1986 Uses in Financial Statements and Reports Clause

Financial Statements and Reports from Revolving Credit and Security Agreement

THIS REVOLVING CREDIT AND SECURITY AGREEMENT (the Agreement) dated as of July 28, 2009, is entered into between AMERICA SERVICE GROUP INC., a Delaware corporation (ASG), PRISON HEALTH SERVICES, INC., a Delaware corporation (PHS), PRISON HEALTH SERVICES OF INDIANA, L.L.C., an Indiana limited liability company (PHS Indiana), SECURE PHARMACY PLUS, LLC, a Tennessee limited liability company (SPP), and CORRECTIONAL HEALTH SERVICES, LLC, a New Jersey limited liability company (CHS and together with ASG, PHS, PHS Indiana, and SPP, individually and collectively as the Borrower), CAPITALSOURCE BANK, a California industrial bank (CapitalSource), as administrative agent and collateral agent for Lenders (in such capacities, the Agent), and the Lenders party hereto.

Financial Statements and Reports. All financial statements relating to Borrower that have been or may hereafter be delivered to Agent by Borrower are accurate and complete in all material respects and have been prepared in accordance with GAAP consistently applied with prior periods. ASG has no material obligations or liabilities of any kind not disclosed in such financial statements that would be required to be disclosed therein in accordance with GAAP, and since the date of the most recent financial statements submitted to Agent, there has not occurred any Material Adverse Change or Material Adverse Effect or, to Borrowers knowledge, any other event or condition that could reasonably be expected to have a Material Adverse Effect.

Financial Statements and Reports from Amended and Restated

THIS SECOND AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (the Agreement) dated as of February 22, 2008, is entered into between AMERICA SERVICE GROUP INC. (ASG) a Delaware corporation, PRISON HEALTH SERVICES, INC. (PHS), a Delaware corporation, EMSA LIMITED PARTNERSHIP (EMSA LP), a Florida limited partnership, PRISON HEALTH SERVICES OF INDIANA, L.L.C. (PHS Indiana), an Indiana limited liability company, SECURE PHARMACY PLUS, LLC (SPP), a Tennessee limited liability company, and CORRECTIONAL HEALTH SERVICES, LLC, (CHS) a New Jersey limited liability company (ASG, PHS, EMSA LP, PHS Indiana, SPP and CHS) are hereinafter referred to, individually and collectively as the Borrower), CAPITALSOURCE FINANCE LLC, a Delaware limited liability company (CapitalSource), as administrative agent and collateral agent for Lenders (in such capacities, the Agent), and the Lenders party hereto.

Financial Statements and Reports. All financial statements relating to Borrower that have been or may hereafter be delivered to Agent by Borrower are accurate and complete in all material respects and have been prepared in accordance with GAAP consistently applied with prior periods. ASG has no material obligations or liabilities of any kind not disclosed in such financial statements that would be required to be disclosed therein in accordance with GAAP, and since the date of the most recent financial statements submitted to Agent, there has not occurred any Material Adverse Change or Material Adverse Effect or, to Borrowers knowledge, any other event or condition that could reasonably be expected to have a Material Adverse Effect.

Financial Statements and Reports from Security Agreement

THIS JUNIOR SECURITY AGREEMENT (the Agreement) dated as of November 10, 2005, is entered into between U.S. MILLS, INC., a Delaware corporation (Borrower), SUNSET BRANDS, INC. a Nevada corporation (Guarantor, and together with Borrower, jointly and severally, the Obligors), and IBF FUND LIQUIDATING LLC, a Delaware limited liability company, as holder of the Convertible Debentures (as defined below) (the Debenture Holder).

Financial Statements and Reports. All financial statements and financial information relating to each Obligor that have been or may hereafter be delivered to Debenture Holder by such Obligor are accurate and complete and have been prepared in accordance with GAAP consistently applied with prior periods. Neither Obligor has any 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 Debenture Holder, there has not occurred any Material Adverse Change, Material Adverse Effect to such Obligors knowledge, any other event or condition that would reasonably be likely to have a Material Adverse Effect.

Financial Statements and Reports from Revolving Credit Agreement

THIS SECOND AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (the Agreement) dated as of March 21, 2006, is entered into among UNITED STATES PHARMACEUTICAL GROUP, L.L.C. d/b/a NATIONSHEALTH, a Delaware limited liability company (USPG), NATIONSHEALTH HOLDINGS, L.L.C., a Florida limited liability company (NHH), and NATIONSHEALTH, INC., a Delaware corporation (NationsHealth) (jointly and severally, the Borrower) and CAPITALSOURCE FINANCE LLC, a Delaware limited liability company (the Lender).

Financial Statements and Reports. All financial statements and financial information relating to Borrower that have been or may hereafter be delivered to Lender by Borrower are accurate and complete in all material respects and have been prepared in accordance with GAAP consistently applied with prior periods. Borrower has 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, Material Adverse Effect or Liability Event or, to Borrowers knowledge, any other event or condition that would reasonably be expected to have a Material Adverse Effect or cause or constitute a Liability Event.