Document:

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                                                                    EXHIBIT 10.5

                       CHANGE IN CONTROL, CONFIDENTIALITY
                          AND NONCOMPETITION AGREEMENT

         This Agreement is effective as of the 7th day of November, 2003 by and
between BAR HARBOR BANKING AND TRUST COMPANY, a Maine corporation with its
principal office at 82 Main Street, P.O. Box 400, Bar Harbor, ME 04609-0400 (the
"Employer"), and DEAN S. READ of Bar Harbor ME (the "Executive").

                              W I T N E S S E T H:

         WHEREAS, Bar Harbor Banking and Trust Company is a wholly-owned
subsidiary of Bar Harbor Bankshares; and

         WHEREAS, the Executive is an employee of the Employer; and

         WHEREAS, the Employer desires to enhance the ability of the Employer to
retain the services of the Executive and to reward the Executive for his
valuable, dedicated service to the Employer in the event of his termination of
employment in connection with a change in control.

         NOW, THEREFORE, the parties hereto do hereby agree as follows:

1.       Definitions

         1.1.     Bank shall mean Bar Harbor Banking and Trust Company.

         1.2.     Base Compensation shall mean the annual base salary payable by
the Employer to the Executive, excluding any bonuses, incentive compensation and
other forms of additional compensation.

         1.3.     Cause shall be deemed to exist only in the event the Executive
is convicted by a court of competent jurisdiction of a felony involving
dishonesty or fraud on the part of the Executive in his relationship with the
Employer, the Holding Company or the Bank.

         1.4.     Change in Control shall mean the occurrence of any one of the
following events:

                  (a)      Any person, including a group (as such term is used
         in Section 13(d) of the Securities Exchange Act of 1934, as amended
         (the "Exchange Act")) becomes the beneficial owner (as determined
         pursuant to Rule 13d-3 under the Exchange Act), directly or indirectly,
         of securities of Bar Harbor Bankshares representing more than fifty
         percent (50%) of the combined voting power of Bar Harbor Bankshares'
         then outstanding securities, other than as a result of an issuance of
         securities initiated by Bar Harbor Bankshares in the ordinary course of
         its business; or

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                  (b)      Bar Harbor Bankshares is party to a Business
         Combination (as hereinafter defined) unless, following consummation of
         the Business Combination, more than fifty percent (50%) of the
         outstanding voting securities of the resulting entity are beneficially
         owned, directly or indirectly, by the holders of Bar Harbor Bankshares'
         outstanding voting securities immediately prior to the Business
         Combination in substantially the same proportions as those existing
         immediately prior to the Business Combination; or

                  (c)      The stockholders of Bar Harbor Bankshares approve a
         plan of complete liquidation of Bar Harbor Bankshares or an agreement
         for the sale or disposition by Bar Harbor Bankshares of all or
         substantially all of Bar Harbor Bankshares' assets to another person or
         entity that is not a wholly owned subsidiary of Bar Harbor Bankshares.

         For purposes of this Section 1.4, a Business Combination means any cash
tender or exchange offer, merger or other business combination, sale of stock,
or sale of all or substantially all of the assets, or any combination of the
foregoing transactions.

         For purposes of this Section 1.4, a Change in Control shall exclude any
internal corporate change, reorganization or other such event, which occurred
prior to or may occur following the date of this Agreement.

         1.5.     Code shall mean the Internal Revenue Code of 1986, as amended,
and as it may be amended from time to time, together with the rules and
regulations promulgated under such code.

         1.6.     Date of Termination shall mean:

                  (a)      If the Executive's employment is terminated for
         Disability, thirty (30) days after Notice of Termination for Disability
         is given by the Employer to the Executive and the Executive shall not
         have returned to the performance of his duties on a full-time basis
         during such thirty (30) day period;

                  (b)      If the Executive's employment is terminated by the
         Employer for Cause or by the Executive for Good Reason, the date
         specified in the Notice of Termination, but not earlier than the date
         on which such Notice of Termination is given; and

                  (c)      If the Executive's employment is terminated or
         terminates for any other reason, the date on which the Executive ceases
         to perform services for the Employer as a common law employee.

         1.7      Disability shall mean a permanent and total disability (as
defined in the Employer's long term disability plan) which is incurred by the
Executive while he is employed by the Employer and which makes the Executive
eligible to receive a disability income under the Employer's long term
disability insurance plan. Such disability shall be deemed to exist only if an
application for benefits is filed with the administrator of the Employer's long
term disability

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insurance plan by or on behalf of the Executive and is approved by the
administrator, each in the manner described in such long term disability
insurance plan.

         1.8      Employer shall mean the Bank.

         1.9.     Good Reason shall mean, unless the Executive consents to such
action, a reduction in the Executive's compensation that does not apply
generally to all senior executive officers of the Employer, the Holding Company
and the Bank, a material reduction in the duties of the Executive, or a change
in the principal worksite of the Executive to a location that is more than fifty
(50) miles from Bar Harbor, Maine. Notwithstanding the above, Good Reason shall
not include any reorganization of the board of directors of the Holding Company
or the Bank, or any change in the Executive's position with the Holding Company
or the Bank, that occurred prior to the date of this Agreement.

         1.10.    Holding Company shall mean Bar Harbor Bankshares, its
subsidiaries and affiliates.

         1.11.    Notice of Termination shall mean the notice provided pursuant
to Section 3.

2.       Severance Benefits.

         In the event that: (a) the Employer terminates the Executive's
employment other than as a result of Disability and other than for Cause, or the
Executive terminates his employment for Good Reason; and (b) the Executive's
termination of employment occurs in anticipation of or after a Change in
Control, then the Employer shall pay the Executive the severance benefits
described in this Section 2. The Executive's termination of employment shall be
deemed to be in anticipation of a Change in Control if it occurs within the
twelve (12) month period prior to the occurrence of the Change in Control.

         The severance benefits described in this Section 2 shall equal the
following:

                  (a)      The Executive shall receive a lump sum severance
         payment within five (5) days after the Date of Termination. Such
         payment shall equal 1.5 times the Executive's Base Compensation,
         determined as of the Date of Termination.

                  (b)      The Executive and his dependents shall continue to be
         eligible to receive the same medical, health, dental and life insurance
         benefits which the Executive is eligible to receive on the Date of
         Termination. The Executive shall be required to make the same premium
         contributions that he was required to make immediately prior to the
         Date of Termination. The ability of the Executive and his dependents to
         receive such benefits shall continue for a period of eighteen (18)
         months following the Date of Termination.

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                  (c)      In the event of a Change of Control, all stock
         options granted but unexercised under the Bar Harbor Bankshares and
         Subsidiaries Incentive Stock Option Plan of 2000 or any other
         subsequent equity plan shall become 100% vested immediately prior to
         any such Change of Control. These grants will remain subject to all
         other terms and conditions in the Bar Harbor Bankshares and
         Subsidiaries Incentive Stock Option Plan of 2000 or any subsequent
         equity plan.

         The Executive shall not be required to mitigate the amount of any
severance benefits described in this Section 2 by seeking other employment.

3.       Notice of Termination.

         Any termination of the Executive's employment by the Employer due to
Disability or for Cause, or by the Executive due to Good Reason, shall be
communicated by written Notice of Termination to the other party.
Notwithstanding the above, however, the Executive shall not be entitled to give
a Notice of Termination that the Executive is terminating employment for Good
Reason more than six (6) months following the occurrence of the event alleged to
constitute Good Reason.

         A Notice of Termination must indicate the specific provisions in this
Agreement which are relied upon as the basis for the termination of the
Executive's employment, and must also set forth in reasonable detail the facts
and circumstances claimed to provide the basis for such termination under the
provisions so indicated.

4.       Loss of Severance Benefits.

         If the Employer shall terminate the Executive's employment due to
Disability or for Cause, or if the Executive shall terminate his employment
other than for Good Reason, or if the Executive shall die, then the Executive
shall have no right to receive any severance benefits under this Agreement.

5.       No Other Benefits Payable.

                  (a)      If the Executive is entitled to receive the severance
         benefits described in Section 2 of this Agreement, he shall not be
         entitled to receive: (i) any severance benefits under the terms of any
         general severance pay policy or plan of the Employer, the Holding
         Company or the Bank; or (ii) any other compensation, benefits or
         payments under the terms of any other plan of, or agreement with, the
         Employer, the Holding Company or the Bank.

                  (b)      Notwithstanding the above, the Executive shall be
         entitled to receive any compensation, benefits or payments which are
         specifically authorized by the terms of any plan of, or agreement with,
         the Employer, the Holding Company or the Bank to be paid in addition to
         the severance benefits described in Section 2 of this Agreement.
         Moreover,

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         notwithstanding the above, the Executive shall be entitled to receive,
         in addition to the severance benefits described in Section 2 of this
         Agreement, any compensation, benefits or payments which the Executive
         is entitled to receive under: (i) the Bar Harbor Bankshares
         Supplemental Executive Retirement Plan; (ii) any incentive compensation
         plan maintained by the Employer, the Holding Company or the Bank which
         provides for payment to a terminated employee of incentive compensation
         earned by the employee prior to his or her termination of employment;
         or (iii) any payroll plan or policy of the Employer, the Holding
         Company or the Bank which provides for payment to a terminated employee
         of any unpaid vacation, holiday or sick pay accrued by the employee
         prior to his or her termination of employment.

6.       Certain Additional Payments by the Employer.

                  (a)      Anything in this Agreement to the contrary
         notwithstanding and except as set forth below, in the event it shall be
         determined that any payment or distribution made at any time by the
         Employer or to or for the benefit of the Executive (whether paid or
         payable, or distributed or distributable, pursuant to the terms of this
         Agreement or otherwise, but determined without regard to any additional
         payments required under this Section 6) (a "Payment") would be subject
         to the excise tax imposed by Section 4999 of the Code, or any interest
         or penalties are incurred by the Executive with respect to such excise
         tax (such excise tax, together with any such interest and penalties,
         are hereinafter collectively referred to as the "Excise Tax"), then the
         Executive shall be entitled to receive an additional payment (a
         "Gross-Up Payment"). The Gross-Up Payment shall equal such an amount
         that, after payment by the Executive of all taxes (including, without
         limitation, any federal, state or local income taxes, Social Security
         taxes and Medicare taxes, and any interest or penalties imposed with
         respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
         Executive retains an amount of the Gross-Up Payment equal to the Excise
         Tax imposed upon the Payments. Notwithstanding the foregoing provisions
         of this Section 6(a), if it shall be determined that the Executive is
         entitled to a Gross-Up Payment, but that the Payments do not exceed
         110% of the greatest amount (the "Reduced Amount") that could be paid
         to the Executive such that the receipt of Payments would not give rise
         to any Excise Tax, then no Gross-Up Payment shall be made to the
         Executive and the Payments, in the aggregate, shall be reduced to the
         Reduced Amount.

                  (b)      Subject to the provisions of Section 6(d), all
         determinations required to be made under this Section 6 (including,
         without limitation, whether and when a Gross-Up Payment is required,
         the amount of such Gross-Up Payment, and the assumptions to be utilized
         in arriving at such determination) shall be made by KPMG Peat Marwick
         or such other certified public accounting firm as may be designated by
         the Executive (the "Accounting Firm"). The Accounting Firm shall
         provide detailed supporting calculations both to the Employer and to
         the Executive within fifteen (15) business days after the receipt of
         notice from the Executive that there has been a Payment, or such
         earlier time as is requested by the Employer. In the event that the
         Accounting Firm is serving as

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         accountant or auditor for the individual, entity or group effecting the
         Change of Control, the Executive shall appoint another nationally
         recognized accounting firm to make the determinations required
         hereunder (which accounting firm shall then be referred to as the
         Accounting Firm hereunder). All fees and expenses of the Accounting
         Firm shall be borne solely by the Employer. Any Gross-Up Payment, as
         determined pursuant to this Section 6, shall be paid by the Employer to
         the Executive within five (5) days after its receipt of the Accounting
         Firm's determination. Any determination by the Accounting Firm shall be
         binding upon the Employer and the Executive.

                  (c)      As a result of the uncertainty in the application of
         Section 4999 of the Code at the time of the initial determination by
         the Accounting Firm hereunder, it is possible that Gross-Up Payments
         which will not have been made by the Employer should have been made
         ("Underpayment"), consistent with the calculations required to be made
         hereunder. In the event that the Employer exhausts its remedies
         pursuant to Section 6(d) and the Executive thereafter is required to
         make a payment of any Excise Tax, the Accounting Firm shall determine
         the amount of the Underpayment that has occurred, and any such
         Underpayment shall be promptly paid by the Employer to or for the
         benefit of the Executive.

                  (d)      The Executive shall notify the Employer in writing of
         any claim by the Internal Revenue Service or any other taxing authority
         that, if successful, would require the payment by the Employer of a
         Gross-Up Payment. Such notification shall be given as soon as
         practicable, but no later than ten (10) business days after the
         Executive is informed in writing of such claim. The notification shall
         apprise the Employer of the nature of such claim and the date on which
         such claim is requested to be paid. The Executive shall not pay such
         claim prior to the expiration of the thirty (30) day period following
         the date on which it gives such notice to the Employer (or such shorter
         period ending on the date that any payment of taxes with respect to
         such claim is due). If the Employer notifies the Executive in writing
         prior to the expiration of such period that it desires to contest such
         claim, the Executive shall:

                           (i)      give the Employer any information reasonably
                  requested by the Employer relating to such claim;

                           (ii)     take such action in connection with
                  contesting such claim as the Employer shall reasonably request
                  in writing from time to time, including, without limitation,
                  accepting legal representation with respect to such claim by
                  an attorney reasonably selected by the Employer;

                           (iii)    cooperate with the Employer in good faith in
                  order effectively to contest such claim; and

                           (iv)     permit the Employer to participate in any
                  proceedings relating to such claim;

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         provided, however, that the Employer shall bear and pay directly all
         costs and expenses (including additional interest and penalties)
         incurred in connection with such contest, and shall indemnify and hold
         the Executive harmless, on an after-tax basis, for any Excise Tax or
         other taxes (including interest and penalties with respect thereto)
         imposed as a result of such representation and the payment of any costs
         and expenses. Without limitation on the foregoing provisions of this
         Section 6(d), the Employer shall control all proceedings taken in
         connection with such contest and, at its sole option, may pursue or
         forego any and all administrative appeals, proceedings, hearings and
         conferences with the taxing authority in respect of such claim, and
         may, at its sole option, either direct the Executive to pay the tax
         claimed and sue for a refund or contest the claim in any permissible
         manner. The Executive agrees to prosecute any such contest to a
         determination before any administrative tribunal, in a court of initial
         jurisdiction, and in one or more appellate courts, as the Employer
         shall determine; provided, however, that if the Employer directs the
         Executive to pay such claim and sue for a refund, the Employer shall
         advance the amount of such payment to the Executive on an interest-free
         basis, and shall indemnify and hold the Executive harmless, on an
         after-tax basis, from any Excise Tax or other taxes (including interest
         or penalties with respect thereto) imposed with respect to such advance
         or with respect to any imputed income with respect to such advance; and
         further provided, that any extension of the statute of limitations
         relating to the payment of taxes for the taxable year of the Executive
         with respect to which such contested amount is claimed to be due is
         limited solely to such contested amount. Furthermore, the Employer's
         control of the contest shall be limited to issues with respect to which
         a Gross-Up Payment would be payable hereunder, and the Executive shall
         be entitled to settle or contest, as the case may be, any other issue
         raised by the Internal Revenue Service or any other taxing authority.

                  (e)      If, after the receipt by the Executive of an amount
         advanced by the Employer pursuant to Section 6(d), the Executive
         becomes entitled to receive any refund with respect to such claim, the
         Executive shall (subject to the Employer's complying with the
         requirements of Section 6(d)) promptly pay to the Employer the amount
         of such refund (together with any interest paid or credited thereon,
         after taxes applicable thereto). If, after the receipt by the Executive
         of an amount advanced by the Employer pursuant to Section 6(d), a
         determination is made that the Executive shall not be entitled to any
         refund with respect to such claim and the Employer does not notify the
         Executive in writing of its intent to contest such denial of refund
         prior to the expiration of thirty (30) days after such determination,
         then such advance shall be forgiven and shall not be required to be
         repaid, and the amount of such advance shall offset, to the extent
         thereof, the amount of the Gross-Up Payment required to be paid.

7.       Successors.

                  (a)      The Employer will require any successor (whether
         direct or indirect, by purchase, merger, consolidation or otherwise) to
         all or substantially all of the business

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         and/or assets of the Employer to expressly assume and agree to perform
         its obligations under this Agreement in the same manner and to the same
         extent that the Employer would be required to perform them if no such
         succession had taken place. Each such successor shall execute a written
         agreement evidencing its assumption of the Employer's obligations under
         this Agreement prior to the effective date of any such purchase,
         merger, consolidation or other transaction.

                  (b)      The failure of the Employer to obtain from each
         successor the written agreement described in Section 7(a) shall be a
         breach of the obligations of the Employer under this Agreement, and
         shall entitle the Executive to compensation from the Employer in the
         same amount and on the same terms as he would be entitled hereunder if
         the Employer had terminated the Executive's employment after a Change
         in Control other than for Disability or Cause; except that, for
         purposes of implementing the foregoing, the date on which any such
         succession becomes effective shall be deemed to be the Date of
         Termination.

                  (c)      As used in this Section 7, the Employer shall include
         the Employer, the Holding Company, the Bank, and any successor to all
         or substantially all of the business and/or assets of any of them
         (whether direct or indirect, by purchase, merger, consolidation or
         otherwise) which executes and delivers the written agreement described
         in Section 7(a) or which otherwise becomes bound by all the terms and
         provisions of this Agreement.

8.       Confidential Information, Non Competition Obligations, and
         Non-Solicitation.

                  (a)      Confidential Information

                  The Executive recognizes and acknowledges that certain assets
         of the Holding Company, the Bank, or any of their affiliates or
         subsidiaries constitutes Confidential Information.

                  For purposes hereof, the term "Confidential Information" means
         any and all information and compilations of information, in whatever
         form or medium (including any copies thereof), relating to any part of
         the business of the Holding Company, the Bank or any of their
         subsidiaries or affiliates, or the business of their customers,
         provided to the Executive, or which the Executive obtained or compiled
         or had obtained or compiled on his behalf, which information or
         compilations of information are not a matter of public record or
         generally known to the public, including without limitation:

                           (i)      Financial information regarding the Holding
                  Company, the Bank, or any of their subsidiaries or affiliates;

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                           (ii)     Personnel data, including compensation
                  arrangements relating to the Executive or any other employees
                  of the Holding Company, the Bank, or any of their subsidiaries
                  or affiliates;

                           (iii)    Internal plans, practices, and procedures of
                  the Holding Company, the Bank or any of their subsidiaries or
                  affiliates;

                           (iv)     The names, portfolio information, investment
                  strategies, requirements, lending or deposit information, or
                  any similar information of any customers, clients, or
                  prospects of the Holding Company, the Bank, or any of their
                  subsidiaries or affiliates;

                           (v)      Business methods and marketing strategies of
                  the Holding Company, the Bank, or any of their subsidiaries or
                  affiliates;

                           (vi)     Any other information expressly deemed
                  confidential by the officers and directors of the Holding
                  Company, the Bank, or any of their subsidiaries or affiliates;
                  and

                           (viii)   The terms and conditions of the Agreement
                  and any documents or instruments executed in connection
                  herewith that are not of public record.

                  The Executive shall not, without the prior written consent of
         the Holding Company, the Bank, or any of their subsidiaries or
         affiliates, use or disclose, or negligently permit any unauthorized
         person to use, disclose, or gain access to, any Confidential
         Information.

                  Upon termination of employment, the Executive hereby agrees to
         deliver promptly to the Holding Company, the Bank, or any of their
         affiliates or subsidiaries all memoranda, notes, records, manuals, or
         other documents, including all copies of such materials, containing
         Confidential Information, whether made or compiled by the Executive or
         furnished to him from any source by virtue of the Executive's
         relationship with the Holding Company, the Bank, or any of their
         subsidiaries or affiliates.

                  Regardless of the reason for his cessation of employment, the
         Executive will furnish such information as may be in the Executive's
         possession and cooperate with the Holding Company, the Bank, or any of
         their affiliates or subsidiaries as may reasonably be requested in
         connection with any claims or legal actions in which the Holding
         Company, the Bank, or any of their subsidiaries or affiliates are or
         may become a party. The Employer will reimburse the Executive for any
         reasonable out-of-pocket expenses the Executive incurs in order to
         satisfy his obligations under this clause.

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                  (b)      Non-Competition Obligations

                  In consideration of the covenants of the Employer contained
         herein, the Executive covenants and agrees with the Employer that,
         during the " Non-Compete Period" (as hereinafter defined) and within a
         one hundred fifty (150) "air" mile radius from Bar Harbor, Maine, the
         Executive shall not without specific written approval, directly or
         indirectly:

                           (i)      Engage in any insurance, brokerage, trust,
                  banking, or other financial services as an owner, employee,
                  consultant, representative, or in any other capacity;

                           (ii)     Directly or indirectly request or advise any
                  past, present, or future customers of the Holding Company, the
                  Bank or any of their subsidiaries or affiliates to withdraw,
                  curtail, or cancel his or her or its business with the Holding
                  Company, the Bank, or any of their subsidiaries or affiliates;

                           (iii)    Directly or indirectly cause, suggest, or
                  induce others to call on any past, present, or future
                  customers of the Holding Company, the Bank or any of their
                  affiliated entities; or

                           (iv)     Canvas, solicit, or accept any business on
                  behalf of any other bank, insurance agency, trust, or other
                  financial services business, other than the Holding Company,
                  the Bank or any of their affiliated entities, from any past or
                  present customer of the Holding Company, the Bank or any of
                  their affiliated entities.

                  The "Non-Compete Period" shall commence on the date hereof and
         terminate one (1) year after the cessation of the Executive's
         employment with the Employer and all of its affiliates, regardless of
         reason, whether or not pursuant to this Agreement.

         (c)      Non-Solicitation of Employees

                  While employed by the Employer, and for one (1) year following
         cessation of his employment with the Employer and all of its affiliates
         for any reason, the Executive shall not, directly or indirectly, by any
         means or device whatsoever, for himself or on behalf of, or in
         conjunction with, any other person, partnership or corporation,
         solicit, entice, hire, or attempt to hire or employ any employee of the
         Holding Company, the Bank or any of their affiliated entities.

                  During this Agreement, the Executive shall not interview or
         negotiate employment with, or accept employment from, a competitor in
         the market area described in Section 8(b) above except with the written
         consent of the Employer.

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9.       Reformation; Injunctive Relief.

                  (a)      All the parties hereto acknowledge that the parties
         have carefully considered the nature and scope of this Agreement. The
         activities, period and area covered by Section 8 are expressly
         acknowledged and agreed to be fair, reasonable and necessary. To the
         extent that any covenant contained in Section 8 is held to be invalid,
         illegal or unenforceable because of the extent of activities, duration
         of such covenant, the geographic area covered thereby, or otherwise,
         the parties agree that the court making such determination shall reform
         such covenant to include as much of its nature and scope as will render
         it enforceable and, in its reduced form, said covenant shall be valid,
         legal and enforceable to the fullest extent of the law.

                  (b)      The Executive acknowledges and agrees that, upon any
         breach by the Executive of his obligations under Section 8 hereof, the
         Employer will have no adequate remedy at law, and accordingly will be
         entitled to specific performance and other appropriate injunctive and
         equitable relief, notwithstanding Section 10 hereof. Nothing herein
         shall be construed as prohibiting the Employer from pursuing any other
         remedies available to it, including the recovery of damages from the
         Executive.

10.      Mediation and Arbitration.

         If the Executive and the Employer have any dispute whatsoever relating
to the interpretation, validity or performance of this Agreement, or any other
dispute arising out of this Agreement, every reasonable attempt will be made to
resolve any differences or dispute within thirty (30) days of an issuance of
written notice by either party to the other party.

         If a successful resolution of any differences or dispute has not been
achieved to the satisfaction of both parties at the end of the 30-day period,
the following steps will be used:

                  Except as otherwise expressly provided hereunder, the parties
         agree that any and all differences or disputes arising out of the
         Executive's employment or cessation of employment, including but not
         limited to any dispute, controversy, or claim arising under any
         federal, state, or local statute, law, ordinance or regulation or under
         this Agreement, shall be resolved exclusively by Alternative Dispute
         Resolution described in this Agreement ("ADR"). The initiation of ADR
         shall first require mediation, and the parties agree to first try to
         settle any dispute through mediation. Mediation shall be initiated by
         either party by the serving of a written notice of intent to mediate (a
         "Mediation Notice") by one party upon the other. If no resolution has
         been mutually agreed through mediation within ninety (90) days of
         service of a Mediation Notice, then and only then may the dispute be
         submitted to arbitration. Arbitration shall be initiated by the serving
         of a written notice of intent to arbitrate (an "Arbitration Notice") by
         one party upon the other. Notwithstanding the foregoing, nothing in
         this Agreement shall be deemed to preclude

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         the Employer from seeking temporary or permanent injunctive relief
         and/or damages from a court of competent jurisdiction with respect to
         any breach of Section 8 of this Agreement.

                  In the event that a party wishes to initiate ADR, a Mediation
         Notice must be served on the other party within six (6) months from the
         date on which the claim arose. If the parties cannot mutually agree on
         a mediator, then a mediator shall be selected in accordance with the
         Employment Mediation Rules of the American Arbitration Association.

                  In the event that mediation is unsuccessful and arbitration is
         initiated, it shall be conducted under the National Rules of the
         Resolution of Employment Disputes of the American Arbitration
         Association. There shall be a single arbitrator to be agreed upon by
         the parties, provided that, if the parties are unable to agree upon a
         single arbitrator, each party shall name an arbitrator and the two so
         named shall name a third arbitrator The arbitration proceedings shall
         be heard by the arbitrator(s) and the decision of the arbitrator, or
         the majority of the panel if one has been selected, shall be final and
         binding on the parties. Judgment upon the arbitration award may be
         entered in any court of competent jurisdiction. An Arbitration Notice
         must be served on the other party within one (1) year from the date on
         which the claim arose, and the failure to bring such a claim within
         such one-year period shall constitute a waiver of such claim and an
         absolute bar to any further proceedings in any forum with respect to
         it. All mediation and arbitration proceedings shall be conducted in
         Bangor, Maine, unless the parties otherwise agree in writing.

         The cost of any mediation proceeding under this Section 10 will be paid
by the Employer. The cost of any arbitration proceeding will be shared equally
by the parties to the dispute; provided, however, that, if the dispute is
resolved in favor of the Executive, such cost shall be paid in full by the
Employer.

11.      Post-Termination Obligations.

         All payments and benefits due to the Executive under this Agreement
shall be subject to the Executive's compliance with this Section 11 for one full
year following the Executive's Date of Termination. The Executive shall, upon
reasonable notice, furnish such information and assistance to the Employer, the
Holding Company and the Bank as may reasonably be required by the Employer, the
Holding Company or the Bank in connection with any litigation in which it or any
of its subsidiaries or affiliates is, or may become, a party.

12.      General Provisions.

                  (a)      All notices required by this Agreement shall be in
         writing and shall be sufficiently given if delivered personally or
         mailed by registered mail or certified mail,

                                       12
<PAGE>

         return receipt requested, to the parties at their then current
         addresses. All notices shall be deemed to have been given as of the
         date so delivered or mailed.

                  (b)      This Agreement and the plans and agreements described
         in Section 5(b) contain the entire transaction between the parties, and
         there are no other representations, warranties, conditions or
         agreements relating to the subject matter thereof.

                  (c)      The waiver by any party of any breach or default of
         any provision of this Agreement shall not operate or be construed as a
         waiver of any subsequent breach.

                  (d)      This Agreement may not be changed orally but only by
         an agreement in writing executed on behalf of the party against which
         enforcement of any waiver, change, modification, consent or discharge
         is sought.

                  (e)      This Agreement shall be binding upon and inure to the
         benefit of the Employer and the Executive and their respective
         successors, assigns, heirs and legal representatives (including, but
         not limited to, any successor of the Employer described in Section 7).

                  (f)      Each of the parties agrees to execute all further
         instruments and documents and to take all further action as the other
         party may reasonably request in order to effectuate the terms and
         purposes of this Agreement.

                  (g)      This Agreement may be executed in one or more
         counterparts, all of which taken together shall constitute one and the
         same instrument.

                  (h)      This Agreement shall be construed pursuant to and in
         accordance with the laws of the State of Maine. Actions brought by the
         Employer under this Agreement shall be subject to the exclusive
         jurisdiction of the state and federal courts of Maine. Both parties
         consent to the personal jurisdiction of such courts for such actions,
         and agree that they may be served with process in accordance with
         Section 12(a).

                  (i)      The Executive acknowledges that he has had a full and
         complete opportunity to review the terms, enforceability and
         implications of this Agreement, and that the Employer has not made any
         representations or warranties to the Executive concerning the terms,
         enforceability and implications of this Agreement other than as are
         reflected in this Agreement.

                                       13
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the _____ day of ______________, 20____.

Witness:                            EMPLOYER:
                                    BAR HARBOR BANKING AND TRUST COMPANY

_________________________           By____________________________

                                      Title:

Witness:                            EXECUTIVE:

_________________________           ______________________________
                                    Dean S. Read

         Bar Harbor Bankshares hereby guarantees and agrees to perform the
obligations of Bar Harbor Banking and Trust Company under the terms of this
Agreement. The liability of Bar Harbor Bankshares under this guarantee is
primary, direct and independent. This guarantee shall be enforceable against Bar
Harbor Bankshares in the same manner as if Bar Harbor Bankshares were the
Employer under the terms of this Agreement.

Witness:                            GUARANTOR:
                                    BAR HARBOR BANKSHARES

_________________________           By____________________________
                                      Title:

                                       14<PAGE>

                                 AMENDMENT NO. 1

                                       to

                      AMENDED AND RESTATED CREDIT AGREEMENT
                             dated February 21, 2003

                                      among

                     FRESENIUS MEDICAL CARE HOLDINGS, INC.,
                             a New York corporation,
                           FRESENIUS MEDICAL CARE AG,
                              a German corporation,
                                       and
             the other Borrowers and Guarantors identified therein,

                         the Lenders identified therein,

                                       and

                             BANK OF AMERICA, N.A.,
                             as Administrative Agent

                        BANC OF AMERICA SECURITIES, LLC,
                   as Sole Lead Arranger and Sole Book Manager

<PAGE>

                                 AMENDMENT NO. 1

         THIS AMENDMENT NO. 1, dated as of August 22, 2003 (this "Amendment")
relating to the Amended and Restated Credit Agreement referenced below, by and
among FRESENIUS MEDICAL CARE AG ("FMCAG"), FRESENIUS MEDICAL CARE HOLDINGS, INC.
("FMCH"), certain subsidiaries and affiliates of FMCAG party to the Credit
Agreement and identified on the signature pages hereto, and BANK OF AMERICA,
N.A., as Administrative Agent for and on behalf of the Lenders. Capitalized
terms used but not otherwise defined shall have the meanings provided in the
Credit Agreement.

                               W I T N E S S E T H

         WHEREAS, a $1.5 billion credit facility has been extended to FMCAG,
FMCH and the other Borrowers identified therein (collectively, the "Borrowers")
pursuant to the terms of that Amended and Restated Credit Agreement dated as of
February 21, 2003 (as amended and modified, the "Credit Agreement") among the
Borrowers, the Guarantors and Lenders identified therein, and the Administrative
Agent;

         WHEREAS, the Borrowers have requested certain modifications to the
Credit Agreement, including a request for the Lenders to make available to the
Borrowers an additional term loan facility (the "Tranche C Term Loan"), the
proceeds of which will be applied by the Borrowers as a voluntary prepayment of
the Tranche B Term Loan, together with any interest accrued and any amounts due
pursuant to Section 3.05 of the Credit Agreement, as amended hereby, with
respect to the portion of the Tranche B Term Loan so prepaid;

         WHEREAS, the requisite Lenders pursuant to Section 11.01 of the Credit
Agreement have consented to the requested modifications on the terms and
conditions set forth herein and have authorized the Administrative Agent to
enter into this Amendment on their behalf;

         NOW, THEREFORE, IN CONSIDERATION of these premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         SECTION 1   AMENDMENTS TO THE CREDIT AGREEMENT. The Credit Agreement is
hereby amended and modified in the following respects:

1.1      In Section 1.01 (Definitions):

         (a)      The following definitions are amended and modified as follows:

                  (i)      The definition of "Applicable Percentage" will be
         amended by adding a new sentence at the end thereof as follows:

                           With respect to the Tranche C Term Loan, the
                  Applicable Percentage shall be as set forth in the Tranche C
                  Term Loan Joinder Agreement.

                  (ii)     in the definition of "Credit Documents" the phrase
         "the Tranche C Term Loan Joinder Agreement," is inserted immediately
         following the reference therein to "the Notes,".

                  (iii)    in the definition of "Eligible Assignee", clause (i)
         of subsection (d) is amended to read as follows:

<PAGE>
                           (i) the Administrative Agent (and, to the extent
                  required by Section 11.07(b) with respect to any assignment of
                  Revolving Commitments, the L/C Issuers), and

                  (iv)     in the definition of "Interest Payment Date", in
         clauses (a) and (c) thereof, the references to "the Tranche A Term Loan
         and the Tranche B Term Loan" are, in each case, amended to read "the
         Tranche A Term Loan, the Tranche B Term Loan and the Tranche C Term
         Loan".

                  (v)      in the definition of "Interest Period", clause (C)
         thereof is amended to read as follows:

                           (C)      with respect to Revolving Commitments, no
                  Interest Period shall extend beyond the Termination Date, and
                  with respect to the Term Loans, no Interest Period shall
                  extend beyond the date of the final principal amortization
                  payment for such Term Loan.

                  (vi)     in the definition of "Outstanding Amount", a new
         clause (e) is added to read as follows:

                  and (e) with respect to the Tranche C Term Loan on any date,
                  the aggregate outstanding principal amount thereof after
                  giving effect to any prepayments or repayments of the Tranche
                  C Term Loan on such date.

         (b)      The following definitions are amended in their entirety to
read as follows:

                  "Domestic Swing Line Lender" means (a) Bank of America and (b)
         any other Lender that agrees to act as a Domestic Swing Line Lender
         hereunder, or in each case any successor in such capacity.

                  "Parallel Debt Agreement" means that certain Parallel Debt
         agreement dated as of the Closing Date between the Collateral Agent
         (and, pursuant to the power of attorney granted to the Collateral Agent
         by the Lenders pursuant to Section 11.22 hereof, each of the Lenders)
         and FMCAG (and, pursuant to the power of attorney granted to FMCAG by
         the other Credit Parties pursuant to Section 11.22 hereof, each other
         Credit Party), or any substantially similar agreement that creates an
         obligation of the Credit Parties (as debt acknowledgement or abstraktes
         Schuldanerkenntnis) in favor of the Collateral Agent under the Law of
         Germany, in each case as amended or modified from time to time.

                  "Term Loan" means the Tranche A Term Loan, the Tranche B Term
         Loan and the Tranche C Term Loan.

                  "Term Loan Commitments" means the Tranche A Term Loan
         Commitment, the Tranche B Term Loan Commitment and the Tranche C Term
         Loan Commitment.

                  "Term Notes" means the Tranche A Term Notes, the Tranche B
         Term Notes and the Tranche C Term Notes.

         (c)      The following definitions are added to read as follows:

                  "First Amendment Closing Date" means August 22, 2003.

                                       2
<PAGE>
                  "Required Tranche C Term Lenders" means, as of any date of
         determination, Lenders holding in the aggregate more than 50% of the
         Tranche C Term Loan; provided that the portion of the Tranche C Term
         Loan held or deemed held by any Defaulting Lender shall be excluded for
         purposes of making a determination of Required Tranche C Term Lenders.

                  "Tranche C Term Lenders" means, prior to funding of the
         Tranche C Term Loan, Lenders with Tranche C Term Loan Commitments, and
         after funding of the Tranche C Term Loan, Lenders holding a portion of
         the Tranche C Term Loan, together with their successors and permitted
         assigns.

                  "Tranche C Term Loan" shall have the meaning provided in
         Section 2.01(h).

                  "Tranche C Term Loan Commitment" means the commitment of each
         Tranche C Term Lender to make its portion of the Tranche C Term Loan
         hereunder as set forth in the Tranche C Term Loan Joinder Agreement;
         provided that, at any time after funding of the Tranche C Term Loan,
         determinations of "Required Lenders" and "Required Tranche C Term
         Lenders" shall be based on the outstanding principal balance of the
         Tranche C Term Loan.

                  "Tranche C Term Loan Commitment Percentage" means, for each
         Tranche C Term Lender, a fraction (expressed as a percentage carried to
         the ninth decimal place), the numerator of which is, prior to funding
         of the Tranche C Term Loan, the Dollar Equivalent of such Tranche C
         Term Lender's Tranche C Term Loan Committed Amount, and, after funding
         of the Tranche C Term Loan, the Dollar Equivalent of the principal
         amount of such Tranche C Term Lender's portion of the Tranche C Term
         Loan and the denominator of which is, prior to funding of the Tranche C
         Term Loan, the Dollar Equivalent of the aggregate principal amount of
         the Tranche C Term Loan Commitments, and, after funding of the Tranche
         C Term Loan, the Dollar Equivalent of the aggregate principal amount of
         the Tranche C Term Loan. The initial Tranche C Term Loan Commitment
         Percentages will be as set forth in the Tranche C Term Loan Joinder
         Agreement.

                  "Tranche C Term Loan Committed Amount" means, with respect to
         each Tranche C Term Lender, the amount of such Lender's Tranche C Term
         Loan Commitment. The initial Tranche C Term Loan Committed Amounts will
         be as set forth in the Tranche C Term Loan Joinder Agreement.

                  "Tranche C Term Loan Joinder Agreement" means the Tranche C
         Term Lender joinder agreement providing for the establishment of the
         Tranche C Term Loan, substantially in the form of Exhibit H.

                  "Tranche C Term Note" means the promissory notes given to each
         Tranche C Term Lender to evidence such Tranche C Term Lender's portion
         of the Tranche C Term Loan, as amended, restated, modified,
         supplemented, extended, renewed or replaced. A form of Tranche C Term
         Note is attached as Exhibit C-4.

         1.2      Clause (c) of Section 2.01 (Domestic Swing Line Commitment) is
amended by replacing the first reference to "the Domestic Swing Line Lender"
with "each of the Domestic Swing Line Lenders" and by replacing the second
reference to "the Domestic Swing Line Lender" with "the applicable Domestic
Swing Line Lender".

         1.3      A new clause (h) is added to the end of Section 2.01
(Commitments) to read as follows:

                                       3
<PAGE>

                  (h)      Tranche C Term Loan Commitment. On or after the First
         Amendment Closing Date, FMCH and FMCAG may, upon written notice to the
         Administrative Agent and the Tranche C Term Lenders pursuant to the
         terms hereof and the Tranche C Term Loan Joinder Agreement, agree with
         one or more Tranche C Term Lenders for such Tranche C Term Lenders to
         severally make a new term loan (the "Tranche C Term Loan"), provided
         that:

                           (i)      the Tranche C Term Lenders shall be any
                  combination of existing Lenders or other commercial banks and
                  financial institutions chosen or arranged by the Borrower and
                  reasonably acceptable to the Administrative Agent, which
                  Lenders and such other commercial banks and financial
                  institutions shall join in this Credit Agreement as Tranche C
                  Term Lenders by Tranche C Term Loan Joinder Agreement or by
                  other arrangement reasonably acceptable to the Administrative
                  Agent and FMCAG;

                           (ii)     the aggregate principal amount of the
                  Tranche C Term Loan shall be not more than the Dollar
                  Equivalent of Four Hundred Million Dollars ($400,000,000);

                           (iii)    the Applicable Percentage for the Tranche C
                  Term Loan shall be subject to mutual agreement of the Tranche
                  C Term Lenders and the Borrowers and shall be set forth in the
                  Tranche C Term Loan Joinder Agreement;

                           (iv)     the final maturity date for the Tranche C
                  Term Loan shall be not sooner than the final maturity date for
                  the Tranche B Term Loan (February 21, 2010);

                           (v)      the Administrative Agent shall have received
                  for the benefit of the Tranche C Term Lenders, opinions of
                  counsel to the Borrowers and the Guarantors in form and
                  substance satisfactory to the Administrative Agent and the
                  Tranche C Term Lenders;

                           (vi)     to the extent reasonably necessary in the
                  judgment of the Administrative Agent, amendments to each
                  foreign Pledge Agreement and the Parallel Debt Agreement
                  and/or delivery of any substantially similar agreement that
                  creates an obligation of the Credit Parties (as debt
                  acknowledgment or abstraktes Schuldanerkenntnis), in each case
                  in a manner satisfactory to the Administrative Agent;

                           (vii)    on the date of the funding of the Tranche C
                  Term Loan, the conditions to the making of Credit Extensions
                  in Section 5.02 shall be satisfied; and

                           (viii)   the Borrower shall have paid the reasonable
                  expenses of the Administrative Agent and reasonable fees and
                  expenses of counsel to the Administrative Agent, including
                  foreign counsel, in connection with establishment of the
                  Tranche C Term Loan, to the extent required to be paid
                  pursuant to the terms thereof.

         The Tranche C Term Loan may consist of Base Rate Loans, Eurocurrency
         Rate Loans or a combination thereof, as the applicable Borrower may
         request. Amounts repaid on the Tranche C Term Loan may not be
         reborrowed.

         1.4      In Section 2.02 (Borrowings, Conversions and Continuations of
Loans), subsection (e) is amended by deleting the word "and" at the end of
clause (iii), inserting the word "and" immediately following clause (iv), and
adding a new clause (v) immediately prior to the proviso at the end thereof to
read as follows:

                                       4
<PAGE>

                  (v) there shall not be more than five Interest Periods in
         effect with respect to the Tranche C Term Loan

         1.5      In Section 2.05 (Repayment of Loans), a new subsection (f) is
added at the end to read as follows:

                  (f)      Tranche C Term Loan. Subject to Section 2.06(b)(vi),
         the Borrowers shall repay to the Lenders the principal amount of the
         Tranche C Term Loan in quarterly installments as provided in the
         Tranche C Term Loan Joinder Agreement.

         1.6      In Section 2.06(a) (Voluntary Prepayments), subsection (ii) is
amended by inserting the word "applicable" immediately before each reference to
"Domestic Swing Line Lender" and subsection (iii) is amended and replaced in its
entirety to read as follows:

                  (iii)    any voluntary prepayments on the Term Loans shall be
         applied as set forth in Section 2.06(c)(i).

         1.7      In Section 2.06(b) (Mandatory Prepayments), a new subsection
(vi) is added to read as follows:

                  (vi)     Tranche C Term Loan. The Tranche C Term Loan will be
         prepaid in full on October 31, 2007, if the $450 million 7.875% Trust
         Preferred Securities due February 1, 2008 and the DM300 million 7.375%
         Trust Preferred Securities due February 1, 2008 are not repaid (with
         the consent of the Required Lenders hereunder), or refinanced or the
         maturity date thereof extended by October 1, 2007, in either case, to a
         date that is at least seven and one-half years after the Closing Date.

         1.8      Section 2.06(c)(i) (Application of Voluntary Prepayments) is
replaced in its entirety to read as follows:

                  (i)      Voluntary Prepayments. Voluntary prepayments shall be
         applied as specified by the Borrowers; provided that (A) any voluntary
         prepayment on the Term Loans shall be applied pro rata to the Tranche A
         Term Loan and the Tranche B Term Loan, except for any voluntary
         prepayment on the Term Loans made from the proceeds of the advance of
         the Tranche C Term Loan or otherwise contemporaneously therewith which
         shall be applied first to the payment of the Tranche B Term Loan, (B)
         following repayment in full of the Tranche B Term Loan, any voluntary
         prepayment on the Term Loans shall be applied pro rata to the Tranche A
         Term Loan and the Tranche C Term Loan, (C) prepayments on the Tranche A
         Term Loan shall be applied pro rata to remaining principal amortization
         installments thereunder, (D) prepayments on the Tranche B Term Loan
         shall be applied to remaining principal amortization installments in
         inverse order of maturity and (E) prepayments on the Tranche C Term
         Loan shall be applied to remaining principal amortization installments
         in inverse order of maturity. Voluntary prepayments on the Loan
         Obligations will be paid by the Administrative Agent to the Lenders
         ratably in accordance with their respective interests therein.

         1.9      In Section 2.06(c)(ii) (Application of Mandatory Prepayments),
subsection (B) is amended to read as follows:

                  (B)      Mandatory prepayments in respect of Dispositions
         under subsection (b)(ii) above, Debt Transactions under subsection
         (b)(iii) and Securitization Transactions under subsection (b)(iv) above
         shall be applied first to the Term Loans until paid in full, and then
         to the Revolving Obligations. Mandatory prepayments on the Term Loans
         shall be applied pro rata to

                                       5
<PAGE>

         the Tranche A Term Loan and the Tranche B Term Loan; provided that,
         following the repayment in full of the Tranche B Term Loan, mandatory
         prepayments on the Term Loans shall be applied pro rata to the Tranche
         A Term Loan and the Tranche C Term Loan. Prepayments on the Tranche A
         Term Loan shall be applied pro rata to remaining principal amortization
         installments thereunder and prepayments on the Tranche B Term Loan or
         the Tranche C Term Loan shall, in each case, be applied to remaining
         principal amortization installments thereunder in inverse order of
         maturity.

         1.10     Section 2.09 (Additional Provisions relating to Domestic Swing
Line Loans) is amended as follows:

                  (a)      Clause (a) (Borrowing Procedures) and clause (c)
         (Repayment of Participations) are amended by inserting the word
         "applicable" immediately before each reference to "Domestic Swing Line
         Lender" therein.

                  (b)      Clause (b) (Refinancing of Domestic Swing Line Loans)
         is amended by (i) replacing the first sentence in clause (i) thereof to
         read as follows, and (ii) by inserting the word "applicable"
         immediately before each other reference to "Domestic Swing Line Lender"
         therein:

                           (i)      Each Domestic Swing Line Lender at any time
                  in its sole and absolute discretion may request, on behalf of
                  the applicable Borrower (and such Borrower hereby irrevocably
                  authorizes the Domestic Swing Line Lenders to so request on
                  its behalf), that each Revolving Lender make a Committed
                  Revolving Loan that is a Base Rate Loan in an amount equal to
                  such Lender's Revolving Commitment Percentage of the amount of
                  Domestic Swing Line Loans made by such Domestic Swing Line
                  Lender then outstanding.

                  (c)      Clause (d) (Interest for Account of Domestic Swing
         Line Lender) and clause (e) Payments Directly to Domestic Swing Line
         Lender) are amended and replaced in their entireties to read as
         follows:

                           (d)      Interest for Account of Domestic Swing Line
                  Lender. Each Domestic Swing Line Lender will be responsible
                  for invoicing the Borrowers for interest on the Domestic Swing
                  Line Loans made by such Domestic Swing Line Lender. Until each
                  Revolving Lender funds its Committed Revolving Loan or risk
                  participation pursuant to this Section 2.09 to refinance such
                  Lender's Revolving Commitment Percentage of such Domestic
                  Swing Line Loans, interest in respect thereof shall be solely
                  for the account of such Domestic Swing Line Lender.

                           (e)      Payments Directly to Domestic Swing Line
                  Lender. The Borrowers shall make all payments of principal and
                  interest in respect of the Domestic Swing Line Loans made by
                  any Domestic Swing Line Lender directly to such Domestic Swing
                  Line Lender.

         1.11     In Section 2.13 (Evidence of Debt), in subsection (a) the
next-to-last sentence is amended to read as follows:

         The Borrowers shall execute and deliver to the Administrative Agent (i)
         a Revolving Note for each Revolving Lender that so requests, (ii) a
         Tranche A Term Note for each Tranche A Term Lender that so requests,
         (iii) a Tranche B Term Note for each Tranche B Term Lender that so
         requests and (iv) a Tranche C Term Note for each Tranche C Term Lender
         that so requests, which Notes, in addition to such accounts or records,
         shall evidence such Lender's Loans.

                                       6
<PAGE>

         1.12     In Section 2.14 (Payments Generally), the next-to-last
sentence in subsection (a) is amended to renumber clause "(iv)" as "(v)" and to
add a new clause (iv) to read as follows:

                  (iv) with respect to such payments on the Tranche C Term Loan,
         its Tranche C Term Loan Commitment Percentage thereof, and

         1.13     In Section 8.01 (Indebtedness), clause (i) of the proviso in
subsection (j) is amended to read as follows:

                  (i) the maturity date for any such debt is not earlier than
         the maturity date of the Tranche C Term Loan,

         1.14     In Section 11.01 (Amendments), subsections "(e)", "(f)" and
"(g)" of are renumbered as subsections "(f)", "(g)" and "(h)" respectively, and
a new clause (e) is added to read as follows:

                  (e)      unless also signed by the Required Tranche C Term
         Lenders, no such amendment, waiver or consent shall:

                           (i)      amend or waive any mandatory prepayment on
                  the Tranche C Term Loan Obligations under Section 2.06(b) or
                  the manner of application thereof to the Tranche C Term Loan
                  Obligations under Section 2.06(c), or

                           (ii)     amend or waive the provisions of this
                  Section 11.01(e) or the definition of "Required Tranche C Term
                  Lenders";

         1.15     In Section 11.07 (Successors and Assigns), clause (ii) of the
proviso in subsection (b) is replaced in its entirety to read as follows:

                  (ii) any assignment of a Commitment must be approved by the
         Administrative Agent and, in the case of any assignment of a Revolving
         Commitment, the L/C Issuers (each such approval not to be unreasonably
         withheld or delayed) unless the Person that is the proposed assignee is
         itself a Lender or an Affiliate of a Lender (whether or not the
         proposed assignee would otherwise qualify as an Eligible Assignee);

         1.16     Clause (h) of Section 11.07 (Successors and Assigns) is
amended as follows:

                  (a)      The first sentence thereof is amended and replaced in
         its entirety to read as follows:

                  (i) if any Domestic Swing Line Lender at any time assigns all
                  of its Commitment and Loans pursuant to subsection (b) above,
                  such Swing Line Lender may, upon thirty days' notice to the
                  Borrowers, resign as a Domestic Swing Line Lender,

                  (b)      The third and fourth sentences thereof are amended
         and replaced in their entirety to read as follows:

                  If any Domestic Swing Line Lender resigns as a Domestic Swing
                  Line Lender, it shall retain all the rights of a Domestic
                  Swing Line Lender provided for hereunder with respect to
                  Domestic Swing Line Loans made by it and outstanding as of the
                  effective date of such resignation, including the right to
                  require the Lenders to make Revolving Loans or fund risk
                  participations in outstanding Domestic Swing Line Loans made
                  by it

                                       7
<PAGE>

                  pursuant to Section 2.09(b). In the event of any such
                  resignation as Domestic Swing Line Lender, the Borrowers shall
                  be entitled to appoint from among the Lenders a successor
                  Domestic Swing Line Lender hereunder; provided, however, that
                  no failure by the Borrowers to appoint any such successor
                  shall affect the resignation of such Domestic Swing Line
                  Lender.

         1.17     In Section 11.22 (Power of Attorney), subsections (a) and (b)
are replaced in their entirety to read as follows:

                  (a)      Without limiting any other authority granted to the
         Collateral Agent herein or in any other Credit Document, each Lender
         hereby specifically authorizes the Collateral Agent to enter into, as
         agent on behalf of the Lenders (with the effect that each Lender shall
         become a party thereunder), and/or amend, as agent on behalf of the
         Lenders, (i) any Pledge Agreements governed by German Law and (ii) the
         Parallel Debt Agreement or any substantially similar agreement that
         creates an obligation of the Credit Parties (as debt acknowledgement or
         abstraktes Schuldanerkenntnis) in favor of the Collateral Agent under
         German Law. The authorization granted herein comprises any action or
         declaration the Collateral Agent may deem necessary in connection with
         such Pledge Agreements (including any action or declaration that the
         Collateral Agent deems to be necessary in order to create and continue
         a valid Pledge Agreement governed by German Law), the Parallel Debt
         Agreement or any substantially similar agreement that creates an
         obligation of the Credit Parties (as debt acknowledgement or abstraktes
         Schuldanerkenntnis) in favor of the Collateral Agent under German Law
         (including any action or declaration that the Collateral Agent deems to
         be necessary in order to create and continue valid obligations under
         such agreements governed by German Law). The Collateral Agent is
         explicitly exempt from any restriction to act for various parties to
         such Pledge Agreements, the Parallel Debt Agreement or such similar
         agreements. The Collateral Agent has the power to sub-delegate its
         powers as agent of each of the Lenders granted by this Section 11.22(a)
         to third parties.

                  (b)      The Credit Parties hereby specifically authorize and
         instruct FMCAG to enter into, as agent on behalf of the Credit Parties
         (with the effect that each Credit Party shall become a party
         thereunder), and/or amend, as agent of behalf of the Credit Parties,
         the Parallel Debt Agreement or any substantially similar agreement that
         creates an obligation of the Credit Parties (as debt acknowledgement or
         abstraktes Schuldanerkenntnis) in favor of the Collateral Agent under
         German Law. The authorization granted herein comprises any action or
         declaration FMCAG may deem necessary in connection with such agreements
         (including any action or declaration that FMCAG deems to be necessary
         in order to create and continue valid obligations under such agreements
         governed by German Law). FMCAG has the power to sub-delegate its powers
         as agent of each of the Credit Parties granted by this Section 11.22(b)
         to third parties.

         1.18     Schedule 2.01 (Commitments and Commitment Percentages) will be
amended as of the date of the Tranche C Term Loan Joinder Agreement to set forth
the Tranche C Term Loan Commitments and initial Tranche C Term Loan Commitment
Percentages according to the terms set out in the Tranche C Term Loan Joinder
Agreement.

         1.19     Exhibit A-1 (Form of Loan Notice) is replaced in its entirety
with Exhibit A-1 attached hereto.

         1.20     A new Exhibit C-4 (Form of Tranche C Term Note) is added in
the form of Exhibit C-4 attached hereto.

                                       8
<PAGE>

         1.21     Exhibit G (Form of Assignment and Assumption Agreement) is
replaced in its entirety with Exhibit G attached hereto.

         1.22     A new Exhibit H (Form of Tranche C Term Loan Joinder
Agreement) is added in the form of Exhibit H. -

         SECTION 2  CONSENT. Consent is hereby given to waive the voluntary
prepayment notice provisions of Section 2.06(a)(i) with respect to the voluntary
prepayment in full by the Borrowers to be made to the Tranche B Term Loan on the
date the Tranche C Term Loan is advanced pursuant to the terms of the Credit
Agreement.

         SECTION 3  CONDITIONS PRECEDENT. The effectiveness of this Amendment is
subject to receipt by the Administrative Agent of the following, each in form
and substance satisfactory to the Administrative Agent:

                  (a)      copies of this Amendment executed by each of the
         Borrowers and the Guarantors;

                  (b)      the consent of the Required Lenders;

                  (c)      the consent of the Required Tranche A Term Lenders;

                  (d)      opinions of counsel to the Borrowers and the
         Guarantors; and

                  (e)      payment of the reasonable fees and expenses of
         counsel to the Administrative Agent (including Moore & Van Allen, PLLC
         and foreign counsel) relating to the Credit Agreement and this
         Amendment.

         SECTION 4 MISCELLANEOUS.

         4.1      Except as modified hereby, all of the terms and provisions of
the Credit Agreement (including Schedules and Exhibits) remain in full force and
effect.

         4.2      The Credit Parties hereby affirm (a) the representations and
warranties set forth in Article VI of the Credit Agreement are true and correct
as of the date hereof (except those which expressly relate to an earlier period)
and (b) no Default or Event of Default exists as of the date hereof.

         4.3      The Credit Parties hereby affirm the liens and security
interests created and granted in the Credit Documents and agree that this
Amendment is not intended to adversely affect or impair such liens and security
interests in any manner.

         4.4      Each Guarantor (a) acknowledges and consents to all of the
terms and conditions of this Amendment, (b) affirms such Guarantor's obligations
under the Credit Documents and (c) agrees that this Amendment does not operate
to reduce or discharge such Guarantor's obligations under the Credit Documents.

         4.5      FMCAG agrees to pay all reasonable fees and expenses of the
Administrative Agent in connection with the preparation, execution and delivery
of this Amendment, including without limitation the reasonable fees and expenses
of Moore & Van Allen, PLLC and of foreign counsel to the Administrative Agent.

                                       9
<PAGE>

         4.6      This Amendment may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed an original and it
shall not be necessary in making proof of this Amendment to produce or account
for more than one such counterpart. Delivery by any party hereto of an executed
counterpart of this Amendment by facsimile shall be effective as such party's
original executed counterpart and shall constitute a representation that such
party's original executed counterpart will be delivered promptly.

         4.7      THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

                  [remainder of page intentionally left blank]

                                       10
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Amendment to be duly executed and delivered as of the date first above
written.

BORROWERS AND GUARANTORS:          FRESENIUS MEDICAL CARE AG, a German
                                   corporation, as a Borrower and as a
                                   Guarantor

                                   By: /s/ Dr. Emanuele Gatti
                                       ---------------------------------
                                   Name: Dr. Emanuele Gatti
                                   Title: Member of the Management Board

                                   By: /s/ Dr. Rainer Runte
                                       ----------------------------------------
                                   Name: Dr. Rainer Runte
                                   Title: Deputy Member of the Management Board

                                   FRESENIUS MEDICAL CARE HOLDINGS, INC., a New
                                   York corporation, as a Borrower and as a
                                   Guarantor

                                   By: /s/ Mark Fawcett
                                       ----------------------------------------
                                   Name: Mark Fawcett
                                   Title: Assistant Treasurer

                                   FMC FINANCE II S.a.r.l., a private limited
                                   company (societe a responsabilite limitee)
                                   organized under the laws of Luxembourg, as a
                                   Borrower and as a Guarantor

                                   By: /s/ Dr. Andrea Stopper
                                      -----------------------------------------
                                   Name: Dr. Andrea Stopper
                                   Title: Member of the Board of Directors

                                   By: /s/ Gabriele Dux
                                       ----------------------------------------
                                   Name: Gabriele Dux
                                   Title: Member of the Board of Directors

                                                       FRESENIUS MEDICAL CARE AG
                                                                 AMENDMENT NO. 1

<PAGE>

GUARANTORS:                        NATIONAL MEDICAL CARE, INC., a Delaware
                                   corporation

                                   By: /s/ Mark Fawcett
                                       ----------------------------------------
                                   Name: Mark Fawcett
                                   Title: Treasurer

                                   FRESENIUS MEDICAL CARE DEUTSCHLAND GmbH, a
                                   German corporation

                                   By: /s/ Roberto Fuste
                                       ----------------------------------------
                                   Name: Roberto Fuste
                                   Title: Member of the Board of Directors

                                   By: /s/ Rolf Groos
                                       ----------------------------------------
                                   Name: Rolf Groos
                                   Title: Member of the Board of Directors

                                   FMC TRUST FINANCE S.a.r.l. LUXEMBOURG, a
                                   private limited company (societe a
                                   responsabilite limitee) organized under the
                                   laws of Luxembourg

                                   By: /s/ Dr. Andrea Stopper
                                       ----------------------------------------
                                   Name: Dr. Andrea Stopper
                                   Title: Managing Director

                                   FMC TRUST FINANCE S.a.r.l. LUXEMBOURG-III, a
                                   private limited company (societe a
                                   responsabilite limitee) organized under the
                                   laws of Luxembourg

                                   By: /s/ Gabriele Dux
                                       ----------------------------------------
                                   Name: Gabriele Dux
                                   Title: Managing Director

<PAGE>

GUARANTORS:                        BIO-MEDICAL APPLICATIONS MANAGEMENT COMPANY,
                                   INC., a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF ARIZONA, INC., a
                                   Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF CALIFORNIA, INC.,
                                   a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF LOUISIANA, LLC,
                                   a Delaware limited liability company,
                                   BIO-MEDICAL APPLICATIONS OF MAINE, INC., a
                                   Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF NEW MEXICO, INC.,
                                   a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF NEW YORK, INC.,
                                   a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF NORTH CAROLINA,
                                   INC., a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF PENNSYLVANIA,
                                   INC., a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF SOUTH CAROLINA,
                                   INC., a Delaware corporation,
                                   BIO-MEDICAL APPLICATIONS OF TEXAS, INC., a
                                   Delaware corporation,
                                   EVEREST HEALTHCARE HOLDINGS, INC., a Delaware
                                   corporation,
                                   FRESENIUS USA MANUFACTURING, INC., a Delaware
                                   corporation,
                                   FRESENIUS USA MARKETING, INC., a Delaware
                                   corporation,
                                   FRESENIUS USA, INC., a Massachusetts
                                   corporation,
                                   SPECTRA LABORATORIES, INC., a Nevada c
                                   orporation

                                   By: /s/ Mark Fawcett
                                       -----------------------------------------
                                   Name: Mark Fawcett
                                   Title: Treasurer
                                            for each of the foregoing

                                                       FRESENIUS MEDICAL CARE AG
                                                                 AMENDMENT NO. 1

<PAGE>

ADMINISTRATIVE AGENT:              BANK OF AMERICA, N.A., as Administrative
                                   Agent for and on behalf of the Lenders

                                   By: /s/ Cassandra McCain
                                       ----------------------------------------
                                   Name: Cassandra McCain
                                   Title: Officer

                                                       FRESENIUS MEDICAL CARE AG
                                                                 AMENDMENT NO. 1

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