Document:

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

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

    

    Execution
Copy

    Strategic
Supply Agreement

    

    This
Strategic
Supply
Agreement
(this “Agreement”) is
entered into as of July 24, 2009 (the “Effective Date”) by
and between Abbott Molecular Inc., a Delaware corporation (“Abbott”), and
NeoGenomics Laboratories, Inc., a Florida corporation (“NeoGenomics”).

    

    Recitals

    

    A.           NeoGenomics
operates a genetic testing laboratory that offers a variety of diagnostic tests
for cancer and other diseases, including tests developed by NeoGenomics and
tests developed by others.

    

    B.           Abbott
manufactures and sells certain ASR probes that are useful for analyzing nucleic
acids through a process commonly known as FISH.

    

    C.           NeoGenomics
desires to develop and offer a FISH-based test for the diagnosis of melanoma,
and to potentially develop and offer diagnostic tests for other
cancers.

    

    D.           NeoGenomics
desires to purchase all of its requirements of Products from Abbott, and Abbott
desires to supply and sell all of NeoGenomics’
requirements for such Products to NeoGenomics, which NeoGenomics intends
to incorporate into its diagnostic test, on the terms and conditions set forth
in this Agreement.

    

    Now,
Therefore,
in consideration of the promises and the mutual covenants contained herein, the
parties agree as follows:

    

    Article
1

    Definitions

    

    “Abbott IVD” means an
In-Vitro Diagnostic test for melanoma developed by Abbott for aid in diagnosis
of malignant melanoma in skin biopsy specimens (excluding
subtyping).

    

    “Act” shall mean the
United States Food, Drug and Cosmetic Act and all regulations promulgated
thereunder.

    

    “Affiliate” shall mean
any entity which directly or indirectly controls, is controlled by, or is under
common control with, another entity. For purposes of this Agreement, an entity
shall be deemed to be in control of another entity if the former owns, or the
partners of the former own, directly or indirectly, more than fifty percent
(50%) of the outstanding voting equity (or other equity or ownership interest in
the event that such entity is other than a corporation) of the
latter.

    

    “Agreement” has the
meaning set forth in the introductory paragraph.

    

    “Annual Forecast” has
the meaning set forth in Section 3.4(a)(ii).

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “ASR” means analyte
specific reagent.

    

    “Base Price” has the
meaning set forth in Section 4.1(a).

    

    “Calendar Quarter”
means each three (3) month period during the term of this Agreement which ends,
respectively, on March 31, June 30, September 30 and December 31 of each
Calendar Year, except for the initial Calendar Quarter of the first Calendar
Year, which will begin on the Effective Date and end on September 30,
2009.

    

    “Calendar Year” shall
mean each twelve (12) month period during the term of this Agreement which
begins on January 1, and ends on December 31, except for the first Calendar Year
which will begin on the Effective Date and end on December 31,
2009.

    

    “Change of Control”
means: (a) the sale of all or substantially all of NeoGenomics’ assets that are
used in designing, developing, validating, marketing, selling, performing or
billing for the Melanoma LDT to a Third Party in a single transaction or series
of related transactions; (b) any merger, consolidation, sale of stock or other
transaction that results in any “person” or “group” (each as defined in the
Securities Exchange Act of 1934, as amended) either becoming the “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended), directly or indirectly, of NeoGenomics’ voting securities(or
securities converted into or exchangeable for such voting securities)
representing fifty percent (50%) or more of the combined voting power of all
of NeoGenomics’ voting securities(on a fully diluted basis); or (c) any other
event that results, by contract or otherwise, in such person or group obtaining
the ability, directly or indirectly, to elect a majority of the board of
directors of or otherwise direct the management and policies of
NeoGenomics.

    

    “Change of Control Base
Revenue Amount” has the meaning specified in Section 14.4.

    

    “Commencement Date”
has the meaning set forth in Section 9.5(b).

    

    “Confidential
Information” has the meaning set forth in Section 12.1.

    

    “Conversion Date” has
the meaning set forth in Section 3.4(d).

    

    “Decision Period” has
the meaning set forth in Section 9.5.

    

    “Effective Date” has
the meaning set forth in the introductory paragraph.

    

    “Escalated Negotiation
Period” has the meaning set forth in Section 9.5.

    

    “Estimated Premium
Price” has the meaning set forth in Exhibit E
hereto.

    

    “Evaluation Products”
has the meaning set forth in Section 2.1.

    

    “Exclusive Products”
means the ASRs, if any, described in Section 3.2 and identified in Exhibit A as
Exclusive Products.

    

    
      
        
           

        

        
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    “Existing Customer
Election” has the meaning set forth in Section 3.4(d).

    

    “FDA” shall mean the
United States Food and Drug Administration and any successor agency
thereto.

    

    “FISH” means a
fluorescent in situ hybridization assay.

    

    “Initial Annual
Forecast” has the meaning set forth in Section 3.4(a)(i).

    

    “Initial Negotiation
Period” has the meaning set forth in Section 9.5.

    

    “Intellectual
Property” means any and all: (a) methods, techniques, trade secrets,
designs, know-how, discoveries, inventions, data, information, documentation,
regulatory submissions, formulations, methodologies, processes, specifications,
trademarks, trade dress and other intellectual property of any kind (whether or
not protected under patent, trademark, copyright or similar law); and (b)
trademark registrations, copyrights, United States and foreign patents and
patent applications covering or claiming any of the foregoing.

    

    “IVD Agreement” has
the meaning set forth in Section 9.4(c).

    

    “IVD Opportunity” has
the meaning set forth in Section 9.4(b).

    

    “LDT” means a
laboratory developed test that is independently designed, developed and
validated by a clinical service laboratory.

    

    “Melanoma LDT” means a
specific LDT that is anticipated to be independently designed, developed and
validated by NeoGenomics using the Products for use as an aid in diagnosing
malignant melanoma in skin biopsy specimens (excluding subtyping).

    

    “Model Forecast” has
the meaning set forth in Section 3.4(a)(iii).

    

    “Negotiation Period”
means the Initial Negotiation Period and the Escalated Negotiation
Period.

    “Non-Conforming
Product” shall have the meaning set forth in Section 7.6.

    

    “Pre-Existing
Customer” A customer of NeoGenomics that purchases the Melanoma LDT prior
to the Conversion Date.

    

    “Premium Price” has
the meaning set forth in Section 4.1(b).

    

    “Products” shall mean
the analyte specific reagent probes identified by NeoGenomics and set forth on
Exhibit A,
including the Exclusive Products.

    

    “Purchase Price” for
each unit of Product shall mean the sum of the Base Price and Premium Price
applicable for such unit at any given time.

    

    
      
        
           

        

        
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    “Quality Systems and GMP
Requirements” shall mean the current and any future quality system and
good manufacturing practices regulations under 21 C.F.R. Part 820 to the extent
that such regulations are applicable to the Product, as such regulations are
promulgated by the FDA. The applicable Quality Systems and GMP Requirements for
any lot of Product shall be those regulations in effect when such lot is
manufactured for NeoGenomics.

    

    “Quarterly Forecast”
has the meaning set forth in Exhibit
E.

    

    “Quarterly Report” has
the meaning set forth in Exhibit
E.

    

    “Quarterly Unit
Purchases” shall mean the number of units of Products ordered by
NeoGenomics and shipped by Abbott pursuant to such order in a given Calendar
Quarter, where one (1) unit of Product constitutes the amount of such Product
necessary for NeoGenomics to perform the Melanoma LDT for one (1) patient. For
purposes of this definition, “unit” refers to one
ASR probe at the concentration and volume to be used in the validated Melanoma
LDT, which information will be provided to Abbott by NeoGenomics in writing
promptly following validation of the Melanoma LDT or any modification of the
Melanoma LDT. For example, if NeoGenomics uses four (4) ASR probes designated as
Products under this Agreement to perform the Melanoma LDT then such four (4) ASR
probes would represent four (4) units of Products.

    

    “SEC” shall mean the
United States Securities and Exchange Commission and any successor agency
thereto.

    

    “Service Revenue”
means the revenue recognized by NeoGenomics related to performing the Melanoma
LDT for Third Parties, as calculated in accordance with generally accepted
accounting principles and reported by NeoGenomics’
parent company in its financial statements, as filed with the
SEC.

    

    “Specifications” shall
mean Abbott’s internal manufacturing specifications as well as technical
specifications and test protocols relating to the characterization of the
Products identified in Exhibit A, which
Specifications will be included in Exhibit A when the
Products are identified pursuant to Section 2.2 and which may from time to time
be amended by written agreement of the parties including but not limited to
purchased standard control procedure (pscp) changes or an equivalent document
control process.

    

    “Subsequent Annual
Forecast” has the meaning set forth in Section 3.4(a).

    

    “Subsequent Development
Agreement” has the meaning set forth in Section 9.5(b).

    

    “Termination Date Revenue
Amount” has the meaning set forth in Section 14.4(b).

    

    “Threshold Amount” has
the meaning set forth in Section 3.4(a)(v).

    

    “Territory” shall mean
the United States and Puerto Rico.

    

    
      
        
           

        

        
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    “Third Party” shall
mean a party other than Abbott or NeoGenomics, or their respective
Affiliates.

    

    “Unaudited Report” has
the meaning set forth in Section 3.4(a)(iv).

    

    “Unaudited Revenue”
has the meaning set forth in Section 3.4(a)(iv).

    

    Article
2

    Product
Identification

    

    2.1          Evaluation Products.
Abbott will supply NeoGenomics with Abbott’s ASRs that may be requested from
time to time by NeoGenomics for purposes of NeoGenomics’ evaluation and
determination as to which ASRs to include in its Melanoma LDT, and for design,
development and validation of the Melanoma LDT (“Evaluation
Products”). Abbott will supply NeoGenomics with Evaluation Products in
quantities that are reasonably sufficient for evaluating the ASRs and designing,
developing and validating the Melanoma LDT. NeoGenomics shall not use the
Evaluation Products for any other purposes. Unless otherwise directed by Abbott,
NeoGenomics will destroy any unused quantities of Evaluation Products.
NeoGenomics will not bill or seek reimbursement from any Third Party payor for
Evaluation Products.

    

    2.2          Product
Identification. As promptly as reasonably practicable, but within one
hundred twenty (120) days after the Effective Date, NeoGenomics will determine
which ASRs it desires to purchase under this Agreement for inclusion in its
Melanoma LDT. Once the ASRs are identified and agreed upon in writing by the
parties, Exhibit
A will be modified (without necessitating an amendment to this Agreement)
to include such ASRs and their Specifications, and such ASRs will thereafter
constitute the Products for purposes of this Agreement. Notwithstanding the
foregoing, if, during the term of this Agreement, Abbott develops new ASRs
utilizing in situ hybridization to a chromosomal target that Abbott reasonably
believes may be of interest to NeoGenomics for use with the Melanoma LDT or a
successor thereto, Abbott will notify NeoGenomics in writing of such new
products with a description of each such product and exclusively offer to
NeoGenomics the right to evaluate such products for a period of one hundred
eighty (180) days from the date of such written notice for possible inclusion in
the Melanoma LDT or a successor thereto. In the event that NeoGenomics decides
during such evaluation period that any such new product would be appropriate to
include in its Melanoma LDT or any successor thereto, and so notifies Abbott in
writing, then Exhibit
A will be further modified (without necessitating an amendment to this
Agreement) to include such new product and its specifications, and thereafter
such new product will be included in the definition of Exclusive Products for
the purposes of this Agreement. If NeoGenomics elects not to use the new product
in the Melanoma LDT or a successor thereto, it shall not constitute a Product
for purposes of this Agreement and NeoGenomics shall have no rights with respect
thereto.

    

    
      
        
           

        

        
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    2.3          Non-Abbott ASRs. The
parties acknowledge and agree that NeoGenomics will be free to identify which
ASRs it desires to include in the Melanoma LDT, and that it may include ASRs
that are not currently manufactured by Abbott. If NeoGenomics elects to include
in its Melanoma LDT one or more ASRs that are not currently manufactured by
Abbott, it will so notify Abbott, and Abbott may elect to manufacture the ASR
and supply it to NeoGenomics as a Product under this Agreement. If Abbott
chooses not to manufacture the ASR, Abbott and NeoGenomics will negotiate in
good faith to determine whether: (a) Abbott will obtain the ASR from a Third
Party and supply it to NeoGenomics as a Product under this Agreement; or (b)
NeoGenomics will obtain the ASR directly from a Third Party that is reasonably
acceptable to Abbott and that has a valid license from Abbott to manufacture the
ASR, if applicable. If none of the ASRs selected by NeoGenomics are manufactured
by Abbott at the time of the initial selection of such ASRs for inclusion in the
Melanoma LDT by NeoGenomics, and Abbott elects not to manufacture any of such
ASRs selected by NeoGenomics so that no ASRs have been identified as Products
pursuant to Section
2.2 within the time periods permitted therein, and the parties are unable
to reach a mutually acceptable alternative arrangement, then Abbott may
terminate this Agreement upon thirty (30) days prior written notice to
NeoGenomics without further obligation or liability. Abbott represents and
warrants that, as of the Effective Date, it currently manufactures all of the
ASRs previously disclosed to NeoGenomics or listed in any Abbott product catalog
that is current as of the Effective Date.

    

    Article
3

    Supply
Terms

    

    3.1          Supply. During the
term of this Agreement, and subject to the terms and conditions contained
herein, NeoGenomics shall purchase all of its requirements of the Products from
Abbott, and Abbott shall supply, or shall cause its Affiliates to supply, to
NeoGenomics such quantities of the Products as may be ordered by NeoGenomics
hereunder. Except for Abbott’s failure to supply
Products as described in Section 5.5, NeoGenomics will not obtain from
any Third Party, or manufacture for itself, any Products (or other ASRs that are
substantially similar to the Products).

    

    3.2          Exclusivity. If,
pursuant to Section 2.2, NeoGenomics identifies for inclusion in the Melanoma
LDT one or more ASRs that are not currently marketed or sold commercially by
Abbott as individual stand-alone products, each such ASR will be designated as
an “Exclusive
Product” and will be so identified on Exhibit A. Abbott
will supply the Exclusive Product(s) to NeoGenomics exclusively in the Territory
and, subject to Section 3.3(b) below, Abbott will not sell the Exclusive
Products to any Third Party in the Territory. Any Products that are not
expressly designated in Exhibit A as
Exclusive Products shall be supplied to NeoGenomics on a non-exclusive basis.
Abbott will use commercially reasonable efforts to ensure that any Products that
are sold by Abbott to customers outside the Territory will be subject to
restrictions prohibiting the further resale or distribution of such Products in
the Territory.  For the avoidance of doubt, once an ASR has been
identified as an “Exclusive Product” on Exhibit A it shall
not cease to be an Exclusive Product due to the marketing or sale of such ASR by
Abbott outside the Territory.

    

    3.3          Exclusivity
Exceptions.

    

    (a)          Abbott
may sell Exclusive Products to Third Parties outside the Territory; provided, that Abbott will
use commercially reasonable efforts to ensure that such Exclusive Products are
not resold or distributed in the Territory.

    

    
      
        
           

        

        
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    (b)          Abbott
may supply Exclusive Products to the academic collaborators identified in Exhibit B in
quantities sufficient for the collaborators’ research and development purposes.
In addition, Abbott may supply the identified academic collaborators, in the
aggregate, with quantities of Exclusive Products sufficient to perform no more
than one thousand two hundred (1,200) patient tests per Calendar Year
(increasing six percent (6%) per Calendar Year).

    

    3.4          Maintenance of
Exclusivity.

    

    (a)          Annual Forecast and
Review.

    

    (i)           At
least ninety (90) days prior to the end of the 2010 Calendar Year, NeoGenomics
will provide to Abbott a written reasonable good faith forecast of the Service
Revenue it expects to realize in each of the following two (2) Calendar Years
from sales of the Melanoma LDT (the “Initial Annual
Forecast”). If Abbott does not object to the Initial Annual Forecast
within forty-five (45) days of its receipt of the Initial Annual Forecast, it
shall be deemed accepted by Abbott. If Abbott objects to the Initial Annual
Forecast within such forty-five (45) day period, the parties will negotiate in
good faith to develop an Initial Annual Forecast that is mutually acceptable to
both parties, subject to subparagraph (iii) below.
If the parties are unable to agree upon a mutually acceptable Initial
Annual Forecast within fifteen (15)
days after beginning negotiations, the matter will be escalated to the President
of NeoGenomics (currently Robert Gasparini) and the President of Abbott
(currently Stafford O’Kelly) for resolution, and if such individuals are unable
to agree upon a mutually acceptable Initial Annual Forecast within an additional fifteen (15) days, the
matter will be resolved in accordance with Section 15.11.

     

    (ii)          At
least ninety (90) days prior to the end of the 2012 Calendar Year and at least
ninety (90) days prior to the end of each third Calendar Year thereafter during
the term of this Agreement (i.e., 2015, 2018, etc.),
NeoGenomics will provide to Abbott a written reasonable good faith forecast of
the Service Revenue it expects to realize in each of the following three (3)
Calendar Years from sales of the Melanoma LDT (each, a “Subsequent Annual
Forecast” and together with the Initial Annual Forecast, the “Annual Forecast”). If
Abbott does not object to a Subsequent Annual Forecast within forty-five (45)
days of its receipt of such Subsequent Annual Forecast, it shall be deemed
accepted by Abbott. If Abbott objects to a Subsequent Annual Forecast within
such forty-five (45) day period, the parties will negotiate in good faith to
develop a Subsequent Annual Forecast that is mutually acceptable to both
parties, subject to subparagraph (iii) below;
provided
however, that unless otherwise mutually
agreed by the parties:

     

    
      	
               
      

            	
              (A)

            	
              if NeoGenomics’ maintains exclusivity pursuant to
      Section 3.4(b), then the Service Revenue projected in each Calendar Year
      forecast included within the applicable Subsequent Annual Forecast shall
      not be lower than the actual Service Revenue realized by NeoGenomics in
      the last Calendar Year of the immediately preceding forecast period;
      or

            

    

    

    
      
        
           

        

        
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              (B)

            	
              if NeoGenomics does not maintain exclusivity
      pursuant to Section 3.4(b) and Abbott does not convert this Agreement to a
      non-exclusive agreement pursuant to Section 3.4(c), then the Service
      Revenue projected in each Calendar Year forecast included within the
      applicable Subsequent Annual Forecast shall not be lower than the actual
      Service Revenue realized by NeoGenomics in the last Calendar Year of the
      immediately preceding forecast period, divided by seventy-five one
      hundredths (0.75).

            

    

     

    If the
parties are unable to agree upon a mutually acceptable Subsequent Annual
Forecast within fifteen (15) days after beginning negotiations, the matter will
be escalated to the President of
NeoGenomics (currently Robert Gasparini) and the President of Abbott (currently
Stafford O’Kelly) for resolution, and if such individuals are unable to agree
upon a mutually acceptable Subsequent Annual Forecast within an additional fifteen (15) days, the
matter will be resolved in accordance with Section 15.11.

     

    (iii)         Notwithstanding
anything in this Agreement to the contrary, unless otherwise expressly agreed by
both parties, neither the Initial Annual Forecast nor any Subsequent Annual
Forecast will be (A) higher than the model forecast for the corresponding
Calendar Year(s) as shown in the model forecast attached hereto as Exhibit C (the “Model Forecast”) or
(B) so long as Abbott has
not exercised its rights pursuant to Section 3.4(c) hereof to convert
NeoGenomics to a non-exclusive arrangement, lower than thirty-five percent (35%)
of the model forecast for the corresponding Calendar Year as shown in the Model
Forecast.

     

    (iv)         NeoGenomics
hereby agrees that it will hire the number of sales people, make the marketing
expenditures and otherwise make the commercial investments that NeoGenomics
reasonably believes are necessary to achieve each Annual Forecast. NeoGenomics
and Abbott agree to meet periodically to review and discuss NeoGenomics’ sales
and marketing activities with respect to the Melanoma LDT.

     

    (v)          On
or before February 15, 2012, and thereafter as soon as figures are available,
but in no event more than forty-five (45) days, after the end of each Calendar
Year during the term of this Agreement, NeoGenomics will provide Abbott with a
written report showing NeoGenomics’ revenue related to performing the Melanoma
LDT for Third Parties, as calculated in accordance with generally accepted
accounting principles (the “Unaudited Revenue”),
during the previous Calendar Year, which the parties acknowledge shall be based
on unaudited financial information for such
Calendar Year (the “Unaudited Report”).
Within ninety (90) days after the end of such Calendar Year during the term of
this Agreement, NeoGenomics will provide Abbott with a written report showing
its Service Revenue during the previous Calendar Year (the “Audited Report”), but
only if the Service Revenue in the Audited Report would differ from NeoGenomics’
Unaudited Revenue as reported in the Unaudited Report. If the Unaudited Report
shows that NeoGenomics’ Unaudited Revenue during the previous Calendar Year was
less than ninety percent (90%) of the applicable Threshold Amount (as defined
below), then the Unaudited Revenue will constitute the Service Revenue for such
Calendar Year for purposes of determining whether Abbott may exercise its rights
under Section 3.4(c) or Section 3.4(d), as applicable. If the Unaudited Report
shows that NeoGenomics’ Unaudited Revenue during the previous Calendar Year is
equal to or greater than 90% of the applicable Threshold Amount, then the
parties will wait until the Audited Report is issued and the actual Service
Revenue, as reported in the Audited Report, will be used for purposes of
determining whether Abbott may exercise its rights under Section 3.4(c) or
Section 3.4(d), as applicable. As used in this paragraph: (A) If Abbott has not exercised its rights
pursuant to Section 3.4(c) or Section 3.4(d), the “Threshold Amount” is
the amount of Service Revenue that NeoGenomics must realize in a given Calendar
Year in order to maintain exclusivity pursuant to Section 3.4(b); or (B) if
Abbott has exercised
its rights pursuant to Section 3.4(c), the “Threshold Amount”
means the amount of Service Revenue that NeoGenomics must realize in a given
Calendar Year in order to avoid Abbott having the right to make the Existing
Customer Election pursuant to Section 3.4(d).

    

    
      
        
           

        

        
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    (b)          Maintenance of
Exclusivity. Beginning with Calendar Year 2011, if NeoGenomics’ Service
Revenue in a Calendar Year equals or exceeds seventy-five percent (75%) of the
Service Revenue forecasted in the Annual Forecast for such Calendar Year, then
NeoGenomics will retain the right to purchase the Exclusive Products from Abbott
on an exclusive basis pursuant to Section 3.2.

    

    (c)          Conversion to
Non-Exclusivity. Beginning with Calendar Year 2011, if NeoGenomics’
Service Revenue in a Calendar Year is less than seventy-five percent (75%) but
at least thirty-five percent (35%) of the Service Revenue forecasted in the
Annual Forecast for such Calendar Year, then Abbott may, in its discretion, upon
written notice to NeoGenomics within ninety (90) days following NeoGenomics’
submission of a written report showing the previous year’s Service Revenue to
Abbott, irrevocably discontinue selling the Exclusive Products to NeoGenomics on
an exclusive basis and begin selling them to NeoGenomics on a non-exclusive
basis. In such event, the Exclusive Products will cease being Exclusive Products
for purposes of this Agreement and Abbott will be free to sell any Products,
including the Exclusive Products, to one or more of its Affiliates or Third
Parties for any purpose; provided, however, that
before exercising its right to convert NeoGenomics to a non-exclusive
arrangement, Abbott will first consult with NeoGenomics regarding the reasons
for the Service Revenue shortfall and will consider in good faith a reasonable
modification to the Annual Forecast to permit NeoGenomics to maintain
exclusivity; provided,
further, that Abbott will have no obligation to agree to such a
modification. Abbott agrees that to the extent it does not exercise its rights
under this Section 3.4(c) within ninety (90) days of being notified of
NeoGenomics’ Service Revenue for the previous Calendar Year, then Abbott will be
deemed to have waived its right to convert this Agreement to a non-exclusive
agreement as a result of any shortfalls in Service Revenue for such Calendar
Year.

    

    
      
        
           

        

        
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    (d)          Existing Customer
Election. If (i) NeoGenomics’ Service Revenue in a Calendar Year is less
than thirty-five percent (35%) of the Service Revenue forecasted in the Annual
Forecast for such Calendar Year (if Abbott has not converted this
Agreement to a non-exclusive agreement pursuant to Section 3.4(c)); or (ii)
NeoGenomics’ Service Revenue in a Calendar Year is less than forty-five percent
(45%) of the Service Revenue forecasted in the Annual Forecast for such Calendar
Year (if Abbott has
converted this Agreement to a non-exclusive agreement pursuant to Section
3.4(c)); then, in either such event, Abbott may, in its discretion, upon written
notice to NeoGenomics within nine (9) months following NeoGenomics submission of
a written report showing the previous Calendar Year’s Service Revenue to Abbott
(the date which is thirty (30 days after NeoGenomics’ receipt of such notice
being the “Conversion
Date”), elect to sell the Exclusive Products to NeoGenomics only to the
extent necessary for NeoGenomics to service its Pre-Existing Customers (the
“Existing Customer
Election”); provided,
however, that before making such election, Abbott will first consult with
NeoGenomics regarding the reasons for the Service Revenue shortfall and will
consider in good faith a reasonable modification to the Annual Forecast to
permit NeoGenomics to continue to purchase the Exclusive Products on the
non-excusive basis set forth under Section 3.4(c); provided, further, that
Abbott will have no obligation to agree to such a modification. From and after
the Conversion Date, NeoGenomics will have no right to purchase, and Abbott will
have no obligation to sell, Products in excess of the quantities necessary for
NeoGenomics to provide the Melanoma LDT to its Pre-Existing Customers (including
increases in volume requested by Pre-Existing Customers). Upon reasonable prior
written notice, Abbott’s independent third party accounting firm, at Abbott’s
expense, will have the right to audit NeoGenomics’ books and records (but no
more than once every twelve (12) months and only at reasonable times and under
reasonable conditions) to verify that Products sold to NeoGenomics are being
used solely to service Pre-Existing Customers. Prior to any such audit, Abbott’s
independent third party accounting firm shall be required to execute a separate
confidentiality agreement with NeoGenomics, in form and substance reasonably
acceptable to NeoGenomics, that, among other things, shall prohibit such
accounting firm from disclosing the identities of any of NeoGenomics’ customers
to Abbott, any Affiliate of Abbott or any Third Party. If NeoGenomics
intentionally and materially exceeds its rights under this Section 3.4(d),
Abbott shall have the right to terminate this Agreement pursuant to Section
14.2. Abbott agrees that if it does not make the Existing Customer Election
within nine (9) months of being notified of NeoGenomics’ Service Revenue for the
previous Calendar Year, then Abbott will be deemed to have waived its right to
make the Existing Customer Election for such Calendar Year.

    

    (e)          Lowest
Price.

    

    (i)           If
Abbott converts this Agreement to a non-exclusive agreement pursuant to Section 3.4(c), Abbott will
continue to sell the Products to NeoGenomics on the terms and conditions set
forth in this Agreement, except for terms related to exclusivity; provided, however, that if, following such conversion, Abbott sells
Products to any Third Party (other than academic collaborators) for a price that
is lower than the Purchase Price payable by NeoGenomics hereunder, then
NeoGenomics will be entitled to such lower price for all quantities of such
Products delivered to it for as long as such lower price is effective for any
other buyer; provided,
further, that, if the lower price payable
by a Third Party is based on tiered pricing or other volume discount,
NeoGenomics will be required to commit to at least the same purchase volume as
the Third Party in order to be entitled to the lower price.

     

    (ii)          If
Abbot makes the Existing Customer Election pursuant to Section 3.4(d), Abbott
will continue to sell the Products to NeoGenomics on the terms and conditions
set forth in this Agreement, except for terms related to exclusivity and subject
to the limitations set forth in Section 3.4(d); provided, however, that if,
following such election, Abbott sells Products to any Third Party (other than
academic collaborators) for a price that is lower than the Purchase Price
payable by NeoGenomics hereunder, then NeoGenomics will be entitled to purchase
the Products for a price that is one hundred ten
percent (110%) of such lower price for all quantities of such Products
delivered to it for so long as such lower
price is effective for any other buyer;
provided,
further, that, if the lower price payable
by a Third Party is based on tiered pricing or other volume discount,
NeoGenomics will be required to commit to at least the same purchase volume as
the Third Party in order to be entitled to the lower price.

    

    
      
        
           

        

        
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    (f)           Changes to Annual
Forecast. If (i) Abbott converts this Agreement to a non-exclusive
agreement pursuant to Section 3.4(c); (ii) the average national reimbursement
rate for automated FISH testing using CPT Code 88367 declines by greater than
five percent (5.0%) from one Calendar Year to the next; (iii) a Third Party
begins marketing an LDT incorporating any of the Products that is reasonably
anticipated to compete in a material way with the Melanoma LDT; or (iv) Abbott
is successful in developing and obtaining FDA approval or clearance for the
Abbott IVD; then Abbott and NeoGenomics will negotiate in good faith to revise
the Annual Forecast currently in effect pursuant to Section 3.4(a) and/or the
performance thresholds set forth in Sections 3.4(b), 3.4(c) and 3.4(d) to
reflect the anticipated impact of such event on NeoGenomics’ Service Revenue. If
Abbott makes the Existing Customer Election, then NeoGenomics will no longer be
required to provide Annual Forecasts pursuant to this Section 3.4, but will
still comply with the forecasting and ordering procedures set forth in Article
5.

    

    (g)          Examples. Examples
illustrating the potential application of the provisions set forth in this
Section 3.4 under various scenarios are attached hereto as Exhibit D. Such
examples are provided for illustrative purposes only and are not binding on
either party.

    

    3.5          Sole Remedies. The
rights to convert this Agreement to a non-exclusive agreement, or to make the
Existing Customer Election, pursuant to Sections 3.4(c) and 3.4(d) above shall
constitute Abbott’s sole and exclusive remedies with respect to NeoGenomics’
failure to meet the Service Revenue levels forecasted in the Annual Forecast,
except to the extent such failure is due to NeoGenomics’ fraud or willful
misconduct.

    

    3.6          Compliance. Products
manufactured by Abbott for NeoGenomics under this Agreement shall be
manufactured and tested by Abbott in accordance with the Specifications, Quality
System and GMP Requirements, and all applicable national, state and local laws,
regulations and guidelines.

    

    3.7          Specifications. The
Specifications for the Products will be included in Exhibit A when the
Products are identified pursuant to Section 2.2. The parties may from time to
time amend said Specifications for any Product by mutual written agreement;
provided, that if
Abbott is required by applicable law, rule or regulation to modify the Products
or the Specifications, it will be free to do so, but will provide NeoGenomics
with as much advance notice of such modification as practicable under the
circumstances. In the event that an amendment to the Specifications for a
Product affects the price for such Product, the parties shall, prior to amending
the Specifications, agree in writing upon any price adjustments and ordering and
delivery schedules for such Product.

    

    3.8          Use of Products.
NeoGenomics will not: (a) resell or distribute any Evaluation Products or
Products obtained from Abbott under this Agreement to any Third Party; (b) use
any Evaluation Products or Products past their stated expiration date; (c) use
any Evaluation Products in any manner inconsistent with their intended use; or
(d) use any Evaluation Products or Products outside the Territory.

    

    
      
        
           

        

        
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    3.9          Books and Records; Audit
Rights. NeoGenomics will keep books and records that accurately show
the Service
Revenue. Such books
and records shall be preserved for three (3) years from the last day of each
Calendar Year in which such Service Revenue was realized and shall be open to
audit by an independent accounting firm reasonably acceptable to NeoGenomics and
Abbott, no more frequently than once in any twelve (12) month period, at
reasonable times and under reasonable conditions and upon at least thirty (30)
days prior written notice to NeoGenomics. All information contained in
NeoGenomics’ books and records shall constitute Confidential Information for
purposes of Article 12 of this Agreement and the independent accounting firm
will be required to execute a separate confidentiality agreement reasonably
acceptable to NeoGenomics that, among other things, shall prohibit such
accounting firm from disclosing the identities of any of NeoGenomics’ customers
to Abbott, any Affiliate of Abbott or any Third Party. Abbott will use the
reports of the independent accounting firm only for the purpose of verifying
NeoGenomics’ Service Revenue for the applicable period. Once audited, the books
and record shall be closed for the applicable Calendar Year(s) and may not be
audited again pursuant to this Section 3.9. The costs of such an audit shall be
borne by Abbott; provided,
however, that, if such audit determines that the Service Revenue reported
by NeoGenomics for the audited Calendar Year(s) is at least ten percent (10%)
more than the Service Revenue determined by the auditor for such Calendar
Year(s), then NeoGenomics will promptly reimburse Abbott for the costs of such
audit. Abbott’s right to audit a specific Calendar Year will terminate three (3)
years after the last day of such Calendar Year.

    

    Article
4

    Purchase
Price And Terms

    

    4.1          Purchase Price. The
purchase price (“Purchase Price”) for
the Products shall consist of a base component and a premium
component.

    

    (a)          Base Purchase Price.
The base component of the Purchase Price (the “Base Price”) shall be
as set forth on Exhibit E
hereto.

    

    (b)          Premium Purchase
Price. The premium component of the Purchase Price (the “Premium Price”) shall
be as set forth on Exhibit E
hereto.

    

    (c)          Books and Records; Audit
Rights. NeoGenomics will keep books and records that accurately show
the Quarterly Unit
Purchases. Such
books and records shall be preserved for three (3) years from the last day of
each Calendar Quarter in which such Quarterly Unit Purchases were made and shall
be open to audit by an independent accounting firm reasonably acceptable to
NeoGenomics and Abbott, no more frequently than once in any twelve (12) month
period, at reasonable times and under reasonable conditions and upon at least
thirty (30) days prior written notice to NeoGenomics. All information contained
in NeoGenomics’ books and records shall constitute Confidential Information for
purposes of Article 12 of this Agreement and the independent accounting firm
will be required to execute a separate confidentiality agreement reasonably
acceptable to NeoGenomics that, among other things, shall prohibit such
accounting firm from disclosing the identities of any of NeoGenomics’ customers
to Abbott, any Affiliate of Abbott or any Third Party. Abbott will use the
reports of the independent accounting firm only for the purpose of determining
the accuracy of the Quarterly Reports and ensuring proper payment of the Premium
Price. Once audited, the Quarterly Reports and the Premium Price payments shall
be closed for the applicable Calendar Quarter(s) and may not be audited again.
Except as provided below, within sixty (60) days after notice from Abbott
following completion of the independent accounting firm’s audit covering a given
Calendar Quarter, NeoGenomics will pay to Abbott the amount of any Premium Price
determined by such audit to be outstanding. The costs of such an audit shall be
borne by Abbott; provided,
however, that, if such audit determines that the aggregate Premium Price
paid by NeoGenomics for the audited Calendar Quarter(s) to be at least ten
percent (10%) less than the Premium Price determined by the auditor to be due
and payable, then NeoGenomics will promptly reimburse Abbott for the costs of
such audit. If such audit determines that NeoGenomics overpaid the amount of
Premium Price otherwise determined by the auditor to be due and payable for the
audited Calendar Quarter(s), then Abbott will credit the amount of such
overpayment to NeoGenomics against future amounts payable by NeoGenomics under
this Agreement. Abbott’s right to audit a specific Calendar Quarter or the
Premium Price payments owed with respect thereto, will terminate three (3) years
after Abbott’s receipt of the Quarterly Report relating to such Calendar
Quarter.

    

    
      
        
           

        

        
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    4.2          Evaluation Products.
Abbott shall provide NeoGenomics with reasonable quantities of Evaluation
Products at no cost to NeoGenomics.

    

    Article
5

    Orders
And Forecasting

    

    5.1          Forecasting and
Ordering. Within thirty (30) days following identification of the
Products in Exhibit
A, NeoGenomics shall provide Abbott with a written good faith forecast
for quantities of Products required by NeoGenomics for the subsequent twelve
(12) month period. The forecast shall be a rolling annual forecast and it shall
be updated by NeoGenomics at least ten
(10) days before the end of each Calendar
Quarter and shall provide NeoGenomics’ forecasted requirements of Products for
the subsequent twelve (12) month period. The first three (3) months of each such
forecast shall constitute a firm purchase order for Products. The last nine (9)
months of each forecast shall not be binding on either party and shall be used
for planning purposes and safety stock building. In any Calendar Year,
NeoGenomics will not issue a forecast for, or order, a greater quantity of
Products than NeoGenomics reasonably believes will be necessary to fulfill its
anticipated needs for the Melanoma LDT during such Calendar Year. If Abbott
reasonably believes that NeoGenomics has ordered Products in excess of the
foregoing limitation, Abbott reserves the right to adjust the applicable
purchase order to withhold shipment of such excess quantities.

    

    5.2          Purchase Orders. Firm
purchase orders shall be placed at the end of each Calendar Quarter detailing
the exact quantities of Product which NeoGenomics requires to be delivered in
the following Calendar Quarter, consistent with the forecast provided pursuant
to Section 5.1. Orders shall be placed upon NeoGenomics’ purchase order forms,
specifying quantities of Products ordered and the initial requested delivery
dates, which will be no less than three (3) days after Abbott’s receipt of the
purchase order. NeoGenomics will not be required to specify all delivery dates
for the entire Calendar Quarter on each such advance purchase order, but rather
only those delivery dates reasonably anticipated to meet NeoGenomics’ needs for
the first thirty (30) days of such Calendar Quarter. For all other delivery
dates during the Calendar Quarter, NeoGenomics will give Abbott at least two (2)
days written notice before any such requested delivery date; provided, however, that
NeoGenomics will not specify such subsequent delivery dates more frequently than
two (2) times per month during the remainder of the Calendar Quarter. In all
other respects, the obligations and rights of the parties shall be governed by
the terms and conditions of this Agreement. None of the general terms and
conditions set forth in any purchase order form used by NeoGenomics or any
acknowledgement form used by Abbott shall be applicable. If, as of the last day
of any Calendar Quarter, NeoGenomics has not specified delivery dates for all of
the Products ordered pursuant to its firm purchase order for such Calendar
Quarter, as placed pursuant to this Section 5.2, then Abbott may ship the
remaining undelivered quantities of Products specified in such purchase order to
NeoGenomics during the fifteen (15) day period after such Calendar Quarter, and
Abbott may invoice NeoGenomics for such shipped Products pursuant to Section
6.2.

    

    
      
        
           

        

        
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    5.3          Excess Quantities. If
NeoGenomics orders quantities of Product in any Calendar Quarter in excess of
one hundred ten percent (110%) of the
quantities set forth in the applicable forecast for such Calendar Quarter,
Abbott will first supply such excess quantities from the safety stock
established pursuant to Section 5.4 below. To the extent the excess quantities
ordered by NeoGenomics exceed the safety stock, Abbott will not be obligated to
supply the excess quantities, but Abbott will use commercially reasonable
efforts to supply such excess quantities within thirty (30) days after its
receipt of the applicable purchase order(s).

    

    5.4          Safety Stock. Within
sixty (60) days after the Effective Date, Abbott will establish and at all times
during the term of this Agreement maintain a safety stock of Products
exclusively available to NeoGenomics in quantities sufficient to satisfy
NeoGenomics’ requirements for Products for the succeeding sixty (60) days based
on NeoGenomics’ most recent Quarterly Forecast. Deliveries by Abbott to
NeoGenomics of Products may be taken from the safety stock. Abbott’s safety
stock shall be rotated with its regular inventory of Products to maintain shelf
life. Abbott shall keep NeoGenomics reasonably informed of the level of safety
stock. If the safety stock drops below a sixty (60) day supply, Abbott will use
commercially reasonable efforts to replenish the safety stock as quickly as
practicable. In the event that Abbott terminates this Agreement pursuant to
Section 14.2, Section 14.3 or Section 14.4, NeoGenomics will be obligated to
purchase the unsold portion of said safety stock from Abbott at the price in
effect as of the effective date of termination of this Agreement, provided such
safety stock Products comply with the then current Specifications.

    

    
      
        
           

        

        
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    5.5          Failure to Supply;
Resumption. In the event that Abbott fails or will fail, for any reason
(including an event of force majeure), to supply a Product in accordance with
the quantities and/or delivery dates specified by NeoGenomics in a firm purchase
order, and before exhausting the safety stock of such Product, Abbott will
promptly notify NeoGenomics and shall have a period of forty five (45) days to
cure such failure. During such forty-five (45) day cure period, if Abbott is
able to supply some but not all of its other customers’ demands and elects to do
so, then NeoGenomics may require Abbott to equitably allocate its manufacturing
capacity among NeoGenomics’ requirements for Products and all other customers’
demands (based on relative percentages of total sales for the three (3) months
immediately preceding the onset of Abbott’s failure). If Abbott’s failure to
timely supply continues, or is reasonably
expected to continue, for more than forty-five (45) days, NeoGenomics may, at
its discretion and upon written notice to Abbott: (a) continue to receive an
allocated portion of the quantities of Products; (b) require Abbott to supply
the undelivered Products at a future date agreed upon by the parties in writing;
or (c) obtain the quantity of Products that Abbott is unable to supply from a
Third Party mutually agreed upon by the parties and who has a valid license from
Abbott to manufacture the Products. If NeoGenomics chooses clause (c) and no
Third Party has such a license for the Products, Abbott agrees that it will use
its commercially reasonable efforts to negotiate such a license as expeditiously
as practicable and that it will not unreasonably withhold granting such a
license in order that NeoGenomics can continue to receive Products without
interruption. For avoidance of doubt, notwithstanding the foregoing, Abbott will
have no obligation to grant a license to a Third Party on commercially
unreasonable terms or if granting such a license would result in any material
adverse consequences to Abbott under any agreement between Abbott and any of its
licensors. NeoGenomics shall have the right to
adjust the Annual Forecast under Article 3 of this Agreement in the event Abbott
is unable to supply a Product in accordance with the quantities or delivery
dates specified by NeoGenomics in a firm purchase order. If NeoGenomics
elects under clause (c) above to obtain Products from a Third Party, and Abbott
is thereafter able to demonstrate, to NeoGenomics’ reasonable satisfaction, that
Abbott is again able to consistently supply such Products to NeoGenomics, then
NeoGenomics will resume purchasing the Products from Abbott for the remainder of
the term of this Agreement within ninety
(90) days after Abbott’s demonstrated
capabilities to resume supply; provided, that such time
period will be extended to the extent of NeoGenomics’ pre-existing contractual
purchase commitments with the Third Party (if any), but not to exceed an
additional one hundred eighty (180) days.

    

    Article
6

    Delivery
And Invoicing

    

    6.1          Delivery Terms.
Abbott will ship Products ordered by NeoGenomics, FCA (Incoterms 2000), Abbott’s
manufacturing facility, in accordance with the quantities, delivery dates, and
delivery and shipping instructions specified in NeoGenomics’ purchase orders. If
the carrier noted on the purchase order is not available, or if the purchase
order does not designate a carrier, then Abbott shall contact NeoGenomics for
instructions regarding the mode of shipment. Unless otherwise directed by
NeoGenomics, Abbott will obtain insurance for all shipments of Products, at
NeoGenomics’ expense. Abbott’s responsibility shall be to deposit the ordered
Products with the designated carrier within the shipping periods specified, and
Abbott shall not be liable for late delivery if so accomplished. Title and risk
of loss shall pass to NeoGenomics upon delivery to the designated carrier for
shipment. Abbott will inform the carrier of any temperature, pressure or other
special storage or handling instructions for the Products.

    

    6.2          Invoices and Payment.
Abbott shall invoice NeoGenomics for Products (and shipping and insurance costs)
upon shipment of the Products ordered by NeoGenomics. Such invoices shall be
paid in full within thirty (30) days of the date such invoice is received by
NeoGenomics. All payments hereunder shall be sent via check or wire transfer as
follows:

    

    
      
        
           

        

        
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    If by
check:

    

    Abbott
Laboratories Inc.

    75
Remittance Drive Suite #6809

    Chicago,
IL 60675-6809

    

    If by
wire transfer:

    

    Northern
Trust Company

    Chicago,
Illinois

    ABA:
071000152

    Swift
Code: CNORUS44

    Acct
Name: Abbott Molecular Inc.

    Acct
Number: 31599333

    

    6.3          Currency. All
invoices under this Agreement shall be stated and paid in United States
dollars.

    

    6.4          Taxation. The prices
quoted herein do not include the costs of any taxes, licenses, permits, fees or
tariffs which may be levied by any government or governmental agency on the sale
or transport of Products. Any such taxes, licenses, permits, fees or tariffs
which are paid by Abbott (excluding taxes on Abbott’s net income) shall be
included in the invoices issued to NeoGenomics.

    

    Article
7

     Manufacturing
And Quality Assurance

    

    7.1          Manufacture. Abbott
shall manufacture the Products in accordance with: (a) the Specifications; (b)
applicable Quality Systems and GMP Requirements; and (c) all pertinent rules and
regulations of the FDA, as the same may be amended from time to
time.

    

    7.2          Testing. Abbott shall
test or cause to be tested each lot of Product in accordance with standard
operating procedures to be set forth in Exhibit F upon
identification of the Products pursuant to Section 2.2 (“Release
Testing”).

    

    7.3          Certificate of
Analysis. Abbott will deliver all Products with a certificate of analysis
(“CoA”)
verifying their compliance with the current Specifications. The CoA will be lot
specific and conform to the requirements in the Specifications. The CoA must
show a summary of the physical inspection, Release Testing, and performance
testing results, and have Abbott’s quality representative’s signature and date
of approval. Abbott will send a CoA to NeoGenomics with each delivery of
Products. NeoGenomics is entitled to rely on such CoA for all purposes of this
Agreement. Nothing in this Agreement shall be construed to require NeoGenomics
to perform any incoming testing, analytical or otherwise, on any Products
received from Abbott.

    

    7.4          Product Dating. Each
Product shall have at least twelve (12) months of remaining shelf life on the
date of delivery to NeoGenomics’ designated carrier.

    

    
      
        
           

        

        
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    7.5          Manufacturing Site.
During the term of this Agreement, Abbott shall manufacture Product using
Abbott’s facilities located in Des Plaines, Illinois, or wherever Abbott may
relocate its manufacturing facilities; provided, however, Abbott
must give at least ninety (90) days prior written notice to NeoGenomics of any
such relocation. Abbott’s new facility shall be subject to one (1) additional
site inspection by NeoGenomics quality assurance personnel, in accordance with
Section 8.2, and Abbott shall use commercially reasonable efforts to have the
new manufacturing site become acceptable to NeoGenomics’ quality policies within
nine (9) months of relocating Product manufacture.

    

    7.6          Non-Conforming
Product. Within forty-five (45) days of NeoGenomics’ receipt thereof,
NeoGenomics may reject any Product supplied hereunder which does not conform to
the Specifications (“Non-Conforming
Product”), provided that such Non-Conforming Product has not become
non-conforming due to any failure by NeoGenomics or its agents or
representatives to handle, maintain or store such Product as required by the
labeling or the Specifications. NeoGenomics shall provide written notice to
Abbott specifying the reason for such rejection. If NeoGenomics does not reject
any Product supplied hereunder within forty-five (45) days of NeoGenomics’ receipt thereof, the
Product shall be considered accepted, and all claims with respect to Product not
conforming with Specifications shall be deemed waived by NeoGenomics, except as
to latent defects which are not reasonably discoverable within such forty-five (45) day period. At the request and expense of
Abbott, NeoGenomics shall return the defective Product, or a representative
sample thereof, to Abbott for testing. Should such test results reasonably
confirm the Product is a Non-Conforming Product, as promptly as practicable (but
in no event more than thirty (30) days) after such determination, Abbott shall
send conforming replacement Products to NeoGenomics at no cost to NeoGenomics.
At Abbott’s direction, NeoGenomics will either return all Non-Conforming
Products to Abbott’s facilities, at Abbott’s expense, or destroy all
Non-Conforming Products and certify such destruction in writing.

    

    7.7          Product Retains.
Abbott will provide, at no additional charge, three (3) samples of each lot of
Products supplied to NeoGenomics under this Agreement, and NeoGenomics will
retain such samples for at least one (1) year beyond the expiration date of such
lot. In the event of a dispute regarding any Non-Conforming Product that Abbott
and NeoGenomics are unable to resolve in a timely manner, a sample of the
alleged Non-Conforming Product and two (2) of the retained samples from such lot
of such Product, along with a reference batch which has previously been accepted
by NeoGenomics as conforming to the Specifications, together with the testing
methodologies agreed upon by the parties, shall be submitted by NeoGenomics to
an independent laboratory reasonably acceptable to both parties for testing
against the Specifications. The laboratory’s determination of the Product’s
conformance or non-conformance to the Specifications shall be binding upon the
parties. If the laboratory determines that the Product is conforming,
NeoGenomics will pay all independent laboratory costs, as well as any shipping
costs incurred by Abbott in connection with the laboratory’s determination. If
the laboratory determines that the Product is non-conforming, Abbott will pay
all independent laboratory costs, as well as any shipping costs incurred by
NeoGenomics in connection with the laboratory’s determination.

    

    
      
        
           

        

        
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    7.8          Quality System.
Abbott will maintain a quality system to ensure that the Products are
manufactured in accordance with: (a) applicable Quality Systems and GMP
Requirements; and (b) all pertinent rules and regulations of the FDA, as the
same may be amended from time to time.

    

    7.9          Product Safety. Each
party will be solely responsible for implementing and maintaining its own
environmental, health and safety procedures for the handling, storage and use of
the Products and any other materials or hazardous waste which may be used or may
arise in connection with the use of the Products. The parties will cooperate
reasonably and in good faith to ensure employee and public safety.

    

    Article
8

     Regulatory
Matters

    

    8.1          Notice of Regulatory Agency
Action. Each party shall, as promptly as practicable (but in any event
within ten (10) days) inform the other party of any formal or informal inquiry,
notice, warning or other communication from any regulatory authority relating to
any Products or the Melanoma LDT.

    

    8.2          Site Inspections.
Upon at least five (5) days prior notice, Abbott shall, from time to time during
the term of this Agreement, but no more frequently than once per Calendar Year,
allow representatives of NeoGenomics to tour and inspect all facilities utilized
by Abbott in manufacturing, testing, packaging and shipment of Products sold to
NeoGenomics under this Agreement for the purposes of verifying compliance with
quality control regulations. During such visits, Abbott shall provide reasonable
access to its manufacturing quality control documentation and shall cooperate
with such representatives in every reasonable manner. NeoGenomics shall also
have the right at any time, upon reasonable prior written notice to Abbott (as
dictated by applicable regulatory authorities’ requirements), to conduct any
audits that are specifically mandated by any regulatory authority or that are
reasonably required to permit NeoGenomics to respond to specific questions from
any regulatory authority.

    

    8.3          Regulatory Agency
Compliance. Each party shall comply with any applicable laws and
regulations that require such party to: (a) allow representatives of the FDA or
any other regulatory authority with jurisdiction over the manufacture or
marketing the Products or the Melanoma LDT, as applicable, to tour and inspect
all facilities utilized by Abbott in the manufacture, testing, packaging,
storage and shipment of Products sold under this Agreement or by NeoGenomics in
the design, development, validation or performance of the Melanoma LDT; or (b)
respond to requests for information from the FDA or any other regulatory
authority having jurisdiction over the manufacture or marketing of the Products
or the Melanoma LDT. Each party shall notify the other party as promptly as
practicable (but in any event within ten (10) days) whenever such party receives
notice of a pending inspection by any United States regulatory agency of any
facility that is used in the manufacturing, packaging, storage or shipment of
Products, or the design, development, validation and performance of the Melanoma
LDT, as applicable.

    

    
      
        
           

        

        
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    Article
9

    Melanoma
LDT, Abbott IVD,

    Other
Tests, Third Party Proposals

    

    9.1          Development of Melanoma
LDT. If NeoGenomics elects to develop the Melanoma LDT as contemplated,
it shall be solely responsible for designing, developing and validating the
Melanoma LDT in accordance with all applicable laws, including without
limitation the Act, the Clinical Laboratory Improvement Amendments (“CLIA”) and any rules,
regulations or guidance promulgated thereunder, and it shall use commercially
reasonable efforts to do so as quickly as possible. Without limiting the
foregoing, NeoGenomics will also be solely responsible for determining which
ASRs to include in the Melanoma LDT. Abbott will not participate or be involved
in any way with the design, development or validation of the Melanoma LDT, or
with determining which ASRs to include in the Melanoma LDT. Solely as may be
requested and directed by NeoGenomics, and as permitted by applicable law, rules
and regulations, Abbott may agree to optimize or customize existing ASRs, or to
develop new ASRs, for NeoGenomics’ use in connection with the Melanoma LDT;
provided, however, that
Abbott may do so only in accordance with NeoGenomics’ independently developed
technical requests or instructions. Such customized, optimized or new ASRs would
then constitute Evaluation Products, Products, and/or Exclusive Products for
purposes of this Agreement.

    

    9.2          Failure to Develop.
If NeoGenomics does not develop and launch the Melanoma LDT within six (6)
months after the date on which Abbott first supplies Products (as identified on
Exhibit A and
excluding Evaluation Products) to NeoGenomics under this Agreement, and if such
failure or delay is due to causes beyond NeoGenomics’ reasonable control or to
new or changed circumstances not anticipated by the parties, then Abbott will
consult with NeoGenomics regarding the reasons for such failure or delay and
will consider in good faith a reasonable extension of time for NeoGenomics to
complete development and launch of the Melanoma LDT; provided, however, that
Abbott will have no obligation to grant such an extension of time. If, after
fifteen (15) days of such consultation and good faith consideration, Abbott does
not agree to an extension of time, then it may, in its sole discretion, upon
written notice to NeoGenomics, either: (a) convert this Agreement to a
non-exclusive agreement pursuant to Section 3.4(c); or (b) terminate this
Agreement. Notwithstanding the foregoing, in the event that NeoGenomics, due to
factors beyond its reasonable control, encounters delays in receiving patient
samples with the appropriate patient consents beyond sixty (60) days from the
Effective Date, then the six (6) month deadline in the first sentence of this
Section 9.2 shall be extended day for day for up to an additional sixty (60)
days.

    

    9.3          Marketing of Melanoma
LDT. NeoGenomics will be solely responsible for marketing, promoting,
offering, selling, performing and billing customers and/or Third Party payors
for the Melanoma LDT in accordance with applicable law, rules and regulations.
Abbott and its Affiliates will not participate in any way, directly or
indirectly, in the foregoing activities and will not engage in any co-promotion
or other similar activities intended to promote or otherwise create demand for
the Melanoma LDT.

    

    
      
        
           

        

        
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    9.4          Abbott
IVD.

    

    (a)          Right to Continue Developing
Abbott IVD. Nothing in this Agreement will prevent or restrict Abbott
from continuing to develop and seeking FDA approval or clearance for the Abbott
IVD, which may include ASRs that are similar or identical to the Products,
including the Exclusive Products. To the extent permitted by, and subject to,
all applicable laws and regulations, including those relating to data privacy,
if requested by Abbott, NeoGenomics will provide Abbott with data generated in
clinical studies conducted in connection with the Melanoma LDT for the purpose
of supporting Abbott’s regulatory submissions for the Abbott IVD; provided, that NeoGenomics
shall have no obligation to provide such data if Abbott has terminated this
Agreement for any reason.

    

    (b)          Co-Exclusive Rights.
If Abbott is successful in developing and obtaining FDA approval or clearance
for the Abbott IVD, Abbott will offer to NeoGenomics the co-exclusive right to
purchase the Abbott IVD and offer it as a service to its customers through its
laboratories (the “IVD
Opportunity”). Such right will be co-exclusive with Abbott, and Abbott
would agree not to sell the Abbott IVD, or sell or license the technology
underlying the Abbott IVD, to Third Party laboratories (other than academic
collaborators for research purposes) during the term of the IVD Agreement (as
defined below), so long as NeoGenomics maintains co-exclusivity in accordance
with subparagraph (d) below.

    

    (c)          IVD Agreement. Abbott
and NeoGenomics both acknowledge and agree that if Abbott is successful in
developing and obtaining FDA approval or clearance for the Abbott IVD and if
NeoGenomics elects to purchase and offer the Abbott IVD, the parties will use
their commercially reasonable best efforts and will negotiate in good faith to
enter into a separate written agreement (the “IVD Agreement”)
setting forth pricing and other terms and conditions substantially similar to the terms and conditions in this Agreement, modified as appropriate to reflect
the different types of products, provided, that the effective price of the Abbott IVD will not
materially change from the aggregate Purchase Price paid under this Agreement by
NeoGenomics for the Products used in its Melanoma LDT (calculated on a per test
basis). Notwithstanding the foregoing:

    

    
      	
               
      

            	
              (i)

            	
              if Abbott utilizes ASRs in the Abbott IVD which
      are different than the Products utilized in the Melanoma LDT and the ASRs
      used in the Abbott IVD are subject to licensing and/or royalty payments
      for the intellectual property underlying such ASRs that are higher in the
      aggregate than the licensing and/or royalty payments incurred for the
      Products used in the Melanoma LDT, then, after conferring with NeoGenomics
      and outlining the differences in royalties and licensing fees underlying
      the ASRs, Abbott shall have the right to pass through solely the effects
      of such incremental royalty/licensing costs to NeoGenomics in the
      effective pricing for the Abbott IVD;
  and/or

            

    

    

    
      
        
           

        

        
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              (ii)

            	
              if the Abbott IVD includes a greater number of
      ASRs (i.e., probes) than NeoGenomics uses in its Melanoma
      LDT, the price for the Abbott IVD will be increased proportionately (but
      taking into account manufacturing costs for such additional ASR(s) used in
      the Abbott IVD to the extent such manufacturing costs are greater than the
      manufacturing costs for the Products used in the Melanoma LDT) to reflect
      such greater number of ASRs.

            

    

    

    In addition, in connection with entering into the IVD
Agreement, Abbott and NeoGenomics will use their commercially reasonable best
efforts and negotiate in good faith to agree upon new annual forecasts pursuant
to the IVD Agreement to reflect the anticipated impact to NeoGenomics of the
Abbott IVD which new annual forecasts will not be materially higher than the
Annual Forecasts for the Melanoma LDT. At least ninety (90) days prior to
Abbott’s anticipated submission of a Pre-Market Approval application (PMA) for
the Abbott IVD, Abbott will provide NeoGenomics with written notice offering it
the IVD Opportunity. If NeoGenomics elects to commence negotiations relating to
the IVD Opportunity, it will so notify Abbott in writing within ten (10) days
after its receipt of such notice. If NeoGenomics does not elect to
purchase and offer the Abbott IVD within ten (10) days after its receipt of such
notice, or if the parties are unable to reach agreement as to the terms of the
IVD Agreement within sixty (60) days of good faith negotiations consistent with
this paragraph (c) after NeoGenomics elects to enter into negotiations with
respect to the IVD Opportunity, the matter will be escalated to the President of
NeoGenomics (currently Robert Gasparini) and the President of Abbott (currently
Stafford O’Kelly) for resolution.

    

    (d)          Maintenance of
Co-Exclusivity; Termination. Without limiting the foregoing, the parties
agree that the IVD Agreement will contain provisions substantially similar to
those set forth in Section 3.4 of this Agreement requiring annual forecasts and
annual reviews thereof with respect to NeoGenomics’ sales of the Abbott IVD, and
its maintenance of its co-exclusive rights. The parties agree that the IVD
Agreement will permit Abbott, in its sole discretion to: (i) in a manner
consistent with Section 3.4(c) of this Agreement, convert the IVD Agreement to a
non-exclusive agreement if NeoGenomics’ actual sales of the Abbott IVD in a
given Calendar Year are less than seventy-five percent (75%) of the agreed upon
annual sales forecast for such Calendar Year; and (ii) in a manner consistent
with Section 3.4(d) of this Agreement, limit purchases of the Abbott IVD to
pre-existing customers if NeoGenomics’ actual sales of the Abbott IVD in a given
Calendar Year are less than thirty-five percent (35%) of the agreed upon annual
sales forecast for such Calendar Year.

    

    
      
        
           

        

        
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    9.5          Other Tests. Abbott hereby grants to NeoGenomics a first right to
develop two (2) additional LDTs using Abbott ASRs, other Abbott products and/or
Abbott Intellectual Property relating to the disease states identified in
Exhibit
G (each, an “Additional Test”). NeoGenomics will notify Abbott in writing within
ninety (90) days after the Effective Date if it elects to commence negotiations
relating to the first Additional Test described in Exhibit G (the “Initial Decision
Period”). Abbott will notify NeoGenomics in
writing when Abbott believes that its products or intellectual property relating
to other potential Additional Tests are ready to be commercialized, which notice
will describe the applicable products and/or intellectual property in reasonable
detail; provided, that Abbott will not deliver such notice to
NeoGenomics prior to the earlier of June 30, 2010, or the date which is thirty
(30) days after the parties have executed a Subsequent Development Agreement (as
defined below) regarding the first Additional Test described in Exhibit G. If NeoGenomics elects to commence negotiations
relating to an Additional Test other than the first Additional Test described in
Exhibit
G, it will so notify Abbott in writing
within thirty (30) days after its receipt of notice from Abbott relating to such
Additional Test (the “Additional Decision
Period” and together with the Initial
Decision Period, each a “Decision Period”). Subject to the terms hereof, until the
expiration of both the applicable Decision Period and Negotiation Period with
respect to an Additional Test, Abbott shall not pursue negotiations with, nor
negotiate with or furnish information regarding such Additional Test to any
Third Party (except academic collaborators for research purposes). Each date on which NeoGenomics provides written notice
of its desire to commence negotiations regarding an Additional Test is referred
to herein as a “Commencement
Date.” For a period of ninety (90) days
following a Commencement Date (an “Initial Negotiation
Period”), the parties will negotiate
exclusively and in good faith to enter into a definitive agreement (a
“Subsequent
Development Agreement”) providing for the
development and commercialization of the applicable Additional Test;
provided,
however, that neither party will be
obligated to enter into such a Subsequent Development Agreement except on
mutually acceptable terms and conditions. The parties intend and agree that each
Subsequent Development Agreement shall be negotiated in good faith based upon
the same guiding principles and economic models that were the basis for this
Agreement, and each Subsequent Development Agreement will, to the extent
applicable in light of the different products and intellectual property at
issue, contain terms and conditions that are similar to the terms and conditions
in this Agreement. If, for any reason, the parties do not execute a Subsequent
Development Agreement for a particular Additional Test, the parties rights and
obligations under this Section 9.5 shall continue with respect to the other
Additional Tests. If the parties execute Subsequent Development Agreements
relating to any two (2) of the Additional Tests, the parties’ respective rights
and obligations under this Section 9.5 shall terminate with respect to the other
Additional Tests. If NeoGenomics does not notify Abbott of its election to
commence negotiations for an Additional Test within the above thirty (30) day
or ninety (90)  day period, as applicable, Abbott will be free to enter into one or more
agreements with one or more Third Parties regarding the development and
commercialization of such Additional Test. If the parties do not execute a
Subsequent Development Agreement within ninety (90) days after the Commencement
Date for an Additional Test, the matter will be escalated to the
President of NeoGenomics (currently Robert Gasparini) and the President of
Abbott (currently Stafford O’Kelly) for resolution, and such individuals shall
have an additional fifteen (15) days (the “Escalated Negotiation
Period”) in which to negotiate in good faith the terms of such Subsequent
Development Agreement. If such individuals are unable to agree upon the terms of
such Subsequent Development Agreement within such additional fifteen (15) day
period, Abbott will be free to enter into one or
more agreements with one or more Third Parties regarding the development and
commercialization of the applicable Additional Test, and NeoGenomics will have
no further rights with respect thereto.

    

    
      
        
           

        

        
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    9.6          Third Party Proposal.
If at any time during the term of this Agreement, there is a Third Party
Proposal, then NeoGenomics will notify Abbott in writing of such Third Party
Proposal thirty (30) days prior to
acceptance of such Third Party Proposal, such notice to include a
reasonably detailed description of such Third Party Proposal including the
identity of the Third Party involved to the extent not precluded by a
confidentiality agreement with such Third Party and a description of the
relevant terms of such Third Party Proposal including the name of the Third
Party if such Third Party is one of the parties listed on Exhibit I. As used
herein, “Third Party
Proposal” means: any written offer with
respect to any: (i) merger, consolidation, other business combination or
similar transaction involving NeoGenomics or any of its subsidiaries; (ii) sale,
lease, license or other disposition, directly or indirectly, whether by merger,
consolidation, business combination, share exchange, joint venture or otherwise,
of assets of NeoGenomics (including equity interests of any of its subsidiaries)
or any subsidiary of NeoGenomics representing fifty percent (50%) or more of the consolidated assets, revenues
or net income of NeoGenomics and its subsidiaries; (iii) sale, lease, license or
other disposition, directly or indirectly, of all or substantially all of
NeoGenomics’ assets that are used in designing, developing, validating,
marketing, selling, performing or billing for the Melanoma LDT; (iv) issuance or
sale or other disposition (including by way of merger, consolidation, business
combination, share exchange, joint venture or similar transaction) of equity
interests representing fifty percent (50%) or more of the voting power of NeoGenomics;
(v) transaction or series of transactions in which any Third Party would acquire
beneficial ownership or the right to acquire beneficial ownership, or any group
(each as defined in Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder) has been formed
which beneficially owns or has the right to acquire beneficial ownership, of
equity interests representing fifty percent
(50%) or more of the voting power of
NeoGenomics; or (vi) any combination of the foregoing.

    

    Article
10

    Representations
And Warranties

    

    10.1        Abbott Representations and
Warranties. Abbott represents and warrants to NeoGenomics
that:

    

    (a)           it
has the full power and right to enter into this Agreement and it is not
currently a party to any other agreements that are inconsistent with the
provisions of this Agreement;

    

    (b)           the
Products will be manufactured in accordance with the Specifications, Quality
Systems and GMP Requirements, as required by the Act, all pertinent rules and
regulations of the FDA, and all other applicable national, state and local laws,
regulations, and guidelines;

    

    (c)           the
Products will not be adulterated or misbranded within the meaning of the
Act;

    

    (d)           Abbott
owns or has the exclusive right to grant licenses and sublicenses to the patents
and patent applications listed in Exhibit H;
and

    

    (e)           Abbott
has not granted any licenses or sublicenses to any Third Party under the patents
and patent applications listed in Part 2 of Exhibit H.

    

    10.2        NeoGenomics Representations
and Warranties. NeoGenomics represents and warrants to Abbott
that:

    

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

    

    (a)           it
has the full power and right to enter into this Agreement and it is not
currently a party to any other agreements that are inconsistent with the
provisions of this Agreement; and

    

    (b)           the
Melanoma LDT will be designed, developed, validated, marketed, sold, performed
and billed by NeoGenomics in strict compliance with all applicable laws and
regulations.

    

    10.3        Disclaimers.

    

    (a)           Abbott
makes no representation or warranty of any kind relating to the Melanoma LDT or
any analytical or clinical performance claims concerning the Products (including
the Evaluation Products), including without limitation any claim that the
Products (including the Evaluation Products) are appropriate or suitable for use
in the Melanoma LDT.

    

    (b)          Except
as expressly set forth in this Agreement, Abbott makes no representations or
warranties of any kind, either express or implied, including, but not limited
to, implied warranties of merchantability, fitness for a particular purpose or
non-infringement.

    
       

    

    Article
11

     Intellectual
Property

    

    11.1        Abbott Intellectual
Property. Abbott (or its Affiliate) will be and remain the sole and
exclusive owner of all right, title and interest in and to any and all
Intellectual Property that is owned or developed by Abbott or its
Affiliates.

    

    11.2        NeoGenomics Intellectual
Property. NeoGenomics (or its Affiliate) will be and remain the sole and
exclusive owner of all right, title and interest in and to any and all
Intellectual Property that is: (a) owned or developed by NeoGenomics or its
Affiliates prior to the Effective Date; or (b) developed by NeoGenomics (or its
Affiliate) on or after the Effective Date and does not arise or result from use
or incorporation of the Products in any way.

    

    11.3        Joint Intellectual
Property. Any Intellectual Property developed by NeoGenomics after the
Effective Date that arises or results from, or that uses or incorporates the
Products in any way (including the Melanoma LDT) shall be jointly owned by
NeoGenomics and Abbott. Neither party shall license such jointly owned
Intellectual Property without the prior written consent of the other party,
which shall not be unreasonably withheld.

    

    11.4        No New License
Grants. After the Effective Date, Abbott will not grant to any Third
Party any license or sublicense under the patents and patent applications listed
in Part 2 of Exhibit
H for practice in the Territory in the field of melanoma
diagnosis.

    

    
      
        
           

        

        
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    Article
12

    Confidential
Information

    

    12.1        Confidential
Information. It is contemplated that in the course of the performance of
this Agreement each party may, from time to time, disclose certain trade secrets
and other non-public, proprietary and/or confidential information to the other
(“Confidential
Information”). Each party (the “Receiving Party”)
agrees that it will not disclose Confidential Information received from the
other party (the “Disclosing Party”)
and that it will not use Confidential Information disclosed to it by the
Disclosing Party for any purpose other than to fulfill its obligations under
this Agreement. Confidential Information includes, without limitation: (a)
information constituting trade secrets of either party; (b) information relating
to existing or contemplated products, services, technology, designs, processes,
formulae and research and development (in whatever stage) of either party; (c)
information relating to technology, patent rights or products of either party;
(d) information relating to business plans, methods of doing business, sales or
marketing methods, customer lists, customer usages or requirements of either
party; and (e) any other information disclosed hereunder that is either
identified as confidential or, from the nature of the information or the
circumstances surrounding its disclosure, should reasonably be considered to be
confidential.

    

    12.2        Exclusions.
Confidential Information does not include information that:

    

    (a)           was
already known to the Receiving Party, other than under an obligation of
confidentiality to the Disclosing Party, at the time of disclosure by the other
party;

    

    (b)           is
or becomes generally available to the public or otherwise part of the public
domain other than through the Receiving Party’s breach of this
Agreement;

    

    (c)           was
disclosed to the Receiving Party, other than under an obligation of
confidentiality, by a Third Party who, to the Receiving Party’s knowledge, had
no obligation to the Disclosing Party not to disclose such
information;

    

    (d)           was
developed by the Receiving Party independently and without reference to
Confidential Information received from the Disclosing Party as evidenced by the
Receiving Party’s own written records;

    

    (e)           was
disclosed to the Receiving Party pursuant to the last sentence of Section
9.4(a), solely to the extent used for the purposes described therein;
or

    

    (f)           was
disclosed to the Receiving Party for purposes of prosecuting Intellectual
Property rights arising under Section 11.3, solely to the extent used for the
purposes described therein.

    

    12.3        Term of Confidentiality;
Safeguarding. Except as otherwise agreed in writing, during the term of
this Agreement and for a period of five (5) years following the expiration or
termination of this Agreement for any reason, the Receiving Party shall take at
least the same measures to protect the confidentiality of the Disclosing Party’s
Confidential Information as it takes to protect its own proprietary and
confidential information of like kind and sensitivity, but in no event shall the
Receiving Party use less than reasonable care.

    

    
      
        
           

        

        
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    12.4       Disclosure
Required by Law. In the
event that a Receiving Party is required by applicable law, rule or regulation or by judicial or administrative
process to disclose the Disclosing Party’s Confidential Information, the
Receiving Party will notify the Disclosing Party as promptly as practicable and
allow the Disclosing Party to oppose such process and/or seek protective order
to limit exposure to and dissemination of said Confidential Information. The
Receiving Party will cooperate with the Disclosing Party (at the Disclosing
Party’s expenses) in opposing such process or seeking a protective order. If the
Disclosing Party is unsuccessful, the Receiving Party may disclose the requested
Confidential Information to the minimum extent required by
law.

    

    12.5       Publicity. Neither party shall use the name or
trademarks of the other party in any publicity, advertising or in any written,
verbal or any other form of public disclosure without the express written
consent of the other party. Notwithstanding the foregoing, Abbott agrees that it
will work in good faith with NeoGenomics to develop a standard set of talking
points about the nature of this Agreement that NeoGenomics can use to answer
investor questions related to its relationship with Abbott and that once such
talking points have been approved, NeoGenomics will not be required to seek the
written consent of Abbott to utilize such talking points with investors. Abbott
further agrees that it will work with NeoGenomics to develop a mutually
acceptable written description of this Agreement and the relationship with
Abbott contemplated by this Agreement which can be utilized in NeoGenomics’
parent company’s periodic filings with the SEC, and that once such written
description has been approved by Abbott, NeoGenomics will not need to obtain
further approvals from Abbott to utilize such written description in
NeoGenomics’ parent company’s filings with the SEC, unless there are material
changes to such description.

    

    12.6       Existence of
the Agreement. The
existence of and the relationship created under this Agreement is confidential
and shall be treated as Confidential Information pursuant to the terms of this
Agreement.

    

    12.7       Required
Securities Disclosure.
Notwithstanding anything to the contrary in this Agreement, if NeoGenomics is
required to file a copy of this Agreement with the Securities and Exchange
Commission, it shall provide Abbott with as much notice as possible and allow
Abbott a reasonable opportunity to review and comment on any redacted version of
this Agreement before it is filed by NeoGenomics, provided that NeoGenomics will
bear the sole responsibility of ensuring its own compliance with applicable
securities laws.

    

    Article 13

     Indemnification And
Liability

    

    13.1       Indemnification
by Abbott. Abbott will
indemnify, defend and hold harmless NeoGenomics and its Affiliates, employees,
officers, directors and agents (collectively, the “NeoGenomics
Indemnitees”) from and
against any suit, proceeding, claim, liability, loss, damage, fines, penalties,
costs or expense, including reasonable attorneys’ fees (collectively,
“Losses”) that any of the NeoGenomics
Indemnitees may hereinafter incur, suffer, or be required to pay arising out of
or resulting from: (a) any breach by Abbott of the terms of this Agreement; or
(b) Abbott’s negligence or willful misconduct. The foregoing indemnity shall not
apply to the extent that any Losses arise or result from the negligence or
willful misconduct of the NeoGenomics Indemnitees.

    

    
      
        
           

        

        
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    13.2       Indemnification
by NeoGenomics. NeoGenomics
will indemnify, defend and hold harmless Abbott and its Affiliates, employees,
officers, directors and agents (collectively, the “Abbott
Indemnitees”) from and
against any Losses that any of the Abbott Indemnitees may hereinafter incur,
suffer, or be required to pay arising out of or resulting from: (a) the design,
development, validation, marketing, sale, performance or billing of the Melanoma
LDT; (b) any breach by NeoGenomics of the terms of this Agreement; or (c)
NeoGenomics’ negligence or willful misconduct. The foregoing indemnity shall not
apply to the extent that any Losses arise or result from the negligence or
willful misconduct of the Abbott Indemnitees.

    

    13.3       Cooperation
and Notice Requirements.
With respect to any claim for which a party seeks indemnification from the other
hereunder, the party seeking indemnification will: (a) provide prompt notice to
the other of the claim for which indemnification is sought and tender to it the
defense of such claim; and (b) provide reasonable cooperation and assistance to
the indemnifying party in the defense of such claim. Neither party will be bound
by any settlement agreement entered into without such party’s prior written
consent, which shall not be unreasonably withheld.

    

    13.4       Termination
of Indemnification Obligations. All obligations for indemnification on
the part of parties hereto shall expire three (3) years from the date of
termination of this Agreement, except with respect to claims already notified to
the other party prior to the end of such three (3) year
period.

    

    13.5       Insurance.

    

    (a)           NeoGenomics will obtain and maintain
during the term of the Agreement and for a period of two (2) years after
expiration or termination of this Agreement product liability and general
comprehensive liability insurance covering bodily injury and property damage in
an amount of not less than $1.0 million per occurrence and $5.0 million in the
aggregate.

    

    (b)           Abbott represents that it is
self-insured for product liability and general liability, and that it has and
will maintain such coverage for the term of this Agreement and for a period of
two (2) years after the expiration or termination of this Agreement. Such
self-insurance is in an amount which is reasonable and customary in the global
pharmaceutical and medical products industry for companies of comparable size
and activities.

    

    
      
        
           

        

        
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    13.6       Limitation
of Liability. In no event
shall either party be liable to the other party for any indirect, incidental,
punitive, special, exemplary or consequential damages, whether based upon a
claim or action of contract, warranty, negligence, strict liability or other
tort, a product claim, or otherwise that arises out of or is related to this
Agreement. In addition, except for liability arising from any intentional breach
of this Agreement, fraud, gross negligence or willful misconduct on the part of
Abbott, Abbott’s maximum liability to NeoGenomics under this Agreement will
not exceed
Fifteen Million Dollars ($15,000,000). The forgoing
limitations will not apply: (a) to breaches of the parties’ confidentiality
obligations under Article 12; or (b) where such indirect, incidental, punitive,
special, exemplary or consequential damages are payable to a Third Party and
subject to indemnification pursuant to this Article 13. The allocations of
liability in this paragraph represent the agreed and bargained-for understanding
of the parties and the Purchase Price for the Products reflects such
allocations.

    

    Article 14

     Term And
Termination

    

    14.1       Term. This Agreement shall become
effective on the Effective Date, and unless sooner terminated in accordance with
the terms herein, this Agreement shall remain in effect until December 31, 2019
(the “Initial
Term”). Thereafter this Agreement shall automatically renew and continue
in effect for successive renewal terms of two (2) years each (each a
“Renewal Term”)
unless twelve (12) months prior to the termination of the Initial Term of the
Agreement or any Renewal Term thereof, either party provides written notice to
the other party that it will not renew the Agreement at the end of said Initial
Term or Renewal Term. Notwithstanding the foregoing, Abbott agrees that if
NeoGenomics has continued to meet the threshold for exclusivity defined in
Section 3.4(b) for the Calendar Year immediately preceding the year in which the
Initial Term or any Renewal Term comes due, Abbott will renew this Agreement at
the end of the Initial Term or such Renewal Term, as the case may be, pursuant
to this Section 14.1; provided, however, nothing in
the section shall obligate Abbott beyond two (2) renewal terms of two (2) years
each.

    

    14.2       Breach. In the event that either party commits
a material breach or default of any of its obligations hereunder (excluding NeoGenomics’ failure to meet
the Annual Forecast), the
other party may give the breaching party written notice of such material breach
or default, and shall request that such material breach or default be cured as
soon as reasonably practicable. In the event that the breach or default is not
cured within ninety (90) days after the date of the non-breaching party’s notice
thereof, the non-breaching party may terminate this Agreement immediately upon
written notice to the breaching party.

    

    14.3       Insolvency. Either party may terminate this
Agreement on the liquidation, bankruptcy or insolvency of the other party or the
appointment of a receiver or trustee for the property of the other party, or if
the other party makes an assignment for the benefit of creditors, whether any of
the aforesaid events are the outcome of a voluntary act or otherwise. In the
event that a party files for bankruptcy and such party’s trustee rejects this
Agreement, the other party may elect to retain its rights under this Agreement
upon appropriate written notification to said trustee.

    

    
      
        
           

        

        
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    14.4       Change of
Control.

    

    (a)           Abbott may terminate this Agreement upon
ninety (90) days written notice to NeoGenomics following a Change of Control
involving NeoGenomics (or its permitted successors or assigns) and any of the
companies set forth in Exhibit
I, or their successors or
assigns. Abbott’s right to terminate this Agreement pursuant to this Section
14.4 will continue until the earlier of (i) five (5) years following a Change of
Control involving NeoGenomics (or its permitted successors or assigns) and any
of the companies set forth in Exhibit
I, or their successors or
assigns and (ii) the date that is ninety (90) days after the Abbott IVD is first
available for commercial sale in the United States.

    

    (b)           If Abbott terminates this Agreement
pursuant to this Section 14.4, as NeoGenomics’ sole and exclusive remedy for
such termination, Abbott will pay to NeoGenomics (or its successor) a
termination payment equal to the greater of: (i) all of the reasonable direct costs
actually incurred by NeoGenomics (and subject to verification and audit by
Abbott or its independent accounting firm) in designing, developing, validating,
marketing, and performing the Melanoma LDT through the date of termination, not
to exceed Seven Million Five Hundred Thousand Dollars ($7,500,000); or (ii) the
sum of:

    

    
      	
               
      

            	
              (A)

            	
              two and three tenths (2.3)
      multiplied by the Unaudited Revenue realized by NeoGenomics for the twelve
      (12) month period immediately preceding the effective date of the Change
      of Control (the “Change
      of Control Base Revenue Amount”);
  plus

            

    

    

    
      	
               
      

            	
              (B)

            	
              one and five tenths (1.5)
      multiplied by an amount equal to: (1) the Unaudited Revenue realized by
      NeoGenomics and/or NeoGenomics’ successor or acquirer, as the case may be,
      for the twelve (12) month period immediately preceding the date on which
      Abbott elects to terminate this Agreement pursuant to this Section 14.4
      (the “Termination
      Date Revenue Amount”), less (2) the Change of Control
      Base Revenue Amount.

            

    

    

    (c)           Notwithstanding the foregoing, if the
Termination Date Revenue Amount is less than the Change of Control Base Revenue
Amount, then the termination payment payable by Abbott pursuant to this Section
14.4 shall be an amount equal to two and three tenths (2.3) multiplied by
the Termination Date Revenue Amount.

    

    
      
        
           

        

        
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    (d)           If Abbott terminates this Agreement and
pays the foregoing termination payment, within thirty (30) days thereafter, NeoGenomics will
transfer to Abbott all of the dedicated equipment (i.e., greater than fifty percent (50%)
usage), supplies, customer lists, sales aids, marketing materials and other
relevant sales, marketing and promotional materials related to the Melanoma LDT,
and Abbott will have the right (but not the obligation) to hire any of
NeoGenomics’ salespeople who are dedicated (on a full time equivalent basis) to
promoting and selling the Melanoma LDT. If a Change of Control does not involve
any of the companies set forth in Exhibit
I, then this Agreement will
continue in full force and effect and be binding upon Abbott and NeoGenomics (or
its successor in interest following the Change of Control) in accordance with
its terms. If a Change of Control involves any of the companies set forth in
Exhibit
I, but Abbott elects not to
terminate this Agreement pursuant to this Section 14.4, then this Agreement will
continue in full force and effect and be binding upon Abbott and NeoGenomics (or
its successor in interest following the Change of Control) in accordance with
its terms; provided,
however, that in such
event, NeoGenomics (or its successor) will no longer have the rights, and Abbott
will no longer have the obligations, set forth in Section 9.5, except to the
extent that NeoGenomics exercised such rights and Abbott’s obligations accrued
under such sections prior to termination pursuant to this Section
14.4.

    

    14.5       Change in
Law. If, in the reasonable opinion of
Abbott’s legal counsel (taking into account all of Abbott’s and its Affiliates’
various businesses and the legal and regulatory risks facing such businesses),
there is a change in applicable law (whether by statute, regulation, judicial or
administrative decision, informal policy guidance, warning letters or otherwise)
that prohibits the manufacture, marketing, promotion or sale of the Products or
the design, development, validation, marketing, performance or sale of the
Melanoma LDT or LDTs in general and NeoGenomics has received an opinion of
Abbott’s counsel that the manufacture, marketing, promotion or sale of the
Products or the design, development, validation, marketing, performance or sale
of the Melanoma LDT or LDTs are prohibited, then Abbott and NeoGenomics will
negotiate in good faith to amend this Agreement to reflect the anticipated
impact of such events; provided, however, that if
the parties are unable to reach agreement regarding such an amendment within
ninety (90) days of good faith negotiations, Abbott will have the right to
terminate this Agreement upon written notice to NeoGenomics.

    

    14.6       Force
Majeure. Either party may
terminate this Agreement upon written notice to the other party if the other
party’s performance of its obligations hereunder is prevented for more than one
hundred eighty (180) days due to a force majeure condition, as further described
in Section 15.1.

    

    14.7       IVD
Agreement. This Agreement
will terminate automatically on the date that the IVD Agreement is executed
between the parties.

    

    14.8       Other
Provisions. In addition to
the termination provisions set forth in this Article 14, this Agreement may be
terminated in accordance with any other provision hereof that expressly gives
either party a right to terminate.

    

    14.9       Post
Termination. Following the
expiration or termination of this Agreement according to its terms (unless
terminated automatically pursuant to Section 14.7 or by Abbott pursuant to
Section 14.2, 14.3 or 14.4), Abbott and NeoGenomics agree to use commercially
reasonable efforts to ensure that NeoGenomics can continue to meet its
customers’ requirements for the Melanoma LDT.

    

    14.10     Survival. Termination of this Agreement shall
not relieve either party of any obligations accrued prior to termination.
Articles 1, 10, 11, 12, 13, 14 and 15, and Sections 3.5, 7.6 (subject to the
time periods contained therein), 7.7, 8.1, 8.3 and 9.3 shall survive termination
or expiration of this Agreement for any reason.

    

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

    

    Article 15

    Miscellaneous

    

    15.1       Force
Majeure. Neither party
shall be liable to the other party for damages or losses on account of failure
of performance (other than a failure to make payments when due) if such failure
is occasioned by government action, war, terrorism, fire, explosion, flood,
epidemic, strike, lockout, embargo, shortage of materials or utilities, vendor
failure to supply, act of God or any other cause beyond the affected party’s
reasonable control, provided that the affected party uses commercially
reasonable efforts to avoid the force majeure condition and to remedy the
condition as quickly as possible. The affected party will give the other party
prompt written notice of the occurrence of any force majeure condition, the
nature thereof, and the extent to which the affected party will be unable to
perform its obligations under this Agreement. Such excuse will continue as long
as the force majeure condition continues. Upon cessation of such condition, the
affected party will promptly resume performance under this
Agreement.

    

    15.2       Assignment. This Agreement shall inure to the
benefit of and be binding upon and enforceable by the parties and their
successors and permitted assigns. However, neither party may assign or delegate
any of its rights or obligations under this Agreement without the prior written
consent of the other party, which will not be unreasonably withheld.
Notwithstanding the foregoing, without the other party’s consent: (a) either
party may assign or delegate its rights or obligations, in whole or in part, to
one or more Affiliates of such party, provided that such assignment will not
relieve the assigning party of any obligations under this Agreement; and (b)
either party may assign or delegate its rights or obligations, in whole but not
in part, under this Agreement to a Third Party in connection with a Change of
Control, subject to Section 14.4.

    

    15.3       Waiver. Any waiver by either party of a breach
or a default of any provision of this Agreement by the other party must be
in writing and will not be
construed as a waiver of any succeeding breach of the same or any other
provision, nor shall any delay or omission on the part of either party to
exercise or avail itself of any right, power or privilege that it has or may
have hereunder operate as a waiver of any
right, power or privilege by such party.

    

    15.4       Severability. If any part of this Agreement is
declared invalid or unenforceable by any court of competent jurisdiction, such
declaration shall not affect the remainder of the Agreement and the invalidated
provision shall be revised in a manner that will render such provision valid
while preserving the parties’ original intent to the maximum extent
possible.

    

    15.5       Independent
Contractors. The parties
are independent contractors
and nothing in this Agreement is intended to, or shall be construed to,
constitute a partnership, joint venture or agency relationship between the
parties. Neither party shall have the authority to make any statements,
representations or commitments of any kind, or to take any action, which
shall be binding on the other, without the prior written consent of the other
party. All persons employed by a party shall be employees of such party and not
of the other party and all costs and obligations incurred by reason of any such employment shall
be for the account and expense of such party.

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

    

    15.6       Entire
Agreement. This Agreement,
together with any exhibits hereto, constitutes the entire agreement between the
parties relating to the subject matter hereof and all previous agreements or
arrangements between the parties, written or oral, relating to the subject
matter hereof are superseded.

    

    15.7       Amendment. No amendment, alteration or
modification of any of the provisions of this Agreement will be binding
unless made in writing and
signed by the parties.

    

    15.8       Compliance
with Law. In performing
this Agreement, each party shall comply with all applicable laws, rules and
regulations and shall not be required to perform or omit to perform any act
required or permitted under
this Agreement if such performance or omission would violate the provisions of
any such law, rule or regulation.

    

    15.9       Counterparts. This Agreement may be executed in two
counterparts, each of which shall be deemed an original but both of
which together shall
constitute one and the same instrument.

    

    15.10     Governing
Law. This Agreement shall
be governed by and construed in accordance with the laws of the State of Illinois, without regard to its
conflicts of laws principles.

    

    15.11     Alternative
Dispute
Resolution. The parties
agree that any dispute that arises in connection with this Agreement shall be
settled by binding Alternative Dispute Resolution in the manner described in
Exhibit
J.

    

    15.12     Notices. All notices required or permitted
under this Agreement must
be in writing and sent to the address or facsimile number identified below.
Notices must be given: (a) by personal delivery, with receipt acknowledged; (b)
by facsimile followed by hard copy delivered by the methods under (c) or (d);
(c) by prepaid certified or registered
mail, return receipt requested; or (d) by prepaid reputable overnight delivery
service. Notices will be effective upon receipt. Either party may change its
notice address by providing the other party written notice of such change. Notices shall be delivered as
follows:

    

    
      
        	
                If to
    Abbott:

              	
                Abbott Molecular
      Inc.

              
	 
      	
                Attention: Senior Director,
      Business Development & Licensing

              
	 
      	
                1300 East Touhy
      Avenue

              
	 
      	
                Des Plaines, Illinois
      60018-3315

              
	 
      	
                Fax: (224)
      361-7054

              

      

    

    

    
      
        
           

        

        
          32

          
            

          

        

        
           

        

      

    

    

    
      
        
          	
                  with a copy
    to:

                	
                  Abbott
    Laboratories

                
	 
      	
                  Attention: DVP, Commercial Legal
      Operations

                
	 
      	
                  100 Abbott Park
      Road

                
	 
      	
                  Dept. 32MP, Bldg.
      AP6A-2

                
	 
      	
                  Abbott Park, Illinois
      60064-6049

                
	 
      	
                  Fax: (847)
      938-1206

                
	 
      	 
      
	
                  If to
      NeoGenomics:

                	
                  NeoGenomics Laboratories,
      Inc.

                
	 
      	
                  Attention: Robert Gasparini, President

                
	 
      	
                  12707 Commonwealth Drive, Suite
      9

                
	 
      	
                  Fort Myers, Florida
      33913

                
	 
      	
                  Fax: (239)
      768-0711

                
	 
      	 
      
	
                  copy to:

                	
                  K&L Gates
      LLP

                
	 
      	
                  Attention: Clayton E. Parker,
      Esq.

                
	 
      	
                  200 South Biscayne Boulevard,
      Suite 3900

                
	 
      	
                  Miami, Florida
      33131-2399

                
	 
      	
                  Fax: (305)
      358-7095

                

        

      

    

    

    15.13     Expenses. All costs and expenses incurred with
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party which shall have incurred the same, and the other party shall
no liability thereto.

    

    15.14     Headings. The titles of the Articles and Sections
contained in this Agreement are for convenience only and shall not be considered
in construing this Agreement.

    

    *     *     *

    

    Signature page
follows.

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

    

    In Witness
Whereof, the parties have
caused this Agreement to be executed as of the Effective
Date.

    

    
      
        
          	
                  Abbott Molecular
      Inc.

                	 
      	
                  NeoGenomics Laboratories,
      Inc.

                
	 
      	 
      	 
      	 
      	 
      
	
                  By:

                	
                  /s/Stafford O’Kelly

                	 
      	
                  By:

                	
                  /s/Douglas
    VanOort

                
	 
      	
                  Stafford O’Kelly

                	 
      	 
      	
                  Douglas
    VanOort

                
	 
      	
                  President

                	 
      	 
      	
                  Chairman and Chief Executive
      Officer

                

        

      

    

    

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

    

    Exhibit A

    

    Products

    

    To be identified within one hundred
twenty (120) days

    after the Effective Date pursuant to
Section 2.2.

    

    Exclusive Products

    

    To be designated pursuant to Section
3.2.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit B

    

    Academic
Collaborators

    

    [***]

    [***]

    [***]

    [***]

     

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

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit C

    

    Model Forecast

    

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	 	
                                2009

                              	 	 	
                                2010

                              	 	 	
                                2011

                              	 	 	
                                2012

                              	 	 	
                                2013

                              	 	 	
                                2014

                              	 	 	
                                2015

                              	 	 	
                                2016

                              	 	 	
                                2017

                              	 	 	
                                2018

                              	 	 	
                                2019

                              	 
	
                                Service
      Revenue ($,000s)

                              	 	$ 	240	 	 	$ 	7,740	 	 	$ 	23,100	 	 	$ 	45,462	 	 	$ 	73,476	 	 	$ 	102,900	 	 	$ 	127,980	 	 	$ 	146,724	 	 	$ 	159,132	 	 	$ 	168,636	 	 	$ 	178,140	 

                      

                    

                     

                  

                

              

            

          

        

      

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit D

    

    Section 3.4 Examples

    

    Example
1

    

    Abbott
and NeoGenomics agree to an Annual Forecast for 2011 and 2012. NeoGenomics’
Service Revenue is 79% of the forecasted Service Revenue in 2011 and 70% of the
forecasted Service Revenue in 2012. Using Model Forecast numbers as an
example:

    

    
      
        
          
            
              	 
      	 	
                      2011

                    	 	 	
                      2012

                    	 
	
                      Forecasted
      Service Revenue ($M)

                    	 	$ 	23,100	 	 	$ 	45,462	 
	
                      Service
      Revenue ($M)

                    	 	$ 	18,249	 	 	$ 	31,823	 
	
                      Achievement

                    	 	  	79	% 	 	  	70	% 

            

          

        

      

    

    

    Because
NeoGenomics’ Service Revenue in 2011 is above 75% of the forecasted Service
Revenue for 2011, pursuant to Section 3.4(b), NeoGenomics will maintain
exclusivity for 2012.

    

    Because
NeoGenomics’ Service Revenue in 2012 is below 75% of the forecasted Service
Revenue for 2012, at the beginning of 2013 Abbott has two options:

    

    (1)
Abbott may, pursuant to Section 3.4(b), in its sole discretion, allow
NeoGenomics to maintain exclusivity despite its 70% performance in 2012. In this
event, pursuant to Section 3.4(a)(ii)(B), the Annual Forecast for 2013, 2014 and
2015 must be at least equal to the actual Service Revenue from the prior year
(i.e., 2012)(in this
case $31,823), divided by
0.75. Accordingly, the Service Revenue forecasted in the 2013 Annual Forecast
would (at a minimum) be as follows:

    

    
      
        
          
            	 
      	 	
                    2013

                  	 
	
                    Forecasted
      Service Revenue ($M)

                  	 	$ 	42,431	* 

          

        

      

    

    

                                                                                                 *$31,823/0.75
= $42,431

    

    To
maintain exclusivity in 2014, NeoGenomics must achieve at least 75% of the
forecasted Service Revenue ($42,431 x 75% =
$31,823).

    

    (2)
Abbott may, pursuant to Section 3.4(c), convert the Agreement to a non-exclusive
agreement. In this event, exclusivity will no longer available to NeoGenomics
for the remaining term of the Agreement. Accordingly, there will be only two
status levels going forward: non-exclusivity or limitation to Pre-Existing
Customers.

    

    If Abbott
elects to convert the Agreement to a non-exclusive agreement pursuant to Section
3.4(c), then in 2013 NeoGenomics’ Service Revenue must be 45% or more of the
Service Revenue forecasted in the 2013 Annual Forecast in order for NeoGenomics
to maintain its non-exclusive rights.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    If
NeoGenomics’ Service Revenue is less than 45% of Service Revenue forecasted in
2013, Abbott has two options: (a) Abbott may, pursuant to Section 3.4(c) in its
sole discretion, allow NeoGenomics to maintain non-exclusivity despite its less
than 45% performance in 2013; or (b) Abbott may, pursuant to Section 3.4(d),
make the Existing Customer Election, in which case NeoGenomics will be entitled
to continue purchasing Products only to the extent necessary to serve its
Pre-Existing Customers.

    

    Example
2

    

    Abbott
and NeoGenomics agree to an Annual Forecast for 2013, 2014 and 2015. For
purposes of this example, assume NeoGenomics has maintained its exclusivity so
far pursuant to Section 3.4(b).

    

    NeoGenomics’
Service Revenue is 65% of the forecasted Service Revenue in 2013 Using Model
Forecast numbers as an example:

    

    
      
        
          
            	 
      	 	
                    2013

                  	 	 	
                    2014

                  	 	 	
                    2015

                  	 
	
                    Forecasted
      Service Revenue ($M)

                  	 	$ 	73,476	 	 	$ 	102,900	 	 	$ 	127,980	 
	
                    Service
      Revenue ($M)

                  	 	$ 	47,759	 	 	 	 	 	 	 	 	 
	
                    Achievement

                  	 	 	65	% 	 	 	 	 	 	 	 	 

          

        

      

    

    

    Because
NeoGenomics’ Service Revenue in 2013 is below 75% of the forecasted Service
Revenue for 2013, at the beginning of 2014 Abbott has two options:

    

    (1)
Abbott may, pursuant to Section 3.4(b), in its sole discretion, allow
NeoGenomics to maintain exclusivity despite its 65% performance in 2013. In this
event, the 2014 and 2015 Annual Forecasts would not change.

    

    (2)
Abbott may, pursuant to Section 3.4(c) convert the Agreement to a non-exclusive
agreement. In this event, exclusivity will no longer available to NeoGenomics
for the remaining term of the Agreement. Accordingly, there will be only two
status levels going forward: non-exclusivity and limitation to Pre-Existing
Customers.

    

    Assume
that, pursuant to Section 3.4(c), Abbott converts the Agreement to a
non-exclusive agreement and, pursuant to Section 3.4(f), Abbott and NeoGenomics
agree to lower the 2014 and 2015 Annual Forecasts as follows:

    

    
      
        
          
            	 
      	 	
                    2014

                  	 	 	
                    2015

                  	 
	
                    Forecasted
      Service Revenue ($M)

                  	 	$ 	72,000	 	 	$ 	98,900	 

          

        

      

    

    

    In 2014,
NeoGenomics’ Service Revenue must be at least 45% of the Service Revenue
forecasted in the 2014 Annual Forecast (i.e., $72,000 x 45%
= $32,400) for NeoGenomics to maintain its non-exclusive
rights. If NeoGenomics’ Service Revenue for 2014 is less than $32,400, Abbott may make the
Existing Customer Election.

     

    
      
        
           

        

        
          D-2

          
            

          

        

        
           

        

      

    

    

    Assuming
Abbott does not make the Existing Customer Election for 2014, in 2015,
NeoGenomics’ Service Revenue must be at least 45% of the Service Revenue
forecasted in the 2015 Annual Forecast (ie., $98,900 x 45% =
$44,505) for NeoGenomics to maintain its non-exclusive rights. If
NeoGenomics’ Service Revenue for 2015 is less than $44,505, Abbott may make the
Existing Customer Election.

     

    
      
        
           

        

        
          D-3

          
            

          

        

        
           

        

      

    

    

    Exhibit E

    

    Purchase Price And
Terms

    

    Base
Purchase Price.

    

    The Base
Price shall be as
follows:

    

    
      
        
          	
                   

                  Year

                	 	
                  Base Price

                  (per unit of
      Product)

                	 
	
                  [***]

                	 	 	[***]	 
	
                  [***]

                	 	 	[***]	 
	
                  [***]

                	 	 	[***]	 
	
                  [***]

                	 	 	[***]	 
	
                  [***]

                	 	 	[***]	 
	
                  [***]

                	 	 	[***]	 

        

      

    

    

    The Base Prices stated above assume that
NeoGenomics will identify [***] Products for inclusion in the Melanoma
LDT. If NeoGenomics elects at any time and for any reason to use a different
number of Products in the Melanoma LDT then the parties will renegotiate the
Base Prices in good faith.

    

    Premium
Purchase Price.

    

    The Premium
Price will be paid per unit
of Product and will vary each Calendar Quarter depending on NeoGenomics’ actual
Quarterly Unit Purchases in accordance with the following
table:

    

    
      
        
          
            
              
                
                  
                    	
                            Actual
      Quarterly

                            Unit
    Purchases

                          	 	
                            Premium Price

                            (per unit of
      Product)

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 
	
                            [***]

                          	 	 	
                            [***]

                          	 

                  

                

              

            

          

        

      

    

    

    The Premium Prices stated above assume
that NeoGenomics will identify [***] Products for inclusion in the Melanoma
LDT. If NeoGenomics elects at any time and for any reason to use a different
number of Products in the Melanoma LDT, then the parties will renegotiate the
Premium Prices listed above in good faith.

    

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

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    At least [***] prior to the end of each Calendar
Quarter, NeoGenomics will submit to Abbott a written good faith estimate of its
anticipated Quarterly Unit Purchases of Products based on the volume of Melanoma
LDTs it expects to perform for the following Calendar Quarter (the “Quarterly
Forecast”). The estimated
Premium Price payable by NeoGenomics for all Products ordered by NeoGenomics
during each Calendar Quarter (the “Estimated
Premium Price”) will be
determined, invoiced and paid, in accordance with the above table based on the
estimated Quarterly Unit Purchases shown in the Quarterly Forecast for that
Calendar Quarter. Within [***] after the end of each Calendar Quarter,
NeoGenomics will submit to Abbott a written report setting forth NeoGenomics’
actual Quarterly Unit Purchases for the previous Calendar Quarter (the
“Quarterly
Report”). If the Premium
Price based on the actual Quarterly Unit Purchases for such quarter (as shown in
the Quarterly Report) is greater than the Estimated Premium Price, then within
[***] business days of delivery of the
Quarterly Report, NeoGenomics will remit a payment to Abbott for the difference
between the amount that was paid for all Products ordered during the previous
Calendar Quarter at the Estimated Premium Price and the amount that would have
been payable for all such Products at the Premium Price. If the Premium Price is
lower than the Estimated Premium Price, then Abbott will credit NeoGenomics for
the difference between the amount that was paid for all Products ordered during
the previous Calendar Quarter at the Estimated Premium Price and the amount that
would have been payable for all such Products at the Premium Price. If Abbott
converts this Agreement to a non-exclusive agreement pursuant to Section 3.4(c)
or makes the Existing Customer Election pursuant to Section 3.4(d), then
NeoGenomics will no longer be required to provide Quarterly Forecasts pursuant
to this paragraph, but will still comply with the forecasting and ordering
procedures set forth in Article 5.

    

    Examples.

    

    The following examples are provided for
illustration purposes only:

    

    
      	
               
      

            	
              (i)

            	
              For the second Calendar Quarter of
      2011, the Quarterly Forecast shows estimated Quarterly Unit Purchases of
      [***]. All Products ordered during that
      second Calendar Quarter will be at a Purchase Price consisting of a Base
      Price of [***] and an Estimated Premium Price of
      [***]. The Quarterly Report for the
      second Calendar Quarter of 2011 shows actual Quarterly Unit Purchases of
      [***] for the second Calendar Quarter.
      The Premium Price is still [***] so no additional amounts are
      owed.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              For the third Calendar Quarter of
      2012, the Quarterly Forecast shows estimated Quarterly Unit Purchases of
      [***]. All Products ordered during that
      third Calendar Quarter will be at a Purchase Price consisting of a Base
      Price per Product of [***] and an Estimated Premium Price
      per Product of [***]. The Quarterly Report for the
      third Calendar Quarter of 2012 shows actual Quarterly Unit Purchases of
      [***] for the third Calendar Quarter.
      Based on the actual Quarterly Unit Purchases shown in the Quarterly
      Report, the Premium Price per Product would have been [***]. NeoGenomics owes Abbott an
      additional [***] per Product ordered during the
      third Calendar Quarter of
2012.

            

    

    
       

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

    

    
      
        
           

        

        
          E-2

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (iii)

            	
              For the fourth Calendar Quarter of
      2013, the Quarterly Forecast shows estimated Quarterly Unit Purchases of
      [***]. All Products ordered during that
      fourth Calendar Quarter will be at a Purchase Price consisting of a Base
      Price per Product of [***] and an Estimated Premium Price
      per Product of [***]. The Quarterly Report for the
      fourth Calendar Quarter of 2013 shows actual Quarterly Unit Purchases of
      [***] for the fourth Calendar Quarter.
      Based on the actual Quarterly Unit Purchases shown in the Quarterly
      Report, the Premium Price per Product would have been [***]. Abbott will credit NeoGenomics
      for [***] per Product ordered during the
      fourth Calendar Quarter of
2013.

            

    

    

    Purchase
Price Adjustments.

    

    [***]

     

    
       

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

    

    
      
        
           

        

        
          E-3

          
            

          

        

        
           

        

      

    

    

    Exhibit F

    

    Release Testing

    

    To be provided upon
identification of Products
pursuant to Section 2.2.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit G

    

    Additional Tests

    

    
      [***]

    

    [***]

    [***]

    [***]

     

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

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit H

    

    Patents and Patent
Applications

    

    Part 1 – FISH Platform
patents

     

    
      
        
          
            
              
                
                  
                    	
                            United States Application Number or

                            United States Patent Number

                          	 
      	
                            Filing or Issue Date

                          
	
                            Patent
      No. 5,491,224

                          	 
      	
                            Issued
      February 13, 1996

                          
	
                            Patent
      No. 5,663,319

                          	 
      	
                            Issued
      September 2, 1997

                          
	
                            Patent
      No. 5,776,688

                          	 
      	
                            Issued
      July 7, 1998

                          
	
                            Patent
      No. 5,789,161

                          	 
      	
                            Issued
      August 4, 1998

                          
	
                            Patent
      No. 6,277,569

                          	 
      	
                            Issued
      August 21, 2001

                          
	
                            Patent
      No. 6,569,626

                          	 
      	
                            Issued
      May 27, 2003

                          
	
                            Patent
      No. 5,447,841

                          	 
      	
                            Issued
      September 5, 1995

                          
	
                            Patent
      No. 5,756,696

                          	 
      	
                            Issued
      May 26, 1998

                          
	
                            Patent No. RE 40,494 (of US 6,344,315)

                          	  	
                            Issued February 5, 2002

                          
	
                            Patent
      No. 6,596,479

                          	 
      	
                            Issued
      July 22, 2003

                          
	
                            Patent
      No. 6,607,877

                          	 
      	
                            Issued
      August 19, 2003

                          
	
                            Patent
      No. 7,115,709

                          	 
      	
                            Issued
      October 3, 2006

                          
	
                            Patent
      No. 6,203,977

                          	 
      	
                            Issued
      March 20,
2001

                          

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    Part 2 – Melanoma Patents

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                United States Application Number or

                                United States Patent Number

                              	 
      	
                                Filing or Issue Date

                              
	
                                Patent
      No. 6,465,180

                              	 
      	
                                Issued
      10/15/2002

                              
	
                                Patent
      No. 7,470,508

                              	 
      	
                                Issued
      12/30/2008

                              
	
                                Application
      No. 60/859,408

                              	 
      	
                                Filed
      11/15/2006 (Abandoned)

                              
	
                                Application
      No. 11/941,002

                              	 
      	
                                Filed
      11/15/2007

                              
	
                                Application
      No. 60/713,799

                              	 
      	
                                Filed
      09/02/2005 (Abandoned)

                              
	
                                Application
      No. 11/515,505

                              	 
      	
                                Filed
      09/01/2006

                              
	
                                Patent
      No. 6,261,775

                              	 
      	
                                Issued
      07/17/2001

                              
	
                                Patent
      No. 6,455,258

                              	 
      	
                                Issued
      09/24/2002

                              
	
                                Patent
      No. 6,783,944

                              	 
      	
                                Issued
      08/31/2004

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                         

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit I

    

    Change of Control
Parties

    

    [***]

    [***]

    [***]

      

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

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit J

    

    Alternate Dispute Resolution
(ADR)

    

    The parties recognize that from time to
time a dispute may arise relating to either party’s rights or obligations under
this Agreement. The parties agree that any such dispute shall be resolved by the
Alternative Dispute Resolution (“ADR”) provisions set forth in this Exhibit,
the result of which shall be binding upon the parties.

    

    To begin the ADR process, a party first
must send written notice of the dispute to the other party for attempted
resolution by good faith negotiations between their respective presidents (or
their designees) of the affected subsidiaries, divisions, or business units
within twenty-eight (28) days after such notice is received (all references to
“days” in this ADR provision are to calendar days). If the matter has not been
resolved within twenty-eight (28) days after the written notice of dispute, or
if the parties fail to meet within such twenty-eight (28) days, either party may
initiate an ADR proceeding as provided herein. The parties shall have the right
to be represented by counsel at any stage of the ADR
process.

    

    1.            To begin an ADR proceeding, a party
shall provide written notice to the other party of the disputed matter(s) to be
resolved by ADR. Within fourteen (14) days after its receipt of such notice, the
other party may, by written notice to the party initiating the ADR, add
additional disputed matter(s) to be resolved within the same
ADR.

    

    2.            Within twenty-eight (28) days following
the initiation of the ADR proceeding, the parties shall select a mutually
acceptable independent, impartial and conflicts-free neutral to preside over the
resolution of the parties’ disputes in this ADR proceeding. If the parties are
unable to agree on a mutually acceptable neutral within such period, within
thirty-five (35) days following the initiation of the ADR proceeding, each party
will select and notify the other party of one independent, impartial and
conflicts-free neutral and those two neutrals will select a third independent,
impartial and conflicts-free neutral within fourteen (14) days thereafter. None
of the neutrals selected may be current or former employees, officers or
directors of either party, its subsidiaries or affiliates.

    

    3.            No earlier than twenty-eight (28) days
or later than eighty-four (84) days after selection, the neutral(s) shall hold a
hearing to resolve each of the disputed matters identified by the parties. The
ADR proceeding shall take place at a location mutually agreed upon by the
parties. If the parties cannot agree, the neutral(s) shall designate a location
other than the principal place of business of either party or any of their
subsidiaries or affiliates.

    

    4.            At least seven (7) days prior to the
hearing, each party shall submit the following to the other party and the
neutral(s):

    

    (a)            a copy of all exhibits on which such
party intends to rely in any oral or written presentation to the
neutral(s);

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)            a list of any witnesses, including
expert witnesses, such party intends to call at the hearing, and a short summary
of the anticipated testimony of each witness. No witness will be heard at the
hearing unless identified at least seven (7) days prior to the hearing, and no
witness’ testimony will be accepted by sworn declaration or affidavit. Witnesses
must make themselves available for cross-examination by the opposing
party;

    

    (c)            a proposed ruling on each disputed
matter to be resolved, together with a request for a specific damage award or
other remedy for each disputed matter. The proposed rulings and remedies shall
not contain any recitation of the facts or any legal arguments and shall not
exceed one (1) page per issue unless the parties, with the consent of the
neutral(s), otherwise agree. The parties agree that neither side shall seek
as part of its remedy any punitive damages.

    

    (d)            a brief in support of such party’s
proposed rulings and remedies, provided that the brief shall not exceed twenty
(20) pages unless the parties, with the consent of the neutral(s), otherwise
agree.

    

    Except as expressly set forth in
subparagraphs 4(a) - 4(d), and unless otherwise agreed by the parties, no
discovery shall be required or permitted by any means, including depositions,
interrogatories, requests for admissions, or production of
documents.

    

    5.            Unless otherwise agreed by the parties,
the hearing shall be conducted on two (2) consecutive days and shall be governed
by the following rules:

    

    (a)            Each party shall be entitled to five (5)
hours of hearing time to present its case. The neutral(s) shall determine
whether each party has had the five (5) hours to which it is
entitled.

    

    (b)            Each party shall be entitled, but not
required, to make an opening statement, to present regular and rebuttal
testimony, documents or other evidence, to cross-examine witnesses, and to make
a closing argument. Cross-examination of witnesses shall occur immediately after
their direct testimony, and cross-examination time shall be charged against the
party conducting the cross-examination.

    

    (c)            The party initiating the ADR shall begin
the hearing and, if it chooses to make an opening statement, shall address not
only the disputed matters it raised but also any disputed matters raised by the
responding party. The responding party, if it chooses to make an opening
statement, also shall address all disputed matters raised in the ADR.
Thereafter, the presentation of regular and rebuttal testimony and documents,
other evidence, and closing arguments shall proceed in the same
sequence.

    

    (d)            Each party may designate a single
corporate representative to be present for the entirety of the hearing. Except
when testifying, witnesses other than the designated corporate representatives,
shall be excluded from the hearing until closing arguments.

    

    
      
        
           

        

        
          J-2

          
            

          

        

        
           

        

      

    

    

    (e)            Settlement negotiations, including any
statements made therein, shall not, under any circumstances, be admissible
during the hearing. As to all other matters, the neutral(s) shall have sole
discretion regarding the admissibility of any evidence.

    

    6.            Within fourteen (14) days following
completion of the hearing, each party may submit to the other party and the
neutral(s) a post-hearing brief in support of its proposed rulings and remedies,
provided that such brief shall not contain or discuss any new evidence and,
unless otherwise agreed by the parties, shall not exceed ten (10)
pages.

    

    7.            The neutral(s) shall provide a written
ruling on each disputed matter within thirty (30) days following completion of
the hearing. The ruling shall not contain any recitation of the facts or any
legal rationale or otherwise explain the basis of the
ruling.

    

    8.            The neutral(s) shall be paid a
reasonable fee plus expenses. These fees and expenses, along with the reasonable
legal fees and expenses of the prevailing party (including all expert witness
fees and expenses), the fees and expenses of a court reporter and any expenses
for a hearing room, shall be paid as follows:

    

    (a)            If the neutral(s) rule(s) in favor of
one party on all disputed issues in the ADR proceeding, the losing party shall
pay 100% of the prevailing party’s legal fees and expenses.

    

    (b)            If the neutral(s) rule(s) in favor of
one party on some matters and the other party on other matters, the neutral(s)
shall include in their ruling a written determination as to how the parties’
legal fees and expenses shall be allocated between the parties. The neutral(s)
shall allocate legal fees and expenses in a way that bears a reasonable
relationship to the outcome of the ADR proceeding, with the party prevailing on
more matters, or on matters of greater value or gravity, recovering a relatively
larger share of its legal fees and expenses.

    

    9.           The
rulings of the neutral(s) and the allocation of fees and expenses shall be
binding, non-reviewable, and non-appealable, and may be entered as a final
judgment in any court having jurisdiction.

    

    10.           Except
as provided in paragraph 9 or as required by law, the existence of the dispute,
any settlement negotiations, the ADR hearing, any submissions (including
exhibits, testimony, proposed rulings, and briefs), and the neutral(s)’ rulings
shall be deemed Confidential Information. The neutral(s), during the pendency of
the ADR proceeding, shall have the authority to impose sanctions for
unauthorized disclosure of Confidential Information.

    

    11.         All
ADR hearings shall be conducted in the English language.

    

    
      
        
           

        

        
          J-3[Confidential
Treatment Requested. Confidential portions of this document have been
redacted

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

         

      

    

    Exhibit
10.44

    

    AMENDED
AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

    

    between

    

    NeoGenomics
Laboratories, Inc., a Florida Corporation, as Borrower

     

    and

     

    NeoGenomics,
Inc., a Nevada corporation, as Guarantor

     

    and

    

    CAPITALSOURCE
FINANCE LLC

    

    Dated
as of

    

    April
26, 2010

     

    
      

      

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	 
      	 
      	 
      	 
      	
                                                      Page

                                                    
	 	 	 	 
	
                                                      1.

                                                    	
                                                      DEFINITIONS

                                                    	 
      	
                                                      2

                                                    
	 	 	 	 
	 
      	
                                                      1.1.

                                                    	
                                                      General Terms

                                                    	 
      	
                                                      2

                                                    
	 
      	
                                                      1.2.

                                                    	
                                                      Definitions

                                                    	 
      	
                                                      3

                                                    
	 	 	 	 	 
	
                                                      2.

                                                    	
                                                      ADVANCES, PAYMENT AND
    INTEREST

                                                    	
                                                      18

                                                    
	 	 	 
	 
      	
                                                      2.1.

                                                    	
                                                      The Revolving Facility

                                                    	 
      	
                                                      18

                                                    
	 
      	
                                                      2.2.

                                                    	
                                                      The Revolving Loans;
    Maturity

                                                    	 
      	
                                                      19

                                                    
	 
      	
                                                      2.3.

                                                    	
                                                      Revolving Facility Disbursements; Requirement to
      Deliver Borrowing Certificate

                                                    	 
      	
                                                      19

                                                    
	 
      	
                                                      2.4.

                                                    	
                                                      Promise to Pay; Manner of
      Payment

                                                    	 
      	
                                                      19

                                                    
	 
      	
                                                      2.5.

                                                    	
                                                      Repayment of Excess
Advances

                                                    	 
      	
                                                      19

                                                    
	 
      	
                                                      2.6.

                                                    	
                                                      Payments by Lender

                                                    	 
      	
                                                      20

                                                    
	 
      	
                                                      2.7.

                                                    	
                                                      Evidence of Loans

                                                    	 
      	
                                                      20

                                                    
	 	 	 	 	 
	
                                                      3.

                                                    	
                                                      INTEREST AND FEES

                                                    	 
      	
                                                      21

                                                    
	 	 	 	 
	 
      	
                                                      3.1.

                                                    	
                                                      Interest on the Revolving
      Facility

                                                    	 
      	
                                                      21

                                                    
	 
      	
                                                      3.2.

                                                    	
                                                      Commitment Fee

                                                    	 
      	
                                                      21

                                                    
	 
      	
                                                      3.3.

                                                    	
                                                      Unused Line Fee

                                                    	 
      	
                                                      21

                                                    
	 
      	
                                                      3.4.

                                                    	
                                                      Collateral Management Fee

                                                    	 
      	
                                                      21

                                                    
	 
      	
                                                      3.5.

                                                    	
                                                      Computation of Fees; Lawful
      Limits

                                                    	 
      	
                                                      21

                                                    
	 
      	
                                                      3.6.

                                                    	
                                                      Default Rate of Interest

                                                    	 
      	
                                                      22

                                                    
	 	 	 	 	 
	
                                                      4.

                                                    	
                                                      GRANT OF SECURITY INTERESTS

                                                    	 
      	
                                                      22

                                                    
	 	 	 	 
	 
      	
                                                      4.1.

                                                    	
                                                      Security Interest;
    Collateral

                                                    	 
      	
                                                      22

                                                    
	 
      	
                                                      4.2.

                                                    	
                                                      Power of Attorney

                                                    	 
      	
                                                      22

                                                    
	 
      	
                                                      4.3.

                                                    	
                                                      Further Assurances

                                                    	 
      	
                                                      23

                                                    
	 	 	 	 	 
	
                                                      5.

                                                    	
                                                      ADMINISTRATION AND MAINTENANCE OF
      COLLATERAL

                                                    	 
      	
                                                      24

                                                    
	 	 	 	 
	 
      	
                                                      5.1.

                                                    	
                                                      Revolving Facility Collections; Repayment;
      Borrowing Availability and Lockbox

                                                    	 
      	
                                                      24

                                                    
	 
      	
                                                      5.2.

                                                    	
                                                      Accounts

                                                    	 
      	
                                                      24

                                                    
	 
      	
                                                      5.3.

                                                    	
                                                      Healthcare

                                                    	 
      	
                                                      25

                                                    
	 
      	
                                                      5.4.

                                                    	
                                                      Medicare and Medicaid Account Debtors and
      Third-Party Payor Information

                                                    	 
      	
                                                      25

                                                    
	 
      	
                                                      5.5.

                                                    	
                                                      Collateral Administration

                                                    	 
      	
                                                      26

                                                    
	 	 	 	 	 
	
                                                      6.

                                                    	
                                                      CONDITIONS PRECEDENT

                                                    	 
      	
                                                      27

                                                    
	 	 	 	 
	 
      	
                                                      6.1.

                                                    	
                                                      Conditions to Initial Advance and
      Closing

                                                    	 
      	
                                                      27

                                                    
	 
      	
                                                      6.2.

                                                    	
                                                      Conditions to Each Advance

                                                    	 
      	
                                                      29

                                                    
	 	 	 	 	 
	
                                                      7.

                                                    	
                                                      REPRESENTATIONS AND
    WARRANTIES

                                                    	 
      	
                                                      29

                                                    
	 	 	 	 
	 
      	
                                                      7.1.

                                                    	
                                                      Organization and Authority

                                                    	 
      	
                                                      30

                                                    
	 
      	
                                                      7.2.

                                                    	
                                                      Loan Documents

                                                    	 
      	
                                                      30

                                                    
	 
      	
                                                      7.3.

                                                    	
                                                      Subsidiaries, Capitalization and Ownership
      Interests

                                                    	 
      	
                                                      30

                                                    
	 
      	
                                                      7.4.

                                                    	
                                                      Properties

                                                    	 
      	
                                                      30

                                                    
	 
      	
                                                      7.5.

                                                    	
                                                      Other Agreements

                                                    	 
      	
                                                      31

                                                    
	 
      	
                                                      7.6.

                                                    	
                                                      Litigation

                                                    	 
      	
                                                      31

                                                    
	 
      	
                                                      7.7.

                                                    	
                                                      Environmental Matters

                                                    	 
      	
                                                      31

                                                    
	 
      	
                                                      7.8.

                                                    	
                                                      Potential Tax Liability; Tax Returns; Governmental
      Reports

                                                    	 
      	
                                                      32

                                                    
	 
      	
                                                      7.9.

                                                    	
                                                      Financial Statements and
      Reports

                                                    	 
      	
                                                      33

                                                    
	 
      	
                                                      7.10.

                                                    	
                                                      Compliance with Law

                                                    	 
      	
                                                      33

                                                    
	 
      	
                                                      7.11.

                                                    	
                                                      Intellectual Property

                                                    	 
      	
                                                      34

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  7.12.

                                	
                                  Licenses and Permits; Labor

                                	 
      	
                                  34

                                
	 
      	
                                  7.13.

                                	
                                  No Default

                                	 
      	
                                  34

                                
	 
      	
                                  7.14.

                                	
                                  Disclosure

                                	 
      	
                                  34

                                
	 
      	
                                  7.15.

                                	
                                  Existing Indebtedness; Investments, Guarantees and
      Certain Contracts

                                	 
      	
                                  34

                                
	 
      	
                                  7.16.

                                	
                                  Other Agreements

                                	 
      	
                                  35

                                
	 
      	
                                  7.17.

                                	
                                  Insurance

                                	 
      	
                                  35

                                
	 
      	
                                  7.18.

                                	
                                  Names; Location of Offices, Records and
      Collateral

                                	 
      	
                                  35

                                
	 
      	
                                  7.19.

                                	
                                  Lien Perfection and
Priority

                                	 
      	
                                  36

                                
	 
      	
                                  7.20.

                                	
                                  Investment Company Act

                                	 
      	
                                  36

                                
	 
      	
                                  7.21.

                                	
                                  Regulations T, U and X

                                	 
      	
                                  36

                                
	 
      	
                                  7.22.

                                	
                                  Survival

                                	 
      	
                                  36

                                
	 	 	 	 	 
	
                                  8.

                                	
                                  AFFIRMATIVE COVENANTS

                                	 
      	
                                  36

                                
	 	 	 	 
	 
      	
                                  8.1.

                                	
                                  Financial Statements, Borrowing Certificate,
      Financial Reports and Other Information

                                	 
      	
                                  37

                                
	 
      	
                                  8.2.

                                	
                                  [Reserved]

                                	 
      	
                                  39

                                
	 
      	
                                  8.3.

                                	
                                  Conduct of Business and Maintenance of Existence
      and Assets

                                	 
      	
                                  39

                                
	 
      	
                                  8.4.

                                	
                                  Compliance with Legal and Other
      Obligations

                                	 
      	
                                  39

                                
	 
      	
                                  8.5.

                                	
                                  Insurance

                                	 
      	
                                  40

                                
	 
      	
                                  8.6.

                                	
                                  Books and Records

                                	 
      	
                                  40

                                
	 
      	
                                  8.7.

                                	
                                  Inspections; Periodic Audits and
      Reappraisals

                                	 
      	
                                  40

                                
	 
      	
                                  8.8.

                                	
                                  Further Assurances;
      Post-Closing

                                	 
      	
                                  41

                                
	 
      	
                                  8.9.

                                	
                                  Use of Proceeds

                                	 
      	
                                  41

                                
	 
      	
                                  8.10.

                                	
                                  [Reserved]

                                	 
      	
                                  41

                                
	 
      	
                                  8.11.

                                	
                                  [Reserved]

                                	 
      	
                                  41

                                
	 
      	
                                  8.12.

                                	
                                  Taxes and Other Charges

                                	 
      	
                                  42

                                
	 
      	
                                  8.13.

                                	
                                  Payroll Taxes

                                	 
      	
                                  42

                                
	 
      	
                                  8.14.

                                	
                                  New Subsidiaries

                                	 
      	
                                  42

                                
	 
      	
                                  8.15.

                                	
                                  [Reserved]

                                	 
      	
                                  43

                                
	 	 	 	 	 
	
                                  9.

                                	
                                  NEGATIVE COVENANTS

                                	 
      	
                                  43

                                
	 	 	 	 
	 
      	
                                  9.1.

                                	
                                  Financial Covenants

                                	 
      	
                                  43

                                
	 
      	
                                  9.2.

                                	
                                  Permitted Indebtedness

                                	 
      	
                                  43

                                
	 
      	
                                  9.3.

                                	
                                  Permitted Liens

                                	 
      	
                                  43

                                
	 
      	
                                  9.4.

                                	
                                  Investments; New Facilities or Collateral;
      Subsidiaries

                                	 
      	
                                  43

                                
	 
      	
                                  9.5.

                                	
                                  Dividends; Redemptions

                                	 
      	
                                  44

                                
	 
      	
                                  9.6.

                                	
                                  Transactions with
Affiliates

                                	 
      	
                                  44

                                
	 
      	
                                  9.7.

                                	
                                  Charter Documents; Fiscal Year; Dissolution; Use
      of Proceeds

                                	 
      	
                                  44

                                
	 
      	
                                  9.8.

                                	
                                  Truth of Statements

                                	 
      	
                                  45

                                
	 
      	
                                  9.9.

                                	
                                  IRS Form 8821

                                	 
      	
                                  45

                                
	 
      	
                                  9.10.

                                	
                                  Transfer of Assets

                                	 
      	
                                  45

                                
	 
      	
                                  9.11.

                                	
                                  OFAC

                                	 
      	
                                  46

                                
	 
      	
                                  9.12.

                                	
                                  Payroll Accounts

                                	 
      	
                                  46

                                
	 	 	 	 	 
	
                                  10.

                                	
                                  EVENTS OF DEFAULT

                                	 
      	
                                  46

                                
	 	 	 	 
	
                                  11.

                                	
                                  RIGHTS AND REMEDIES AFTER
      DEFAULT

                                	 
      	
                                  48

                                
	 	 	 	 
	 
      	
                                  11.1.

                                	
                                  Rights and Remedies

                                	 
      	
                                  48

                                
	 
      	
                                  11.2.

                                	
                                  Application of Proceeds

                                	 
      	
                                  49

                                
	 
      	
                                  11.3.

                                	
                                  Rights of Lender to Appoint
      Receiver

                                	 
      	
                                  49

                                
	 
      	
                                  11.4.

                                	
                                  Rights and Remedies not
      Exclusive

                                	
                                    

                                	
                                  50

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    This Draft Credit Agreement is for
discussion purposes only.  This is not a commitment to extend credit
in any form, and remains subject to credit committee approval, due diligence,
negotiation and documentation.  No oral communications between the
parties shall be deemed to indicate any commitment to extend credit in any
form.

    

    
      
        
           

        

        
          APP- 2

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    11.5.

                                  	
                                    Standards for Exercising
      Remedies

                                  	 
      	
                                    50

                                  
	 	 	 	 	 
	
                                    12.

                                  	
                                    WAIVERS AND JUDICIAL
      PROCEEDINGS

                                  	 
      	
                                    51

                                  
	 	 	 	 
	 
      	
                                    12.1.

                                  	
                                    Waivers

                                  	 
      	
                                    51

                                  
	 
      	
                                    12.2.

                                  	
                                    Delay; No Waiver of
Defaults

                                  	 
      	
                                    51

                                  
	 
      	
                                    12.3.

                                  	
                                    Jury Waiver

                                  	 
      	
                                    51

                                  
	 
      	
                                    12.4.

                                  	
                                    Cooperation in Discovery and
      Litigation

                                  	 
      	
                                    52

                                  
	 	 	 	 	 
	
                                    13.

                                  	
                                    EFFECTIVE DATE AND
    TERMINATION

                                  	 
      	
                                    52

                                  
	 	 	 	 
	 
      	
                                    13.1.

                                  	
                                    Termination and Effective Date
      Thereof

                                  	 
      	
                                    52

                                  
	 
      	
                                    13.2.

                                  	
                                    Survival

                                  	 
      	
                                    53

                                  
	 	 	 	 	 
	
                                    14.

                                  	
                                    GUARANTY

                                  	 
      	
                                    53

                                  
	 	 	 	 
	 
      	
                                    14.1.

                                  	
                                    Guaranty

                                  	 
      	
                                    53

                                  
	 
      	
                                    14.2.

                                  	
                                    Guaranty Absolute

                                  	 
      	
                                    53

                                  
	 
      	
                                    14.3.

                                  	
                                    Subrogation

                                  	 
      	
                                    54

                                  
	 	 	 	 	 
	
                                    15.

                                  	
                                    MISCELLANEOUS

                                  	 
      	
                                    55

                                  
	 	 	 	 
	 
      	
                                    15.1.

                                  	
                                    Governing Law; Jurisdiction; Service of Process;
      Venue

                                  	 
      	
                                    55

                                  
	 
      	
                                    15.2.

                                  	
                                    Successors and Assigns; Participations; New
      Lenders

                                  	 
      	
                                    55

                                  
	 
      	
                                    15.3.

                                  	
                                    Application of Payments

                                  	 
      	
                                    56

                                  
	 
      	
                                    15.4.

                                  	
                                    Indemnity

                                  	 
      	
                                    56

                                  
	 
      	
                                    15.5.

                                  	
                                    Notice

                                  	 
      	
                                    57

                                  
	 
      	
                                    15.6.

                                  	
                                    Severability; Captions; Counterparts; Facsimile
      Signatures

                                  	 
      	
                                    57

                                  
	 
      	
                                    15.7.

                                  	
                                    Expenses

                                  	 
      	
                                    57

                                  
	 
      	
                                    15.8.

                                  	
                                    Entire Agreement

                                  	 
      	
                                    58

                                  
	 
      	
                                    15.9.

                                  	
                                    Lender Approvals

                                  	 
      	
                                    58

                                  
	 
      	
                                    15.10.

                                  	
                                    Confidentiality and
    Publicity

                                  	 
      	
                                    58

                                  
	 
      	
                                    15.11.

                                  	
                                    Release of Lender

                                  	 
      	
                                    59

                                  
	 
      	
                                    15.12.

                                  	
                                    Agent

                                  	 
      	
                                    59

                                  
	 
      	
                                    15.13.

                                  	
                                    [Reserved]

                                  	 
      	
                                    59

                                  
	 
      	
                                    15.14.

                                  	
                                    Amendment and Restatement

                                  	
                                      

                                  	
                                    59

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    EXHIBITS

     

    
      	
              Exhibit A

            	
              Form
      of Borrowing Certificate

            
	
              Exhibit B

            	
              Form
      of Compliance Certificate

            
	
              Exhibit C

            	
              Form
      of Solvency Certificate

            
	
              Exhibit D

            	
              Form
      of Officer’s Certificate

            

    

     

    This Draft Credit Agreement is for
discussion purposes only.  This is not a commitment to extend credit
in any form, and remains subject to credit committee approval, due diligence,
negotiation and documentation.  No oral communications between the
parties shall be deemed to indicate any commitment to extend credit in any
form.

    

    
      
        
           

        

        
          APP- 3

          
            

          

        

        
           

        

      

    

    

      [EXECUTION
COPY]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    AMENDED
AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

    

    THIS AMENDED AND RESTATED REVOLVING
CREDIT AND SECURITY AGREEMENT (the “Agreement”) dated as of April
26, 2010 is entered into between NeoGenomics Laboratories,
Inc., a Florida corporation (“Borrower”), NeoGenomics, Inc., a Nevada
corporation (“Guarantor”, together with
Borrower, individually a “Credit Party” and
collectively, the “Credit
Parties”) and CAPITALSOURCE FINANCE LLC, a
Delaware limited liability company (the “Lender”).

     

    WHEREAS,
Credit Parties and Lender are party to that certain Revolving Credit and
Security Agreement, dated as of February 1, 2008 (as in effect, together with
all amendments and modifications thereto, the “Original Credit Agreement”),
pursuant to which Lender, provided a revolving credit facility (the “Revolving Facility”) in a
maximum principal amount at any time outstanding of up to Three Million
($3,000,000) Dollars and (the “Original Facility
Cap”);

     

    WHEREAS,
the Credit Parties have requested that Lender continue to make available to
Borrowers the Revolving Facility  and extend term thereof and increase
the amount of the Original Facility Cap to an amount equal to Five Million
($5,000,000) Dollars (such Original Facility Cap, as extended and increased, the
“Facility Cap”);
and

     

    WHEREAS,
Lender is willing to continue to make the Revolving Facility available to
Borrower and to amend and restate the Original Credit Agreement upon the terms
and subject to the conditions set forth herein.

     

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

     

    
      	
              1.

            	
              DEFINITIONS

            

    

     

    
      	
               
      

            	
              1.1.

            	
              General
      Terms

            

    

     

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

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

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

     

    
      	
               
      

            	
              1.2.

            	
              Definitions

            

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

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

     

    “Collateral Management
Fee” shall mean a monthly fee to be paid by Borrower to Lender in an
amount equal to 0.0417% per month calculated on the basis of the daily average
amount of the balances under the Revolving Facility outstanding during the
preceding month.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

     

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

     

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

     

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

     

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

     

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

     

    (q)          such
Account is not payable to Borrower;

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

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

    

    “Initial Advance”
shall mean the initial Advance.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

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

    

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

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

    

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

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    “Minimum Termination
Fee” shall mean (for the time period indicated) the amount equal to (i)
3.0% of the Facility Cap, if the Revolver Termination is at any time before
February 1, 2011; (ii) 2.0% of the Facility Cap, if the Revolver Termination is
after February 1, 2011 but before February 1, 2012; and (iii) 1.0% of the
Facility Cap, if the Revolver Termination is on or after February 1,
2012.  There shall be no Minimum Termination Fee if the Revolver
Termination occurs within five (5) days of the end of the Term.

    

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

    

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

     

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

     

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

     

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

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

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

     

    “Permitted
Indebtedness” shall mean any of the following: (i) Indebtedness under the
Loan Documents, (ii) any Indebtedness set forth on Schedule 9.2,
(iii) Capitalized Lease Obligations and Indebtedness incurred to purchase Goods
and secured by purchase money Liens constituting Permitted Liens: (A) in
aggregate amount outstanding at any time not to exceed (1) $6,000,000 at any
time before February 1, 2011, (2) $9,000,000 on or after February 1, 2011 but
before February 1, 2012, and (3) $12,000,000 on or after February 1, 2012, in
each of (1), (2) and (3) less the outstanding amount of such Indebtedness
identified on Schedule
9.2 upon the incurrence of such Indebtedness and after giving effect
thereto no Default or Event of Default shall exist and be continuing and (B) in
an aggregate amount in excess of any of the thresholds specified in subparagraph
(A), provided,
that, (1) ten
(10) Business Days prior to the incurrence of such Indebtedness Borrower shall
have provided pro forma financial statements along with any other supporting
documentation required by Lender evidencing that Borrower would have been in
compliance with the financial covenants set forth on Annex 1 hereto for the
immediately preceding Test Period (as defined on Annex 1 hereto), if such
Indebtedness had been incurred on the first day of such Test Period, (2) prior
to the incurrence of such Indebtedness Borrower shall have received Lender’s
written confirmation of its agreement with such pro forma financial statements;
and (3) upon the incurrence of such Indebtedness and after giving effect thereto
no Default or Event of Default shall exist and be continuing, (iv) the
accounts payable set forth on Schedule 1.2 and accounts payable to trade
creditors and current operating expenses (other than for borrowed money) which
are not aged more than one hundred twenty calendar days from the date such
payable was created or such longer period as shall be agreed in writing by
Lender, except, in each case incurred in the ordinary course of business and
paid within such time period, unless the same are being contested in good faith
and by appropriate and lawful proceedings and such reserves, if any, with
respect thereto as are required by GAAP shall have been reserved, (v) borrowings
incurred in the ordinary course of business and not exceeding $2,000,000
individually or in the aggregate outstanding at any one time; provided, however, that such
Indebtedness (A) shall not be secured by Collateral, any cash, money, Investment
Property or Deposit Accounts; (B) the debt service for such Indebtedness shall
not exceed $400,000 for any twelve (12) month period; (C)  ten (10)
Calendar Days prior to the incurrence of such Indebtedness Borrower shall have
provided pro forma financial statements along with any other supporting
documentation required by Lender evidencing that Borrower would have been in
compliance with the financial covenants set forth on Annex 1 hereto for the
immediately preceding Test Period (as defined on Annex 1 hereto), if such
Indebtedness had been incurred on the first day of such Test Period, (D) prior
to the incurrence of such Indebtedness Borrower shall have received Lender’s
written confirmation of its agreement with such pro forma financial statements
(which confirmation or denial shall be promptly provided by Lender to Borrower
within ten (10) calendar days of Lender’s receipt of such financial statements);
(E) upon the incurrence of such Indebtedness and after giving effect thereto no
Default or Event of Default shall exist and be continuing, (F) such Indebtedness
shall be subordinated in right of repayment and remedies to all of the
Obligations and to all of Lender’s rights pursuant to a written agreement among
Lender, Borrower and the lender with respect to such Indebtedness, in form and
substance satisfactory to Lender and (vi) Parent Indebtedness.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Term” shall mean the
period commencing on the Closing Date and ending on February 1,
2013.

     

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

     

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

     

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

     

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

     

    “Unused Line Fee”
shall mean a fee to be paid by Borrower to Lender on a monthly basis in an
amount equal to  0.0417% (per month) of the difference derived by
subtracting (i) the daily average amount of the balances under the Revolving
Facility outstanding during the preceding month, from (ii) the Facility
Cap.

     

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

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
              2.

            	
              ADVANCES,
      PAYMENT AND INTEREST

            

    

     

    
      	
               
      

            	
              2.1.

            	
              The
      Revolving Facility

            

    

     

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

     

    (b)          Lender
in its Permitted Discretion may further adjust the Availability and the advance
rate by applying Liquidity Factors.  The Liquidity Factors and the
advance rate for Availability may be adjusted by Lender throughout the Term as
warranted by Lender’s underwriting practices and procedures in its credit
judgment.  Also, Lender shall have the right to establish from time to
time, in its Permitted Discretion, reserves against the Borrowing Base, which
reserves shall have the effect of reducing the amounts otherwise eligible to be
advanced to Borrower under the Revolving Facility pursuant to this
Agreement.

     

    (c)          Borrower
shall at all times, from and after the Closing Date, maintain a minimum
outstanding principal balance under the Revolving Facility of at least
$2,000,000 (the “Minimum
Revolving Facility Balance”).  If Borrower fails to maintain
the Minimum Revolving Facility Balance at any time, such failure shall not be
deemed a Default or Event of Default; however, in
consideration and as a result of such failure Lender shall be entitled to charge
and collect interest and all applicable fees on such Minimum Revolving Facility
Balance (calculated in accordance with the terms of this Agreement for Advances
under the Revolving Facility) as if such Minimum Revolving Facility Balance were
outstanding at such time, and Borrower shall pay such interest and applicable
fees thereon in accordance with the terms of this Agreement (and any failure by
Borrower to timely pay such interest shall be deemed an Event of Default under
Section
10(a)).  Lender agrees that in the event that the outstanding
principal balance under the Revolving Facility falls below the Minimum Revolving
Facility Balance at any time.  Lender will within twenty four (24)
hours, without the necessity of receiving written request from the Borrower,
provide an Advance to the Borrower in an amount equal to the difference between
the Minimum Revolving Facility Balance and the amount of the principal amount
then outstanding under the Revolving Facility; provided, however,
Lender shall not be obligated to make such automatic Advances if Borrower has
not met the conditions to funding Advances set forth in this Agreement (except
for the requirement for the delivery of a Borrowing Certificate as set forth in
Section
6.2(a)).  For the avoidance of doubt, the foregoing requirement
for Borrower to maintain the Minimum Revolving Facility Balance shall not be
construed to obligate Lender to fund such minimum amount or otherwise limit any
of Lender’s rights set forth herein, including any of Lender’s rights to
determine, apply or adjust the Availability, the Liquidity Factors or the
Borrowing Base.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2.

            	
              The
      Revolving Loans; Maturity

            

    

     

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

     

    
      	
               
      

            	
              2.3.

            	
              Revolving
      Facility Disbursements; Requirement to Deliver Borrowing
      Certificate

            

    

     

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

     

    
      	
               
      

            	
              2.4.

            	
              Promise
      to Pay; Manner of Payment

            

    

     

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

     

    
      	
               
      

            	
              2.5.

            	
              Repayment
      of Excess Advances

            

    

     

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

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.6.

            	
              Payments
      by Lender

            

    

     

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

     

    
      	
               
      

            	
              2.7.

            	
              Evidence
      of Loans

            

    

     

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

     

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

     

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

     

    (d)          Borrower
agrees that:

     

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

     

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

     

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

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              INTEREST
      AND FEES

            

    

     

    
      	
               
      

            	
              3.1.

            	
              Interest
      on the Revolving Facility

            

    

     

    Commencing
May 1, 2010, and continuing until the later of the expiration of the Term and
the Payment in Full and full performance of all of the Obligations and
termination of this Agreement, interest on outstanding Advances under the
Revolving Facility shall be payable monthly in arrears on the first day of each
calendar month at an annual rate of LIBOR plus 4.25% in accordance with the
procedures provided for in Section 2.4 and Section 5.1; provided, however, that,
notwithstanding any provision of any Loan Document, for the purpose of
calculating interest at any time hereunder, the LIBOR shall be not less than
2.0%, in each case calculated on the basis of a 360-day year and for the actual
number of calendar days elapsed in each interest calculation
period.

     

    
      	
               
      

            	
              3.2.

            	
              Commitment
      Fee

            

    

     

    On or
before the Closing Date, Borrower shall pay to Lender $33,500 as a nonrefundable
commitment fee which shall be fully earned on the date paid.  Lender
hereby acknowledges receipt of $25,000 of such commitment fee on March 26, 2010
which amount was received by Lender as an amendment fee in connection with the
Third Amendment to Revolving Credit and Security Agreement dated March 26, 2010,
which amount will be credited as a portion of the commitment fee upon the
Closing.

     

    
      	
               
      

            	
              3.3.

            	
              Unused
      Line Fee

            

    

     

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

     

    
      	
               
      

            	
              3.4.

            	
              Collateral
      Management Fee

            

    

     

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

     

    
      	
               
      

            	
              3.5.

            	
              Computation
      of Fees; Lawful Limits

            

    

     

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

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.6.

            	
              Default
      Rate of Interest

            

    

     

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

     

    
      	
              4.

            	
              GRANT
      OF SECURITY INTERESTS

            

    

     

    
      	
               
      

            	
              4.1.

            	
              Security
      Interest; Collateral

            

    

     

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

     

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

     

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

     

    
      	
               
      

            	
              4.2.

            	
              Power
      of Attorney

            

    

     

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

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

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

     

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

     

    
      	
               
      

            	
              4.3.

            	
              Further
      Assurances

            

    

     

    Borrower
agrees, upon request of Lender, to take any and all other actions as Lender may
determine to be necessary or appropriate for the attachment, perfection
maintaining of the first priority security interest of, and for the ability of
Lender to enforce, Lender’s security interest in any and all of the Collateral,
including, without limitation, (i) executing, obtaining, delivering, filing,
registering and recording any and all financing statements, continuation
statements, stock powers, instruments and other documents, or causing the
execution, filing, registration, recording or delivery of any and all of the
foregoing, that are necessary or required under law or otherwise or reasonably
requested by Lender to be executed, filed, registered, obtained, delivered or
recorded to create, maintain, perfect, preserve, validate or otherwise protect
the pledge of the Collateral to Lender and Lender’s perfected first priority
Lien on the Collateral (and Borrower irrevocably grants Lender the right, at
Lender's option, to file any or all of the foregoing), (ii) immediately upon
learning thereof, report to Lender any reclamation, return or repossession of
goods in excess of $50,000.00 that are part of the Collateral (individually or
in the aggregate), (iii) defend the Collateral and Lender’s perfected first
priority Lien thereon against all claims and demands of all Persons at any time
claiming the same or any interest therein adverse to Lender, and pay all
reasonable costs and expenses (including, without limitation, allocable costs of
staff counsel, and diligence fees and reasonable attorneys’ fees and expenses,
provided, that, the payment of
staff counsel and reasonable attorneys’ fees shall be subject to the provisions
of Section
15.7(b)) in connection with such defense, which may at Lender’s
discretion be added to the Obligations, (iv) comply with any provision of any
statute, regulation or treaty of any Governmental Authority as to any Collateral
if compliance with such provision is a condition to attachment, perfection or
priority of, or ability of Lender to enforce, Lender’s security interest in such
Collateral and (v) obtain governmental and other third party waivers, consents
and approvals in form and substance satisfactory to Lender, including any
consent of any licensor, lessor or other Person obligated on Collateral and any
party or parties whose consent is required for the security interest of Lender
to attach under Section 4.1.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              ADMINISTRATION
      AND MAINTENANCE OF COLLATERAL

            

    

     

    
      	
               
      

            	
              5.1.

            	
              Revolving
      Facility Collections; Repayment; Borrowing Availability and
      Lockbox

            

    

     

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

     

    
      	
               
      

            	
              5.2.

            	
              Accounts

            

    

     

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

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.3.

            	
              Healthcare

            

    

     

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

     

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

     

    (c)          As
of the Closing Date, Borrower has third party contracts with each of the
third-party payors listed on Schedule 5.3B (unless
noted otherwise), which constitutes (as indicated) each of the payors
representing at least five percent (5%) of Borrower’s historic third-party payor
cash receipts for the twelve month period ended December 31, 2009.

     

    
      	
               
      

            	
              5.4.

            	
              Medicare
      and Medicaid Account Debtors and Third-Party Payor
    Information

            

    

     

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

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.5.

            	
              Collateral
      Administration

            

    

     

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

     

    (b)          Borrower
shall keep accurate and complete records of its Accounts and all payments and
collections thereon and shall submit such records to Lender on such periodic
bases as Lender may request.  In addition, if Accounts of Borrower in
an aggregate face amount in excess of $100,000.00 become ineligible because they
fall within one of the specified categories of ineligibility set forth in the
definition of Eligible Accounts, Borrower shall notify Lender of such occurrence
within two Business Days following the discovery of such occurrence or upon any
submission to Lender of a Borrowing Certificate and the Borrowing Base shall
thereupon be adjusted to reflect such occurrence.

     

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

     

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

     

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

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

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

     

    
      	
              6.

            	
              CONDITIONS
      PRECEDENT

            

    

     

    
      	
               
      

            	
              6.1.

            	
              Conditions
      to Initial Advance and Closing

            

    

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    
      	
               
      

            	
              6.2.

            	
              Conditions
      to Each Advance

            

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      	
              7.

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

     

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

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.1.

            	
              Organization
      and Authority

            

    

     

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

     

    
      	
               
      

            	
              7.2.

            	
              Loan
      Documents

            

    

     

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

     

    
      	
               
      

            	
              7.3.

            	
              Subsidiaries,
      Capitalization and Ownership
Interests

            

    

     

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

     

    
      	
               
      

            	
              7.4.

            	
              Properties

            

    

     

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

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.5.

            	
              Other
      Agreements

            

    

     

    No Credit Party is (i) a party to any
judgment, order or decree or any agreement, document or instrument, or subject
to any restriction, which would affect its ability to execute and deliver, or
perform under, any Loan Document or to pay the Obligations, (ii) in default in
the performance, observance or fulfillment of any obligation, covenant or
condition contained in any agreement, document or instrument to which it is a
party or to which any of its properties or assets are subject, which default, if
not remedied within any applicable grace or cure period would reasonably be
likely to result in a Material Adverse Change, nor is there any event, fact,
condition or circumstance which, with notice or passage of time or both, would
constitute or result in a conflict, breach, default or event of default under,
any of the foregoing which, if not remedied within any applicable grace or cure
period would reasonably be likely to result in a Material Adverse Change; (iii)
a party or subject to any agreement, document or instrument with respect to, or
obligation to pay any, Management or Service Fee with respect to, the ownership,
operation, leasing or performance of any of its business or any facility, nor is
there any manager with respect to any such facility; or (iv) a party to any
contract with any Affiliate other than as set forth on Schedule 7.5, except for
employment agreements, option agreements, confidentiality agreements,
non-solicitation/non-competition agreements and other compensation, severance or
consulting arrangements with directors or officers in the ordinary course of
business that are on terms at least as favorable to such Credit Party as would
be the case in an arm’s length transaction between unrelated parties of equal
bargaining power and under which payments due from Credit Parties are not more
than $500,000 per annum per arrangement.

     

    
      	
               
      

            	
              7.6.

            	
              Litigation

            

    

     

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

     

    
      	
               
      

            	
              7.7.

            	
              Environmental
      Matters

            

    

     

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

     

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

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

    
      	
               
      

            	
              7.8.

            	
              Potential
      Tax Liability; Tax Returns; Governmental
Reports

            

    

     

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

     

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

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.9.

            	
              Financial
      Statements and Reports

            

    

     

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

     

    
      	
               
      

            	
              7.10.

            	
              Compliance
      with Law

            

    

     

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

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

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

     

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

     

    
      	
               
      

            	
              7.11.

            	
              Intellectual
      Property

            

    

     

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

     

    
      	
               
      

            	
              7.12.

            	
              Licenses
      and Permits; Labor

            

    

     

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

     

    
      	
               
      

            	
              7.13.

            	
              No
      Default

            

    

     

    There does not exist any Default or
Event of Default.

     

    
      	
               
      

            	
              7.14.

            	
              Disclosure

            

    

     

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

     

    
      	
               
      

            	
              7.15.

            	
              Existing
      Indebtedness; Investments, Guarantees and Certain
  Contracts

            

    

     

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

     

    
      
         

      

      
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              7.16.

            	
              Other
      Agreements

            

    

     

    Except as set forth on Schedule 7.16,
(i)there are no existing or proposed agreements,  arrangements,
understandings or transactions between any Credit Party and any of such Credit
Party’s officers, members, managers, directors, stockholders, partners, other
interest holders, employees or Affiliates or any members of their respective
immediate families, other than employment agreements, option agreements,
confidentiality agreements, non-solicitation/non-competition agreements and
other compensation, severance or consulting arrangements with directors or
officers in the ordinary course of business that are on terms at least as
favorable to such Credit Party as would be the case in an arm’s length
transaction between unrelated parties of equal bargaining power and under which
payments due from Credit Parties are not more than $500,000 per annum per
arrangement, (ii) none of the foregoing Persons are directly or indirectly,
indebted to or have any direct or indirect ownership, partnership or voting
interest in, to such  Credit Party’s knowledge, any Affiliate of such
Credit Party or any Person that competes with such Credit Party (except that any
such Persons may own stock in, but not exceeding two percent (2%) of the
outstanding capital stock of, any publicly traded company that may compete with
such Credit Party (iii) no director or officer of any Credit Party has received
any compensation of any kind in consideration or otherwise of such Credit Party
entering into this Agreement, and (iv) neither Lender nor any of its Affiliates
has paid or offered to pay any compensation to any director or officer of any
Credit Party in consideration of such Credit Party’s entering into the Loan
Documents.

     

    
      	
               
      

            	
              7.17.

            	
              Insurance

            

    

     

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

     

    
      	
               
      

            	
              7.18.

            	
              Names;
      Location of Offices, Records and
Collateral

            

    

     

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

    
      
         

      

      
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              7.19.

            	
              Lien
      Perfection and Priority

            

    

     

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

     

    
      	
               
      

            	
              7.20.

            	
              Investment
      Company Act

            

    

     

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

     

    
      	
               
      

            	
              7.21.

            	
              Regulations
      T, U and X

            

    

     

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

     

    
      	
               
      

            	
              7.22.

            	
              Survival

            

    

     

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

     

    
      	
              8.

            	
              AFFIRMATIVE
      COVENANTS

            

    

     

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

     

    
      
        
        

      

      
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              8.1.

            	
              Financial
      Statements, Borrowing Certificate, Financial Reports and Other
      Information

            

    

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

     

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

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    (c)           Notices.  Credit
Parties shall promptly, and in any event within four calendar days after
Borrower or any authorized officer of Borrower obtains knowledge thereof, notify
Lender in writing of (i) any pending or threatened litigation, suit,
investigation, arbitration, dispute resolution proceeding or administrative
proceeding brought against or initiated by Borrower or otherwise affecting or
involving or relating to Borrower or any of its property or assets to the extent
(A) the amount in controversy exceeds $125,000.00, or (B) to the extent any of
the foregoing seeks injunctive relief (except for actions in which Borrower is
seeking injunctive relief against former employees of Borrower in order to
enforce a confidentiality, non-solicitation, non-competition agreement or other
similar agreement), (ii) any Default or Event of Default, which notice shall
specify the nature and status thereof, the period of existence thereof and what
action is proposed to be taken with respect thereto, (iii) any other
development, event, fact, circumstance or condition that would reasonably be
expected to result in a Material Adverse Change, in each case describing the
nature and status thereof and the action proposed to be taken with respect
thereto, (iv) any notice received by a Borrower from any payor of a claim, suit
or other action such payor has, claims or has filed against such Borrower, (v)
any matter(s) affecting the value, enforceability or collectability of any of
the Collateral, including, without limitation, claims or disputes in the amount
of $100,000.00 or more, singly or in the aggregate, in existence at any one
time, (vi) any notice given by Borrower to any other lender of such Borrower and
shall furnish to Lender a copy of such notice, (vii) receipt of any notice or
request from any Governmental Authority or governmental payor regarding any
liability or claim of liability in excess of $100,000.00 singly or in the
aggregate, (viii) receipt of any notice by Borrower regarding termination of any
manager of any facility owned, operated or leased by such Borrower, (ix) if any
Account becomes evidenced or secured by an Instrument or Chattel Paper and (x)
any pending, threatened or actual investigation or survey of Borrower, its
directors, officers or managing employees by any of the Medicare, Medicaid or
CHAMPUS/TRICARE programs, or any other third party payor programs, (xi) Borrower
becoming a party to a Corporate Integrity Agreement with the Office of Inspector
General of the Department of Health and Human Services, (xii) Borrower becoming
subject to reporting obligations pursuant to any settlement agreement entered
into with any Governmental Authority, (xiii) Borrower becoming the subject of
any government payor program investigation conducted by any federal or state
enforcement agency, (xiv) Borrower becoming a defendant in any qui tam/False
Claims Act litigation, (xv) Borrower being served with or received any search
warrant, subpoena, civil investigative demand or contact letter by or from any
federal or state enforcement agency relating to an investigation or (xvi)
Borrower becoming subject to any written complaint filed with or submitted to
any Governmental Authority having jurisdiction over such Borrower or filed with
or submitted to such Borrower pursuant to such Borrower’s policies relating to
the filing or submissions of such types of complaints, from employees,
independent contractors, vendors, physicians, or any other person that would
indicate that such Borrower has violated any law, regulation or
law.

     

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

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    
      	
               
      

            	
              8.2.

            	
              [Reserved]

            

    

     

    
      	
               
      

            	
              8.3.

            	
              Conduct
      of Business and Maintenance of Existence and
  Assets

            

    

     

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

     

    
      	
               
      

            	
              8.4.

            	
              Compliance
      with Legal and Other Obligations

            

    

     

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

    
      
         

      

      
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              8.5.

            	
              Insurance

            

    

     

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

     

    
      	
               
      

            	
              8.6.

            	
              Books
      and Records

            

    

     

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

     

    
      	
               
      

            	
              8.7.

            	
              Inspections;
      Periodic Audits and Reappraisals

            

    

     

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

     

    
      
        
        

      

      
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              8.8.

            	
              Further
      Assurances; Post-Closing

            

    

     

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

     

    
      	
               
      

            	
              8.9.

            	
              Use
      of Proceeds

            

    

     

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

     

    
      	
               
      

            	
              8.10.

            	
              [Reserved]

            

    

     

    
      	
               
      

            	
              8.11.

            	
              [Reserved]

            

    

     

    
      
        
        

      

      
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              8.12.

            	
              Taxes
      and Other Charges

            

    

     

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

     

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

     

    
      	
               
      

            	
              8.13.

            	
              Payroll
      Taxes

            

    

     

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

     

    
      	
               
      

            	
              8.14.

            	
              New
      Subsidiaries

            

    

     

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

     

    
      
        
        

      

      
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              8.15.

            	
              [Reserved]

            

    

     

    
      	
              9.

            	
              NEGATIVE
      COVENANTS

            

    

     

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

     

    
      	
               
      

            	
              9.1.

            	
              Financial
      Covenants

            

    

     

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

     

    
      	
               
      

            	
              9.2.

            	
              Permitted
      Indebtedness

            

    

     

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

     

    
      	
               
      

            	
              9.3.

            	
              Permitted
      Liens

            

    

     

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

     

    
      	
               
      

            	
              9.4.

            	
              Investments;
      New Facilities or Collateral;
Subsidiaries

            

    

     

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

     

    Notwithstanding
the foregoing, Borrower shall be permitted to make Permitted Acquisitions with
Lender’s prior written consent; provided, however, that the
consent of Lender shall not be required if the cash consideration paid in
respect of the Permitted Acquisition does not exceed $1,000,000 per acquisition
or $2,000,000 in the aggregate during the Term and Borrower fully complies with
Section 8.14
hereof.

     

    
      
        
        

      

      
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              9.5.

            	
              Dividends;
      Redemptions

            

    

     

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

     

    
      	
               
      

            	
              9.6.

            	
              Transactions
      with Affiliates

            

    

     

    Except as
set forth on Schedule 9.6, Borrower shall not enter into or consummate any
transaction of any kind with any of its Affiliates or Guarantor or any of their
respective Affiliates other than: (i) salary, bonus, severance, employee stock
option and other compensation, consulting and employment arrangements with
directors or officers in the ordinary course of business, provided, that, no payment of
any cash bonus or severance shall be permitted if a Default or Event of Default
has occurred and remains in effect or would be caused by or result from such
payment, and no payment of any severance shall be made, individually or in the
aggregate, in excess of $500,000 in any twelve (12) month period, (ii)
Distributions permitted pursuant to Section 9.5, and
(iii) the making of payments permitted under and pursuant to a written agreement
entered into by and between Borrower and one or more of its Affiliates that
reflects and constitutes a transaction on overall terms at least as favorable to
Borrower as would be the case in an arm’s-length transaction between unrelated
parties of equal bargaining power; provided, that, notwithstanding
the foregoing Borrower shall not (Y) enter into or consummate any transaction or
agreement pursuant to which it becomes a party to any mortgage, note, indenture
or guarantee evidencing any Indebtedness of any of its Affiliates or otherwise
to become responsible or liable, as a guarantor, surety or otherwise, pursuant
to agreement for any Indebtedness of any such Affiliate, or (Z) make any
payments to any of its Affiliates in excess of $100,000 in the aggregate during
any consecutive twelve calendar month period without the prior written consent
of Lender (other than payments permitted pursuant to clause (i) or (ii)
above).

     

    
      	
               
      

            	
              9.7.

            	
              Charter
      Documents; Fiscal Year; Dissolution; Use of
  Proceeds

            

    

     

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

     

    
      
        
        

      

      
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              9.8.

            	
              Truth
      of Statements

            

    

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

     

    
      	
               
      

            	
              9.9.

            	
              IRS
      Form 8821

            

    

     

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

     

    
      	
               
      

            	
              9.10.

            	
              Transfer
      of Assets

            

    

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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              9.11.

            	
              OFAC

            

    

     

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

     

    
      	
               
      

            	
              9.12.

            	
              Payroll
      Accounts

            

    

     

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

     

    
      	
              10.

            	
              EVENTS
      OF DEFAULT

            

    

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

    
    

    (f)           (i) any
default occurs, which is not cured or waived, (x) in the payment when due
of any amount with respect to any Indebtedness (other than the Obligations) of
any Credit Party having an aggregate principal balance of at least $100,000,
(y) in the performance, observance or fulfillment of any provision
contained in any agreement, contract, document or instrument to which any Credit
Party is a party or to which any of their properties or assets are subject or
bound under or pursuant to which any Indebtedness having an aggregate principal
balance of at least $100,000 was issued, created, assumed, guaranteed or secured
and such default continues for more than any applicable grace period or permits
the holder of any Indebtedness to accelerate the maturity thereof, or (ii) any
Indebtedness of any Credit Party is declared to be due and payable or is
required to be prepaid (other than by a regularly scheduled payment) prior to
the stated maturity thereof, or any obligation of such Person for the payment of
Indebtedness (other than the Obligations) is not paid when due or within any
applicable grace period, or any such obligation becomes or is declared to be due
and payable before the expressed maturity thereof, or there occurs an event
which, with the giving of notice or lapse of time, or both, would cause any such
obligation to become, or allow any such obligation to be declared to be, due and
payable;

     

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

     

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

     

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

     

    
      
        
        

      

      
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    (j)           Lender
receives any indication or evidence that (i) any Credit Party may have directly
or indirectly been engaged in any type of activity, which, in Lender’s Permitted
Discretion, might result in forfeiture of any property with a value in excess of
$50,000 to any Governmental Authority which shall have continued unremedied for
a period of ten calendar days after written notice from Lender (but no Advances
will be made before any such activity ceases) or (ii) any Credit Party or any of
their respective directors or senior officers is criminally indicted or
convicted under any law that could lead to a forfeiture of any
Collateral;

     

    (k)           uninsured
damage to, or loss, theft or destruction of, any portion of the Collateral
occurs that exceeds $50,000 in the aggregate;

     

    (l)           the
issuance of any process for levy, attachment or garnishment or execution upon or
prior to any judgment against any Credit Party or any of their property or
assets in excess of $100,000.

     

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

     

    
      	
              11.

            	
              RIGHTS
      AND REMEDIES AFTER DEFAULT

            

    

     

    
      	
               
      

            	
              11.1.

            	
              Rights
      and Remedies

            

    

     

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

     

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

     

    
      
        
        

      

      
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              11.2.

            	
              Application
      of Proceeds

            

    

     

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

     

    
      	
               
      

            	
              11.3.

            	
              Rights
      of Lender to Appoint Receiver

            

    

     

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

     

    
      
        
        

      

      
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              11.4.

            	
              Rights
      and Remedies not Exclusive

            

    

     

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

     

    
      	
               
      

            	
              11.5.

            	
              Standards
      for Exercising Remedies

            

    

     

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

     

    
      
        
        

      

      
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              12.

            	
              WAIVERS
      AND JUDICIAL PROCEEDINGS

            

    

     

    
      	
               
      

            	
              12.1.

            	
              Waivers

            

    

     

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

     

    
      	
               
      

            	
              12.2.

            	
              Delay;
      No Waiver of Defaults

            

    

     

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

     

    
      	
               
      

            	
              12.3.

            	
              Jury
      Waiver

            

    

     

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

     

    
      
        
        

      

      
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              12.4.

            	
              Cooperation
      in Discovery and Litigation

            

    

     

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

     

    
      	
              13.

            	
              EFFECTIVE
      DATE AND TERMINATION

            

    

     

    
      	
               
      

            	
              13.1.

            	
              Termination
      and Effective Date Thereof

            

    

     

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

     

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

     

    
      
        
        

      

      
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              13.2.

            	
              Survival

            

    

     

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

     

    
      	
              14.

            	
              GUARANTY

            

    

     

    
      	
               
      

            	
              14.1.

            	
              Guaranty

            

    

     

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

     

    
      	
               
      

            	
              14.2.

            	
              Guaranty
      Absolute

            

    

     

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

     

    
      
        
        

      

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

     

    
      	
               
      

            	
              14.3.

            	
              Subrogation

            

    

     

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

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    
      	
              15.

            	
              MISCELLANEOUS

            

    

     

    
      	
               
      

            	
              15.1.

            	
              Governing
      Law; Jurisdiction; Service of Process;
Venue

            

    

     

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

     

    
      	
               
      

            	
              15.2.

            	
              Successors
      and Assigns; Participations; New
Lenders

            

    

     

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

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              15.3.

            	
              Application
      of Payments

            

    

     

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

     

    
      	
               
      

            	
              15.4.

            	
              Indemnity

            

    

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

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              15.5.

            	
              Notice   

            

    

     

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

     

    
      	
               
      

            	
              15.6.

            	
              Severability;
      Captions; Counterparts; Facsimile
Signatures

            

    

     

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

     

    
      	
               
      

            	
              15.7.

            	
              Expenses

            

    

     

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

     

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

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              15.8.

            	
              Entire
      Agreement

            

    

     

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

     

    
      	
               
      

            	
              15.9.

            	
              Lender
      Approvals

            

    

     

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

     

    
      	
            	
              15.10.

            	
              Confidentiality
      and Publicity

            

    

     

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

     

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

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

     

    
      	
            	
              15.11.

            	
              Release
      of Lender

            

    

     

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

     

    
      	
            	
              15.12.

            	
              Agent

            

    

     

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

     

    
      	
            	
              15.13.

            	
              [Reserved] 

            

    

     

    
      	
            	
              15.14.

            	
              Amendment
      and Restatement

            

    

     

    This
Agreement amends and restates in its entirety the Original Credit
Agreement.  This Agreement and the other Loan Documents govern the
present relationship between the Credit Parties and the Lender.  With
respect to matters relating to the period prior to the Closing Date, all of the
provisions of the Original Credit Agreement and the security agreements, pledge
agreements, guarantees, and other documents, instruments and agreements executed
in connection therewith, are each ratified and confirmed and shall remain in
full force and effect.  This Agreement, however, is in no way
intended, nor shall it be construed, to affect, replace, impair or extinguish
the creation, attachment, perfection or priority of the security interests in,
and other Liens on, the Collateral, which security interests and other Liens
each of the Credit Parties, by this Agreement, acknowledges, reaffirms and
confirms to the Lender.  In addition, except as otherwise provided
herein, all obligations and liabilities and indebtedness created or existing
under, pursuant to, or as a result of, the Original Credit Agreement shall
continue in existence within the definition of “Obligations” under this
Agreement, which obligations, liabilities and indebtedness the Credit Parties,
by this Agreement, acknowledge, reaffirm and confirm.  Credit Parties
agree that any outstanding commitment or other obligation to make advances or
otherwise extend credit or credit support to any Credit Party pursuant to the
Original Credit Agreement is superseded by, and renewed and consolidated under,
this Agreement.  Credit Parties represent and warrant that none of
them have assigned or otherwise transferred any rights arising under the
Original Credit Agreement.  In order to induce the Lender to enter
into this Agreement on the Closing Date, each Credit Party hereby represents,
warrants and covenants to Lenders that it has determined that each Credit Party
will benefit specifically and materially from the amendment and restatement of
the Original Credit Agreement pursuant to this Agreement on the Closing
Date.

    
    

    [SIGNATURES
APPEAR ON THE FOLLOWING PAGE]

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

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

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	
                                            BORROWER:

                                          
	 
      	 
      
	 
      	
                                            NEOGENOMICS
      LABORATORIES, INC.,

                                          
	 
      	
                                            a
      Florida corporation

                                          
	 
      	 
      	 
      
	 
      	
                                            By:

                                          	
                                            /s/ George Cardoza

                                          
	 
      	
                                            Name:

                                          	
                                            George Cardoza

                                          
	 
      	
                                            Its:

                                          	
                                            CFO

                                          
	 
      	 
      	 
      
	 
      	
                                            GUARANTOR:

                                          
	 
      	 
      
	 
      	
                                            NEOGENOMICS,
      INC.,

                                          
	 
      	
                                            a
      Nevada corporation

                                          
	 
      	 
      	 
      
	 
      	
                                            By:

                                          	
                                            /s/ George Cardoza

                                          
	 
      	
                                            Name:

                                          	
                                            George Cardoza

                                          
	 
      	
                                            Its:

                                          	
                                            CFO

                                          
	 
      	 
      	 
      
	 	 	 
	 	 	 
	 
      	
                                            Attention:

                                          	 
      
	 
      	
                                            Telephone:

                                          	 
      
	 
      	
                                            Facsimile:

                                          	 
      
	 
      	
                                            E-Mail:

                                          	 
      
	 
      	 
      	 
      
	 
      	
                                            LENDER:

                                          
	 
      	 
      
	 
      	
                                            CAPITALSOURCE
      FINANCE LLC

                                          
	 
      	 
      	 
      
	 
      	
                                            By:

                                          	
                                            /s/ Arturo Velez

                                          
	 
      	
                                            Name:

                                          	
                                            Arturo Velez

                                          
	 
      	
                                            Its:

                                          	
                                            Authorized signatory

                                          
	 
      	 
      	 
      
	 
      	
                                            4445
      Willard Avenue, 12th
      Floor

                                          
	 
      	
                                            Chevy
      Chase, MD  20815

                                          
	 
      	
                                            Attention:  Healthcare
      Finance Group, Portfolio Manager

                                          
	 
      	
                                            Telephone:  (301)
      841-2700

                                          
	 
      	
                                            Facsimile: 
      (301) 841-2340

                                          
	 
      	
                                            E-Mail:

                                          	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    
 

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

     

    SCHEDULES

     

    
      
        	
                Schedule
      2.3

              	 
      	
                Borrower’s
      Accounts

              
	
                Schedule
      5.3A

              	 
      	
                Proceedings
      or Investigations

              
	
                Schedule
      5.3B

              	 
      	
                Third-Party
      Contracts

              
	
                Schedule
      7.11

              	 
      	
                Intellectual
      Property

              
	
                Schedule
      7.15A

              	 
      	
                Existing
      Indebtedness, Investments, Guarantees and Certain
  Contracts

              
	
                Schedule
      7.15B

              	 
      	
                Indebtedness
      with a Maturity Date During the Term

              
	
                Schedule
      7.16

              	 
      	
                Other
      Agreements

              
	
                Schedule
      7.17

              	 
      	
                Insurance

              
	
                Schedule
      7.18A

              	 
      	
                Borrower’s
      Names

              
	
                Schedule
      7.18B

              	 
      	
                Places
      of Business and Chief Executive Offices

              
	
                Schedule
      7.18B

              	 
      	
                Borrower’s
      Locations

              
	
                Schedule
      7.2

              	 
      	
                Consents,
      Approvals or Authorizations

              
	
                Schedule
      7.3

              	 
      	
                Capitalization;
      List of Subsidiaries

              
	
                Schedule
      7.4A

              	 
      	
                Leases

              
	
                Schedule
      7.4B

              	 
      	
                Deposit
      Accounts and Investment Accounts

              
	
                Schedule
      7.5

              	 
      	
                Affiliate
      Contracts/Agreements

              
	
                Schedule
      7.6

              	 
      	
                Litigation

              
	
                Schedule
      7.8

              	 
      	
                Tax
      Matters

              
	
                Schedule
      8.8

              	 
      	
                Post-Closing
      Matters

              
	
                Schedule
      9.2

              	 
      	
                Indebtedness

              
	
                Schedule
      9.3

              	
                  

              	
                Liens

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
I

     

    FINANCIAL
COVENANTS

     

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

     

    For the Test Period ending on the last
day of each calendar month the Fixed Charge Coverage Ratio shall not be less
than 1.25 to 1.0.

     

    2.           Minimum
Cash Velocity

     

    For each Test Period, measured as of
the last day of each calendar month ending after March 31, 2010, Collections of
Accounts of Borrowers collectively shall not be less than 87.5% of Borrowers’
net revenue for the Revenue Period less the bad debt
expense recognized on the income statement for such Revenue Period.

     

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

    

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

     

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Fixed Charge Coverage
Ratio” shall mean, as of any date of determination, for Borrower
collectively on a consolidated basis, the ratio of (a) the sum of Adjusted
EBITDA for the Test Period ended as of such date plus an amount equal to the sum
of unrestricted cash on hand, unrestricted Cash Equivalents and unused
Availability as of the last day of the Test Period ended as of such date, to (b)
Fixed Charges for the Test Period ended as of such date.

     

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

     

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

     

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

     

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

     

    “Revenue Period” shall
mean, for any Test Period, the three calendar month period (taken as one
accounting period) commencing the first day of the calendar month of the second
month immediately preceding the first month of the Test Period.  By
way of example, the Revenue Period for the Test Period ending June 30, 2010
shall consist of the three calendar months ending February 28, 2010, March 31,
2010 and April 30, 2010.

     

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

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

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

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    AMENDED AND RESTATED
SCHEDULES

     

    
      	
              Schedule
      1.2

            	
              Accounts
      Payable Over 120 Days That Are Permitted
  Indebtedness:

            

    

     

    Aspen
Capital Advisors not to exceed $65,000

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

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

    

    
      	
              Schedule
      2.3

            	
              Borrower’s
      Operating Account for Disbursements

            

    

     

    
      
        	
                Bank
      Name:

              	
                [***]

              
	
                ABA
      #:

              	
                [***]

              
	
                City/State:

              	
                [***]

              
	
                Account
      #:

              	
                [***]

              
	
                Account
      Name:

              	
                [***]

              

      

    

    

    
      	
              Schedule
      5.3B

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

            

    

     

    Medicare

    United
Healthcare

    Blue
Cross/Blue Shield of Florida 7/1/2009

    

    
      	
              Schedule
      7.3

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

            

    

     

    NeoGenomics
Laboratories, Inc., a Florida Corporation

    NeoGenomics
California Laboratories, LLC, a California limited liability
company

    (currently
inactive)

     

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

     

    None

     

    Capitalization
of NeoGenomics, Inc, a Nevada Corporation

     

    
      
        
          
            
              
                
                  	
                          Common
      Shares Authorized:

                        	 	 	100,000,000	 
	
                          Common
      Stock Outstanding (as of 4/14/10):

                        	 	 	37,278,668	 
	 	 	 	 	 
	
                          Preferred
      Stock Authorized:

                        	 	 	10,000,000	 
	
                          Preferred
      Stock Outstanding (as of 4/14/10):

                        	 	
                          None

                        	 
	 	 	 	 	 
	
                          Warrants
      Outstanding (as of 4/14/10):

                        	 	 	5,876,750	 
	
                          Options
      Outstanding (as of 4/14/10):

                        	 	 	5,019,002	 

                

              

            

          

        

      

    

     

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

     

    Capitalization
of NeoGenomics Laboratories, Inc, a Florida Corporation

     

    
      
        
          
            
              	
                      Common
      Shares Authorized:

                    	 	 	100	 
	
                      Common
      Sock Outstanding:

                    	 	 	100	 

            

             

          

        

      

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

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

     

    Board
of Directors of NeoGenomics, Inc, a Nevada Corporation

     

    
      
        	
                Michael
      T. Dent, M.D.

              	
                George
      G. O’Leary

              
	
                Robert
      P. Gasparini

              	
                Peter
      M. Peterson

              
	
                Marvin
      E. Jaffe, M.D.

              	
                William
      J. Robison

              
	
                Steven
      C. Jones

              	
                Douglas
      M. VanOort

              

      

    

    

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

     

    Douglas
M. VanOort

    Michael
T. Dent, M.D.

    Robert P.
Gasparini

    

    
      	
              Schedule
      7.4A

            	
              Locations
      of Leased Properties

            

    

     

    12701
Commonwealth Drive, Suites 1-9

    Fort
Myers, FL 33913

    

    618
Grassmere Park Drive, Suite 20

    Nashville,
TN  37211

    

    6 Morgan
Street, Suite’s 116,130 and 150

    Irvine,
CA 92618

    

    9548
Topanga Canyon Blvd.

    Chatsworth,
CA  91311

    

    
      	
              Schedule
      7.4B

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

            

    

     

    
      
        
          
            	
                    Bank

                  	 
      	
                    Account #

                  	 
      	
                    Description

                  
	
                    [***] 

                  	 
      	
                    [***] 

                  	 
      	
                    [***] 

                  
	
                    [***] 

                  	 
      	
                    [***] 

                  	 
      	
                    [***] 

                  
	
                    [***] 

                  	 
      	
                    [***] 

                  	 
      	
                    [***] 

                  
	
                    [***] 

                  	 
      	
                    [***] 

                  	 
      	
                    [***] 

                  
	
                    [***] 

                  	 
      	
                    [***] 

                  	 
      	
                    [***] 

                  
	
                    [***] 

                  	
                     

                  	
                    [***] 

                  	
                     

                  	
                    [***]
  

                  

          

        

      

    

     

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

     

    
      
        
          
            
              	
                      Bank

                    	 
      	
                      Account #

                    	 
      	
                      Description

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	 
      	
                      [***] 

                    	 
      	
                      [***] 

                    
	
                      [***] 

                    	
                       

                    	
                      [***] 

                    	
                       

                    	
                      [***]
  

                    

            

             

          

        

      

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

    
      
         

      

      
        v

        
          

        

      

      
         

      

    

    

    
      	
              Schedule
      7.5

            	
              Affiliate
      Contracts

            

    

     

    HCSS, LLC
and PathCenter Inc.

     

    On
March 11, 2005, we entered into an agreement with HCSS, LLC and eTelenext, Inc.
to enable NeoGenomics to use eTelenext, Inc’s Accessioning Application, AP
Anywhere Application and CMQ Application.  HCSS, LLC is a holding
company created to build a small laboratory network for the 50 small commercial
genetics laboratories in the United States.  HCSS, LLC is owned 66.7%
by Dr. Michael T. Dent, a member of our Board of Directors.  George
O’Leary, a member of our board of directors is Chief Financial Officer of HCSS,
LLC.

     

    On
June 18, 2009, we entered into a Software Development, License and Support
Agreement with HCSS, LLC and eTelenext, Inc. to upgrade the Company’s laboratory
information system to APvX.  .  The estimated costs for the
development and migration phase are anticipated to be approximately $75,000 and
are expected to be completed in April 2010.  This agreement has an
initial term of 5 years from the date of acceptance and calls for monthly fees
of $8,000-$12,000 during the term.  During the years ended December
31, 2009 and 2008, HCSS earned approximately $87,675 and approximately $99,900,
respectively, for transaction fees related to completed tests.

     

    During
2009 eTelenext and HCSS were merged to form PathCenter, Inc.  Dr.
Michael T. Dent and Mr. George O’Leary have beneficial ownership of 12.2% and
4.6%, respectively of PathCenter, Inc.

     

    Certain
Consulting Agreements with Board Members

     

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

    
      
         

      

      
        vi

        
          

        

      

      
         

      

    

     

    Certain
Leasing Arrangements with Gulf Pointe Capital, LLC

     

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

     

    
      
        	 	
                a.) 

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

              

      

    

     

    
      	 	
              b.) 

            	
              Extend
      the lease term for a minimum of six
months.

            

    

     

    
      	 	
              c.) 

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

            

    

     

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

     

    Certain
Stock and Warrant Agreements with Douglas M. VanOort

     

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

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

     

    Strategic
Supply Agreement

     

    On
July 24, 2009, NeoGenomics Laboratories, Inc. and Abbott Molecular Inc., a
Delaware corporation (“Abbott
Molecular”), entered into a Strategic Supply Agreement (the “Supply
Agreement”).  The Supply Agreement, among other things,
provides for Abbott Molecular to supply materials with which NeoGenomics
Laboratories intends to develop its own FISH (fluorescence in situ
hybridization)-based test for the diagnosis of malignant melanoma in skin biopsy
specimens (excluding subtyping) (the “Melanoma
LDT”).

    

    Common Stock Purchase
Agreement and Registration Rights Agreement

    

    On July
24, 2009, NeoGenomics, Inc. entered into a Common Stock Purchase Agreement (the
“Common Stock Purchase
Agreement”) with Abbott Laboratories, an Illinois corporation (“Abbott”), and
consummated the issuance and sale to Abbott, for an aggregate purchase price of
$4,767,000, of 3,500,000 shares of common stock, $0.001 par value per share (the
“Shares”).  Pursuant
to the terms of the Common Stock Purchase Agreement, Abbott is prohibited from
selling or otherwise transferring the Shares until January 20,
2010.

    

    On July
24, 2009, NeoGenomics, Inc. and Abbott also entered into a Registration Rights
Agreement that, among other things, grants certain demand and piggyback
registration rights to Abbott with respect to the Shares.

    

    Research DX,
LLC

    

    During
2009 we began to use Research DX, LLC. to perform clinical trial management
services and Cytogenetics testing for us on an overflow basis. The expense for
these services is between $15,000 and $25,000 on a monthly basis.  We
also receive clinical trial testing work from this entity which could be as much
as $600,000 in revenue to NeoGenomics Laboratories, Inc. during FY
2010.  Our Vice President of Research Mat Moore has a 50 % ownership
in Research DX which was formed in November 2008.

     

    
      	
              Schedule
      7.6

            	
              Litigation

            

    

     

    PENDING AND THREATENED
LITIGATION:

     

    Katherine
Elias

    

    On April
8, 2010, the Company was served with a complaint by Ms. Katherine Elias, a
former sales representative of the Company who was employed from October 2007 –
February 2009.  The suit, which was filed in the Circuit Court for the
Twentieth Judicial District in and for Lee County Florida (the “Court”), seeks,
among other items, an accounting of all commissions which may be due and owing
to Ms. Elias and alleges that NeoGenomics owes Ms. Elias approximately $96,000
in unpaid commissions.  The Company believes that this is a frivolous
lawsuit by a disgruntled former employee and intends to vigorously pursue its
defense of this matter.  A motion to dismiss this case is in the
process of being prepared and no hearings have been scheduled as of
yet.

     

    
      
        
        

      

      
        viii

        
          

        

      

      
        
        

      

    

     

    Potential Qui Tam
Complaint

    

    On
November 9th, 2009, the Company was notified by the Civil Division of the U.S.
Department of Justice (“DOJ”) that a “Qui Tam” Complaint (“Complaint”) had been
filed under seal by a private individual against a number of health care
companies, including the Company. The Complaint is an action to recover damages
and civil penalties arising from alleged false or fraudulent claims and
statements submitted or caused to be submitted by the defendants to Medicare.
The DOJ has not made any decision whether to join the action. The Company
believes the allegations in the Complaint are without merit and intends to
vigorously defend itself if required to do so.

    

    Thomas
Schofield

    

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

    

    Dr. Peter
Kohn

    

    In
October 2004, Dr. Peter Kohn resigned as Lab Director of NeoGenomics. His
employment contract with the Company ended September 30, 2004 and was not
renewed. There was communication between Mr. Thomas White, former CEO and Dr.
Kohn in October regarding health coverage and unused vacation time stemming from
his first contract with the Company that expired in September 2003 and was
superseded with a second contract.  On January 12, 2005, the Company
received a complaint filed in the Circuit Court for Seminole County, Florida by
its former Laboratory Director, Dr. Peter Kohn, which was then amended three
times.  The complaint alleged that the Company owed Dr. Kohn
approximately $22,000 in back vacation pay and other unspecified
damages.  The Company believes that it owed Dr. Kohn no more than
approximately $12,352 in unused vacation time, which it paid to Dr.
Kohn.

    

    In March
2007, the Company filed a motion to dismiss most of the third amended complaint,
except for the count dealing with the unused vacation pay from the second
contract, which the Company has acknowledged that it owed to Dr.
Kohn.  On May 1, 2007, the judged dismissed two of the four counts
that the Company had requested be dismissed.  There was no meaningful
activity on this case from the summer of 2007 until October 2009.  In
October 2009, as the deadline drew near for proceeding with the case or having
the court abandon it for lack of prosecution, Dr. Koh’s attorney filed a motion
to strike certain affirmative defenses which motion had been filed back in 2007,
and a hearing was held on November 24, 2009.  At this hearing, the
Court granted in part and denied in part the motion to strike certain
affirmative defenses and allowed Neogenomics to serve amended affirmative
defenses, which it did on January 6, 2010. There has been no litigation activity
since that time.

     

    
      
        
        

      

      
        ix

        
          

        

      

      
        
        

      

    

     

    The
Company continues to believe that Dr. Kohn’s claims are baseless and that Dr.
Kohn’s lawyer is keeping the case alive only in the hopes of settling the case
for accrued but unpaid legal fees (unpaid by Dr. Kohn).  Should Dr.
Kohn continue to pursue this action, the Company intends to vigorously pursue
its defense of this matter.  If the Company were found liable for Dr.
Kohn’s claims, the Company does not believe the amounts in question would be
material to the ongoing operations of the Company.

    

    Other Litigation in the
Normal Course of Business

    

    From time
to time the Credit Parties are also subject to legal proceedings, claims and
litigation arising in the ordinary course of business where (a) the amount in
controversy does not exceed $125,000 and (b) no injuctive relief is being sought
by the parties.  We do not expect the ultimate costs to resolve these
matters to have a material adverse effect on our consolidated financial
position, results of operations or cash flows.

    

    CLOSED, SETTLED OR ABANDONED
LITIGATION:

    

    US Labs

    

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

     

    On
April 23, 2008, the Company and US Labs entered into the Settlement Agreement;
whereby, both parties agreed to settle and resolve all claims asserted in and
arising out of the aforementioned lawsuit. Pursuant to the Settlement Agreement,
the Defendants are required to pay $500,000 to US Labs, of which $250,000 was
paid on May 1, 2008 with funds from the Company’s insurance
carrier.  The remaining $250,000 was paid by the Company on the last
day of each month in equal installments of $31,250 commencing on May 31,
2008.  All payments had been made to US Labs under the Settlement
Agreement and the case is closed.

     

    
      
        
        

      

      
        x

        
          

        

      

      
        
        

      

    

     

    FCCI Commercial Insurance
Company

    

    A civil
lawsuit was pending between the Company and its liability insurer, FCCI
Commercial Insurance Company ("FCCI") in the 20th Judicial Circuit Court in and
for Lee County, Florida (Case No. 07-CA-017150).  FCCI filed the suit
on December 12, 2007 in response to the Company's demands for insurance benefits
with respect to an underlying action involving US Labs (a settlement agreement
has since been reached in the underlying action, and thus that case has now
concluded).  Specifically, the Company maintains that the underlying
plaintiff's allegations triggered the subject insurance policy's personal and
advertising injury coverage.  In the lawsuit, FCCI sought a court
judgment that it owes no obligation to the Company regarding the underlying
action (FCCI does not seek monetary damages).  A hearing was held on
November 9, 2009 and the Court issued a ruling in favor of FCCI on January 25,
2010.  No monetary damages were sought or awarded and the case is now
closed.

    

    
      	
              Schedule
      7.11

            	
              Intellectual
      Property

            

    

     

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

    

    
      	
              Schedule
      7.15A

            	
              Existing
      Indebtedness, Investments, Guarantees and Certain
  Contracts

            

    

    

    Existing
Indebtedness of Guarantor

    

    Existing
Indebtedness and Contracts for Indebtedness by Borrower

     

    
      
        
        

      

      
        xi

        
          

        

      

      
        
        

      

    

       

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      
                                                                                                                                                                        
                                                                                                                                                                          
                                                                                                                                                                            
                                                                                                                                                                              
                                                                                                                                                                                
                                                                                                                                                                                  
                                                                                                                                                                                    
                                                                                                                                                                                      
                                                                                                                                                                                        
                                                                                                                                                                                          
                                                                                                                                                                                            
                                                                                                                                                                                              
                                                                                                                                                                                                
                                                                                                                                                                                                  
                                                                                                                                                                                                    
                                                                                                                                                                                                      
                                                                                                                                                                                                        
                                                                                                                                                                                                          
                                                                                                                                                                                                            
                                                                                                                                                                                                              
                                                                                                                                                                                                                
                                                                                                                                                                                                                  
                                                                                                                                                                                                                    
                                                                                                                                                                                                                      
                                                                                                                                                                                                                        
                                                                                                                                                                                                                          
                                                                                                                                                                                                                            
                                                                                                                                                                                                                              
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                              	 	 	 
      	 	 
      	 	
                                                                                                                                                                                                                                                                                                                                                      Amount
      of

                                                                                                                                                                                                                                                                                                                                                    	 	 
      	 	 	 	
                                                                                                                                                                                                                                                                                                                                                      Term

                                                                                                                                                                                                                                                                                                                                                    	 	 	 	 	
                                                                                                                                                                                                                                                                                                                                                      Balance

                                                                                                                                                                                                                                                                                                                                                    	 
	
                                                                                                                                                                                                                                                                                                                                                      #

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lender

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Asset
      Description

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Start
      date

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Term

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Date

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Payment

                                                                                                                                                                                                                                                                                                                                                    	 	 	
                                                                                                                                                                                                                                                                                                                                                      3/31/10

                                                                                                                                                                                                                                                                                                                                                    	 
	 	 	 
      	 	 
      	 	 	 	 
      	 	 	 	 
      	 	 	 	 	 	 
	
                                                                                                                                                                                                                                                                                                                                                      1

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      US
      Express Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	11,204	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	413.29	 	 	 	-	 
	
                                                                                                                                                                                                                                                                                                                                                      2

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Balboa
      Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Furniture
      & fixtures

                                                                                                                                                                                                                                                                                                                                                    	 	$	19,820	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	440.82	 	 	 	9,238.79	 
	
                                                                                                                                                                                                                                                                                                                                                      3

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      VAR
      222707 - PC Connections

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	6,245	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	372.41	 	 	 	-	 
	
                                                                                                                                                                                                                                                                                                                                                      4

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      VAR
      res 13107 - PC Connections

                                                                                                                                                                                                                                                                                                                                                    	 	Computer
      Equipment	 	$	3,554	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	299.32	 	 	 	-	 
	
                                                                                                                                                                                                                                                                                                                                                      5

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      California
      Beckman

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Cytomics
      PC 500

                                                                                                                                                                                                                                                                                                                                                    	 	$	136,118	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,791.77	 	 	 	68,131.53	 
	
                                                                                                                                                                                                                                                                                                                                                      6

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Baytree

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      BMC
      Software/customer svc

                                                                                                                                                                                                                                                                                                                                                    	 	$	15,783	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	551.70	 	 	 	-	 
	
                                                                                                                                                                                                                                                                                                                                                      7

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Royal
      bank of america

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Abbott
      molecular Thermobrite

                                                                                                                                                                                                                                                                                                                                                    	 	$	80,936	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	48	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,289.39	 	 	 	19,281.66	 
	
                                                                                                                                                                                                                                                                                                                                                      8

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Beckman
      Coulter Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Flow
      Cytometer

                                                                                                                                                                                                                                                                                                                                                    	 	$	125,064	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,691.14	 	 	 	29,177.96	 
	
                                                                                                                                                                                                                                                                                                                                                      9

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Marlin
      Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Ikonisys
      comupter support equip

                                                                                                                                                                                                                                                                                                                                                    	 	$	48,230	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,201.35	 	 	 	16,867.66	 
	
                                                                                                                                                                                                                                                                                                                                                      10

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      B of
      A Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      hardware & servers

                                                                                                                                                                                                                                                                                                                                                    	 	$	98,405	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,366.25	 	 	 	34,334.35	 
	
                                                                                                                                                                                                                                                                                                                                                      11

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      AEL
      Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      IkoniScope

                                                                                                                                                                                                                                                                                                                                                    	 	$	100,170	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,315.93	 	 	 	35,565.48	 
	
                                                                                                                                                                                                                                                                                                                                                      12

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      GE
      Capital Corp

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      IkoniScope

                                                                                                                                                                                                                                                                                                                                                    	 	$	100,170	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,105.47	 	 	 	31,750.71	 
	
                                                                                                                                                                                                                                                                                                                                                      13

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Beckman
      Coulter

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Coulter
      Hematology Analyzer

                                                                                                                                                                                                                                                                                                                                                    	 	$	18,375	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	760.79	 	 	 	7,046.20	 
	
                                                                                                                                                                                                                                                                                                                                                      14

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Bank
      of America

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      hardware & servers

                                                                                                                                                                                                                                                                                                                                                    	 	$	8,954	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	228.23	 	 	 	3,605.69	 
	
                                                                                                                                                                                                                                                                                                                                                      15

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Royal
      Bank (BMT) 24K Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      hardware & servers

                                                                                                                                                                                                                                                                                                                                                    	 	$	23,494	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	48	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	718.38	 	 	 	5,092.11	 
	
                                                                                                                                                                                                                                                                                                                                                      16

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Royal
      Bank (BMT) 18K Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      hardware & servers

                                                                                                                                                                                                                                                                                                                                                    	 	$	17,661	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-06

                                                                                                                                                                                                                                                                                                                                                    	 	 	48	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	549.26	 	 	 	3,879.92	 
	
                                                                                                                                                                                                                                                                                                                                                      17

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Toshiba
      Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Phone
      system

                                                                                                                                                                                                                                                                                                                                                    	 	$	42,784	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	997.75	 	 	 	18,295.89	 
	
                                                                                                                                                                                                                                                                                                                                                      18

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Key
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Genetic
      imaging system

                                                                                                                                                                                                                                                                                                                                                    	 	$	124,820	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	3,089.94	 	 	 	72,523.17	 
	
                                                                                                                                                                                                                                                                                                                                                      19

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Great
      America

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Genetic
      imaging system

                                                                                                                                                                                                                                                                                                                                                    	 	$	55,920	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,391.68	 	 	 	31,979.91	 
	
                                                                                                                                                                                                                                                                                                                                                      20

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Bank
      of America

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Seacoast
      billing software

                                                                                                                                                                                                                                                                                                                                                    	 	$	74,788	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	3,124.95	 	 	 	14,316.53	 
	
                                                                                                                                                                                                                                                                                                                                                      21

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      DDI
      Leasing

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Iloniscope,
      great plains etc

                                                                                                                                                                                                                                                                                                                                                    	 	$	13,671	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	474.35	 	 	 	4,040.35	 
	
                                                                                                                                                                                                                                                                                                                                                      22

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Var
      Resources

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      HW

                                                                                                                                                                                                                                                                                                                                                    	 	$	27,712	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	972.87	 	 	 	6,496.03	 
	
                                                                                                                                                                                                                                                                                                                                                      23

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Beckman
      Coulter Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	128,819	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-07

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,642.07	 	 	 	75,424.88	 
	
                                                                                                                                                                                                                                                                                                                                                      24

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      GE
      Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	66,978	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,479.34	 	 	 	20,969.78	 
	
                                                                                                                                                                                                                                                                                                                                                      25

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      DeLange
      Landen

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	76,502	 	
                                                                                                                                                                                                                                                                                                                                                      May-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	58	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-13

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,937.86	 	 	 	53,059.83	 
	
                                                                                                                                                                                                                                                                                                                                                      26

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      DDI
      Leasing

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Furntiure

                                                                                                                                                                                                                                                                                                                                                    	 	$	70,524	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,266.00	 	 	 	23,477.13	 
	
                                                                                                                                                                                                                                                                                                                                                      27

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      DDI
      Leasing

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Furniture
      & fixtures

                                                                                                                                                                                                                                                                                                                                                    	 	$	10,726	 	
                                                                                                                                                                                                                                                                                                                                                      May-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	376.71	 	 	 	4,153.61	 
	
                                                                                                                                                                                                                                                                                                                                                      28

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Direct
      Capital Lease

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      HW and Software

                                                                                                                                                                                                                                                                                                                                                    	 	$	62,250	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Jun-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,504.04	 	 	 	30,368.91	 
	
                                                                                                                                                                                                                                                                                                                                                      29

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Baytree
      Leasing Company, LLC

                                                                                                                                                                                                                                                                                                                                                    	 	Lab
    Equipment	 	$	82,537	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	58	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-13

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,128.50	 	 	 	63,942.41	 
	
                                                                                                                                                                                                                                                                                                                                                      30

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Butler
      Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	114,427	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	34	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	4,098.13	 	 	 	59,485.84	 
	
                                                                                                                                                                                                                                                                                                                                                      31

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Butler
      Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	13,851	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	34	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	524.36	 	 	 	7,400.44	 
	
                                                                                                                                                                                                                                                                                                                                                      32

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Gulf
      Pointe Capital, LLC

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment, computer hW

                                                                                                                                                                                                                                                                                                                                                    	 	$	124,747	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-08

                                                                                                                                                                                                                                                                                                                                                    	 	 	29	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	5,154.88	 	 	 	52,671.27	 
	
                                                                                                                                                                                                                                                                                                                                                      33

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Royal
      Bank

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	60,744	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,357.43	 	 	 	40,376.53	 
	
                                                                                                                                                                                                                                                                                                                                                      34

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Court
      Square (First Credit Corp)

                                                                                                                                                                                                                                                                                                                                                    	 	Lab
    Equipment	 	$	35,675	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	58	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-13

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,022.32	 	 	 	29,807.57	 
	
                                                                                                                                                                                                                                                                                                                                                      35

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      LTI

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	421,851	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	34	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	15,282.00	 	 	 	269,218.16	 
	
                                                                                                                                                                                                                                                                                                                                                      36

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Becman
      Coulter

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Flow
      Cytometer

                                                                                                                                                                                                                                                                                                                                                    	 	$	125,362	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-13

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,552.37	 	 	 	98,634.76	 
	
                                                                                                                                                                                                                                                                                                                                                      37

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Credential
      Leasing

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      Hardware

                                                                                                                                                                                                                                                                                                                                                    	 	$	63,849	 	
                                                                                                                                                                                                                                                                                                                                                      Feb-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	46	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,099.86	 	 	 	51,027.76	 
	
                                                                                                                                                                                                                                                                                                                                                      38

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Gulf
      Pointe Capital, LLC

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	118,192	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	30	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-11

                                                                                                                                                                                                                                                                                                                                                    	 	 	4,864.45	 	 	 	76,801.25	 
	
                                                                                                                                                                                                                                                                                                                                                      39

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Var
      Resources

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      Hardware

                                                                                                                                                                                                                                                                                                                                                    	 	$	60,481	 	
                                                                                                                                                                                                                                                                                                                                                      Jun-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	34	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,340.06	 	 	 	46,854.67	 
	
                                                                                                                                                                                                                                                                                                                                                      40

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      LTI

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	424,116	 	
                                                                                                                                                                                                                                                                                                                                                      Jun-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	15,357.57	 	 	 	333,652.97	 
	
                                                                                                                                                                                                                                                                                                                                                      41

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      LTI

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	38,614	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      May-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,424.63	 	 	 	31,464.78	 
	
                                                                                                                                                                                                                                                                                                                                                      42

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Butler
      Capital

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Furniture
      & fixtures

                                                                                                                                                                                                                                                                                                                                                    	 	$	95,002	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	3,305.62	 	 	 	81,266.65	 
	
                                                                                                                                                                                                                                                                                                                                                      43

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Becman
      Coulter

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Flow
      Cytometer

                                                                                                                                                                                                                                                                                                                                                    	 	$	125,581	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-14

                                                                                                                                                                                                                                                                                                                                                    	 	 	2,710.24	 	 	 	115,808.30	 
	
                                                                                                                                                                                                                                                                                                                                                      44

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Royal
      Bank

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Computer
      Hardware APVX

                                                                                                                                                                                                                                                                                                                                                    	 	$	84,347	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	36	 	
                                                                                                                                                                                                                                                                                                                                                      Aug-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	3,082.36	 	 	 	73,349.51	 
	
                                                                                                                                                                                                                                                                                                                                                      45

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      LTI

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Furniture
      & fixtures

                                                                                                                                                                                                                                                                                                                                                    	 	$	28,177	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	35	 	
                                                                                                                                                                                                                                                                                                                                                      Jul-12

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,013.36	 	 	 	24,227.83	 
	
                                                                                                                                                                                                                                                                                                                                                      46

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Wells
      Fargo

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	282,897	 	
                                                                                                                                                                                                                                                                                                                                                      Oct-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-14

                                                                                                                                                                                                                                                                                                                                                    	 	 	5,794.67	 	 	 	259,649.25	 
	
                                                                                                                                                                                                                                                                                                                                                      47

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Suntrust

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment, Computer HW and furniture

                                                                                                                                                                                                                                                                                                                                                    	 	$	422,905	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-09

                                                                                                                                                                                                                                                                                                                                                    	 	 	59	 	
                                                                                                                                                                                                                                                                                                                                                      Sep-14

                                                                                                                                                                                                                                                                                                                                                    	 	 	8,433.67	 	 	 	398,415.42	 
	
                                                                                                                                                                                                                                                                                                                                                      48

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Wells
      Fargo

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment

                                                                                                                                                                                                                                                                                                                                                    	 	$	421,516	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Dec-14

                                                                                                                                                                                                                                                                                                                                                    	 	 	8,627.66	 	 	 	410,121.89	 
	
                                                                                                                                                                                                                                                                                                                                                      49

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Suntrust

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment and small amount furniture

                                                                                                                                                                                                                                                                                                                                                    	 	$	287,992	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	59	 	
                                                                                                                                                                                                                                                                                                                                                      Nov-14

                                                                                                                                                                                                                                                                                                                                                    	 	 	5,703.88	 	 	 	279,639.68	 
	
                                                                                                                                                                                                                                                                                                                                                      50

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      DeLange
      Landen

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Copiers

                                                                                                                                                                                                                                                                                                                                                    	 	$	30,139	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	34	 	
                                                                                                                                                                                                                                                                                                                                                      Jan-13

                                                                                                                                                                                                                                                                                                                                                    	 	 	1,080.30	 	 	 	30,138.78	 
	
                                                                                                                                                                                                                                                                                                                                                      51

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Suntrust

                                                                                                                                                                                                                                                                                                                                                    	 	
                                                                                                                                                                                                                                                                                                                                                      Lab
      Equipment, Computer HW

                                                                                                                                                                                                                                                                                                                                                    	 	$	248,898	 	
                                                                                                                                                                                                                                                                                                                                                      Apr-10

                                                                                                                                                                                                                                                                                                                                                    	 	 	60	 	
                                                                                                                                                                                                                                                                                                                                                      Mar-15

                                                                                                                                                                                                                                                                                                                                                    	 	 	4,901.52	 	 	 	248,898.00	 
	 	 	 
      	 	 
      	 	$	5,281,577	 	 
      	 	 	 	 	 
      	 	 	146,212.90	 	 	 	3,701,931.80	 

                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                

                                                                                                                                                                                                                              

                                                                                                                                                                                                                            

                                                                                                                                                                                                                          

                                                                                                                                                                                                                        

                                                                                                                                                                                                                      

                                                                                                                                                                                                                    

                                                                                                                                                                                                                  

                                                                                                                                                                                                                

                                                                                                                                                                                                              

                                                                                                                                                                                                            

                                                                                                                                                                                                          

                                                                                                                                                                                                        

                                                                                                                                                                                                      

                                                                                                                                                                                                    

                                                                                                                                                                                                  

                                                                                                                                                                                                

                                                                                                                                                                                              

                                                                                                                                                                                            

                                                                                                                                                                                          

                                                                                                                                                                                        

                                                                                                                                                                                      

                                                                                                                                                                                    

                                                                                                                                                                                  

                                                                                                                                                                                

                                                                                                                                                                              

                                                                                                                                                                            

                                                                                                                                                                          

                                                                                                                                                                        

                                                                                                                                                                      

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                   

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    Investments
Held by Guarantor

    

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

    

    Investments
Held by Subsidiary

    

    None

     

    
      	
              Schedule
      7.15B

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

            

    

     

    
      	
              Schedule
      7.16

            	
              Other Agreements - See
      Schedule 7.5

            

    

    
      
         

      

      
        xii

        
          

        

      

      
         

      

    

    

    
      	
              Schedule
      7.17

            	
              Insurance

            

    

    

    
      
        
          
            
              
                
                  	
                          NeoGenomics
      Laboratories, Inc.

                        	 
	
                          Commercial
      Insurance Schedule

                        	 
	 	 	
                          Broker / Agent

                        	 	
                          Carrier (Ins. Co)

                        	 	
                          Policy Number

                        	 	
                          Policy Premium

                        	 	
                          Effective Date

                        	 	
                          Expiration

                          Date

                        	 	
                          Limit

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 
      	 	 
      	 	 	 
	 	 	 
      	 	
                          Homeland
      Ins. Co of NY.

                        	 	 
      	 	 	 	 
      	 	 
      	 	 	 
	
                          1

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Prof.
      Liability

                        	 	
                          MFL-0146-09

                        	 	$	71,994	 	
                          10/9/2009

                        	 	
                          10/9/2010

                        	 	
                          1M/3M

                        	 
	 	 
	
                          2

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Homeland

                        	 	
                          MFX-0051-09

                        	 	$	35,734	 	
                          10/9/2009

                        	 	
                          10/9/2010

                        	 	
                          10M
      Excess of

                          all
      Underlying

                        	 
	 	 
	 	 	 
      	 	
                          Automobile

                        	 	
                          CA2053213

                        	 	 	 	 	 
      	 	 
      	 	
                          See
      Policy

                        	 
	 	 	 
      	 	
                          Amerisure
      Commercial.

                        	 	
                          CA2053214

                        	 	 	 	 	 
      	 	 
      	 	
                          See
      Policy

                        	 
	 	 	 
      	 	
                          General
      Liability

                        	 	
                          GL2053215

                        	 	 	 	 	 
      	 	 
      	 	
                          GL
      1M

                        	 
	
                          3

                        	 	
                          Gulfshore
      Insurance

                        	 	
                          Umbrella
      Liability

                        	 	
                          CU2053216

                        	 	$	72,088	 	
                          5/4/2009

                        	 	
                          5/4/2010

                        	 	
                          UL
      4M

                        	 
	 	 
	 	 	 
      	 	
                          Amerisure
      - Worker's

                        	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          4

                        	 	
                          Gulfshore
      Insurance

                        	 	
                          Comp

                        	 	
                          WC253879

                        	 	$	70,346	 	
                          5/4/2009

                        	 	
                          5/4/2010

                        	 	 	 
	 	 
	
                          5

                        	 	
                          Gulfshore
      Insurance

                        	 	
                          Ins.
      Co. of the West CA DIC - EQ

                        	 	
                          XCH
      - 5002667

                        	 	$	24,600	 	
                          11/6/2009

                        	 	
                          11/6/2010

                        	 	
                          3,145,906

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          6

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Great
      American Ins. Co.

                        	 	
                          NSP2380654

                        	 	$	19,884	 	
                          6/15/2009

                        	 	
                          6/15/2010

                        	 	
                          2M +
      Excess

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          6A

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Great
      American Ins. Co.

                        	 	
                          NSP2380654

                        	 	$	12,260	 	
                          8/24/2009

                        	 	
                          6/15/2010

                        	 	
                          3M

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	 	 	 
      	 	
                          Great
      American Ins. Co.

                        	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          7

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Employers
      Liability

                        	 	
                          EPL2824392

                        	 	$	7,511	 	
                          6/15/2009

                        	 	
                          6/15/2010

                        	 	
                          1M

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	 	 	 
      	 	
                          Great
      American Ins. Co.

                        	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          8

                        	 	
                          Russell
      Bond & Co.

                        	 	
                          Fiduciary
      Liability

                        	 	
                          FDP6660848

                        	 	$	820	 	
                          7/14/2009

                        	 	
                          7/14/2010

                        	 	
                          1M

                        	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	 	 	 	 	
                          Old
      Republic Surety Co.

                        	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          9

                        	 	
                          Bacarella
      Ins.

                          (Jim
      Michaelis)

                        	 	
                          Medicaid
      Provider Surety bond $50,000

                        	 	 
      	 	$	1,010	 	
                          2/25/2010

                        	 	
                          2/25/2011

                        	 	 	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	 	 	
                          Bacarella
      Ins.

                        	 	
                          Old
      Republic Surety Co.

                        	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	
                          10

                        	 	
                          (Jim
      Michaelis)

                        	 	
                          Injunction
      bond $25,000

                        	 	 
      	 	$	505	 	
                          4/15/2010

                        	 	
                          4/15/2011

                        	 	 	 
	 	 	 
      	 	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 	 
	 	 	 
      	 	 
      	 	
                          Total
      Policy Premium

                        	 	$	316,752	 	 
      	 	 
      	 	 	 

                

              

            

          

        

      

    

    

    
      	
              Schedule
      7.18A

            	
              Borrower’s
      Names

            

    

     

    NeoGenomics
Laboratories, Inc.

    NeoGenomics
Laboratories

    

    
      	
              Schedule
      7.18B

            	
              Chief
      Executive Offices and Other Places of
Business

            

    

     

    Chief Executive
Offices

    12701
Commonwealth Drive, Suites 1-9

    Fort
Myers, FL 33913

    

    Other Places of
Business

    618
Grassmere Park Drive, Suite 20

    Nashville,
TN  37211

     

    
      
        
        

      

      
        xiii

        
          

        

      

      
        
        

      

    

     

    6 Morgan
Street, Suite’s 116, 130 and 150

    Irvine,
CA 92618

    

    9548
Topanga Canyon Blvd.

    Chatsworth,
CA  91311

    

    
      	
              Schedule
      8.8

            	
              Post-Closing
      Matters

            

    

     

    
      	
              Schedule
      9.2

            	
              Permitted
      Indebtedness

            

    

     

    All
Capital Leases listed in Schedule 7.15A

     

    
      	
              Schedule
      9.3

            	
              Permitted
      Liens

            

    

     

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

     

    
      	
              Schedule
      9.4

            	
              New
      Facilities

            

    

     

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

     

    [***] 

     

    [***] 

     

    
      	
              Schedule
      9.5

            	
              Related
      Party Contracts

            

    

    All
Related Party agreements listed in Schedule 7.5

     

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

    
      
         

      

      
        xiv

        
          

        

      

      
         

      

    

    EXHIBIT
A

    TO

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    BORROWING
CERTIFICATE

    dated as
of                                    ,
                 

    

    NEOGENOMICS, INC., a Florida
corporation, (the “Borrower”), by the undersigned
duly authorized officer, hereby certifies to Lender in accordance with the
Amended and Restated Revolving Credit and Security Agreement dated as of April
26, 2010, between Borrower, NeoGenomics, Inc., a Nevada corporation, and
CapitalSource Finance LLC (“Lender”) (as amended,
supplemented or modified from time to time, the "Loan Agreement;" all
capitalized terms not defined herein have the meanings given them in the Loan
Agreement) and other Loan Documents that:

    

    
      	
               
      

            	
              A.

            	
              Borrowing Base and
      Compliance

            

    

    

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

    

    
      	
               
      

            	
              B.

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

            

    

    

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

    

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

    

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

    

    
      	
               
      

            	
              (a)

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

            

    

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

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

    

    
      	
               
      

            	
              C.

            	
              General
      Certifications

            

    

    

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

    

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

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      NEOGENOMICS,
      INC.

                                    
	 
      	 
      	 
      	 
      	 
      
	
                                      Prepared
      by:

                                    	 
      	
                                      Approved
      by:

                                    
	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 
	  	 
      	 
      	 
      	 
      
	
                                      Name:

                                    	 
      	 
      	
                                      Name:

                                    	 
      
	
                                      Title:

                                    	 
      	 
      	 
      	
                                      Title:

                                    	 
      	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
B

    TO

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    FORM
OF COMPLIANCE CERTIFICATE

    

    Date:
[___________________]

    

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

    

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

    

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

    

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

    

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

     

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

    

    [Signature
page follows.]

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

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

    

    
      
        
          
            
              	 
      	
                      NEOGENOMICS,
      INC.

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    	 
      
	 
      	
                      Title:

                    	 
      

            

          

        

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    SCHEDULE
1 TO COMPLIANCE CERTIFICATE

    

    Date:  _______________
__, 20__

    

    For
calendar month and Test Period ended ____________

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            I.

                                          	
                                            MINIMUM
      FIXED CHARGE COVERAGE

                                          
	 
      	 
      
	 
      	
                                            ADJUSTED
      EBITDA

                                          
	 
      	 
      
	 
      	
                                            A.

                                          	
                                            Net
      Income

                                          
	 
      	 
      	 
      
	 
      	 
      	
                                            1.

                                          	
                                            Net
      income (or loss)

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            2.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            3.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            4.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            5.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            6.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            7.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	
                                            B.

                                          	
                                            Interest
      Expense

                                          	 	 
      
	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            1.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            2.

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

                                          	 	
                                            $___________

                                          
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            3.

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

                                          	 	 
      
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                            4.

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

                                          	 	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	 
      	 
      	
                      5.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 	 
      
	 
      	
                      C.

                    	
                      Taxes
      on income, whether paid, payable or accrued

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      D.

                    	
                      Depreciation
      expense

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      E.

                    	
                      Amortization
      expense

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      F.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      G.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      H.

                    	
                      Non-cash
      stock option and warrant-based compensation expense

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      I.

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

                    	 	 
      
	 
      	 
      	 
      	 	 
      
	 
      	
                      J.

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

                    	 	 
      
	 
      	 
      	 
      	 	 
      
	 
      	
                      K.

                    	
                      Other
      extraordinary or non-recurring gains

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      L.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	
                      II.

                    	
                      FIXED
      CHARGE COVERAGE RATIO

                    
	 
      	 
      
	 
      	
                      A.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      B.

                    	
                      Fixed
      Charges

                    
	 
      	 
      	 
      
	 
      	 
      	
                      1.

                    	
                      Total
      Debt Service

                    	 	 
      
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	 
      	
                      a.

                    	
                      Payments
      of principal on Indebtedness

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	 
      	
                      b.

                    	
                      Interest
      Expense (I.B.3)

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	 
      	
                      c.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                      2.

                    	
                      Unfinanced
      Capital Expenditures paid in cash

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                      3.

                    	
                      Income
      taxes paid in cash or accrued

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                      4.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                      5.

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

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 
      	 	 
      
	 
      	
                      C.

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

                    	 	
                      ____________

                    

            

          

        

      
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	 
      	
                      D.

                    	
                      MINIMUM
      RATIO REQUIRED:

                    	 	
                      ____________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      E.

                    	
                      COMPLIANCE:

                    	 	
                      __Yes/__No

                    
	 
      	 
      	 
      	 	 
      
	
                      III.

                    	
                      CASH
      VELOCITY

                    
	 
      	 
      
	 
      	
                      A.

                    	
                      Net
      revenue for the three calendar month period commencing the first day of
      the calendar month of the second month immediately preceding the first
      month of the current Test Period less the bad debt expense recognized on
      the income statement for such three calendar month period

                    	 	
                      $___________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      B.

                    	
                      Collections
      of the Borrower’s Accounts for the test period

                    	 	
                      $   _________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      C.

                    	
                      III(B)
      DIVIDED BY III(A)

                    	 	
                      $   _________

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      D.

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

                    	 	
                      87.5%

                    
	 
      	 
      	 
      	 	 
      
	 
      	
                      D.

                    	
                      COMPLIANCE:

                    	 	
                      __Yes/__No

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
2 TO COMPLIANCE CERTIFICATE

    

    Date:  ________________
__, 20__

    

    CONDITIONS OR EVENTS WHICH
CONSTITUTE

    A DEFAULT OR AN EVENT OF
DEFAULT

    

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

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    EXHIBIT
C

    TO

    AMENDED AND RESTATED
REVOLVING CREDIT SECURITY AGREEMENT

    

    OFFICER'S
CERTIFICATE

     

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

     

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

     

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

     

    IN
WITNESS WHEREOF, the undersigned has caused this Officer's Certificate to be
executed as of April 26, 2010.

     

    
      
        	 
      	
                NEOGENOMICS,
      INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Douglas VanOort

              
	 
      	 
      	
                Douglas
      VanOort

              
	 
      	 
      	
                Chief
      Executive Officer

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    TO

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    SOLVENCY
CERTIFICATE

    

    NEOGENOMICS,
INC.

    

    The
undersigned, George A.
Cardoza, hereby certifies that he is the Chief Financial Officer of NEOGENOMICS LABORATORIES,
INC., a Florida corporation (the “Borrower”), and that he makes this
certificate on behalf of the Borrower pursuant to Section 6.1 of that
certain Amended and Restated Revolving Credit and Security Agreement dated as of
April 26, 2010 (the “Agreement”), by and between the Borrower, NeoGenomics,
Inc., a Nevada corporation (together with its subsidiaries, the “Company”), and
CapitalSource Finance LLC, a Delaware limited liability company, and
further certifies to the solvency of the Borrower after giving effect to the
transactions and the Indebtedness (as defined in the Agreement) contemplated by
the Agreement and the other Loan Documents (as defined in the Agreement) and as
to the Borrower’s financial resources and ability to meet its obligations and
liabilities as they become due, to the effect that as of the Closing Date (as
defined in the Agreement) and the Borrowing Date for the Initial Advance and
after giving effect to the transactions and the Indebtedness contemplated by the
Agreement and the other Loan Documents:

    

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    IN
WITNESS WHEREOF, the undersigned has executed this Solvency Certificate as of
April 26, 2010.

    

    
      
        	 
      	
                NEOGENOMICS,
      INC.

              	 
      
	 
      	 
      	 
      
	 
      	
                /S/ George A. Cardoza

              	 
      
	 
      	
                Name:  George
      A. Cardoza

              	 
      
	 
      	
                Title:  Chief
      Financial Officer

              	 
      

      

    

    

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

     

    IN
WITNESS WHEREOF, the undersigned has caused this Incumbency Certificate to be
duly executed this 26th day of April , 2010.

    

    
      
        	 
      	
                /s/ Jerome Dvonch

              
	 
      	
                Name:  Jerome
      Dvonch

              
	 
      	
                Title:  Secretary

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