Secured Parties and as collateral manager, and other entities party thereto. This Note is subject
to the provisions thereof and is subject to optional and mandatory prepayment in whole or in part
as provided therein.

     This Note is secured and guaranteed as provided in the Credit Agreement and the Security
Documents. Reference is hereby made to the Credit Agreement and the Security Documents for a
description of the properties and assets in which a security interest has been granted, the nature
and extent of the security and guarantees, the terms and conditions upon which the security
interest and each guarantee was granted and the rights of the holder of this Note in respect
thereof.

     Upon the occurrence and during the continuation of any one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become, or
may be declared to be, immediately due and payable, all as provided therein.

     All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other
notices of any kind.

     THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT.
TRANSFERS OF THIS NOTE MUST BE

H-1-1

 

RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF THE
CREDIT AGREEMENT.

     THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION.

	 	 	 	 	 
	 	BIOSCRIP, INC.,

as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

H-1-2

 

EXHIBIT H-2

[Form of]

SWINGLINE NOTE

			
	$[____________]
	 	New York, New York

[____________]

     FOR VALUE RECEIVED, the undersigned, BioScrip, Inc., a Delaware corporation (“Borrower”),
hereby promises to pay to the order of [________________] or its registered assigns (the “Lender”)
on the Maturity Date (as defined in the Credit Agreement referred to below), in lawful money of the
United States and in immediately available funds, the principal amount of the lesser of (a)
[____________] DOLLARS and (b) the aggregate unpaid principal amount of all Swingline Loans made by
the Lender to the undersigned pursuant to Section 2.17 of the Credit Agreement referred to below at
such office set forth in Section 2.14 of the Credit Agreement. Borrower further agrees to pay
interest in like money at such office on the unpaid principal amount hereof from time to time from
the date hereof at the rates and on the dates specified in Sections 2.06 and 2.17 of the Credit
Agreement. Terms used herein which are defined in the Credit Agreement shall have such defined
meanings unless otherwise defined herein.

     The holder of this Note may endorse and attach a schedule to reflect the date, the amount of
each Swingline Loan and the date and amount of each payment or prepayment of principal thereof;
provided that the failure of the Lender to make such recordation (or any error in such recordation)
shall not affect the obligations of Borrower hereunder or under the Credit Agreement.

     This Note is one of the Notes referred to in the Amended and Restated Credit Agreement, dated
as of December 28, 2010 (as amended, restated, supplemented, waived or otherwise modified from time
to time, the “Credit Agreement”), among BioScrip, Inc., a Delaware corporation, the Subsidiary
Guarantors, the lenders party thereto (including the Lender), Healthcare Finance Group, LLC, as
administrative agent (in such capacity, the “Administrative Agent”), as collateral agent for the
Secured Parties and as collateral manager, and the other entities party thereto. This Note is
subject to the provisions thereof and is subject to optional and mandatory prepayment in whole or
in part as provided therein.

     This Note is secured and guaranteed as provided in the Credit Agreement, the Security
Documents and the other Loan Documents. Reference is hereby made to the Credit Agreement and the
Security Documents for a description of the properties and assets in which a security interest has
been granted, the nature and extent of the security and guarantees, the terms and conditions upon
which the security interest and each guarantee was granted and the rights of the holder of this
Note in respect thereof.

     Upon the occurrence and during the continuation of any one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become, or
may be declared to be, immediately due and payable as provided in the Credit Agreement.

     All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other
notices of any kind.

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     THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT.
TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT
PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

     THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION.

	 	 	 	 	 
	 	BIOSCRIP, INC.,

as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

H-2-2

 

EXHIBIT I-1

PERFECTION CERTIFICATE

     Reference is hereby made to (i) that certain Amended and Restated Security Agreement, dated as
of December 28, 2010 (the “Security Agreement”), among BioScrip, Inc., a Delaware corporation
(“Borrower”), the subsidiary guarantors party thereto (collectively, the “Subsidiary Guarantors”)
and Healthcare Finance Group, LLC (“HFG”), as collateral agent for the benefit of the Secured
Parties (in such capacity, the “Collateral Agent”), and (ii) that certain Amended and Restated
Credit Agreement, dated as of December 28, 2010 (as amended, restated, supplemented, waived or
otherwise modified from time to time, the “Credit Agreement”), among Borrower, the Subsidiary
Guarantors, the Lenders party thereto, the Collateral Agent, HFG, as administrative agent (in such
capacity, the “Administrative Agent”) and as collateral manager, and other entities party thereto.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement.

     The undersigned hereby certify to the Administrative Agent and each of the Secured Parties as
follows:

     1. Names. (a) The exact legal name of each Company, as such name appears
in its respective certificate of incorporation or any other organizational document, is set forth
in Schedule 1(a) hereto. Each Company is (i) the type of entity disclosed next to its name
in Schedule 1(a) hereto and (ii) a registered organization except to the extent disclosed
in Schedule 1(a) hereto. Also set forth in Schedule 1(a) hereto is the
organizational identification number, if any, of each Company that is a registered organization,
the Federal Taxpayer Identification Number of each Company and the jurisdiction of formation of
each Company.

     (b) Schedule 1(b) hereto sets forth any other corporate or organizational
names each Company has had in the past five years, together with the date of any relevant change.

     (c) Schedule 1(c) hereto sets forth a list of all other names (including
trade names or similar appellations) used by each Company, or any other business or organization to
which any Company became the successor by merger, consolidation, acquisition, change in form,
nature or jurisdiction of organization or otherwise, at any time during the past five years and the
date hereof. Schedule 1(c) hereto also sets forth the information required by Section
1 hereto for any other business or organization to which each Company became the successor by
merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or
otherwise, at any time during the past five years and the date hereof. Except as set forth in
Schedule 1(c) hereto, no Company has changed its jurisdiction of organization at any time
during the past four months.

     2. Current Locations. (a) The chief executive office of each Company is
located at the address set forth in Schedule 2(a) hereto.

     (b) Schedule 2(b) hereto sets forth all locations where each Company
maintains any books or records relating to any Collateral.

     (c) Schedule 2(c) hereto sets forth all the other places of business of each
Company.

     (d) Schedule 2(d) hereto sets forth all locations not identified on
Schedule 2(c) hereto where each Company maintains any of the Collateral consisting of
inventory or equipment (whether or not in the possession of any Company) except to the extent that
the fair market value, individually or in the

I-1-1

 

aggregate, of inventory and equipment at all locations not identified on Schedule 2(c)
or Schedule 2(d) hereto does not exceed $100,000.

     (e) Schedule 2(e) hereto sets forth the names and addresses of all persons
or entities other than each Company, such as lessees, consignees, warehousemen or purchasers of
chattel paper, which have possession or are intended to have possession of any of the Collateral
consisting of instruments, chattel paper, inventory or equipment, except to the extent that the
fair market value, individually or in the aggregate (with respect to a particular third party), of
instruments, chattel paper, inventory or equipment not identified on Schedule 2(e) hereto
does not exceed $100,000.

     3. [Reserved]

     4. Extraordinary Transactions. Except for those purchases, acquisitions and
other transactions described on Schedule 4 hereto, all of the Collateral has been
originated by each Company in the ordinary course of business or consists of goods which have been
acquired by such Company in the ordinary course of business from a person in the business of
selling goods of that kind.

     5. File Search Reports. Schedule 5 hereto is a true and accurate
summary of file search reports from (i) the Uniform Commercial Code filing offices (x) in each
jurisdiction identified on Schedule 1(a) or Schedule 2 with respect to each legal
name set forth on Schedule 1(a) and Schedule 1(b) and (y) in each jurisdiction
described in Schedule 1(c) hereto or Schedule 4 hereto relating to any of the
transactions described in Schedule (1)(c) hereto or Schedule 4 hereto with respect
to each legal name of the person or entity from which each Company purchased or otherwise acquired
any of the Collateral and (ii) each filing officer in each real estate recording office identified
on Schedule 8 hereto with respect to real estate on which Collateral consisting of fixtures
is or is to be located. A true copy of each financing statement, including judgment and tax liens,
bankruptcy and pending lawsuits or other filing identified in such file search reports has been
delivered to the Collateral Agent.

     6. UCC Filings. The financing statements (duly authorized by each Company
constituting the debtor therein), including the indications of the collateral, attached as
Schedule 6 hereto relating to the Security Agreement or the applicable Mortgage, are in the
appropriate forms for filing in the filing offices in the jurisdictions identified in Schedule
7 hereto.

     7. Schedule of Filings. Schedule 7 hereto sets forth (i) the
appropriate filing offices for the financing statements attached hereto as Schedule 6 and
(ii) the appropriate filing offices for the filings described in Schedule 14(c) hereto and
(iii) any other actions required to create, preserve, protect and perfect the security interests in
the Collateral granted to the Collateral Agent pursuant to the Security Documents. No other filings
or actions are required to create, preserve, protect and perfect the security interests in the
Collateral granted to the Collateral Agent pursuant to the Security Documents.

     8. Real Property. Schedule 8 hereto sets forth all real property
owned or leased by each Company.

     9. Termination Statements. Attached hereto as Schedule 9(a) are the
duly authorized termination statements in the appropriate form for filing in each applicable
jurisdiction identified in Schedule 9(b) hereto with respect to each Lien described
therein.

     10. No Change. The undersigned knows of no anticipated change in any of the
circumstances or with respect to any of the matters contemplated in Sections 1 through
9 and Sections 11 through 18 of this Perfection Certificate except as set
forth on Schedule 10 hereto.

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     11. Stock Ownership and Other Equity Interests. Schedule 11 hereto
sets forth (i) all the issued and outstanding stock, partnership interests, limited liability
company membership interests or other Equity Interests of each Company and the record and
beneficial owners of such stock, partnership interests, membership interests or other Equity
Interests, and (ii) each equity investment of each Company that represents 50% or less of the
equity of the entity in which such investment was made except to the extent such equity investment
is held in a Securities Account (as defined in the Security Agreement) set forth on Schedule
16 hereto.

     12. Instruments and Tangible Chattel Paper. Schedule 12 hereto sets
forth all promissory notes, instruments (other than checks to be deposited in the ordinary course
of business), tangible chattel paper, electronic chattel paper and other evidence of indebtedness
held by each Company as of the date hereof, including all intercompany notes between or among any
two or more Companies, except to the extent that the amount, individually or in the aggregate, of
the items not identified on Schedule 12 hereto does not exceed $100,000.

     13. Advances. Schedule 13 hereto sets forth (i) the principal
balance (on a Company-by-Company basis) of all advances made by any Company to any other Company as
of the date hereof (other than those identified on Schedule 12), which advances will be on
and after the date hereof evidenced by the Intercompany Note pledged to the Collateral Agent under
the Security Agreement, and (ii) a true and correct list of all unpaid intercompany transfers of
goods sold and delivered by or to any Company as of the date hereof.

     14. Intellectual Property. (a) Patents. Schedule 14(a)
hereto sets forth all of each Company’s Patents issued from, and Patent applications pending in,
the United States Patent and Trademark Office (“USPTO”); Patent Licenses recorded in the USPTO; all
other Patents issued from, or Patent applications pending in, all patent-granting authorities; all
other Patent Licenses, recorded or unrecorded; and including, with respect to each of the foregoing
Patents and Patent applications, the name of the owner and the number of each such Patent or Patent
application. For purposes of this Section 14(a), the term Patent shall have the meaning
given to such term in the Security Agreement.

     (b) Trademarks. Schedule 14(b) hereto sets forth all of each
Company’s Trademarks registered with, and Trademark applications pending in, the USPTO; Trademark
Licenses recorded in the USPTO; all other Trademarks registered with, or Trademark applications
pending in, an authority other than the USPTO; all unregistered Trademarks; all other Trademark
Licenses, recorded or unrecorded; and including, with respect to each of the foregoing registered
Trademarks and Trademark applications, the name of the owner and the number of each such registered
Trademark or Trademark application. For purposes of this Section 14(b), the term Trademark
shall have the meaning given to such term in the Security Agreement.

     (c) Copyrights. Schedule 14(c) hereto sets forth all of each
Company’s Copyrights registered with, and Copyright applications pending in, the United States
Copyright Office (“USCO”); Copyright Licenses recorded in the USCO; and all other registered or
unregistered Copyrights, pending Copyright applications, and recorded or unrecorded Copyright
Licenses, including, with respect to each registered Copyright and Copyright application, the name
of the owner and the number of each such registered Copyright or Copyright application. For
purposes of this Section 14(c), the term Copyright shall have the meaning given to such
term in the Security Agreement.

     (d) Attached hereto as Schedule 14(d) in proper form for filing with the
USPTO, USCO and any other administrative body, domestic or foreign, with which a filing is required
to be made, are (together with the financing statements attached as Schedule 6 hereto) the
filings necessary to preserve, protect and perfect the security interests in the intellectual property set forth on
Schedule 14(a) hereto,

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Schedule 14(b) hereto, and Schedule 14(c) hereto,
including duly signed copies of each of the Patent Security Agreement, Trademark Security Agreement
and Copyright Security Agreement, as applicable. For purposes of this Section 14(d), the
terms Patent Security Agreement, Trademark Security Agreement and Copyright Security Agreement
shall have the meanings given to them in the Security Agreement.

     15. Commercial Tort Claims. Schedule 15 hereto sets forth all
Commercial Tort Claims (as defined in the Security Agreement) held by each Company, including a
brief description thereof, which have a value reasonably believed by the Companies to be,
individually or in the aggregate, in excess of $25,000.

     16. Deposit Accounts, Securities Accounts and Commodity Accounts.
Schedule 16(a) hereto sets forth all Deposit Accounts (as defined in the Security
Agreement) maintained by each Company, including the name of each institution where each such
account is held, the name of each such account and the name of each entity that holds each account,
except to the extent that the amount individually or in the aggregate, of the funds held in all
such accounts not identified on Schedule 16(a) hereto does not exceed $100,000.
Schedule 16(b) hereto sets forth all Lockbox Accounts (as defined in the Security
Agreement) maintained by each Company, including the name of each institution where each such
account is held, the name of each such account and the name of each entity that holds each account.
Schedule 16(c) hereto sets forth all Securities Accounts and Commodity Accounts (as
defined in the Security Agreement) maintained by each Company, including the name of each
institution where each such account is held, the name of each such account and the name of each
entity that holds each account, except to the extent that the fair market value and/or amount, as
the case may be, individually or in the aggregate, of the financial assets and/or commodity
contracts, as the case may be, held in all such accounts not identified on Schedule 16(c)
hereto does not exceed $100,000.

     17. Letter-of-Credit Rights. Schedule 17 hereto sets forth all
Letters of Credit issued in favor of each Company, as beneficiary thereunder, except to the extent
that the face amount, individually or in the aggregate, of all Letters of Credit not identified on
Schedule 17 hereto does not exceed $100,000.

     18. Motor Vehicles. Schedule 18 hereto sets forth all motor
vehicles (covered by certificates of title or ownership) valued, individually or in the aggregate,
at over $1,500,000 and owned by each Company, and the owner and approximate value of such motor
vehicles.

     Each Company hereby authorizes the Collateral Agent to file financing or continuation
statements, and amendments thereto, in all jurisdictions and with all filing offices as the
Collateral Agent may determine, in its sole discretion, are necessary or advisable to perfect the
security interests granted or to be granted to the Collateral Agent under the Security Agreement.
Such financing statements may describe the collateral in the same manner as described in the
Security Agreement or may contain an indication or description of collateral that describes such
property in any other manner as the Collateral Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the collateral
granted to the Collateral Agent, including, without limitation, describing such property as “all
assets” or “all personal property.”

Dated: December 28, 2010

[The remainder of this page has been intentionally left blank]

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     IN WITNESS WHEREOF, each of the undersigned executes this Perfection Certificate as of
the date first above written.1

	 	 	 	 	 
	 	BIOSCRIP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP INFUSION SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CHRONIMED LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP PHARMACY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BRADHURST SPECIALTY PHARMACY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP PHARMACY (NY), INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	1	 	Signatories to be updated as necessary.

I-1-5

 

	 	 	 	 	 
	 	BIOSCRIP PBM SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NATURAL LIVING INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP INFUSION SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP NURSING SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP INFUSION MANAGEMENT, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP PHARMACY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

I-1-6

 

	 	 	 	 	 

Schedule 1(a)

to

Perfection Certificate

Legal Names, Etc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Registered Organization	 	 	 	 	 	Federal Taxpayer	 	 	 	 
	Legal Name	 	 	Type of Entity	 	 	(Yes/No)	 	 	Organizational Number*	 	 	Identification Number	 	 	State of Formation	 

 

			
	*	 	If none, so state.

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Schedule 1(b)

to

Perfection Certificate

Prior Organizational Names

	 	 	 	 	 	 	 	 	 
	Company	 	Prior Name	 	Date of Change

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Schedule 1(c)

to

Perfection Certificate

Other Names; Changes in Corporate Identity

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	List of All Other
	 	 	 	 	Corporate Name	 	 	 	 	 	Date of 	 	State of 	 	Names Used During
	Company	 	of Entity	 	Action	 	Action	 	Formation	 	Past Five Years

[Add Information required by Section 1 to the extent required by Section 1(c) of the
Perfection Certificate]

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Schedule 2(a)

to

Perfection Certificate

Chief Executive Offices

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State

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Schedule 2(b)

to

Perfection Certificate

Location of Books and Records

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State

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Schedule 2(c)

to

Perfection Certificate

Other Places of Business

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State

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Schedule 2(d)

to

Perfection Certificate

Additional Locations of Equipment and Inventory

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State

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Schedule 2(e)

to

Perfection Certificate

Locations of Collateral in Possession of Persons Other Than Companies

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name of Entity in	 	 	 	 	 	 
	 	 	 	 	Possession of	 	 	 	 	 	 
	 	 	 	 	Collateral/Capacity	 	Address/Location of	 	 	 	 
	Company	 	of such Entity	 	Collateral	 	County	 	State

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Schedule 4

to

Perfection Certificate

Transactions Other Than in the Ordinary Course of Business

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Description of Transaction	 	 
	Company	 	Including Parties Thereto	 	Date of Transaction

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Schedule 5

to

Perfection Certificate

File Search Reports

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Search Report Dated	 	Prepared by	 	Jurisdiction

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Schedule 6

to

Perfection Certificate

Copy of Financing Statements to Be Filed

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Schedule 7

to

Perfection Certificate

Filings/Filing Offices

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Applicable Security	 	 
	Type of Filings*	 	Entity	 	Document§§	 	Jurisdictions

 

			
	*	 	UCC1 financing statement, fixture filing,
mortgage, intellectual property filing or other necessary filing.
	 
	§§	 	Mortgage, Security Agreement or other.

I-1-18

 

Schedule 8

to

Perfection Certificate

Real Property

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Owned or	 	Landlord/Owner if	 	Description of
	Entity of Record	 	Location Address	 	Leased	 	Leased	 	Lease Documents

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Schedule 9(a)

to

Perfection Certificate

     Attached hereto is a true copy of each termination statement filing duly acknowledged or
otherwise identified by the filing officer.

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Schedule 9(b)

to

Perfection Certificate

Termination Statement Filings

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC1 File	 	UCC1 File
	Debtor	 	Jurisdiction	 	Secured Party	 	Type of Collateral	 	Date	 	Number

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Schedule 10

to

Perfection Certificate

Changes from Circumstances Described in Perfection Certificate

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Schedule 11

to

Perfection Certificate

Stock Ownership and Other Equity Interests

Company: ________________

	 	 	 	 	 	 	 	 	 
	Current Legal	 	 	 	 	 	 	 	 
	Entities Owned	 	Record Owner	 	Certificate No.	 	No. Shares/Interest	 	Percent Pledged

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Schedule 12

to

Perfection Certificate

Instruments and Tangible Chattel Paper

	1.	 	Promissory Notes:

	 	 	 	 	 	 	 	 	 
	Entity	 	Principal Amount	 	Date of Issuance	 	Interest Rate	 	Maturity Date

	2.	 	Chattel Paper:

	 	 	 	 	 	 	 	 	 
	Entity	 	Principal Amount	 	Date of Issuance	 	Interest Rate	 	Maturity Date

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Schedule 13

to

Perfection Certificate

Advances

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description and Date of	 	 	 	 
	Description and Date of	 	 	 	 	 	Unpaid Intercompany	 	 	 	 
	Advance	 	From	 	To	 	Transfer of Goods	 	From	 	To

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Schedule 14(a)

to

Perfection Certificate

Patents and Patent Licenses 

UNITED STATES PATENTS:

Issued Patents:

	 	 	 	 	 
	OWNER	 	PATENT NUMBER	 	DESCRIPTION

Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	DESCRIPTION

Licenses:

	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	PATENT/
 APPLICATION 
NUMBER	 	DESCRIPTION

I-1-26

 

Schedule 14(a) (continued)

to

Perfection Certificate

OTHER PATENTS:

Issued Patents:

	 	 	 	 	 	 	 
	OWNER	 	PATENT NUMBER	 	COUNTRY/STATE	 	DESCRIPTION

Applications:

	 	 	 	 	 	 	 
	OWNER	 	APPLICATION 
NUMBER	 	COUNTRY/STATE	 	DESCRIPTION

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PATENT/ 
APPLICATION	 	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	DESCRIPTION

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Schedule 14(b) 

to

Perfection Certificate

Trademarks and Trademark Licenses 

UNITED STATES TRADEMARKS:

Registrations:

	 	 	 	 	 
	OWNER	 	REGISTRATION NUMBER	 	TRADEMARK

Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	TRADEMARK

Licenses:

	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	REGISTRATION/
 APPLICATION 
NUMBER	 	TRADEMARK

I-1-28

 

Schedule 14(b) (continued)

to

Perfection Certificate

OTHER TRADEMARKS:

Registrations:

	 	 	 	 	 	 	 
	OWNER	 	REGISTRATION
 NUMBER	 	COUNTRY/STATE	 	TRADEMARK

Applications:

	 	 	 	 	 	 	 
	OWNER	 	APPLICATION
 NUMBER	 	COUNTRY/STATE	 	TRADEMARK

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	APPLICATION
 NUMBER	 	TRADEMARK

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Schedule 14(c)

to

Perfection Certificate

Copyrights and Copyright Licenses

UNITED STATES COPYRIGHTS

Registrations:

	 	 	 	 	 
	OWNER	 	TITLE	 	REGISTRATION NUMBER

Applications:

	 	 	 
	OWNER	 	APPLICATION NUMBER

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/
 APPLICATION	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	DESCRIPTION

I-1-30

 

Schedule 14(c) (continued)

to

Perfection Certificate

OTHER COPYRIGHTS

Registrations:

	 	 	 	 	 	 	 
	OWNER	 	COUNTRY STATE	 	TITLE	 	REGISTRATION NUMBER

Applications:

	 	 	 	 	 
	OWNER	 	COUNTRY/STATE	 	APPLICATION NUMBER

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	APPLICATION
 NUMBER	 	DESCRIPTION

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Schedule 14(d)

to

Perfection Certificate

Intellectual Property Filings

I-1-32

 

Schedule 15

to

Perfection Certificate

Commercial Tort Claims

I-1-33

 

Schedule 16(a)

to

Perfection Certificate

Deposit Accounts (Other Than Lockbox Accounts)

	 	 	 	 	 	 	 	 	 
	Owner	 	Bank	 	Account Numbers

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Schedule 16(b)

to

Perfection Certificate

Lockbox Accounts

	 	 	 	 	 	 	 	 	 
	Owner	 	Bank	 	Account Numbers

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Schedule 16(c)

to

Perfection Certificate

Securities Accounts and Commodity Accounts

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Owner	 	Type of Account	 	Intermediary	 	Account Numbers

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Schedule 17

to

Perfection Certificate

Letter of Credit Rights

I-1-37

 

Schedule 18

to

Perfection Certificate

Motor Vehicles

I-1-38

 

EXHIBIT I-2

PERFECTION CERTIFICATE SUPPLEMENT

     Reference is hereby made to (i) that certain Amended and Restated Security Agreement, dated as
of December 28, 2010 (the “Security Agreement”), among BioScrip, Inc., a Delaware corporation
(“Borrower”), the subsidiary guarantors party thereto (collectively, the “Subsidiary Guarantors”)
and Healthcare Finance Group, LLC (“HFG”), as collateral agent for the benefit of the Secured
Parties (in such capacity, the “Collateral Agent”), and (ii) that certain Amended and Restated
Credit Agreement, dated as of December 28, 2010 (as amended, restated, supplemented, waived or
otherwise modified from time to time, the “Credit Agreement”), among Borrower, the Subsidiary
Guarantors, the Lenders party thereto, the Collateral Agent, HFG, as administrative agent (in such
capacity, the “Administrative Agent”) and as collateral manager, and other entities party thereto.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement. This Perfection Certificate Supplement is
delivered pursuant to Section 5.13(b) of the Credit Agreement.

     The undersigned1 hereby certify to the Administrative Agent and each of the Secured
Parties that, as of the date hereof, there has been no change in the information described in the
Perfection Certificate delivered on the Restatement Date (as supplemented by any perfection
certificate supplements delivered prior to the date hereof, the “Prior Perfection Certificate”),
other than as follows:

     1. Names. (a) Except as listed on Schedule 1(a) hereto, (i)
Schedule 1(a) to the Prior Perfection Certificate sets forth the exact legal name of each Company,
as such name appears in its respective certificate of incorporation or any other organizational
document; (ii) each Company is (x) the type of entity disclosed next to its name in Schedule 1(a)
to the Prior Perfection Certificate and (y) a registered organization except to the extent
disclosed in Schedule 1(a) to the Prior Perfection Certificate; and (z) Schedule 1(a) to the Prior
Perfection Certificate sets forth the organizational identification number, if any, of each Company
that is a registered organization, the Federal Taxpayer Identification Number of each Company and
the state of formation of each Company.

     (b) Except as listed on Schedule 1(b) hereto, Schedule 1(b) to the Prior
Perfection Certificate sets forth any other corporate or organizational names each Company has had
in the past five years, together with the date of the relevant change.

     2. Current Locations. (a) Except as listed on Schedule 2(a)
hereto, the chief executive office of each Company is located at the address set forth in Schedule
2(a) to the Prior Perfection Certificate.

     (b) Except as listed on Schedule 2(b) hereto, Schedule 2(b) to the Prior
Perfection Certificate sets forth all locations where each Company maintains any books or records
relating to any Collateral.

     (c) Except as listed on Schedule 2(c) hereto, Schedule 2(c) to the Prior
Perfection Certificate sets forth all the other places of business of each Company.

     (d) Except as listed on Schedule 2(d) hereto, Schedule 2(d) to the Prior
Perfection Certificate sets forth all other locations not identified on Schedule 2(c)
hereto or Schedule 2(c) to the Prior

 

			
	1	 	Insert appropriate officers of the Companies.

I-2-1

 

Perfection Certificate where each Company maintains any of the Collateral consisting of
inventory or equipment (whether or not in the possession of any Company) except to the extent that
the fair market value, individually or in the aggregate, of inventory and equipment at all
locations not identified on Schedule 2(c) or Schedule 2(d) hereto and on Schedule
2(c) thereto or Schedule 2(d) thereto does not exceed $100,000.

     (e) Except as listed on Schedule 2(e) hereto, Schedule 2(e) to the Prior
Perfection Certificate sets forth the names and addresses of all persons or entities other than
each Company, such as lessees, consignees, warehousemen or purchasers of chattel paper, which have
possession or are intended to have possession of any of the Collateral consisting of instruments,
chattel paper, inventory or equipment, except to the extent that the value, individually or in the
aggregate (with respect to a particular third party), of instruments, chattel paper, inventory and
equipment not identified on Schedule 2(e) hereto and Schedule 2(e) thereto does not exceed
$100,000.

     3. [Reserved]

     4. Extraordinary Transactions. Except for those purchases, acquisitions and
other transactions described on Schedule 4 hereto and on Schedule 4 to the Prior Perfection
Certificate, all of the Collateral has been originated by each Company in the ordinary course of
business or consists of goods which have been acquired by such Company in the ordinary course of
business from a person in the business of selling goods of that kind.

     5. File Search Reports. Except as listed on Schedule 5 hereto,
Schedule 5 to the Prior Perfection Certificate is a true and accurate summary of file search
reports from (i) the Uniform Commercial Code filing offices (x) in each jurisdiction identified on
Schedule 1(a) or Schedule 2 hereto and thereto with respect to each legal name set
forth on Schedule 1(a) and Schedule 1(b) hereto and thereto and (y) in each
jurisdiction described in Schedule 1(c) thereto, or Schedule 4 hereto or Schedule 4 thereto
relating to any of the transactions described in Schedule (1)(c) thereto or Schedule 4
hereto or Schedule 4 thereto with respect to each legal name of the person or entity from which
each Company purchased or otherwise acquired any of the Collateral and (ii) each filing officer in
each real estate recording office identified on Schedule 8 hereto or Schedule 8 thereto
with respect to real estate on which Collateral consisting of fixtures is or is to be located.
Except as listed on Schedule 5 hereto, Schedule 5 to the Prior Perfection Certificate is a
true copy of each financing statement, including judgment and tax liens, bankruptcy and pending
lawsuits or other filing identified in such file search reports.

     6. UCC Filings. Except as set listed on Schedule 6 hereto, the
financing statements (duly authorized by each Company constituting the debtor therein), including
the indications of the collateral, relating to the Security Agreement or the applicable Mortgage,
are set forth in Schedule 6 to the Prior Perfection Certificate, and are in the appropriate forms
for filing in the filing offices in the jurisdictions identified in Schedule 6 hereto and
Schedule 6 thereto.

     7. Schedule of Filings. Except as listed on Schedule 7 hereto,
Schedule 7 to the Prior Perfection Certificate sets forth (i) the appropriate filing offices for
the financing statements attached thereto as Schedule 5 and hereto as Schedule 5, (ii) the
appropriate filing offices for the filings described in Schedule 13(e) thereto and Schedule
13(e) hereto and (iii) any other actions required to create, preserve, protect and perfect the
security interests in the Collateral granted to the Collateral Agent pursuant to the Security
Documents. No other filings or actions are required to create, preserve, protect and perfect the
security interests in the Collateral granted to the Collateral Agent pursuant to the Security
Documents.

I-2-2

 

     8. Real Property. Except as listed on Schedule 8 hereto, Schedule 8
to the Prior Perfection Certificate sets forth all real property owned or leased by each Company.

     9. Termination Statements. Except as listed on Schedule 9(a)
hereto, Schedule 9(a) to the Prior Perfection Certificate sets forth the duly authorized
termination statements in the appropriate form for filing in each applicable jurisdiction
identified in Schedule 9(b) hereto and Schedule 9(b) thereto with respect to each Lien
described therein.

     10. No Change. The undersigned knows of no anticipated change in any of the
circumstances or with respect to any of the matters contemplated in Sections 1 through
9 and Sections 11 through 18 hereto except as set forth on Schedule
10 hereto.

     11. Stock Ownership and other Equity Interests. Except as listed on
Schedule 11 hereto, Schedule 11 to the Prior Perfection Certificate sets forth (i) all the
issued and outstanding stock, partnership interests, limited liability company membership interests
or other Equity Interests of each Company and the record and beneficial owners of such stock,
partnership interests, membership interests or other Equity Interests and (ii) each equity
investment of each Company that represents 50% or less of the equity of the entity in which such
investment was made, except to the extent such equity investment is held in a Securities Account
(as defined in the Security Agreement) set forth on Schedule 16(b) hereto or on Schedule
16(b) to the Prior Perfection Certificate.

     12. Instruments and Tangible Chattel Paper. Except as listed on
Schedule 12 hereto, Schedule 12 to the Prior Perfection Certificate sets forth all
promissory notes, instruments (other than checks to be deposited in the ordinary course of
business), tangible chattel paper, electronic chattel paper and other evidence of indebtedness held
by each Company as of the date hereof, including all intercompany notes between or among any two or
more Companies, except to the extent that the amount, individually or in the aggregate, of the
items not identified on Schedule 12 hereto and Schedule 12 thereto does not exceed
$100,000.

     13. Advances. Except as listed on Schedule 13 hereto, Schedule 13
to the Prior Perfection Certificate sets forth (i) the principal balance (on a Company-by-Company
basis) of all advances made by any Company to any other Company as of the date hereof (other than
those identified on Schedule 12 hereto or Schedule 12 thereto), which advances will be on
and after the date hereof evidenced by the Intercompany Note pledged to the Collateral Agent under
the Security Agreement and (ii) all unpaid intercompany transfers of goods sold and delivered by or
to any Company as of the date hereof.

     14. Intellectual Property. (a) Patents. Except as listed on
Schedule 14(a) hereto, Schedule 14(a) to the Prior Perfection Certificate sets forth all of
each Company’s Patents issued from, and Patent Applications pending in, the United States Patent
and Trademark Office (“USPTO”); Patent Licenses recorded in the USPTO; all other Patents issued
from, or Patent Applications pending in, all patent-granting authorities; all other Patent
Licenses, recorded or unrecorded; and including, with respect to each of the foregoing Patents and
Patent Applications, the name of the owner and the number of each such Patent or Patent
Application. For purposes of this Section 14(a), the terms Patent, Patent Application, and
Patent License shall have the meanings given to them in the Security Agreement.

     (b) Trademarks. Except as listed on Schedule 14(b) hereto, Schedule
14(b) to the Prior Perfection Certificate sets forth all of each Company’s Trademarks registered
with, and Trademark Applications pending in, the USPTO; Trademark Licenses recorded in the USPTO;
all other Trademarks registered with, or Trademark Applications pending in, an authority other than
the USPTO; all unregistered Trademarks; all other Trademark Licenses, recorded or unrecorded; and
including, with

I-2-3

 

respect to each of the foregoing registered Trademarks and Trademark Applications, the name of
the owner and the number of each such registered Trademark or Trademark Application. For purposes
of this Section 14(b), the terms Trademark, Trademark Application, and Trademark License
shall have the meanings given to them in the Security Agreement.

     (c) Copyrights. Except as listed on Schedule 14(c) hereto, Schedule
14(c) to the Prior Perfection Certificate sets forth all of each Company’s Copyrights registered
with, and Copyright Applications pending in, the United States Copyright Office (“USCO”); Copyright
Licenses recorded in the USCO; and all other registered or unregistered Copyrights, pending
Copyright Applications, and recorded or unrecorded Copyright Licenses, including, with respect to
each registered Copyright and Copyright Application, the name of the owner and the number of each
such registered Copyright or Copyright Application. For purposes of this Section 14(c),
the terms Copyright, Copyright Application, and Copyright License shall have the meanings given to
them in the Security Agreement.

     (d) Except as listed on Schedule 14(d) hereto, attached to the Prior
Perfection Certificate as Schedule 14(c) in proper form for filing with the USPTO and the USCO are
(together with the financing statements attached as Schedule 6 hereto and Schedule 6
thereto) the filings necessary to preserve, protect and perfect the security interests in the
Trademarks, Trademark Licenses, Patents, Patent Licenses, Copyrights and Copyright Licenses set
forth on Schedules 14(a), (b) and (c) hereto and Schedules 14(a), (b) and
(c) thereto, including duly signed copies of each of the Patent Security Agreement, Trademark
Security Agreement and the Copyright Security Agreement, as applicable. For purposes of this
Section 14(d), the terms Trademarks, Trademark Licenses, Patents, Patent Licenses,
Copyrights, Copyright Licenses, Patent Security Agreement, Trademark Security Agreement and
Copyright Security Agreement shall have the meanings given to them in the Security Agreement.

     15. Commercial Tort Claims. Except as listed on Schedule 15 hereto,
Schedule 15 to the Prior Perfection Certificate sets forth all Commercial Tort Claims (as defined
in the Security Agreement) held by each Company, including a brief description thereof, which have
a value reasonably believed by the Companies to be, individually or in the aggregate, in excess of
$25,000.

     16. Deposit Accounts, Securities Accounts and Commodity Accounts. Except as
listed on Schedule 16(a) hereto, Schedule 16(a) to the Prior Perfection Certificate sets
forth all Deposit Accounts (as defined in the Security Agreement) maintained by each Company,
including the name of each institution where each such account is held, the name of each such
account and the name of each entity that holds each account, except to the extent that the amount
of the funds, individually or in the aggregate (with respect to any Financial Institution), held
in all such accounts not identified on Schedule 16(a) hereto and Schedule 16(a) thereto
does not exceed $100,000. Except as listed on Schedule 16(b) hereto, Schedule 16(b) to the
Prior Perfection Certificate sets forth all Lockbox Accounts (as defined in the Security Agreement)
maintained by each Company, including the name of each institution where each such account is held,
the name of each such account and the name of each entity that holds each account. Except as
listed on Schedule 16(c) hereto, Schedule 16(c) to the Prior Perfection Certificate sets
forth all Securities Accounts and Commodity Accounts (as defined in the Security Agreement)
maintained by each Company, including the name of each institution where each such account is held,
the name of each such account and the name of each entity that holds each account, except to the
extent that the fair market value and/or amount, as the case may be, individually or in the
aggregate, of the financial assets and/or commodity contracts, as the case may be, held in all such
accounts not identified on Schedule 16(c) hereto and Schedule 16(c) to the Prior Perfection
Certificate does not exceed $100,000.

     17. Letter-of-Credit Rights. Except as listed on Schedule 17
hereto, Schedule 17 to the Perfection Certificate sets forth all Letters of Credit issued in favor
of each Company, as beneficiary

I-2-4

 

thereunder, except to the extent that the face amount, individually or in the aggregate, of
all Letters of Credit not identified on Schedule 17 hereto does not exceed $100,000.

     18. Motor Vehicles. Except as listed on Schedule 18 hereto,
Schedule 18 to the Prior Perfection Certificate sets forth all motor vehicles (covered by
certificates of title or ownership) valued at over $1,500,000 and owned by each Company, and the
owner and approximate value of such motor vehicles.

     Each Company hereby authorizes the Collateral Agent to file financing or continuation
statements, and amendments thereto, in all jurisdictions and with all filing offices as the
Collateral Agent may determine, in its sole discretion, are necessary or advisable to perfect the
security interests granted or to be granted to the Collateral Agent under the Security Agreement.
Such financing statements may describe the collateral in the same manner as described in the
Security Agreement or may contain an indication or description of collateral that describes such
property in any other manner as the Collateral Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the collateral
granted to the Collateral Agent, including, without limitation, describing such property as “all
assets” or “all personal property.”

Dated: [___________]

[The remainder of this page has been intentionally left blank]

I-2-5

 

     IN WITNESS WHEREOF, each of the undersigned executes this Perfection Certificate Supplement as
of the date first above written.

	 	 	 	 	 
	 	[________________________]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[________________________]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[________________________]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

I-2-6

 

	 	 	 	 	 

Schedule 1(a)

To

Perfection Certificate Supplement

Legal Names, Etc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Registered	 	 	 	Federal Taxpayer	 	 
	 	 	 	 	Organization	 	Organizational	 	Identification	 	 
	Legal Name	 	Type of Entity	 	(Yes/No)	 	Number*	 	Number	 	State of Formation
	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	If none, so state.

I-2-7

 

Schedule 1(b)

To

Perfection Certificate Supplement

Prior Organizational Names

	 	 	 	 	 
	Company	 	Prior Name	 	Date of Change
	 	 	 	 	 

I-2-8

 

Schedule 2(a)

To

Perfection Certificate Supplement

Chief Executive Offices

	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State
	 	 	 	 	 	 	 

I-2-9

 

Schedule 2(b)

To

Perfection Certificate Supplement

Location of Books and Records

	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State
	 	 	 	 	 	 	 

I-2-10

 

Schedule 2(c)

To

Perfection Certificate Supplement

Other Places of Business

	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State
	 	 	 	 	 	 	 

I-2-11

 

Schedule 2(d)

To

Perfection Certificate Supplement

Additional Locations of Equipment and Inventory

	 	 	 	 	 	 	 
	Company	 	Address	 	County	 	State
	 	 	 	 	 	 	 

I-2-12

 

Schedule 2(e)

To

Perfection Certificate Supplement

Locations of Collateral in Possession of Persons Other Than Companies

	 	 	 	 	 	 	 	 	 
	 	 	Name of Entity in	 	 	 	 	 	 
	 	 	Possession of	 	 	 	 	 	 
	 	 	Collateral/Capacity	 	Address/Location of	 	 	 	 
	Company	 	of such Entity	 	Collateral	 	County	 	State
	 	 	 	 	 	 	 	 	 

I-2-13

 

Schedule 4

To

Perfection Certificate Supplement

Transactions Other Than in the Ordinary Course of Business

	 	 	 	 	 
	 	 	Description of Transaction	 	 
	Company	 	Including Parties Thereto	 	Date of Transaction

I-2-14

 

Schedule 5

To

Perfection Certificate Supplement

File Search Reports

	 	 	 	 	 	 	 
	Company	 	Search Report Dated	 	Prepared by	 	Jurisdiction

I-2-15

 

Schedule 6

To

Perfection Certificate Supplement

Copy of Financing Statements To Be Filed

I-2-16

 

Schedule 7

To

Perfection Certificate Supplement

Filings/Filing Offices

	 	 	 	 	 	 	 
	 	 	 	 	Applicable Security	 	 
	Type of Filings*	 	Entity	 	Document***	 	Jurisdictions
	 	 	 	 	 	 	 

 

			
	*	 	UCC1 financing statement, fixture filing,
mortgage, intellectual property filing or other necessary filing.
	 
	***	 	Mortgage, Security Agreement or other.

I-2-17

 

Schedule 8

To

Perfection Certificate Supplement

Real Property

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Owned or	 	Landlord/Owner if	 	Description of
	Entity of Record	 	Location Address	 	Leased	 	Leased	 	Lease Documents
	 	 	 	 	 	 	 	 	 

I-2-18

 

Schedule 9(a)

To

Perfection Certificate Supplement

     Attached hereto is a true copy of each termination statement filing duly acknowledged or
otherwise identified by the filing officer.

I-2-19

 

Schedule 9(b)

To

Perfection Certificate Supplement

Termination Statement Filings

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	UCC1 File	 	UCC1 File
	Debtor	 	Jurisdiction	 	Secured Party	 	Type of Collateral	 	Date	 	Number

I-2-20

 

Schedule 10

To

Perfection Certificate Supplement

Changes from Circumstances Described in Prior Perfection Certificate

I-2-21

 

Schedule 11

To

Perfection Certificate Supplement

Stock Ownership and Other Equity Interests

Company: ________________

	 	 	 	 	 	 	 	 	 
	Current Legal	 	 	 	 	 	 	 	 
	Entities Owned	 	Record Owner	 	Certificate No.	 	No. Shares/Interest	 	Percent Pledged
	 	 	 	 	 	 	 	 	 

I-2-22

 

Schedule 12

To

Perfection Certificate Supplement

Instruments and Tangible Chattel Paper

1. Promissory Notes:

	 	 	 	 	 	 	 	 	 
	Entity	 	Principal Amount	 	Date of Issuance	 	Interest Rate	 	Maturity Date
	 	 	 	 	 	 	 	 	 

2. Chattel Paper:

I-2-23

 

Schedule 13

To

Perfection Certificate Supplement

Advances

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description and Date of	 	 	 	 
	Description	 	 	 	 	 	Unpaid Intercompany	 	 	 	 
	and Date of Advance	 	From	 	To	 	Transfer of Goods	 	From	 	To
	 	 	 	 	 	 	 	 	 	 	 

I-2-24

 

Schedule 14(a)

To

Perfection Certificate Supplement

Patents and Patent Licenses

UNITED STATES PATENTS:

Issued Patents:

	 	 	 	 	 
	OWNER	 	PATENT NUMBER	 	DESCRIPTION
	 	 	 	 	 

Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	DESCRIPTION
	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 
	LICENSEE	 	LICENSOR	 	PATENT/ APPLICATION NUMBER	 	DESCRIPTION
	 	 	 	 	 	 	 

I-2-25

 

Schedule 14(a) (continued)

To

Perfection Certificate Supplement

OTHER PATENTS:

Issued Patents:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	OWNER	 	PATENT NUMBER	 	COUNTRY/STATE	 	DESCRIPTION

Applications:

	 	 	 	 	 	 	 
	 	 	APPLICATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	DESCRIPTION
	 	 	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PATENT/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	DESCRIPTION

I-2-26

 

Schedule 14(b)

To

Perfection Certificate Supplement

Trademarks and Trademark Licenses

UNITED STATES TRADEMARKS:

Registrations:

	 	 	 	 	 
	OWNER	 	REGISTRATION NUMBER	 	TRADEMARK
	 	 	 	 	 

Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	TRADEMARK
	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	TRADEMARK
	 	 	 	 	 	 	 

I-2-27

 

Schedule 14(b) (continued)

To

Perfection Certificate Supplement

OTHER TRADEMARKS:

Registrations:

	 	 	 	 	 	 	 
	 	 	REGISTRATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	TRADEMARK
	 	 	 	 	 	 	 

Applications:

	 	 	 	 	 	 	 
	 	 	APPLICATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	TRADEMARK
	 	 	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	TRADEMARK
	 	 	 	 	 	 	 	 	 

I-2-28

 

Schedule 14(c)

To

Perfection Certificate Supplement

Copyrights and Copyright Licenses

UNITED STATES COPYRIGHTS

Registrations:

	 	 	 	 	 
	OWNER	 	TITLE	 	REGISTRATION NUMBER
	 	 	 	 	 

Applications:

	 	 	 
	OWNER	 	APPLICATION NUMBER
	 	 	 

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	DESCRIPTION
	 	 	 	 	 	 	 

I-2-29

 

Schedule 14(c) (continued)

To

Perfection Certificate Supplement

OTHER COPYRIGHTS

Registrations:

	 	 	 	 	 	 	 
	OWNER	 	COUNTRY STATE	 	TITLE	 	REGISTRATION NUMBER
	 	 	 	 	 	 	 

Applications:

	 	 	 	 	 
	OWNER	 	COUNTRY/STATE	 	APPLICATION NUMBER
	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	DESCRIPTION
	 	 	 	 	 	 	 	 	 

I-2-30

 

Schedule 14(d)

To

Perfection Certificate Supplement

Intellectual Property Filings

I-2-31

 

Schedule 15

To

Perfection Certificate Supplement

Commercial Tort Claims

I-2-32

 

Schedule 16(a)

To

Perfection Certificate Supplement

Deposit Accounts (Other Than Lockbox Accounts)

	 	 	 	 	 
	OWNER	 	BANK	 	ACCOUNT NUMBERS
	 	 	 	 	 

I-2-33

 

Schedule 16(b)

To

Perfection Certificate Supplement

Lockbox Accounts

	 	 	 	 	 
	OWNER	 	BANK	 	ACCOUNT NUMBERS
	 	 	 	 	 

I-2-34

 

Schedule 16(c)

To

Perfection Certificate Supplement

Securities Accounts and Commodity Accounts

	 	 	 	 	 	 	 
	OWNER	 	TYPE OF ACCOUNT	 	INTERMEDIARY	 	ACCOUNT NUMBERS
	 	 	 	 	 	 	 

I-2-35

 

Schedule 17

To

Perfection Certificate Supplement

Letter of Credit Rights

I-2-36

 

Schedule 18

To

Perfection Certificate Supplement

Motor Vehicles

I-2-37

 

EXHIBIT J

[Form of Security Agreement — see document [__________]]

J-1

 

EXHIBIT K

[Form of]

NON-BANK CERTIFICATE

     Reference is made to the Amended and Restated Credit Agreement, dated as of December 28, 2010
(as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit
Agreement”), among BioScrip, Inc., a Delaware corporation, the Subsidiary Guarantors, the Lenders,
Healthcare Finance Group, LLC, as administrative agent, as collateral agent for the Secured
Parties, and as collateral manager, and other entities party thereto. Capitalized terms used but
not defined herein shall have the meaning assigned to such terms in the Credit Agreement.

     Pursuant to Section 2.15(e) of the Credit Agreement, the undersigned is not a bank (as such
term is used in Section 881(c)(3)(A), of the Internal Revenue Code of 1986, as amended).

	 	 	 	 	 
	 	[NAME OF LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[ADDRESS]	 	 
	 

Dated:________________________, 20___

K-1

 

EXHIBIT L

[Intentionally Omitted.]

L-1

 

EXHIBIT M

[Form of]

SUPPLIER INTERCREDITOR AGREEMENT

     This INTERCREDITOR AGREEMENT, dated as of [_________] (this “Agreement”), is between
Healthcare Finance Group, LLC, as agent for the First Priority Secured Parties (as defined below)
(in such capacity, the “First Priority Agent”), and [_________], a [Delaware] corporation
(“Supplier”).

PRELIMINARY STATEMENT

     Reference is made to (a) the Amended and Restated Credit Agreement, dated as of December 28,
2010 (as amended, supplemented or otherwise modified from time to time in accordance with the terms
thereof, the “First Priority Debt Agreement”), among BioScrip, Inc., a Delaware corporation (the
“Company”), the lenders from time to time party thereto (the “First Priority Creditors”), the
subsidiary guarantors of the Company from time to time party thereto, Healthcare Finance Group,
LLC, as administrative agent for the First Priority Creditors, as collateral agent for the First
Priority Secured Parties and as collateral manager, and other entities party thereto, (b) the
Amended and Restated Security Agreement, dated as of December 28, 2010 (as amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof, the “First Priority
Security Agreement”), among the Company, the subsidiaries of the Company from time to time party
thereto, and the First Priority Agent, (c) the other Loan Documents as defined, and referred to, in
the First Priority Debt Agreement, and (d) [insert description of supplier agreements] (as amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof, the
“Prime Vendor Agreement”), between by Supplier and the Company and certain subsidiaries of the
Company.

RECITALS

     A. Pursuant to the Prime Vendor Agreement, the Grantors (as hereinafter defined) granted
Supplier a lien in all of their existing and future inventory and accounts and proceeds thereof
(including insurance proceeds).

     B. The First Priority Creditors have agreed to make loans and other extensions of credit to
the Company pursuant to the First Priority Debt Agreement (in an aggregate committed principal
amount, as of the Restatement Date, of $150,000,000, subject to the terms and conditions contained
therein and in the other Loan Documents) on the condition, among others, that the First Priority
Claims (such term and each other capitalized term used but not defined in the preliminary statement
or these recitals having the meaning given it in Article I) shall be secured by first
priority Liens on, and security interests in, substantially all of the assets of the Company
(including the Collateral), and that the priority of the Liens securing the First Priority Claims
be senior and prior to the Liens securing the Second Priority Claims.

     C. Supplier has agreed to the subordination of Liens securing the Company’s obligations under
the Second Priority Financing Documents to the Liens securing the First Priority Claims, upon the
terms and subject to the conditions set forth in this Agreement.

     D. The First Priority Debt Agreement requires, among other things, that the First Priority
Collateral Agent and Supplier set forth in this Agreement, among other things, their respective
rights, obligations and remedies with respect to the Collateral.

 

 

     Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Certain Defined Terms. Capitalized terms used in this Agreement and not otherwise
defined herein shall, except to the extent the context otherwise requires, have the meanings set
forth in the First Priority Debt Agreement (as in effect on the date hereof) or the First Priority
Security Agreement (as in effect on the date hereof), as applicable.

          SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms shall have the
meanings specified below:

     “Agreement” shall have the meaning assigned to such term in the preamble hereto.

     “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now
and hereinafter in effect, or any successor statute.

     “Bankruptcy Law” shall mean the Bankruptcy Code and any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law.

     “Collateral” shall mean, collectively, all Second Priority Collateral that is (or purports to
be or, pursuant to the terms hereof or any of the First Priority Debt Documents, is required to be)
part of the First Priority Collateral.

     “Company” shall have the meaning assigned to such term in the preliminary statement to this
Agreement.

     “Debt Documents” shall mean the First Priority Debt Documents and the Second Priority
Financing Documents.

     “DIP Financing” shall have the meaning assigned to such term in Section 5.01(a).

     “DIP Financing Liens” shall have the meaning assigned to such term in Section 5.01(a).

     “Discharge of First Priority Claims” shall mean, subject to Sections 6.01 and
6.02, (a) payment in full in cash of the principal of and interest (including interest
accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether
allowed or allowable in such Insolvency or Liquidation Proceeding) and premium, if any, on all
Indebtedness outstanding under the First Priority Debt Documents to the extent constituting First
Priority Claims, (b) payment in full in cash of all other First Priority Claims that are due and
payable or otherwise accrued and owing at or prior to the time such principal and interest are
paid, (c) cancellation of or the entry into collateralization arrangements satisfactory to the
First Priority Agent and the Issuing Bank with respect to all Letters of Credit issued and
outstanding under the First Priority Debt Agreement, and (d) the termination or expiration of all
commitments to lend and all obligations to issue or extend Letters of Credit under the First
Priority Debt Agreement; provided, further, that, with respect to each First Priority Creditor’s
First Priority Claims, the acceptance by such First Priority (in its absolute discretion) of
non-cash consideration in exchange for its First Priority Claims (or applicable specified portion
thereof), coupled with a written acknowledgment of discharge in form and substance satisfactory to
such First Priority

2

 

Creditor, shall also constitute, subject to Section 6.02, a Discharge of First
Priority Claims only with respect to such exchanged First Priority Claims relating to such First
Priority Creditor.

     “Discharge of Second Priority Claims” shall mean, subject to Section 6.02, payment in
full in cash of all Indebtedness outstanding under the Second Priority Financing Documents to the
extent constituting Second Priority Claims and the termination of all Second Priority Financing
Documents.

     “Disposition” shall mean any sale, lease, exchange, transfer or other disposition. “Dispose”
shall have a correlative meaning.

     “First Priority Agent” shall have the meaning assigned to such term in the preamble to this
Agreement.

     “First Priority Claims” shall mean (i) the due and punctual payment of (A) the principal of
and interest (including interest accruing during the pendency of any Insolvency or Liquidation
Proceeding, regardless of whether allowed or allowable in such proceeding) on the loans and other
advances outstanding under the First Priority Debt Agreement, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (B) each payment required to be made by the
Company under the First Priority Debt Agreement in respect of any Letter of Credit, including
payments in respect of reimbursement of disbursements, interest thereon and obligations to provide
cash collateral, and (C) all other monetary obligations of the Company to any of the First Priority
Secured Parties under the First Priority Debt Agreement and each of the other First Priority Debt
Documents, including fees (including any early termination or prepayment fees), costs, expenses
(including fees and expenses of counsel) and indemnities, whether primary, secondary, direct,
contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any
Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such
proceeding), (ii) the due and punctual performance of all other obligations of the Company under or
pursuant to the First Priority Debt Agreement and each of the other First Priority Debt Documents,
and (iii) the due and punctual payment and performance of all the obligations of each other Grantor
under or pursuant to the First Priority Debt Agreement and each of the other First Priority Debt
Documents.

     “First Priority Collateral” shall mean, collectively, all “Collateral”, as defined in each of
the First Priority Debt Agreement and/or in any other First Priority Debt Document, including all
property of any Grantor now or at any time hereafter subject to Liens securing any First Priority
Claims.

     “First Priority Creditors” shall have the meaning assigned to such term in the preliminary
statement of this Agreement.

     “First Priority Debt Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “First Priority Debt Documents” shall mean the “Loan Documents” as defined in the First
Priority Debt Agreement.

     “First Priority Liens” shall mean all Liens on the First Priority Collateral securing the
First Priority Claims, whether created under the First Priority Security Documents or acquired by
possession, statute (including any judgment lien), operation of law, subrogation or otherwise.

3

 

     “First Priority Secured Parties” shall mean, at any time, (a) the First Priority Creditors,
(b) the First Priority Agent, (d) the Issuing Bank, (e) each other Person to whom any of the First
Priority Claims is owed (including any Affiliate of a First Priority Creditor to whom any First
Priority Claims of the type described in clause (b) of the definition thereof is owed) and (f) the
successors and assigns of each of the foregoing.

     “First Priority Security Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “First Priority Security Documents” shall mean the First Priority Debt Agreement, the First
Priority Security Agreement and any other agreement, document or instrument pursuant to which a
Lien is granted by any Grantor to secure any First Priority Claims or under which rights or
remedies with respect to any such Lien are governed.

     “Grantors” shall mean the Company and each of its Subsidiaries that shall have created or
purported to create any First Priority Lien or Second Priority Lien on all or any part of its
assets to secure any First Priority Claims or any Second Priority Claims, and each other Person
that shall have created or purported to create any First Priority Lien or Second Priority Lien on
all or any part of its assets to secure any First Priority Claims or any Second Priority Claims.

     “Guarantors” shall mean, collectively, each Grantor that has guaranteed, or that may from time
to time hereafter guarantee, the First Priority Claims or the Second Priority Claims, whether by
executing and delivering the First Priority Debt Agreement, the First Priority Security Agreement,
the Second Priority Financing Agreement and a supplement thereto or otherwise.

     “Indebtedness” shall mean and includes all obligations that constitute “Indebtedness” as
defined in the First Priority Debt Agreement.

     “Insolvency or Liquidation Proceeding” shall mean (a) any voluntary or involuntary proceeding
under the Bankruptcy Code or any other Bankruptcy Law with respect to any Grantor, (b) any
voluntary or involuntary appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for any Grantor or for a substantial part of the property or assets of any
Grantor, (c) any voluntary or involuntary winding-up or liquidation of any Grantor, or (d) a
general assignment for the benefit of creditors by any Grantor.

     “Issuing Bank” shall mean the “Issuing Lender” as defined in the First Priority Debt
Agreement.

     “Letter of Credit” shall mean a “Letter of Credit” as defined in the First Priority Debt
Agreement.

     “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest
of a vendor or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third Person with respect to such securities.

     “Liquidation Sale” shall mean a so-called bulk sale, liquidation sale or “going out of
business sale” conducted either by any Secured Party or a Grantor in respect to all or a
substantial portion of such Grantor’s Collateral following the occurrence and during the
continuance of a

4

 

Default or an Event of Default under, and as defined in, either the First Priority Debt
Documents or Second Priority Financing Documents.

     “New First Priority Agent” shall have the meaning assigned to such term in Section
6.01.

     “New First Priority Claims” shall have the meaning assigned to such term in Section
6.01.

     “New First Priority Debt Documents” shall have the meaning assigned to such term in
Section 6.01.

     “Pledged or Controlled Collateral” shall have the meaning assigned to such term in Section
6.04.

     “Prime Vendor Agreement” shall have the meaning assigned to such term in the preliminary
statement of this Agreement.

     “Refinance” shall mean, in respect of any Indebtedness, to refinance, extend, renew,
restructure (including by the amendment and restatement of any instrument or agreement evidencing
such Indebtedness) or replace or to issue other Indebtedness in exchange or replacement for, such
Indebtedness, in whole or in part. “Refinanced” and “Refinancing” shall have correlative meanings.

     “Refinancing Notice” shall have the meaning assigned to such term in Section 6.01.

     “Release” shall have the meaning assigned to such term in Section 3.04.

     “Second Priority Financing Documents” shall mean the Prime Vendor Agreement and any other
agreement, instrument, certificate or other document pursuant to which any Grantor grants (or
purports to grant) a security interest in or a Lien on any property of any Grantor now or at any
time hereafter.

     “Second Priority Claims” shall mean all Indebtedness of the Grantors under the Second Priority
Financing Documents.

     “Second Priority Collateral” shall mean, collectively, all “Collateral”, as defined in the
Prime Vendor Agreement, including all property of any Grantor now or at any time hereafter subject
to Liens securing any Second Priority Claims; provided, that as of the date hereof, the “Second
Priority Collateral” shall, exclusively, be comprised of all assets of Grantors described in
Recital A of this Agreement, wherever located, now owned or hereafter acquired or arising.

     “Second Priority Creditors” shall mean [Supplier], [___] and its successors and assigns.

     “Second Priority Liens” shall mean all Liens on the Second Priority Collateral securing the
Second Priority Claims created under the Second Priority Financing Documents or acquired by
assignment, and shall not include any judgment Liens acquired through the exercise by Supplier of
any rights or remedies as an unsecured creditor (except to the extent, and only to the extent, that
such judgment Liens relate to, or are applicable to, the Second Priority Collateral).

5

 

     “Second Priority Permitted Actions” shall have the meaning assigned to such term in
Section 3.01(a).

     “Second Priority Secured Parties” shall mean, at any time, (a) the Second Priority Creditors,
(b) each other Subsidiary or Affiliate of any Second Priority Creditor to whom any of the Second
Priority Claims (including indemnification obligations) is owed and (c) the successor and assigns
of each of the foregoing.

     “Secured Parties” shall mean, as the context may require, the First Priority Secured Parties
and/or the Second Priority Secured Parties.

     “Standstill Period” shall have the meaning assigned to such term in Section 3.02(a).

     “Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code (or any similar or
equivalent legislation) as in effect from time to time in any applicable jurisdiction.

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, restated, supplemented or otherwise modified, (b) any reference herein
(i) to any Person shall be construed to include such Person’s successors and assigns and (ii) to
the Company or any other Grantor shall be construed to include the Company or such Grantor as
debtor and debtor-in-possession and any receiver or trustee for the Company or any other Grantor,
as the case may be, in any Insolvency or Liquidation Proceeding or Liquidation Sale, (c) the word
“remedies” shall be construed to refer to all remedies (whether at law, equity or otherwise,
including under contract (including netting, set-off or similar remedies)), statute or regulation
or otherwise, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall
be construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(e) all references herein to Articles or Sections shall be construed to refer to Articles or
Sections of this Agreement and (f) the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

ARTICLE II

Lien Priorities

          SECTION 2.01. Relative Priorities. Notwithstanding the date, manner or order of grant, attachment
or perfection of any Second Priority Lien and any First Priority Lien, and notwithstanding any
provision of the UCC or any other applicable law or the provisions of any First Priority Debt
Agreement, First Priority Security Agreement or Second Priority Financing Agreement or any other
circumstance whatsoever, the parties hereby agree that so long as the Discharge of First Priority
Claims has not occurred, (i) any First Priority Lien (to the extent perfected) on any Collateral
now or hereafter held by or for the benefit of any First Priority Secured Party shall be senior in
right, priority, operation, effect and all other respects to any and all Second Priority Liens on
any Collateral, and (ii) any Second Priority Lien on any Collateral now or hereafter held by or for
the benefit of any Second Priority Secured Party shall be junior

6

 

and subordinate in right, priority, operation, effect and all other respects to any and all First
Priority Liens (to the extent perfected) on any Collateral, and the First Priority Liens (to the
extent perfected) on any Collateral shall be and remain senior in right, priority, operation,
effect and all other respects to any Second Priority Liens on any Collateral for all purposes,
whether or not any First Priority Liens on any Collateral are subordinated in any respect to any
other Lien held by any Person (other than the Second Priority Secured Parties) securing any other
obligation of the Company, any other Grantor or any other Person; provided, however, for the
avoidance of doubt, nothing herein contained shall be deemed a subordination in right of payment of
the Second Priority Claims to the First Priority Claims.

          SECTION 2.02. Prohibition on Contesting Liens. Supplier, for itself and on behalf of the other
Second Priority Secured Parties, hereby agrees that it will not, and hereby waives any right to,
contest or support any other Person in contesting, in any proceeding (including any Insolvency or
Liquidation Proceeding), the priority, validity or enforceability of any First Priority Lien.
First Priority Agent, for itself and on behalf of the other First Priority Secured Parties, hereby
agrees that it will not, and hereby waives any right to, contest, or support any other Person in
contesting, in any proceeding (including any Insolvency or Liquidation Proceeding) the priority
(subject to the terms hereof governing relative priorities) validity or enforceability of any
Second Priority Lien.

          SECTION 2.03. Common Collateral. The parties hereto acknowledge and agree that it is their
intention that the Second Priority Collateral be included within the First Priority Collateral and
that, without limiting the foregoing, no portion of the Second Priority Collateral shall not be a
part of the First Priority Collateral. In furtherance of the foregoing, the parties hereto agree
to cooperate in good faith in order to determine, upon any reasonable request by the First Priority
Agent or Supplier, the specific assets included in the First Priority Collateral and the Second
Priority Collateral, the steps taken to perfect the First Priority Liens and the Second Priority
Liens thereon and the identity of the respective parties obligated under the First Priority Debt
Documents and the Second Priority Financing Documents in respect of the First Priority Claims and
the Second Priority Claims, respectively and, to the extent that any portion of the Second Priority
Collateral is not included within the First Priority Collateral at any time, without limiting any
other right or remedy available to the First Priority Agent or the other First Priority Secured
Parties, Supplier, for itself and on behalf of the other Second Priority Secured Parties, agrees
that any amounts received by or distributed to any Second Priority Secured Party pursuant to or as
a result of any Lien in such Second Priority Collateral shall be subject to Section 4.02.
In addition, in furtherance of the foregoing, without the prior written consent of the First
Security Priority Agent, no Second Priority Financing Document may be amended, supplemented or
otherwise modified, or entered into, to the extent such amendment, supplement or modification, or
the terms of such new Second Priority Financing Document, would (i) contravene the provisions of
this Agreement or (ii) increase, expand or otherwise add to the Second Priority Collateral.

ARTICLE III

Enforcement of Rights; Matters Relating to Collateral

          SECTION 3.01. Exercise of Rights and Remedies. (a) So long as the Discharge of First Priority
Claims has not occurred, whether or not any Insolvency or Liquidation Proceeding or Liquidation
Sale has been commenced, the First Priority Agent and the other First Priority Secured Parties
shall have the exclusive right to enforce rights and exercise remedies

7

 

with respect to the Collateral (including making determinations regarding the release, Disposition
or restrictions with respect to the Collateral), or to commence or seek to commence any action or
proceeding with respect to such rights or remedies (including any foreclosure action or proceeding
or any Insolvency or Liquidation Proceeding or Liquidation Sale), in each case, without any
consultation with or the consent of any Second Priority Secured Party except as required pursuant
to applicable law; provided that, notwithstanding the foregoing, (i) in any Insolvency or
Liquidation Proceeding, the Second Priority Secured Parties may file a proof of claim or statement
of interest with respect to the Second Priority Claims; (ii) the Second Priority Secured Parties
may take any action to preserve or protect the validity and enforceability of the Second Priority
Liens, provided that no such action is, or could reasonably be expected to be, (A) materially
adverse to the First Priority Liens or the rights of the First Priority Secured Parties as secured
creditors or any other First Priority Secured Party to exercise remedies as secured creditors in
respect thereof or (B) otherwise inconsistent with the terms of this Agreement, including the
automatic release of Second Priority Liens provided in Section 3.04; (iii) the Second
Priority Secured Parties may file any responsive or defensive pleadings in opposition to any
motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise
seeking the disallowance of the claims of the Second Priority Secured Parties, including any claims
secured by the Collateral or otherwise make any agreements or file any motions pertaining to the
Second Priority Claims, in each case, to the extent not inconsistent with the terms of this
Agreement; (iv) the Second Priority Secured Parties may exercise rights and remedies as unsecured
creditors, as provided in Section 3.03(a); and (v) subject to Section 3.02(a), the
Second Priority Agent and the other Second Priority Secured Parties may enforce any of their rights
and exercise any of their remedies with respect to the Collateral after the termination of the
Standstill Period (the actions described in this proviso being referred to herein as the “Second
Priority Permitted Actions”). Except for the Second Priority Permitted Actions, unless and until
the Discharge of First Priority Claims has occurred, the sole right of the Second Priority Secured
Parties with respect to the Collateral shall be to receive the proceeds of the Collateral, if any,
remaining after the Discharge of First Priority Claims has occurred and in accordance with the
Second Priority Financing Documents and applicable law.

          (b) In exercising rights and remedies with respect to the Collateral, subject to applicable
law (including all provisions of the UCC applicable thereto), the First Priority Agent and the
other First Priority Secured Parties may enforce the provisions of the First Priority Debt
Documents and exercise remedies thereunder, all in such order, without notice (except as required
by applicable law (including all provisions of the UCC applicable thereto)) to any Second Priority
Secured Creditor and in such manner as they may determine in their sole discretion (provided that,
without limiting the foregoing, the First Priority Agent shall use its commercially reasonable
efforts to provide Supplier with subsequent notice thereof). Such exercise and enforcement shall
include the rights of an agent appointed by them to Dispose of Collateral upon foreclosure, to
incur expenses in connection with any such Disposition and to exercise all the rights and remedies
of a secured creditor under and in accordance with the Uniform Commercial Code, the Bankruptcy Code
or any other Bankruptcy Law.

          (c) In exercising rights and remedies with respect to the Collateral, the Second Priority
Secured Parties may enforce the provisions of the Second Priority Financing Documents and exercise
remedies thereunder, all in such order and in such manner as they may determine in their sole
discretion, in each case, to the extent that such enforcement or exercise is not otherwise
prohibited by clauses (a) and (b) of this Section 3.01. Such exercise and enforcement
shall, in each case, to the extent that such enforcement or exercise is not otherwise prohibited by
clauses (a) and (b) of this Section 3.01, include the rights of an agent appointed by

8

 

them to Dispose of Collateral upon foreclosure, to incur expenses in connection with any such
Disposition and to exercise all the rights and remedies of a secured creditor under the Uniform
Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. Supplier agrees to provide at
least 5 Business Days’ prior written notice to the First Priority Agent of its intention to
foreclose upon or Dispose of any Collateral; provided, however, that the failure to give any such
notice shall not in any way limit its ability to foreclose upon or Dispose of any Collateral to the
extent that such foreclosure is not otherwise prohibited by clauses (a) through (c) of this
Section 3.01.

          SECTION 3.02. No Interference. Supplier, for itself and on behalf of the other Second Priority
Secured Parties, agrees that, whether or not any Insolvency or Liquidation Proceeding or
Liquidation Sale has been commenced, the Second Priority Secured Parties:

          (a) except for Second Priority Permitted Actions, will not, so long as the Discharge of First
Priority Claims has not occurred, (A) enforce or exercise, or seek to enforce or exercise, any
rights or remedies with respect to any Collateral (including the enforcement of any right under any
account control agreement, landlord waiver or bailee’s letter or any similar agreement or
arrangement to which any Second Priority Secured Party is a party) or (B) commence or join with any
Person (other than the First Priority Agent) in commencing, or petition for or vote in favor of any
resolution for, any action or proceeding with respect to such rights or remedies (including any
foreclosure action); provided, however, that none of the Second Priority Secured Parties may
enforce or exercise any or all such rights and remedies, or commence, join with any Person in
commencing, or petition for or vote in favor of any resolution for, any such action or proceeding,
after a period of 90 days has elapsed (which period shall be tolled during any period in which the
First Priority Agent shall not be entitled to enforce or exercise any rights or remedies with
respect to any Collateral as a result of (x) any injunction issued by a court of competent
jurisdiction or (y) the automatic stay or any other stay in any Insolvency or Liquidation
Proceeding) since the date on which Supplier has delivered to the First Priority Agent written
notice of an uncured default under the Prime Vendor Agreement (the “Standstill Period”); provided
further, however, that (1) notwithstanding the expiration of the Standstill Period or anything
herein to the contrary, in no event shall Supplier or any other Second Priority Secured Party
enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with
any Person at any time in commencing, or petition for or vote in favor of any resolution for, any
such action or proceeding, if the First Priority Agent or any other First Priority Secured Party
shall have commenced, and shall be diligently pursuing (or shall have sought or requested relief
from or modification of the automatic stay or any other stay in any Insolvency or Liquidation
Proceeding to enable the commencement and pursuit thereof), the enforcement or exercise of any
rights or remedies with respect to any Collateral or any such action or proceeding (prompt written
notice thereof to be given to the Second Priority Agent by the First Priority Agent) and (2) after
the expiration of the Standstill Period, so long as neither the First Priority Agent nor the First
Priority Secured Parties have commenced any action to enforce their Lien on any material portion of
the Collateral, in the event that and for so long as the Second Priority Secured Parties (or
Supplier on their behalf) have commenced any actions to enforce their Lien with respect to any
Collateral to the extent permitted hereunder and are diligently pursuing such actions, neither the
First Priority Secured Parties nor the First Priority Agent shall take any action of a similar
nature with respect to such Collateral; provided, that all other provisions of this Agreement
(including the turnover provisions of Article IV) are complied with;

          (b) will not contest, protest or object to any foreclosure action or proceeding brought by the
First Priority Agent or any other First Priority Secured Party, or any other

9

 

enforcement or exercise by any First Priority Secured Party of any rights or remedies relating
to the Collateral under the First Priority Debt Documents or an Insolvency or Liquidation
Proceeding or in connection with a Liquidation Sale or otherwise, so long as Second Priority Liens
attach to the proceeds thereof subject to the relative priorities set forth in Section
2.01(a), and will not contest, protest or object to the forbearance by the First Priority Agent
or any other First Priority Secured Party from commencing or pursuing any foreclosure action or
proceeding or any other enforcement or exercise of any rights or remedies with respect to the
Collateral.

In furtherance of the foregoing, Supplier, for itself and on behalf of the other Second Priority
Secured Parties, agrees that, whether or not any Insolvency or Liquidation Proceeding or
Liquidation Sale has been commenced, the Second Priority Secured Parties will not, except for
Second Priority Permitted Actions, (w) take or receive any Collateral, or any proceeds thereof or
payment with respect thereto, in connection with the exercise of any right or enforcement of any
remedy with respect to any Collateral or in connection with any insurance policy award under a
policy of insurance relating to any Collateral or any condemnation award (or deed in lieu of
condemnation) relating to any Collateral, (x) take any action that would, or could reasonably be
expected to, hinder, in any manner, any exercise of remedies under the First Priority Debt
Documents, including any Disposition of any Collateral, whether by foreclosure or otherwise and (y)
object to the manner in which the First Priority Agent or any other First Priority Secured Party
may seek to enforce or collect the First Priority Claims or the First Priority Liens, regardless of
whether any action or failure to act by or on behalf of the First Priority Agent or any other First
Priority Secured Party is, or could be, adverse to the interests of the Second Priority Secured
Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right
to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal,
valuation or other similar right that may be available under applicable law with respect to the
Collateral or any similar rights a junior secured creditor may have under applicable law, and (z)
will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge
or question the validity or enforceability of any First Priority Claim or any First Priority
Security Document, including this Agreement, or the validity or enforceability of the priorities,
rights or obligations established by this Agreement.

          SECTION 3.03. Rights as Unsecured Creditors. The Second Priority Secured Parties may, in
accordance with the terms of the Second Priority Financing Documents and applicable law, enforce
rights and exercise remedies against any Grantor as unsecured creditors; provided, that no such
action is otherwise inconsistent with the terms of this Agreement. Without limiting the generality
of the foregoing sentence, the Second Priority Secured Parties shall be entitled to prosecute
litigation against any Grantor or any other Person liable in respect of the Second Priority Claims
but shall be prohibited from taking any action to enforce any judgment relating to, or applicable
to, any of the Second Priority Collateral until the Discharge of the First Priority Claims.
Nothing in this Agreement shall prohibit the receipt by any Second Priority Secured Party of the
required payments of any amounts due under the Second Priority Financing Documents so long as such
receipt is not the direct or indirect result of the enforcement of Second Priority Liens or
exercise in contravention of this Agreement by any Second Priority Secured Party of rights or
remedies as a secured creditor against Collateral or enforcement in contravention of this Agreement
of any Second Priority Lien against Collateral (including any judgment lien resulting from the
exercise of remedies available to an unsecured creditor to the extent relating to, or applicable
to, any of the Second Priority Collateral).

          SECTION 3.04. Automatic Release of Second Priority Liens. If, in connection with (i) any
Disposition of any Collateral permitted under the terms of the First

10

 

Priority Debt Documents or (ii) the enforcement or exercise of any rights or remedies with respect
to the Collateral, including any Disposition of Collateral, the First Priority Agent, for itself
and on behalf of the other First Priority Secured Parties, (x) releases any of the First Priority
Liens, or (y) releases any Guarantor from its obligations under its guarantee of the First Priority
Claims (in each case, a “Release”), other than any such Release granted following (and not as a
condition to) the Discharge of First Priority Claims, then the Second Priority Liens on such
Collateral (to the extent, and only to the extent, subject to the Release pursuant to preceding
clause (x)), and the obligations of such Guarantor under its guarantee of the Second Priority
Claims (to the extent, and only to the extent, to the Release of the applicable Guarantor pursuant
to preceding clause (y)), shall be automatically, unconditionally and simultaneously released
(subject to the receipt by the First Priority Agent of any applicable cash proceeds of any such
Disposition or sums realized in enforcement or exercise of any rights or remedies with respect to
the Second Priority Collateral and the application thereof in accordance with the terms of this
Agreement), and Supplier shall, for itself and on behalf of the other Second Priority Secured
Parties, promptly execute and deliver to the First Priority Agent, the relevant Grantor or such
Guarantor such termination statements, releases and other documents as the First Priority Agent or
the relevant Grantor or Guarantor may reasonably request and provide to effectively confirm such
Release. For the avoidance of doubt, all proceeds of any Disposition of Collateral or other
enforcement or exercise of any rights or remedies with respect to the Collateral received by any
Secured Party shall be subject to the application of proceeds requirements of Section 4.01
and, until application in accordance therewith, each Secured Party agrees, subject to applicable
law, to hold the same in express trust for such Secured Party (or Secured Parties) as are entitled
thereto in accordance with the terms hereof. Until the Discharge of First Priority Claims occurs,
any Supplier, for itself and on behalf of any other Second Priority Secured Party, hereby appoints
the First Priority Agent, and any officer or agent of the First Priority Agent, with full power of
substitution, as the attorney-in-fact of each Second Priority Secured Party for the purpose of
carrying out the provisions of this Section 3.04 and taking any action and executing any
instrument that the First Priority Agent may deem necessary or advisable to accomplish the purposes
of this Section 3.04 (including any endorsements or other instruments of transfer or
release), which appointment is irrevocable and coupled with an interest.

          SECTION 3.05. Insurance and Condemnation Awards. So long as the Discharge of First Priority Claims
has not occurred, the First Priority Agent and the other First Priority Secured Parties shall have
the exclusive right, subject to the rights of the Grantors under the First Priority Debt Documents,
to settle and adjust claims in respect of Collateral under policies of insurance covering
Collateral and to approve any award granted in any condemnation or similar proceeding, or any deed
in lieu of condemnation, in respect of the Collateral, provided that all the other provisions of
this Agreement are complied with in regard thereto. All proceeds of any such policy and any such
award, or any payments with respect to a deed in lieu of condemnation, shall (a) first, prior to
the Discharge of First Priority Claims and subject to the rights of the Grantors under the First
Priority Debt Documents, be paid to the First Priority Agent for the benefit of First Priority
Secured Parties pursuant to the terms of the First Priority Debt Documents, (b) second, after the
Discharge of First Priority Claims and subject to the rights of the Grantors under the Second
Priority Financing Documents, be paid to the Second Priority Secured Parties pursuant to the terms
of the Second Priority Financing Documents, and (c) third, be paid to the owner of the subject
property or as a court of competent jurisdiction may otherwise direct. Until the Discharge of
First Priority Claims has occurred, if any Second Priority Secured Party shall, at any time,
receive any proceeds of any such insurance policy or any such award or payment, it shall transfer
and pay over such proceeds to the First Priority Agent in accordance with Section 4.02.

11

 

          SECTION 3.06. Notification of Release of Collateral. Each of the First Priority Agent and Supplier
shall give the other prompt written notice of the Disposition by it of, and Release by it of the
Lien on, any Collateral. Such notice shall describe in reasonable detail the subject Collateral,
the parties involved in such Disposition or Release, the place, time manner and method thereof, and
the consideration, if any, received therefor; provided, however, that the failure to give any such
notice shall not in and of itself in any way impair the effectiveness of any such Disposition or
Release.

ARTICLE IV

Payments

          SECTION 4.01. Application of Proceeds. Any Collateral or proceeds thereof received by any Secured
Party in connection with any Disposition of, or collection on, such Collateral upon the enforcement
or exercise of any right or remedy shall be applied as follows:

     first, to the payment in full of the First Priority Claims and the costs and
reasonable out-of-pocket expenses of the First Priority Agent in connection with such
enforcement or exercise, and

     second, after all such costs and expenses have been paid in full and the Discharge of
First Priority Claims has occurred, to the payment of the Second Priority Claims.

After all such costs and expenses have been paid in full, the Discharge of First Priority Claims
has occurred and the Discharge of Second Priority Claims has occurred, any surplus Collateral or
proceeds then remaining shall be returned to the applicable Grantor or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdiction may direct.

          SECTION 4.02. Payment Over. So long as the Discharge of First Priority Claims has not occurred,
any Collateral or any proceeds thereof (together with assets or proceeds subject to Liens referred
to in the final sentence of Section 2.03) received by any Second Priority Secured Party in
connection with any Disposition of, or collection on, such Collateral upon the enforcement or the
exercise of any right or remedy with respect to the Collateral, or in connection with any insurance
policy claim or any condemnation award (or deed in lieu of condemnation), shall be segregated and
held in trust and forthwith transferred or paid over to the First Priority Agent for the benefit of
the First Priority Secured Parties in the same form as received, together with any necessary
endorsements, or as a court of competent jurisdiction may otherwise direct. Until the Discharge of
First Priority Claims occurs, Supplier, for itself and on behalf of each other Second Priority
Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First
Priority Agent, with full power of substitution, the attorney-in-fact of each Second Priority
Secured Party for the purpose of carrying out the provisions of this Section 4.02 and
taking any action and executing any instrument that the First Priority Agent may deem necessary or
advisable to accomplish the purposes of this Section 4.02, which appointment is irrevocable
and coupled with an interest. Nothing herein contained shall be deemed to prohibit any Second
Priority Secured Party from receiving and retaining the purchase price paid to such Second Priority
Secured Party in the ordinary course of business for goods sold to any Grantor in the ordinary
course of business.

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ARTICLE V

Insolvency or Liquidation Proceedings

          SECTION 5.01. Bankruptcy Finance and Section 363 Matters. (a) In furtherance of this Agreement,
until the Discharge of First Priority Claims has occurred, the Supplier, on behalf of itself and
each of the Second Priority Secured Parties, agrees that, in the event of any Insolvency or
Liquidation Proceeding, the Second Priority Secured Parties: (i) will not oppose or object to the
use of any Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any
comparable provision of any other Bankruptcy Law, unless the First Priority Secured Parties, or a
representative authorized by the First Priority Secured Parties, shall oppose or object to such use
of cash collateral; (ii) (A) will not oppose or object to any post-petition financing provided to
any Grantor, whether provided by the First Priority Secured Parties or any other Person, under
Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law (a “DIP
Financing”), or the Liens securing any DIP Financing (“DIP Financing Liens”), unless the First
Priority Secured Parties, or a representative authorized by the First Priority Secured Parties,
shall then oppose or object to such DIP Financing or such DIP Financing Liens, (B) to the extent
that (x) such DIP Financing Liens are senior to, or rank pari passu with, the First Priority Liens
on the Collateral, and/or (y) the First Priority Claims are included as obligations under such DIP
Financing or are repaid with proceeds of the DIP Financing, the Second Priority Secured Parties
will subordinate the Second Priority Liens on the Collateral to the First Priority Liens on the
Collateral, if applicable, and the DIP Financing Liens (including if the First Priority Claims are
(x) included as obligations under such DIP Financing and/or (y) are repaid with proceeds of the DIP
Financing) on the terms of this Agreement; and (C) will not propose or support any DIP Financing to
any Grantor; (iii) will not propose, vote in favor of, or otherwise support any plan of
reorganization that is inconsistent with the priorities or other provisions of this Agreement; (iv)
except to the extent permitted by paragraph (b) of this Section 5.01, in connection with
the use of cash collateral as described in clause (i) above or a DIP Financing, will not request
adequate protection with respect to any Collateral or any other relief in connection with such use
of cash collateral, DIP Financing or DIP Financing Liens; and (v) will not oppose or object to any
Disposition of any Collateral free and clear of the Second Priority Liens or other claims under
Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, if the
First Priority Secured Parties, or a representative authorized by the First Priority Secured
Parties, shall consent to such Disposition.

          (b) The Second Priority Secured Parties agree that they shall not, and shall not support any
other Person in contesting, (i) any request by the First Priority Agent or any other First Priority
Secured Party for adequate protection in respect of any First Priority Claims or (ii) any
objection, based on a claim of a lack of adequate protection with respect of any First Priority
Claims, by the First Priority Agent or any other First Priority Secured Party to any motion,
relief, action or proceeding.

          SECTION 5.02. Additional Bankruptcy Matters. The Second Priority Secured Parties agree that, so
long as the Discharge of First Priority Claims has not occurred, no Second Priority Secured Party
shall, without the prior written consent of the First Priority Agent, seek or request relief from
or modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding
in respect of any part of the Collateral, any proceeds thereof or any Second Priority Lien on the
Collateral. If, in any Insolvency or Liquidation Proceeding, debt obligations of the reorganized
debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a
plan of reorganization or similar dispositive

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restructuring plan, on account of the First Priority Claims and the Second Priority Claims, then,
to the extent the debt obligations distributed on account of the First Priority Claims and on
account of the Second Priority Claims are secured by Liens upon the same assets or property, the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt obligations. In addition,
Supplier, for itself and on behalf of the other Second Priority Secured Parties, (x) agrees that no
Second Priority Secured Party shall oppose or seek to challenge any claim by the First Priority
Agent or any other First Priority Secured Party for allowance in any Insolvency or Liquidation
Proceeding of First Priority Claims consisting of post-petition interest, fees or expenses to the
extent of the value of the First Priority Liens (it being understood and agreed that such value
shall be determined without regard to the existence of the Second Priority Liens on the
Collateral), (y) waives any claim any Second Priority Secured Party may hereafter have against any
First Priority Secured Party arising out of (a) the election by any First Priority Secured Party of
the application of Section 1111(b)(2) of the Bankruptcy Code, or any comparable provision of any
other Bankruptcy Law, or (b) any use of cash collateral or financing arrangement, or any grant of a
security interest in the Collateral, in any Insolvency or Liquidation Proceeding and (z) agrees
that, without the written consent of First Priority Agent, it will not seek to vote with the First
Priority Agent (or any other First Priority Secured Party) as a single class in connection with any
plan of reorganization in any Insolvency or Liquidation Proceeding. In addition, other than with
respect to the Second Priority Permitted Actions, nothing contained herein shall prohibit or in any
way limit the First Priority Agent or any other First Priority Secured Party from opposing,
challenging or objecting to, in any Insolvency or Liquidation Proceeding or otherwise, any action
taken, or any claim made, by any Second Priority Secured Party with respect to the Collateral,
including any request by any Second Priority Secured Party for adequate protection or any exercise
by any Second Priority Secured Party of any of its rights and remedies under the Second Priority
Financing Documents with respect to the Collateral or otherwise with respect to the Collateral.

ARTICLE VI

Other Agreements

          SECTION 6.01. Effect of Refinancing of Indebtedness under First Priority Debt Documents. If,
substantially contemporaneously with the Discharge of First Priority Claims, the Grantors Refinance
Indebtedness outstanding under the First Priority Debt Documents and provided that the Company or
the First Priority Agent gives to Supplier or any of the other Second Priority Secured Parties
written notice (the “Refinancing Notice”) electing the application of the provisions of this
Section 6.01 to such Refinancing Indebtedness, then (i) such Discharge of First Priority
Claims shall automatically be deemed not to have occurred for all purposes of this Agreement, (ii)
such Refinancing Indebtedness and all other obligations under the documents evidencing such
Indebtedness (provided that the aggregate principal committed amount thereof shall not exceed
$150,000,000) (the “New First Priority Claims”) shall automatically be treated as First Priority
Claims for all purposes of this Agreement, including for purposes of the Lien priorities and rights
in respect of Collateral set forth herein, (iii) the Debt Agreement and the other documents
evidencing such Refinancing Indebtedness (the “New First Priority Debt Documents”) shall
automatically be treated as the First Priority Debt Agreement and the First Priority Debt Documents
and, in the case of New First Priority Debt Documents that are security documents pursuant to which
any Grantor has granted a Lien to secure any New First Priority Claim, as the First Priority
Security Documents for all purposes of this Agreement, (iv) the collateral agent under the New
First Priority Debt Documents (the “New First Priority Agent”) shall be deemed to be the First
Priority Agent for all purposes of this Agreement and (v)

14

 

the lenders and other creditors under the New First Priority Debt Documents shall be deemed to be
the First Priority Creditors for all purposes of this Agreement. Upon receipt of a Refinancing
Notice, which notice shall include the identity of the New First Priority Agent, the Second
Priority Secured Parties shall promptly enter into such documents and agreements (including
amendments or supplements to this Agreement) as the Company or such New First Priority Agent may
reasonably request in order to provide to the New First Priority Agent the rights and powers
contemplated hereby, in each case consistent in all material respects with the terms of this
Agreement. The Company shall cause the agreement, document or instrument pursuant to which the New
First Priority Agent is appointed to provide that the New First Priority Agent agrees to be bound
by the terms of this Agreement.

          SECTION 6.02. Reinstatement. If, in any Insolvency or Liquidation Proceeding or otherwise, all or
part of any payment with respect to the First Priority Claims previously made shall be rescinded
for any reason whatsoever, then the First Priority Claims shall be reinstated to the extent of the
amount so rescinded and, if theretofore terminated, this Agreement shall be reinstated in full
force and effect and such prior termination shall not diminish, release, discharge, impair or
otherwise affect the Lien priorities and the relative rights and obligations of the First Priority
Secured Parties and the Second Priority Secured Parties provided for herein.

          SECTION 6.03. Authorization of First Priority Collateral Agent and Supplier. By accepting the
benefits of this Agreement and the other First Priority Security Documents, each First Priority
Secured Party hereby authorizes the First Priority Agent to enter into this Agreement and to act on
its behalf as collateral agent hereunder and in connection herewith. By accepting the benefits of
this Agreement and the other Second Priority Financing Documents, each Second Priority Secured
Party authorizes Supplier to enter into this agreement and to act on its behalf as agent hereunder
and in connection therewith.

          SECTION 6.04. Bailment for Perfection of Certain Security Interests. The First Priority Agent
agrees that if it shall at any time hold a First Priority Lien on any Collateral that can be
perfected or the priority of which can be enhanced by the possession or control of such Collateral
or of any account in which such Collateral is held, and if such Collateral or any such account is
in fact in the possession or under the control of the First Priority Agent, or of agents or bailees
of the First Priority Agent (such Collateral being referred to herein as the “Pledged or Controlled
Collateral”), the First Priority Agent shall, solely for the purpose of perfecting the Second
Priority Liens granted under the Second Priority Financing Documents and subject to the terms and
conditions of this Section 6.04, also (i) hold and/or maintain control of such Pledged or
Controlled Collateral as gratuitous bailee for and representative (as defined in Section 1-201(35)
of the Uniform Commercial Code as in effect in the State of New York) of, or as agent for, the
Second Priority Secured Parties, (ii) with respect to any securities accounts included in the
Collateral, have “control” (within the meaning of Section 8-106(d)(3) of the UCC) of such
securities accounts on behalf of the Second Priority Secured Parties and (iii) with respect to any
deposit accounts included in the Collateral, act as agent for the Second Priority Secured Parties
and any assignee. So long as the Discharge of First Priority Claims has not occurred, the First
Priority Agent shall be entitled to deal with the Pledged or Controlled Collateral in accordance
with the terms of this Agreement and the other First Priority Debt Documents as if the Second
Priority Liens did not exist. The obligations and responsibilities of the First Priority Agent to
the Second Priority Secured Parties under this Section 6.04 shall be limited solely to
holding or controlling the Pledged or Controlled Collateral as gratuitous bailee and representative
(as defined in Section 1-201(35) of the Uniform Commercial Code as in effect in the State of New
York) in accordance with this Section 6.04. Without limiting the foregoing, the First

15

 

Priority Agent shall have no obligation or responsibility to ensure that any Pledged or Controlled
Collateral is genuine or owned by any of the Grantors. The First Priority Agent acting pursuant to
this Section 6.04 shall not, by reason of this Agreement, any other Security Document or
any other document, have a fiduciary relationship in respect of any other First Priority Secured
Party or any Second Priority Secured Party. Upon the Discharge of First Priority Claims, the First
Priority Agent shall transfer the possession and control of the Pledged or Controlled Collateral,
together with any necessary endorsements but without recourse or warranty, (i) if the Second
Priority Claims are outstanding at such time, to the Second Priority Secured Parties, if no Second
Priority Claims are outstanding at such time, to the applicable Grantor, in each case so as to
allow such Person to obtain possession and control of such Pledged or Controlled Collateral. In
connection with any transfer under clause (i) of the immediately preceding sentence, the First
Priority Agent agrees, at the expense of the Grantors, to take all actions in its power as shall be
reasonably requested by the Second Priority Secured Parties to obtain a first priority security
interest in the Pledged or Controlled Collateral.

          SECTION 6.05. Further Assurances. Each of the First Priority Agent, for itself and on behalf of
the other First Priority Secured Parties and the Second Priority Secured Parties, and each Grantor
party hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will
cause to be executed, any and all further documents, agreements and instruments, and take all such
further actions, as may be required under any applicable law, or which the First Priority Agent or
the Second Priority Secured Parties may reasonably request, to effectuate the terms of this
Agreement, including the relative Lien priorities provided for herein.

ARTICLE VII

Representations and Warranties

          SECTION 7.01. Representations and Warranties of Each Party. Each party hereto represents and
warrants to the other parties hereto as follows:

          (a) such party is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization and has all requisite power and authority to execute and
deliver this Agreement and perform its obligations hereunder.

          (b) this Agreement has been duly executed and delivered by such party and constitutes a
legal, valid and binding obligation of such party, enforceable in accordance with its terms.

          (c) the execution, delivery and performance by such party of this Agreement (i) do not
require any consent or approval of, registration or filing with or any other action by any
governmental authority (except as contemplated hereby) and (ii) will not violate any provision
of law, statute, rule or regulation, or of the certificate or articles of incorporation or
other constitutive documents or by-laws of such party or any order of any governmental
authority or any provision of any indenture, agreement or other instrument applicable to or
binding upon such party.

          SECTION 7.02. Representations and Warranties of Each of the First Priority Agent and Supplier.
Each of the First Priority Agent and Supplier represents and warrants to the other parties hereto
that it has been duly authorized in writing by the First Priority Secured Parties or Second
Priority Secured Parties, as the case may be, to enter into this Agreement.

16

 

ARTICLE VIII

No Reliance; No Liability; Obligations Absolute

          SECTION 8.01. No Reliance; Information. The First Priority Secured Parties and the Second Priority
Secured Parties shall have no duty to disclose to any Second Priority Secured Party or to any First
Priority Secured Party, respectively, any information relating to the Company or any of the
Grantors, or any other circumstance bearing upon the risk of nonpayment of any of the First
Priority Claims or the Second Priority Claims, as the case may be, that is known or becomes known
to any of them or any of their Affiliates. In the event any First Priority Secured Party or any
Second Priority Secured Party, in its sole discretion, undertakes at any time or from time to time
to provide any such information to, respectively, any Second Priority Secured Party or any First
Priority Secured Party, it shall be under no obligation (i) to make, and shall not make or be
deemed to have made, any express or implied representation or warranty, including with respect to
the accuracy, completeness, truthfulness or validity of the information so provided, (ii) to
provide any additional information or to provide any such information on any subsequent occasion or
(iii) to undertake any investigation.

          SECTION 8.02. No Warranties or Liability. (a) The First Priority Agent, for itself and on behalf
of the other First Priority Secured Parties, acknowledges and agrees that, except for the
representations and warranties set forth in Article VII, no Second Priority Secured Party
has made any express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectability or enforceability of any of the Second
Priority Financing Documents, the ownership of any Collateral or the perfection or priority of any
Liens thereon. Supplier, for itself and on behalf of the other Second Priority Secured Parties,
acknowledges and agrees that, except for the representations and warranties set forth in
Article VII, neither the First Priority Agent nor any other First Priority Secured Party
has made any express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectability or enforceability of any of the First
Priority Debt Documents, the ownership of any Collateral or the perfection or priority of any Liens
thereon.

          (b) The Second Priority Secured Parties shall have no express or implied duty to the First
Priority Agent or any other First Priority Secured Party, and the First Priority Agent and the
other First Priority Secured Parties shall have no express or implied duty to the Second Priority
Secured Parties to act or refrain from acting in a manner which allows, or results in, the
occurrence or continuance of a default or an event of default under any First Priority Debt
Document and any Second Priority Financing Document (other than, in each case, this Agreement),
regardless of any knowledge thereof which they may have or be charged with.

          (c) Supplier, for itself and on behalf of the other Second Priority Secured Parties, agrees
that no First Priority Secured Party shall have any liability to the Second Priority Secured
Parties and hereby waive any claim against any First Priority Secured Party, arising out of any and
all actions which the First Priority Agent or the other First Priority Secured Parties may take or
permit or omit to take with respect to (i) the First Priority Debt Documents (other than this
Agreement), (ii) the collection of the First Priority Claims or (iii) the maintenance of, the
preservation of, the foreclosure upon or the Disposition of any Collateral.

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ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. Notices and other communications provided for herein shall be in writing in
the English language (or accompanied by a certified translation) and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by fax, as follows:

          if to the First Priority Agent:

	 	 	Healthcare Finance Group, LLC

199 Water Street, 31st Floor

New York, New York 10038

Attention: General Counsel — Chief Credit Officer and National Portfolio Manager

Facsimile No.: (212) 785-8501

	 
	 	 	with a copy to:
	 
	 	 	Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: Terry D. Novetsky, Esq.

Facsimile No.: (212) 836-6490
	 
	 	 	if to Supplier or any of the Second Priority Secured Parties;
	 
	 	 	[________]

[________]

[________]

Attention: [________]

Facsimile No.: [________]

	 
	 	 	with a copy to:
	 
	 	 	[________]

[________]

[________]

Attention: [________]

Facsimile No.: [________]

All notices and other communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed)
to such party as provided in this Section 9.01 or in accordance with the latest unrevoked
direction from such party given in accordance with this Section 9.01. As agreed to between
the Company and any Collateral Agent from time to time, notices and other communications may also
be delivered by e-mail to the e-mail address of a representative of the applicable Person provided
from time to time by such Person. In addition, Supplier agrees to use diligent efforts to provide

18

 

any notices of default or acceleration or similar notices which they give to any Grantor under any
Second Priority Financing Documents.

          SECTION 9.02. Conflicts. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF
THIS AGREEMENT AND THE PROVISIONS OF THE OTHER DEBT DOCUMENTS, THE PROVISIONS OF THIS AGREEMENT
SHALL CONTROL.

          SECTION 9.03. Effectiveness; Survival; Termination. This Agreement shall become effective when
executed and delivered by the parties hereto. All covenants, agreements, representations and
warranties made by any party in this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement. The terms of
this Agreement shall survive, and shall continue in full force and effect, in any Insolvency or
Liquidation Proceeding. Supplier, for itself and on behalf of the other Second Priority Secured
Parties, hereby waive any and all rights the Second Priority Secured Parties may now or hereafter
have under applicable law to revoke this Agreement or any of the provisions of this Agreement.
This Agreement shall terminate and be of no further force and effect, (i) subject to compliance
with its obligations to take certain actions upon Discharge of the Second Priority Claims pursuant
to Article V and Section 3.01(c), with respect to the Second Priority Secured
Parties and the Second Priority Claims, upon the later of (1) the date upon which the obligations
under the Second Priority Financing Documents terminate if there are no other Second Priority
Claims outstanding on such date and (2) if there are other Second Priority Claims outstanding on
such date, the date upon which such Second Priority Claims terminate, subject to the rights of the
Second Priority Claims and Supplier under Section 6.01 and (ii) subject to Section
6.01 and compliance with its obligations to take certain actions upon Discharge of the First
Priority Claims pursuant to Article V, with respect to the First Priority Agent, the First Priority
Secured Parties and the First Priority Claims, the date of Discharge of First Priority Claims,
subject to the rights of the First Priority Secured Parties under Section 6.01. In
addition, for the avoidance of doubt, the Lien priorities provided for herein and the respective
rights, interests, agreements and obligations hereunder of the First Priority Agent and the other
First Priority Secured Parties and the Second Priority Secured Parties shall remain in full force
and effect irrespective of: (a) any change in the time, place or manner of payment of, or in any
other term of, all or any portion of the First Priority Claims, it being specifically acknowledged
that a portion of the First Priority Claims consists or may consist of Indebtedness that is
revolving in nature, and the amount thereof that may be outstanding at any time or from time to
time may be increased or reduced and subsequently reborrowed (provided that the aggregate
principal committed amount thereof shall not exceed $150,000,000); (b) any change in the time,
place or manner of payment of, or any other term of, all or any portion of the First Priority
Claims; (c) any amendment, waiver or other modification, whether by course of conduct or otherwise,
of any Debt Document (provided that the aggregate principal committed amount thereof shall not
exceed $150,000,000); (d) the securing of any First Priority Claims or Second Priority Claims with
any additional collateral or guarantees, or any exchange, release, voiding, avoidance or
non-perfection of any security interest in any Collateral or any other collateral or any release of
any guarantee securing any First Priority Claims or Second Priority Claims; (e) the commencement of
any Insolvency or Liquidation Proceeding or Liquidation Sale in respect of the Company or any other
Grantor; or (f) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, the Company or any other Grantor in respect of the First Priority Claims or this
Agreement, or any of the Second Priority Secured Parties in respect of this Agreement.

19

 

          SECTION 9.04. Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions.

          SECTION 9.05. Amendments; Waivers. (a) No failure or delay on the part of any party hereto in
exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of the parties hereto are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by any party therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section 9.05, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the First Priority Agent and
Supplier.

          SECTION 9.06. Postponement of Subrogation. The Second Priority Secured Parties agrees that no
payment or distribution to any First Priority Secured Party pursuant to the provisions of this
Agreement shall entitle any Second Priority Secured Party to exercise any rights of subrogation in
respect thereof until the Discharge of First Priority Claims shall have occurred. Following the
Discharge of First Priority Claims, each First Priority Secured Party agrees to execute such
documents, agreements, and instruments as any Second Priority Secured Party may reasonably request
to evidence the transfer by subrogation to any such Person of an interest in the First Priority
Claims resulting from payments or distributions to such First Priority Secured Party by such
Person, so long as all costs and expenses (including all reasonable legal fees and disbursements)
incurred in connection therewith by such First Priority Secured Party are paid by such Person upon
request for payment thereof.

          SECTION 9.07. Applicable Law; Jurisdiction; Consent to Service of Process. (a) THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

          (b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the non-exclusive jurisdiction of any Supreme Court for New York County, New York or
in The United States District Court for the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined only in such New York court or, to the extent permitted by law, in such Federal court.
Each party hereto agrees that a final judgment in any such action

20

 

or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

          (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New
York court or in any such Federal court. Each party hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of
any party to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.08. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 9.08.

          SECTION 9.09. Parties in Interest. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, as well as
the other First Priority Secured Parties and Second Priority Secured Parties, all of whom are
intended to be bound by, and to be third party beneficiaries of, this Agreement. No other Person
shall have or be entitled to assert rights or benefits hereunder.

          SECTION 9.10. Specific Performance. Each of the First Priority Agent and Supplier may demand
specific performance of this Agreement and, on behalf of itself and the respective other Secured
Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any
other defense that might be asserted to bar the remedy of specific performance in any action which
may be brought by the respective Secured Parties.

          SECTION 9.11. Headings. Article and Section headings used herein and the Table of Contents hereto
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9.03. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed counterpart of this
Agreement.

21

 

          SECTION 9.13. Provisions Solely to Define Relative Rights. The provisions of this Agreement are
and are intended solely for the purpose of defining the relative rights of the First Priority
Secured Parties, on the one hand, and the Second Priority Secured Parties, on the other hand. None
of the Company, any other Grantor, any Guarantor or any other creditor thereof shall have any
rights or obligations, except as expressly provided in this Agreement hereunder and none of the
Company, any other Grantor or any Guarantor may rely on the terms hereof. Nothing in this
Agreement is intended to or shall impair the obligations of the Company or any other Grantor or any
Guarantor, which are absolute and unconditional, to pay the First Priority Claims and the Second
Priority Claims as and when the same shall become due and payable in accordance with their terms.

[Remainder of this page intentionally left blank]

22

 

EXHIBIT M

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC, as First 

Priority Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[INSERT NAME OF SUPPLIER], for itself and on 
behalf
of the Second Priority Secured Parties

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

M-1

 

ACKNOWLEDGMENT

The Company and each of the Company’s undersigned Subsidiaries each hereby acknowledge that they
have received a copy of the foregoing Agreement and consent thereto, agree to recognize all rights
granted thereby to the First Priority Agent and the Second Priority Secured Parties and to Supplier
and the Second Priority Secured Parties, and will not do any act or perform any obligation which is
not in accordance with the agreements set forth therein. The Company and each of the Company’s
undersigned Subsidiaries each further acknowledge and agree that they are not an intended
beneficiary or third party beneficiary under the foregoing Agreement.

ACKNOWLEDGED AS OF THE DATE FIRST WRITTEN ABOVE:1

	 	 	 	 	 
	BIOSCRIP, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP INFUSION SERVICES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	CHRONIMED, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP PHARMACY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	1	 	Signatories to be updated as necessary.

 

 

	 	 	 	 	 
	BRADHURST SPECIALTY PHARMACY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP PHARMACY (NY), INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP PBM SERVICES, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	NATURAL LIVING INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP INFUSION SERVICES, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP NURSING SERVICES, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	BIOSCRIP INFUSION MANAGEMENT, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	BIOSCRIP PHARMACY SERVICES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	CRITICAL HOMECARE SOLUTIONS, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	APPLIED HEALTH CARE, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	CEDAR CREEK HOME HEALTH CARE AGENCY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	DEACONESS ENTERPRISES, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	DEACONESS HOMECARE, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	EAST GOSHEN PHARMACY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	ELK VALLEY HEALTH SERVICES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	ELK VALLEY HOME HEALTH CARE AGENCY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	ELK VALLEY PROFESSIONAL AFFILIATES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	GERICARE, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	INFUSION PARTNERS, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	INFUSION PARTNERS OF BRUNSWICK, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	INFUSION PARTNERS OF MELBOURNE, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	INFUSION SOLUTIONS, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	KNOXVILLE HOME THERAPIES, LLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	NATIONAL HEALTH INFUSION, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	NEW ENGLAND HOME THERAPIES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	OPTION HEALTH, LTD.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	PROFESSIONAL HOMECARE SERVICES, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	REGIONAL AMBULATORY DIAGNOSTICS, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	SCOTT-WILSON, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	SOUTH MISSISSIPPI HOME HEALTH, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION I

 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION II

 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION III

 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	SPECIALTY PHARMA, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	WILCOX MEDICAL, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

[UPDATE LIST OF SUBSIDIARY GUARANTORS]

 

 

EXHIBIT N

[Form of]

AMENDED AND RESTATED COLLATERAL MANAGEMENT AGREEMENT

N-1exv10w2

Exhibit 10.2

 

AMENDED AND RESTATED SECURITY AGREEMENT

By

BIOSCRIP, INC.,

as Borrower

and

THE GUARANTORS PARTY HERETO

and

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

Dated as of March 25, 2010

as

Amended and Restated

as of December 28, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page(s)	 
	Article I DEFINITIONS AND INTERPRETATION
	 	 	2	 
	SECTION 1.1 Definitions
	 	 	2	 
	SECTION 1.2 Interpretation
	 	 	10	 
	SECTION 1.3 Resolution of Drafting Ambiguities
	 	 	10	 
	SECTION 1.4 Perfection Certificate
	 	 	10	 
	 
	 	 	 	 
	Article II GRANT OF SECURITY AND SECURED OBLIGATIONS
	 	 	10	 
	SECTION 2.1 Grant of Security Interest
	 	 	10	 
	SECTION 2.2 Filings
	 	 	12	 
	 
	 	 	 	 
	Article III PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES; USE OF PLEDGED COLLATERAL
	 	 	13	 
	SECTION 3.1 Delivery of Certificated Securities Collateral
	 	 	13	 
	SECTION 3.2 Perfection of Uncertificated Securities Collateral
	 	 	13	 
	SECTION 3.3 Financing Statements and Other Filings; Maintenance of Perfected
Security Interest
	 	 	13	 
	SECTION 3.4 Other Actions
	 	 	14	 
	SECTION 3.5 Joinder of Additional Pledgors
	 	 	19	 
	SECTION 3.6 Supplements; Further Assurances
	 	 	19	 
	 
	 	 	 	 
	Article IV REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	20	 
	SECTION 4.1 Title
	 	 	20	 
	SECTION 4.2 Validity of Security Interest
	 	 	20	 
	SECTION 4.3 Defense of Claims; Transferability of Pledged Collateral
	 	 	21	 
	SECTION 4.4 Other Financing Statements
	 	 	21	 
	SECTION 4.5 Chief Executive Office; Change of Name; Jurisdiction of
Organization, etc.
	 	 	21	 
	SECTION 4.6 Location of Inventory and Equipment
	 	 	22	 
	SECTION 4.7 Corporate Names; Prior Transactions
	 	 	22	 
	SECTION 4.8 Due Authorization and Issuance
	 	 	22	 
	SECTION 4.9 Consents, etc.
	 	 	23	 
	SECTION 4.10 Pledged Collateral
	 	 	23	 
	SECTION 4.11 Insurance
	 	 	23	 
	SECTION 4.12 Payment of Taxes; Compliance with Legal Requirements; Contesting
Liens; Charges
	 	 	23	 
	SECTION 4.13 Access to Pledged Collateral, Books and Records; Other
Information
	 	 	24	 
	 
	 	 	 	 
	Article V CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL
	 	 	24	 
	SECTION 5.1 Pledge of Additional Securities Collateral
	 	 	24	 
	SECTION 5.2 Voting Rights; Distributions; etc.
	 	 	24	 

i

 

	 	 	 	 	 
	 	 	Page(s)	 
	SECTION 5.3 Default
	 	 	25	 
	SECTION 5.4 Certain Agreements of Pledgors as Issuers and Holders of Equity
Interests
	 	 	26	 
	 
	 	 	 	 
	Article VI CERTAIN PROVISIONS CONCERNING INTELLECTUAL PROPERTY COLLATERAL
	 	 	26	 
	SECTION 6.1 Representations and Warranties
	 	 	26	 
	SECTION 6.2 Grant of License
	 	 	26	 
	SECTION 6.3 Registration
	 	 	27	 
	SECTION 6.4 No Violations or Proceedings
	 	 	27	 
	SECTION 6.5 Protection of Collateral Agent’s Security
	 	 	27	 
	SECTION 6.6 After-Acquired Property
	 	 	28	 
	SECTION 6.7 Litigation
	 	 	28	 
	SECTION 6.8 Intent-to-Use Trademark and Service Mark Applications
	 	 	29	 
	 
	 	 	 	 
	Article VII CERTAIN PROVISIONS CONCERNING ACCOUNTS
	 	 	29	 
	SECTION 7.1 Special Representation and Warranties
	 	 	29	 
	SECTION 7.2 Maintenance of Records
	 	 	30	 
	SECTION 7.3 Legend
	 	 	30	 
	SECTION 7.4 Modification of Terms, etc.
	 	 	30	 
	SECTION 7.5 Collection
	 	 	30	 
	 
	 	 	 	 
	Article VIII REMEDIES
	 	 	31	 
	SECTION 8.1 Remedies
	 	 	31	 
	SECTION 8.2 Notice of Sale
	 	 	33	 
	SECTION 8.3 Waiver of Notice and Claims; Other Waivers; Marshalling
	 	 	33	 
	SECTION 8.4 Standards for Exercising Rights and Remedies
	 	 	34	 
	SECTION 8.5 Certain Sales of Pledged Collateral
	 	 	35	 
	SECTION 8.6 No Waiver; Cumulative Remedies
	 	 	37	 
	SECTION 8.7 Certain Additional Actions Regarding Intellectual Property
	 	 	37	 
	 
	 	 	 	 
	Article IX PROCEEDS OF CASUALTY EVENTS AND COLLATERAL DISPOSITIONS; APPLICATION OF PROCEEDS
	 	 	37	 
	SECTION 9.1 Proceeds of Casualty Events and Collateral Dispositions
	 	 	37	 
	SECTION 9.2 Application of Proceeds
	 	 	37	 
	 
	 	 	 	 
	Article X MISCELLANEOUS
	 	 	38	 
	SECTION 10.1 Concerning Collateral Agent
	 	 	38	 
	SECTION 10.2 Collateral Agent May Perform; Collateral Agent Appointed
Attorney-in-Fact
	 	 	39	 
	SECTION 10.3 Continuing Security Interest; Assignment
	 	 	39	 
	SECTION 10.4 Termination; Release
	 	 	40	 
	SECTION 10.5 Modification in Writing
	 	 	40	 

ii

 

	 	 	 	 	 
	 	 	Page(s)	 
	SECTION 10.6 Notices
	 	 	40	 
	SECTION 10.7 Governing Law, Consent to Jurisdiction and Service of Process;
Waiver of Jury Trial
	 	 	41	 
	SECTION 10.8 Severability of Provisions
	 	 	42	 
	SECTION 10.9 Execution in Counterparts
	 	 	42	 
	SECTION 10.10 Business Days
	 	 	42	 
	SECTION 10.11 Waiver of Stay
	 	 	42	 
	SECTION 10.12 No Credit for Payment of Taxes or Imposition
	 	 	43	 
	SECTION 10.13 No Claims Against Collateral Agent
	 	 	43	 
	SECTION 10.14 No Release
	 	 	43	 
	SECTION 10.15 Overdue Amounts
	 	 	43	 
	SECTION 10.16 Obligations Absolute
	 	 	43	 
	SECTION 10.17 Amendment and Restatement
	 	 	44	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule 1 Financing Statements and Intellectual Property Registrations
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit 1 Issuer’s Acknowledgment
	 	 	 	 
	Exhibit 2 Securities Pledge Amendment
	 	 	 	 
	Exhibit 3 Joinder Agreement
	 	 	 	 
	Exhibit 4 Copyright Security Agreement
	 	 	 	 
	Exhibit 5 Patent Security Agreement
	 	 	 	 
	Exhibit 6 Trademark Security Agreement
	 	 	 	 

iii

 

AMENDED AND RESTATED SECURITY AGREEMENT

     This AMENDED AND RESTATED SECURITY AGREEMENT, dated as of March 25, 2010 and as AMENDED
AND RESTATED as of December 28, 2010 (as so Amended and Restated, and as it may be further amended,
amended and restated, supplemented or otherwise modified from time to time in accordance with the
provisions hereof, this “Agreement”), made by BioScrip, Inc., a Delaware corporation
(“Borrower”) and the guarantors from time to time party hereto by execution of this
Agreement or otherwise by execution of a Joinder Agreement (collectively, the
“Guarantors”), as pledgors, assignors and debtors (Borrower, together with the Guarantors,
in such capacities and together with any successors in such capacities, collectively, the
“Pledgors,” and each, a “Pledgor”), in favor of Healthcare Finance Group, LLC
(“HFG”) as successor to Jefferies Finance LLC (“Jefferies”), in its capacity as
collateral agent pursuant to the Credit Agreement (as hereinafter defined), as pledgee, assignee
and secured party (in such capacities and together with any successors in such capacities, the
“Collateral Agent”).

R E C I T A L S:

     A. Borrower, the Guarantors, the Collateral Agent, the lending institutions (the
“Lenders”) and other entities party thereto are parties to that certain credit agreement,
dated as of March 25, 2010, as such credit agreement is being Amended and Restated in its entirety
as of the date hereof pursuant to the terms of an amended and restated credit agreement (as so
amended and restated and as further amended, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”).

     B. The Guarantors have, pursuant to the Credit Agreement, unconditionally guaranteed the
Secured Obligations.

     C. Borrower, the Guarantors and the Collateral Agent entered into this Agreement (as in
effect immediately prior to the Restatement Date, the “Existing Agreement”) to , among
other things, secure the payment and performance of the Secured Obligations.

     D. Borrower and the Guarantors have received and will continue receive substantial direct and
indirect benefits from the execution, delivery and performance of the Secured Obligations under the
Credit Agreement and the other Loan Documents and are, therefore, willing to enter into this
Agreement, which shall amend and restate the Original Security Agreement in its entirety in the
manner set forth herein.

     F. Each Pledgor is, or as to Pledged Collateral acquired by such Pledgor after the date
hereof will be, the legal and/or beneficial owner of the Pledged Collateral pledged by it
hereunder.

     G. This Agreement is given by each Pledgor in favor of the Collateral Agent for the
benefit of the Secured Parties to secure the payment and performance of all of the Secured
Obligations.

     H. It is a condition to the obligations of the Lenders to make the Loans under the Credit
Agreement and a condition to the Issuing Bank issuing Letters of Credit under the Credit

 

 

Agreement that each Pledgor execute and deliver the applicable Loan Documents, including this
Agreement.

A G R E E M E N T:

     NOW THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Pledgor and the
Collateral Agent hereby agree to AMEND AND RESTATE the Original Security Agreement on the
Restatement Date in its entirety as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     SECTION 1.1 Definitions.

     (a) Unless otherwise defined herein or in the Credit Agreement, capitalized terms used
herein that are defined in the UCC shall have the meanings assigned to them in the UCC.

     (b) Capitalized terms used but not otherwise defined herein that are defined in the Credit
Agreement shall have the meanings given to them in the Credit Agreement.

     (c) The following terms shall have the following meanings:

     “Account Debtor” shall mean any person who may become obligated to any Pledgor under,
with respect to, or on account of, an Account, Chattel Paper or any General Intangible (including a
payment intangible).

     “Accounts” shall mean all “accounts,” as such term is defined in the UCC, now owned or
hereafter acquired by any Pledgor, including (i) all accounts receivable, including accounts
receivable pursuant to Reimbursement Approvals, other receivables, book debts and other forms of
obligations (other than forms of obligations evidenced by Chattel Paper or Instruments) (including
any such obligations that may be characterized as an account or contract right under the UCC), (ii)
all of each Pledgor’s rights in, to and under all purchase orders or receipts for goods or
services, (iii) all of each Pledgor’s rights to any goods represented by any of the foregoing
(including unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in transit and
rights to returned, reclaimed or repossessed goods), (iv) all rights to payment due to any Pledgor
for property sold, leased, licensed, assigned or otherwise disposed of, for a policy of insurance
issued or to be issued, for a secondary obligation incurred or to be incurred, for energy provided
or to be provided, for the use or hire of a vessel under a charter or other contract, arising out
of the use of a credit card or charge card, or for services rendered or to be rendered by any
Pledgor or in connection with any other transaction (whether or not yet earned by performance on
the part of any Pledgor) and (v) all collateral security of any kind, now or hereafter in
existence, given by any Account Debtor or other person with respect to any of the foregoing.

2

 

     “Acquisition Document Rights” shall mean, with respect to each Pledgor, collectively,
all of such Pledgor’s rights, title and interest in, to and under the Acquisition Documents,
including (i) all rights and remedies relating to monetary damages, including indemnification
rights and remedies, and claims for damages or other relief pursuant to or in respect of the
Acquisition Documents, (ii) all rights and remedies relating to monetary damages, including
indemnification rights and remedies, and claims for monetary damages under or in respect of the
agreements, documents and instruments referred to in the Acquisition Documents or related thereto
and (iii) all proceeds, collections, recoveries and rights of subrogation with respect to the
foregoing.

     “Additional Pledged Interests” shall mean, collectively, with respect to each Pledgor,
(i) all options, warrants, rights, agreements, additional membership, partnership or other equity
interests of whatever class of any issuer of Initial Pledged Interests or any interest in any such
issuer, together with all rights, privileges, authority and powers of such Pledgor relating to such
interests in each such issuer or under any Organizational Document of any such issuer, and the
certificates, instruments and agreements representing such membership, partnership or other
interests and any and all interest of such Pledgor in the entries on the books of any financial
intermediary pertaining to such membership, partnership or other equity interests from time to time
acquired by such Pledgor in any manner and (ii) all membership, partnership or other equity
interests, as applicable, of each limited liability company, partnership or other entity (other
than a corporation) hereafter acquired or formed by such Pledgor and all options, warrants, rights,
agreements, additional membership, partnership or other equity interests of whatever class of such
limited liability company, partnership or other entity, together with all rights, privileges,
authority and powers of such Pledgor relating to such interests or under any Organizational
Document of any such issuer, and the certificates, instruments and agreements representing such
membership, partnership or other equity interests and any and all interest of such Pledgor in the
entries on the books of any financial intermediary pertaining to such membership, partnership or
other interests, from time to time acquired by such Pledgor in any manner.

     “Additional Pledged Shares” shall mean, collectively, with respect to each Pledgor,
(i) all options, warrants, rights, Equity Interests, agreements, additional shares of capital stock
of whatever class of any issuer of the Initial Pledged Shares or any other equity interest in any
such issuer, together with all rights, privileges, authority and powers of such Pledgor relating to
such interests issued by any such issuer under any Organizational Document of any such issuer, and
the certificates, instruments and agreements representing such interests and any and all interest
of such Pledgor in the entries on the books of any financial intermediary pertaining to such
interests, from time to time acquired by such Pledgor in any manner and (ii) all the issued and
outstanding shares of capital stock of each corporation hereafter acquired or formed by such
Pledgor and all options, warrants, rights, agreements or additional shares of capital stock of
whatever class of such corporation, together with all rights, privileges, authority and powers of
such Pledgor relating to such shares or under any Organizational Document of such corporation, and
the certificates, instruments and agreements representing such shares and any and all interest of
such Pledgor in the entries on the books of any financial intermediary pertaining to such shares,
from time to time acquired by such Pledgor in any manner.

     “Agreement” shall have the meaning assigned to such term in the preamble hereof.

     “Bailee Letter” shall have the meaning assigned to such term in Section
3.4(i).

3

 

     “Borrower” shall have the meaning assigned to such term in the preamble hereof.

     “Charges” shall mean any and all property and other taxes, assessments and special
assessments, levies, fees and all governmental charges imposed upon or assessed against, and all
claims (including any landlords’, carriers’, mechanics’, workmen’s, repairmen’s, laborers’,
materialmen’s, suppliers’ and warehousemen’s Liens and other charges arising by operation of law)
against, all or any portion of the Pledged Collateral.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble.

     “Collection Account” shall have the meaning set forth in the Collateral Management
Agreement.

     “Commercial Motor Vehicles” shall mean motor vehicles used primarily for commercial
purposes.

     “Commodity Account Control Agreement” shall mean a commodity account control agreement
in a form that is reasonably satisfactory to the Collateral Agent.

     “Contracts” shall mean, collectively, with respect to each Pledgor, all sale, service,
performance, equipment or property lease contracts, agreements and grants and all other contracts,
agreements or grants (in each case, whether written or oral, or third party or intercompany), to
which such Pledgor is a party, and all assignments, amendments, restatements, supplements,
extensions, renewals, replacements or modifications thereof.

     “Control” shall have the meaning specified in the UCC as applicable to the relevant
Pledged Collateral.

     “Control Agreements” shall mean, collectively, the Deposit Account Control
Agreement(s), the Lockbox Agreements, the Securities Account Control Agreement(s) and the Commodity
Account Control Agreement(s).

     “Copyright Security Agreement” shall mean an agreement substantially in the form
annexed hereto as Exhibit 4.

     “Copyrights” shall mean, collectively, with respect to each Pledgor, all works of
authorship (whether protected by statutory or common law copyright, whether established or
registered in the United States or any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished), and all copyright registrations
and applications made by such Pledgor, in each case, whether now owned or hereafter created or
acquired by such Pledgor, including the copyrights, registrations and applications listed on
Schedule 14(c) to the Perfection Certificate, together with any and all (i) rights and privileges
arising under applicable Legal Requirements with respect to such Pledgor’s use of such copyrights,
(ii) renewals and extensions thereof, (iii) income, fees, royalties, damages, claims and payments
now or hereafter due and/or payable with respect thereto, including damages and payments for past,
present or future infringements thereof, (iv) rights corresponding thereto throughout the world and
(v) rights to sue for past, present or future infringements thereof.

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     “Credit Agreement” shall have the meaning assigned to such term in the recitals
hereof.

     “Deposit Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent and the applicable Pledgor(s) thereto, among the
Collateral Agent, the applicable Pledgor(s) and the bank at which the applicable Deposit Account is
held, granting Control over such Deposit Account to the Collateral Agent.

     “Deposit Accounts” shall mean, collectively, with respect to each Pledgor, (i) all
“deposit accounts” as such term is defined in the UCC and in any event shall include each Lockbox
Account and all accounts and sub-accounts relating to any of the foregoing accounts and (ii) all
cash, funds, checks, notes and instruments from time to time on deposit in any of the accounts or
sub-accounts described in clause (i) of this definition.

     “Distributions” shall mean, collectively, with respect to each Pledgor, all dividends,
cash, options, warrants, rights, instruments, distributions, returns of capital or principal,
income, interest, profits and other property, interests (debt or equity) or proceeds, including as
a result of a split, revision, reclassification or other like change of the Pledged Securities,
from time to time received, receivable or otherwise distributed to such Pledgor in respect of or in
exchange for any or all of the Pledged Securities or Intercompany Notes.

     “Electronic Funds Transfer Instruction” shall have the meaning assigned to such term
in Section 3.4(d).

     “Excluded Property” shall mean (A) any lease, license, contract, property rights or
agreement to which any Pledgor is a party or any of its rights or interests thereunder if and for
so long as the grant of such security interest shall constitute or result in (i) the abandonment,
invalidation or unenforceability of any right, title or interest of any Pledgor therein or (ii) in
a breach or termination pursuant to the terms of, or a default under, any such lease, license,
contract property rights or agreement (other than to the extent that any such term would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable Legal Requirement or
principles of equity); provided, however, that such security interest shall attach immediately and
automatically at such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied and, to the extent severable, shall attach immediately to any
portion of such lease, license, contract, property rights or agreement that does not result in any
of the consequences specified in clauses (i) or (ii) of this definition, including any Proceeds of
such lease, license, contract, property rights or agreement; (B) to the extent applicable, Pledged
Interests, Pledged Shares and Successor Interests to the extent such Pledged Interests, Pledged
Shares and Successor Interests are not required to be pledged as Pledged Collateral pursuant to
Section 5.11(b) of the Credit Agreement; (C) the Deposit Accounts described in Section 3.4(c) as
being excluded from the operation thereof; or (D) to the extent provided in Section 5.11(b) of the
Credit Agreement in respect of Equity Interests in certain Foreign Subsidiaries.

     “General Intangibles” shall mean, collectively, with respect to each Pledgor, all
“general intangibles,” as such term is defined in the UCC, now owned or hereafter acquired by such
Pledgor and, in any event, shall include (i) all of such Pledgor’s rights, title and interest in,
to and

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under all insurance policies and coverages and Contracts, (ii) all know-how and warranties
relating to any of the Pledged Collateral or any of the Mortgaged Property (if any), (iii) any and
all other rights, claims, choses-in-action and causes of action of such Pledgor against any other
person and the benefits of any and all collateral or other security given by any other person in
connection therewith, (iv) all guarantees, endorsements and indemnifications on, or of, any of the
Pledged Collateral or any of the Mortgaged Property (if any), (v) all lists, books, records,
correspondence, ledgers, printouts, files (whether in printed form or stored electronically), tapes
and other papers or materials containing information relating to any of the Pledged Collateral or
any of the Mortgaged Property (if any), including all customer or tenant lists, identification of
suppliers, data, plans, blueprints, specifications, designs, drawings, appraisals, recorded
knowledge, surveys, studies, engineering reports, test reports, manuals, standards, processing
standards, performance standards, catalogs, research data, computer and automatic machinery
software and programs and the like, field repair data, accounting information pertaining to such
Pledgor’s operations or any of the Pledged Collateral or any of the Mortgaged Property (if any) and
all media in which or on which any of the information or knowledge or data or records may be
recorded or stored and all computer programs used for the compilation or printout of such
information, knowledge, records or data, (vi) to the extent such Pledgor’s rights, title and
interests therein may be assigned pursuant hereto, all Accreditations, Permits, Reimbursement
Approvals, Licenses, and all other licenses, consents, permits, variances, certifications,
authorizations and approvals, however characterized, of any Governmental Authority (or any person
acting on behalf of a Governmental Authority) now or hereafter acquired or held by such Pledgor
pertaining to operations now or hereafter conducted by such Pledgor or any of the Pledged
Collateral or any of the Mortgaged Property (if any) including building permits, certificates of
occupancy, environmental certificates, industrial permits or licenses and certificates of
operation, and (vii) all rights to reserves, payment intangibles, deferred payments, deposits,
refunds or indemnification claims to the extent the foregoing relate to any Pledged Collateral or
any Mortgaged Property (if any) and claims for tax or other refunds against any Governmental
Authority relating to any Pledged Collateral or any of the Mortgaged Property (if any).

     “Goodwill” shall mean, collectively, with respect to each Pledgor, the goodwill
connected with such Pledgor’s business including (i) all goodwill connected with the use of and
symbolized by any Intellectual Property Collateral in which such Pledgor has any interest, (ii) all
know-how, trade secrets, customer and supplier lists, proprietary information, inventions, methods,
plans, policies, procedures, formulae, descriptions, compositions, technical data, drawings,
specifications, name plates, catalogs, confidential information and the right to limit the use or
disclosure thereof by any person, pricing and cost information, business and marketing plans and
proposals, consulting agreements, engineering contracts and such other assets which relate to such
goodwill and (iii) all product lines of such Pledgor’s business.

     “Guarantors” shall have the meaning assigned to such term in the preamble hereof.

     “Initial Pledged Interests” shall mean, with respect to each Pledgor, all membership,
partnership or other Equity Interests (other than in a corporation), as applicable, of each issuer
described in Schedule 11 to the Perfection Certificate, together with all rights, privileges,
authority and powers of such Pledgor in and to each such issuer or under any Organizational
Document of each such issuer, and the certificates, instruments and agreements representing such

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membership, partnership or other interests and any and all interest of such Pledgor in the
entries on the books of any financial intermediary pertaining to such membership, partnership or
other interests.

     “Initial Pledged Shares” shall mean, collectively, with respect to each Pledgor, the
issued and outstanding shares of capital stock of each issuer that is a corporation described in
Schedule 11 to the Perfection Certificate, together with all rights, privileges, authority and
powers of such Pledgor relating to such interests in each such issuer or under any Organizational
Document of each such issuer, and the certificates, instruments and agreements representing such
shares of capital stock and any and all interest of such Pledgor in the entries on the books of any
financial intermediary pertaining to such Initial Pledged Shares.

     “Instruments” shall mean, collectively, with respect to each Pledgor, all
“instruments,” as such term is defined in Article 9, rather than Article 3, of the UCC, and shall
include all promissory notes, drafts, bills of exchange and acceptances.

     “Intellectual Property Collateral” shall mean, collectively, the Patents, Trademarks,
Copyrights, Licenses and Goodwill.

     “Intercompany Notes” shall mean, with respect to each Pledgor, the Intercompany Note
and all intercompany notes hereafter acquired by such Pledgor and all certificates, instruments or
agreements evidencing the Intercompany Note and such intercompany notes, and all assignments,
amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof
to the extent permitted pursuant to the terms hereof.

     “Investment Property” shall mean a security, whether certificated or uncertificated,
Security Entitlement, Securities Account, Commodity Contract or Commodity Account, excluding,
however, the Securities Collateral.

     “Jefferies” shall have the meaning assigned to such term in the preamble hereto.

     “Joinder Agreement” shall mean an agreement substantially in the form annexed hereto
as Exhibit 3.

     “Lenders” shall have the meaning assigned to such term in the recitals hereto.

     “Licenses” shall mean, collectively, with respect to each Pledgor, all license and
distribution agreements with, and covenants not to sue, any other party with respect to any Patent,
Trademark or Copyright or any other patent, trademark or copyright, whether such Pledgor is a
licensor or licensee, distributor or distributee under any such license or distribution agreement,
together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii)
income, fees, royalties, damages, claims and payments now and hereafter due and/or payable
thereunder and with respect thereto including damages and payments for past, present or future
infringements or violations thereof, (iii) rights to sue for past, present and future infringements
or violations thereof and (iv) other rights to use, exploit or practice any or all of the Patents,
Trademarks or Copyrights or any other patent, trademark or copyright.

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     “Lockbox Accounts” shall mean, collectively, with respect to each Pledgor, (i) each
lockbox or other collection account or any other Deposit Account and all accounts and sub-accounts
relating to any of the foregoing accounts, in each case into which any Accounts payable by (a)
Medicare/Medicaid Account Debtors or (b) Insurers (as defined in the Collateral Management
Agreement) are held or have been deposited, and including in all cases the “Lockbox Accounts” (as
such term is defined in the Collateral Management Agreement),and (ii) all cash, funds, checks,
notes and instruments from time to time on deposit in any of the accounts or sub-accounts described
in clause (i) of this definition.

     “Lockbox Agreement” shall mean an agreement in form and substance reasonably
satisfactory to the Collateral Agent among the Collateral Agent, the applicable Pledgor and the
bank at which the applicable Lockbox Account is held, and including in all cases each “Depositary
Agreement” (as such term is defined in the Collateral Management Agreement).

     “Lockbox Bank” shall have the meaning assigned to such term in Section 3.4(d).

     “Medicaid/Medicare Account Debtor” or “Medicare/Medicaid Account Debtor” shall
mean any Account Debtor which is (i) the United States of America acting under the Medicaid or
Medicare program adopted pursuant to Title XVIII or Title XIX of the Social Security Act or any
other federal healthcare program, including TRICARE/CHAMPUS and the Veteran’s Administration, (ii)
any state or the District of Columbia acting pursuant to a Medicaid program adopted pursuant to
Title XIX of the Social Security Act or any other state health care program, (iii) any agent,
carrier, administrator or intermediary for any of the foregoing or (iv) any other Governmental
Entity (as such term is defined in the Collateral Management Agreement).

     “Mortgaged Property” shall have the meaning assigned to such term in any Mortgages (if
any).

     “Patent Security Agreement” shall mean an agreement substantially in the form annexed
hereto as Exhibit 5.

     “Patents” shall mean, collectively, with respect to each Pledgor, all patents owned
by, and all patent applications and registrations made by, such Pledgor (whether established or
registered or recorded in the United States or any other country or any political subdivision
thereof), including those listed on Schedule 14(a) to the Perfection Certificate, together with any
and all (i) rights and privileges arising under applicable Legal Requirements with respect to such
Pledgor’s use of any patents, (ii) inventions and improvements described and charged therein, (iii)
reissues, divisions, continuations, renewals, extensions and continuations in part thereof, (iv)
income, fees, royalties, damages, claims and payments now or hereafter due and/or payable
thereunder and with respect thereto including damages and payments for past, present or future
infringements thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue
for past, present or future infringements thereof.

     “Payroll Account” shall mean any Deposit Account of a Pledgor that is used by such
Pledgor solely as a payroll account for the employees of such Pledgor; provided that, at no time,
shall the aggregate amount contained in any such account exceed the total amount of payroll payable
to such employees by such Pledgor within the immediately succeeding 30 days.

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     “Perfection Certificate” shall mean that certain perfection certificate dated the date
hereof, executed and delivered by each Pledgor (or Pledgors) party thereto in favor of the
Collateral Agent for the benefit of the Secured Parties, and each other Perfection Certificate
(which shall be in the form of Exhibit I-1 to the Credit Agreement and in substance reasonably
acceptable to the Collateral Agent) executed and delivered by the applicable Pledgor(s) in favor of
the Collateral Agent for the benefit of the Secured Parties contemporaneously with the execution
and delivery of each Joinder Agreement executed in accordance with Section 3.5, in each
case, as the same may be amended, amended and restated, supplemented or otherwise modified from
time to time by a Perfection Certificate Supplement or otherwise in accordance with the Credit
Agreement.

     “Pledged Collateral” shall have the meaning assigned to such term in Section
2.1.

     “Pledged Interests” shall mean, collectively, the Initial Pledged Interests and the
Additional Pledged Interests.

     “Pledged Securities” shall mean, collectively, the Pledged Interests, the Pledged
Shares and the Successor Interests.

     “Pledged Shares” shall mean, collectively, the Initial Pledged Shares and the
Additional Pledged Shares.

     “Pledgor” shall have the meaning assigned to such term in the preamble hereof.

     “Secured Obligations” shall mean (i) in the case of Borrower, the Obligations (as
defined in the Credit Agreement) and (ii) in the case of any Pledgor (other than Borrower), the
Guaranteed Obligations.

     “Securities Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent, among the Collateral Agent, the applicable Pledgor
and the applicable Securities Intermediary or Commodity Intermediary.

     “Securities Collateral” shall mean, collectively, the Pledged Securities, the
Intercompany Notes and the Distributions.

     “Securities Pledge Amendment” shall mean an agreement substantially in the form
annexed hereto as Exhibit 2.

     “Successor Interests” shall mean, collectively, with respect to each Pledgor, all
shares of each class of the capital stock of the successor corporation or interests or certificates
of the successor limited liability company, partnership or other entity owned by such Pledgor
(unless such successor is such Pledgor itself) formed by or resulting from any consolidation or
merger in which any person listed on Schedule 1(a) to the Perfection Certificate is not the
surviving entity.

     “Trademark Security Agreement” shall mean an agreement substantially in the form
annexed hereto as Exhibit 6.

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     “Trademarks” shall mean, collectively, with respect to each Pledgor, all trademarks
(including service marks), slogans, logos, certification marks, trade dress, uniform resource
locations (URL’s), domain names, corporate names and trade names, whether registered or
unregistered, owned by such Pledgor and all registrations and applications for the foregoing
(whether statutory or common law and whether established or registered in the United States or any
other country or any political subdivision thereof), including those listed on Schedule 14(b) to
the Perfection Certificate together with any and all (i) rights and privileges arising under
applicable Legal Requirements with respect to such Pledgor’s use of any trademarks, (ii) goodwill
associated therewith, (iii) renewals thereof, (iv) income, fees, royalties, damages and payments
now and hereafter due and/or payable thereunder and with respect thereto, including damages, claims
and payments for past, present or future infringements thereof, (v) rights corresponding thereto
throughout the world and (vi) rights to sue for past, present and future infringements thereof.

     “UCC” shall mean the Uniform Commercial Code as in effect on the date hereof in the
State of New York; provided, however, that if by reason of mandatory provisions of applicable Legal
Requirements, any or all of the attachment, perfection or priority of the Collateral Agent’s and
the other Secured Parties’ security interest in any item or portion of the Pledged Collateral is
governed by the Uniform Commercial Code in a jurisdiction other than the State of New York, the
term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such attachment, perfection or priority and for
purposes of definitions relating to such provisions.

     SECTION 1.2 Interpretation. The rules of interpretation specified in the Credit Agreement (including
Section 1.02 thereof) shall be applicable to this Agreement.

     SECTION 1.3 Resolution of Drafting Ambiguities. Each Pledgor acknowledges and agrees that it was
represented by counsel in connection with the execution and delivery hereof, that it and its
counsel reviewed and participated in the preparation and negotiation hereof and that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party (i.e.,
the Collateral Agent) shall not be employed in the interpretation hereof.

     SECTION 1.4 Perfection Certificate. The Perfection Certificate and all descriptions of Pledged
Collateral, schedules, amendments and supplements thereto are and shall at all times remain a part
of this Agreement.

ARTICLE II

GRANT OF SECURITY AND SECURED OBLIGATIONS

     SECTION 2.1 Grant of Security Interest. As collateral security for the payment and performance in full of all the Secured Obligations
now or hereafter existing, each Pledgor hereby pledges and grants to the Collateral Agent for the
ratable benefit of the Secured Parties, a lien on and security interest in and to all of the right,
title and interest of such Pledgor in, to and under the following property, wherever located,
whether now existing or hereafter arising or acquired from time to time (collectively, the
“Pledged Collateral”):

10

 

               (i) all Accounts;

               (ii) all Equipment (including Commercial Motor Vehicles), Goods, Inventory and Fixtures;

               (iii) all Documents, Instruments and Chattel Paper;

               (iv) all Contracts;

               (v) all Letter-of-Credit Rights (whether or not the letter(s) of credit is evidenced by a
writing);

               (vi) all Securities Collateral;

               (vii) all Investment Property;

               (viii) all Intellectual Property Collateral;

               (ix) the Commercial Tort Claims described on Schedule 15 to the Perfection Certificate;

               (x) all General Intangibles;

               (xi) all Deposit Accounts;

               (xii) all Securities Accounts, and all Investment Property held therein or credited
thereto;

               (xiii) all Commodity Accounts;

               (xiv) all money, cash, cash equivalents, securities and other property of any kind of
such Pledgor;

               (xv) all Acquisition Documents and Acquisition Document Rights;

               (xvi) all Supporting Obligations;

               (xvii) all books and records pertaining to the Pledged Collateral;

               (xviii) to the extent not covered by clauses (i) through (xvii) above, choses in action
and all other personal property of such Pledgor, whether tangible or intangible; and

               (xix) all Proceeds and products of each of the foregoing and all accessions to,
substitutions and replacements for, and rents, profits and products of, each of the foregoing, and
any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to such Pledgor from
time to time with respect to any of the foregoing.

11

 

Notwithstanding anything to the contrary contained in clauses (i) through (xix) above, the security
interest created by this Agreement shall not extend to, and the term “Pledged Collateral” shall not
include, any Excluded Property. In addition, (i) the Pledgors shall from time to time at the
reasonable request of the Collateral Agent give written notice to the Collateral Agent identifying
in reasonable detail the Excluded Property and shall provide to the Collateral Agent such other
information regarding the Excluded Property as the Collateral Agent may reasonably request, and
(ii) from and after the Restatement Date, no Pledgor shall permit to become effective in any
document creating, governing or providing for any permit, lease or license, a provision that would
prohibit the creation of a Lien on such permit, lease or license in favor of the Collateral Agent
unless (x) no Event of Default has occurred and is continuing and (y) such Pledgor believes, in its
reasonable judgment, that such prohibition is usual and customary in transactions of such type.

     SECTION 2.2 Filings.

     (a) Each Pledgor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing statements (including
fixture filings), continuation statements and amendments or assignments thereto that contain the
information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any
financing statement, continuation statement or amendment relating to the Pledged Collateral,
including (i) whether such Pledgor is an organization, the type of organization and any
organizational identification number issued to such Pledgor, and (ii) in the case of a financing
statement filed as a fixture filing or covering Pledged Collateral constituting minerals or the
like to be extracted or timber to be cut, a sufficient description of the real property to which
such Pledged Collateral relates. Each Pledgor agrees to provide all information described in the
immediately preceding sentence to the Collateral Agent promptly upon request. Such financing
statements may describe the collateral in the same manner as described herein or may contain a
description of collateral that describes such property in any other manner as the Collateral Agent
may determine, in its sole but reasonable discretion, is necessary, advisable or prudent to ensure
the perfection or priority of the security interest in the collateral granted to the Collateral
Agent in connection herewith, including, describing such property as “all assets whether now owned
or hereafter acquired” or “all personal property whether now owned or hereafter acquired”
(regardless of whether any particular asset comprised in the Pledged Collateral falls within the
scope of Article 9 of the UCC).

     (b) Each Pledgor hereby ratifies its authorization for the Collateral Agent to file in any
relevant jurisdiction any initial financing statements or amendments thereto relating to the
Pledged Collateral if filed prior to the date hereof.

     (c) Each Pledgor hereby ratifies its authorization for the Collateral Agent, and further
authorizes the Collateral Agent, to file filings with the United States Patent and Trademark Office
or United States Copyright Office (or any successor office or any similar office in any other
country), including this Agreement, the Copyright Security Agreement, the Patent Security Agreement
and the Trademark Security Agreement, or other documents for the purpose of perfecting, confirming,
continuing, enforcing or protecting the pledge and security interest granted by such Pledgor
hereunder, without the signature of such Pledgor, and naming such Pledgor, as debtor, and the
Collateral Agent, as secured party.

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ARTICLE III

PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;

USE OF PLEDGED COLLATERAL

     SECTION 3.1 Delivery of Certificated Securities Collateral. Each Pledgor represents and warrants that
all certificates, agreements or instruments representing or evidencing the Securities Collateral in
existence on the date hereof have been delivered to the Collateral Agent in suitable form for
transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank
and that the Collateral Agent has a valid, enforceable, perfected first priority security interest
therein (subject to Permitted Liens). Each Pledgor hereby agrees that all certificates, agreements
or instruments representing or evidencing Securities Collateral acquired by such Pledgor after the
date hereof shall promptly (and in any event within 5 Business Days) upon receipt thereof by such
Pledgor be delivered to and held by or on behalf of the Collateral Agent pursuant hereto. All
certificated Securities Collateral shall be in suitable form for transfer by delivery or shall be
accompanied by duly executed undated instruments of transfer or assignment in blank, all in form
and substance reasonably satisfactory to the Collateral Agent. The Collateral Agent shall have the
right, at any time upon the occurrence and during the continuance of any Event of Default, to
endorse, assign or otherwise transfer to or to register in the name of the Collateral Agent or any
of its nominees or endorse for negotiation any or all of the Securities Collateral, without any
indication that such Securities Collateral is subject to the security interest hereunder. In
addition, the Collateral Agent shall have the right at any time in its reasonable discretion to
exchange certificates representing or evidencing Securities Collateral for certificates of smaller
or larger denominations.

     SECTION 3.2 Perfection of Uncertificated Securities Collateral. Each Pledgor represents and warrants
that the Collateral Agent has a valid, enforceable and perfected first priority security interest
(subject to Permitted Liens) in all uncertificated Securities Collateral pledged by under this
Agreement that are in existence on the date hereof. Each Pledgor hereby agrees that if any issuer
of Securities Collateral is organized in a jurisdiction that does not permit the use of
certificates to evidence equity ownership or any of the Securities Collateral are at any time not
evidenced by certificates of ownership, then each applicable Pledgor shall, (i) if necessary to
perfect a first priority security interest (subject to Permitted Liens) in such Securities
Collateral, cause such pledge to be recorded on the equityholder register or the books of the
issuer, cause the issuer to execute and deliver to the
Collateral Agent an acknowledgment of the pledge of such Securities Collateral substantially in the
form of Exhibit 1 annexed hereto, execute any customary pledge forms or other documents
necessary or appropriate to complete the pledge and give the Collateral Agent the right to transfer
such Securities Collateral under the terms hereof and, upon the Collateral Agent’s reasonable
request, provide to the Collateral Agent an opinion of counsel, in form and substance reasonably
satisfactory to the Collateral Agent, confirming such pledge and perfection thereof and (ii) to the
extent permitted by applicable Legal Requirements, cause such Securities Collateral to become
certificated and delivered to the Collateral Agent in accordance with the provisions of Section
3.1.

     SECTION 3.3 Financing Statements and Other Filings; Maintenance of Perfected Security Interest. Each
Pledgor represents and warrants that the only filings, registrations and recordings necessary to
perfect the security interest granted by each Pledgor to the Collateral

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Agent in respect of the Pledged Collateral (to the extent that a security interest therein may be perfected by filing a
financing statement or filing this Agreement or a short form thereof with the United States
Copyright Office or the United States Patent and Trademark Office) are listed on Schedule 1
hereto. All such filings, registrations and recordings have been delivered to the Collateral Agent
in completed and, to the extent necessary or appropriate, duly executed form for filing in each
applicable governmental, municipal or other office specified in Schedule 1 hereto. Each
Pledgor agrees that at the sole cost and expense of the Pledgors, (i) such Pledgor will maintain
the security interest created by this Agreement in the Pledged Collateral as a valid, enforceable,
perfected first priority security interest (subject to Permitted Liens) and shall defend such
security interest against the claims and demands of all persons, (ii) such Pledgor shall furnish to
the Collateral Agent from time to time statements and schedules further identifying and describing
the Pledged Collateral and such other reports in connection with the Pledged Collateral as the
Collateral Agent may reasonably request, all in reasonable detail and (iii) at any time and from
time to time, upon the written request of the Collateral Agent, such Pledgor shall promptly and
duly execute and deliver, and file and have recorded, such further instruments and documents and
take such further action as the Collateral Agent may reasonably request for the purpose of
obtaining or preserving the full benefits of this Agreement and the rights and powers herein
granted, including (x) the filing of any financing statements and amendments thereof, continuation
statements and other documents (including this Agreement) under the UCC (or other similar laws) in
effect in any jurisdiction with respect to the security interest created hereby and (y) the
execution and delivery of Control Agreements, the Copyright Security Agreements, the Trademark
Security Agreements and the Patent Security Agreements, all in form reasonably satisfactory to the
Collateral Agent and in such offices (including the United States Patent and Trademark Office and
the United States Copyright Office) wherever required by applicable Legal Requirements to perfect
(to the extent a security interest in such Pledged Collateral may be so perfected under applicable
Legal Requirements), continue and maintain a valid, enforceable and perfected first priority
security interest (subject to Permitted Liens) in the Pledged Collateral as provided herein and to
preserve the other rights and interests granted to the Collateral Agent hereunder, as against third
parties, with respect to the Pledged Collateral.

     SECTION 3.4 Other Actions. In order to further ensure the attachment, perfection and priority of, and the ability of the
Collateral Agent to enforce, the Collateral Agent’s and the other Secured Parties’ security
interest in the Pledged Collateral, each Pledgor represents and warrants and covenants as follows,
in each case at such Pledgor’s own expense, to take the following actions with respect to the
following Pledged Collateral:

     (a) Instruments and Tangible Chattel Paper. As of the date hereof, each Pledgor
hereby represents and warrants that (i) no amounts individually or in the aggregate in excess of
$250,000 payable under or in connection with any of the Pledged Collateral are evidenced by any
Instrument or Tangible Chattel Paper other than the Intercompany Note and the Instruments and
Tangible Chattel Paper listed on Schedule 12 to the Perfection Certificate, (ii) the Intercompany
Note has been properly assigned and delivered to the Collateral Agent, accompanied by an
endorsement to the Intercompany Note in the form attached thereto undated and duly executed in
blank by each Pledgor and (iii) each such Instrument and each such item of Tangible Chattel Paper
individually or in the

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aggregate in excess of $250,000 has been properly endorsed, assigned and
delivered to the Collateral Agent, accompanied by instruments of transfer or assignment undated and
duly executed in blank. If any amount, individually or in the aggregate, in excess of $250,000
then payable under or in connection with any of the Pledged Collateral shall be evidenced by any
Instrument or Tangible Chattel Paper, the Pledgor acquiring such Instrument or Tangible Chattel
Paper shall promptly (and in any event within 5 Business Days) endorse, assign and deliver the same
to the Collateral Agent, accompanied by such instruments of transfer or assignment undated and duly
executed in blank as the Collateral Agent may from time to time reasonably request; provided,
however, that so long as no Event of Default has occurred and is continuing, upon written request
by such Pledgor, the Collateral Agent shall promptly (and in any event within 5 Business Days)
return such Instrument (other than the Intercompany Note) or Tangible Chattel Paper to such Pledgor
from time to time, to the extent necessary for collection in the ordinary course of such Pledgor’s
business.

     (b) Deposit Accounts. Each Pledgor hereby represents and warrants that (i) as of
the date hereof, each Pledgor has neither opened nor maintains any Deposit Accounts (x) in which
the Pledgors customarily maintain funds in excess of $100,000, individually or in the aggregate,
other than the Deposit Accounts listed on Schedule 16(a) to the Perfection Certificate, or (y) into
which Accounts payable by Medicare/Medicaid Account Debtors are held or have been deposited, other
than the Deposit Accounts listed on Schedule 16(b) to the Perfection Certificate, (ii) each
applicable Pledgor and the relevant bank(s) shall have executed and delivered to the Collateral
Agent, with respect to Deposit Accounts and Lockbox Accounts (other than Lockbox Accounts related
to Medicare/Medicaid Account Debtors), other than Payroll Accounts, a Deposit Account Control
Agreement or Lockbox Agreement, as applicable, with respect to each of the Deposit Accounts listed
on Schedule 16(a) to the Perfection Certificate or such Pledgor(s) has closed such accounts, (iii)
the Collateral Agent shall have a valid, enforceable and perfected first priority security interest
(subject to Permitted Liens) in such Deposit Accounts listed on Schedule 16(a) by Control, (iv)
each applicable Pledgor and the relevant banks shall execute and deliver to the Collateral Agent a
Lockbox Agreement with respect to each of the Lockbox Accounts listed on Schedule 16(b) to the
Perfection Certificate or the Pledgors shall close such accounts, (v) the Collateral Agent shall
have a valid and perfected first priority security interest in such Lockbox Accounts listed on
Schedule 16(b) by dominion and control (subject only to non-consensual Permitted Liens arising by
operation of applicable Legal Requirements and which are entitled, by operation of such Legal Requirements, to priority over the Collateral
Agent’s security interest therein), (vi) the Collateral Agent’s first priority security interest in
such Lockbox Accounts listed on Schedule 16(b) shall become and shall remain enforceable, subject
only to the Collateral Agent obtaining the consent of the applicable Medicare/Medicaid Account
Debtor, compliance with applicable Health Care Laws, or obtaining an Order from a court of
competent jurisdiction recognizing and permitting the enforcement of such security interest and
(vii) as of the date hereof, the funds contained in each Lockbox Account are either required under
the terms of a Lockbox Agreement to be, or in fact are, transferred to a Deposit Account maintained
by a Pledgor (and then subsequently transferred to the Collection Account) or to the Collection
Account, in each case within one Business Day following receipt of such funds in the Lockbox
Account subject to such lockbox agreement.

     (c) No Pledgor shall hereafter establish and maintain any Deposit Account (including any
Lockbox Account) unless (1) the applicable Pledgor shall have given the Collateral Agent five
Business Days’ prior written notice of its intention to establish such new Deposit Account with a
bank or other financial institution, (2) such Bank shall be reasonably acceptable to the Collateral
Agent and (3) such Bank and such Pledgor shall have duly executed and delivered to

15

 

the Collateral Agent a Deposit Account Control Agreement (or an amendment to an existing Deposit Account Control
Agreement) with respect to such Deposit Account or, in the case of a Lockbox Account, a Lockbox
Agreement (or an amendment to any existing Lockbox Agreement) with respect to such Lockbox Account.
The Collateral Agent shall not give any instructions directing the disposition of funds from time
to time credited to any Deposit Account (other than any Lockbox Account) or withhold any withdrawal
rights from such Pledgor with respect to funds from time to time credited to any Deposit Account
unless an Event of Default has occurred and is continuing or, after giving effect to any
withdrawal, would occur. The provisions of this Section 3.4(c) shall not apply to (i) any
Payroll Accounts or (ii) any other Deposit Account in which the Pledgors customarily maintain less
than $25,000, individually or in the aggregate (with respect to any financial institution) (other
than any Lockbox Account). No Pledgor has granted or shall grant Control of any Deposit Account
(including any Payroll Account) to any person other than the Collateral Agent.

     (d) Special Provisions Regarding Accounts Payable by Medicare/Medicaid Account
Debtors; Lockbox Accounts; Lockbox Agreements. Each Pledgor shall maintain, in its name and at
its expense, one or more Lockbox Accounts with one or more banks reasonably acceptable to the
Collateral Agent (each, including in all cases each “Lockbox Bank” (as such term is defined in the
Collateral Management Agreement), a “Lockbox Bank”), and shall execute with each Lockbox
Bank one or more Lockbox Agreements reasonably acceptable to the Collateral Agent, and such other
agreements related thereto as the Collateral Agent may reasonably require. Each Pledgor shall
ensure that all collections of its respective Accounts payable by Medicare/Medicaid Account Debtors
are paid and delivered directly from Medicare/Medicaid Account Debtors into the appropriate Lockbox
Account in accordance with the applicable Lockbox Agreement, and shall complete and submit to the
applicable Medicare/Medicaid Account Debtors all necessary Form CMS-588 or other forms or
instructions required in order to accomplish the foregoing (the “Electronic Funds Transfer
Instruction”). To the extent that any Accounts payable by Medicare/Medicaid Account Debtors
are collected by any Pledgor are not sent directly to the appropriate Lockbox Account but are
received by any Pledgor or any of its Affiliates, such collections and proceeds shall be held in
trust for the benefit of the Collateral Agent and immediately remitted, in the form received, to the appropriate Lockbox Account. No
Pledgor shall instruct or authorize any Medicare/Medicaid Account Debtor to deposit amounts payable
by such Medicare/Medicaid Account Debtor into any account other than the appropriate Lockbox
Account, which shall at all times be subject to an effective Lockbox Agreement. Each Pledgor shall
notify the Collateral Agent in writing promptly (and in any event within 5 Business Days) of any
revocation, suspension, termination, restriction, limitation, denial or nonrenewal affecting any
Electronic Funds Transfer Instruction.

     (e) Securities Accounts and Commodity Accounts. (i) Each Pledgor hereby
represents and warrants that (1) as of the date hereof, it has neither opened nor maintains any
Securities Accounts or Commodity Accounts in which the amount and/or fair market value,
individually or in the aggregate, of the financial assets and/or commodity contracts, as the case
may be, held from time to time in all such accounts does not exceed $100,000, other than those
listed on Schedule 16(c) to the Perfection Certificate, (2) as of the date hereof, each applicable
Pledgor and the relevant Securities Intermediary or Commodity Intermediary have executed and
delivered to the Collateral Agent a Securities Account Control Agreement or Commodity Account
Control Agreement, as applicable, for each Securities Account or Commodity Account

16

 

listed on Schedule 16(c) to the Perfection Certificate, or the Pledgors have closed such
accounts, (3) the Collateral Agent has a valid, enforceable and perfected first priority security
interest (other than Permitted Liens) in such Securities Accounts and Commodity Accounts by
Control, and (4) it does not hold, own or have any interest in any certificated securities or
uncertificated securities other than those constituting Pledged Securities and those maintained in
Securities Accounts or Commodity Accounts listed on Schedule 16(c) to the Perfection Certificate or
in respect of which the Collateral Agent has Control. If any Pledgor shall at any time hold or
acquire any certificated securities constituting Investment Property and having a fair market
value, individually or in the aggregate, in excess of $100,000, such Pledgor shall promptly (and in
any event within 5 Business Days of acquiring such security) (a) endorse, assign and deliver the
same to the Collateral Agent, accompanied by such instruments of transfer or assignment undated and
duly executed in blank, all in form and substance reasonably satisfactory to the Collateral Agent
or (b) deliver such securities into a Securities Account with respect to which a Control Agreement
is in effect in favor of the Collateral Agent. If any securities now or hereafter acquired by any
Pledgor constituting Investment Property and having a fair market value, individually or in the
aggregate, in excess of $100,000 are uncertificated and are issued to such Pledgor or its nominee
directly by the issuer thereof, such Pledgor shall promptly (and in any event within 5 Business
Days of acquiring such security) notify the Collateral Agent thereof and pursuant to an agreement
in form and substance reasonably satisfactory to the Collateral Agent, either (a) cause the issuer
to agree to comply with Entitlement Orders or other instructions from the Collateral Agent as to
such securities, without further consent of any Pledgor or such nominee, (b) cause a Security
Entitlement with respect to such uncertificated security to be held in a Securities Account with
respect to which the Collateral Agent has Control or (c) arrange for the Collateral Agent to become
the registered owner of the securities. The Pledgors shall not hereafter establish and maintain
any Securities Account or Commodity Account with any Securities Intermediary or Commodity
Intermediary, as applicable, unless (1) the applicable Pledgor shall have given the Collateral
Agent 30 days’ prior written notice of its intention to establish such new Securities Account or
Commodity Account with such Securities Intermediary or Commodity Intermediary, as applicable, (2)
such Securities Intermediary or Commodity Intermediary, as applicable, shall be reasonably
acceptable to the Collateral Agent and (3) such Securities Intermediary or Commodity Intermediary,
as the case may be, and such Pledgor shall have duly executed and delivered to the Collateral Agent
a Control Agreement with respect to such Securities Account or Commodity Account, as the case may
be. The Collateral Agent shall not give any Entitlement Orders or instructions or directions to
any issuer of uncertificated securities, Securities Intermediary or Commodity Intermediary, and
shall not withhold its consent to the exercise of any withdrawal or dealing rights by such Pledgor,
unless an Event of Default has occurred and is continuing, or, after giving effect to any such
investment and withdrawal rights, would occur. The provisions of this Section 3.4(e) shall
not apply to any Financial Assets credited to a Securities Account for which the Collateral Agent
is the Securities Intermediary. No Pledgor shall grant Control over any Investment Property to any
person other than the Collateral Agent.

               (ii) As between the Collateral Agent and the Pledgors, the Pledgors shall bear the investment
risk with respect to the Investment Property and Pledged Securities, and the risk of loss of,
damage to, or the destruction of the Investment Property and Pledged Securities, whether in the
possession of, or maintained as a security entitlement or deposit by, or subject to the control of,
the Collateral Agent, a Securities Intermediary, Commodity

17

 

Intermediary, any Pledgor or any other person; provided, however, that nothing contained in
this Section 3.4(e) shall release or relieve any Securities Intermediary or Commodity
Intermediary of its duties and obligations to the Pledgors or any other person under any Control
Agreement or under applicable Legal Requirements. Each Pledgor shall promptly pay all Charges and
fees of whatever kind or nature with respect to the Investment Property and Pledged Securities
pledged by it under this Agreement. In the event any Pledgor shall fail to make such payment
contemplated in the immediately preceding sentence, the Collateral Agent may (but shall not be
obligated to) do so for the account of such Pledgor and the Pledgors shall promptly reimburse and
indemnify the Collateral Agent from all reasonable costs and expenses incurred by the Collateral
Agent under this Section 3.4(e) in accordance with Section 11.03 of the Credit
Agreement.

     (f) Electronic Chattel Paper and Transferable Records. If any amount, individually or
in the aggregate, in excess of $100,000 or payable under or in connection with any of the Pledged
Collateral is evidenced by any Electronic Chattel Paper or any “transferable record” (as that term
is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act,
or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction), the Pledgor acquiring such Electronic Chattel Paper or transferable record shall
promptly (and in any event within 10 days of the acquisition thereof) notify the Collateral Agent
thereof and shall take such action as the Collateral Agent may reasonably request to vest in the
Collateral Agent control under Section 9-105 of the UCC of such Electronic Chattel Paper or control
under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as
the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such
jurisdiction, of such transferable record. The Collateral Agent agrees with such Pledgor that the
Collateral Agent will arrange, pursuant to procedures reasonably satisfactory to the Collateral
Agent and so long as such procedures will not result in the Collateral Agent’s loss of control, for
the Pledgor to make alterations to the Electronic Chattel Paper or transferable record permitted
under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic
Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions
Act for a party in control to allow without loss of control, unless an Event of Default has
occurred and is continuing or would occur after taking into account any action by such Pledgor with
respect to such Electronic Chattel Paper or transferable record.

     (g) Letter-of-Credit Rights. If any Pledgor is at any time a beneficiary under a
Letter of Credit now or hereafter issued in favor of such Pledgor, other than a Letter of Credit
issued pursuant to the Credit Agreement or a Letter of Credit that is a “supporting obligation” (as
defined in Section 9-102 of the UCC) with respect to other Pledged Collateral, in an amount
individually or in the aggregate in excess of $250,000, such Pledgor shall promptly (and in any
event within 5 Business Days of becoming a beneficiary thereunder) notify the Collateral Agent
thereof and such Pledgor shall, at the reasonable request of the Collateral Agent, pursuant to an
agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) arrange
for the issuer and any confirmer or other nominated person of such Letter of Credit to consent to
an assignment to the Collateral Agent of the proceeds of any drawing under the Letter of Credit or
(ii) arrange for the Collateral Agent to become the transferee beneficiary of such Letter of
Credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under
the Letter of Credit are to be applied as provided in the Credit Agreement.

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     (h) Commercial Tort Claims. As of the date hereof, each Pledgor hereby represents and
warrants that it holds no Commercial Tort Claims having a value reasonably believed by the Pledgors
to be, individually or in the aggregate, in excess of $250,000, other than those (if any) listed on
Schedule 15 to the Perfection Certificate. If any Pledgor shall at any time hold or acquire a
Commercial Tort Claim having a value reasonably believed by the Pledgors to be, individually or in
the aggregate, in excess of $50,000, such Pledgor shall promptly (and in any event within 5
Business Days of acquiring such Commercial Tort Claim) notify the Collateral Agent in a writing
signed by such Pledgor of the brief details thereof and grant to the Collateral Agent in such
writing a security interest therein and in the Proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory to the Collateral
Agent.

     (i) Pledged Collateral in the Possession of a Third Party. If any Equipment or
Inventory (other than Equipment or Inventory leased to a customer in the ordinary course of
business) is in possession or control of any third party, including any warehouseman, landlord,
lessor, bailee or agent, or any Key Location, the Pledgors shall notify the Collateral Agent
thereof and notify the third party of the Collateral Agent’s security interest therein and obtain
an acknowledgment (a “Bailee Letter”) from such third party that (i) it is holding the
Equipment and/or Inventory, as applicable, for the benefit of the Collateral Agent and (ii) such
third party will comply with instructions from the Collateral Agent with respect to such Equipment
and/or Inventory, as applicable, without further consent of any Pledgors.

     SECTION 3.5 Joinder of Additional Pledgors. The Pledgors shall cause each Subsidiary of a Loan Party
which, after the date hereof, shall be required to pledge any or all of its assets to the
Collateral Agent for the benefit of the Secured Parties pursuant to the Credit Agreement, (a) to
execute and deliver to the Collateral Agent (i) a Joinder Agreement within 30 days after the date
on which it was acquired or created and (ii) a Perfection Certificate within 30 days after the date
on which it was acquired or created and/or (b) in the case of a Subsidiary organized outside of the
United States required to pledge any assets to the Collateral Agent, to execute and deliver such
documentation as the Collateral Agent shall reasonably request and, in each case, upon such
execution and delivery by the applicable Subsidiary, such Subsidiary shall constitute a “Guarantor”
and a “Pledgor” for all purposes hereunder with the same force and effect as if originally named as
a Guarantor and Pledgor herein. The execution and delivery of such Joinder Agreement shall not
require the consent of any other Pledgor hereunder. The rights and obligations of each Pledgor
hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor
and Pledgor as a party to this Agreement or any other Loan Document.

     SECTION 3.6 Supplements; Further Assurances. Each Pledgor shall take such further actions, and execute
and deliver to the Collateral Agent such additional assignments, agreements, supplements, powers
and instruments, as the Collateral Agent may in its reasonable judgment deem necessary, wherever
required by applicable Legal Requirements, in order to perfect, preserve and protect the security
interest in the Pledged Collateral as provided herein and the rights and interests granted to the
Collateral Agent hereunder, to carry into effect the purposes hereof or better to assure and
confirm unto the
Collateral Agent the Pledged Collateral or permit the Collateral Agent to exercise and enforce its
rights, powers and remedies hereunder with respect to any Pledged Collateral. Without limiting the
generality of the foregoing, each

19

 

Pledgor shall make, execute, endorse, acknowledge, file or refile
and/or deliver to the Collateral Agent from time to time upon its reasonable request such lists,
descriptions and designations of the Pledged Collateral, copies of warehouse receipts, receipts in
the nature of warehouse receipts, bills of lading, documents of title, vouchers, invoices,
schedules, confirmatory assignments, supplements, additional security agreements, conveyances,
financing statements, transfer endorsements, powers of attorney, certificates, reports and other
assurances or instruments as the Collateral Agent shall reasonably request. If an Event of Default
has occurred and is continuing, the Collateral Agent may institute and maintain, in its own name or
in the name of any Pledgor, such suits and proceedings as the Collateral Agent may be advised by
counsel as necessary or expedient to prevent any impairment of the security interest in any Pledged
Collateral or the perfection or priority thereof. If (x) an Event of Default has occurred and is
continuing or (y) a landlord of any Pledgor shall provide notice of default under or termination of
any lease to which a Pledgor is a party, if directed by the Collateral Agent, such Pledgor shall
use commercially reasonable efforts to cause such landlord to agree (in a writing addressed to the
Collateral Agent) to extend the time period provided by such landlord for the removal of Pledged
Collateral from the leased premises for a period, and otherwise on terms and conditions, reasonably
satisfactory to the Collateral Agent; provided that, in connection therewith, no Pledgor shall
agree, directly or indirectly, with any landlord to abandon any Pledged Collateral or waive or
limit such Pledgor’s rights in any Pledged Collateral. All of the foregoing shall be at the sole
cost and expense of the Pledgors.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Each Pledgor represents, warrants and covenants as follows:

     SECTION 4.1 Title. Such Pledgor has good and marketable title in its Pledge Collateral and, except for
the Lien and security interest granted to the Collateral Agent for the ratable benefit of the
Secured Parties pursuant to this Agreement and Permitted Liens, such Pledgor owns (or either owns
or has a License to, in the case of Intellectual Property) and, as to Pledged Collateral acquired
by it from time to time after the date hereof, will either own or hold a License to the rights in
each item of Pledged Collateral pledged by it hereunder free and clear of any and all Liens or
claims of others (except Permitted Liens). Such Pledgor has not filed, nor authorized any third
party to file a financing statement, or other public notice with respect to all or any part of the
Pledged Collateral on file or of record in any public office, except such as have been filed in
favor of the Collateral Agent pursuant to this Agreement or as are permitted by the Credit
Agreement or otherwise relate to Permitted Liens. No person other than any Pledgor or the
Collateral Agent has, or will have, control or possession of all or any part of the Pledged
Collateral, except as expressly permitted by the Loan Documents.

     SECTION 4.2 Validity of Security Interest. The security interest in and Lien on the Pledged Collateral granted to the Collateral Agent for
the ratable benefit of the Secured Parties hereunder constitutes (a) a legal and valid security
interest in and Lien on all the Pledged Collateral securing the payment and performance in full of
the Secured Obligations, and (b) subject to the filings and other actions described in Schedule
1 hereto, a valid, enforceable, and except to the extent otherwise expressly permitted under
Article III hereof, perfected first

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priority security interest (other than Permitted Liens) in all
the Pledged Collateral. The security interest and Lien granted to the Collateral Agent for the
ratable benefit of the Secured Parties pursuant to this Agreement in and on the Pledged Collateral
will at all times constitute a valid, enforceable, and except to the extent otherwise expressly
permitted under Article III, perfected, continuing first priority security interest therein,
subject only to Permitted Liens.

     SECTION 4.3 Defense of Claims; Transferability of Pledged Collateral. Each Pledgor shall, at its own
cost and expense, use commercially reasonable efforts to defend title to the Pledged Collateral
pledged by it hereunder and the security interest therein granted to the Collateral Agent and the
priority thereof (subject to Permitted Liens) required hereunder against all claims and demands of
all persons, at its own cost and expense, at any time claiming any interest therein adverse to the
Collateral Agent or any other Secured Party. There is no agreement that restricts the
transferability of any material portion of the Pledged Collateral or otherwise materially impairs
or conflicts with any Pledgor’s obligations or the rights of the Collateral Agent or any other
Secured Party hereunder or any other Loan Document, and the Pledgors shall not enter into any
agreement or take any other action that would restrict the transferability of any material portion
of the Pledged Collateral or otherwise materially impair or conflict with any Pledgor’s obligations
or the rights of the Collateral Agent or any other Secured Party hereunder or any other Loan
Document.

     SECTION 4.4 Other Financing Statements. No Pledgor has filed, nor authorized any third party to file
(nor will there be) any valid or effective financing statement (or similar statement or instrument
of registration under the law of any jurisdiction) covering or purporting to cover any interest of
any kind in the Pledged Collateral other than financing statements and other statements and
instruments filed in favor of the Collateral Agent relating to this Agreement or relating to
Permitted Liens. So long as any of the Secured Obligations remain unpaid and unperformed, no
Pledgor shall execute, authorize or permit to be filed in any public office any financing statement
(or similar statement or instrument of registration under the law of any jurisdiction) relating to
any Pledged Collateral, except financing statements and other statements and instruments filed or
to be filed in respect of and covering the security interests granted by such Pledgor to the
holder(s) of Permitted Liens.

     SECTION 4.5 Chief Executive Office; Change of Name; Jurisdiction of Organization, etc. Such Pledgor
shall (i) unless it shall have given the Collateral Agent not less than 30 days’ prior written
notice (in the form of an Officers’ Certificate), not change its name, identity, legal structure
(whether by merger, consolidation, change in corporate form or otherwise), type of organization or
jurisdiction of organization or organizational identification number if it has one
and (ii) take all actions necessary or advisable to maintain the continuous validity, perfection
and the same or better priority (subject to Permitted Liens) of the Collateral Agent’s security
interest in the Pledged Collateral granted or intended to be granted hereunder, which in the case
of any merger or other change in organizational structure shall include delivering a written notice
(in the form of an Officers’ Certificate) upon completion of such merger or other change in
organizational structure confirming the grant of the security interest under this Agreement.
Unless it shall have given the Collateral Agent prior written notice (in the form of an Officers’
Certificate), such Pledgor shall not change its chief executive office, place of business or its
mailing address. If such Pledgor does not have an organizational identification number and later
obtains one, such Pledgor shall forthwith notify the Collateral Agent in writing

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of such
organizational identification number. The Collateral Agent may rely on opinions of counsel as to
whether any or all UCC financing statements of the Pledgors need to be amended as a result of any
of the changes described in this Section 4.5. If any Pledgor fails to provide information
to the Collateral Agent about such changes on a timely basis, the Collateral Agent shall not be
liable or responsible to any party for any failure to maintain a valid, enforceable and perfected
security interest with the priority required hereunder in such Pledgor’s property constituting
Pledged Collateral, for which the Collateral Agent needed to have information relating to such
changes. The Collateral Agent shall have no duty to inquire about such changes if any Pledgor does
not inform the Collateral Agent of such changes, the parties acknowledging and agreeing that it
would not be feasible or practical for the Collateral Agent to search for information on such
changes if such information is not provided by any Pledgor.

     SECTION 4.6 Location of Inventory and Equipment. As of the date hereof, all Equipment and Inventory of
such Pledgor, individually or in the aggregate with a fair market value in excess of $250,000, is
located at its chief executive office or such other location listed on Schedule 2(a), 2(b), 2(c) or
2(d) to the Perfection Certificate. Such Pledgor shall not move any Equipment or Inventory, with a
fair market value individually or in the aggregate in excess of $250,000, to any location other
than (x) its chief executive office, (y) any other location listed on Schedule 2(a), 2(b), 2(c) or
2(d) to the Perfection Certificate or (z) any other location within the continental United States
provided that, in each case the requirements of Section 3.4(i) are satisfied with respect
to such location, until it shall have given the Collateral Agent not less than 30 days’ prior
written notice, or such shorter period within which the requirements set forth in this Section
4.6 are satisfied, but in any event, not less than 10 days’ prior written notice, (in the form
of an Officers’ Certificate) of its intention so to do, clearly describing such new location within
the continental United States and providing such other information in connection therewith as the
Collateral Agent may reasonably request. Notwithstanding the foregoing, with respect to any
location at which Equipment or Inventory, with a fair market value individually or in the aggregate
in excess of $250,000, such Pledgor shall have taken all action reasonably satisfactory to the
Collateral Agent to maintain the perfection and priority (subject to Permitted Liens) of the
security interest of the Collateral Agent in the Pledged Collateral intended to be granted hereby,
including, to the extent required under Section 3.4(i), obtaining waivers of landlord’s or
warehousemen’s and/or bailee’s liens with respect to such new location, if applicable, and if
reasonably requested by the Collateral Agent. Such Pledgor agrees to provide the Collateral Agent
with prompt notice following the movement of any Equipment or Inventory, individually or in the
aggregate with a fair market value in excess of $250,000, to any location other than one that is
listed in Schedule 2(a), 2(b), 2(c) or
2(d) to the Perfection Certificate or a location within the continental United States in respect of
which the requirements of Section 3.4(i) have been satisfied.

     SECTION 4.7 Corporate Names; Prior Transactions. Except as set forth in Schedules 1(a) and (b) to the
Perfection Certificate, such Pledgor has not, during the past five years, been known by or used any
other corporate or fictitious name or been a party to any merger or consolidation, or acquired all
or substantially all of the assets of any person.

     SECTION 4.8 Due Authorization and Issuance. All of the Initial Pledged Shares have been, and to the
extent any Pledged Shares are hereafter issued, such Pledged Shares will be, upon such issuance,
duly authorized, validly issued and fully paid and non-assessable. All of

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the Initial Pledged
Interests have been, and to the extent any Pledged Interests are hereafter issued, such Pledged
Interests will be, fully paid for, and there is, or will be with respect to any Pledged Interests
hereinafter issued will be, no amount or other obligation owing by any Pledgor to any issuer of the
Initial Pledged Interests or any hereinafter issued Pledged Interests, as applicable, in exchange
for or in connection with the issuance of the Initial Pledged Interests or such Pledge Interests
hereinafter issued or any Pledgor’s status as a partner or a member of any issuer of the Initial
Pledged Interests.

     SECTION 4.9 Consents, etc. No consent of any party (including equityholders or creditors of such
Pledgor) and no consent, authorization, approval, license or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body or other person is required (A) for the
exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or
(B) for the exercise by the Collateral Agent of the remedies in respect of the Pledged Collateral
pursuant to this Agreement. In the event that the Collateral Agent desires to exercise any
remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement and
determines it necessary to obtain any approvals or consents of any Governmental Authority or
regulatory body or any other person therefor, then, upon the reasonable request of the Collateral
Agent, each Pledgor agrees to use commercially reasonable efforts to assist and aid the Collateral
Agent to obtain as soon as practicable any necessary approvals or consents for the exercise of any
such remedies, rights and powers.

     SECTION 4.10 Pledged Collateral. All information set forth herein, including the schedules annexed
hereto, and all information contained in any documents, schedules and lists heretofore delivered to
any Secured Party, including the Perfection Certificate and the schedules thereto, in connection
with this Agreement, in each case, relating to the Pledged Collateral, is accurate and complete in
all material respects.

     SECTION 4.11 Insurance. In the event that the proceeds of any insurance claim are paid after the
Collateral Agent has exercised its right to foreclose after an Event of Default, such Net Cash
Proceeds shall be paid to
the Collateral Agent to satisfy any deficiency remaining after such foreclosure. The Collateral
Agent shall retain its interest in the insurance policies and coverages required to be maintained
pursuant to the Credit Agreement during any redemption period.

     SECTION 4.12 Payment of Taxes; Compliance with Legal Requirements; Contesting Liens; Charges. Each
Pledgor may at its own expense contest the validity, amount or applicability of any Charges so long
as the contest thereof shall be conducted in accordance with, and permitted pursuant to the
provisions of, the Credit Agreement. Notwithstanding the foregoing sentence, (i) no contest of any
such obligation may be pursued by such Pledgor if such contest would expose the Collateral Agent or
any other Secured Party to (A) any possible criminal liability or (B) any civil liability for
failure to comply with such obligations unless such Pledgor shall have furnished, if reasonably
requested by the Collateral Agent or any other Secured Party, a bond or other security therefor
reasonably satisfactory to the Collateral Agent, or such Secured Party, as the case may be, and
(ii) if at any time payment or performance of any obligation contested by such Pledgor pursuant to
this Section 4.12 shall become necessary to prevent the imposition of remedies because of
non-payment, such Pledgor shall pay or perform

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the same in sufficient time to prevent the
imposition of remedies in respect of such default or prospective default.

     SECTION 4.13 Access to Pledged Collateral, Books and Records; Other Information. Each Pledgor shall
permit representatives of the Collateral Agent upon reasonable notice to visit and inspect any of
its assets or properties, including to conduct any environmental assessments, sampling, testing or
monitoring of the Mortgaged Property, and examine and make abstracts from any of its books and
records (including insurance policies) at any reasonable time and upon reasonable notice. Such
Pledgor shall, at any and all times, within a reasonable time after written request by the
Collateral Agent, furnish or cause to be furnished to the Collateral Agent, in such manner and in
such detail as may be reasonably requested by the Collateral Agent, additional information with
respect to the Pledged Collateral. If a Default occurs and is continuing, the Collateral Agent
shall have the right, but not the obligation, to access any Mortgaged Property to undertake any
Response that the Collateral Agent in its reasonable discretion deems appropriate at the reasonable
cost and expense of the Pledgors.

ARTICLE V

CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

     SECTION 5.1 Pledge of Additional Securities Collateral. Each Pledgor shall, upon obtaining any Pledged
Securities or intercompany notes of any person (other than Excluded Property), accept the same in
trust for the benefit of the Collateral Agent and promptly (and in any event within 3 Business Days
thereafter) deliver to the Collateral Agent a Securities Pledge Amendment, duly executed by such
Pledgor, and the certificates and other documents required under Section 3.1 and
Section 3.2 hereof in respect of the additional Pledged Securities or intercompany notes
that are to be pledged pursuant to this Agreement, and confirming the attachment of the Lien hereby
created on and in respect of such
additional Pledged Securities or intercompany notes. Each Pledgor hereby authorizes the Collateral
Agent to attach each Securities Pledge Amendment to this Agreement and agrees that all Pledged
Securities or intercompany notes listed on any Securities Pledge Amendment delivered to the
Collateral Agent shall for all purposes hereunder be considered Pledged Collateral.

     SECTION 5.2 Voting Rights; Distributions; etc..

               (i) So long as no Event of Default shall have occurred and be continuing:

          (A) each Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Securities Collateral or any part thereof for any purpose not
inconsistent with the terms or purposes of this Agreement, any other Loan Document or any
other document evidencing the Secured Obligations; provided, however, that no Pledgor shall
in any event exercise such rights in any manner that is disadvantageous to any Agent or
Lender in any material respect; and

          (B) each Pledgor shall be entitled to receive and retain, and to utilize free and clear
of the Lien hereof, any and all Distributions, but only if and to the

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extent made in
accordance with the provisions of the Credit Agreement; provided, however, that any and all
such Distributions consisting of rights or interests in the form of Pledged Securities or
Intercompany Notes shall promptly (and in any event within 5 Business Days after receipt
thereof) be delivered to the Collateral Agent to hold as Pledged Collateral and shall, if
received by any Pledgor, be received in trust for the benefit of the Collateral Agent, be
segregated from the other property or funds of such Pledgor and be forthwith delivered to
the Collateral Agent as Pledged Collateral in the same form as so received (with any
necessary or reasonably requested endorsement).

               (ii) Upon the occurrence and during the continuance of any Event of Default, the Collateral
Agent may implement either or both of the following remedies, effective 5 Business Days after
written notice of such implementation is provided to the Pledgors:

               (A) all rights of each Pledgor to exercise the voting and other consensual rights it
would otherwise be entitled to exercise pursuant to Section 5.2(i)(A) shall cease,
and all such rights shall thereupon become vested in the Collateral Agent, which shall
thereupon have the sole right to exercise such voting and other consensual rights until the
applicable Event of Default is no longer continuing, in which case the Collateral Agent’s
rights under this Section 5.2(ii)(A) shall cease to be effective, subject to
revesting in the event of a subsequent Event of Default that is continuing; and

               (B) all rights of each Pledgor to receive Distributions that it would otherwise be
authorized to receive and retain pursuant to Section 5.2(i)(B) without further
action shall cease and all such rights shall thereupon become vested in the Collateral
Agent, which shall thereupon have the sole right to receive and hold as Pledged Collateral
such Distributions until the applicable Event of Default is no longer
continuing, in which case the Collateral Agent’s rights under this Section
5.2(ii)(B) shall cease to be effective, subject to revesting in the event of a
subsequent Event of Default that is continuing.

               (iii) Each Pledgor shall, at its sole cost and expense, from time to time execute and deliver
to the Collateral Agent appropriate instruments as the Collateral Agent may reasonably request in
order to permit the Collateral Agent to exercise the voting and other rights which it may be
entitled to exercise pursuant to Section 5.2(ii)(A) and to receive all Distributions which
it may be entitled to receive under Section 5.2(ii)(B).

               (iv) All Distributions that are received by any Pledgor contrary to the provisions of
Section 5.2(ii)(B) shall be received in trust for the benefit of the Collateral Agent,
shall be segregated from the other funds of such Pledgor and shall immediately be paid over to the
Collateral Agent as Pledged Collateral in the same form as so received (with any necessary or
reasonably requested endorsement).

     SECTION 5.3 Default. As of the date hereof, such Pledgor is not in default in the payment of any
portion of any mandatory capital contribution, if any, required to be made under any agreement to
which such Pledgor is a party relating to the Pledged Securities pledged by it, and such Pledgor is
not in violation of any other provisions of any such agreement to which such Pledgor is a party, or
otherwise in default or violation thereunder. As of the date hereof, no

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Securities Collateral
pledged by such Pledgor is subject to any defense, offset or counterclaim, nor have any of the
foregoing been asserted or alleged against such Pledgor by any person with respect thereto, and as
of the date hereof, there are no certificates, instruments, documents or other writings (other than
the Organizational Documents of such Pledgor and certificates, if any, delivered to the Collateral
Agent) which evidence any Pledged Securities of such Pledgor.

     SECTION 5.4 Certain Agreements of Pledgors as Issuers and Holders of Equity Interests.

               (i) In the case of each Pledgor that is an issuer of Securities Collateral, such Pledgor
agrees to be bound by the terms of this Agreement relating to the Securities Collateral issued by
it and will comply with such terms insofar as such terms are applicable to it.

               (ii) In the case of each Pledgor that is a partner, member or holder of any Equity Interests
in a partnership, limited liability company or other entity, such Pledgor hereby consents to the
extent required by the applicable Organizational Documents of such Pledgor to the pledge by each
other Pledgor, pursuant to the terms hereof, of the Pledged Interests in such partnership, limited
liability company or other entity and, upon the occurrence and during the continuance of an Event
of Default, to the transfer of such Pledged Interests to the Collateral Agent or its nominee and to
the substitution of the Collateral Agent or its nominee as a substituted partner, member or holder
of Equity Interests in such partnership, limited liability company or other entity with all the
rights, powers and duties of a general partner, a limited partner, member or holder of Equity
Interests, as the case may be.

ARTICLE VI

CERTAIN PROVISIONS CONCERNING INTELLECTUAL

PROPERTY COLLATERAL

     SECTION 6.1 Representations and Warranties. The representations and warranties set forth in
Section 3.06 of the Credit Agreement are hereby incorporated herein by reference and made a
part hereof.

     SECTION 6.2 Grant of License. For the purpose of enabling the Collateral Agent, during the continuance
of an Event of Default, to exercise rights and remedies under Article VIII hereof at such
time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and
for no other purpose, each Pledgor hereby grants to the Collateral Agent, to the extent licensable,
exercisable solely upon the occurrence and during the continuance of any Event of Default, an
irrevocable, non-exclusive worldwide license (exercisable without payment of royalty or other
compensation to such Pledgor) to use, assign, license, sublicense or otherwise dispose of the
Intellectual Property Collateral now owned or hereafter acquired by such Pledgor (excluding, for
the avoidance of doubt, any License that by its terms is prohibited from being so licensed to the
extent constituting Excluded Property), wherever the same may be located. Such license shall
include access to all media in which any of the licensed items may be recorded or stored and to all
computer programs used for the compilation or printout hereof.

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     SECTION 6.3 Registration. Except pursuant to material licenses and other user agreement entered into
by any Pledgor in the ordinary course of business, on and as of the date hereof (i) each Pledgor
owns and/or possesses the right to use, and has done nothing to authorize or enable any other
person to use, any Copyright, Patent or Trademark listed on Schedules 14(a)-(c) to the Perfection
Certificate, and (ii) all registrations listed on Schedules 14(a)-(c) to the Perfection Certificate
are valid and in full force and effect.

     SECTION 6.4 No Violations or Proceedings. On and as of the date hereof, (i) there is no material
violation by others of any right of such Pledgor with respect to any Copyright, Patent or Trademark
listed on Schedules 14(a)-(c) to the Perfection Certificate, respectively, pledged by it under the
name of such Pledgor, (ii) such Pledgor is not infringing upon any Copyright, Patent or Trademark
of any other person other than such infringement that, individually or in the aggregate, would not
(and could not reasonably be expected to) result in a material adverse effect on the value or
utility of the Intellectual Property Collateral or any portion thereof material to the use and
operation of the Pledged Collateral or the Mortgaged Property and (iii) no proceedings have been
instituted or are pending against such Pledgor or, to such Pledgor’s knowledge, threatened, and no
such claim against such Pledgor has been received by such Pledgor since December 31, 2009 alleging
any such violation.

     SECTION 6.5 Protection of Collateral Agent’s Security. On a continuing basis, each Pledgor shall, at
its sole cost and expense, (i) promptly following its becoming aware thereof, notify the Collateral
Agent of (A) any materially adverse determination in any proceeding in the United States Patent and
Trademark Office or the United States Copyright Office with respect to any material Patent,
Trademark or Copyright material to the use and operation of the Pledged Collateral or any Mortgage
Property (if any) or (B) the institution of any proceeding or any adverse determination in any
federal, state or local court or administrative body regarding such Pledgor’s claim of ownership in
or right to use any of such Intellectual Property Collateral, its right to register such
Intellectual Property Collateral or its right to keep and maintain such registration in full force
and effect, (ii) maintain and protect such Intellectual Property Collateral as presently used and
operated and as contemplated by the Credit Agreement, (iii) not permit to lapse or become abandoned
any such Intellectual Property Collateral as presently used and operated and as contemplated by the
Credit Agreement, and not settle or compromise any pending or future litigation or administrative
proceeding with respect to such Intellectual Property Collateral without the prior written consent
of the Collateral Agent, (iv) upon such Pledgor obtaining knowledge thereof, promptly notify the
Collateral Agent in writing of any event that may be reasonably expected to materially and
adversely affect the value or utility of such Intellectual Property Collateral, the ability of such
Pledgor or the Collateral Agent to dispose of such Intellectual Property Collateral or any portion
thereof or the rights and remedies of the Collateral Agent in relation thereto, including a levy or
written threat of levy or any legal process against such Intellectual Property Collateral owned or
licensed by such Pledgor or any portion thereof, (v) not license such Intellectual Property
Collateral other than licenses entered into by such Pledgor in, or incidental to, the ordinary
course of business, or amend or permit the amendment of any of the licenses in a manner that
materially and adversely affects the right to receive payments thereunder, or in any manner that
would materially impair the value of such Intellectual Property Collateral or the Lien on and
security interest in such Intellectual Property Collateral intended to be granted to the Collateral
Agent for the ratable benefit of the Secured Parties, without the consent of the Collateral Agent,
(vi) diligently keep adequate records

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respecting such Intellectual Property Collateral and (vii)
furnish to the Collateral Agent from time to time upon the Collateral Agent’s request therefor
reasonably detailed statements and amended schedules further identifying and describing such
Intellectual Property Collateral and such other materials evidencing or reports pertaining to such
Intellectual Property Collateral as the Collateral Agent may from time to time request.

     SECTION 6.6 After-Acquired Property. If any Pledgor shall, at any time before the Secured Obligations
have been paid and performed in full (other than contingent indemnification obligations that,
pursuant to the provisions of the Credit Agreement or the Security Documents, survive the
termination thereof), (i) obtain any rights to any additional Intellectual Property Collateral
material to the use and operation of the Pledged Collateral or any Mortgaged Property, or (ii)
become entitled to the benefit of any such additional Intellectual Property Collateral or any
renewal or extension thereof, including any reissue, division, continuation, or
continuation-in-part of any such Intellectual Property Collateral, or any improvement on any such
Intellectual Property Collateral, the provisions hereof shall automatically apply thereto and any
such item enumerated in clause (i) or (ii) of this sentence with respect to such Pledgor shall
automatically constitute Intellectual Property
Collateral if such would have constituted Intellectual Property Collateral at the time of execution
hereof and be subject to the Lien and security interest created by this Agreement without further
action by any party (excluding any Intellectual Property Collateral that constitutes Excluded
Property). Each Pledgor shall promptly (i) provide to the Collateral Agent written notice of any
of the foregoing and (ii) confirm the attachment of the Lien and security interest created by this
Agreement to any rights described in clauses (i) and (ii) of the immediately preceding sentence of
this Section 6.6 by execution of an instrument in form reasonably acceptable to the
Collateral Agent and the filing of any instruments or statements as shall be reasonably necessary
or reasonably requested by the Collateral Agent to preserve, protect or perfect the Collateral
Agent’s security interest in such Intellectual Property Collateral to the extent such security
interest in such Intellectual Property Collateral may be perfected under applicable Legal
Requirements, including the filing of a security agreement or amendments or assignments thereto
with the United States Patent and Trademark Office or United States Copyright Office. Further,
each Pledgor authorizes the Collateral Agent to modify this Agreement by amending Schedules
14(a)-(c) to the Perfection Certificate to include any Intellectual Property Collateral acquired or
arising after the date hereof of such Pledgor.

     SECTION 6.7 Litigation. Unless there shall occur and be continuing any Event of Default, each Pledgor
shall have the right to commence and prosecute in its own name, as the party in interest, for its
own benefit and at the sole cost and expense of the Pledgors, such applications for protection of
the Intellectual Property Collateral and suits, proceedings or other actions to prevent the
infringement, counterfeiting, unfair competition, dilution, diminution in value or other damage as
are necessary to protect the Intellectual Property Collateral. Upon the occurrence and during the
continuance of any Event of Default, the Collateral Agent shall have the right, but shall in no way
be obligated, to file applications for protection of the Intellectual Property Collateral and/or
bring suit in the name of any Pledgor, the Collateral Agent or the Secured Parties to enforce the
Intellectual Property Collateral and any license thereunder. In the event of such suit, each
Pledgor shall, at the reasonable request of the Collateral Agent, do any and all lawful acts and
execute any and all documents reasonably requested by the Collateral Agent in aid of such
enforcement and the Pledgors shall promptly reimburse and indemnify the Collateral Agent for all
reasonable costs and expenses incurred by the Collateral Agent in the

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exercise of its rights under
this Section 6.7 in accordance with Section 11.03 of the Credit Agreement. In the
event that the Collateral Agent shall elect not to bring such suit to enforce the Intellectual
Property Collateral, each Pledgor agrees, at the reasonable request of the Collateral Agent, to
take all actions necessary, whether by suit, proceeding or other action, to prevent the
infringement, counterfeiting, unfair competition, dilution, diminution in value of or other damage
to any of the Intellectual Property Collateral by others and for that purpose agrees to diligently
maintain any suit, proceeding or other action against any person so infringing necessary to prevent
such infringement.

     SECTION 6.8 Intent-to-Use Trademark and Service Mark Applications. In connection with any
intent-to-use trademark or service mark applications whether listed on Schedule 14(b) to the
Perfection Certificate or otherwise, the Pledgors shall file a bona fide statement of use and shall
take such other actions or steps as shall be required by the United States Patent and Trademark
Office, to entitle such application to registration within 10 Business
Days following the date of first use in commerce of the mark that is the subject of such
application. Upon acceptance of such bona fide statement of use by the United States Patent and
Trademark Office, such application shall automatically become subject to the security interest
granted herein. The Pledgors shall execute any further documents and instruments as the Collateral
Agent reasonably may deem necessary or appropriate to confirm, implement, or enforce the Collateral
Agent’s security interest in such applications. If the Pledgors fail to execute such further
documents and instruments within 5 Business Days of presentment, the Collateral Agent may, in the
name of, and on behalf of, the Pledgors, execute such documents and instruments and make
appropriate disposition of same, and the Pledgors hereby irrevocably appoint the Collateral Agent
as their lawful attorney-in-fact with full power to do so. The foregoing power of attorney is
coupled with an interest and such appointment shall be irrevocable for the term hereof.

ARTICLE VII

CERTAIN PROVISIONS CONCERNING ACCOUNTS

     SECTION 7.1 Special Representation and Warranties. As of the time when each of its Accounts arises,
each Pledgor shall be deemed to have represented and warranted that such Account and all records,
papers and documents relating thereto (i) are genuine and correct and in all material respects what
they purport to be, subject to ordinary course accounts receivable adjustments and refunds, (ii) to
the Pledgor’s knowledge, represent the legal, valid and binding obligation of the account debtor,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors’ rights generally or by equitable principles
relating to enforceability, evidencing indebtedness unpaid and owed by such account debtor, arising
out of the performance of labor or services or the sale, lease, license, assignment or other
disposition and delivery of the goods or other property listed therein or out of an advance or a
loan, (iii) will, in the case of an Account, except for the original or duplicate original invoice
sent to the applicable purchaser evidencing such purchaser’s account, be the only original writing
evidencing and embodying such obligation of the account debtor named therein and (iv) are in all
material respects in compliance and conform with all applicable material Legal Requirements.

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     SECTION 7.2 Maintenance of Records. Each Pledgor shall keep and maintain at its own cost and expense
complete records of each Account, in a manner consistent with its customary business practice,
including records of all payments received, all credits granted thereon, all merchandise returned
and all other documentation relating thereto. Each Pledgor shall, at such Pledgor’s sole cost and
expense, upon the Collateral Agent’s demand made at any time after the occurrence and during the
continuance of any Event of Default, deliver all tangible evidence of Accounts, including all
documents evidencing Accounts and any books and records relating thereto to the Collateral Agent or
to its representatives (copies of which evidence and books and records may be retained by such
Pledgor). Upon the occurrence and during the continuance of any Event of Default, the Collateral
Agent may transfer a full and complete copy of any Pledgor’s books, records, credit information,
reports, memoranda and all other writings relating to the Accounts to and for the
use by any person that has acquired or is contemplating acquisition of an interest in the Accounts
or the Collateral Agent’s security interest therein without the consent of any Pledgor, but subject
at all times to Section 11.12 of the Credit Agreement.

     SECTION 7.3 Legend. At the reasonable request of the Collateral Agent and in form and manner
reasonably satisfactory to the Collateral Agent, at any time after the occurrence and during the
continuance of any Event of Default, each Pledgor shall legend the Accounts to the extent
represented or evidenced by a written instrument and the other books, records and documents of such
Pledgor evidencing or pertaining to the Accounts with an appropriate reference to the fact that (i)
the Accounts have been assigned for collateral purposes to the Collateral Agent for the ratable
benefit of the Secured Parties and that the Collateral Agent has a security interest therein and
(ii) with respect to Medicare/Medicaid Account Debtors, each Pledgor has waived any and all
defenses and counterclaims it may have or could interpose in any such action or procedure brought
by the Collateral Agent or any Secured Party to obtain a court order recognizing the collateral
assignment or security interest and Lien of the Collateral Agent pursuant to the Security Documents
in and to any Account or other Pledged Collateral and that the Collateral Agent and/or the Secured
Parties may seek to obtain (x) the consent of the applicable Medicare/Medicaid Account Debtor(s) to
recognize, or (y) a court order recognizing, the collateral assignment or security interest and
Lien of the Collateral Agent in and to all Accounts and other Pledged Collateral payable by
Medicare/Medicaid Account Debtors.

     SECTION 7.4 Modification of Terms, etc. No Pledgor shall rescind or cancel any obligations evidenced
by any Account or modify any term thereof or make any adjustment with respect thereto except in the
ordinary course of business, or extend or renew any such obligations except in the ordinary course
of business or compromise or settle any dispute, claim, suit or legal proceeding relating thereto
or sell any Account or interest therein except in the ordinary course of business; in each case,
without the prior written consent of the Collateral Agent.

     SECTION 7.5 Collection. Each Pledgor shall cause to be collected from the account debtor of each of
the Accounts, as and when due in the ordinary course of business and consistent with its customary
business practice (including Accounts that are delinquent, such Accounts to be collected in
accordance with generally accepted commercial collection procedures), any and all amounts owing
under or on account of such Account, and apply forthwith upon receipt thereof all such amounts as
are so collected to the outstanding balance of such Account, except that any Pledgor may, with
respect to an Account, allow in the ordinary

30

 

course of business (i) accounts receivable adjustments
or refunds and (ii) such extensions of time to pay amounts due in respect of Accounts and such
other modifications of payment terms or settlements in respect of Accounts as shall be commercially
reasonable in the circumstances, all in accordance with such Pledgor’s ordinary course of business
consistent with its collection practices as in effect from time to time and in compliance with
applicable Legal Requirements. The costs and expenses (including attorneys’ fees) of collection,
in any case, whether incurred by any Pledgor, the Collateral Agent or any
Secured Party, shall be paid by the Pledgors. Nothing in this Agreement shall prohibit any Pledgor
from writing off bad debt in the ordinary course of business, consistent with its customary
business practice. The Loan Parties acknowledge that the Collateral Management Agreement provides
for the application of all collections on Accounts and reference to such Collateral management is
incorporated herein.

ARTICLE VIII

REMEDIES

     SECTION 8.1 Remedies. Upon the occurrence and during the continuance of any Event of Default, the
Collateral Agent may from time to time exercise in respect of the Pledged Collateral, in addition
to the other rights and remedies provided for herein or otherwise available to it, the following
remedies:

               (i) Personally, or by agents or attorneys, immediately take possession of the Pledged
Collateral or any part thereof, from any Pledgor or any other person who then has possession of any
part thereof with or without notice or process of law (other than Pledged Collateral consisting of
Accounts owed or owing by Medicare/Medicaid Account Debtors to any Pledgor, absent a court order or
compliance with applicable Legal Requirements), and for that purpose, subject to Section 5.07 of
the Credit Agreement, may enter upon any Pledgor’s premises where any of the Pledged Collateral is
located, remove such Pledged Collateral, remain present at such premises to receive copies of all
communications and remittances relating to the Pledged Collateral and use in connection with such
removal and possession any and all services, supplies, aids and other facilities of any Pledgor;

               (ii) Demand, sue for, collect or receive any money or property at any time payable or
receivable in respect of the Pledged Collateral including instructing the obligor or obligors on
any agreement, instrument or other obligation constituting part of the Pledged Collateral to make
any payment required by the terms of such agreement, instrument or other obligation directly to the
Collateral Agent (other than Pledged Collateral consisting of Accounts owed or owing by
Medicare/Medicaid Account Debtors to any Pledgor, absent a court order or compliance with
applicable Legal Requirements), and in connection with any of the foregoing, compromise, settle,
extend the time for payment and make other modifications with respect thereto; provided, however,
that in the event that any such payments are made directly to any Pledgor, such Pledgor shall
segregate all amounts received pursuant thereto in trust for the benefit of the Collateral Agent
and shall promptly (but in no event later than one Business Day after receipt thereof) pay such
amounts to the Collateral Agent;

               (iii) Subject to clause (ix) below, Section 8.2 and Section 8.4, sell, assign,
grant a license to use or otherwise liquidate, or direct any Pledgor to sell, assign, grant a

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license to use or otherwise liquidate, any and all investments made in whole or in part with the
Pledged Collateral or any part thereof, and take possession of the proceeds of any such sale,
assignment, license or liquidation;

               (iv) Take possession of the Pledged Collateral or any part thereof, by directing any Pledgor
in writing to deliver the same to the Collateral Agent at any place or places so designated by the
Collateral Agent, in which event such Pledgor shall at its own expense: (A) forthwith cause the
same to be moved to the place or places designated by the Collateral Agent and therewith delivered
to the Collateral Agent, (B) store and keep any Pledged Collateral so delivered to the Collateral
Agent at such place or places pending further action by the Collateral Agent and (C) while the
Pledged Collateral shall be so stored and kept, provide such security and maintenance services as
shall be necessary to protect the same and to preserve and maintain them in good and marketable
condition. Each Pledgor’s obligation to deliver the Pledged Collateral as contemplated in this
Section 8.1(iv) is of the essence hereof. Upon application to a court of equity having
jurisdiction, the Collateral Agent shall be entitled to decree requiring specific performance by
any Pledgor of such obligation;

               (v) Withdraw all moneys, instruments, securities and other property in any bank, financial
securities, deposit or other account of any Pledgor constituting Pledged Collateral (other than
Pledged Collateral consisting of Accounts owed or owing by Medicare/Medicaid Account Debtors to any
Pledgor, absent a court order or compliance with applicable Legal Requirements);

               (vi) To the extent permitted under Section 5.2(ii)(B), retain and apply the
Distributions to the Secured Obligations as provided in Article IX hereof;

               (vii) Exercise any and all rights as beneficial and legal owner of the Pledged Collateral,
including perfecting assignment of and exercising any and all voting, consensual and other rights
and powers with respect to any Pledged Collateral (other than Pledged Collateral consisting of
Accounts owed or owing by Medicare/Medicaid Account Debtors to any Pledgor, absent a court order or
compliance with applicable Legal Requirements);

               (viii) (A) Seek to obtain the consent of the applicable Medicare/Medicaid Account Debtor(s) to
recognize and permit the enforcement of, (B) comply with applicable Health Care Laws necessary for
the recognition and enforcement of, or (C) seek to obtain an Order from a court of competent
jurisdiction recognizing and permitting the enforcement of, the collateral assignment or security
interest and Lien of the Collateral Agent pursuant to the Security Documents in and to all Accounts
and other Pledged Collateral payable by Medicaid/Medicare Account Debtors; and

               (ix) All the rights and remedies of a secured party on default under the UCC (whether or not
the UCC applies to the affected Pledged Collateral) (other than with respect to any Pledged
Collateral consisting of Accounts owed or owing by Medicare/Medicaid Account Debtors to any
Pledgor, absent a court order or compliance with applicable Legal Requirements), and the Collateral
Agent may also in its sole discretion, without notice except as specified in Section 8.2,
sell, assign, transfer or grant a license to use the Pledged Collateral or any part thereof in one
or more parcels at public or private sale, at any exchange, broker’s board

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or at any of the
Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and at such
price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable.
The Collateral Agent or any other Secured Party or any of their respective Affiliates may be the
purchaser, licensee, assignee or recipient of any or all of the
Pledged Collateral at any such sale and shall be entitled, for the purpose of bidding and
making settlement or payment of the purchase price for all or any portion of the Pledged Collateral
sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations owed to
such person as a credit on account of the purchase price of any Pledged Collateral payable by such
person at such sale. Each purchaser, assignee, licensee or recipient at any such sale shall
acquire the property sold, assigned or licensed absolutely free from any claim or right on the part
of any Pledgor, and each Pledgor hereby waives, to the fullest extent permitted by applicable Legal
Requirements, all rights of redemption, stay and/or appraisal that it now has or may at any time in
the future have under any Legal Requirement now existing or hereafter enacted. The Collateral
Agent shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale
having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Each Pledgor hereby waives, to the
fullest extent permitted by applicable Legal Requirements, any claims against the Collateral Agent
arising by reason of the fact that the price at which any Pledged Collateral may have been sold,
assigned or licensed at such a private sale was less than the price which might have been obtained
at a public sale, even if the Collateral Agent accepts the first offer received and does not offer
such Pledged Collateral to more than one offeree.

     SECTION 8.2 Notice of Sale. Each Pledgor acknowledges and agrees that, to the extent notice of sale or
other disposition of Pledged Collateral shall be required by any Legal Requirement, 10 days prior
notice to such Pledgor of the time and place of any public sale or of the time after which any
private sale or other intended disposition is to take place shall be commercially reasonable
notification of such matters unless the Pledged Collateral is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market (in which case no such
prior notice shall be required). No notification need be given to any Pledgor if it has signed,
after the occurrence of an Event of Default, a statement renouncing or modifying any right to
notification of sale or other intended disposition.

     SECTION 8.3 Waiver of Notice and Claims; Other Waivers; Marshalling.

               (i) Each Pledgor hereby waives, to the fullest extent permitted by applicable Legal
Requirements, notice of judicial hearing in connection with the Collateral Agent’s taking
possession or the Collateral Agent’s disposition of any of the Pledged Collateral, including any
and all prior notice and hearing for any prejudgment remedy or remedies and any such right which
such Pledgor would otherwise have under any Legal Requirement, and each Pledgor hereby further
waives, to the fullest extent permitted by applicable Legal Requirements (i) all damages occasioned
by such taking of possession, (ii) all other requirements as to the time, place and terms of sale
or other requirements with respect to the enforcement of the Collateral Agent’s rights hereunder
and (iii) all rights of redemption, appraisal, valuation, stay, extension or moratorium now or
hereafter in force under any applicable Legal Requirements. The Collateral Agent shall not be
liable for any incorrect or improper payment made pursuant to this Article VIII except to
the extent resulting solely from the Collateral Agent’s gross negligence or

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willful misconduct as finally judicially determined by a court of competent jurisdiction. Any sale
of, or the grant of options to purchase, or any other realization upon, any Pledged Collateral
shall operate to divest all right, title, interest, claim and demand, either at law or in equity,
of the applicable Pledgor therein and thereto, and shall be a perpetual bar both at law and in
equity or otherwise against such Pledgor and against any and all persons claiming or attempting to
claim the Pledged Collateral so sold, optioned or realized upon, or any part thereof, from, through
or under such Pledgor.

               (ii) To the maximum extent permitted by applicable Legal Requirements, each Pledgor hereby
waives demand, notice, protest, notice of acceptance of this Agreement, notice of Credit
Extensions, Pledged Collateral received or delivered or any other action taken in reliance hereon
and all other demands and notices of any description.

               (iii) The Collateral Agent shall not be required to marshal any present or future collateral
security (including the Pledged Collateral) for, or other assurances of payment of, the Secured
Obligations or any of them or to resort to such collateral security or other assurances of payment
in any particular order. To the maximum extent permitted by applicable Legal Requirements, (A)
each Pledgor hereby agrees that it will not invoke any Legal Requirement relating to the
marshalling of collateral and (B) hereby irrevocably waives the benefits of all such Legal
Requirements.

               (iv) To the maximum extent permitted by applicable Legal Requirements, each Pledgor hereby
waives any and all defenses and counterclaims it may have or could interpose in any such action or
procedure brought by the Collateral Agent or any other Secured Party to obtain an Order
recognizing, and permitting the enforcement of, the collateral assignment or security interest and
Lien of the Collateral Agent pursuant to the Security Documents in and to any Account or other
Pledged Collateral and acknowledges that the Collateral Agent and/or the Secured Parties may (i)
seek to obtain the consent of the applicable Medicare/Medicaid Account Debtor(s) to recognize, (ii)
comply with any Legal Requirements necessary for the recognition of, or (iii) seek to obtain an
Order recognizing, the collateral assignment or security interest and Lien of the Collateral Agent
pursuant to the Security Documents in and to all Accounts and other Pledged Collateral payable by
Medicare/Medicaid Account Debtors.

     SECTION 8.4 Standards for Exercising Rights and Remedies. To the extent that applicable Legal
Requirements impose duties on the Collateral Agent to exercise remedies in a commercially
reasonable manner, each Pledgor acknowledges and agrees that it is not commercially unreasonable
for the Collateral Agent, in the exercise of such remedies in accordance with all other terms
hereof, (i) to fail to incur expenses reasonably deemed significant by the Collateral Agent to
prepare Pledged Collateral for disposition or otherwise to fail to complete raw material or work in
process into finished goods or other finished products for disposition, (ii) to fail to obtain
third party consents for access to Pledged Collateral to be disposed of, or to obtain or, if not
required by other Legal Requirements, to fail to obtain consents for Governmental Authorities or
third parties for the collection or disposition of Pledged Collateral to be collected or disposed
of, (iii) to fail to exercise collection remedies against account debtors or other persons
obligated on Pledged Collateral or to fail to remove
liens or encumbrances on or any adverse claims against Pledged Collateral, (iv) to exercise

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collection remedies against account debtors and other persons obligated on Pledged Collateral
directly or through the use of collection agencies and other collection specialists, subject to
their compliance with applicable Legal Requirements, (v) to advertise dispositions of Pledged
Collateral through publications or media of general circulation, whether or not the Pledged
Collateral is of a specialized nature, (vi) to contact other persons, whether or not in the same
business as any Pledgor, for expressions of interest in acquiring all or any portion of the Pledged
Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of
Pledged Collateral, whether or not the collateral is of a specialized nature, (viii) to dispose of
Pledged Collateral by utilizing internet sites that provide for the auction of assets of the types
included in the Pledged Collateral or that have the reasonable capability of doing so, or that
match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail
markets, (x) to disclaim or modify disposition warranties, (xi) to purchase insurance or credit
enhancements to insure the Collateral Agent against risks of loss, collection or disposition of
Pledged Collateral or to provide to the Collateral Agent a guaranteed return from the collection or
disposition of Pledged Collateral, or (xii) to the extent deemed appropriate by the Collateral
Agent, to obtain the services of other brokers, investment bankers, consultants and other
professionals to assist the Collateral Agent in the collection or disposition of any of the Pledged
Collateral. The Pledgors acknowledge that the purpose of this Section 8.4 is to provide
non-exhaustive indications of what actions or omissions by the Collateral Agent would fulfill the
Collateral Agent’s duties under the UCC or other Legal Requirement of the State or any other
relevant jurisdiction in the Collateral Agent’s exercise of remedies against the Pledged Collateral
and that other actions or omissions by the Collateral Agent shall not be deemed to fail to fulfill
such duties solely on account of not being indicated in this Section 8.4. Without limiting
the foregoing, nothing contained in this Section 8.4 shall be construed to grant any rights
to any Pledgor or to impose any duties on the Collateral Agent that would not have been granted or
imposed by this Agreement or by applicable Legal Requirements in the absence of this Section
8.4.

     SECTION 8.5 Certain Sales of Pledged Collateral.

               (i) Each Pledgor recognizes that, by reason of certain prohibitions contained in Legal
Requirements, the Collateral Agent may be compelled, with respect to any sale of all or any part of
the Pledged Collateral, to limit purchasers to those who meet the requirements of a Governmental
Authority. Each Pledgor acknowledges that any such sales may be at prices and on terms less
favorable to the Collateral Agent than those obtainable through a public sale without such
restrictions, and, notwithstanding such circumstances, agrees that any such restricted sale shall
be deemed to have been made in a commercially reasonable manner and that, except as may be required
by applicable Legal Requirements, the Collateral Agent shall have no obligation to engage in public
sales.

               (ii) Each Pledgor recognizes that, by reason of certain prohibitions contained in the
Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities’
laws, the Collateral Agent may be compelled, with respect to any sale or disposition of all or any
part of the Securities Collateral and Investment Property, to limit purchasers to
persons who will agree, among other things, to acquire such Securities Collateral or
Investment Property for their own account, for investment and not with a view to the distribution
or resale thereof. Each Pledgor acknowledges that any such private sales may be at prices and on
terms

35

 

less favorable to the Collateral Agent than those obtainable through a public sale without
such restrictions (including a public offering made pursuant to a registration statement under the
Securities Act), and, notwithstanding such circumstances, agrees that any such private sale shall
be deemed to have been made in a commercially reasonable manner and that the Collateral Agent shall
have no obligation to engage in public sales and no obligation to delay the sale of any Securities
Collateral or Investment Property for the period of time necessary to permit the issuer thereof to
register it for a form of public sale requiring registration under the Securities Act or under
applicable state securities laws, even if such issuer would agree to do so.

               (iii) Notwithstanding the foregoing, each Pledgor shall, upon the occurrence and during the
continuing of any Event of Default, at the request of the Collateral Agent, for the benefit of the
Collateral Agent and the Secured Parties, cause any registration, qualification under or compliance
with any federal or state securities law or laws to be effected with respect to all or any part of
the Securities Collateral as soon as practicable and at the sole cost and expense of the Pledgors.
Each Pledgor will cause such registration to be effected (and be kept effective) and cause such
qualification and compliance to be effected (and be kept effective) as may be so requested and as
would permit or facilitate the sale and distribution of such Securities Collateral including
registration under the Securities Act (or any similar statute then in effect), appropriate
qualifications under applicable blue sky or other state securities laws and appropriate compliance
with all other requirements of any Governmental Authority. Each Pledgor shall cause the Collateral
Agent to be kept advised in writing as to the progress of each such registration, qualification or
compliance and as to the completion thereof, shall furnish to the Collateral Agent such number of
prospectuses, offering circulars or other documents incident thereto as the Collateral Agent from
time to time may request, and shall indemnify and shall cause the issuer of the Securities
Collateral to indemnify the Collateral against all claims, losses, damages and liabilities caused
by any untrue statement (or alleged untrue statement) of a material fact contained therein (or in
any related registration statement, notification or the like) or by any omission (or alleged
omission) to state therein (or in any related registration statement, notification or the like) a
material fact required to be stated therein or necessary to make the statements therein not
materially misleading.

               (iv) If the Collateral Agent determines to exercise its right to sell any or all of the
Securities Collateral or Investment Property, upon written request, the applicable Pledgor shall,
and shall cause each issuer of Securities Collateral and Investment Property to be sold hereunder
to, from time to time furnish to the Collateral Agent all such information as the Collateral Agent
may reasonably request in order to determine the number and nature or interest, of securities or
other instruments included in the Securities Collateral or Investment Property which may be sold by
the Collateral Agent as exempt transactions under the Securities Act and the rules of the
Securities and Exchange Commission thereunder, as the same are from time to time in effect.

               (v) Each Pledgor further agrees that a breach of any of the covenants contained in this
Section 8.5 will cause irreparable injury to the Collateral Agent and other Secured
Parties, that the Collateral Agent and the other Secured Parties have no adequate remedy
at law in respect of such breach and, as a consequence, that each and every covenant contained
in this Section 8.5 shall be specifically enforceable against such Pledgor, and such
Pledgor hereby

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waives and agrees not to assert any defenses against an action for specific
performance of such covenants.

     SECTION 8.6 No Waiver; Cumulative Remedies.

               (i) No failure on the part of the Collateral Agent to exercise, no course of dealing with
respect to, and no delay on the part of the Collateral Agent in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or remedy; nor shall the Collateral Agent be required to look
first to, enforce or exhaust any other security, collateral or guaranties. The remedies herein
provided are cumulative and are not exclusive of any remedies provided by applicable Legal
Requirements, in equity or otherwise.

               (ii) In the event that the Collateral Agent shall have instituted any proceeding to enforce
any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such
proceeding shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Collateral Agent, then and in every such case, the Pledgors, the Collateral Agent
and each other Secured Party shall be restored to their respective former positions and rights
hereunder with respect to the Pledged Collateral, and all rights, remedies and powers of the
Collateral Agent and the other Secured Parties shall continue as if no such proceeding had been
instituted.

     SECTION 8.7 Certain Additional Actions Regarding Intellectual Property. If any Event of Default shall
have occurred and be continuing, upon the written demand of the Collateral Agent, each Pledgor
shall execute and deliver to the Collateral Agent an assignment or assignments of the registered
Intellectual Property Collateral or such other documents as are necessary or appropriate to carry
out the intent and purposes hereof; provided, however, that if the Event of Default is no longer
continuing, the Collateral Agent shall promptly execute and deliver to each Pledgor such
reassignments or other documents necessary to place such Pledgors in control and ownership of such
Intellectual Property Collateral.

ARTICLE IX

PROCEEDS OF CASUALTY EVENTS AND COLLATERAL DISPOSITIONS;

APPLICATION OF PROCEEDS

     SECTION 9.1 Proceeds of Casualty Events and Collateral Dispositions. The Pledgors shall take all
actions required by the Credit Agreement with respect to any Net Cash Proceeds of any Casualty
Event or from the sale or disposition of any Pledged Collateral.

     SECTION 9.2 Application of Proceeds. The proceeds received by the Collateral Agent in respect of any sale of, collection from or
other realization upon all or any part of the Collateral pursuant to the exercise by the Collateral
Agent of its remedies shall be applied, together with any other sums then held by the Collateral
Agent pursuant to this Agreement, in accordance with the Credit Agreement.

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ARTICLE X

MISCELLANEOUS

     SECTION 10.1 Concerning Collateral Agent.

               (i) The Collateral Agent has been appointed as Collateral Agent pursuant to the Credit
Agreement. The actions of the Collateral Agent hereunder are subject to the provisions of the
Credit Agreement. The Collateral Agent shall have the right hereunder to make demands, to give
notices, to exercise or refrain from exercising any rights, and to take or refrain from taking
action (including the release or substitution of the Pledged Collateral), in accordance with this
Agreement and the Credit Agreement. Each Secured Party, by its acceptance of the benefits hereof,
agrees that it shall have no right individually to realize upon any of the Pledged Collateral
hereunder, it being understood and agreed by such Secured Party that all rights and remedies
hereunder may be exercised solely by the Collateral Agent for the benefit of the Secured Parties in
accordance with the terms of this Agreement. The Collateral
Agent may employ agents and attorneys-in-fact in connection herewith and shall not be liable
for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good
faith, excepting therefrom, however, their gross negligence or willful misconduct. The Collateral
Manager shall be deemed an agent of the Collateral Agent for the purposes of giving effect to this
Agreement and the other Loan Documents and the Collateral Agent shall not be liable, under any
circumstances, for the negligence (including gross negligence) or misconduct (including willful
misconduct) of the Collateral Manager. The Collateral Agent may resign and a successor Collateral
Agent may be appointed in the manner provided in the Credit Agreement. Upon the acceptance of any
appointment as the Collateral Agent by a successor Collateral Agent, that successor Collateral
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Collateral Agent under this Agreement, and the retiring Collateral Agent
shall thereupon be discharged from its duties and obligations under this Agreement. After any
retiring Collateral Agent’s resignation, the provisions hereof shall inure to its benefit as to any
actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent.

               (ii) Except for the exercise of reasonable care in the custody of any Pledged Collateral in
its possession and the accounting for moneys actually received by it hereunder, the Collateral
Agent shall have no duty as to any Pledged Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any Pledged Collateral.
The Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded
treatment substantially equivalent to that which the Collateral Agent, in its individual capacity,
accords its own property consisting of similar instruments or interests; provided that neither the
Collateral Agent nor any of the other Secured Parties nor any of their respective directors,
officers, employees or agents shall have responsibility for (x) ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any
Securities Collateral, whether or not the Collateral Agent or any other Secured Party has or is
deemed to have knowledge of such matters (y) failing to demand, collect or realize upon all or any
part of the Pledged Collateral or for any delay in doing so or (z) failing to

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take any necessary
steps to preserve rights against any person with respect to any Pledged Collateral.

               (iii) The Collateral Agent shall be entitled to rely upon any written notice, statement,
certificate, order or other document or any telephone message believed by it to be genuine and
correct and to have been signed, sent or made by the proper person, and, with respect to all
matters pertaining to this Agreement and its duties hereunder, upon advice of counsel selected by
it.

               (iv) If any item of Pledged Collateral also constitutes collateral granted to the Collateral
Agent under any other deed of trust, mortgage, security agreement, pledge or instrument of any
type, in the event of any conflict between the provisions hereof and the provisions of such other
deed of trust, mortgage, security agreement, pledge or instrument of any type in respect of such
collateral, the Collateral Agent, in its sole discretion, shall select which provision or
provisions shall control.

     SECTION 10.2 Collateral Agent May Perform; Collateral Agent Appointed Attorney-in-Fact. If
any Pledgor shall fail to perform any covenants contained in this Agreement (including such
Pledgor’s covenants to (i) pay the premiums in respect of all required insurance policies
hereunder, (ii) pay Charges, (iii) make repairs or (iv) discharge Liens or pay or perform any
obligations of such Pledgor under any Pledged Collateral) or if any representation or warranty on
the part of any Pledgor contained herein shall be breached, the Collateral Agent may (but shall not
be obligated to), at the Pledgors’ expense, do the same or cause it to be done or remedy any such
breach, and may expend funds for such purpose; provided, however, that the Collateral Agent shall
in no event be bound to inquire into the validity of any tax, lien, imposition or other obligation
which such Pledgor fails to pay or perform as and when required hereby and which such Pledgor does
not contest in accordance with the provisions of Section 4.12. Any and all amounts so
expended by the Collateral Agent shall be paid by the Pledgors in accordance with the provisions of
Section 11.03 of the Credit Agreement. Neither the provisions of this Section 10.2
nor any action taken by the Collateral Agent pursuant to the provisions of this Section
10.2 shall prevent any such failure to observe any covenant contained in this Agreement nor any
breach of representation or warranty from constituting an Event of Default. Each Pledgor hereby
appoints the Collateral Agent its attorney-in-fact, with full authority in the place and stead of
such Pledgor and in the name of such Pledgor, or otherwise, from time to time in the Collateral
Agent’s reasonable discretion to take any action and to execute any instrument consistent with the
terms of the Credit Agreement, this Agreement and the other Loan Documents which the Collateral
Agent reasonably may deem necessary or advisable to accomplish the purposes hereof. The foregoing
grant of authority is a power of attorney coupled with an interest and such appointment shall be
irrevocable for the term hereof. Each Pledgor hereby ratifies all that such attorney shall
lawfully do or cause to be done by virtue hereof.

     SECTION 10.3 Continuing Security Interest; Assignment. This Agreement created and shall
continue in the same force and effect a continuing security interest in the Pledged Collateral in
favor of the Collateral Agent for the ratable benefit of the Secured Parties and shall (i) be
binding upon the Pledgors, their respective successors and assigns and (ii) inure, together with
the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent
and the other Secured Parties and each of their respective successors, transferees and

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assigns. No
other persons (including any other creditor of any Pledgor) shall have any interest herein or any
right or benefit with respect hereto (except for Permitted Liens). Without limiting the generality
of the foregoing clause (ii), any Secured Party may assign or otherwise transfer any obligations
held by it and secured by this Agreement to any other person, and such other person shall thereupon
become vested with all the benefits in respect thereof granted to such Secured Party, herein or
otherwise, subject however, to the provisions of the Credit Agreement and any Hedging Agreement.

     SECTION 10.4 Termination; Release. This Agreement shall terminate and the Pledged
Collateral shall be released from the Lien of this Agreement when the Commitments have been
terminated and the principal of and interest and premium (if any) on each Loan, all Fees and all
other expenses or amounts payable under
any Loan Document shall have been paid in full (other than contingent indemnification obligations
that, pursuant to the provisions of the Credit Agreement of the Security Documents, survive the
termination thereof) and all Letters of Credit have been canceled or have expired and all amounts
drawn thereunder have been reimbursed in full. Upon termination hereof, the security interests
granted hereby shall terminate and all rights to the Pledged Collateral shall revert to the
applicable Pledgor or to such other person as may be entitled thereto pursuant to any Order or
other applicable Legal Requirement. Upon termination hereof or any release of Pledged Collateral
in accordance with the provisions of the Credit Agreement, the Collateral Agent shall promptly (and
in any event within 10 Business Days), upon the written request and at the sole cost and expense of
the Pledgors, assign, transfer and deliver to the Pledgors, against receipt and without recourse to
or warranty by the Collateral Agent, except that the Collateral Agent has not assigned or otherwise
transferred its security interest in the Pledged Collateral, such of the Pledged Collateral to be
released (in the case of a release) as may be in possession or control of the Collateral Agent and
as shall not have been sold or otherwise applied pursuant to the terms hereof and the other
Transaction Documents, and, with respect to any other Pledged Collateral, proper documents and
instruments (including UCC-3 termination statements or releases) acknowledging the termination
hereof or the release of such Pledged Collateral, as the case may be. If at any time any payment
(in whole or in part) of any Secured Obligations is invalidated, declared to be fraudulent or
preferential, set aside, rescinded or must otherwise be restored by any Secured Party, this
Agreement shall continue to be effective or be reinstated, as the case may be, all as though such
payment had not been made.

     SECTION 10.5 Modification in Writing. No amendment, modification, supplement, termination
or waiver of or to any provision hereof, nor consent to any departure by any Pledgor therefrom,
shall be effective unless the same shall be made in accordance with the terms of the Credit
Agreement and unless in writing and signed by the Collateral Agent. Any amendment, modification or
supplement of or to any provision hereof, any waiver of any provision hereof and any consent to any
departure by any Pledgor from the terms of any provision hereof shall be effective only in the
specific instance and for the specific purpose for which made or given. Except where notice is
specifically required by this Agreement, no notice to or demand on any Pledgor in any case shall
entitle any Pledgor to any other or further notice or demand in similar or other circumstances.

     SECTION 10.6 Notices. Unless otherwise provided herein or in the Credit Agreement, any
notice or other communication herein required or permitted to be given shall be

40

 

delivered to such
addresses and given in the manner and become effective as set forth in the Credit Agreement.

     SECTION 10.7 Governing Law, Consent to Jurisdiction and Service of Process; Waiver of Jury
Trial.

     (a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE
OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.

     (b) EACH PLEDGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,
TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY
LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY
APPLICABLE LEGAL REQUIREMENTS, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHERWISE SHALL AFFECT ANY RIGHT THAT THE COLLATERAL AGENT,
ANY OTHER AGENT, THE ISSUING BANK OR ANY LENDER OR OTHER SECURED PARTY MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY PLEDGOR
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) EACH PLEDGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY
LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION 10.7(b). EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT, IN THE MANNER PROVIDED FOR NOTICES
(OTHER THAN TELECOPY) IN SECTION 10.6. NOTHING IN THIS AGREEMENT OR

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ANY OTHER LOAN
DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LEGAL REQUIREMENTS.

     (e) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL
REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT, THE TRANSACTIONS OR THE OTHER TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
10.7.

     SECTION 10.8 Severability of Provisions. Any provision hereof which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

     SECTION 10.9 Execution in Counterparts. This Agreement and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile
or other electronic transmission shall be effective as delivery of a manually executed counterpart
of this Agreement.

     SECTION 10.10 Business Days. In the event any time period or any date provided in this
Agreement ends or falls on a day other than a Business Day, then such time period shall be deemed
to end and such date shall be deemed to fall on the next succeeding Business Day, and performance
herein may be made on such Business Day, with the same force and effect as if made on such other
day.

     SECTION 10.11 Waiver of Stay. Each Pledgor covenants that in the event that such Pledgor
or any property or assets of such Pledgor shall hereafter become the subject of a voluntary or
involuntary proceeding under the Bankruptcy Code or such Pledgor shall otherwise be a party to any
federal or state bankruptcy, insolvency, moratorium or similar proceeding to which the provisions
relating to the automatic stay under Section 362 of the Bankruptcy Code or any similar provision in
any such Legal Requirement is applicable, then, in any such case, whether or not the Collateral
Agent has commenced foreclosure proceedings under this Agreement, such Pledgor shall not, and each
Pledgor hereby expressly waives its right to (to the extent it may lawfully do so) at any time
insist upon, plead or in any whatsoever, claim or take the benefit or advantage of any such
automatic stay or such similar provision as it relates to the

42

 

exercise of any of the rights and
remedies (including any foreclosure proceedings) available to the Collateral Agent as provided in
this Agreement, in any other Security Document or any other document evidencing the Secured
Obligations. Each Pledgor further covenants that it will not hinder, delay or impede the
execution of any power granted herein to the Collateral Agent, but will suffer and permit the
execution of every such power as though no law relating to any stay or similar provision had been
enacted.

     SECTION 10.12 No Credit for Payment of Taxes or Imposition. No Pledgor shall be entitled
to any credit against the principal, premium, if any, or interest payable under the Credit
Agreement, and such Pledgor shall not be entitled to any credit against any other sums which may
become payable under the terms thereof or hereof, by reason of the payment of any Tax on the
Pledged Collateral or any part thereof.

     SECTION 10.13 No Claims Against Collateral Agent. Nothing contained in this Agreement
shall constitute any consent or request by the Collateral Agent, express or implied, for the
performance of any labor or services or the furnishing of any materials or other property in
respect of the Pledged Collateral or any part thereof, nor as giving any Pledgor any right, power
or authority to contract for or permit the performance of any labor or services or the furnishing
of any materials or other property in such fashion as would permit the making of any claim against
the Collateral Agent in respect thereof or any claim that any Lien based on the performance of such
labor or services or the furnishing of any such materials or other property is prior to the Lien
hereof.

     SECTION 10.14 No Release. Nothing set forth in this Agreement shall relieve any Pledgor
from the performance of any term, covenant, condition or agreement on such Pledgor’s part to be
performed or observed under or in respect of any of the Pledged Collateral or from any liability to
any person under or in respect of any of the Pledged Collateral or shall impose any obligation on
the Collateral Agent or any other Secured Party to perform or observe any such term, covenant,
condition or agreement on such Pledgor’s part to be so performed or observed or shall impose any
liability on the Collateral Agent or any other Secured Party for any act or omission on the part of
such Pledgor relating thereto or for any breach of any representation or warranty on the part of
such Pledgor contained in this Agreement, the Credit Agreement or the other Loan Documents, or
under or in respect of the Pledged Collateral or made in connection herewith or therewith. The
obligations of each Pledgor contained in this Section 10.14 shall survive the termination
hereof and the discharge of such Pledgor’s other obligations under this Agreement, the Credit
Agreement and the other Loan Documents (other than contingent indemnification obligations that,
pursuant to the provisions of the Credit Agreement or the Security Documents, survive the
termination thereof).

     SECTION 10.15 Overdue Amounts. Until paid, all amounts due and payable under this
Agreement shall constitute Secured Obligations and shall bear interest, whether before or after
judgment, at the Default Rate. Nothing in this Section 10.15 shall affect the Default Rate
or the circumstances in which the Default Rate is payable pursuant to the Credit Agreement.

     SECTION 10.16 Obligations Absolute. All obligations of each Pledgor hereunder shall be absolute and unconditional irrespective of:

43

 

               (i) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any Pledgor;

               (ii) any lack of validity or enforceability of any Loan Document, or any other agreement or
instrument relating thereto against any Pledgor;

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

               (iv) any pledge, exchange, release or non-perfection or loss of priority of any other
collateral, or any release or amendment or waiver of or consent to any departure from any
guarantee, for all or any of the Secured Obligations;

               (v) any exercise, non-exercise or waiver of any right, remedy, power or privilege under or in
respect hereof, or any Loan Document; or

               (vi) any other circumstances which might otherwise constitute a waiveable defense available
to, or a discharge of, any Pledgor.

     SECTION 10.17 Amendment and Restatement. On the date hereof, the Original Security
Agreement is hereby amended, restated and superseded in its entirety by this Agreement. The
parties hereto acknowledge and agree that (i) this Agreement and the other Loan Documents executed
and delivered in connection herewith do not constitute a novation, payment and reborrowing, or
termination of the “Obligations” (as defined in the Credit Agreement) or the “Secured Obligations”
under the Original Security Agreement or any of the other Loan Documents; (ii) such “Obligations”
and “Secured Obligations” are in all respects continuing (as amended and restated on the date
hereof by this Agreement and by the Credit Agreement) and (iii) the security interests and Liens
granted under the Original Security Agreement and the other Loan Documents are in all respects
continuing and in full force and effect and are hereby fully ratified and affirmed in favor of the
Collateral Agent for the benefit of the Secured Parties. Without limitation of the foregoing, each
of the Pledgors hereby fully and unconditionally ratifies and affirms this Agreement and agrees
that all security interests and Liens granted hereunder and under the Original Security Agreement
shall from and after the date hereof secure all Secured Obligations hereunder and under the other
Loan Documents.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

44

 

     IN WITNESS WHEREOF, the Pledgors and the Collateral Agent have caused this Agreement to
be duly executed and delivered by their duly authorized officers as of the date first above
written.

	 	 	 	 	 
	 	BIOSCRIP, INC., as Pledgor

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	EACH GUARANTOR SET FORTH ON ANNEX A,

as Pledgors

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 

Signature Page to Amended and Restated Security Agreement

 

 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	/s/ John D. Calabro	 
	 	 	Name:  	John D. Calabro	 
	 	 	Title:  	Executive Vice President	 

Signature Page to Amended and Restated Security Agreement

 

 

SCHEDULE 1 TO

AMENDED AND RESTATED SECURITY AGREEMENT

FINANCING STATEMENTS AND INTELLECTUAL PROPERTY REGISTRATIONS

	 	 	 	 	 
	Type of Filings	 	Entity	 	Jurisdictions
	UCC3 Assignment

	 	BioScrip, Inc.
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Infusion Services, Inc.
	 	California
	 
	 	 	 	 
	UCC3 Assignment

	 	Chronimed, LLC
	 	Minnesota
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Pharmacy, Inc.
	 	Minnesota
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Pharmacy (NY), Inc.
	 	New York
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip PBM Services, LLC
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Natural Living Inc.
	 	New York
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Infusion Services, LLC
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Nursing Services, LLC
	 	New York
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Infusion Management, LLC
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	BioScrip Pharmacy Services, Inc.
	 	Ohio
	 
	 	 	 	 
	UCC3 Assignment

	 	CHS Holdings, Inc.
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Applied Health Care, LLC
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Cedar Creek Home Health Care Agency, Inc.
	 	Tennessee
	 
	 	 	 	 
	UCC3 Assignment

	 	Critical Homecare Solutions, Inc.
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Deaconess Enterprises, LLC
	 	Ohio
	 
	 	 	 	 
	UCC3 Assignment

	 	Deaconess HomeCare, LLC
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	East Goshen Pharmacy, Inc.
	 	Pennsylvania
	 
	 	 	 	 
	UCC3 Assignment

	 	Elk Valley Health Services, Inc.
	 	Tennessee
	 
	 	 	 	 
	UCC3 Assignment

	 	Elk Valley Home Health Care Agency, Inc.
	 	Tennessee
	 
	 	 	 	 
	UCC3 Assignment

	 	Elk Valley Professional Affiliates, Inc.
	 	Tennessee
	 
	 	 	 	 
	UCC3 Assignment

	 	Gericare, Inc.
	 	Tennessee
	 
	 	 	 	 
	UCC3 Assignment

	 	Infusion Partners, LLC
	 	Ohio
	 
	 	 	 	 
	UCC3 Assignment

	 	Infusion Partners of Brunswick, LLC
	 	Georgia
	 
	 	 	 	 
	UCC3 Assignment

	 	Infusion Partners of Melbourne, LLC
	 	Georgia
	 
	 	 	 	 
	UCC3 Assignment

	 	Infusion Solutions, Inc.
	 	New Hampshire
	 
	 	 	 	 
	UCC3 Assignment

	 	Knoxville Home Therapies, LLC
	 	Tennessee

Schedule 1 to Amended and Restated Security Agreement

 

 

	 	 	 	 	 
	Type of Filings	 	Entity	 	Jurisdictions
	UCC3 Assignment

	 	National Health Infusion, Inc.
	 	Florida
	 
	 	 	 	 
	UCC3 Assignment

	 	New England Home Therapies, Inc.
	 	Massachusetts
	 
	 	 	 	 
	UCC3 Assignment

	 	Option Health, Ltd.
	 	Illinois
	 
	 	 	 	 
	UCC3 Assignment

	 	Professional Homecare Services, Inc.
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Regional Ambulatory Diagnostics, Inc.
	 	Ohio
	 
	 	 	 	 
	UCC3 Assignment

	 	Scott-Wilson, Inc.
	 	Kentucky
	 
	 	 	 	 
	UCC3 Assignment

	 	Scott Mississippi Home Health, Inc.
	 	Mississippi
	 
	 	 	 	 
	UCC3 Assignment

	 	South Mississippi Home Health, Inc. — Region I
	 	Mississippi
	 
	 	 	 	 
	UCC3 Assignment

	 	South Mississippi Home Health, Inc. — Region II
	 	Mississippi
	 
	 	 	 	 
	UCC3 Assignment

	 	South Mississippi Home Health, Inc. — Region III
	 	Mississippi
	 
	 	 	 	 
	UCC3 Assignment

	 	Specialty Pharma, Inc.
	 	Delaware
	 
	 	 	 	 
	UCC3 Assignment

	 	Wilcox Medical, Inc.
	 	Vermont
	 
	 	 	 	 
	UCC3 Assignment

	 	Bradhurst Specialty Pharmacy, Inc.
	 	New York
	 
	 	 	 	 
	IP Assignment

	 	BioScrip, Inc.

Infusion Solutions, Inc. 

Critical Homecare Solutions, Inc. 

Infusion Partners, LLC (formerly
Infusion Partners, Inc.) 

South Mississippi Home Health, Inc.

New England Home Therapies, Inc.

Wilcox Medical, Inc.
	 	United States
Patent and
Trademark Office
	 
	 	 	 	 
	 

	 	(with respect to security interest
recorded on reel/frames 004184/0280,
0289, 0298 and 0315)	 	 

 

 

EXHIBIT 1

[Form of]

ISSUER’S ACKNOWLEDGMENT

     The undersigned hereby (i) acknowledges receipt of a copy of that certain Amended and
Restated Security Agreement, dated as of December 28, 2010 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Security Agreement”; capitalized
terms used but not otherwise defined herein shall have the meanings assigned to such terms in the
Security Agreement), made by BioScrip, Inc., a Delaware corporation, and the other Pledgors party
thereto in favor of Healthcare Finance Group, LLC, as Collateral Agent (in such capacity and
together with any successors in such capacity, the “Collateral Agent”), (ii) agrees
promptly to note on its books the security interests granted to the Collateral Agent and confirmed
under the Security Agreement, (iii) agrees that it will comply with instructions of the Collateral
Agent or its nominee with respect to the applicable Securities Collateral without further consent
by the applicable Pledgor, (iv) agrees that the “issuer’s jurisdiction” (as defined in Section
8-110 of the UCC) is the State of New York, U.S.A., (v) agrees to notify the Collateral Agent upon
obtaining knowledge of any interest in favor of any person in the applicable Securities Collateral
that is adverse to the interest of the Collateral Agent therein and (vi) waives any right or
requirement at any time hereafter to receive a copy of the Security Agreement in connection with
the registration of any Securities Collateral thereunder in the name of the Collateral Agent or its
nominee or the exercise of voting rights by the Collateral Agent or its nominee.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Issuer’s Acknowledgment

 

 

EXHIBIT 2

[Form of]

SECURITIES PLEDGE AMENDMENT

     This security pledge amendment, dated as of [__________ ___, 20__] (the “Pledge
Amendment”), is delivered pursuant to Section 5.1 of that certain Amended and Restated Security
Agreement, dated as of December 28, 2010 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Security Agreement”; capitalized terms used but
not otherwise defined herein shall have the meanings assigned to such terms in the Security
Agreement), made by BioScrip, Inc., a Delaware corporation, and the other Pledgors party thereto in
favor of Healthcare Finance Group, LLC, as collateral agent (in such capacity and together with any
successors in such capacity, the “Collateral Agent”). The undersigned hereby agrees that
this Pledge Amendment may be attached to the Security Agreement and that the Pledged Securities
and/or Intercompany Notes listed on this Pledge Amendment shall be deemed to be and shall become
part of the Pledged Collateral and shall secure all Secured Obligations.

	 	 	 	 	 
	 	[___________________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AGREED TO AND ACCEPTED:

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Securities Pledge Amendment Page 1 of 2

 

 

PLEDGED SECURITIES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	NUMBER	 	 
	 	 	 	 	 	 	 	 	OF	 	PERCENTAGE OF
	 	 	CLASS OF	 	 	 	 	 	SHARES	 	ALL ISSUED CAPITAL
	 	 	STOCK OR	 	 	 	CERTIFICATE	 	OR	 	OR OTHER EQUITY
	ISSUER	 	INTERESTS	 	PAR VALUE	 	NO(S).	 	INTERESTS	 	INTERESTS OF ISSUER
	 	 	 	 	 	 	 	 	 	 	 

INTERCOMPANY NOTES

	 	 	 	 	 	 	 	 	 
	 	 	PRINCIPAL	 	DATE OF	 	 	 	 
	ISSUER	 	AMOUNT	 	ISSUANCE	 	INTEREST RATE	 	MATURITY DATE
	 	 	 	 	 	 	 	 	 

Securities Pledge Amendment Page 2 of 2

 

 

EXHIBIT 3

[Form of]

JOINDER AGREEMENT

[Name of New Pledgor]

[Address of New Pledgor]

[Date]

________________________

________________________

________________________

________________________

Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Security Agreement, dated as of December 28,
2010 (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement;” capitalized terms used but not otherwise defined herein shall have
the meanings assigned to such terms in the Security Agreement), made by BioScrip, Inc., a Delaware
corporation, and the other Pledgors party thereto in favor of Healthcare Finance Group, LLC, as
collateral agent (in such capacity and together with any successors in such capacity, the
“Collateral Agent”).

     This joinder agreement supplements the Security Agreement and is delivered by the undersigned,
[________________] (the “New Pledgor”), pursuant to Section 3.5 of the Security
Agreement. The New Pledgor hereby agrees to be bound as a Guarantor and as a Pledgor by all of the
terms, covenants and conditions set forth in the Security Agreement to the same extent that it
would have been bound if it had been a signatory to the Security Agreement on the execution date of
the Security Agreement. The New Pledgor also hereby agrees to be bound as a party by all of the
terms, covenants and conditions applicable to it set forth in the Credit Agreement to the same
extent that it would have been bound if it had been a signatory to the Credit Agreement on the
execution date of the Credit Agreement. Without limiting the generality of the foregoing, the New
Pledgor hereby grants and pledges to the Collateral Agent, as collateral security for the full,
prompt and complete payment and performance when due (whether at stated maturity, by acceleration
or otherwise) of the Secured Obligations, a Lien on and security interest in, all of its right,
title and interest in, to and under the Pledged Collateral and expressly assumes all obligations
and liabilities of a Guarantor under the Credit Agreement and a Pledgor under the Security
Agreement. The New Pledgor hereby makes each of the representations and warranties and agrees to
each of the covenants applicable to (i) the Pledgors contained in the Security Agreement and the
other Loan Documents and (ii) the Guarantors under the Credit Agreement and the other Loan
Documents.

Joinder Agreement Page 1

 

 

     Annexed hereto are supplements to each of the Schedules to the Security Agreement and the
Credit Agreement, as applicable, with respect to the New Pledgor. Such supplements shall be deemed
to be part of the Security Agreement or the Credit Agreement, as applicable.

     This joinder agreement and any amendments, waivers, consents or supplements hereto may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original, but all such
counterparts together shall constitute one and the same agreement. Delivery of an executed
counterpart of this joinder agreement by facsimile or other electronic transmission shall be
effective as delivery of a manually executed counterpart of this joinder agreement.

     THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CHOICE OF LAW
THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION.

Joinder Agreement Page 2 of 3

 

 

     IN WITNESS WHEREOF, the New Pledgor has caused this joinder agreement to be executed and
delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	[NEW PLEDGOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title::  	 	 
	 

	 	 	 	 	 
	 	AGREED TO AND ACCEPTED:

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Schedules to be attached]

Joinder Agreement Page 3 of 3

 

 

EXHIBIT 4

[Form of]

COPYRIGHT SECURITY AGREEMENT

     This copyright security agreement (this “Copyright Security Agreement”), dated as
of [__________ ___, 20__], by [________] (the “Pledgors”), in favor of Healthcare Finance
Group, LLC, in its capacity as collateral agent (in such capacity, the “Collateral Agent”)
pursuant to that certain Amended and Restated Credit Agreement, dated as of December 28, 2010 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, Pledgors are party to that certain Amended and Restated Security Agreement of
even date with the Credit Agreement (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Security Agreement”) in favor of the Collateral Agent
pursuant to which the Pledgors are required to execute and deliver this Copyright Security
Agreement;

     NOW, THEREFORE, in consideration of the premises and to induce the Collateral Agent, for the
ratable benefit of the Secured Parties, to enter into the Credit Agreement, the Pledgors hereby
agree with the Collateral Agent as follows:

     SECTION 1. Defined Terms. Unless otherwise defined herein, terms defined in the
Security Agreement and used herein have the meaning given to them in the Security Agreement.

     SECTION 2. Grant of Security Interest in Copyright Collateral. Each Pledgor hereby
pledges and grants to the Collateral Agent for the ratable benefit of the Secured Parties a lien on
and security interest in and to all of its right, title and interest in, to and under all the
following Pledged Collateral of such Pledgor (collectively, the “Copyright Collateral”):

     (a) Copyrights of such Pledgor listed on Schedule 11 attached hereto; and

     (b) all Proceeds of any and all of the foregoing (other than Excluded Property).

     SECTION 3. Security Agreement. The security interest granted pursuant to this
Copyright Security Agreement is granted in conjunction with the security interest granted to the
Collateral Agent for the benefit of the Secured Parties pursuant to the Security Agreement, and the
Pledgors hereby acknowledge and affirm that the rights and remedies of the Collateral Agent with
respect to the security interest in the Copyright Collateral made and granted hereby are more fully
set forth in the Security Agreement, the terms and provisions of which are incorporated by
reference herein as if fully set forth herein. In the event that any provision of

 

			
	1.	 	List the Copyrights identified in the Perfection Certificate.

Copyright Security Agreement Page 1 of 7

 

 

this Copyright Security Agreement is deemed to conflict with the Security Agreement, the
provisions of the Security Agreement shall control unless the Collateral Agent shall otherwise
determine.

     SECTION 4. Termination. Upon the full payment and performance of the Secured
Obligations (other than contingent indemnification obligations that, pursuant to the provisions of
the Credit Agreement or the Security Documents, survive the termination thereof), and upon written
request of the Pledgors, the Collateral Agent shall execute, acknowledge, and deliver to the
Pledgors an instrument in writing in recordable form releasing the collateral pledge, grant,
assignment, lien and security interest in the Copyrights under this Copyright Security Agreement.

[Signature Page Follows]

Copyright Security Agreement Page 2 of 7

 

 

     IN WITNESS WHEREOF, each Pledgor has caused this Copyright Security Agreement to be
executed and delivered by its duly authorized offer as of the date first set forth above.

	 	 	 	 	 
	 	[PLEDGORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Copyright Security Agreement Page 3 of 7

 

 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Copyright Security Agreement Page 4 of 7

 

 

SCHEDULE 1

to

COPYRIGHT SECURITY AGREEMENT

COPYRIGHT REGISTRATIONS AND COPYRIGHT APPLICATIONS

Copyright Registrations:

	 	 	 	 	 
	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	TITLE
	 	 	 	 	 

Copyright Applications:

	 	 	 	 	 
	 	 	APPLICATION	 	 
	OWNER	 	NUMBER	 	TITLE
	 	 	 	 	 

SCHEDULE 1 to Copyright Security Agreement

 

 

EXHIBIT 5

[Form of]

PATENT SECURITY AGREEMENT

     This patent security agreement (this “Patent Security Agreement”), dated as of
[__________ ___, 20__], by [___________] (the “Pledgors”), in favor of Healthcare Finance
Group, LLC, in its capacity as collateral agent (in such capacity, the “Collateral Agent”)
pursuant to that certain Amended and Restated Credit Agreement, dated as of December 28, 2010 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, the Pledgors are party to that certain Amended and Restated Security Agreement
of even date with the Credit Agreement (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Security Agreement”) in favor of the Collateral Agent
pursuant to which the Pledgors are required to execute and deliver this Patent Security Agreement;

     NOW, THEREFORE, in consideration of the premises and to induce the Collateral Agent, for the
ratable benefit of the Secured Parties, to enter into the Credit Agreement, the Pledgors hereby
agree with the Collateral Agent as follows:

     SECTION 1. Defined Terms. Unless otherwise defined herein, terms defined in the
Security Agreement and used herein have the meaning given to them in the Security Agreement.

     SECTION 2. Grant of Security Interest in Patent Collateral. Each Pledgor hereby
pledges and grants to the Collateral Agent for the ratable benefit of the Secured Parties a lien on
and security interest in and to all of its right, title and interest in, to and under all the
following Pledged Collateral of such Pledgor (collectively, the “Patent Collateral”):

     (a) Patents of such Pledgor listed on Schedule 12 attached hereto; and

     (b) all Proceeds of any and all of the foregoing (other than Excluded Property)

     SECTION 3. Security Agreement. The security interest granted pursuant to this Patent
Security Agreement is granted in conjunction with the security interest granted to the Collateral
Agent for the benefit of the Secured Parties pursuant to the Security Agreement, and the Pledgors
hereby acknowledge and affirm that the rights and remedies of the Collateral Agent with respect to
the security interest in the Patent Collateral made and granted hereby are more fully set forth in
the Security Agreement, the terms and provisions of which are incorporated by reference herein as
if fully set forth herein. In the event that any provision of this Patent Security

 

			
	2	 	List the Patents identified in the Perfection Schedule.

Patent Security Agreement Page 1 of 7

 

 

Agreement is deemed to conflict with the Security Agreement, the provisions of the Security
Agreement shall control unless the Collateral Agent shall otherwise determine.

     SECTION 4. Termination. Upon the full payment and performance of the Secured
Obligations (other than contingent indemnification obligations that, pursuant to the provisions of
the Credit Agreement or the Security Documents, survive the termination thereof) and upon written
request of the Pledgors, the Collateral Agent shall execute, acknowledge, and deliver to the
Pledgors an instrument in writing in recordable form releasing the collateral pledge, grant,
assignment, lien and security interest in the Patents under this Patent Security Agreement.

[Signature Page Follows]

Patent Security Agreement Page 2 of 7

 

 

     IN WITNESS WHEREOF, each Pledgor has caused this Patent Security Agreement to be executed and
delivered by its duly authorized offer as of the date first set forth above.

	 	 	 	 	 
	 	[PLEDGORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Patent Security Agreement Page 3 of 7

 

 

	 	 	 	 	 
	 	Accepted and Agreed:

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Patent Security Agreement Page 4 of 7

 

 

SCHEDULE 1

to

PATENT SECURITY AGREEMENT

ISSUED PATENTS AND APPLICATIONS

Issued Patents:

	 	 	 	 	 
	OWNER	 	REGISTRATION NUMBER	 	TITLE
	 	 	 	 	 

Patent Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	TITLE
	 	 	 	 	 

SCHEDULE 2 to Patent Security Agreement

 

 

EXHIBIT 6

[Form of]

TRADEMARK SECURITY AGREEMENT

     This trademark security agreement (this “Trademark Security Agreement”), dated as
of [__________ ___, 20__], by [________] (the “Pledgors”), in favor of Healthcare Finance
Group, LLC, in its capacity as collateral agent (in such capacity, the “Collateral Agent”)
pursuant to that certain Amended and Restated Credit agreement, dated as of December 28, 2010 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, the Pledgors are party to that certain Amended and Restated Security Agreement
of even date with the Credit Agreement (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Security Agreement”) in favor of the Collateral Agent
pursuant to which the Pledgors are required to execute and deliver this Trademark Security
Agreement;

     NOW, THEREFORE, in consideration of the premises and to induce the Collateral Agent, for the
ratable benefit of the Secured Parties, to enter into the Credit Agreement, the Pledgors hereby
agree with the Collateral Agent as follows:

     SECTION 1. Defined Terms. Unless otherwise defined herein, terms defined in the
Security Agreement and used herein have the meaning given to them in the Security Agreement.

     SECTION 2. Grant of Security Interest in Trademark Collateral. Each Pledgor hereby
pledges and grants to the Collateral Agent for the ratable benefit of the Secured Parties a lien on
and security interest in and to all of its right, title and interest in, to and under all the
following Pledged Collateral of such Pledgor (collectively, the “Trademark Collateral”):

     (a) Trademarks of such Pledgor listed on Schedule 11 attached hereto;

     (b) all Goodwill associated with such Trademarks; and

     (c) all Proceeds of any and all of the foregoing (other than Excluded Property).

     SECTION 3. Security Agreement. The security interest granted pursuant to this
Trademark Security Agreement is granted in conjunction with the security interest granted to the
Collateral Agent for the benefit of the Secured Parties pursuant to the Security Agreement, and the
Pledgors hereby acknowledge and affirm that the rights and remedies of the Collateral Agent with
respect to the security interest in the Trademark Collateral made and granted hereby are

 

			
	1	 	List the Trademarks identified in the Perfection Certificate.

Trademark Security Agreement Page 1 of 7

 

 

more fully set forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein. In the event that any provision of
this Trademark Security Agreement is deemed to conflict with the Security Agreement, the provisions
of the Security Agreement shall control unless the Collateral Agent shall otherwise determine.

     SECTION 4. Termination. Upon the full payment and performance of the Secured Obligations
(other than contingent indemnification obligations that, pursuant to the provisions of the Credit
Agreement or the Security Documents, survive the termination thereof), upon written request of the
Borrower, the Collateral Agent shall execute, acknowledge, and deliver to the Pledgors an
instrument in writing in recordable form releasing the collateral pledge, grant, assignment, lien
and security interest in the Trademarks under this Trademark Security Agreement.

[Signature Page Follows]

Trademark Security Agreement Page 2 of 7

 

 

     IN WITNESS WHEREOF, each Pledgor has caused this Trademark Security Agreement to
be executed and delivered by its duly authorized offer as of the date first set forth above.

	 	 	 	 	 
	 	[PLEDGORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Trademark Security Agreement Page 3 of 7

 

 

	 	 	 	 	 
	 	Accepted and Agreed:

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Trademark Security Agreement Page 4 of 7

 

 

SCHEDULE 1

to

TRADEMARK SECURITY AGREEMENT

TRADEMARK REGISTRATIONS AND APPLICATIONS

Trademark Registrations:

	 	 	 	 	 
	OWNER	 	REGISTRATION NUMBER	 	TITLE
	 	 	 	 	 

Trademark Applications:

	 	 	 	 	 
	OWNER	 	APPLICATION NUMBER	 	TITLE
	 	 	 	 	 

Trademark Security Agreement Page 1 of 7

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