Document:

EXHIBIT 10.4

                            SFBC INTERNATIONAL, INC.

                              AMENDED AND RESTATED
                             1999 STOCK OPTION PLAN

         1. Purpose and Eligibility. This Stock Option Plan (the "Plan") is
intended to advance the interests of SFBC International, Inc. (the "Company"),
and its Related Corporations, as defined below, by enhancing the ability of the
Company to attract and retain qualified employees, consultants, officers and
directors by creating incentives and rewards for their contributions to the
success of the Company. This Plan will provide to: (a) officers and other
employees of the Company and its Related Corporations opportunities to purchase
stock in the Company pursuant to options granted hereunder which qualify as
incentive stock options ("ISOs") under Section 422(b) of the Internal Revenue
Code of 1986, as amended (the "Code") and (b) directors, officers, employees and
consultants of the Company and Related Corporations opportunities to purchase
stock in the Company pursuant to options granted hereunder which do not qualify
as ISOs ("Non-Qualified Options"). ISOs and Non-Qualified Options are referred
to hereafter as "Options".

         For purposes of the Plan, the term "Related Corporations" shall mean a
corporation which is a subsidiary corporation with respect to the Company within
the meaning of Section 424(f) of the Code.

         This Plan is intended to comply in all respects with Rule 16b-3 and its
successor rules as promulgated under Section 16(b) of the Securities Exchange
Act of 1934 ("Rule 16b-3") for participants who are subject to Section 16 of the
Securities Exchange Act of 1934 (the "Exchange Act"). To the extent any
provision of the Plan or action by the Plan administrators fails to so comply,
it shall be deemed null and void to the extent permitted by law and deemed
advisable by the Plan administrators. Provided, however, such exercise of
discretion by the Plan administrators shall not interfere with the contract
rights of any participant. In the event that any interpretation or construction
of this Plan is required, it shall be interpreted and construed in order to
insure, to the maximum extent permissible by law, that such participant does not
violate the short-swing profit provisions of Section 16(b) of the Exchange Act
and that any exemption available under Rule 16b-3 is available.

         2. Stock. The stock subject to Options shall be authorized but unissued
shares of common stock (the "Common Stock"), or shares of Common Stock
reacquired by the Company in any manner. The aggregate number of shares of
Common Stock which may be issued pursuant to the Plan is 700,000, subject to
adjustment as provided in Section 14. Any such shares may be issued as ISOs or
Non-Qualified Options so long as the number of shares so issued does not exceed
the limitations in this Section. If any Options granted under the Plan shall
expire or terminate for any reason without having been exercised in full or
shall cease for any reason to be exercisable in whole or in part the unexercised
shares subject to such Options shall again be available for grants of Options
under the Plan.

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         3. Administration of the Plan.

                  a. The Plan may be administered by the entire board of
directors of the Company (the "Board") or by a committee composed solely of two
or more Non-Employee Directors as that term is defined by Rule 16b-3(b)(3) of
the Exchange Act, or the Company shall otherwise act in accordance with the
permissible interpretations of Rule 16b-3 (the "Committee"). Once appointed,
such Committee shall continue to serve until otherwise directed by the Board. A
majority of the members of any such Committee shall constitute a quorum, and all
determinations of the Committee shall be made by the majority of its members
present at a meeting. Any determination of the Committee under the Plan may be
made without notice or meeting of the Committee by a writing signed by all of
the Committee members. Subject to ratification of the grant by the Board (but
only if so required by applicable state law), and subject to the terms of the
Plan, the Committee shall have the authority to (i) determine the employees of
the Company and Related Corporations (from among the class of employees eligible
under Section 3 to receive ISOs) to whom ISOs may be granted, and to determine
(from among the class of individuals and entities eligible under Section 3 to
receive Non-Qualified Options) to whom Non-Qualified Options may be granted;
(ii) determine the time or times at which Options may be granted; (iii)
determine the exercise price of shares subject to each Option which price for
any ISO shall not be less than the minimum price specified in Section 7; (iv)
determine whether each Option granted shall be an ISO or a Non-Qualified Option;
(v) determine (subject to Section 8) the time or times when each Option, except
for non-discretionary Options, shall become exercisable, the duration of the
exercise period and when each Option shall vest; (vi) determine whether
restrictions such as repurchase options are to be imposed on shares subject to
Options and the nature of such restrictions, if any, and (vii) interpret the
Plan and promulgate and rescind rules and regulations relating to it. Such
determination, whether made by the Committee or the Board shall be made in
advance of a grant and may be ratified after the fact only by the Company's
stockholders at or before the next annual meeting of stockholders held
subsequent to the grant. The interpretation and construction by the Committee of
any provisions of the Plan or of any Options granted under it shall be final,
binding and conclusive unless otherwise determined by the Board. The Committee
may from time to time adopt such rules and regulations for carrying out the Plan
as it may deem appropriate.

         No members of the Committee or the Board shall be liable for any action
or determination made in good faith with respect to the Plan or any Options
granted under it. No member of the Committee or the Board shall be liable for
any act or omission of any other member of the Committee or the Board or for any
act or omission on his own part, including but not limited to the exercise of
any power and discretion given to him under the Plan, except those resulting
from his own gross negligence or willful misconduct.

                  (b) The Committee may select one of its members as its
chairman and shall hold meetings at such time and places as it may determine.
All references in this Plan to the Committee shall mean the Board if no
Committee has been appointed. From time to time the Board may increase the size
of the Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies
however caused or remove all members of the Committee and thereafter directly
administer the Plan.

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                  (c) Options may be granted to members of the Board, whether
such grants are in their capacity as directors, employees or consultants.
Members of the Board who are either (i) eligible for Options pursuant to the
Plan or (ii) have been granted Options may vote on any matters affecting the
administration of the Plan or the grant of any Options pursuant to the Plan.

                  (d) Notwithstanding any other provision of Section 2, any
discretionary grants to a person who is a member of the Board shall be made only
by the Committee. The requirements imposed by this Section 2(d) shall also apply
with respect to grants to officers who are also directors.

                  (e) In addition to such other rights of indemnification as he
may have as a member of the Board, and with respect to administration of the
Plan and the granting of Options under it, each member of the Board and of the
Committee (the "Indemnitee") shall be entitled without further act on the
Indemnitees part to indemnification from the Company for all expenses (including
advances of litigation expenses, the amount of judgment and the amount of
approved settlements made with a view to the curtailment of costs of litigation)
reasonably incurred by the Indemnitee in connection with or arising out of any
action, suit or proceeding, including any appeal thereof, with respect to the
administration of the Plan or the granting of Options under it in which the
Indemnitee may be involved by reason of the Indemnitee being or having been a
member of the Board or the Committee, whether or not the Indemnitee continues to
be such member of the Board or the Committee at the time of the incurring of
such expenses; provided, however, that such indemnity shall not include any
expenses incurred by the Indemnitee (i) in respect of matters as to which the
Indemnitee shall be finally adjudged in such action, suit or proceeding to have
been guilty of or liable for gross negligence or willful misconduct in the
performance of his duties as a member of the Board or the Committee; (ii) in
respect of any matter in which any settlement is effected to an amount in excess
of the amount approved by the Company on the advice of its legal counsel or
(iii) arising from any action in which the Indemnitee asserts a claim against
the Company whether such claim is termed a complaint, counterclaim, crossclaim,
third party complaint or otherwise and, provided further, that no right of
indemnification under the provisions set forth herein shall be available to any
such member of the Board or the Committee unless within 10 days after
institution of any such action, suit or proceeding the Indemnitee shall have
offered the Company in writing the opportunity to handle and defend such action,
suit or proceeding at its own expense. The foregoing right of indemnification
shall inure to the benefit of the heirs, executors or administrators of each
such Indemnitee and shall be in addition to all other rights to which such
Indemnitee would be entitled to as a matter of law, contract or otherwise.
Provided, however, the exception in Section 3 (e) (iii) shall not apply to an
action for indemnification under circumstances where the Company has failed to
provide indemnification to the Indemnitee which indemnification is required by
this Plan.

                  (f) Notwithstanding the indemnification provided for by this
Section 3, the Company's bylaws, or any written agreement, such indemnity shall
not include any expenses, liabilities or losses incurred by such Indemnitees
relating to or arising from any Proceeding in which the Company asserts a direct
claim (as opposed to a stockholders' derivative action) against the Indemnitees,
whether such claim by the Company is termed a complaint, counterclaim,
crossclaim, third-party complaint or otherwise.

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         4. Eligible Employees and Others.

                  (a) ISOs may be granted to any employee of the Company or any
         Related Corporation. Those officers and directors of the Company who
         are not employees may not be granted ISOs under the Plan unless they
         are employees of the Company or any Related Corporation. Subject to
         compliance with Rule 16b-3 and other applicable securities laws,
         Non-Qualified Options may be granted to any director (whether or not an
         employee), officer, employee or consultant of the Company or any
         Related Corporation. The Committee may take into consideration a
         recipient's individual circumstances in determining whether to grant an
         ISO or a Non-Qualified Option. Granting of any Option to any individual
         or entity shall neither entitle that individual or entity to, nor
         disqualify him from participation in any other grant.

                  (b) All directors of the Company who are not employees of the
         Company or Related Corporations shall automatically receive grants of
         10,000 Non-Qualified Options (i) at the time this Plan is adopted by
         the Board; (ii) upon election or appointment to the Board if not a
         member of the Board at the time this Plan is adopted by the Board; and
         (iii) after all Options previously granted have vested.

                           (1) The exercise price of all Options shall be fair
                  market value on the date of grant as defined by Section 7.

                           (2) The Options shall vest in six equal increments of
                  1,666 Options per director on June 30 and December 31 of the
                  first and second year and 1,667 in the third year following
                  such grant, provided that the director is still serving as a
                  director of the Company. To the extent that any Options which
                  have not been exercised do not vest, the Options shall lapse.

                  (c) All Options shall be exercisable for a period of 10 years
         from the date of grant, except where a shorter period is required by
         the Code for certain ISOs or where the board or committee selects a
         shorter period at the time of any discretionary grant.

         5. Granting of Options.

                  (a) Options may be granted under the Plan at any time on and
         after June 3, 1999, provided, however, that no ISO shall be granted
         more than 10 years after the effective date of this Plan. The date of
         grant of Options under the Plan will be the date specified by the
         Committee at the time it grants the Options; provided, however, that
         such date shall not be prior to the date on which the Committee acts to
         approve the grant. The Committee shall have the right, with the consent
         of the optionee, to convert ISOs granted under the Plan to
         Non-Qualified Options pursuant to Section 15.

                  (b) The Board or Committee shall grant Options to participants
         that it, in its sole discretion, selects. Options shall be granted on
         such terms as the Board or Committee shall determine except that ISOs
         shall be granted on terms that comply with the Code and regulations
         thereunder.

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                  (c) Notwithstanding any provision of this Plan, the Board or
         the Committee may impose conditions and restrictions on any grant of
         Options including forfeiture of vested Options, cancellation of Common
         Stock acquired upon exercise of Options and forfeiture of profits from
         the sale of Common Stock.

         6. Sale of Shares Acquired Upon Exercise of Options. Any shares of the
Company's Common Stock acquired pursuant to Options granted hereunder as set
forth herein, cannot be sold by any officer, director or other person, subject
to Section 16 of the Exchange Act, until at least six months elapse from the
date of grant of the Options or unless the grant is otherwise exempt under Rule
16b-3 and the Board permits the sale. Nothing in this Section 6 shall be deemed
to reduce the holding period set forth under the applicable securities laws.

         7. ISO Minimum Option Price and Other Limitations.

                  (a) The exercise price per share of all Options granted under
         the Plan shall not be less than the fair market value per share of
         Common Stock on the date of such grant. For purposes of determining the
         exercise price grants of ISOs, the date of the grant shall be the later
         of (i) the date of approval by the Committee or the Board or (ii) the
         date the recipient becomes an employee of the Company. In the case of
         ISOs to be granted to an employee owning stock which represents more
         than 10 percent of the total combined voting power of all classes of
         stock of the Company or any Related Corporation, the price per share
         shall not be less than 110 percent of the fair market value per share
         of Common Stock on the date of grant and such ISOs shall not be
         exercisable after the expiration of five years from the date of grant.

                  (b) In no event shall the aggregate fair market value
         (determined at the time any ISOs are granted) of Common Stock for which
         ISOs granted to any employee are exercisable for the first time by such
         employee during any calendar year (under all stock option plans of the
         Company and any Related Corporation) exceed $100,000.

                  (c) If, at the time Options are granted under the Plan, the
         Company's Common Stock is publicly traded, "fair market value" shall be
         determined as of the last trading day prior to the date such Options
         are granted and shall mean:

                           (1) the closing price of the Company's Common Stock
                  appearing on a national securities exchange if the principal
                  market for the common stock is such an exchange, or, if not
                  listed or not the principal market, the closing price on the
                  Nasdaq Stock Market ("Nasdaq").

                           (2) if the Company's shares are not listed on Nasdaq,
                  then the closing price for its Common Stock as listed on the
                  National Association of Securities Dealers, Inc.'s electronic
                  bulletin board; or

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                           (3) if the Company's Common Stock is not listed on
                  the electronic bulletin board, then the average bid and asked
                  price for the Company's shares as listed in the National
                  Quotation Bureau's "pink sheets"; or

                           (4) if there are no listed bid and asked prices
                  published in the pink sheets, then the fair market value shall
                  be based upon the average closing bid and asked price as
                  determined following a polling of all dealers making a market
                  in the Company's Common Stock.

         8. Duration of Options. Subject to earlier termination as provided in
Sections 5, 9 and 10, all Options shall expire on the date specified in the
original grant of such Options (except with respect to any ISOs that are
converted into Non-Qualified Options pursuant to Section 17) provided, however,
that such grant must comply with Section 422 of the Code with regard to ISOs and
Rule 16b-3 with regard to all Options granted pursuant to this Plan to officers,
directors and 10% stockholders of the Company. For the purpose of this Plan, the
term "officer" shall have the same meaning as defined in Rule 16a-1(f)
promulgated under the Exchange Act.

         9. Exercise of Options. Subject to the provisions of Sections 4(b) and
9 through 13, all Options granted under the Plan shall be exercisable as
follows:

                  (a) The Options shall either be fully vested and exercisable
         from the date of grant or shall become vested and exercisable in such
         installments as the Committee may specify.

                  (b) Once an installment becomes exercisable, it shall remain
         exercisable until expiration or termination of the Options, unless
         otherwise specified by the Committee.

                  (c) All Options, once exercisable and vested, may be exercised
         at any time or from time to time, in whole or in part, for up to the
         total number of shares with respect to which they are then exercisable.

                  (d) The Committee shall have the right to accelerate the
         vesting date to allow exercise of any installment of any Options;
         provided that the Committee shall not accelerate the vesting and
         exercisability date of any installment of any Options granted to any
         employee as an ISO (and not previously converted into Non-Qualified
         Options pursuant to Section 17) if such acceleration would violate the
         annual vesting limitation contained in Section 422 of the Code as
         described in Section 6(b).

                  (e) The vesting date of all Options shall accelerate in the
         event of any of the following: (i) the Company is to merge or
         consolidate with or into any other corporation or entity except a
         transaction where the Company is the surviving corporation or a change
         of domicile merger or similar transaction exempt from registration
         under the Securities Act of 1933, (ii) the sale of all or substantially
         all of the Company's assets, (iii) the sale of at least 90% of the
         outstanding Common Stock of the Company to a third party (subsections
         (i), (ii) and (iii) collectively referred to as an "Acquisition"); or
         (iv) the Company is dissolved. Upon a minimum of 20 days prior written
         notice to the optionees, the exercisability of such Options shall
         commence two business days prior

<PAGE>

         to the earlier of (A) the scheduled closing of an Acquisition or
         proposed dissolution or (B) the actual closing of an Acquisition or
         proposed dissolution.

         10. Termination of Employment. Subject to any greater restrictions or
limitations as may be imposed by the Committee upon the granting of any ISOs, if
an ISO optionee ceases to be employed by the Company and all Related
Corporations other than by reason of death or disability as defined in Section
11, no further installments of such ISOs shall become exercisable, and such ISOs
shall terminate on the day three months after the day of the termination of
employment, but in no event later than on their specified expiration dates,
except to the extent that such ISOs (or unexercised installments thereof) have
been converted into Non-Qualified Options pursuant to Section 17. Employment
shall be considered as continuing uninterrupted during any bona fide leave of
absence (such as those attributable to illness, military obligations or
governmental service) provided that the period of such leave does not exceed
three months or, if longer, any period during which such optionee's right to
re-employment is guaranteed by statute. A leave of absence with the written
approval of the Company's Board shall not be considered an interruption of
employment under the Plan, provided that such written approval contractually
obligates the Company or any Related Corporation to continue the employment of
the optionee after the approved period of absence. ISOs granted under the Plan
shall not be affected by any change of employment within or among the Company
and Related Corporations so long as the optionee continues to be an employee of
the Company or any Related Corporation.

         11. Death; Disability. Subject to any greater restrictions or
limitations as may be imposed by the Committee upon the granting of any ISOs:

                  (a) If an ISO optionee ceases to be employed by the Company
         and all Related Corporations by reason of death, such person's ISOs may
         be exercised to the extent of the number of shares with respect to
         which he could have exercised it on the date of his death, by his
         estate, personal representative or beneficiary who has acquired the ISO
         by will or by the laws of descent and distribution, at any time prior
         to the earlier of the ISO's specified expiration date or three months
         from the date of the optionee's death.

                  (b) If an ISO optionee ceases to be employed by the Company
         and all Related Corporations by reason of his disability, he shall have
         the right to exercise any ISOs held by him on the date of termination
         of employment until the earlier of (i) the ISOs' specified expiration
         date or (ii) one year from the date of the termination of the
         optionee's employment. For the purposes of the Plan, the term
         "disability" shall mean "permanent and total disability" as defined in
         Section 22(e)(3) of the Code, as amended, or successor statute.

         12. Assignment, Transfer or Sale.

                  (a) No ISOs and no Options granted to an employee who is an
         officer, director or beneficial owner of 10% or more of the Company's
         Common Stock ("10% Owner") shall be assignable or transferable by the
         grantee except as provided below or by will or by the laws of descent
         and distribution, and during the lifetime of the grantee, each Option
         shall be

<PAGE>

         exercisable only by him, his guardian or legal representative. The
         shares underlying the ISOs cannot be assigned, transferred or sold
         until at least two years from the date of the granting of the ISOs and
         one year after the transfer of such shares to the optionee.

                  (b) No ISOs shall be assignable or transferable by the
         grantee.

                  (c) Provided however, any officer, director or 10% Owner may
         transfer Non-Qualified Options to members of his or her immediate
         family (i.e. children, grandchildren or spouse), to trusts for the
         immediate benefit of such family members and to partnerships in which
         such family members are the only partners, upon approval of the
         Committee so long as no consideration is received for the transfer.

                  (d) Notwithstanding the terms of this Section 12, subject to
         approval by the Committee, any executive officer, director or 10% Owner
         may transfer Non-Qualified Options, granted under circumstances where
         the exemption provided by Rule 16b-3 promulgated under the Exchange Act
         is not applicable, to a spouse or former spouse if such transfer is
         made in connection with a divorce proceeding and the specific terms of
         the transfer are incorporated into a final divorce decree. The shares
         of Common Stock underlying such Options may not be sold prior to the
         entry of the divorce decree.

         13. Terms and Conditions of Options. Options shall be evidenced by
instruments (which need not be identical) in such forms as the Committee may
from time to time approve. Such instruments shall conform to the terms and
conditions set forth in Sections 7 through 12 hereof and may contain such other
provisions as the Committee deems advisable which are not inconsistent with the
Plan, including restrictions applicable to shares of Common Stock issuable upon
exercise of Options and forfeiture provisions. In granting any Non-Qualified
Options, the Committee may specify that such Non-Qualified Options shall be
subject to the restrictions set forth herein with respect to ISOs, or to such
other termination and cancellation provisions as the Committee may determine.
The Committee may from time to time confer authority and responsibility on one
or more of its own members and/or one or more officers of the Company to execute
and deliver such instruments. The proper officers of the Company are authorized
and directed to take any and all action necessary or advisable from time to time
to carry out the terms of such instruments.

         14. Adjustments. Upon the occurrence of any of the following events, an
optionee's rights with respect to Options granted to him hereunder shall be
adjusted as hereinafter provided unless otherwise specifically provided in the
written agreement between the optionee and the Company relating to such Options:

                  (a) If the shares of Common Stock shall be subdivided or
         combined into a greater or smaller number of shares or if the Company
         shall issue any shares of its Common Stock as a stock dividend on its
         outstanding Common Stock, the number of shares of Common Stock
         deliverable upon the exercise of Options shall be appropriately
         increased or decreased proportionately, and appropriate adjustments
         shall be made in the purchase price per share to reflect such
         subdivision, combination or stock dividend.

<PAGE>

                  (b) If the Company is to be consolidated with or acquired by
         another entity pursuant to an Acquisition, the Committee or the board
         of directors of any entity assuming the obligations of the Company
         hereunder (the "Successor Board") shall, as to outstanding Options not
         exercised pursuant to Section 10, either (i) make appropriate provision
         for the continuation of such Options by substituting on an equitable
         basis for the shares then subject to such Options the consideration
         payable with respect to the outstanding shares of Common Stock in
         connection with the Acquisition; or (ii) terminate all Options in
         exchange for a cash payment equal to the excess of the fair market
         value of the shares subject to such Options over the exercise price
         thereof.

                  (c) In the event of a recapitalization or reorganization of
         the Company (other than a transaction described in Section 14(b) above)
         pursuant to which securities of the Company or of another corporation
         are issued with respect to the outstanding shares of Common Stock, an
         optionee upon exercising Options shall be entitled to receive for the
         purchase price paid upon such exercise the securities he would have
         received if he had exercised his Options prior to such recapitalization
         or reorganization.

                  (d) Notwithstanding the foregoing, any adjustments made
         pursuant to Section 14(a), (b) or (c) with respect to ISOs shall be
         made only after the Committee, after consulting with counsel for the
         Company, determines whether such adjustments would constitute a
         "modification" of such ISOs (as that term is defined in Section 424(h)
         of the Code) or would cause any adverse tax consequences for the
         holders of such ISOs. If the Committee determines that such adjustments
         made with respect to ISOs would constitute a modification of such ISOs
         it may refrain from making such adjustments.

                  (e) Except as expressly provided herein, no issuance by the
         Company of shares of Common Stock of any class or securities
         convertible into shares of Common Stock of any class shall affect, and
         no adjustment by reason thereof shall be made with respect to, the
         number or price of shares subject to Options. No adjustments shall be
         made for dividends or other distributions paid in cash or in property
         other than securities of the Company.

                  (f) No fractional shares shall be issued under the Plan and
         the optionees shall receive from the Company cash in lieu of such
         fractional shares.

                  (g) Upon the happening of any of the foregoing events
         described in Section 14(a), (b) or (c) above, the class and aggregate
         number of shares set forth in Section 14 hereof that are subject to
         Options which previously have been or subsequently may be granted under
         the Plan shall also be appropriately adjusted to reflect the events
         described therein. The Committee or the Successor Board shall determine
         the specific adjustments to be made under this Section 14 and, subject
         to Section 3, its determination shall be conclusive. If any person or
         entity owning restricted Common Stock obtained by exercise of Options
         made hereunder receives securities or cash in connection with a
         corporate transaction described in Section 14(a), (b) or (c) above as a
         result of owning such restricted Common Stock, such securities or cash
         shall be subject to all of the conditions and restrictions applicable
         to the restricted Common Stock with respect to which such securities or
         cash were issued, unless otherwise determined by the Committee or the
         Successor Board.

<PAGE>

         15. Means of Exercising Options.

                  (a) An Option (or any part or installment thereof) shall be
         exercised by giving written notice to the Company at its principal
         office address. Such notice shall identify the Option being exercised
         and specify the number of shares as to which such Option is being
         exercised, accompanied by full payment of the purchase or exercise
         price therefor either (i) in United States dollars in cash or by check;
         (ii) at the discretion of the Committee, through delivery of shares of
         Common Stock having a fair market value equal as of the date of the
         exercise to the cash exercise price of the Option; (iii) at the
         discretion of the Committee, by delivery of the grantee's personal
         recourse note bearing interest payable not less than annually at no
         less than 100% of the lowest applicable federal rate, as defined in
         Section 1274(d) of the Code; (iv) at the discretion of the Committee,
         by delivery of a letter from the grantee to his broker and the Company
         directing his broker to send all proceeds of the sale of his securities
         to the Company so the Company can deduct the exercise price and
         withholding taxes prior to disbursement of the remaining proceeds to
         grantee; or (v) at the discretion of the Committee, by any combination
         of (i), (ii), (iii) and (iv) above. If the Committee exercises its
         discretion to permit payment of the exercise price of an ISO by means
         of the methods set forth in clauses (ii), (iii), (iv) or (v) of the
         preceding sentence, such discretion shall be exercised in writing
         anytime prior to exercise of the ISO in question. The holder of an
         Option shall not have the rights of a stockholder with respect to the
         shares covered by his Option until the date of issuance of a stock
         certificate to him for such shares. Except as expressly provided above
         in Section 14 with respect to changes in capitalization and stock
         dividends, no adjustment shall be made for dividends or similar rights
         for which the record date is before the date such stock certificate is
         issued.

                  (b) Each notice of exercise shall, unless the Common Stock
         underlying the Options (the "Option Shares") are covered by a then
         current registration statement under the Securities Act of 1933, as
         amended (the "Act"), contain the optionee's acknowledgment in form and
         substance satisfactory to the Company that (i) such Option Shares are
         being purchased for investment and not for distribution or resale
         (other than a distribution or resale which, in the opinion of counsel
         to the Company, may be made without violating the registration
         provisions of the Act), (ii) the optionee has been advised and
         understands that (1) the Option Shares have not been registered under
         the Act and are "restricted securities" within the meaning of Rule 144
         under the Act and are subject to restrictions on transfer, and (2) the
         Company is under no obligation to register the Option Shares under the
         Act or to take any action which would make available to the optionee
         any exemption from such registration, and (iii) such Option Shares may
         not be transferred without compliance with all applicable federal and
         state securities laws. Notwithstanding the above, should the Company be
         advised by counsel that issuance of Option Shares should be delayed
         pending registration under federal or state securities laws or the
         receipt of an opinion that an appropriate exemption therefrom is
         available, the Company may defer exercise of any Options granted
         hereunder until either such event has occurred.

         16. Term and Amendment of Plan. This Plan was adopted by the Board and
the sole stockholder on June 3, 1999. This Plan shall have no expiration date,
provided however that no

<PAGE>

ISOs shall be granted more than 10 years after the Plan's effective date. The
Board may terminate or amend the Plan in any respect at any time. If stockholder
approval is required by any national securities exchange or Nasdaq, such
approval must be obtained in accordance with the appropriate rules requiring
approval which may include: (a) increase of the total number of shares that may
be issued under the Plan (except by adjustment pursuant to Section 14); and (b)
modification of the provisions of Section 3 regarding eligibility for grants of
ISOs. Except as provided herein or as specified in the original instrument
granting such Options, no action of the Board or stockholders may alter or
impair the rights of a grantee, without his consent, under any Options
previously granted to him.

         17. Conversion of ISOs into Non-Qualified Options; Termination of ISOs.
The Committee, at the written request of any optionee, may in its discretion
take such actions as may be necessary to convert such optionee's ISOs (or any
installments or portions of installments thereof) that have not been exercised
on the date of conversion into Non-Qualified Options at any time prior to the
expiration of such ISOs, regardless of whether the optionee is an employee of
the Company or a Related Corporation at the time of such conversion. Such
actions may include, but not be limited to, extending the exercise period or
reducing the exercise price of the appropriate installments of such Options. At
the time of such conversion, the Committee (with the consent of the optionee)
may impose such conditions on the exercise of the resulting Non-Qualified
Options as the Committee in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall
be deemed to give any optionee the right to have such optionee's ISOs converted
into Non-Qualified Options, and no such conversion shall occur until and unless
the Committee takes appropriate action. The Committee, with the consent of the
optionee, may also terminate any portion of any ISOs that have not been
exercised at the time of such termination.

         18. Application of Funds. The proceeds received by the Company from the
exercise of Options granted under the Plan shall be used for general corporate
purposes.

         19. Governmental Regulations. The Company's obligation to sell and
deliver shares of Common Stock under this Plan is subject to the approval of any
governmental authority required in connection with the authorization, issuance
or sale of such shares.

         20. Withholding of Additional Income Taxes. Upon the exercise of
Non-Qualified Options or the making of a Disqualifying Disposition (as defined
in Section 21) the Company, in accordance with Section 3402(a) of the Code may
require the optionee to pay additional withholding taxes in respect of the
amount that is considered compensation includable in such person's gross income.
The Committee in its discretion may condition the exercise of Options on the
payment of such withholding taxes.

         To the extent that the Company is required to withhold taxes for
federal income tax purposes in connection with the exercise of any Options, the
Company shall have the discretion to determine if any optionee may elect to
satisfy such withholding requirement by (i) paying the amount of the required
withholding tax to the Company; (ii) delivering to the Company shares of its
Common Stock previously owned by the optionee; or (iii) having the Company
retain a portion of the Option Shares. If permitted by the Company, the number
of shares to be delivered to or

<PAGE>

withheld by the Company times the fair market value of such shares shall equal
the cash required to be withheld. To the extent that the participant is
authorized to either deliver or have withheld shares of the Company's Common
Stock, the Board, or the Committee, may require him to make such election only
during a certain period of time as may be necessary to comply with appropriate
exemptive procedures regarding the "short-swing" profit provisions of Section
16(b) of the Exchange Act or to meet certain Code requirements.

         21. Notice to Company of Disqualifying Disposition. Each employee who
receives ISOs must agree to notify the Company in writing immediately after the
employee makes a Disqualifying Disposition of any Common Stock acquired pursuant
to the exercise of such ISOs. A Disqualifying Disposition is any disposition
(including any sale) of such Common Stock before the later of (i) two years
after the date of employee was granted the ISOs, or (ii) one year after the date
the employee acquired Common Stock by exercising the ISO. If the employee has
died before such Common Stock is sold, these holding period requirements do not
apply and no Disqualifying Disposition can occur thereafter.

         22. Continued Employment. The grant of Options pursuant to the Plan
shall not be construed to imply or to constitute evidence of any agreement,
express or implied, on the part of the Company or any Related Corporation to
retain the optionee as an employee of the Company or a Related Corporation, as a
member of the Company's Board or in any other capacity, whichever the case may
be.

         23. Bonuses or Loans to Exercise Options. If requested by any person to
whom a grant of Options has been made, the Company or any Related Corporation
may, upon full Board approval, loan such person, guarantee a bank loan, or pay
such person additional compensation of the amount of money necessary to pay the
federal income taxes incurred as a result of the exercise of any Non-Qualified
Options, assuming that such person is in the maximum federal income tax bracket
and assuming that such person has no deductions which would reduce the amount of
such tax owed. The tax loan shall be made or tax offset bonus paid on or after
April 15th of the year following the year in which the tax is incurred and any
loan shall be made on such terms as the Company or lending bank determines.

         24. Governing Law; Construction. The validity and construction of the
Plan and the instruments evidencing Options shall be governed by the laws of the
State of Delaware. In construing this Plan, the singular shall include the
plural and the masculine gender shall include the feminine and neuter, unless
the context otherwise requires.

         25. Forfeiture of Options. Notwithstanding any other provision of this
Plan, all vested Options shall be immediately forfeited in the event of:

                  (1)      Termination of the relationship with the grantee for
                           cause including, but not limited to, fraud, theft,
                           dishonesty and violation of Company policy;

<PAGE>

                  (2)      Purchasing or selling securities of the Company
                           without written authorization in accordance with the
                           Company's inside information guidelines then in
                           effect;

                  (3)      Breaching any duty of confidentiality including that
                           required by the Company's inside information
                           guidelines then in effect;

                  (4)      Competing with the Company;

                  (5)      Failure to execute the Company's standard option
                           agreement or any lock-up agreement in conjunction
                           with a grant under the Plan, provided that such
                           lock-up agreement is also required to be executed by
                           the Company's officers and directors; or

                  (6)      A finding by the Company's board of directors that
                           grantee has acted against the interests of the
                           Company.EXHIBIT 10.5

                                  $1,500,000.00

                           LOAN AND SECURITY AGREEMENT

                                 by and between

                            SFBC INTERNATIONAL, INC.
    SOUTH FLORIDA KINETICS, INC. (d/b/a SOUTH FLORIDA BIOAVAILABILITY CLINIC)

                         (collectively, the "Borrower")

                                       and

                         HELLER HEALTHCARE FINANCE, INC.

                                   ("Lender")

                                January 31, 2000

<PAGE>

                           LOAN AND SECURITY AGREEMENT

         THIS LOAN AND SECURITY AGREEMENT (the "Agreement") is made as of
January 31, 2000, by and among SFBC INTERNATIONAL, INC., a Delaware corporation,
and SOUTH FLORIDA KINETICS, INC. (d/b/a SOUTH FLORIDA BIOAVAILABILITY CLINIC), a
Florida corporation (collectively, "Borrower"), and HELLER HEALTHCARE FINANCE,
INC., a Delaware corporation ("Lender").

                                    RECITALS

         A. Borrower desires to establish certain financing arrangements with
and borrow funds from Lender, and Lender is willing to establish such
arrangements for and make loans and extensions of credit to Borrower, on the
terms and conditions set forth below.

         B. The parties desire to define the terms and conditions of their
relationship and to reduce their agreements to writing.

         NOW, THEREFORE, in consideration of the promises and covenants
contained in this Agreement, and for other consideration, the receipt and
sufficiency of which are acknowledged, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         As used in this Agreement, unless otherwise specified, all references
to "Sections" shall be deemed to refer to Sections of this Agreement, and the
following terms shall have the meanings set forth below:

         Section 1.1. Account. "Account" means any right to payment for goods
sold or leased or services rendered, whether or not evidenced by an Instrument
or Chattel Paper, and whether or not earned by performance, including, without
limitation, the right to payment of management fees.

         Section 1.2. Account Debtor. "Account Debtor" means any Person
obligated on any Account of Borrower.

         Section 1.3. Affiliate. "Affiliate" means, with respect to a specified
Person, any Person directly or indirectly controlling, controlled by, or under
common control with the specified Person, including without limitation their
stockholders and any Affiliates thereof. A Person shall be deemed to control a
corporation or other entity if the Person possesses, directly or indirectly, the
power to direct or cause the direction of the management and business of the
corporation or other entity, whether through the ownership of voting securities,
by contract, or otherwise.

<PAGE>

         Section 1.4. Agreement. "Agreement" means this Loan and Security
Agreement, as it may be amended or supplemented from time to time.

         Section 1.5. Base Rate. "Base Rate" means a rate of interest equal to
one and three quarters percent (1.75%) above the "Prime Rate of Interest"
(provided, however, that in no event shall the Base Rate fall below ten percent
(10.0%) so long as this Agreement remains in effect).

         Section 1.6. Borrowed Money. "Borrowed Money" means any obligation to
repay money, any indebtedness evidenced by notes, bonds, debentures or similar
obligations, any obligation under a conditional sale or other title retention
agreement and the net aggregate rentals under any lease which under GAAP would
be capitalized on the books of Borrower or which is the substantial equivalent
of the financing of the property so leased.

         Section 1.7. Borrower. "Borrower" has the meaning set forth in the
Preamble.

         Section 1.8. Borrowing Base. "Borrowing Base" has the meaning set forth
in Section 2.1(d).

         Section 1.8a. Borrowing Base Certificate. "Borrowing Base Certificate"
means a certificate in the form of Exhibit D as approved by Lender in its sole
discretion.

         Section 1.9. Business Day. "Business Day" means any day on which
financial institutions are open for business in the State of Maryland, excluding
Saturdays and Sundays.

         Section 1.10. Chattel Paper. "Chattel Paper" has the meaning set forth
in the Uniform Commercial Code.

         Section 1.11. Closing; Closing Date. "Closing" and "Closing Date" have
the meanings set forth in Section 5.3.

         Section 1.12. Collateral. "Collateral" has the meaning set forth in
Section 3.1.

         Section 1.13. Commitment Fee. "Commitment Fee" has the meaning set
forth in Section 2.4(a).

         Section 1.14. Concentration Account. "Concentration Account" has the
meaning set forth in Section 2.3.

         Section 1.15. Controlled Group. "Controlled Group" means all businesses
that would be treated as a single employer under Section 4001(b) of ERISA.

         Section 1.16. Default Rate. "Default Rate" means a rate per annum equal
to five percent (5%) above the then applicable Base Rate.

<PAGE>

         Section 1.16a. EBITDA. "EBITDA" shall mean Borrower's earnings before
interest, taxes, depreciation and amortization, as determined in accordance with
GAAP.

         Section 1.17. ERISA. "ERISA" has the meaning set forth in Section 4.12.

         Section 1.18. Event of Default. "Event of Default" and "Events of
Default" have the meanings set forth in Section 8.1.

         Section 1.18a. Force Majure. "Force Majure" means any act of God, fire,
flood or governmental regulation, direction or request, or accident, labor
dispute, unavoidable breakdown, civil unrest or disruption to the extent that
any such circumstances both materially adversely affect the business of the
Borrower and are beyond the control of the Borrower

         Section 1.19. GAAP. "GAAP" means generally accepted accounting
principles applied in a consistent manner.

         Section 1.20. General Intangibles. "General Intangibles" has the
meaning set forth in the Uniform Commercial Code.

         Section 1.21. Governmental Authority. "Governmental Authority" means
and includes any federal, state, District of Columbia, county, municipal, or
other government and any department, commission, board, bureau, agency or
instrumentality thereof, whether domestic or foreign.

         Section 1.22. Hazardous Material. "Hazardous Material" means any
substances defined or designated as hazardous or toxic waste, hazardous or toxic
material, hazardous or toxic substance, or similar term, by any environmental
statute, rule or regulation or any Governmental Authority applicable to Borrower
or its business, operations or assets.

         Section 1.23. Highest Lawful Rate. "Highest Lawful Rate" means the
maximum lawful rate of interest referred to in Section 2.7 that may accrue
pursuant to this Agreement.

         Section 1.24. Instrument(s). "Instrument(s)" has the meaning set forth
in the Uniform Commercial Code.

         Section 1.25. Lender. "Lender" means Heller Healthcare Finance, Inc., a
Delaware corporation.

         Section 1.26. Loan. "Loan" has the meaning set forth in Section 2.1(a).

         Section 1.27. Loan Documents. "Loan Documents" means and includes this
Agreement, the Note, the Certificate of Validity, and each and every other
document now or hereafter delivered in connection with this Agreement, as any of
them may be amended, modified, or supplemented from time to time.

<PAGE>

         Section 1.28. Loan Management Fee. "Loan Management Fee" has the
meaning set forth in Section 2.4(c).

         Section 1.29. Lockbox. "Lockbox" has the meaning set forth in Section
2.3.

         Section 1.30. Lockbox Account. "Lockbox Account" means an account
maintained by Lender (and under Lender's sole dominion and control) at the
Lockbox Bank into which all collections of Accounts are paid directly.

         Section 1.31. Lockbox Bank. "Lockbox Bank" has the meaning set forth in
Section 2.3.

         Section 1.31a. Material Adverse Effect. "Material Adverse Effect" shall
mean any event or condition which, alone or when taken with other events or
conditions occurring or existing concurrently with such event or condition (i)
has or is reasonably expected to have a material adverse effect on the business,
operations, condition (financial or otherwise), assets, liabilities, prospects,
or properties of Borrower; (ii) has or is reasonably expected to have any
material adverse effect on the validity or enforceability of this Agreement or
any Loan Document; (iii) materially impairs or is reasonably expected to
materially impair the ability of Borrower to pay and perform the Obligations;
(iv) materially impairs or is reasonably expected to materially impair the
ability of Lender to enforce its rights and remedies under this Agreement or any
of the Loan Documents; or (v) has or is reasonably expected to have any material
adverse effect on the Collateral (taken as a whole), the liens of Lender in the
Collateral (taken as a whole) or the priority of such liens.

         Section 1.31b. Material Adverse Change in Financial Condition.
"Material Adverse Change in Financial Condition" shall mean any material adverse
change in financial condition of the Borrower including without limitation, any
decrease in EBITDA whereby (at any time during the Term) thirty-three and one
third percent (33 1/3%) of the aggregate balance of the Loan (including
principal and interest) is greater than the product of (i) EBITDA for any
trailing six (6) month period multiplied by (ii) two (2).

         Section 1.32. Maximum Loan Amount. "Maximum Loan Amount" has the
meaning set forth in Section 2.1(a).

         Section 1.33 Minimum Termination Fee. "Minimum Termination Fee" shall
mean the amount equal to (i) two percent (2%) of the Maximum Loan Amount if the
notice of loan termination is on or before the first anniversary of the Closing
or (ii) one percent (1%) of the Maximum Loan Amount if the notice of loan
termination is after first anniversary of the Closing Date and on or before the
second anniversary of the Closing Date.

         Section 1.34. Note. "Note" has the meaning set forth in Section 2.1(c).

         Section 1.35. Obligations. "Obligations" has the meaning set forth in
Section 3.1.

<PAGE>

         Section 1.36. Permitted Liens. "Permitted Liens" means: (i) deposits or
pledges to secure obligations under workmen's compensation, social security or
similar laws, or under unemployment insurance; (ii) deposits or pledges to
secure bids, tenders, contracts (other than contracts for the payment of money),
leases, statutory obligations, surety and appeal bonds and other obligations of
like nature arising in the ordinary course of business; (iii) mechanic's,
workmen's, materialmen's or other like liens arising in the ordinary course of
business with respect to obligations which are not due, or which are being
contested in good faith by appropriate proceedings which suspend the collection
thereof and in respect of which adequate reserves have been made (provided that
such proceedings do not, in Lender's sole discretion, involve any substantial
risk of the sale, loss or forfeiture of such property or assets or any interest
therein); (iv) liens and encumbrances in favor of Lender; (v) taxes set forth on
the Borrower's balance sheet which are properly accrued but not yet payable and
(vi) liens set forth on Schedule 1.36.

         Section 1.37. Person. "Person" means an individual, partnership,
corporation, trust, joint venture, joint stock company, limited liability
company, association, unincorporated organization, Governmental Authority, or
any other entity.

         Section 1.38. Plan. "Plan" has the meaning set forth in Section 4.12.

         Section 1.39. Premises. "Premises" has the meaning set forth in Section
4.14.

         Section 1.40. Prime Rate of Interest. "Prime Rate of Interest" means
that rate of interest designated as such by Citibank, N.A., or any successor
thereto, as the same may from time to time fluctuate.

         Section 1.41. Prohibited Transaction. "Prohibited Transaction" means a
"prohibited transaction" within the meaning of Section 406 of ERISA or Section
4975(c)(1) of the Internal Revenue Code that is not exempt under Section 407 or
Section 408 of ERISA or Section 4975(c)(2) or (d) of the Internal Revenue Code
or under a class exemption granted by the U.S. Department of Labor.

         Section 1.42. Qualified Account. "Qualified Account" means an Account
of Borrower generated in the ordinary course of Borrower's business from
rendition of Services by Borrower to pharmaceutical companies and clinical
research organizations which Lender, in its sole credit judgment, deems to be a
Qualified Account. Without limiting the generality of the foregoing, no Account
shall be a Qualified Account if: (a) the Account remains unpaid more than ninety
(90) days after the event which triggers the milestone payment under the
contract pursuant to which the applicable Services were rendered; (b) the
Account is subject to any defense, set-off, counterclaim, deduction, discount,
credit, chargeback, freight claim, allowance, or adjustment of any kind; (c) the
Services giving rise to the Account have not actually been performed or were
undertaken in violation of any law; (d) the Account is subject to a lien other
than a Permitted Lien; (e) Borrower knows or should have known of the
bankruptcy, receivership, reorganization, or insolvency of the Account Debtor;
(f) the Account is evidenced by Chattel Paper or an Instrument of any kind, or
has been reduced to judgment; (g) the Account is an Account of an Account Debtor
having its principal place of business or executive office outside the United

<PAGE>

States; (h) the Account Debtor is an Affiliate or subsidiary of Borrower; (i)
more than thirty percent (30%) of the aggregate balance of all Accounts owing
from the Account Debtor obligated on the Account are outstanding more than
ninety (90) days past the date on which the applicable Services were rendered;
(j) fifty percent (50%) or more of the aggregate unpaid Accounts from any single
Account Debtor are not otherwise deemed Qualified Accounts under this Agreement;
(k) the total unpaid Accounts of any individual Account Debtor obligated on the
Account exceed twenty percent (20%) of the net amount of all Qualified Accounts
to the extent of such excess; (l) any covenant, representation or warranty
contained in the Loan Documents with respect to such Account has been breached
in any material respect; or (m) the Account fails to meet such other
specifications and requirements which may from time to time be established by
Lender in its reasonable credit judgment in accordance with its customary
lending practices and notice of which shall have been given to Borrower at least
five (5) days prior to the effective date.

         Section 1.43. Reportable Event. "Reportable Event" means a "reportable
event" as defined in Section 4043(c) of ERISA for which the notice requirements
of Section 4043(a) of ERISA are not waived..

         Section 1.44. Revolving Credit Loan. "Revolving Credit Loan" has the
meaning set forth in Section 2.1(b).

         Section 1.45. Services. "Services" means the clinical drug trial
services provided by Borrower to pharmaceutical companies and clinical research
organizations.

         Section 1.46. Term. "Term" has the meaning set forth in Section 2.8.

         Section 1.47. Uniform Commercial Code. "Uniform Commercial Code" means
the Uniform Commercial Code, as amended and in effect in the State of Maryland.

                                   ARTICLE II

                                      LOAN

         Section 2.1. Terms.

                  (a) The maximum aggregate principal amount of credit extended
by Lender to Borrower under this Agreement (the "Loan") that will be outstanding
at any time is One Million Five Hundred Thousand and No/100 Dollars
($1,500,000.00) (the "Maximum Loan Amount").

                  (b) The Loan shall be in the nature of a revolving line of
credit, and shall include sums advanced and other credit extended by Lender to
or for the benefit of Borrower from time to time under this Article II (each a
"Revolving Credit Loan") up to the Maximum Loan Amount depending upon the
availability in the Borrowing Base, the requests of Borrower pursuant to the
terms and conditions of Section 2.2, and on such other basis as Lender may
reasonably determine. The outstanding principal balance of the Loan may
fluctuate from time to

<PAGE>

time, to be reduced by repayments made by Borrower (which may be made without
penalty or premium), and to be increased by future Revolving Credit Loans,
advances and other extensions of credit to or for the benefit of Borrower, and
shall be due and payable in full upon the expiration of the Term. For purposes
of this Agreement, any determination as to whether there is availability within
the Borrowing Base for advances or extensions of credit shall be made by Lender
in its sole discretion and is final and binding upon Borrower.

                  (c) At Closing, Borrower shall execute and deliver to Lender a
promissory note evidencing Borrower's unconditional obligation to repay Lender
for Revolving Credit Loans, advances, and other extensions of credit made under
the Loan, in the form of Exhibit A to this Agreement (as amended, modified,
restated or replaced from time to time, the "Note"), dated the date of this
Agreement, payable to the order of Lender in accordance with the terms thereof.
The Note shall bear interest on the outstanding principal balance of the Note
from the date of the Note until repaid, with interest payable monthly in arrears
on the first Business Day of each month, at a rate per annum (on the basis of
the actual number of days elapsed over a year of 360 days) equal to the Base
Rate, provided that after the occurrence and during the continuance of an Event
of Default such rate shall be equal to the Default Rate. Each Revolving Credit
Loan, advance and other extension of credit shall be deemed evidenced by the
Note, which is deemed incorporated into and made a part of this Agreement by
this reference.

                  (d) Subject to the terms and conditions of this Agreement,
advances under the Loan shall be made against a borrowing base equal to
eighty-five percent (85%) of Qualified Accounts due and owing from any Account
Debtor less any applicable offsets (the "Borrowing Base"); provided, however, in
the event that thirty-three and one third percent (33 1/3%) of the aggregate
balance of the Loan (including principal and interest) at any time during the
Term is greater than the product of (i) EBITDA for any trailing three (3) month
period multiplied by (ii) four (4), then the Borrowing Base shall be equal to
sixty percent (60%) of such Qualified Accounts.

         Section 2.2. Loan Administration. Borrowings under the Loan shall be as
follows:

                  (a) A request for a Revolving Credit Loan shall be made, or
shall be deemed to be made, in the following manner: (i) Borrower may give
Lender notice of its intention to borrow, in which notice Borrower shall specify
the amount of the proposed borrowing and the proposed borrowing date, not later
than 2:00 p.m. Eastern time two (2) Business Days before the proposed borrowing
date; provided, however, that no such request may be made at a time when there
exists an Event of Default; and (ii) the becoming due of any amount required to
be paid under this Agreement, whether as interest or for any other Obligation,
shall be deemed irrevocably to be a request for a Revolving Credit Loan on the
day following the due date in the amount required to pay such interest or other
Obligation if such was not paid by Borrower on the due date.

                  (b) Borrower hereby irrevocably authorizes Lender to disburse
the proceeds of each Revolving Credit Loan requested, or deemed to be requested,
as follows: (i) the proceeds of each Revolving Credit Loan requested under
subsection 2.2(a)(i) shall be disbursed by Lender by wire transfer to such bank
account as may be agreed upon by Borrower and Lender

<PAGE>

from time to time or elsewhere if pursuant to written direction from Borrower;
and (ii) the proceeds of each Revolving Credit Loan deemed to be requested under
subsection 2.2(a)(ii) shall be disbursed by Lender by way of direct payment of
the relevant interest or other Obligation.

                  (c) All Revolving Credit Loans, advances and other extensions
of credit to or for the benefit of Borrower shall constitute one general
Obligation of Borrower, and shall be secured by Lender's lien upon all of the
Collateral.

                  (d) Lender shall enter all Revolving Credit Loans as debits to
a loan account in the name of Borrower and shall also record in said loan
account all payments made by Borrower on any Obligations and all proceeds of
Collateral which are indefeasibly paid to Lender, and may record therein, in
accordance with customary accounting practice, other debits and credits,
including interest and all charges and expenses properly chargeable to Borrower.
All collections into the Concentration Account pursuant to Section 2.3 shall be
applied first to fees, costs and expenses due and owing under the Loan
Documents, then to interest due and owing under the Loan Documents, and then to
principal outstanding with respect to Revolving Credit Loans.

                  (e) Lender will account to Borrower monthly with a statement
of Revolving Credit Loans, charges and payments made pursuant to this Agreement,
and such accounting rendered by Lender shall be deemed final, binding and
conclusive upon Borrower, absent manifest error, unless Lender is notified by
Borrower in writing to the contrary within thirty (30) days of the date each
accounting is mailed to Borrower. Such notice shall be deemed an objection to
those items specifically objected to in the notice.

         Section 2.3. Collections, Disbursements, Borrowing Availability, and
Lockbox Account. Borrower shall maintain a lockbox account (the "Lockbox") with
a bank agreed upon by the parties hereto (the "Lockbox Bank"), subject to the
provisions of this Agreement, and shall execute with the Lockbox Bank a Lockbox
Agreement in the form attached as Exhibit B, and such other agreements related
to the Lockbox Agreement as Lender may require. Borrower shall ensure that all
collections of Accounts are paid directly from Account Debtors into the Lockbox,
and that all funds paid into the Lockbox are immediately transferred into a
depository account maintained by Lender at Bank One, N.A., or such other
financial institution as determined by Lender in its sole discretion as set
forth in the Lockbox Agreement. Lender shall apply, on a daily basis, all funds
transferred into the Concentration Account pursuant to this Section 2.3 to
reduce the outstanding indebtedness under the Loan (in accordance with Section
2.2(d)), and all future Revolving Credit Loans, advances and other extensions of
credit to be made by Lender under the conditions set forth in this Article II.
To the extent that any collections of Accounts or proceeds of other Collateral
are not sent directly to the Lockbox but are received by Borrower, such
collections shall be held in trust for the benefit of Lender and immediately
remitted, in the form received, to the Lockbox Bank for transfer to the
Concentration Account immediately upon receipt by Borrower. Borrower
acknowledges and agrees that its compliance with the terms of this Section 2.3
is essential, and that upon its failure to comply with any such terms Lender
shall be entitled to assess a non-compliance fee which shall operate to increase
the Base Rate by two percent (2%) per annum during any period of non-compliance;
provided, however, if and only if Borrower diligently proceeds in good faith to
cure

<PAGE>

any such non-compliance, such non-compliance fee shall only be charged if
non-compliance results in liability of greater than $50,000 under this Section
2.3. Lender shall be entitled to assess such fee whether or not an Event of
Default is declared or otherwise occurs. All funds transferred from the
Concentration Account for application to Borrower's indebtedness to Lender shall
be applied to reduce the Loan balance, but for purposes of calculating interest
shall be subject to a four (4) Business Day clearance period. If as the result
of collections of Accounts pursuant to the terms and conditions of this Section
2.3 a credit balance exists with respect to the Concentration Account, such
credit balance shall not accrue interest in favor of Borrower, but shall be
available to Borrower at any time or times for so long as no Event of Default
exists.

         Section 2.4. Fees.

                  (a) By executing this Agreement, Borrower agrees
unconditionally to pay to Lender a commitment fee equal to two percent (2%) of
the Maximum Loan Amount (the "Commitment Fee").

                  (b) For so long as the Loan is available to Borrower, Borrower
unconditionally shall pay to Lender a monthly usage fee (the "Usage Fee") equal
to one twelfth of one percent (0.083%) of the average amount by which $1,000,000
(as adjusted) exceeds the average amount of the outstanding principal balance of
the Revolving Credit Loans during the preceding month, if any; provided,
however, the parties agree that in the event the Maximum Loan Amount is
increased under this Agreement, the $1,000,000 set forth in this Section 2.4(b)
shall be increased by the amount of such increase in the Maximum Loan Amount.
The Usage Fee shall be payable monthly in arrears on the first Business Day of
each successive calendar month. During the first year of the Term only, the
Usage Fee will not be charged to Borrower in any month in which the average
principal amount of outstanding Revolving Credit Loans during such month exceeds
$400,000. This waiver shall not apply at any time after the first anniversary of
the date hereof.

                  (c) For so long as the Loan is available to Borrower, Borrower
unconditionally shall pay to Lender a monthly loan management fee (the "Loan
Management Fee") equal to fifteen one hundredths of one percent (0.15%) of the
average amount of the outstanding principal balance of the Revolving Credit
Loans during the preceding month. The Loan Management Fee shall be payable
monthly in arrears on the first day of each successive calendar month.

                  (d) Borrower shall pay to Lender all out-of-pocket audit fees
in connection with audits of Borrower's books and records and such other matters
as Lender shall deem appropriate (provided, that Lender will not engage in a
complete audit of Borrower more than quarterly (except upon an Event of
Default)), which shall be due and payable on the first Business Day of the month
following the date of issuance by Lender of a request for payment thereof to
Borrower.

                  (e) Borrower shall pay to Lender, on demand, any and all fees,
costs or expenses which Lender or any participant pays to a bank or other
similar institution (including, without limitation, any fees paid by Lender to
any participant) arising out of or in connection

<PAGE>

with (i) the forwarding to Borrower or any other Person on behalf of Borrower,
by Lender, of proceeds of Revolving Credit Loans made by Lender to Borrower
pursuant to this Agreement, and (ii) the depositing for collection, by Lender or
any participant, of any check or item of payment received or delivered to Lender
or any participant on account of Obligations.

                  (f) If, calculated as of one year from the Closing Date, the
average principal amount of outstanding Revolving Credit Loans during such year
(measured daily) is less than $400,000, then Borrower shall pay a yield
maintenance fee equal to the following: the product of (i) the all in effective
yield (measured as a percentage per annum) which would have been earned by
Lender if $400,000 had been outstanding at all times under this Agreement times
(ii) the difference of (A) $400,000 minus (B) the average principal amount of
outstanding Revolving Credit Loans during such year (measured as set forth
above).

         Section 2.5. Payments. Principal payable on account of Revolving Credit
Loans shall be payable by Borrower to Lender immediately upon the earliest of
(i) the receipt by Borrower or Lender of any payments on or proceeds from any of
the Collateral, to the extent of such proceeds, (ii) the occurrence of an Event
of Default if the Loan and the maturity of the payment of the Obligations are
accelerated, or (iii) the termination of this Agreement pursuant to Section 2.8
of this Agreement; provided, however, that if any advance made by Lender in
excess of the Borrowing Base shall exist at any time, Borrower shall,
immediately upon demand, repay such overadvance. Interest accrued on the
Revolving Credit Loans shall be due on the earliest of (i) the first Business
Day of each month (for the immediately preceding month), computed on the last
calendar day of the preceding month, (ii) the occurrence of an Event of Default
if the Loan and the maturity of the payment of the Obligations are accelerated,
or (iii) the termination of this Agreement pursuant to Section 2.8. Except to
the extent otherwise set forth in this Agreement, all payments of principal and
of interest on the Loan, all other charges and any other obligations of Borrower
under this Agreement, shall be made to Lender to the Concentration Account, in
immediately available funds.

         Section 2.6. Use of Proceeds. The proceeds of Lender's advances under
the Loan shall be used solely for working capital and for other costs of
Borrower arising in the ordinary course of Borrower's business and as set forth
on Schedule 2.6.

         Section 2.7. Interest Rate Limitation. The parties intend to conform
strictly to the applicable usury laws in effect from time to time during the
term of the Loan. Accordingly, if any transaction contemplated by this Agreement
would be usurious under such laws, then notwithstanding any other provision of
this Agreement: (i) the aggregate of all interest that is contracted for,
charged, or received under this Agreement or under any other Loan Document shall
not exceed the maximum amount of interest allowed by applicable law (the
"Highest Lawful Rate"), and any excess shall be promptly credited to Borrower by
Lender (or, to the extent that such consideration shall have been paid, such
excess shall be promptly refunded to Borrower by Lender); (ii) neither Borrower
nor any other Person now or hereafter liable under this Agreement shall be
obligated to pay the amount of such interest to the extent that it is in excess
of the Highest Lawful Rate; and (iii) the effective rate of interest shall be
reduced to the Highest Lawful Rate. All sums paid, or agreed to be paid, to
Lender for the use, forbearance, and detention of the debt of Borrower to Lender
shall, to the extent permitted by applicable law,

<PAGE>

be allocated throughout the full term of the Note until payment is made in full
so that the actual rate of interest does not exceed the Highest Lawful Rate in
effect at any particular time during the full term thereof. If at any time the
rate of interest under the Note exceeds the Highest Lawful Rate, the rate of
interest to accrue pursuant to this Agreement shall be limited, notwithstanding
anything to the contrary in this Agreement, to the Highest Lawful Rate, but any
subsequent reductions in the Base Rate shall not reduce the interest to accrue
pursuant to this Agreement below the Highest Lawful Rate until the total amount
of interest accrued equals the amount of interest that would have accrued if a
varying rate per annum equal to the interest rate under the Note had at all
times been in effect. If the total amount of interest paid or accrued pursuant
to this Agreement under the foregoing provisions is less than the total amount
of interest that would have accrued if a varying rate per annum equal to the
interest rate under the Note had been in effect, then Borrower agrees to pay to
Lender an amount equal to the difference between (x) the lesser of (A) the
amount of interest that would have accrued if the Highest Lawful Rate had at all
times been in effect, or (B) the amount of interest that would have accrued if a
varying rate per annum equal to the interest rate under the Note had at all
times been in effect, and (y) the amount of interest accrued in accordance with
the other provisions of this Agreement.

         Section 2.8. Term.

                  (a) Subject to Lender's right to cease making Revolving Credit
Loans to Borrower upon or after any Event of Default, this Agreement shall be in
effect for a period of two (2) years from the Closing Date, unless terminated as
provided in this Section 2.8 or Section 8.3(a) (the "Term"), and this Agreement
shall be renewed for one-year periods thereafter upon the mutual written
agreement of the parties.

                  (b) Notwithstanding anything in this Agreement to the
contrary, Lender may terminate this Agreement without notice upon or after the
occurrence of an Event of Default.

                  (c) Upon at least thirty (30) days prior written notice to
Lender (the "Termination Notice Period"), Borrower may terminate this Agreement,
provided however, at the effective date of such termination, Borrower shall pay
to Lender (in addition to the then outstanding principal, accrued interest and
other Obligations owing under the terms of this Agreement and any other Loan
Documents) as yield maintenance for the loss of bargain and not as a penalty, an
amount equal to the applicable Minimum Termination Fee.

                  (d) All of the Obligations shall be immediately due and
payable upon the termination date stated in any notice of termination of this
Agreement (the "Termination Date"); provided that, notwithstanding anything in
Section 2.8(c) to the contrary, the Termination Date shall be effective no
earlier than the first Business Day of the month following the expiration of the
Termination Notice Period. All undertakings, agreements, covenants, warranties,
and representations of Borrower contained in the Loan Documents shall survive
any such termination and Lender shall retain its liens in the Collateral and all
of its rights and remedies under the Loan Documents notwithstanding such
termination until Borrower has paid the Obligations to Lender, in full, in
immediately available funds.

<PAGE>

                  (e) Notwithstanding any provision of this Agreement which
makes reference to the continuance of an Event of Default, nothing in this
Agreement shall be construed to permit Borrower to cure an Event of Default
following the lapse of the applicable cure period, and Borrower shall have no
such right in any instance unless specifically granted in writing by Lender
(such grant not to be unreasonably withheld).

         Section 2.9. Joint and Several Liability; Binding Obligations. Each
entity comprising Borrower and executing this Agreement on behalf of Borrower
shall be jointly and severally liable for all of the Obligations. In addition,
each entity comprising Borrower hereby acknowledges and agrees that all of the
representations, warranties, covenants, obligations, conditions, agreements and
other terms contained in this Agreement shall be applicable to and shall be
binding upon each entity comprising Borrower, and shall be binding upon all such
entities when taken together.

                                   ARTICLE III

                                   COLLATERAL

         Section 3.1. Generally. As security for the payment of all liabilities
of Borrower to Lender, including without limitation: (i) indebtedness evidenced
under the Note, repayment of Revolving Credit Loans, advances and other
extensions of credit, all fees and charges owing by Borrower, and all other
liabilities and obligations of every kind or nature whatsoever of Borrower to
Lender, whether now existing or hereafter incurred, joint or several, matured or
unmatured, direct or indirect, primary or secondary, related or unrelated, due
or to become due, including but not limited to any extensions, modifications,
substitutions, increases and renewals thereof, (ii) the payment of all amounts
advanced by Lender to preserve, protect, defend, and enforce its rights under
this Agreement and in the following property in accordance with the terms of
this Agreement, and (iii) the payment of all expenses incurred by Lender in
connection therewith (collectively, the "Obligations"),

Borrower hereby assigns and grants to Lender a continuing first priority lien on
and security interest in, upon, and to the following property (the
"Collateral"):

                  (a) All of Borrower's now-owned and hereafter acquired or
arising Accounts, accounts receivable and rights to payment of every kind and
description, and all of Borrower's contract rights, Chattel Paper, documents and
Instruments with respect thereto, 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 or other security for the obligation of any Account Debtor, and credit
and other insurance;

<PAGE>

                  (b) All moneys, securities and other property and the proceeds
thereof, now or hereafter held or received by, in transit to, in possession of,
or under the control of Lender or a bailee or Affiliate of Lender, from or for
Borrower, whether for safekeeping, pledge, custody, transmission, collection or
otherwise, and all of Borrower's deposits (general or special), balances, sums
and credits with Lender at any time existing;

                  (c) 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;

                  (d) All of Borrower's now owned or hereafter acquired deposit
accounts into which Accounts are deposited, including the Lockbox Account;

                  (e) 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, accounts receivable and
other rights to payment, including, but not limited to, all existing and future
customer lists, choses in action, claims, books, records, ledger cards,
contracts, licenses, formulae, tax and other types of refunds, returned and
unearned insurance premiums, rights and claims under insurance policies, and
computer programs, information, software, records, and data, as the same relates
to the Accounts;

                  (f) All of Borrower's other general intangibles (including,
without limitation, any proceeds from insurance policies after payment of prior
interests), patents, unpatented inventions, trade secrets, copyrights, contract
rights, goodwill, literary rights, rights to performance, rights under licenses,
choses-in-action, claims, information contained in computer media (such as data
bases, source and object codes, and information therein), things in action,
trademarks and trademarks applied for (together with the goodwill associated
therewith) and derivatives thereof, trade names, including the right to make,
use, and vend goods utilizing any of the foregoing, and permits, licenses,
certifications, authorizations and approvals, and the rights of Borrower
thereunder, issued by any governmental, regulatory, or private authority,
agency, or entity whether now owned or hereafter acquired, together with all
cash and non-cash proceeds and products thereof;

                  (g) All of Borrower's now owned or hereafter acquired
inventory of every description which is held by Borrower for sale or lease or is
furnished by Borrower under any contract of service or is held by Borrower as
raw materials, work in process or materials used or consumed in a business,
wherever located, and as the same may now and hereafter from time to time be
constituted, together with all cash and non-cash proceeds and products thereof;

                  (h) All of Borrower's now owned or hereafter acquired
machinery, equipment, computer equipment, tools, tooling, furniture, fixtures,
goods, supplies, materials, work in process, whether now owned or hereafter
acquired, together with all additions, parts, fittings, accessories, special
tools, attachments, and accessions now and hereafter affixed thereto

<PAGE>

and/or used in connection therewith, all replacements thereof and substitutions
therefor, and all cash and non-cash proceeds and products thereof; and

                  (i) The proceeds (including, without limitation, insurance
proceeds) of all of the foregoing.

; provided, however, Lender will have a continuing lien on and security interest
in (rather than a first priority lien and security interest in) the property set
forth on Schedule 3.1.

         Section 3.2. Lien Documents. At Closing and thereafter as Lender deems
necessary in its sole discretion, Borrower shall execute and deliver to Lender,
or have executed and delivered (all in form and substance satisfactory to Lender
in its sole discretion):

                  (a) UCC-1 Financing Statements pursuant to the Uniform
Commercial Code in effect in the jurisdiction(s) in which Borrower operates,
which Lender may file in any jurisdiction where any Collateral is or may be
located and in any other jurisdiction that Lender deems appropriate; provided
that a carbon, photographic, or other reproduction or other copy of this
Agreement or of a financing statement is sufficient as and may be filed in lieu
of a financing statement; and

                  (b) Any other agreements, documents, instruments, and writings
deemed necessary by Lender or as Lender may otherwise request from time to time
in its sole discretion to evidence, perfect, or protect Lender's lien and
security interest in the Collateral required under this Agreement.

         Section 3.3. Collateral Administration.

                  (a) All Collateral (except deposit accounts) will at all times
be kept by Borrower at its principal office(s) as set forth on Schedule 4.15 and
shall not be moved from such locations without the prior written consent of
Lender, which consent shall not be unreasonably withheld.

                  (b) Borrower shall keep accurate and complete records of its
Accounts and all payments and collections thereon and shall submit to Lender on
such periodic basis as Lender shall request a sales and collections report for
the preceding period, in form satisfactory to Lender. In addition, if Accounts
in an aggregate face amount in excess of $50,000.00 become ineligible because
they fall within one of the specified categories of ineligibility set forth in
the definition of Qualified Accounts or otherwise, Borrower shall notify Lender
of such occurrence on the first Business Day following such occurrence and the
Borrowing Base shall thereupon be adjusted to reflect such occurrence. If
requested by Lender upon an event which, with the giving of notice or the lapse
of time, or both, could constitute an Event of Default, Borrower shall execute
and deliver to Lender formal written assignments of all of its Accounts weekly
or daily, which shall include all Accounts that have been created since the date
of the last assignment, together with copies of claims, invoices or other
information related thereto.

<PAGE>

                  (c) Whether or not an Event of Default has occurred, any of
Lender's officers, employees or agents shall have the right, at any time or
times hereafter, in the name of Lender or any designee of Lender or Borrower, to
verify the validity, amount or any other matter relating to any Accounts by
mail, telephone, telegraph or otherwise. Borrower shall cooperate fully with
Lender in an effort to facilitate and promptly conclude such verification
process.

                  (d) To expedite collection, Borrower shall endeavor in the
first instance to make collection of its Accounts for Lender. Lender retains the
right at all times after the occurrence and during the continuance of an Event
of Default to notify Account Debtors that Accounts have been assigned to Lender
and to collect Accounts directly in its own name and to charge the collection
costs and expenses, including attorneys' fees, to Borrower.

         Section 3.4. Other Actions. In addition to the foregoing, Borrower (i)
shall provide prompt written notice to each Account Debtor (whether or not such
Account Debtor was an Account Debtor on the date hereof) at any time following
the date of this Agreement that Lender has been granted a first priority lien
and security interest in, upon and to all Accounts applicable to such Account
Debtor to make payments into the Lockbox, and hereby authorizes Lender, upon
Borrower's failure to send such notices within ten (10) days after the date of
this Agreement (or ten (10) days after the Account Debtor becomes an Account
Debtor), to send any and all similar notices to such Account Debtor, and (ii)
shall do anything further that may be lawfully required by Lender to secure
Lender and effectuate the intentions and objects of this Agreement, including
but not limited to the execution and delivery of lockbox agreements,
continuation statements, amendments to financing statements, and any other
documents required under this Agreement. At Lender's request, Borrower shall
also immediately deliver to Lender all items for which Lender must receive
possession to obtain a perfected security interest. Borrower shall, on Lender's
demand, deliver to Lender all notes, certificates, and documents of title,
Chattel Paper, warehouse receipts, Instruments, and any other similar
instruments constituting Collateral.

         Section 3.5. Searches. Before Closing, and thereafter (as and when
determined by Lender in its sole discretion), Lender will perform the searches
described in clauses (a) and (b) below against Borrower (the results of which
are to be consistent with Borrower's representations and warranties under this
Agreement), all at Borrower's expense:

                  (a) Uniform Commercial Code searches with the Secretary of
State and local filing offices of each jurisdiction where Borrower maintains its
executive offices, a place of business, or assets;

                  (b) Judgment, federal tax lien and corporate and partnership
tax lien searches, in each jurisdiction searched under clause (a) above; and

         In addition, prior to Closing, at Borrower's expense, Borrower shall
obtain and deliver to Lender good standing certificates showing Borrower to be
in good standing in its state of formation and in each other state in which it
is doing and currently intends to do business for which qualification is
required.

<PAGE>

         Section 3.6. Power of Attorney. Each of the officers of Lender is
hereby irrevocably made, constituted and appointed the true and lawful attorney
for Borrower (without requiring any of them to act as such) with full power of
substitution to do the following: (i) endorse the name of Borrower upon any and
all checks, drafts, money orders, and other instruments for the payment of money
that are payable to Borrower and constitute collections on Borrower's Accounts;
(ii) execute in the name of Borrower any financing statements, schedules,
assignments, instruments, documents, and statements that Borrower is obligated
to give Lender under this Agreement; and (iii) do such other and further acts
and deeds in the name of Borrower that Lender may deem necessary or desirable to
enforce any Account or other Collateral or perfect Lender's security interest or
lien in any Collateral. In addition, if Borrower breaches its obligation to
direct payments of the proceeds of the Collateral to the Lockbox Account,
Lender, as the irrevocably made, constituted and appointed true and lawful
attorney for Borrower pursuant to this paragraph, may, by the signature or other
act of any of Lender's officers (without requiring any of them to do so), direct
any federal, state or private payor or fiscal intermediary to pay proceeds of
the Collateral to Borrower by directing payment to the Lockbox Account.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         Each entity comprising Borrower represents and warrants to Lender, and
shall be deemed to represent and warrant on each day on which any Obligations
shall be outstanding under this Agreement, that:

         Section 4.1. Subsidiaries. Except as set forth in Schedule 4.1,
Borrower has no subsidiaries.

         Section 4.2. Organization and Good Standing. Borrower is a corporation
duly organized, validly existing, and in good standing under the laws of its
state of formation, is in good standing as a foreign corporation in each
jurisdiction in which the character of the properties owned or leased by it
therein or the nature of its business makes such qualification necessary, has
the corporate power and authority to own its assets and transact the business in
which it is engaged, and has obtained all certificates and licenses (except to
the extent that the lack of obtaining such certificates or licenses,
individually or in the aggregate, would not have a Material Adverse Effect on
the Borrower) and has obtained all qualifications required under all laws,
regulations, ordinances, or orders of public authorities necessary for the
ownership and operation of all of its properties and transaction of all of its
business.

<PAGE>

         Section 4.3. Authority. Borrower has full corporate power and authority
to enter into, execute, and deliver this Agreement and to perform its
obligations under this Agreement, to borrow the Loan, to execute and deliver the
Note, and to incur and perform the obligations provided for in the Loan
Documents, all of which have been duly authorized by all necessary corporate
action. No consent or approval of shareholders of, or lenders to, Borrower and
no consent, approval, filing or registration with any Governmental Authority is
required as a condition to the validity of the Loan Documents or the performance
by Borrower of its obligations under the Loan Documents.

         Section 4.4. Binding Agreement. This Agreement and all other Loan
Documents constitute, and the Note, when issued and delivered pursuant to this
Agreement for value received, will constitute, the valid and legally binding
obligations of Borrower, enforceable against Borrower in accordance with their
respective terms, subject to the qualification that the enforceability thereof
may be limited by applicable bankruptcy, fraudulent conveyance, reorganization
or other laws affecting the enforceability of creditor's rights and by the
availability of equitable remedies.

         Section 4.5. Litigation. Except as disclosed in Schedule 4.5, there are
no actions, suits, proceedings or investigations pending or threatened against
Borrower before any court or arbitrator or before or by any Governmental
Authority which, in any one case or in the aggregate, if determined adversely to
the interests of Borrower, could have a material adverse effect on the business,
properties, condition (financial or otherwise) or operations, current or
prospective, of Borrower, or upon its ability to perform its obligations under
the Loan Documents. Borrower is not in default with respect to any order of any
court, arbitrator, or Governmental Authority applicable to Borrower or its
properties.

         Section 4.6. No Conflicts. The execution and delivery by Borrower of
this Agreement and the other Loan Documents do not, and the performance of its
obligations under the Loan Documents will not, violate, conflict with,
constitute a default under, or result in the creation of a lien or encumbrance
upon the property of Borrower (other than for the benefit of Lender) under: (i)
any provision of Borrower's articles/certificate of incorporation or bylaws,
(ii) any provision of any law, rule, or regulation applicable to Borrower, or
(iii) any of the following: (A) any indenture or other agreement or instrument
to which Borrower is a party or by which Borrower or its property is bound; or
(B) any judgment, order or decree of any court, arbitration tribunal, or
Governmental Authority having jurisdiction over Borrower which is applicable to
Borrower.

         Section 4.7. Financial Condition. The annual financial statements of
Borrower as of and for the period ending December 31, 1997 and December 31, 1998
audited by Kaufman Rossin & Co., Inc. and the unaudited financial statements of
Borrower as of and for the period ending December 31, 1999, certified by the
chief financial officer of Borrower, which have been delivered to Lender, fairly
present the financial condition of Borrower and the results of its operations
and changes in financial condition as of the dates and for the periods referred
to, and have been prepared in accordance with GAAP. There are no material
unrealized or anticipated liabilities, direct or indirect, fixed or contingent,
of Borrower as of the dates of such financial statements which are not reflected
in such financial statements or in the notes to such financial statements. There
has been no adverse change in the business, properties, condition (financial or

<PAGE>

otherwise) or operations (current or prospective) of Borrower since December 31,
1998. Borrower's fiscal year ends on December 31. The federal tax identification
number of each entity comprising Borrower is set forth on Schedule 4.7.

         Section 4.8. No Default. Borrower is not in default under or with
respect to any obligation in any respect which could be adverse to its business,
operations, property or financial condition, or which could adversely affect the
ability of Borrower to perform its obligations under the Loan Documents. No
Event of Default or event which, with the giving of notice or lapse of time, or
both, could become an Event of Default, has occurred and is continuing.

         Section 4.9. Title to Properties. Borrower has good and marketable
title to its properties and assets, including the Collateral and the properties
and assets reflected in the financial statements described in Section 4.7,
subject to no lien, mortgage, pledge, encumbrance or charge of any kind, other
than Permitted Liens. Borrower has not agreed or consented to cause any of its
properties or assets whether owned now or hereafter acquired to be subject in
the future (upon the happening of a contingency or otherwise) to any lien,
mortgage, pledge, encumbrance or charge of any kind other than Permitted Liens.

         Section 4.10. Taxes. Borrower has filed, or has obtained extensions for
the filing of, all federal, state and other tax returns which are required to be
filed, and except as shown on Schedule 4.10, has paid all taxes shown as due on
those returns and all assessments, fees and other amounts due as of the date of
this Agreement. All tax liabilities of Borrower were, as of December 31, 1999
and are now, adequately provided for on Borrower's books. No tax liability has
been asserted by the Internal Revenue Service or other taxing authority against
Borrower for taxes in excess of those already paid.

         Section 4.11.  Securities and Banking Laws and Regulations.

                  (a) The use of the proceeds of the Loan and Borrower's
issuance of the Note will not directly or indirectly violate or result in a
violation of the Securities Act of 1933 or the Securities Exchange Act of 1934,
as amended, or any regulations issued pursuant thereto, including without
limitation Regulations U, T or X of the Board of Governors of the Federal
Reserve System. Borrower is not engaged in the business of extending credit for
the purpose of the purchasing or carrying "margin stock" within the meaning of
those regulations. No part of the proceeds of the Loan under this Agreement will
be used to purchase or carry any margin stock or to extend credit to others for
such purpose without the written consent of Lender, such consent not to be
unreasonably withheld.

                  (b) Borrower is not an investment company within the meaning
of the Investment Company Act of 1940, as amended, nor is it, directly or
indirectly, controlled by or acting on behalf of any Person which is an
investment company within the meaning of that Act.

         Section 4.12. ERISA. No employee benefit plan (a "Plan") subject to the
Employee Retirement Income Security Act of 1974 ("ERISA") and regulations issued
pursuant to ERISA that is maintained by Borrower or under which Borrower could
have any material liability under ERISA (i) has failed to meet minimum funding
standards established in Section 302 of ERISA,

<PAGE>

(ii) has failed to substantially comply with all applicable requirements of
ERISA and of the Internal Revenue Code, including all applicable rulings and
regulations thereunder, or (iii) has engaged in or been involved in a prohibited
transaction (as defined in ERISA) under ERISA or under the Internal Revenue
Code. Neither Borrower nor any member of a Controlled Group that includes
Borrower has assumed, or received notice of a claim asserted against Borrower or
another member of the Controlled Group for, withdrawal liability (as defined in
the Multi-Employer Pension Plan Amendments Act of 1980, as amended) with respect
to any multi-employer pension plan. Borrower has timely made when due all
contributions with respect to any multi-employer pension plan in which it
participates and no event has occurred triggering a material claim against
Borrower for withdrawal liability with respect to any multi-employer pension
plan in which Borrower participates.

         Section 4.13. Compliance with Law. Except as described in Schedule
4.13, Borrower is not in violation of any statute, rule or regulation of any
Governmental Authority (including, without limitation, any statute, rule or
regulation relating to employment practices or to environmental, occupational
and health standards and controls), the violation of which could, individually
or in the aggregate, have a Material Adverse Effect. Borrower has obtained all
licenses, permits, franchises, and other governmental authorizations necessary
for the ownership of its properties and the conduct of its business, except to
the extent that the lack of obtaining such licenses, individually or in the
aggregate, would not have a Material Adverse Effect on the Borrower. Borrower is
current with all reports and documents required to be filed with any state or
federal securities commission or similar Governmental Authority and is in full
compliance with all applicable rules and regulations of such commissions.

         Section 4.14. Environmental Matters. No use, exposure, release,
generation, manufacture, storage, treatment, transportation or disposal of
Hazardous Material has occurred or is occurring on or from any real property on
which the Collateral is located or which is owned, leased or otherwise occupied
by Borrower (the "Premises"), or off the Premises as a result of any action of
Borrower, except as described in Schedule 4.14. To the best knowledge of
Borrower, all Hazardous Material used, treated, stored, transported to or from,
generated or handled on the Premises, or off the Premises by Borrower, has been
disposed of on or off the Premises by or on behalf of Borrower in a lawful
manner. To the best knowledge of Borrower, there are no underground storage
tanks present on or under the Premises owned or leased by Borrower. To the best
knowledge of Borrower, no other environmental, public health or safety hazards
exist with respect to the Premises.

         Section 4.15. Places of Business. As of the Closing Date, the only
places of business of Borrower, and the places where it keeps and intends to
keep the Collateral and records concerning the Collateral, are at the addresses
set forth in Schedule 4.15. Schedule 4.15 also lists the owner of record of each
such property.

         Section 4.16. Intellectual Property. Borrower exclusively owns or
possesses all the patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, franchises, licenses, and
rights with respect to the foregoing necessary for the current and planned
future conduct of its business, without any conflict with the rights of others.
A list of all such intellectual property (indicating the nature of Borrower's
interest), as well as all

<PAGE>

outstanding franchises and licenses given by or held by Borrower, is attached as
Schedule 4.16. Borrower is not in default of any obligation or undertaking with
respect to such intellectual property or rights. Borrower is not infringing on
any patents, patent applications, trademarks, trademark applications, service
marks, trade names, copyrights, franchises, licenses, any rights with respect to
the foregoing, or any other intellectual property rights of others and the
Borrower is not aware of any infringement by others of any such rights owned by
Borrower.

         Section 4.17. Stock Ownership. The identity of the stockholders of
record of all classes of the outstanding stock of Borrower, together with the
respective ownership percentages held by such stockholders, are as set forth on
Schedule 4.17.

         Section 4.18. Material Facts. Neither this Agreement nor any other Loan
Document nor any other agreement, document, certificate, or statement furnished
to Lender by or on behalf of Borrower in connection with the transactions
contemplated by this Agreement contains any untrue statement of material fact or
omits to state a material fact necessary to make the statements contained in
this Agreement or other Loan Document not misleading. There is no fact known to
Borrower that adversely affects or in the future may adversely affect the
business, operations, affairs or financial condition of Borrower, or any of its
properties or assets.

         Section 4.19. Investments, Guarantees, and Certain Contracts. Borrower
does not own or hold any equity or long-term debt investments in, have any
outstanding advances to, have any outstanding guarantees for the obligations of,
or have any outstanding borrowings from, any Person, except as described on
Schedule 4.19. Borrower is not a party to any contract or agreement, or subject
to any corporate restriction, which adversely affects its business.

         Section 4.20. Business Interruptions. Within five years before the date
of this Agreement, neither the business, property or assets, or operations of
Borrower has been adversely affected in any way by any casualty, strike,
lockout, combination of workers, or order of the United States of America or
other Governmental Authority, directed against Borrower. There are no pending or
threatened labor disputes, strikes, lockouts, or similar occurrences or
grievances against Borrower or its business.

         Section 4.21. Names. Within five years before the date of this
Agreement, Borrower has not conducted business under or used any other name
(whether corporate, partnership or assumed) other than as shown on Schedule
4.21. Borrower is the sole owner of all names listed on that Schedule 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 and not a separate Person or independent Affiliate.

         Section 4.22 Joint Ventures. Borrower is not engaged in any joint
venture or partnership with any other Person, except as set forth on Schedule
4.22.

         Section 4.23 Accounts. Lender may rely, in determining which Accounts
are Qualified Accounts, on all statements and representations made by Borrower
with respect to any Account or Accounts. Unless otherwise indicated in writing
to Lender, with respect to each Qualified Account, Borrower represents that:

<PAGE>

                  (a) The Account is genuine and in all respects what it
purports to be, and is not evidenced by a judgment;

                  (b) The Account arises out of a completed, bona fide sale and
delivery of goods or rendition of Services by Borrower or a research affiliate
associated with Borrower in the ordinary course of its business and in
accordance with the terms and conditions of all purchase orders, contracts,
certification, participation, certificate of need, or other documents relating
thereto and forming a part of the contract between Borrower and the Account
Debtor;

                  (c) The Account is for a liquidated amount maturing as stated
in a duplicate claim or invoice covering such sale or rendition of Services, a
copy of which has been furnished or is available to Lender;

                  (d) The Account, and Lender's security interest in such
Account, is not, and will not (by voluntary act or omission by Borrower), be in
the future, subject to any offset, lien, deduction, defense, dispute,
counterclaim or any other adverse condition, and each such Account is absolutely
owing to Borrower and is not contingent in any respect or for any reason;

                  (e) There are no facts, events or occurrences which in any way
impair the validity or enforceability of any Accounts 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;

                  (f) To the best of Borrower's knowledge, (i) the Account
Debtor under the Account had the capacity to contract at the time any contract
or other document giving rise to the Account was executed and (ii) such Account
Debtor is solvent;

                  (g) To the best of Borrower's knowledge, there are no
proceedings or actions which are threatened or pending against any Account
Debtor under the Account which might result in any material adverse change in
such Account Debtor's financial condition or the collectibility of such Account;

                  (h) The Account has been billed and forwarded to the Account
Debtor for payment in accordance with applicable laws and compliance and
conformance with any and requisite procedures, requirements and regulations
governing payment by such Account Debtor with respect to such Account; and

                  (i) Borrower has obtained and currently has all licenses,
permits and authorizations that are necessary in the generation of such
Accounts.

         Section 4.24. Solvency. Both before and after giving effect to the
transactions contemplated by the terms and provisions of this Agreement,
Borrower (taken as a whole) (i) owns property whose fair saleable value is
greater than the amount required to pay all of Borrower's Indebtedness
(including contingent debts), (ii) was and is able to pay all of its
Indebtedness as such Indebtedness matures, and (iii) had and has capital
sufficient to carry on its business and transactions and all business and
transactions in which it about to engage. For

<PAGE>

purposes of this Agreement, the term "Indebtedness" means, without duplication
(x) all items which in accordance with GAAP would be included in determining
total liabilities as shown on the liability side of a balance sheet of such
Borrower as of the date on which Indebtedness is to be determined, (y) all
obligations of any other person or entity which such Borrower has guaranteed,
and (z) the Obligations.

         Section 4.25. Year 2000 Compliance.

                  (a) All devices, systems, machinery, information technology,
computer software and hardware, and other date sensitive technology
(collectively, the "Systems") necessary for Borrower to carry on its business as
currently conducted and as expected to be conducted in the future are Year 2000
Compliant. For purposes of these provisions, "Year 2000 Compliant" means that
such Systems are designed to be used before, during and after the Gregorian
calendar year 2000 A.D. and will operate during each such time period (including
without limitation such time period after 1999) without error related to date
data, specifically including any error relating to, or the product of, date data
that represents or refers to different centuries or more than one century.

                  (b) Borrower has: (i) undertaken a detailed inventory, review,
and assessment of all areas within its business and operations that could be
adversely affected by the failure of Borrower to be Year 2000 Compliant on a
timely basis; (ii) developed a detailed plan and time line for becoming Year
2000 Compliant on a timely basis; and (iii) to date, implemented that plan in
accordance with the timetable in all material respects.

                                    ARTICLE V

                        CLOSING AND CONDITIONS OF LENDING

         Section 5.1. Conditions Precedent to Agreement. The obligation of
Lender to enter into and perform this Agreement and to make Revolving Credit
Loans is subject to the following conditions precedent:

                  (a) Lender shall have received two (2) originals of this
Agreement, the Certificate of Validity, and all other Loan Documents required to
be executed and delivered at or before Closing (other than the Note, as to which
Lender shall receive only one original), executed by Borrower and any other
required Persons, as applicable.

                  (b) Lender shall have received all searches and good standing
certificates required by Section 3.5.

                  (c) Borrower shall have complied and shall then be in
compliance with all the terms, covenants and conditions of the Loan Documents.

<PAGE>

                  (d) There shall have occurred and be continuing no Event of
Default and no event which, with the giving of notice or the lapse of time, or
both, could constitute such an Event of Default.

                  (e) The representations and warranties contained in Article IV
shall be true and correct.

                  (f) Lender shall have received copies of all board of
directors resolutions, and other action taken by Borrower to authorize the
execution, delivery and performance of the Loan Documents and the borrowing of
the Loan under the Loan Documents, as well as the names and signatures of the
officers of Borrower authorized to execute documents on its behalf in connection
with the Loan, all as also certified as of the date of this Agreement by
Borrower's chief financial officer, or equivalent, and such other papers as
Lender may require.

                  (g) Lender shall have received copies, certified as true,
correct and complete by a corporate officer of each Borrower, of the
articles/certificate of incorporation of each Borrower, with any amendments to
any of the foregoing, certified by the Secretary of State of the state of each
such entity's incorporation, and all other documents necessary for performance
of the obligations of Borrower under this Agreement and the other Loan
Documents.

                  (h) Lender shall have received a written opinion of counsel
for Borrower, dated the date of this Agreement, substantially in the form of
Exhibit C.

                  (i) Lender shall have received such financial statements,
reports, certifications, and other operational information required to be
delivered under this Agreement, including without limitation an initial
borrowing base certificate calculating the Borrowing Base.

                  (j) Lender shall have received the Commitment Fee.

                  (k) The Lockbox, Lockbox Account and the Concentration Account
shall have been established.

                  (l) The Borrowing Base Certificate shall have been received
and approved by Lender.

                  (m) Lender shall have received an estoppel certificate
substantially in the form of Exhibit E from Borrower's landlord or sublandlord,
as the case may be, with respect to each of the facilities identified on
Schedule 4.15 (including without limitation the facility to be occupied as set
forth in such schedule), or has otherwise complied with Section 6.25 herein.

                  (n) Lender shall have received a certificate of Borrower's
chief financial officer, dated the Closing Date, certifying that all of the
conditions specified in this Section have been fulfilled.

         Section 5.2. Conditions Precedent to Advances. Notwithstanding any
other provision of this Agreement, no Loan proceeds, Revolving Credit Loans,
advances or other extensions of

<PAGE>

credit under the Loan shall be disbursed under this Agreement unless the
following conditions have been satisfied or waived immediately before such
disbursement:

                  (a) The representations and warranties on the part of Borrower
contained in Article IV of this Agreement shall be true and correct in all
respects at and as of the date of disbursement or advance, as though made on and
as of such date (except to the extent that such representations and warranties
expressly relate solely to an earlier date and except that the references in
Section 4.7 to financial statements shall be deemed to be a reference to the
then most recent annual and interim financial statements of Borrower furnished
to Lender pursuant to Section 6.1).

                  (b) No Event of Default or event which, with the giving of
notice of the lapse of time, or both, could become an Event of Default shall
have occurred and be continuing or would result from the making of the
disbursement or advance.

                  (c) No Material Adverse Change in Financial Condition and no
material adverse change in the condition (financial or otherwise), properties,
business, or operations of Borrower shall have occurred and be continuing with
respect to Borrower since the date of this Agreement.

         Section 5.3. Closing. Subject to the conditions of this Article V, the
Loan shall be made available on the date as is mutually agreed by the parties
(the "Closing Date") at such time as may be mutually agreeable to the parties
upon the execution of this Agreement (the "Closing") at such place as may be
requested by Lender.

         Section 5.4. Waiver of Rights. By completing the Closing under this
Agreement, or by making advances under the Loan, Lender does not waive a breach
of any representation or warranty of Borrower under this Agreement or under any
other Loan Document, and all of Lender's claims and rights resulting from any
breach or misrepresentation by Borrower are specifically reserved by Lender.

                                   ARTICLE VI

                              AFFIRMATIVE COVENANTS

         Each entity comprising Borrower covenants and agrees that for so long
as Borrower may borrow under this Agreement and until payment in full of the
Note and performance of all other obligations of Borrower under the Loan
Documents:

         Section 6.1. Financial Statements and Collateral Reports. Borrower will
furnish to Lender (i) a sales and collections report and accounts receivable
aging schedule on a form acceptable to Lender within fifteen (15) days after the
end of each calendar month, which shall include, but not be limited to, a report
of sales, credits issued, and collections received; (ii) payables aging
schedules within fifteen (15) days after the end of each calendar month; (iii)
internally prepared quarterly financial statements for Borrower, certified by
the chief financial

<PAGE>

officer of Borrower, within forty-five (45) days of the end of each fiscal
quarter, accompanied by management analysis and actual vs. budget variance
reports; (iv) to the extent prepared by Borrower, annual projections, profit and
loss statements, balance sheets, and cash flow reports (prepared on a monthly
basis) for the succeeding fiscal year within thirty (30) days before the end of
each of Borrower's fiscal years; (v) internally prepared annual financial
statements for Borrower within sixty (60) days after the end of each of
Borrower's fiscal years; (vi) annual audited financial statements for Borrower
prepared by Kaufman Rossin & Co., Inc., or another firm of independent public
accountants satisfactory to Lender, within one hundred thirty-five (135) days
after the end of each of Borrower's fiscal years; (vii) promptly upon receipt
thereof, copies of any reports submitted to Borrower by the independent
accountants in connection with any interim audit of the books of Borrower and
copies of each management control letter provided to Borrower by independent
accountants; (viii) as soon as available, copies of all financial statements and
notices provided by Borrower to all of its stockholders; and (ix) such
additional information, reports or statements as Lender may from time to time
request. Annual financial statements shall set forth in comparative form figures
for the corresponding periods in the prior fiscal year. All financial statements
shall include a balance sheet and statement of earnings and shall be prepared in
accordance with GAAP.

         Section 6.2. Payments Under this Agreement. Borrower will make all
payments of principal, interest, fees, and all other payments required under
this Agreement and under the Loan, and under any other agreements with Lender to
which Borrower is a party, as and when due.

         Section 6.3. Existence, Good Standing, and Compliance with Laws.
Borrower will do or cause to be done all things necessary (i) to obtain and keep
in full force and effect all corporate existence, rights, licenses, privileges,
and franchises of Borrower necessary to the ownership of its property or the
conduct of its business, and comply with all applicable current and future laws,
ordinances, rules, regulations, orders and decrees of any Governmental Authority
having or claiming jurisdiction over Borrower; and (ii) to maintain and protect
the properties used or useful in the conduct of the operations of Borrower, in a
prudent manner, including without limitation the maintenance at all times of
such insurance upon its insurable property and operations as required by law or
by Section 6.7.

         Section 6.4. Legality. The making of the Loan and each disbursement or
advance under the Loan shall not be subject to any penalty or special tax, shall
not be prohibited by any governmental order or regulation applicable to
Borrower, and shall not violate any rule or regulation of any Governmental
Authority, and necessary consents, approvals and authorizations of any
Governmental Authority to or of any such disbursement or advance shall have been
obtained.

         Section 6.5. Lender's Satisfaction. All instruments and legal documents
and proceedings in connection with the transactions contemplated by this
Agreement shall be satisfactory in form and substance to Lender and its counsel,
and Lender shall have received all documents, including records of corporate
proceedings and opinions of counsel, which Lender may have requested in
connection therewith.

<PAGE>

         Section 6.6. Taxes and Charges. Borrower will timely file all tax
reports and pay and discharge all taxes, assessments and governmental charges or
levies imposed upon Borrower, or its income or profits or upon its properties or
any part thereof, before the same shall be in default and before the date on
which penalties attach thereto, as well as all lawful claims for labor,
material, supplies or otherwise which, if unpaid, might become a lien or charge
upon the properties or any part thereof of Borrower; provided, however, that
Borrower shall not be required to pay and discharge or cause to be paid and
discharged any such tax, assessment, charge, levy or claim so long as the
validity or amount thereof shall be contested in good faith and by appropriate
proceedings by Borrower, and Borrower shall have set aside on their books
adequate reserve therefor; and provided further, that such deferment of payment
is permissible only so long as Borrower's title to, and its right to use, the
Collateral is not adversely affected thereby and Lender's lien and priority on
the Collateral are not adversely affected, altered or impaired thereby.

         Section 6.7. Insurance. Borrower will carry adequate public liability
and professional liability insurance with responsible companies reasonably
satisfactory to Lender in such amounts and against such risks as is customarily
maintained by similar businesses and by owners of similar property in the same
general area.

         Section 6.8. General Information. Borrower will furnish to Lender such
information as Lender may, from time to time, request with respect to the
business or financial affairs of Borrower, and permit any officer, employee or
agent of Lender to visit and inspect any of the properties, to examine the
minute books, books of account and other records, including management letters
prepared by Borrower's auditors, of Borrower, and make copies thereof or
extracts therefrom, and to discuss its and their business affairs, finances and
accounts with, and be advised as to the same by, the accountants and officers of
Borrower, all at such times and as often as Lender may reasonably require.

         Section 6.9. Maintenance of Property. Borrower will maintain, keep and
preserve all of its properties in reasonably good repair, working order and
condition and from time to time make all necessary repairs, renewals,
replacements, betterments and improvements thereto, so that the business carried
on in connection therewith may be conducted at all times; provided, however, in
the event that any Force Majure occurs, Borrower shall have ninety (90) days to
comply with this Section 6.9.

         Section 6.10. Notification of Events of Default and Adverse
Developments. Borrower promptly will notify Lender upon the occurrence of: (i)
any Event of Default; (ii) any event which, with the giving of notice or lapse
of time, or both, could constitute an Event of Default; (iii) any event,
development or circumstance whereby the financial statements previously
furnished to Lender fail in any material respect to present fairly, in
accordance with GAAP, the financial condition and operational results of
Borrower; (iv) any judicial, administrative or arbitration proceeding pending
against Borrower, and any judicial or administrative proceeding known by
Borrower to be threatened against it which, if adversely decided, could
adversely affect its condition (financial or otherwise) or operations (current
or prospective) or which may expose Borrower to uninsured liability of
$25,000.00 or more; (v) any

<PAGE>

default claimed by any other creditor for Borrowed Money of Borrower other than
Lender; and (vi) any other development in the business or affairs of Borrower
which may be adverse (which development individually or in the aggregate has a
Material Adverse Effect on the business or affairs of Borrower); in each case
describing the nature of the event or development. In the case of notification
under clauses (i) and (ii)), Borrower should set forth the action Borrower
proposes to take with respect to such event.

         Section 6.11. Employee Benefit Plans. Borrower will (i) comply with the
funding requirements of ERISA with respect to the Plans for its employees, or
will promptly satisfy any accumulated funding deficiency that arises under
Section 302 of ERISA; (ii) furnish Lender, promptly after filing the same, with
copies of all reports or other statements filed with the United States
Department of Labor, the Pension Benefit Guaranty Corporation, or the Internal
Revenue Service with respect to all Plans, or which Borrower, or any member of a
Controlled Group, may receive from such Governmental Authority with respect to
any such Plans, and (iii) promptly advise Lender of the occurrence of any
Reportable Event or Prohibited Transaction with respect to any such Plan and the
action which Borrower proposes to take with respect thereto. Borrower will make
all contributions when due with respect to any multi-employer pension plan in
which it participates and will promptly advise Lender: (x) upon its receipt of
notice of the assertion against Borrower of a claim for withdrawal liability;
(y) upon the occurrence of any event which could trigger the assertion of a
claim for withdrawal liability against Borrower; and (z) upon the occurrence of
any event which would place Borrower in a Controlled Group as a result of which
any member (including Borrower) thereof may be subject to a claim for withdrawal
liability, whether liquidated or contingent.

         Section 6.12. Financing Statements. Borrower shall provide to Lender
evidence satisfactory to Lender as to the due recording of termination
statements, releases of collateral, and Forms UCC-3, and shall cause to be
recorded financing statements on Form UCC-1, duly executed by Borrower and
Lender, in all places necessary to release all existing security interests and
other liens in the Collateral (other than as permitted by this Agreement) and to
perfect and protect Lender's first priority lien and security interest in the
Collateral, as Lender may request.

         Section 6.13. Financial Records. Borrower shall keep current and
accurate books of records and accounts in which full and correct entries will be
made of all of its business transactions, and will reflect in its financial
statements adequate accruals and appropriations to reserves, all in accordance
with GAAP.

         Section 6.14. Collection of Accounts. Borrower shall continue to
collect its Accounts in the ordinary course of business.

         Section 6.15. Places of Business. Borrower shall give thirty (30) days'
prior written notice to Lender of any change in the location of any of its
places of business, of the places where its records concerning its Accounts are
kept, of the places where the Collateral is kept, or of the establishment of any
new, or the discontinuance of any existing, places of business.

         Section 6.16. Business Conducted. Borrower shall continue in the
business currently conducted by it using its best efforts to maintain its
customers and goodwill. Borrower shall not

<PAGE>

engage, directly or indirectly, in any line of business substantially different
from the business conducted by it immediately before the Closing Date, or engage
in business or lines of business which are not reasonably related thereto.

         Section 6.17. Litigation and Other Proceedings. Borrower shall give
prompt notice to Lender of any litigation, arbitration, or other proceeding
before any Governmental Authority against or affecting Borrower if the amount
claimed is more than $25,000.00.

         Section 6.18. Bank Accounts. Borrower shall assign to Lender all of its
depository and disbursement accounts into which collections of Accounts are
deposited.

         Section 6.19. Submission of Collateral Documents. Borrower will, on
demand of Lender, make available to Lender copies of proof of the satisfactory
performance of services that gave rise to an Account, a copy of the claim or
invoice for each Account and copies of any written contract or order from which
the Account arose. Borrower shall promptly notify Lender if an Account becomes
evidenced or secured by an instrument or chattel paper and upon request of
Lender, will promptly deliver any such instrument or chattel paper to Lender.

         Section 6.20. Licensure. Borrower will maintain all provider numbers
and licenses (except to the extent that the lack of obtaining such license,
individually or in the aggregate, would not have a Material Adverse Effect on
the Borrower) necessary to conduct its business as currently conducted , and
take any steps required to comply with any such new or additional requirements
that may be imposed on it.

         Section 6.21. Officer's Certificates. Together with the monthly
financial statements delivered pursuant to clause (iii) of Section 6.1, and
together with the audited annual financial statements delivered pursuant to
clause (vi) of that Section, Borrower shall deliver to Lender a certificate of
its chief financial officer, in form and substance satisfactory to Lender:

                  (a) Setting forth the information (including detailed
calculations) required to establish whether Borrower is in compliance with the
requirements of Articles VI and VII as of the end of the period covered by the
financial statements then being furnished; and

                  (b) Stating that the signer has reviewed the relevant terms of
this Agreement, and has made (or caused to be made under his supervision) a
review of the transactions and conditions of Borrower from the beginning of the
accounting period covered by the income statements being delivered to the date
of the certificate, and that such review has not disclosed the existence during
such period of any condition or event which constitutes an Event of Default or
which is then, or with the passage of time or giving of notice or both, could
become an Event of Default, and if any such condition or event existed during
such period or now exists, specifying the nature and period of existence thereof
and what action Borrower has taken or proposes to take with respect thereto.

         Section 6.22. Visits and Inspections. Borrower agrees to permit
representatives of Lender, from time to time, as often as may be reasonably
requested, but only during normal business hours, to visit and inspect the
properties of Borrower, and to inspect, audit and make

<PAGE>

extracts from its books and records, and discuss with its officers, its
employees and its independent accountants, Borrower's business, assets,
liabilities, financial condition, business prospects and results of operations.

         Section 6.23. Net Worth. Borrower will not at any time allow its net
worth, as computed in accordance with GAAP, to fall below $400,000.

         Section 6.24 Termination/Modification/Default of Customer Contracts.
Borrower will notify Lender of any modification or termination of any of
Borrower's customer contracts (other than expiration of such contract upon the
conclusion of the drug trials thereunder and excluding any customer contract
with aggregate receivables of less than $75,000) as soon as possible but not
later than the earlier of (i) the subsequent borrowing under this Loan Agreement
or (ii) six (6) days after any notice of termination or modification thereunder.
Borrower will notify Lender immediately upon receiving any such modification or
receiving any written notice of default that would give rise to a termination or
receiving any notice of overpayment under any customer contract(other than in
any customer contract with aggregate receivables of less than $75,000).
Notwithstanding anything in this Section 6.24 to the contrary, no provision in
this Section 6.24 will modify, reduce or otherwise affect Lender's rights
hereunder or under any other Loan Document.

         Section 6.25. Landlord Estoppels. Borrower shall provide the landlord
estoppel certificate for the new facility at North Miami City Center, Biscayne
Boulevard and NE 126th Street, North Miami, Florida required pursuant to Section
5.1(m) as soon as possible after the date hereof but not later than the earlier
of (i) July 1, 2000 and (ii) the date on which Borrower occupies such facility;
provided, however, if Borrower has not delivered such certificate on or before
such date, Borrower shall pay a non-compliance fee equal to $10,000.00 per week
thereafter. Borrower shall only be required to provide a landlord estoppel
certificate in respect of the facility at 11190 Biscayne Boulevard, Miami,
Florida 33131 in the event that Borrower continues to occupy such facility on or
after July 1, 2000. In the event Borrower occupies such current facility on or
after July 1, 2000 and does not provide a landlord estoppel certificate in
respect of such facility, Borrower must pay an additional non-compliance fee
equal to $10,000 per week thereafter (beginning July 2, 2000).

                                   ARTICLE VII

                               NEGATIVE COVENANTS

         Each entity comprising Borrower covenants and agrees that so long as
Borrower may borrow under this Agreement and until payment in full of the Note
and performance of all other obligations of Borrower under the Loan Documents:

         Section 7.1. Borrowing. Borrower will not create, incur, assume or
suffer to exist any liability for Borrowed Money except: (i) indebtedness to
Lender; (ii) indebtedness of Borrower secured by mortgages, encumbrances or
liens expressly permitted by Section 7.3; (iii) accounts payable to trade
creditors and current operating expenses (other than for borrowed money) which

<PAGE>

are not aged more than one hundred twenty (120) days from the billing date or
more than sixty (60) days from the due date, 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
Borrower shall have set aside such reserves, if any, with respect thereto as are
required by GAAP and deemed adequate by Borrower and its independent
accountants; and (iv) borrowings incurred in the ordinary course of its business
and not exceeding $10,000.00 in the aggregate outstanding at any one time.
Borrower will not make prepayments on any existing or future indebtedness for
Borrowed Money to any Person (other than Lender, to the extent permitted by this
Agreement or any subsequent agreement between Borrower and Lender).

         Section 7.2. Joint Ventures. Borrower will not invest directly or
indirectly in any joint venture for any purpose without the prior written notice
to, and the prior written consent of, Lender, which consent shall not be
unreasonably withheld.

         Section 7.3. Liens and Encumbrances. Borrower will not create, incur,
assume or suffer to exist any mortgage, pledge, lien or other encumbrance of any
kind (including the charge upon property purchased under a conditional sale or
other title retention agreement) upon, or any security interest in, any of its
Collateral, whether now owned or hereafter acquired, except for Permitted Liens.

         Section 7.4. Restriction on Fundamental Changes; No Change in Operation
or Control. Except as set forth on Schedule 7.4 and except as specifically
approved by Lender in writing, Borrower will not: (i) enter into any transaction
of merger or consolidation; (ii) liquidate, wind-up or dissolve itself (or
suffer any liquidation or dissolution); (iii) convey, sell, lease, sublease,
transfer or otherwise dispose of, in one transaction or a series of
transactions, any of its assets, or the capital stock of any subsidiary of
Borrower, whether now owned or hereafter acquired; or (iv) acquire by purchase
or otherwise all or any substantial part of the business or assets of, or stock
or other evidence of beneficial ownership of, any Person. Borrower agrees that
compliance with this Section 7.4 is a material inducement to Lender's advancing
credit under this Agreement and Borrower further agrees that any breach of the
terms of this Section 7.4 shall constitute fraud. Borrower further agrees that
in addition to all other remedies available to Lender, Lender shall be entitled
to specific enforcement of the covenants in this Section 7.4, including
injunctive relief.

         Section 7.5. Sale and Leaseback. Borrower will not, directly or
indirectly, enter into any arrangement whereby Borrower sells or transfers all
or any part of its assets and thereupon and within one year thereafter rents or
leases the assets so sold or transferred without prior written notice to and the
prior written consent of Lender, which consent shall not be unreasonably
withheld.

         Section 7.6. Dividends, Distributions and Management Fees. Upon notice
from Lender to Borrower of the existence of an Event of Default under this
Agreement, Borrower will not declare or pay any dividends or other distributions
with respect to, purchase, redeem or otherwise acquire for value any of its
outstanding stock now or hereafter outstanding, or return

<PAGE>

any capital of its stockholders, nor shall Borrower pay management fees or fees
of a similar nature to any Person.

         Section 7.7. Loans. Borrower will not make loans or advances to any
Person, other than (i) trade credit extended in the ordinary course of its
business, and (ii) advances for business travel and similar temporary advances
made in the ordinary course of business to officers, stockholders, directors,
and employees.

         Section 7.8. Contingent Liabilities. Borrower will not assume,
guarantee, endorse, contingently agree to purchase or otherwise become liable
upon the obligation of any Person, except by the endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business.

         Section 7.9. Subsidiaries. Borrower will not form any subsidiary, or
make any investment in or any loan in the nature of an investment to, any other
Person (except as set forth on Schedule 7.4 and except as specifically approved
by Lender in writing).

         Section 7.10. Compliance with ERISA. Borrower will not permit with
respect to any Plan covered by Title IV of ERISA any Prohibited Transaction or
any Reportable Event.

         Section 7.11. Licenses. Borrower will not amend, alter or suspend or
terminate or make provisional in any material way, any license (including
without limitations any certificates of need) or provider number without the
prior written consent of Lender, which consent shall not be unreasonably
withheld.

         Section 7.12. Transactions with Affiliates. Borrower will not enter
into any transaction, including without limitation the purchase, sale, or
exchange of property, or the loaning or giving of funds to any Affiliate or
subsidiary, except in the ordinary course of business and pursuant to the
reasonable requirements of Borrower's business and upon terms substantially the
same and no less favorable to Borrower as it would obtain in a comparable arm's
length transaction with any Person not an Affiliate or subsidiary, and so long
as the transaction is not otherwise prohibited under this Agreement. For
purposes of the foregoing, Lender consents to the transactions described on
Schedule 7.12.

         Section 7.13. Use of Lender's Name. Borrower will not use Lender's name
(or the name of any of Lender's affiliates) in connection with any of its
business operations. Borrower may disclose to third parties that Borrower has a
borrowing relationship with Lender. Nothing contained in this Agreement is
intended to permit or authorize Borrower to make any contract on behalf of
Lender.

         Section 7.14. Change in Capital Structure. Except as set forth on
Schedule 7.14, there shall occur no change in the ownership of Borrower's
capital stock or in Borrower's capital structure, both as set forth in Schedule
4.17.

<PAGE>

         Section 7.15. Contracts and Agreements. Borrower will not become or be
a party to any contract or agreement which would breach this Agreement, or
breach any other instrument, agreement, or document to which Borrower is a party
or by which it is or may be bound.

         Section 7.16. Margin Stock. Borrower will not carry or purchase any
"margin security" within the meaning of Regulations U, T or X of the Board of
Governors of the Federal Reserve System (except as otherwise approved by Lender,
such approval not to be unreasonably withheld).

         Section 7.17. Truth of Statements and Certificates. Borrower will not
furnish to Lender any certificate or other document 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.

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

         Section 8.1. Events of Default. Each of the following (individually, an
"Event of Default" and collectively, the "Events of Default") shall constitute
an event of default under this Agreement:

                  (a) A default in the payment of any installment of principal
of, or interest upon, the Note when due and payable, whether at maturity or
otherwise, or any breach of Section 2.3, which default or breach, as applicable,
shall have continued unremedied for a period of seven (7) days after written
notice of the default or breach from Lender to Borrower;

                  (b) A default in the payment of any other charges, fees, or
other monetary obligations owing to Lender arising out of or incurred in
connection with this Agreement when such payment is due and payable, which
default shall have continued unremedied for a period of seven (7) days after
written notice of the default from Lender to Borrower;

                  (c) A default in the due observance or performance by Borrower
of any other term, covenant or agreement contained in any of the Loan Documents,
which default shall have continued unremedied for a period of ten (10) days
after written notice of the default from Lender to Borrower;

                  (d) Any representation or warranty made by Borrower in this
Agreement or in any of the other Loan Documents, any financial statement, or any
statement or representation made in any other certificate, report or opinion
delivered in connection with this Agreement or the other Loan Documents proves
to have been incorrect or misleading in any material respect when made, which
default shall have continued unremedied for a period of ten (10) days after
written notice of the default from Lender to Borrower;

<PAGE>

                  (e) Any obligation of Borrower (other than its Obligations
under this Agreement) for the payment of Borrowed Money is not paid when due or
within any applicable grace period, or such obligation becomes or is declared to
be due and payable before the expressed maturity of the obligation, or there
shall have occurred 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;

                  (f) Borrower makes an assignment for the benefit of creditors,
offers a composition or extension to creditors, or makes or sends notice of an
intended bulk sale of any business or assets now or hereafter conducted by
Borrower;

                  (g) (i) Borrower files a petition in bankruptcy, (ii) Borrower
is adjudicated insolvent or bankrupt, petitions or applies to any tribunal for
any receiver of or any trustee for itself or any substantial part of its
property, (iii) Borrower commences any proceeding relating to itself under any
reorganization, arrangement, readjustment or debt, dissolution or liquidation
law or statute of any jurisdiction, whether now or hereafter in effect, (iv) any
such proceeding is commenced against Borrower and such proceeding remains
undismissed for a period of sixty (60) days, (v) Borrower by any act indicates
its consent to, approval of, or acquiescence in, any such proceeding or the
appointment of any receiver of or any trustee for a Borrower or any substantial
part of its property, or suffers any such receivership or trusteeship to
continue undischarged for a period of sixty (60) days;

                  (h) One or more final judgments against Borrower or
attachments against its property not fully and unconditionally covered by
insurance shall be rendered by a court of record unless paid, stayed on appeal,
discharged, bonded or dismissed within ten (10) days thereof;

                  (i) A Reportable Event which might constitute grounds for
termination of any Plan covered by Title IV of ERISA or for the appointment by
the appropriate United States District Court of a trustee to administer any such
Plan or for the entry of a lien or encumbrance to secure any deficiency, has
occurred and is continuing thirty (30) days after its occurrence, or any such
Plan is terminated, or a trustee is appointed by an appropriate United States
District Court to administer any such Plan, or the Pension Benefit Guaranty
Corporation institutes proceedings to terminate any such Plan or to appoint a
trustee to administer any such Plan, or a lien or encumbrance is entered to
secure any deficiency or claim;

                  (j) Any outstanding stock of Borrower is sold or otherwise
transferred by the Person owning such stock on the date of this Agreement
(except as otherwise set forth on Schedule 7.14 and except as otherwise approved
by Lender in writing (such approval not to be unreasonably withheld));

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

<PAGE>

                  (l) Borrower breaches or violates the terms of, or a default
or an event which could, whether with notice or the passage of time, or both,
constitute a default, occurs under any other existing or future agreement
(related or unrelated) between Borrower and Lender;

                  (m) Upon the issuance of any execution or distraint process
against Borrower or any of its property or assets (unless vacated within seven
(7) days thereof);

                  (n) Borrower ceases any material portion of its business
operations as currently conducted;

                  (o) Any indication or evidence is received by Lender that
Borrower may have directly or indirectly been engaged in any type of activity
which, in Lender's discretion, may result in the forfeiture of any property of
Borrower to any Governmental Authority, which default shall have continued
unremedied for a period of ten (10) days after written notice from Lender;

                  (p) Borrower or any Affiliate of Borrower, shall challenge or
contest, in any action, suit or proceeding, the validity or enforceability of
this Agreement, or any of the other Loan Documents, the legality or the
enforceability of any of the Obligations or the perfection or priority of any
Lien granted to Lender;

                  (q) Borrower shall be criminally indicted or convicted under
any law that could lead to a forfeiture of any Collateral; or

                  (r) There shall occur a Material Adverse Change in Financial
Condition or any material change in the business prospects of Borrower, or if
Lender in good faith deems itself insecure as a result of acts or events bearing
upon the financial condition of Borrower or the repayment of the Note, which
default shall have continued unremedied for a period of ten (10) days after
written notice from Lender.

         Section 8.2. Acceleration. Upon the occurrence of any of the foregoing
Events of Default, the Note shall become and be immediately due and payable upon
declaration to that effect delivered by Lender to Borrower; provided that, upon
the happening of any event specified in Section 8.1(g), the Note shall be
immediately due and payable without declaration or other notice to Borrower.

         Section 8.3.  Remedies.

                  (a) Upon the occurrence of and during the continuance of an
Event of Default under this Agreement or the other Loan Documents, Lender, in
addition to all other rights, options, and remedies granted to Lender under this
Agreement or at law or in equity, may take any of the following steps (which
list is given by way of example and is not intended to be an exhaustive list of
all such rights and remedies):

<PAGE>

                           (i) Terminate the Loan, whereupon all outstanding
Obligations (including payment of the applicable Minimum Termination Fee) shall
be immediately due and payable;

                           (ii) Exercise all other rights granted to it under
this Agreement and all rights under the UCC in effect in the applicable
jurisdiction(s) and under any other applicable law; and

                           (iii) Exercise all rights and remedies under all Loan
Documents now or hereafter in effect, including but not limited to:

                                    (A) The right to take possession of, send
notices regarding, and collect directly the Collateral, with or without judicial
process;

                                    (B) The right to (by its own means or with
judicial assistance) enter any of Borrower's premises and take possession of the
Collateral, or dispose of the Collateral on such premises in compliance with
subsection (C) below, without any liability for rent, storage, utilities, or
other sums, and Borrower shall not resist or interfere with such action;

                                    (C) The right to require Borrower at
Borrower's expense to assemble all or any part of the Collateral and make it
available to Lender at any place designated by Lender; and

                                    (D) The right to reduce the Maximum Loan
Amount or to use the Collateral and/or funds in the Lockbox Account or the
Concentration Account in amounts up to the Maximum Loan Amount for any reason.

                  (b) Borrower agrees that a notice received by it at least five
(5) days before the time of any intended public sale, or the time after which
any private sale or other disposition of the 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 Borrower. At any sale or disposition of
Collateral, Lender may (to the extent permitted by applicable law) purchase all
or any part of the Collateral, free from any right of redemption by Borrower,
which right is hereby waived and released. Borrower covenants and agrees not to
interfere with or impose any obstacle to Lender's exercise of its rights and
remedies with respect to the Collateral.

         Section 8.4. Nature of Remedies. Lender shall have the right to proceed
against all or any portion of the Collateral to satisfy the liabilities and
Obligations of Borrower to Lender in any order. All rights and remedies granted
Lender under this Agreement and under any agreement referred to in this
Agreement, or otherwise available at law or in equity, shall be deemed
concurrent and cumulative, and not alternative remedies, and Lender may proceed
with any number of remedies at the same time until the Loans, and all other
existing and future liabilities and obligations of Borrower to Lender, are
satisfied in full. The exercise of any one right or remedy shall not be deemed a
waiver or release of any other right or remedy, and

<PAGE>

Lender, upon the occurrence of an Event of Default, may proceed against
Borrower, and/or the Collateral, at any time, under any agreement, with any
available remedy and in any order.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.1.  Expenses and Taxes.

                  (a) Borrower agrees to pay, whether or not the Closing occurs,
a reasonable documentation preparation fee, together with actual audit fees and
all other out-of-pocket charges and expenses incurred by Lender in connection
with the negotiation, preparation, legal review and execution of each of the
Loan Documents, including but not limited to UCC and judgment lien searches and
UCC filings and fees for post-Closing UCC and judgment lien searches; provided,
however, that the professional (i.e. legal and audit) fees shall be limited to
$13,130 plus all out-of-pocket charges and expenses. In addition, Borrower shall
pay all such fees associated with any amendments to the Loan Documents following
Closing.

                  (b) Borrower also agrees to pay all out-of-pocket charges and
expenses incurred by Lender (including the fees and expenses of Lender's
counsel) in connection with the enforcement, protection or preservation of any
right or claim of Lender, the termination of this Agreement, the termination of
any liens of Lender on the Collateral, and the collection of any amounts due
under the Loan Documents. If Lender uses in-house counsel for any of these
purposes (i.e., for any task in connection with the enforcement, protection or
preservation of any right or claim of Lender and the collection of any amounts
due under its Loan Documents), Borrower further agrees that its Obligations
under the Loan Documents include reasonable charges for such work commensurate
with the fees that would otherwise be charged by outside legal counsel selected
by Lender for the work performed.

                  (c) Borrower shall pay all taxes (other than taxes based upon
or measured by Lender's income or revenues or any personal property tax), if
any, in connection with the issuance of the Note and the recording of the
security documents therefor. The obligations of Borrower under this clause (c)
shall survive the payment of Borrower's indebtedness under this Agreement and
the termination of this Agreement.

         Section 9.2. Entire Agreement; Amendments. This Agreement and the other
Loan Documents constitute the full and entire understanding and agreement among
the parties with regard to their subject matter and supersede all prior written
or oral agreements, understandings, representations and warranties made with
respect thereto. No amendment, supplement or modification of this Agreement nor
any waiver of any provision thereof shall be made except in writing executed by
the party against whom enforcement is sought.

         Section 9.3. No Waiver; Cumulative Rights. No waiver by any party to
this Agreement of any one or more defaults by the other party in the performance
of any of the provisions of this Agreement shall operate or be construed as a
waiver of any future default or

<PAGE>

defaults, whether of a like or different nature. No failure or delay on the part
of any party in exercising any right, power or remedy under this Agreement shall
operate as a waiver of such right, power or remedy nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise of such right, power or remedy or the exercise of any other
right, power or remedy. The remedies provided for in this Agreement are
cumulative and are not exclusive of any remedies that may be available to any
party to this Agreement at law, in equity or otherwise.

         Section 9.4. Notices. Any notice or other communication required or
permitted under this Agreement shall be in writing and personally delivered,
mailed by registered or certified mail (return receipt requested and postage
prepaid), sent by telecopier (with a confirming copy sent by regular mail), or
sent by prepaid overnight courier service, and addressed to the relevant party
at its address set forth below, or at such other address as such party may, by
written notice, designate as its address for purposes of notice under this
Agreement:

                  (a)      If to Lender, at:

                           Heller Healthcare Finance, Inc.
                           2 Wisconsin Circle, 4th Floor
                           Chevy Chase, Maryland 20815
                           Attention: Steven M. Curwin, Deputy General Counsel
                           Telephone: (301) 961-1640
                           Telecopier: (301) 664-9866

                  (b)      If to Borrower, at:

                           SFBC International, Inc.
                           11190 Biscayne Boulevard
                           North Miami, Florida  33181
                           Attention: Arnold Hantman
                           Telephone: (305) 895-0304
                           Telecopier: (305) 895-8616

If mailed, notice shall be deemed to be given five (5) days after being sent,
and if sent by personal delivery, telecopier or prepaid courier, notice shall be
deemed to be given when delivered.

         Section 9.5. Severability. If any term, covenant or condition of this
Agreement, or the application of such term, covenant or condition to any party
or circumstance shall be found by a court of competent jurisdiction to be, to
any extent, invalid or unenforceable, the remainder of this Agreement and the
application of such term, covenant, or condition to parties or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each term, covenant or condition shall be valid and
enforced to the fullest extent permitted by law. Upon determination that any
such term is invalid, illegal or unenforceable, Lender may, but is not obligated
to, advance funds to Borrower under this

<PAGE>

Agreement until the parties to this Agreement amend this Agreement so as to
effect the original intent of the parties as closely as possible in a valid and
enforceable manner.

         Section 9.6. Successors and Assigns. This Agreement, the Note, and the
other Loan Documents shall be binding upon and inure to the benefit of Borrower
and Lender and their respective successors and assigns. Notwithstanding the
foregoing, Borrower may not assign any of its rights or delegate any of its
obligations under this Agreement without the prior written consent of Lender,
which may be withheld in its sole discretion. Lender may sell, assign, transfer,
or participate any or all of its rights or obligations under this Agreement
without notice to or consent of Borrower.

         Section 9.7. Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one instrument.

         Section 9.8. Interpretation. No provision of this Agreement or any
other Loan Document shall be interpreted or construed against any party because
that party or its legal representative drafted that provision. The titles of the
paragraphs of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement. Any pronoun used in this
Agreement shall be deemed to include singular and plural and masculine, feminine
and neuter gender as the case may be. The words "herein," "hereof," and
"hereunder" shall be deemed to refer to this entire Agreement, except as the
context otherwise requires.

         Section 9.9. Survival of Terms. All covenants, agreements,
representations and warranties made in this Agreement, any other Loan Document,
and in any certificates and other instruments delivered in connection with this
Agreement shall be considered to have been relied upon by Lender and shall
survive the making by Lender of the Loans contemplated by this Agreement and the
execution and delivery to Lender of the Note, and shall continue in full force
and effect until all liabilities and obligations of Borrower to Lender are
satisfied in full.

         Section 9.10. Release of Lender. For and in consideration of the Loan,
Borrower, voluntarily, knowingly, unconditionally, and irrevocably, with
specific and express intent, for and on behalf of itself and its agents,
attorneys, heirs, successors, and assigns (collectively the "Releasing Parties")
does hereby fully and completely release, acquit and forever discharge Lender,
and its successors, assigns, heirs, affiliates, subsidiaries, parent companies,
principals, directors, officers, employees, shareholders and agents (hereinafter
called the "Lender Parties"); and any other person, firm, business, corporation,
insurer, or association which may be responsible or liable for the acts or
omissions of the Lender Parties, or who may be liable for the injury or damage
resulting therefrom (collectively the {"Released Parties"), of and from any and
all actions, causes of action, suits, debts, disputes, damages, claims,
obligations, liabilities, costs, expenses and demands of any kind whatsoever, at
law or in equity, whether matured or unmatured, liquidated or unliquidated,
vested or contingent, choate or inchoate, known or unknown that the Releasing
Parties (or any of them) now have (whether directly or indirectly) against the
Released Parties or any of them. The Borrower acknowledges that the foregoing
release is a material inducement to Lender's decision to extend to Borrower the
financial accommodations hereunder and has been relied upon by Lender in
agreeing to make the Loan.

<PAGE>

         Section 9.11. Time. Whenever Borrower is required to make any payment
or perform any act on a Saturday, Sunday, or a legal holiday under the laws of
the State of Maryland (or other jurisdiction where Borrower is required to make
the payment or perform the act), the payment may be made or the act performed on
the next Business Day. Time is of the essence in Borrower's performance under
this Agreement and all other Loan Documents.

         Section 9.12. Commissions. The transaction contemplated by this
Agreement was brought about by Lender and Borrower acting as principals and
without any brokers, agents, or finders being the effective procuring cause.
Borrower represents that it has not committed Lender to the payment of any
brokerage fee, commission, or charge in connection with this transaction. If any
such claim is made on Lender by any broker, finder, or agent or other person,
Borrower will indemnify, defend, and hold Lender harmless from and against the
claim and will defend any action to recover on that claim, at Borrower's cost
and expense, including Lender's counsel fees. Borrower further agrees that until
any such claim or demand is adjudicated in Lender's favor, the amount demanded
will be deemed a liability of Borrower under this Agreement, secured by the
Collateral.

         Section 9.13. Third Parties. No rights are intended to be created under
this Agreement or under any other Loan Document for the benefit of any third
party donee, creditor, or incidental beneficiary of Borrower. Nothing contained
in this Agreement shall be construed as a delegation to Lender of Borrower's
duty of performance, including without limitation Borrower's duties under any
account or contract in which Lender has a security interest.

         Section 9.14. Discharge of Borrower's Obligations. Lender, in its sole
discretion, shall have the right at any time, and from time to time, without
prior notice to Borrower if Borrower fails to do so, to: (i) obtain insurance
covering any of the Collateral as required under this Agreement; (ii) pay for
the performance of any of Borrower's obligations under this Agreement; (iii)
discharge taxes, liens, security interests, or other encumbrances at any time
levied or placed on any of the Collateral in violation of this Agreement unless
Borrower is in good faith with due diligence by appropriate proceedings
contesting those items; and (iv) pay for the maintenance and preservation of any
of the Collateral. Expenses and advances shall be added to the Loan, until
reimbursed to Lender and shall be secured by the Collateral. Any such payments
and advances by Lender shall not be construed as a waiver by Lender of an Event
of Default.

         Section 9.15. Information to Participants. Lender may divulge to any
participant it may obtain in the Loan, or any portion of the Loan, all
information, and furnish to such participant copies of reports, financial
statements, certificates, and documents obtained under any provision of this
Agreement or any other Loan Document.

         Section 9.16. Indemnity. Borrower hereby agrees to indemnify and hold
harmless Lender, its partners, officers, agents and employees (collectively,
"Indemnitee") from and against any liability, loss, cost, expense, claim,
damage, suit, action or proceeding ever suffered or incurred by Lender
(including reasonable attorneys' fees and expenses) arising from Borrower's
failure to observe, perform or discharge any of its covenants, obligations,
agreements

<PAGE>

or duties under this Agreement, or from the breach of any of the representations
or warranties contained in Article IV of this Agreement. In addition, Borrower
shall defend Indemnitee against and save it harmless from all claims of any
Person with respect to the Collateral. Notwithstanding any contrary provision in
this Agreement, the obligation of Borrower under this Section 9.16 shall survive
the payment in full of the Obligations and the termination of this Agreement.

         Section 9.17. Choice of Law; Consent to Jurisdiction. THIS AGREEMENT
AND THE NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF MARYLAND, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF
CONFLICTS OF LAWS. IF ANY ACTION ARISING OUT OF THIS AGREEMENT OR THE NOTE IS
COMMENCED BY LENDER IN THE STATE COURTS OF THE STATE OF MARYLAND OR IN THE U.S.
DISTRICT COURT FOR THE DISTRICT OF MARYLAND, BORROWER HEREBY CONSENTS TO THE
JURISDICTION OF ANY SUCH COURT IN ANY SUCH ACTION AND TO THE LAYING OF VENUE IN
THE STATE OF MARYLAND. ANY PROCESS IN ANY SUCH ACTION SHALL BE DULY SERVED IF
MAILED BY REGISTERED MAIL, POSTAGE PREPAID, TO BORROWER AT ITS ADDRESS DESCRIBED
IN SECTION 9.4. OR IF SERVED BY ANY OTHER MEANS PERMITTED BY APPLICABLE LAW.

         Section 9.18. Waiver of Trial by Jury. BORROWER HEREBY (A) COVENANTS
AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY,
AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
SEPARATELY GIVEN, KNOWINGLY AND VOLUNTARILY, BY BORROWER, AND THIS WAIVER IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A JURY TRIAL WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED AND
REQUESTED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE
SUBJECT MATTER AND THE PARTIES TO THIS AGREEMENT, SO AS TO SERVE AS CONCLUSIVE
EVIDENCE OF BORROWER'S WAIVER OF THE RIGHT TO JURY TRIAL. FURTHER, BORROWER
HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF LENDER (INCLUDING LENDER'S
COUNSEL) HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO BORROWER THAT LENDER WILL
NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.

         Section 9.19. Confession of Judgment. BORROWER AUTHORIZES ANY ATTORNEY
ADMITTED TO PRACTICE BEFORE ANY COURT OF RECORD IN THE UNITED STATES OR THE
CLERK OF SUCH COURT TO APPEAR ON BEHALF OF BORROWER IN ANY COURT IN ONE OR MORE
PROCEEDINGS, OR BEFORE ANY CLERK THEREOF OF PROTHONOTARY OR OTHER COURT
OFFICIAL, AND TO CONFESS JUDGMENT AGAINST BORROWER IN FAVOR OF LENDER IN THE
FULL AMOUNT DUE ON THIS AGREEMENT (INCLUDING PRINCIPAL, ACCRUED

<PAGE>

INTEREST AND ANY AND ALL CHARGES, FEES AND COSTS) PLUS ATTORNEYS' FEES EQUAL TO
FIFTEEN PERCENT (15%) OF THE AMOUNT DUE, PLUS COURT COSTS, ALL WITHOUT PRIOR
NOTICE OR OPPORTUNITY OF BORROWER FOR PRIOR HEARING. NOTWITHSTANDING ANY OTHER
PROVISIONS OF THIS SECTION, THE LENDER ACKNOWLEDGES THAT ATTORNEYS' FEES ARE
STATED TO BE FIFTEEN PERCENT (15%) SOLELY FOR PURPOSES OF FIXING A SUM CERTAIN
FOR WHICH JUDGEMENT CAN BE ENTERED BY CONFESSION; AND THE LENDER AGREES THAT IN
ENFORCING ANY JUDGEMENT BY CONFESSION, LENDER SHALL NOT DEMAND, SOLELY WITH
RESPECT TO ATTORNEYS' FEES INCURRED BY THE LENDER IN CONNECTION WITH SUCH
INDEBTEDNESS AFTER SUCH JUDGEMENT IS RENDERED, ANY AMOUNTS IN EXCESS OF THE
ACTUAL AMOUNT OF ATTORNEYS' FEES CHARGED OR BILLED TO THE LENDER (WHICH
ATTORNEYS' FEES SHALL BE CHARGED OR BILLED TO THE LENDER AT THE STANDARD HOURLY
RATES). BORROWER AGREES AND CONSENTS THAT VENUE AND JURISDICTION SHALL BE PROPER
IN THE CIRCUIT COURT OF ANY COUNTY OF THE STATE OF MARYLAND OR OF BALTIMORE
CITY, MARYLAND, OR IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
MARYLAND. BORROWER WAIVES THE BENEFIT OF ANY AND EVERY STATUTE, ORDINANCE, OR
RULE OF COURT WHICH MAY BE LAWFULLY WAIVED CONFERRING UPON BORROWER ANY RIGHT OR
PRIVILEGE OF EXEMPTION, HOMESTEAD RIGHTS, STAY OF EXECUTION, OR SUPPLEMENTARY
PROCEEDINGS, OR OTHER RELIEF FROM THE ENFORCEMENT OR IMMEDIATE ENFORCEMENT OF A
JUDGMENT OR RELATED PROCEEDINGS ON A JUDGMENT. THE AUTHORITY AND POWER TO APPEAR
FOR AND ENTER JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ONE OR MORE
EXERCISES THEREOF, OR BY ANY IMPERFECT EXERCISE THEREOF, AND SHALL NOT BE
EXTINGUISHED BY ANY JUDGMENT ENTERED PURSUANT THERETO; SUCH AUTHORITY AND POWER
MAY BE EXERCISED ON ONE OR MORE OCCASIONS FROM TIME TO TIME, IN THE SAME OR
DIFFERENT JURISDICTIONS, AS OFTEN AS LENDER SHALL DEEM NECESSARY, CONVENIENT, OR
PROPER.

                               [SIGNATURES FOLLOW]

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first written above.

                                   LENDER:

                                   HELLER HEALTHCARE FINANCE, INC.
                                   a Delaware corporation

                                   By:/s/
                                      ------------------------------------------
                                   Name:
                                   Title:

                                   BORROWER:

                                   SFBC INTERNATIONAL, INC.
                                   a Delaware corporation

                                   By: /S/ ARNOLD HANTMAN
                                      ------------------------------------------
                                   Name: Arnold Hantman
                                   Title: CEO

                                   SOUTH FLORIDA KINETICS, INC.
                                   d/b/a SOUTH FLORIDA BIOAVAILABILITY CLINIC
                                   a Florida corporation

                                   By: /S/ ARNOLD HANTMAN
                                      ------------------------------------------
                                   Name: Arnold Hantman
                                   Title: Vice President

<PAGE>

                                LIST OF EXHIBITS

Exhibit A - Form of Revolving Credit Note

Exhibit B - Form of Lockbox Agreement

Exhibit C - Form of Legal Opinion

Exhibit D - Form of Borrowing Base Certificate

Exhibit E - Form of Estoppel Certificate

<PAGE>

                                LIST OF SCHEDULES

Schedule 1.36 - Permitted Liens

Schedule 2.6  - Use of Proceeds

Schedule 3.1  - Financed Property

Schedule 4.1  - Subsidiaries

Schedule 4.5  - Litigation

Schedule 4.7  - Tax Identification Numbers

Schedule 4.10 - Unpaid Taxes (need to see this schedule)

Schedule 4.13 - Non-Compliance with Law

Schedule 4.14 - Environmental Matters

Schedule 4.15 - Places of Business

Schedule 4.16 - Licenses

Schedule 4.17 - Stock Ownership

Schedule 4.19 - Borrowings and Guarantees

Schedule 4.21 - Trade Names

Schedule 4.22 - Joint Ventures

Schedule 7.4  - Acquisitions

Schedule 7.12 - Transactions with Affiliates

Schedule 7.14 - Planned IPO

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