Document:

EX-10.2

 

Exhibit 10.2

          FIRST AMENDMENT, dated as of June ___, 2006, to the Guaranty, dated January ___, 2002
(the “Guaranty”), by BIOSCRIP, INC. (f/k/a MIM Corporation), a Delaware corporation (the
“Guarantor”), in favor of MIM FUNDING LLC, a
Delaware limited liability company (“Funding”).
Unless otherwise defined herein, terms in the Guaranty are used herein as therein defined.

          PRELIMINARY STATEMENTS. The Guarantor previously has changed its legal name to BioScrip, Inc.

          Pursuant
to the Sixth Amendment to the RPTA, dated as of June ___,
2006 (the “RPTA Amendment”),
Schedule I to the RPTA has been amended and restated to account for name changes of certain of the
Providers and the Addition (as defined in the RPTA) of certain additional Providers (the
“Additional Providers”).

          The Guarantor has derived and continues to derive substantial benefit from the transactions
contemplated by the RPTA and the Loan Agreement and it is a condition precedent to the Receivables
of each Additional Provider being considered Eligible Receivables (under and as defined in the
RPTA) that the Guarantor enter into this First Amendment.

          Accordingly, in consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, the Guarantor hereby agrees as
follows:

          SECTION 1. AMENDMENTS TO THE GUARANTY.

          The name of the Guarantor under the Guaranty as set forth in the preamble is hereby amended to
BioScrip, Inc.

          SECTION 2. RATIFICATION OF GUARANTY; WAIVER. The Guarantor hereby ratifies and confirms its
guaranty of the Guaranteed Obligations under the Guaranty and agrees that such guaranty shall
extend to Guaranteed Obligations of each of the Additional Providers and each of the other
Providers listed on Schedule I to the RPTA, as amended and restated pursuant to the RPTA Amendment.
The Guarantor hereby waives any claims, defenses or other rights of any kind and nature
whatsoever, the may have arisen as a result of this, the RPTA Amendment or any other Addition or
amendment or waiver of the Documents (as defined in the Loan Agreement).

          SECTION 3. MISCELLANEOUS

          3.1 The Providers each hereby certify, represent and warrant that (i) the representations and
warranties in the Guaranty are true and correct, with the same force and effect as if made on such
date, except as they may specifically refer to an earlier date, in which case they were true and
correct as of such date, and (ii) the Guarantor has the corporate power and authority to execute
and deliver this First Amendment.

 

 

          3.2 THIS FIRST AMENDMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATION
LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
ANY CONFLICTS OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY
OTHER JURISDICTION.

          3.3 This First Amendment may be executed in counterparts, each of which when so executed shall
be deemed to be an original and all of which when taken together shall constitute one and the same
agreement.

          3.4 Delivery of an executed counterpart of a signature page by telecopier shall be effective
as delivery of a manually executed counterpart.

2

 

          IN WITNESS WHEREOF, the Guarantor has caused this First Amendment to Guaranty to be duly
executed as of the date first above set forth.

	 	 	 	 	 
	 	BIOSCRIP, INC. (f/k/a MIM Corporation)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 
	 
	 	 	 	 	 	 	 	 
	MIM FUNDING LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	HFG HEALTHCO-4 LLC, as collateral assignee of Funding	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	HFG Healthco-4, Inc., a member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:EX-10.3

 

Exhibit 10.3

SUBSCRIPTION AGREEMENT

Dated as of June                     , 2006

          BIOSCRIP PBM SERVICES, LLC (as successor to MIM Health Plans, Inc.), a corporation organized
under the laws of the State of Delaware (together with its successors and assigns, the “Primary
Servicer”), BIOSCRIP INFUSION SERVICES, INC., a California corporation (“Infusion Services”),
BIOSCRIP PHARMACY, INC., a Minnesota corporation (“BioScrip Pharmacy”), JPD, INC., an Ohio
corporation (“JPD”) and NATURAL LIVING, INC., a New York corporation (“Natural Living”, and
together with Infusion Services, BioScrip Pharmacy and JPD, and each of their successors and
assigns, the “New Providers”), each a wholly-owned direct or indirect subsidiary of BioScrip, Inc.
(f/ka/ MIM Corporation) (the “Parent”) and MIM FUNDING LLC, a limited liability company organized
under the laws of the State of Delaware (together with its successors and assigns, the
“Purchaser”), agree as follows:

PRELIMINARY STATEMENTS

          Reference is hereby made to that certain Receivables Purchase and Transfer Agreement, dated as
of November 1, 2000, among BioScrip PBM Services, Inc. (as successor by merger to MIM Health Plans,
Inc.), as Primary Servicer, and as a Provider, certain other persons party thereto as Providers
(collectively, the “ Providers”), and the Purchaser (as previously amended and as the same may be
further amended, restated, modified or supplemented from time to time in accordance with its terms,
the “RPTA”). Unless otherwise specifically defined herein, all capitalized terms used herein shall
have the respective meanings set forth in the RPTA.

          The New Providers wish to sell and contribute to the Purchaser on a continuing basis all of
their Receivables. The Purchaser is prepared to purchase or to accept the contribution of such
Receivables on the terms and subject to the conditions set forth in the RPTA and herein. The
Purchaser, the Primary Servicer and the Providers agree that upon the effectiveness of this
Subscription Agreement the New Providers shall become parties to the RPTA as Providers pursuant to
Section 5.18(a) of the RPTA.

          Accordingly, for valuable consideration, the receipt and adequacy of which hereby are
acknowledged, the Providers, the New Providers, the Purchaser, and the Primary Servicer agree
hereby as follows:

1. Acceptance by the Providers. Each New Provider hereby is added as a party to the RPTA
and hereby is deemed a “Provider” as such term is defined in the RPTA. Each New Provider, by its
execution and delivery of this Subscription Agreement, agrees to be bound by all of the terms and
provisions of the RPTA and of the other Documents (as defined in the Loan Agreement) to which the
Providers are party.

 

 

2. Grant of Security Interest. (a) As collateral security for the Providers’ obligations
to purchase Denied Receivables under Section 4.01 of the RPTA, the Providers’ indemnification
obligations to the Purchaser under Section 4.02 of the RPTA, and the Providers’ obligations to pay
costs and expenses under Section 5.05 of the RPTA, each New Provider hereby grants to the Purchaser
a first priority lien on and security interest in and right of set-off against, (x) all of the
Accounts now or hereafter owned or held by such New Provider, (y) all proceeds thereof and (z) any
and all cash collateral reserve accounts established pursuant to the RPTA from time to time. Each
New Provider agrees to execute, and hereby authorizes the Purchaser to file, one or more financing
statements or continuation statements or amendments thereto or assignments thereof in respect of
the lien created hereby which may at any time be required or, in the opinion of the Purchaser,
desirable, and to do so without the signature of such New Provider where permitted by law.

          (b) In the event that, contrary to the mutual intent of the Providers and the Purchaser, any
purchase of a Purchased Batch is not characterized as a sale, each New Provider shall, effective as
of the date hereof, be deemed to have granted (and each New Provider hereby does grant) to the
Purchaser a first priority security interest in and to any and all of such New Provider’s Accounts
in a Purchased Batch and the proceeds thereof to secure the payment of all amounts to be paid by
the Providers under the RPTA with accrued interest thereon, and the RPTA as amended by this
Subscription Agreement shall be deemed to be a security agreement.

3. Amendment to RPTA. Schedule I to the RPTA shall be and hereby is amended to include the
New Providers.

4. Representations and Warranties. Each of the Primary Servicer and each New Provider
hereby represents and warrants on its behalf to the Purchaser and the Lender:

	 	(a)	 	 
	 
	 	(1)	 	no Group-Wide Event of Termination is existing
and the proposed Addition shall not cause, or not reasonably be
expected to cause, a Group-Wide Event of Termination;
	 
	 	(2)	 	except as expressly provided herein, the
applicable conditions precedent set forth in Exhibit II to the RPTA
have been fulfilled with respect to such Person;
	 
	 	(3)	 	except as otherwise disclosed in public filings
made by the Parent with the United States Securities and Exchange
Commission, each applicable representation and warranty set forth in
Exhibit III to the RPTA are true and correct in all material respects
with respect to each New Provider;

 

 

	 	(b)	 	each New Provider has delivered, or shall promptly deliver
within 25 days of the date hereof, to the Purchaser and the Lender:

	 	(1)	 	a certificate issued by the Secretary of State
of the state of such New Provider’s (i) organization as to the legal
existence and good standing of such entity and (ii) locale of
operation, if different from its state of organization, as to the
foreign qualification, authorization and good standing of such entity
in such locale (all of which certificates shall be dated not more than
20 days prior to the initial Transfer Date with respect to such New
Provider);
	 
	 	(2)	 	certified copies of the charter and by-laws or
other organizational documents of such entity, certified copies of
resolutions of the Board of Directors or similar governing body of such
entity approving the Subscription Agreement and the RPTA, certified
copies of all documents filed to register any and all assumed/trade
names of such entity, and certified copies of all documents evidencing
other necessary corporate action and governmental approvals, if any,
with respect to the RPTA;
	 
	 	(3)	 	a certificate of the Secretary or Assistant
Secretary of such entity certifying the names and true signatures of
the incumbent officers of such entity authorized to sign this
Subscription Agreement and the other documents to be delivered by it
under this Subscription Agreement and the RPTA;
	 
	 	(4)	 	acknowledgment or time stamped receipt copies
of proper financing statements (showing such New Provider as
debtor/seller, the Purchaser as secured party/purchaser and Healthco-4
as assignee, and stating that the financing statements are being filed
because UCC Section 9-109 provides that Article 9 of the UCC applies
generally to sales of accounts and chattel paper) duly filed on or
before the initial Transfer Date with respect to such entity under the
UCC of all jurisdictions that the Purchaser may deem necessary or
desirable in order to perfect the ownership interests contemplated by
this Subscription Agreement and the RPTA;
	 
	 	(5)	 	acknowledgment or time-stamped receipt copies
of proper financing statements (showing such New Provider as debtor and
the Purchaser as secured party and Healthco-4 as assignee with respect
to the grant by such New Provider of a first priority security interest
to the Purchaser in the Providers’ Accounts and the proceeds thereof,
as contemplated by Section 4.04 of the RPTA) duly filed on or before
the initial Transfer Date with respect to such entity under the UCC of
all jurisdictions that the

 

 

	 	 	 	Purchaser may deem necessary or desirable in order to perfect such
security interest;
	 
	 	(6)	 	completed requests for information (UCC search
results) dated within 20 days of the initial Transfer Date with respect
to such entity, and a schedule thereof listing all effective financing
statements filed in the jurisdictions referred to in subsections (4)
and (5) above that name such New Provider as debtor, together with
copies of all other financing statements filed against such New
Provider (none of which shall cover any Accounts or any proceeds
thereof);
	 
	 	(7)	 	releases of, and acknowledgment copies of
proper termination statements (Form UCC-3), if any, necessary to
evidence the release of all security interests, ownership and other
rights of any Person previously granted by such New Provider in any of
its Accounts or the proceeds thereof;
	 
	 	(8)	 	favorable opinions of (i) counsel for such New
Provider and (ii) counsel for the Purchaser, substantially in the forms
attached as Exhibits XI-B and XI-C to the RPTA, respectively, and as to
such other matters as the HFG Group requests;
	 
	 	(9)	 	a duly executed Depositary Agreement among UMB
Bank, as Lockbox Bank and BioScrip Pharmacy and JPD as Lockbox
Providers;
	 
	 	(10)	 	a copy of each new form of invoice from the New
Provider showing the appropriate Lockbox as the remittance address;
	 
	 	(11)	 	copies of all Notices to Obligors required
pursuant to Article II of the RPTA, together with evidence satisfactory
to the Purchaser that such Notices to Obligors have been or will be
delivered to the addressees thereof;
	 
	 	(12)	 	duly executed amendment to the Guaranty by
Parent with respect to certain obligations of the New Providers under
the RPTA;
	 
	 	(13)	 	duly executed Pledge Agreement with respect to the shares of stock or equity of certain
of the Providers;
	 
	 	(14)	 	such other documents as the Purchaser or Lender may request, including, without
limitation, financial statements;

	 	(c)	 	each New Provider is an Affiliate of the Primary Servicer;

 

 

	 	(d)	 	each New Provider has become a member of the Purchaser;
	 
	 	(e)	 	the execution, delivery and performance by it of this
Subscription Agreement and the other documents to be delivered by it
thereunder, (i) are within its corporate or limited liability company powers,
(ii) have been duly authorized by all necessary corporate or limited liability
company action, (iii) do not contravene (1) its charter or by-laws or
certificate of formation or operating agreement, as applicable, (2) any
material law, rule or regulation applicable to it, (3) any material contractual
restriction binding on or affecting it or its Property, or (4) any order, writ,
judgment, award, injunction or decree binding on or affecting it or its
Property, and (iv) do not result in or require the creation of any Lien upon or
with respect to any of its Properties, other than the interests created by this
Subscription Agreement. This Subscription Agreement has been duly executed and
delivered by it;
	 
	 	(f)	 	no consent of any other person (including, without limitation,
shareholders, members or creditors of the Primary Servicer or any Provider),
and, except for financing statements or termination statements that have been
delivered to the Purchaser for filing in accordance with Exhibit II to the
RPTA, no action of, or filing (except any financing statement or termination
statement to be filed pursuant to the RPTA) with any Governmental Entity is
required to authorize, or is otherwise required in connection with the
execution, delivery and performance of this Subscription Agreement and the
RPTA; and
	 
	 	(g)	 	this Subscription Agreement and the RPTA each constitutes the
legal, valid and binding obligations of the Primary Servicer and each New
Provider enforceable against it in accordance with its terms, except as limited
by bankruptcy, insolvency, moratorium, fraudulent conveyance or other laws
relating to the enforcement of creditors’ rights generally and general
principles of equity (regardless of whether enforcement is sought at equity or
law).

5. Eligibility Criteria. The Primary Servicer and New Providers each hereby acknowledge
and agree that the Receivables of each New Provider shall not be considered “Eligible Receivables”
under the RPTA or the Loan Agreement until such time as:

	 	(a)	 	The Master Servicer shall have delivered a certificate to the
Program Manager stating that all computer linkups and interfaces necessary or
desirable, in the sole discretion of the Master Servicer, to effectuate the
transactions and information transfers under the RPTA with respect to such New
Provider are fully operational to the satisfaction of the Master

 

 

	 	 	 	Servicer (and the Master Servicer shall have received an interface fee for
each additional computer interface);
	 
	 	(b)	 	The Program Manager shall have completed its due diligence with
respect to such New Provider and its Receivables and has established
Eligibility Criteria and Net Value Factors (as defined in the Loan Agreement)
relating to such Receivables in consultation with the Primary Servicer that are
satisfactory to the Program Manager in its sole discretion; and
	 
	 	(c)	 	Each of the deliverables set forth in Section 4(b) hereto have
been delivered to the Purchaser and The Lender with respect to such New
Provider.

6. Waiver. The Purchaser hereby waives the 30-days’ prior written notice required from the
Primary Servicer under Section 5.18(a) of the RPTA with respect to the Addition of the New
Providers.

7. GOVERNING LAW. THIS SUBSCRIPTION AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION
OF THE LAWS OF ANY OTHER JURISDICTION.

8. Execution in Counterparts; Facsimile. This Subscription Agreement may be executed in
counterparts, each of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page by telecopier shall be effective as delivery of a manually executed
counterpart.

[Remainder of Page Intentionally Left Blank]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 	 	 
	NEW PROVIDERS:	 	BIOSCRIP INFUSION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Trade names:	 	 	 	 
	 

	 	 	 	Prior names:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:        320 South Flower Street
	 
	 

	 	 	 	                      Burbank, CA 91502	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	Facsimile Number:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BIOSCRIP PHARMACY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 
	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Trade names:	 	 	 	 
	 

	 	 	 	Prior names:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:         10050 Crosstown Circle Suite 300
	 	 
	 

	 	 	 	                       Eden Prairie, MN 55344	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	Facsimile Number:	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	JPD, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:

Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Trade names:

Prior names:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:        1495 Morse Road
	 	 
	 

	 	 	 	                      Columbus, OH 43229	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	Facsimile Number:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	NATURAL LIVING, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:

Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Trade names:

Prior names:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:        2226 White Plains Rd
	 	 
	 

	 	 	 	                      Bronx, NY 10467	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	Facsimile Number:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PRIMARY SERVICER:	 	BIOSCRIP PBM SERVICES, LLC (as successor to MIM Health
Plans, Inc.)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:

Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:        100 Clearbook Road
	 	 
	 

	 	 	 	                      Elmsford, NY 10523	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	Facsimile No.:	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	PURCHASER:	 	MIM FUNDING LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Name:

Title:	 	 	 	 

	 	 	 	 	 	 	 
	CONSENTED TO:	 	 	 	 
	 
	 	 	 	 	 	 
	BIOSCRIP, INC. (f/k/a MIM Corporation)	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	Name:

	 	 

	 	 	 	 
	Title:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	BIOSCRIP PHARMACY (NY), INC. (f/k/a Vitality Home Infusion Services, Inc.)	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	BIOSCRIP PBM SERVICES, LLC (as successor to MIM Health Plans, Inc.)	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	BIOSCRIP PHARMACY SERVICES, INC. (f/ka/ Scrip Pharmacy, Inc.)	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	BIOSCRIP INFUSION SERVICES, LLC (f/ka/ American Disease Management Associates, LLC)	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	Name:

	 	 

	 	 	 	 
	Title:
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	HFG HEALTHCO-4 LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	HFG Healthco-4, Inc., a member
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:

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