Reference is hereby made to that certain letter agreement, dated as of the date hereof (as amended and in effect from time to time, the “ L/C Agreement ”), between BioScrip, Inc. and Bank of America, N.A. (“ Bank of America ” or “ you ”), pursuant to which Bank of America has agreed to issue, amend and renew Standby Letters of Credit (all such Standby Letters of Credit so issued, amended or renewed thereunder being hereinafter referred to as the “ Credits ”) for the account of BioScrip, Inc. and its subsidiaries (collectively, “ we ” or “ us ”), in an aggregate face amount at any one time not to exceed $5,000,000, and all as more particularly set forth therein.  All of our obligations owing by us to you hereunder or arising under or in respect of the L/C Agreement (including any L/C Application delivered under and as defined in the L/C Agreement) or any Credit, whether now existing or hereafter arising, contingent or otherwise, are hereinafter referred to, collectively, as the “ Obligations ”.  In connection with the Obligations, we hereby agree, and request your agreement, as follows:

The Cash Collateral Account.   In accordance with the requirements of the L/C Agreement, as collateral security for the Obligations, we will from time to time furnish to you cash sums to be deposited into an interest bearing account with you entitled “BioScrip, Inc. Loan Collateral”, Account # 406923 (the “ Cash Collateral Acc