Document:

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                                                                 Exhibit 10.17.4

                     AMENDED AND RESTATED SECURITY AGREEMENT

         THIS AMENDED AND RESTATED SECURITY AGREEMENT (this "Security
Agreement"), dated as of October 22, 2003, is by and among the parties
identified as "GRANTORS" on the signature pages hereto and such other parties as
may become Grantors hereunder after the date hereof (individually a "Grantor",
and collectively the "Grantors") and BANK OF AMERICA, N.A., as collateral agent
(in such capacity, the "Collateral Agent") for the holders of the Secured
Obligations referenced below.

                              W I T N E S S E T H

         WHEREAS, a revolving credit facility (the "Existing Credit Facility")
was established in favor of AMERIGROUP Corporation, a Delaware corporation (the
"Borrower"), pursuant to the terms of that credit agreement dated as of December
14, 2001 (as amended or modified through the Closing Date, the "Existing Credit
Agreement") among the Borrower, certain of its subsidiaries and affiliates
identified therein, as guarantors, the lenders identified therein and Bank of
America, N.A., as administrative agent thereunder; and

         WHEREAS, the Lenders have agreed to replace, refinance and increase the
Existing Credit Facility pursuant to that Amended and Restated Credit Agreement
dated as of the date hereof (as amended, modified, increased, extended, renewed
or replaced, the "Credit Agreement") among the Borrower, the Guarantors
identified therein, the Lenders party thereto and Bank of America, N.A., as
Administrative Agent;

         WHEREAS, this Security Agreement is required under the terms of the
Credit Agreement;

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

         1.       Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings provided in the Credit Agreement. In addition,
the following terms, which are defined in the UCC as in effect in the State of
New York on the date hereof, are used herein as so defined: Accession, Account,
As-Extracted Collateral, Chattel Paper, Commercial Tort Claim, Commingled Goods,
Consumer Goods, Deposit Account, Document, Equipment, Farm Products, Fixtures,
General Intangible, Goods, Instrument, Inventory, Investment Property,
Letter-of-Credit Right, Manufactured Home, Proceeds, Software, Standing Timber,
Supporting Obligation and Tangible Chattel Paper. As used herein:

                  "Collateral" has the meaning provided in Section 2 hereof.

                  "Copyright License" means any written agreement, naming any
         Grantor as licensor, granting any right under any Copyright including,
         without limitation, any thereof referred to in Schedule 1(b) attached
         hereto.

                  "Copyrights" means (a) all registered United States copyrights
         in all Works, now existing or hereafter created or acquired, all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, registrations,
         recordings and applications in the United States Copyright Office
         including, without limitation, any thereof referred to in Schedule 1(b)
         attached hereto, and (b) all renewals thereof including, without
         limitation, any thereof referred to in Schedule 1(b) attached hereto.

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                  "Patent License" means any agreement, whether written or oral,
         providing for the grant by or to a Grantor of any right to manufacture,
         use or sell any invention covered by a Patent, including, without
         limitation, any thereof referred to in Schedule 1(b) attached hereto.

                  "Patents" means (a) all letters patent of the United States or
         any other country and all reissues and extensions thereof, including,
         without limitation, any letters patent referred to in Schedule 1(b)
         attached hereto, and (b) all applications for letters patent of the
         United States or any other country and all divisions, continuations and
         continuations-in-part thereof, including, without limitation, any
         thereof referred to in Schedule 1(b) attached hereto.

                  "Secured Obligations" means, without duplication, (i) all
         advances to, and debts, liabilities, obligations, covenants and duties
         of, any Credit Party arising under any Credit Document or otherwise
         with respect to any Loan or Letter of Credit, whether direct or
         indirect (including those acquired by assumption), absolute or
         contingent, due or to become due, now existing or hereafter arising and
         including interest and fees that accrue after the commencement by or
         against any Credit Party of any proceeding under any Debtor Relief Laws
         naming such Persons as the debtor in such proceeding, regardless of
         whether such interest and fees are allowed claims in such proceeding,
         (ii) all obligations under any Swap Contract of any Credit Party to
         which a Lender or any Affiliate of a Lender is a party and (iii) all
         costs and expenses incurred in connection with enforcement and
         collection of the Secured Obligations, including Attorney Costs.

                  "Trademark License" means any agreement, written or oral,
         providing for the grant by or to a Grantor of any right to use any
         Trademark, including, without limitation, any thereof referred to in
         Schedule 1(b) attached hereto.

                  "Trademarks" means (a) all trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos and other source or business identifiers,
         and the goodwill associated therewith, now existing or hereafter
         adopted or acquired, all registrations and recordings thereof, and all
         applications in connection therewith, whether in the United States
         Patent and Trademark Office or in any similar office or agency of the
         United States, any state thereof or any other country or any political
         subdivision thereof, or otherwise, including, without limitation, any
         thereof referred to in Schedule 1(b) attached hereto, and (b) all
         renewals thereof.

                  "UCC" means the Uniform Commercial Code of the State of New
         York or its equivalent in other applicable jurisdictions, as in effect
         from time to time (unless otherwise noted).

                  "Work" means any work that is subject to copyright protection
         pursuant to Title 17 of the United States Code.

         2.       Grant of Security Interest in the Collateral. To secure the
prompt payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Secured Obligations,
each Grantor hereby grants to the Collateral Agent, for the benefit of the
holders of the Secured Obligations, a continuing security interest in, and a
right to set off against, any and all right, title and interest of such Grantor
in and to all personal property of the Grantors of whatever type or description,
whether now owned or existing or owned, acquired, or arising hereafter
(collectively, the "Collateral"), including, without limitation, the following:

                  (a)      all Accounts;

                  (b)      all cash and currency;

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                  (c)      all Chattel Paper;

                  (d)      all Commercial Tort Claims identified on Schedule
         2(d) attached hereto;

                  (e)      all Copyrights;

                  (f)      all Copyright Licenses;

                  (g)      all Deposit Accounts;

                  (h)      all Documents;

                  (i)      all Equipment;

                  (j)      all Fixtures;

                  (k)      all General Intangibles;

                  (l)      all Instruments;

                  (m)      all Inventory;

                  (n)      all Investment Property (other than such Grantor's
         ownership interest in any Foreign Subsidiary to the extent not required
         to be pledged to secure the Obligations pursuant to Section 7.13 of the
         Credit Agreement);

                  (o)      all Letter-of-Credit Rights;

                  (p)      all Patents;

                  (q)      all Patent Licenses;

                  (r)      all Software;

                  (s)      all Supporting Obligations;

                  (t)      all Trademarks;

                  (u)      all Trademark Licenses; and

                  (v)      to the extent not otherwise included, all Accessions
         and all Proceeds of any and all of the foregoing;

         provided that notwithstanding anything contained in this Security
         Agreement to the contrary, the security interests granted under this
         Security Agreement shall not extend to any lease, license or other
         contract if the grant of a security interest therein in the manner
         contemplated by this Security Agreement is, under the terms thereof and
         under applicable law, (x) prohibited and (y) would result in the
         termination thereof, unless consent from the relevant party or parties
         has been obtained and in any case only to the extent that such
         prohibition is not (or could not be) rendered ineffective pursuant to
         the UCC or any other applicable law (including Debtor Relief Laws) or
         principles of equity.

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                  The Grantors and the Collateral Agent, on behalf of the
         holders of the Secured Obligations, hereby acknowledge and agree that
         the security interest created hereby in the Collateral (i) constitutes
         continuing collateral security for all of the Secured Obligations,
         whether now existing or hereafter arising and (ii) is not to be
         construed as an assignment of any Copyrights, Copyright Licenses,
         Patents, Patent Licenses, Trademarks or Trademark Licenses.

         3.       Provisions Relating to Accounts.

                  (a)      Anything herein to the contrary notwithstanding, each
         of the Grantors shall remain liable under each of the Accounts to
         observe and perform all the conditions and obligations to be observed
         and performed by it thereunder, all in accordance with the terms of any
         agreement giving rise to each such Account. Neither the Collateral
         Agent nor any holder of the Secured Obligations shall have any
         obligation or liability under any Account (or any agreement giving rise
         thereto) by reason of or arising out of this Security Agreement or the
         receipt by the Collateral Agent or any holder of the Secured
         Obligations of any payment relating to such Account pursuant hereto,
         nor shall the Collateral Agent or any holder of the Secured Obligations
         be obligated in any manner to perform any of the obligations of a
         Grantor under or pursuant to any Account (or any agreement giving rise
         thereto), to make any payment, to make any inquiry as to the nature or
         the sufficiency of any payment received by it or as to the sufficiency
         of any performance by any party under any Account (or any agreement
         giving rise thereto), to present or file any claim, to take any action
         to enforce any performance or to collect the payment of any amounts
         which may have been assigned to it or to which it may be entitled at
         any time or times.

                  (b)      (i) Once during each calendar year and (ii) after the
         occurrence and during the continuation of an Event of Default, at any
         time and at the expense of the Grantors, the Collateral Agent shall
         have the right, but not the obligation, to make test verifications of
         the Accounts in any manner and through any medium that it reasonably
         considers advisable, and the Grantors shall furnish all such assistance
         and information as the Collateral Agent may reasonably require in
         connection with such test verifications. At any time and from time to
         time, upon the Collateral Agent's reasonable request and at the expense
         of the Grantors, the Grantors shall cause independent public
         accountants or others satisfactory to the Collateral Agent to furnish
         to the Collateral Agent reports showing reconciliations, aging and test
         verifications of, and trial balances for, the Accounts. The Collateral
         Agent in its own name or in the name of others may communicate with
         account debtors on the Accounts to verify with them to the Collateral
         Agent's satisfaction the existence, amount and terms of any Accounts.

         4.       Representations and Warranties. Each Grantor hereby represents
and warrants to the Collateral Agent, for the benefit of the holders of the
Secured Obligations, that so long as any of the Secured Obligations remains
outstanding and until all of the commitments relating thereto have been
terminated:

                  (a)      Legal Name; Chief Executive Office.

                           (i)      Each Grantor's exact legal name, state of
                  incorporation or formation, principal place of business and
                  chief executive office are (and for the four months prior to
                  the date hereof has been) as set forth on Schedule 4(a)(i)
                  attached hereto.

                           (ii)     Other than as set forth on Schedule 4(a)(ii)
                  attached hereto, no Grantor has been party to a merger,
                  consolidation or other change in structure or used any
                  tradename in the four months prior to the date hereof.

                  (b)      Ownership. Each Grantor is the legal and beneficial
         owner of its Collateral and has the right to pledge, sell, assign or
         transfer the same.

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                  (c)      Security Interest/Priority. This Security Agreement
         is effective to create in favor of the Collateral Agent, for the
         ratable benefit of the holders of the Secured Obligations, a legal,
         valid and enforceable security interest in the Collateral identified
         herein owned by the Grantors and, when financing statements in
         appropriate form are filed in the appropriate offices for the
         jurisdiction of organization or formation for such Grantors, the
         Security Agreement shall constitute a fully perfected Lien on, and
         security interest in, all right, title and interest of the Grantors in
         such Collateral that may be perfected by filing, recording or
         registering a financing statement under the UCC, in each case prior and
         superior in right to any other Lien on any Collateral other than
         Permitted Liens.

                  (d)      Types of Collateral. None of the Collateral consists
         of, or is the Accessions or the Proceeds of, As-Extracted Collateral,
         Consumer Goods, Farm Products, Manufactured Homes, or Standing Timber.

                  (e)      Accounts. (i) Each Account of the Grantors and the
         papers and documents relating thereto are genuine and in all material
         respects what they purport to be, (ii) each Account arises out of (A) a
         bona fide sale of goods sold and delivered by such Grantor (or is in
         the process of being delivered) or (B) services theretofore actually
         rendered by such Grantor to, the account debtor named therein, (iii) no
         Account of a Grantor is evidenced by any Instrument or Chattel Paper
         unless such Instrument or Chattel Paper has been theretofore endorsed
         over and delivered to, or submitted to the control of, the Collateral
         Agent and (iv) no surety bond was required or given in connection with
         any Account of a Grantor or the contracts or purchase orders out of
         which they arose.

                  (f)      Inventory. No Inventory owned by any Grantor is held
         by any other Person pursuant to consignment, sale or return, sale on
         approval or similar arrangement.

                  (g)      Copyrights, Patents and Trademarks.

                           (i)      Schedule 1(b) attached hereto includes all
                  Copyrights, Copyright Licenses, Patents, Patent Licenses,
                  Trademarks and Trademark Licenses that are the subject of
                  registrations and applications and are owned by any Grantor in
                  its own name, or to which any Grantor is a party, as of the
                  date hereof.

                           (ii)     To the best of each Grantor's knowledge,
                  each material Copyright, Patent and Trademark of such Grantor
                  is valid, subsisting, unexpired, enforceable and has not been
                  abandoned.

                           (iii)    Except as set forth in Schedule 1(b)
                  attached hereto, none of the Copyrights, Patents and
                  Trademarks owned by any Grantor is the subject of any
                  licensing or franchise agreement.

                           (iv)     To the best of each Grantor's knowledge, no
                  holding, decision or judgment has been rendered by any
                  Governmental Authority which would limit, cancel or question
                  the validity of any material Copyright, Patent or Trademark
                  owned by any Grantor.

                           (v)      Other than as set forth on Schedule 1(b)
                  hereto, no action or proceeding is pending seeking to limit,
                  cancel or question the validity of any material Copyright,
                  Patent or Trademark owned by any Grantor. None of such actions
                  or proceedings, if adversely determined, could reasonably be
                  expected to have a material adverse effect on the value of any
                  such Copyright, Patent or Trademark.

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                           (vi)     All applications pertaining to the
                  Copyrights, Patents and Trademarks of each Grantor have been
                  duly and properly filed, and all registrations or letters
                  pertaining to such Copyrights, Patents and Trademarks have
                  been duly and properly filed and issued, and to the best of
                  each Grantor's knowledge, all of such Copyrights, Patents and
                  Trademarks are valid and enforceable.

                           (vii)    To the best of each Grantor's knowledge, no
                  Grantor has made any assignment or agreement in conflict with
                  the security interest in the Copyrights, Patents or Trademarks
                  of each Grantor hereunder.

         5.       Covenants. Each Grantor covenants that, so long as any of the
Secured Obligations remains outstanding and until all of the commitments
relating thereto have been terminated, such Grantor shall:

                  (a)      Other Liens. Defend the Collateral against the claims
         and demands of all other parties claiming an interest therein, keep the
         Collateral free from all Liens, except for Permitted Liens, and not
         sell, exchange, transfer, assign, lease or otherwise dispose of the
         Collateral or any interest therein, except as permitted under the
         Credit Agreement.

                  (b)      Preservation of Collateral. Keep the Collateral in
         good order, condition and repair and not use the Collateral in
         violation of the provisions of this Security Agreement or any other
         agreement relating to the Collateral or any policy insuring the
         Collateral or any applicable statute, law, bylaw, rule, regulation or
         ordinance.

                  (c)      Instruments/Tangible Chattel Paper/Documents. If any
         amount payable under or in connection with any of the Collateral shall
         be or become evidenced by any Instrument or Tangible Chattel Paper, or
         if any property constituting Collateral shall be stored or shipped
         subject to a Document, such Grantor shall ensure that such Instrument,
         Tangible Chattel Paper or Document is either in the possession of such
         Grantor at all times or, if requested by the Collateral Agent, is
         immediately delivered to the Collateral Agent, duly endorsed in a
         manner satisfactory to the Collateral Agent. Such Grantor shall ensure
         that any Collateral consisting of Tangible Chattel Paper is marked with
         a legend acceptable to the Collateral Agent indicating the Collateral
         Agent's security interest in such Tangible Chattel Paper.

                  (d)      Change in Structure, Location or Type. Not, without
         providing ten (10) days prior written notice to the Collateral Agent
         and without filing such financing statements and amendments to any
         previously filed financing statements as the Collateral Agent may
         require, change its name or state of formation or be party to a merger,
         consolidation or other change in structure or use any tradename other
         than as set forth on Schedule 4(a)(ii) attached hereto.

                  (e)      Inspection. Upon reasonable notice, and during
         reasonable hours, at all times allow the Collateral Agent or its
         representatives to visit and inspect the Collateral as set forth in
         Section 7.11 of the Credit Agreement.

                  (f)      Authorization. Authorize the Collateral Agent to
         prepare and file such financing statements (including renewal
         statements), amendments and supplements or such other instruments as
         the Collateral Agent may from time to time reasonably deem necessary,
         appropriate or convenient in order to perfect and maintain the security
         interests granted hereunder in accordance with the UCC.

                  (g)      Perfection of Security Interest. Execute and deliver
         to the Collateral Agent such agreements, assignments or instruments
         (including affidavits, notices, reaffirmations and amendments and
         restatements of existing documents, as the Collateral Agent may
         reasonably request) and do all such other things as the Collateral
         Agent may reasonably deem necessary,

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         appropriate or convenient (i) to assure to the Collateral Agent its
         security interests hereunder, including (A) such financing statements
         (including renewal statements), amendments and supplements or such
         other instruments as the Collateral Agent may from time to time
         reasonably request in order to perfect and maintain the security
         interests granted hereunder in accordance with the UCC, (B) with regard
         to Copyrights, a Notice of Grant of Security Interest in Copyrights for
         filing with the United States Copyright Office in the form of Schedule
         5(f)(i) attached hereto, (C) with regard to Patents, a Notice of Grant
         of Security Interest in Patents for filing with the United States
         Patent and Trademark Office in the form of Schedule 5(f)(ii) attached
         hereto and (D) with regard to Trademarks, a Notice of Grant of Security
         Interest in Trademarks for filing with the United States Patent and
         Trademark Office in the form of Schedule 5(f)(iii) attached hereto,
         (ii) to consummate the transactions contemplated hereby and (iii) to
         otherwise protect and assure the Collateral Agent of its rights and
         interests hereunder. To that end, each Grantor agrees that the
         Collateral Agent may file one or more financing statements (with
         collateral descriptions broader and/or less specific than the
         description of the Collateral contained herein) disclosing the
         Collateral Agent's security interest in any or all of the Collateral of
         such Grantor without such Grantor's signature thereon, and further each
         Grantor also hereby irrevocably makes, constitutes and appoints the
         Collateral Agent, its nominee or any other Person whom the Collateral
         Agent may designate, as such Grantor's attorney-in-fact with full power
         and for the limited purpose to sign in the name of such Grantor any
         such financing statements (including renewal statements), amendments
         and supplements, notices or any similar documents which in the
         Collateral Agent's reasonable discretion would be necessary,
         appropriate or convenient in order to perfect and maintain perfection
         of the security interests granted hereunder, such power, being coupled
         with an interest, being and remaining irrevocable so long as the
         Secured Obligations remain unpaid and until the commitments relating
         thereto shall have been terminated. Each Grantor hereby agrees that a
         carbon, photographic or other reproduction of this Security Agreement
         or any such financing statement is sufficient for filing as a financing
         statement by the Collateral Agent without notice thereof to such
         Grantor wherever the Collateral Agent may in its sole discretion desire
         to file the same. In the event for any reason the law of any
         jurisdiction other than New York becomes or is applicable to the
         Collateral of any Grantor or any part thereof, or to any of the Secured
         Obligations, such Grantor agrees to execute and deliver all such
         instruments and to do all such other things as the Collateral Agent in
         its sole discretion reasonably deems necessary, appropriate or
         convenient to preserve, protect and enforce the security interests of
         the Collateral Agent under the law of such other jurisdiction (and, if
         a Grantor shall fail to do so promptly upon the request of the
         Collateral Agent, then the Collateral Agent may execute any and all
         such requested documents on behalf of such Grantor pursuant to the
         power of attorney granted hereinabove). If any Collateral is in the
         possession or control of a Grantor's agents and the Collateral Agent so
         requests, such Grantor agrees to notify such agents in writing of the
         Collateral Agent's security interest therein and, upon the Collateral
         Agent's request, instruct them to hold all such Collateral for the
         account of the holders of the Secured Obligations and subject to the
         Collateral Agent's instructions. Each Grantor agrees to mark its books
         and records to reflect the security interest of the Collateral Agent in
         the Collateral.

                  (h)      Control. Execute and deliver all agreements,
         assignments, instruments or other documents as the Collateral Agent
         shall reasonably request for the purpose of obtaining and maintaining
         control within the meaning of the UCC with respect to any Collateral
         consisting of Deposit Accounts, Investment Property, Letter-of-Credit
         Rights and Electronic Chattel Paper.

                  (i)      Collateral held by Warehouseman, Bailee, etc. If any
         Collateral is at any time in the possession or control of a
         warehouseman, bailee, agent or processor of such Grantor, (i) notify
         the Collateral Agent of such possession or control, (ii) notify such
         Person of the Collateral Agent's security interest in such Collateral,
         (iii) instruct such Person to hold all such Collateral for the
         Collateral Agent's account and subject to the Collateral Agent's
         instructions and (iv) use its best

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         efforts to obtain an acknowledgment from such Person that it is holding
         such Collateral for the benefit of the Collateral Agent.

                  (j)      Treatment of Accounts. Not grant or extend the time
         for payment of any Account, or compromise or settle any Account for
         less than the full amount thereof, or release any Person or property,
         in whole or in part, from payment thereof, or allow any credit or
         discount thereon, other than as normal and customary in the ordinary
         course of a Grantor's business, as required by law or as would not
         reasonably be expected to have a Material Adverse Effect.

                  (k)      Covenants Relating to Copyrights. Except as could not
         reasonably be expected to have a Material Adverse Effect:

                           (i)      Not do any act or knowingly omit to do any
                  act whereby any material Copyright may become invalidated and
                  (A) not do any act, or knowingly omit to do any act, whereby
                  any material Copyright may become injected into the public
                  domain; (B) notify the Collateral Agent immediately if it
                  knows that any material Copyright may become injected into the
                  public domain or of any adverse determination or development
                  (including, without limitation, the institution of, or any
                  such determination or development in, any court or tribunal in
                  the United States or any other country) regarding a Grantor's
                  ownership of any such Copyright or its validity; (C) take all
                  necessary steps as it shall deem appropriate under the
                  circumstances, to maintain and pursue each application (and to
                  obtain the relevant registration) and to maintain each
                  registration of each material Copyright owned by a Grantor
                  including, without limitation, filing of applications for
                  renewal where necessary; and (D) promptly notify the
                  Collateral Agent of any material infringement of any material
                  Copyright of a Grantor of which it becomes aware and take such
                  actions as it shall reasonably deem appropriate under the
                  circumstances to protect such Copyright, including, where
                  appropriate, the bringing of suit for infringement, seeking
                  injunctive relief and seeking to recover any and all damages
                  for such infringement.

                           (ii)     Not make any assignment or agreement in
                  conflict with the security interest in the Copyrights of each
                  Grantor hereunder;

                  (l)      Covenants Relating to Patents and Trademarks. Except
         as could not reasonably be expected to have a Material Adverse Effect:

                           (i)      (A) Continue to use each Trademark on each
                  and every trademark class of goods applicable to its current
                  line as reflected in its current catalogs, brochures and price
                  lists in order to maintain such Trademark in full force free
                  from any claim of abandonment for non-use unless such Grantor,
                  in the exercise of its reasonable business judgment,
                  determines not to continue the line or the use of such
                  Trademark with respect to such line, (B) maintain as in the
                  past the quality of products and services offered under such
                  Trademark, (C) employ such Trademark with the appropriate
                  notice of registration, (D) not adopt or use any mark which is
                  confusingly similar or a colorable imitation of such Trademark
                  unless the Collateral Agent, for the ratable benefit of the
                  holders of the Secured Obligations, shall obtain a perfected
                  security interest in such mark pursuant to this Security
                  Agreement, and (E) not (and not permit any licensee or
                  sublicensee thereof to) do any act or knowingly omit to do any
                  act whereby any material Trademark may become invalidated.

                           (ii)     Not do any act, or omit to do any act,
                  whereby any material Patent may become abandoned or dedicated.

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                           (iii)    Notify the Collateral Agent and the holders
                  of the Secured Obligations promptly if it knows that any
                  application or registration relating to any material Patent or
                  Trademark is reasonably likely to become abandoned or
                  dedicated, or of any material adverse determination or
                  development (including, without limitation, the institution
                  of, or any such determination or development in, any
                  proceeding in the United States Patent and Trademark Office or
                  any court or tribunal in any country) regarding a Grantor's
                  ownership of any material Patent or Trademark or its right to
                  register and/or maintain the same.

                           (iv)     Whenever a Grantor, either by itself or
                  through an agent, employee, licensee or designee, shall file
                  an application for the registration of any Patent or Trademark
                  with the United States Patent and Trademark Office or any
                  similar office or agency in any other country or any political
                  subdivision thereof, a Grantor shall report such filing to the
                  Collateral Agent and the holders of the Secured Obligations
                  within five Business Days after the last day of the fiscal
                  quarter in which such filing occurs. Upon request of the
                  Collateral Agent, a Grantor shall execute and deliver any and
                  all agreements, instruments, documents and papers as the
                  Collateral Agent may reasonably request to evidence the
                  security interest of the Collateral Agent and the holders of
                  the Secured Obligations in any Patent or Trademark and the
                  goodwill and general intangibles of a Grantor relating thereto
                  or represented thereby.

                           (v)      Take all reasonable and necessary steps,
                  including, without limitation, in any proceeding before the
                  United States Patent and Trademark Office, or any similar
                  office or agency in any other country or any political
                  subdivision thereof, to maintain and pursue each application
                  (and to obtain the relevant registration) and to maintain each
                  registration of the Patents and Trademarks, including, without
                  limitation, filing of applications for renewal, affidavits of
                  use and affidavits of incontestability unless such Grantor, in
                  the exercise of its reasonable business judgment, decides to
                  abandon such Patent or Trademark.

                           (vi)     Promptly notify the Collateral Agent and the
                  holders of the Secured Obligations after it learns that any
                  material Patent or Trademark included in the Collateral is
                  infringed, misappropriated or diluted by a third party in any
                  material respect and promptly sue for infringement,
                  misappropriation or dilution, seek injunctive relief where
                  appropriate and recover any and all damages for such
                  infringement, misappropriation or dilution, or take such other
                  actions as it shall reasonably deem appropriate under the
                  circumstances to protect such Patent or Trademark.

                           (vii)    Not make any assignment or agreement in
                  conflict with the security interest in the Patents or
                  Trademarks of each Grantor hereunder.

                  (m)      New Patents, Copyrights and Trademarks. Within five
         Business Days after the last day of the fiscal quarter in which a new
         application for Copyrights, Patents or Trademarks is made by such
         Grantor, provide the Collateral Agent with (i) a listing of all such
         applications, if any (together with a listing of the issuance of
         registrations or letters on present applications), which new
         applications and issued registrations or letters shall be subject to
         the terms and conditions hereunder, and (ii) (A) with respect to
         Copyrights, a duly executed Notice of Security Interest in Copyrights,
         (B) with respect to Patents, a duly executed Notice of Security
         Interest in Patents, (C) with respect to Trademarks, a duly executed
         Notice of Security Interest in Trademarks or (D) such other duly
         executed documents as the Collateral Agent may reasonably request in a
         form acceptable to counsel for the Collateral Agent and suitable for
         recording to evidence the security interest in the Copyright, Patent or
         Trademark which is the subject of such new application.

                                       9
<PAGE>

                  (n)      Insurance. Insure, repair and replace the Collateral
         of such Grantor as set forth in the Credit Agreement. All insurance
         proceeds shall be subject to the security interest of the Collateral
         Agent hereunder.

                  (o)      Commercial Tort Claims.

                           (i)      Promptly notify the Collateral Agent in
                  writing of the initiation of any Commercial Tort Claim before
                  any Governmental Authority by or in favor of such Grantor or
                  any of its Subsidiaries.

                           (ii)     Execute and deliver such statements,
                  documents and notices and do and cause to be done all such
                  things as the Collateral Agent may reasonably deem necessary,
                  appropriate or convenient, or as are required by law, to
                  create, perfect and maintain the Collateral Agent's security
                  interest in any Commercial Tort Claim.

         6.       Advances by Holders of the Secured Obligations. On failure of
any Grantor to perform any of the covenants and agreements contained herein, the
Collateral Agent may, at its sole option and in its sole discretion, perform the
same and in so doing may expend such sums as the Collateral Agent may reasonably
deem advisable in the performance thereof, including, without limitation, the
payment of any insurance premiums, the payment of any taxes, a payment to obtain
a release of a Lien or potential Lien, expenditures made in defending against
any adverse claim and all other expenditures which the Collateral Agent or the
holders of the Secured Obligations may make for the protection of the security
hereof or which may be compelled to make by operation of law. All such sums and
amounts so expended shall be repayable by the Grantors on a joint and several
basis (subject to Section 25 hereof) promptly upon timely notice thereof and
demand therefor, shall constitute additional Secured Obligations and shall bear
interest from the date said amounts are expended at the Default Rate for
Revolving Loans that are Base Rate Loans. No such performance of any covenant or
agreement by the Collateral Agent or the holders of the Secured Obligations on
behalf of any Grantor, and no such advance or expenditure therefor, shall
relieve the Grantors of any default under the terms of this Security Agreement,
the other Credit Documents or any other documents relating to the Secured
Obligations. The holders of the Secured Obligations may make any payment hereby
authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim
except to the extent such payment is being contested in good faith by a Grantor
in appropriate proceedings and against which adequate reserves are being
maintained in accordance with GAAP.

         7.       Remedies.

                  (a)      General Remedies. Upon the occurrence of an Event of
         Default and during the continuation thereof, the Collateral Agent and
         the holders of the Secured Obligations shall have, in addition to the
         rights and remedies provided herein, in the Credit Documents, in any
         other documents relating to the Secured Obligations, or by law
         (including, without limitation, levy of attachment and garnishment),
         the rights and remedies of a secured party under the UCC of the
         jurisdiction applicable to the affected Collateral and, further, the
         Collateral Agent may, with or without judicial process or the aid and
         assistance of others, (i) enter on any premises on which any of the
         Collateral may be located and, without resistance or interference by
         the Grantors, take possession of the Collateral, (ii) dispose of any
         Collateral on any such premises, (iii) require the Grantors to assemble
         and make available to the Collateral Agent at the expense of the
         Grantors any Collateral at any place and time designated by the
         Collateral Agent which is reasonably convenient to both parties, (iv)
         remove any Collateral from any such premises for the purpose of
         effecting sale or other disposition thereof, and/or (v) without demand
         and without advertisement, notice, hearing or process of law, all of
         which each of the Grantors hereby waives to the fullest extent
         permitted by law, at any place and time or

                                       10
<PAGE>

         times, sell and deliver any or all Collateral held by or for it at
         public or private sale, by one or more contracts, in one or more
         parcels, for cash, upon credit or otherwise, at such prices and upon
         such terms as the Collateral Agent deems advisable, in its sole
         discretion (subject to any and all mandatory legal requirements).
         Neither the Collateral Agent's compliance with applicable law nor its
         disclaimer of warranties relating to the Collateral shall be considered
         to adversely affect the commercial reasonableness of any sale. In
         addition to all other sums due the Collateral Agent and the holders of
         the Secured Obligations with respect to the Secured Obligations, the
         Grantors shall pay the Collateral Agent and each of the holders of the
         Secured Obligations all reasonable documented costs and expenses
         incurred by the Collateral Agent or any such holder of the Secured
         Obligations (including Attorney Costs and court costs) in obtaining or
         liquidating the Collateral, in enforcing payment of the Secured
         Obligations, or in the prosecution or defense of any action or
         proceeding by or against the Collateral Agent or the holders of the
         Secured Obligations or the Grantors concerning any matter arising out
         of or connected with this Security Agreement, any Collateral or the
         Secured Obligations, including, without limitation, any of the
         foregoing arising in, arising under or related to a case under Debtor
         Relief Laws. To the extent the rights of notice cannot be legally
         waived hereunder, each Grantor agrees that any requirement of
         reasonable notice shall be met if such notice is personally served on
         or mailed, postage prepaid, to the Borrower in accordance with the
         notice provisions of Section 11.02 of the Credit Agreement at least ten
         Business Days before the time of sale or other event giving rise to the
         requirement of such notice. The Collateral Agent and the holders of the
         Secured Obligations shall not be obligated to make any sale or other
         disposition of the Collateral regardless of notice having been given.
         To the extent permitted by law, any holder of the Secured Obligations
         may be a purchaser at any such sale. To the extent permitted by
         applicable law, each of the Grantors hereby waives all of its rights of
         redemption with respect to any such sale. Subject to the provisions of
         applicable law, the Collateral Agent and the holders of the Secured
         Obligations may postpone or cause the postponement of the sale of all
         or any portion of the Collateral by announcement at the time and place
         of such sale, and such sale may, without further notice, to the extent
         permitted by law, be made at the time and place to which the sale was
         postponed, or the Collateral Agent and the holders of the Secured
         Obligations may further postpone such sale by announcement made at such
         time and place.

                  (b)      Remedies relating to Accounts. Upon the occurrence of
         an Event of Default and during the continuation thereof, whether or not
         the Collateral Agent has exercised any or all of its rights and
         remedies hereunder, each Grantor will promptly upon request of the
         Collateral Agent instruct all account debtors to remit all payments in
         respect of Accounts to a mailing location selected by the Collateral
         Agent. In addition, the Collateral Agent shall have the right to
         enforce any Grantor's rights against its customers and account debtors,
         and the Collateral Agent or its designee may notify any Grantor's
         customers and account debtors that the Accounts of such Grantor have
         been assigned to the Collateral Agent or of the Collateral Agent's
         security interest therein, and may (either in its own name or in the
         name of a Grantor or both) demand, collect (including without
         limitation by way of a lockbox arrangement), receive, take receipt for,
         sell, sue for, compound, settle, compromise and give acquittance for
         any and all amounts due or to become due on any Account, and, in the
         Collateral Agent's discretion, file any claim or take any other action
         or proceeding to protect and realize upon the security interest of the
         holders of the Secured Obligations in the Accounts. Each Grantor
         acknowledges and agrees that the Proceeds of its Accounts remitted to
         or on behalf of the Collateral Agent in accordance with the provisions
         hereof shall be solely for the Collateral Agent's own convenience and
         that such Grantor shall not have any right, title or interest in such
         Accounts or in any such other amounts except as expressly provided
         herein. The Collateral Agent and the holders of the Secured Obligations
         shall have no liability or responsibility to any Grantor for acceptance
         of a check, draft or other order for payment of money bearing the
         legend "payment in full" or words of similar import or any other
         restrictive legend or endorsement or be responsible for determining the
         correctness of any remittance. Each Grantor hereby agrees to indemnify
         the Collateral Agent and the holders of the Secured Obligations from
         and against all

                                       11
<PAGE>

         liabilities, damages, losses, actions, claims, judgments, costs,
         expenses, charges and Attorney Costs suffered or incurred by the
         Collateral Agent or the holders of the Secured Obligations (each, an
         "Indemnified Party") because of the maintenance of the foregoing
         arrangements except as relating to or arising out of the gross
         negligence or willful misconduct of an Indemnified Party or its
         officers, employees or agents. In the case of any investigation,
         litigation or other proceeding, the foregoing indemnity shall be
         effective whether or not such investigation, litigation or proceeding
         is brought by a Grantor, its directors, shareholders or creditors or an
         Indemnified Party or any other Person or any other Indemnified Party is
         otherwise a party thereto.

                  (c)      Access. In addition to the rights and remedies
         hereunder, upon the occurrence of an Event of Default and during the
         continuation thereof, the Collateral Agent shall have the right to
         enter and remain upon the various premises of the Grantors without cost
         or charge to the Collateral Agent, and use the same, together with
         materials, supplies, books and records of the Grantors for the purpose
         of collecting and liquidating the Collateral, or for preparing for sale
         and conducting the sale of the Collateral, whether by foreclosure,
         auction or otherwise. In addition, the Collateral Agent may remove
         Collateral, or any part thereof, from such premises and/or any records
         with respect thereto, in order to effectively collect or liquidate such
         Collateral.

                  (d)      Nonexclusive Nature of Remedies. Failure by the
         Collateral Agent or the holders of the Secured Obligations to exercise
         any right, remedy or option under this Security Agreement, any other
         Credit Document, any other documents relating to the Secured
         Obligations, or as provided by law, or any delay by the Collateral
         Agent or the holders of the Secured Obligations in exercising the same,
         shall not operate as a waiver of any such right, remedy or option. No
         waiver hereunder shall be effective unless it is in writing, signed by
         the party against whom such waiver is sought to be enforced and then
         only to the extent specifically stated, which in the case of the
         Collateral Agent or the holders of the Secured Obligations shall only
         be granted as provided herein. To the extent permitted by law, neither
         the Collateral Agent, the holders of the Secured Obligations, nor any
         party acting as attorney for the Collateral Agent or the holders of the
         Secured Obligations, shall be liable hereunder for any acts or
         omissions or for any error of judgment or mistake of fact or law other
         than their gross negligence or willful misconduct hereunder. The rights
         and remedies of the Collateral Agents and the holders of the Secured
         Obligations under this Security Agreement shall be cumulative and not
         exclusive of any other right or remedy which the Collateral Agent or
         the holders of the Secured Obligations may have.

                  (e)      Retention of Collateral. To the extent permitted
         under applicable law, in addition to the rights and remedies hereunder,
         upon the occurrence of an Event of Default, the Collateral Agent may,
         after providing the notices required by Sections 9-620 and 9-621 of the
         UCC or otherwise complying with the requirements of applicable law of
         the relevant jurisdiction, accept or retain all or any portion of the
         Collateral in satisfaction of the Secured Obligations. Unless and until
         the Collateral Agent shall have provided such notices, however, the
         Collateral Agent shall not be deemed to have accepted or retained any
         Collateral in satisfaction of any Secured Obligations for any reason.

                  (f)      Deficiency. In the event that the proceeds of any
         sale, collection or realization are insufficient to pay all amounts to
         which the Collateral Agent or the holders of the Secured Obligations
         are legally entitled, the Grantors shall be jointly and severally
         liable for the deficiency (subject to Section 25 hereof), together with
         interest thereon at the Default Rate for Revolving Loans that are Base
         Rate Loans, together with the costs of collection and Attorney Costs.
         Any surplus remaining after the full payment and satisfaction of the
         Secured Obligations shall be returned to the Grantors or to whomsoever
         a court of competent jurisdiction shall determine to be entitled
         thereto.

                                       12
<PAGE>

         8.       Release of Collateral. Upon request, the Collateral Agent
shall promptly deliver to the Borrower (at the Borrower's expense) appropriate
release documentation to the extent the release of Collateral is permitted
under, and on the terms and conditions set forth in, the Credit Agreement;
provided that any such release, or the substitution of any of the Collateral for
other Collateral, will not alter, vary or diminish in any way the force, effect,
lien, pledge or security interest of this Security Agreement as to any and all
Collateral not expressly released or substituted, and this Security Agreement
shall continue as a first priority lien (subject to Permitted Liens) on any and
all Collateral not expressly released or substituted.

         9.       Rights of the Collateral Agent.

                  (a)      Power of Attorney. In addition to other powers of
         attorney contained herein, each Grantor hereby designates and appoints
         the Collateral Agent, on behalf of the holders of the Secured
         Obligations, and each of its designees or agents, as attorney-in-fact
         of such Grantor, irrevocably and with power of substitution, with
         authority to take any or all of the following actions upon the
         occurrence and during the continuation of an Event of Default:

                           (i)      to demand, collect, settle, compromise and
                  adjust, and give discharges and releases concerning the
                  Collateral, all as the Collateral Agent may reasonably deem
                  appropriate;

                           (ii)     to commence and prosecute any actions at any
                  court for the purposes of collecting any of the Collateral and
                  enforcing any other right in respect thereof;

                           (iii)    to defend, settle or compromise any action
                  brought and, in connection therewith, give such discharge or
                  release as the Collateral Agent may reasonably deem
                  appropriate;

                           (iv)     to receive, open and dispose of mail
                  addressed to a Grantor and endorse checks, notes, drafts,
                  acceptances, money orders, bills of lading, warehouse receipts
                  or other instruments or documents evidencing payment, shipment
                  or storage of the goods giving rise to the Collateral on
                  behalf of and in the name of such Grantor, or securing, or
                  relating to such Collateral;

                           (v)      to pay or discharge taxes, liens, security
                  interests or other encumbrances levied or placed on or
                  threatened against the Collateral;

                           (vi)     to direct any parties liable for any payment
                  in connection with any of the Collateral to make payment of
                  any and all monies due and to become due thereunder directly
                  to the Collateral Agent or as the Collateral Agent shall
                  direct;

                           (vii)    to receive payment of and receipt for any
                  and all monies, claims, and other amounts due and to become
                  due at any time in respect of or arising out of any
                  Collateral;

                           (viii)   to sell, assign, transfer, make any
                  agreement in respect of, or otherwise deal with or exercise
                  rights in respect of, any Collateral or the goods or services
                  which have given rise thereto, as fully and completely as
                  though the Collateral Agent were the absolute owner thereof
                  for all purposes;

                           (ix)     to adjust and settle claims under any
                  insurance policy relating thereto;

                                       13
<PAGE>

                           (x)      to execute and deliver all assignments,
                  conveyances, statements, financing statements, renewal
                  financing statements, security and pledge agreements,
                  affidavits, notices and other agreements, instruments and
                  documents that the Collateral Agent may reasonably deem
                  appropriate in order to perfect and maintain the security
                  interests and liens granted in this Security Agreement and in
                  order to fully consummate all of the transactions contemplated
                  therein;

                           (xi)     to institute any foreclosure proceedings
                  that the Collateral Agent may reasonably deem appropriate; and

                           (xii)    to do and perform all such other acts and
                  things as the Collateral Agent may reasonably deem appropriate
                  or convenient in connection with the Collateral.

                  This power of attorney is a power coupled with an interest and
         shall be irrevocable for so long as any of the Secured Obligations
         shall remain outstanding and until all of the commitments relating
         thereto shall have been terminated. The Collateral Agent shall be under
         no duty to exercise or withhold the exercise of any of the rights,
         powers, privileges and options expressly or implicitly granted to the
         Collateral Agent in this Security Agreement, and shall not be liable
         for any failure to do so or any delay in doing so. The Collateral Agent
         shall not be liable for any act or omission or for any error of
         judgment or any mistake of fact or law in its individual capacity or
         its capacity as attorney-in-fact except acts or omissions resulting
         from its gross negligence or willful misconduct. This power of attorney
         is conferred on the Collateral Agent solely to protect, preserve and
         realize upon its security interest in the Collateral.

                  (b)      Performance by the Collateral Agent of Obligations.
         If any Grantor fails to perform any agreement or obligation contained
         herein, the Collateral Agent itself may perform, or cause performance
         of, such agreement or obligation, and the expenses of the Collateral
         Agent incurred in connection therewith shall be payable by the Grantors
         on a joint and several basis pursuant to Section 25 hereof.

                  (c)      The Collateral Agent's Duty of Care. Other than the
         exercise of reasonable care to assure the safe custody of the
         Collateral while being held by the Collateral Agent hereunder, the
         Collateral Agent shall have no duty or liability to preserve rights
         pertaining thereto, it being understood and agreed that the Grantors
         shall be responsible for preservation of all rights in the Collateral,
         and the Collateral Agent shall be relieved of all responsibility for
         the Collateral upon surrendering it or tendering the surrender of it to
         the Grantors. The Collateral Agent shall be deemed to have exercised
         reasonable care in the custody and preservation of the Collateral in
         its possession if such Collateral is accorded treatment substantially
         equal to that which the Collateral Agent accords its own property,
         which shall be no less than the treatment employed by a reasonable and
         prudent agent in the industry, it being understood that the Collateral
         Agent shall not have responsibility for taking any necessary steps to
         preserve rights against any parties with respect to any of the
         Collateral. In the event of a public or private sale of Collateral
         pursuant to Section 8 hereof, the Collateral Agent shall have no
         obligation to clean, repair or otherwise prepare the Collateral for
         sale.

         10.      Rights of Required Lenders. All rights of the Collateral Agent
hereunder, if not exercised by the Collateral Agent, may be exercised by the
Required Lenders.

         11.      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the Collateral
Agent or any of the holders of the Secured Obligations in cash or its
equivalent,

                                       14
<PAGE>

will be applied in reduction of the Secured Obligations in the order set forth
in the Credit Agreement or other document relating to the Secured Obligations,
and each Grantor irrevocably waives the right to direct the application of such
payments and proceeds and acknowledges and agrees that the Collateral Agent
shall have the continuing and exclusive right to apply and reapply any and all
such payments and proceeds in the Collateral Agent's sole discretion,
notwithstanding any entry to the contrary upon any of its books and records.

         12.      Costs of Counsel. At all times hereafter, whether or not upon
the occurrence of an Event of Default, the Grantors agree to promptly pay upon
demand any and all reasonable costs and expenses (including Attorney Costs) of
the Collateral Agent and the holders of the Secured Obligations (a) as required
under Section 11.04 of the Credit Agreement and (b) as necessary to protect the
Collateral or to exercise any rights or remedies under this Security Agreement
or with respect to any of the Collateral. All of the foregoing costs and
expenses shall constitute Secured Obligations hereunder.

         13.      Continuing Agreement.

                  (a)      This Security Agreement shall be a continuing
         agreement in every respect and shall remain in full force and effect so
         long as any of the Secured Obligations remains outstanding and until
         all of the commitments relating thereto have been terminated (other
         than any obligations with respect to the indemnities and the
         representations and warranties set forth in the Credit Documents). Upon
         such payment and termination, this Security Agreement shall be
         automatically terminated and the Collateral Agent and the holders of
         the Secured Obligations shall, upon the request and at the expense of
         the Grantors, forthwith release all of its liens and security interests
         hereunder and shall execute and deliver all UCC termination statements
         and/or other documents reasonably requested by the Grantors evidencing
         such termination. Notwithstanding the foregoing, all releases and
         indemnities provided hereunder shall survive termination of this
         Security Agreement.

                  (b)      This Security Agreement shall continue to be
         effective or be automatically reinstated, as the case may be, if at any
         time payment, in whole or in part, of any of the Secured Obligations is
         rescinded or must otherwise be restored or returned by the Collateral
         Agent or any holder of the Secured Obligations as a preference,
         fraudulent conveyance or otherwise under any bankruptcy, insolvency or
         similar law, all as though such payment had not been made; provided
         that in the event payment of all or any part of the Secured Obligations
         is rescinded or must be restored or returned, all reasonable costs and
         expenses (including Attorney Costs) incurred by the Collateral Agent or
         any holder of the Secured Obligations in defending and enforcing such
         reinstatement shall be deemed to be included as a part of the Secured
         Obligations.

         14.      Amendments and Waivers. This Security Agreement and the
provisions hereof may not be amended, waived, modified, changed, discharged or
terminated except as set forth in Section 11.01 of the Credit Agreement.

         15.      Successors in Interest. This Security Agreement shall create a
continuing security interest in the Collateral and shall be binding upon each
Grantor, its successors and assigns, and shall inure, together with the rights
and remedies of the Collateral Agent and the holders of the Secured Obligations
hereunder, to the benefit of the Collateral Agent and the holders of the Secured
Obligations and their successors and permitted assigns; provided, however, that
none of the Grantors may assign its rights or delegate its duties hereunder
without the prior written consent of the requisite Lenders under the Credit
Agreement. To the fullest extent permitted by law, each Grantor hereby releases
the Collateral Agent and each holder of the Secured Obligations, and their
respective successors and assigns, from any liability for any act or omission
relating to this Security Agreement or the Collateral, except for any liability
arising from the gross negligence or willful misconduct of the Collateral Agent
or such holder, and their respective officers, employees or agents.

                                       15
<PAGE>

         16.      Notices. All notices required or permitted to be given under
this Security Agreement shall be given as provided in Section 11.02 of the
Credit Agreement.

         17.      Counterparts. This Security Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Security Agreement to produce or
account for more than one such counterpart.

         18.      Headings. The headings of the sections and subsections hereof
are provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Security Agreement.

         19.      Governing Law; Submission to Jurisdiction; Venue.

                  (a)      THIS SECURITY AGREEMENT AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
         AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
         Any legal action or proceeding with respect to this Security Agreement
         may be brought in the state or federal courts located in Charlotte,
         North Carolina, and, by execution and delivery of this Security
         Agreement, each Grantor hereby irrevocably accepts for itself and in
         respect of its property, generally and unconditionally, the
         jurisdiction of such courts. Each Grantor further irrevocably consents
         to the service of process out of any of the aforementioned courts in
         any such action or proceeding by the mailing of copies thereof by
         registered or certified mail, postage prepaid, to it at the address for
         notices pursuant to Section 11.02 of the Credit Agreement, such service
         to become effective three days after such mailing. Nothing herein shall
         affect the right of the Collateral Agent to serve process in any other
         manner permitted by law or to commence legal proceedings or to
         otherwise proceed against any Grantor in any other jurisdiction.

                  (b)      Each Grantor hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Security Agreement brought in the courts referred to in subsection
         (a) hereof and hereby further irrevocably waives and agrees not to
         plead or claim in any such court that any such action or proceeding
         brought in any such court has been brought in an inconvenient forum.

         20.      Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, EACH OF THE PARTIES TO THIS SECURITY AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

         21.      Severability. If any provision of this Security Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

         22.      Entirety. This Security Agreement, the other Credit Documents
and the other documents relating to the Secured Obligations represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements
and understandings, oral or written, if any, including any commitment letters or
correspondence relating to the Credit Documents, any other documents relating to
the Secured Obligations, or the transactions contemplated herein and therein.

                                       16
<PAGE>

         23.      Survival. All representations and warranties of the Grantors
hereunder shall survive the execution and delivery of this Security Agreement,
the other Credit Documents and the other documents relating to the Secured
Obligations, the delivery of the Notes and the extension of credit thereunder or
in connection therewith.

         24.      Other Security. To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Collateral
(including, without limitation, real property and securities owned by a
Grantor), or by a guarantee, endorsement or property of any other Person, then
the Collateral Agent shall have the right to proceed against such other
property, guarantee or endorsement upon the occurrence of any Event of Default,
and the Collateral Agent shall have the right, in its sole discretion, to
determine which rights, security, liens, security interests or remedies the
Collateral Agent shall at any time pursue, relinquish, subordinate, modify or
take with respect thereto, without in any way modifying or affecting any of them
or the Secured Obligations or any of the rights of the Collateral Agent or the
holders of the Secured Obligations under this Security Agreement, under any of
the other Credit Documents or under any other document relating to the Secured
Obligations.

         25.      Joint and Several Obligations of Grantors.

                  (a)      Subject to subsection (c) of this Section 25, each of
         the Grantors is accepting joint and several liability hereunder in
         consideration of the financial accommodation to be provided by the
         holders of the Secured Obligations, for the mutual benefit, directly
         and indirectly, of each of the Grantors and in consideration of the
         undertakings of each of the Grantors to accept joint and several
         liability for the obligations of each of them.

                  (b)      Subject to subsection (c) of this Section 25, each of
         the Grantors jointly and severally hereby irrevocably and
         unconditionally accepts, not merely as a surety but also as a
         co-debtor, joint and several liability with the other Grantors with
         respect to the payment and performance of all of the Secured
         Obligations arising under this Security Agreement, the other Credit
         Documents and any other documents relating to the Secured Obligations,
         it being the intention of the parties hereto that all the Secured
         Obligations shall be the joint and several obligations of each of the
         Grantors without preferences or distinction among them.

                  (c)      Notwithstanding any provision to the contrary
         contained herein, in any other of the Credit Documents or in any other
         documents relating to the Secured Obligations, the obligations of each
         Guarantor under the Credit Agreement and the other Credit Documents
         shall be limited to an aggregate amount equal to the largest amount
         that would not render such obligations subject to avoidance under
         Section 548 of the Bankruptcy Code of the United States or any other
         Debtor Relief Law (including any comparable provisions of any
         applicable state law).

                  [remainder of page intentionally left blank]

                                       17
<PAGE>

         Each of the parties hereto has caused a counterpart of this Security
Agreement to be duly executed and delivered as of the date first above written.

GRANTORS:                           AMERIGROUP CORPORATION,
                                    a Delaware corporation

                                    By: /s/ Sherri E. Lee
                                        ----------------------------------------
                                    Name: Sherri E. Lee
                                    Title: SVP, Treasurer and Asst. Secretary

                                    PHP HOLDINGS, INC.,
                                    a Florida corporation

                                    By: /s/ Stanley F. Baldwin
                                        ----------------------------------------
                                    Name: Stanley F. Baldwin
                                    Title: VP and Secretary

                                                          AMERIGROUP CORPORATION
                                                              SECURITY AGREEMENT

<PAGE>

Accepted and agreed to as of the date first above written.

Bank of America, N.A.,
as Collateral Agent

By: /s/ Annie Cuenco
    --------------------------------
Name:  Annie Cuenco
Title: Assistant Vice President

                                                          AMERIGROUP CORPORATION
                                                              SECURITY AGREEMENT<PAGE>

                                                                 Exhibit 10.17.5

                      AMENDED AND RESTATED PLEDGE AGREEMENT

         THIS AMENDED AND RESTATED PLEDGE AGREEMENT (this "Pledge Agreement"),
dated as of October 22, 2003, is by and among the parties identified as
"PLEDGORS" on the signature pages hereto and such other parties as may become
Pledgors hereunder after the date hereof (individually a "Pledgor", and
collectively the "Pledgors") and BANK OF AMERICA, N.A., as collateral agent (in
such capacity, the "Collateral Agent") for the holders of the Secured
Obligations referenced below.

                               W I T N E S S E T H

         WHEREAS, a revolving credit facility (the "Existing Credit Facility")
was established in favor of AMERIGROUP Corporation, a Delaware corporation (the
"Borrower"), pursuant to the terms of that credit agreement dated as of December
14, 2001 (as amended or modified through the Closing Date, the "Existing Credit
Agreement") among the Borrower, certain of its subsidiaries and affiliates
identified therein, as guarantors, the lenders identified therein and Bank of
America, N.A., as administrative agent thereunder; and

         WHEREAS, the Lenders have agreed to replace, refinance and increase the
Existing Credit Facility pursuant to that Amended and Restated Credit Agreement
dated as of the date hereof (as amended, modified, increased, extended, renewed
or replaced, the "Credit Agreement") among the Borrower, the Guarantors
identified therein, the Lenders party thereto and Bank of America, N.A., as
Administrative Agent;

         WHEREAS, this Pledge Agreement is required under the terms of the
Credit Agreement;

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

         1.       Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings provided in the Credit Agreement. In addition,
the following terms, which are defined in the UCC as in effect in the State of
New York on the date hereof, are used herein as so defined: Accession, Financial
Asset, Proceeds and Security. As used herein:

                  "Pledged Collateral" has the meaning provided in Section 2
hereof.

                  "Pledged Shares" has the meaning provided in Section 2 hereof.

                  "Secured Obligations" means, without duplication, (i) all
         advances to, and debts, liabilities, obligations, covenants and duties
         of, any Credit Party arising under any Credit Document or otherwise
         with respect to any Loan or Letter of Credit, whether direct or
         indirect (including those acquired by assumption), absolute or
         contingent, due or to become due, now existing or hereafter arising and
         including interest and fees that accrue after the commencement by or
         against any Credit Party of any proceeding under any Debtor Relief Laws
         naming such Persons as the debtor in such proceeding, regardless of
         whether such interest and fees are allowed claims in such proceeding,
         (ii) all obligations under any Swap Contract of any Credit Party to
         which a Lender or any Affiliate of a

<PAGE>

         Lender is a party and (iii) all costs and expenses incurred in
         connection with enforcement and collection of the Secured Obligations,
         including Attorney Costs.

                  "UCC" means the Uniform Commercial Code of the State of New
         York or its equivalent in other applicable jurisdictions, as in effect
         from time to time (unless otherwise noted).

         2.       Pledge and Grant of Security Interest. To secure the prompt
payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Secured Obligations,
each Pledgor hereby grants, pledges and assigns to the Collateral Agent, for the
benefit of the holders of the Secured Obligations, a continuing security
interest in, and a right to set-off against, any and all right, title and
interest of such Pledgor in and to the following, whether now owned or existing
or owned, acquired, or arising hereafter (collectively, the "Pledged
Collateral"):

                  (a)      Pledged Shares. (i) One hundred percent (100%) (or,
         if less, the full amount owned by such Pledgor) of the issued and
         outstanding Capital Stock owned by such Pledgor of each Domestic
         Subsidiary set forth on Schedule 2(a) attached hereto and (ii)
         sixty-five percent (65%) (or, if less, the full amount owned by such
         Pledgor) of the issued and outstanding shares of Capital Stock entitled
         to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2))
         ("Voting Equity") and one hundred percent (100%) (or, if less, the full
         amount owned by such Pledgor) of the issued and outstanding Capital
         Stock not entitled to vote (within the meaning of Treas. Reg. Section
         1.956-2(c)(2)) ("Non-Voting Equity") owned by such Pledgor of each
         Foreign Subsidiary set forth on Schedule 2(a) attached hereto, in each
         case together with the certificates (or other agreements or
         instruments), if any, representing such Capital Stock, and all options
         and other rights, contractual or otherwise, with respect thereto
         (collectively, together with the Capital Stock described in Section
         2(b) and 2(c) below, the "Pledged Shares"), including, but not limited
         to, the following:

                           (A)      all shares, securities, membership interests
                  or other equity interests representing a dividend on any of
                  the Pledged Shares, or representing a distribution or return
                  of capital upon or in respect of the Pledged Shares, or
                  resulting from a stock split, revision, reclassification or
                  other exchange therefor, and any subscriptions, warrants,
                  rights or options issued to the holder of, or otherwise in
                  respect of, the Pledged Shares; and

                           (B)      without affecting the obligations of the
                  Pledgors under any provision prohibiting such action hereunder
                  or under the Credit Agreement, in the event of any
                  consolidation or merger involving the issuer of any Pledged
                  Shares and in which such issuer is not the surviving entity,
                  all Capital Stock of the successor entity formed by or
                  resulting from such consolidation or merger.

                  (b)      Additional Shares. (i) One hundred percent (100%)
         (or, if less, the full amount owned by such Pledgor) of the issued and
         outstanding Capital Stock owned by such Pledgor of any Person which
         hereafter becomes a Domestic Subsidiary and (ii) sixty-five percent
         (65%) (or, if less, the full amount owned by such Pledgor) of the
         Voting Equity and one hundred percent (100%) (or, if less, the full
         amount owned by such Pledgor) of the Non-Voting Equity owned by such
         Pledgor of any Person which hereafter becomes a Foreign Subsidiary,
         including, without limitation, the certificates (or other agreements or
         instruments) representing such Capital Stock.

                  (c)      Proceeds. All Proceeds of any and all of the
         foregoing.

                                        2
<PAGE>

         Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time
hereafter deliver additional Capital Stock to the Collateral Agent as collateral
security for the Secured Obligations. Upon delivery to the Collateral Agent,
such additional Capital Stock shall be deemed to be part of the Pledged
Collateral of such Pledgor and shall be subject to the terms of this Pledge
Agreement whether or not Schedule 2(a) is amended to refer to such additional
Capital Stock.

         3.       Security for Secured Obligations. The security interest
created hereby in the Pledged Collateral of each Pledgor constitutes continuing
collateral security for all of the Secured Obligations.

         4.       Delivery of the Pledged Collateral. Each Pledgor hereby agrees
that:

                  (a)      Each Pledgor shall deliver to the Collateral Agent
         (i) simultaneously with or prior to the execution and delivery of this
         Pledge Agreement, all certificates representing the Pledged Shares of
         such Pledgor and (ii) promptly upon the receipt thereof by or on behalf
         of a Pledgor, all other certificates and instruments constituting
         Pledged Collateral of a Pledgor. Prior to delivery to the Collateral
         Agent, all such certificates and instruments constituting Pledged
         Collateral of a Pledgor shall be held in trust by such Pledgor for the
         benefit of the Collateral Agent pursuant hereto. All such certificates
         shall be delivered in suitable form for transfer by delivery or shall
         be accompanied by duly executed instruments of transfer or assignment
         in blank, substantially in the form provided in Schedule 4(a) attached
         hereto.

                  (b)      Additional Securities. If such Pledgor shall receive
         by virtue of its being or having been the owner of any Pledged
         Collateral, any (i) certificate, including without limitation, any
         certificate representing a dividend or distribution in connection with
         any increase or reduction of capital, reclassification, merger,
         consolidation, sale of assets, combination of shares or other equity
         interests, stock splits, spin-off or split-off, promissory notes or
         other instruments; (ii) option or right, whether as an addition to,
         substitution for, or an exchange for, any Pledged Collateral or
         otherwise; (iii) dividends payable in securities; or (iv) distributions
         of securities in connection with a partial or total liquidation,
         dissolution or reduction of capital, capital surplus or paid-in
         surplus, then such Pledgor shall receive such certificate, instrument,
         option, right or distribution in trust for the benefit of the
         Collateral Agent, shall segregate it from such Pledgor's other property
         and shall deliver it forthwith to the Collateral Agent in the exact
         form received together with any necessary endorsement and/or
         appropriate stock power duly executed in blank, substantially in the
         form provided in Schedule 4(a), to be held by the Collateral Agent as
         Pledged Collateral and as further collateral security for the Secured
         Obligations.

                  (c)      Financing Statements. Each Pledgor shall execute and
         deliver to the Collateral Agent such UCC or other applicable financing
         statements as may be reasonably requested by the Collateral Agent in
         order to perfect and protect the security interest created hereby in
         the Pledged Collateral of such Pledgor.

         5.       Representations and Warranties. Each Pledgor hereby represents
and warrants to the Collateral Agent, for the benefit of the holders of the
Secured Obligations, that so long as any of the Secured Obligations remains
outstanding and until all of the commitments relating thereto have been
terminated:

                                        3
<PAGE>

                  (a)      Authorization of Pledged Shares. The Pledged Shares
         are duly authorized and validly issued, are fully paid and
         nonassessable and are not subject to the preemptive rights of any
         Person.

                  (b)      Title. Each Pledgor has good and indefeasible title
         to the Pledged Collateral of such Pledgor and will at all times be the
         legal and beneficial owner of such Pledged Collateral free and clear of
         any Lien, other than Permitted Liens. There exists no "adverse claim"
         within the meaning of Section 8-102 of the UCC with respect to the
         Pledged Shares of such Pledgor.

                  (c)      Exercising of Rights. The exercise by the Collateral
         Agent of its rights and remedies hereunder will not violate any law or
         governmental regulation or any material contractual restriction binding
         on or affecting a Pledgor or any of its property.

                  (d)      Pledgor's Authority. No authorization, approval or
         action by, and no notice or filing with any Governmental Authority or
         with the issuer of any Pledged Stock is required either (i) for the
         pledge made by a Pledgor or for the granting of the security interest
         by a Pledgor pursuant to this Pledge Agreement (except as have been
         already obtained) or (ii) for the exercise by the Collateral Agent or
         the holders of the Secured Obligations of their rights and remedies
         hereunder (except (A) applicable regulatory requirements and (B) as may
         be required by laws affecting the offering and sale of securities).

                  (e)      Security Interest/Priority. This Pledge Agreement is
         effective to create in favor of the Collateral Agent, for the ratable
         benefit of the holders of the Secured Obligations, a legal, valid and
         enforceable security interest in the Pledged Collateral, and the taking
         of possession by the Collateral Agent of the certificates representing
         the Pledged Shares and all other certificates and instruments
         constituting Pledged Collateral will perfect and establish the first
         priority of the Collateral Agent's security interest in the Pledged
         Shares and, when properly perfected by filing or registration, in all
         other Pledged Collateral represented by such Pledged Shares and
         instruments securing the Secured Obligations. Except as set forth in
         this Section 5(e), no action is necessary to perfect or otherwise
         protect such security interest.

                  (f)      Partnership and Membership Interests. Except as
         previously disclosed to the Collateral Agent, none of the Pledged
         Shares consisting of partnership or limited liability company interests
         (i) is dealt in or traded on a securities exchange or in a securities
         market, (ii) by its terms expressly provides that it is a security
         governed by Article 8 of the UCC, (iii) is an investment company
         security, (iv) is held in a securities account or (v) constitutes a
         Security or a Financial Asset.

                  (g)      No Other Interests. No Pledgor owns any Capital Stock
         in any Subsidiary other than as set forth on Schedule 2(a) attached
         hereto (other than any Capital Stock pledged to the Collateral Agent to
         secure the Secured Obligations pursuant to any other pledge agreement
         reasonably acceptable to the Administrative Agent).

         6.       Covenants. Each Pledgor hereby covenants, that so long as any
of the Secured Obligations remains outstanding and until all of the commitments
relating thereto have been terminated, such Pledgor shall:

                  (a)      Defense of Title. Warrant and defend title to and
         ownership of the Pledged Collateral of such Pledgor at its own expense
         against the claims and demands of all other parties

                                        4
<PAGE>

         claiming an interest therein, keep the Pledged Collateral free from all
         Liens, except for Permitted Liens, and not sell, exchange, transfer,
         assign, lease or otherwise dispose of Pledged Collateral of such
         Pledgor or any interest therein, except as permitted under the Credit
         Agreement and the other Credit Documents.

                  (b)      Further Assurances. Promptly execute and deliver at
         its expense all further instruments and documents and take all further
         action that may be necessary and desirable or that the Collateral Agent
         may reasonably request in order to (i) perfect and protect the security
         interest created hereby in the Pledged Collateral of such Pledgor
         (including, without limitation, any and all action necessary to satisfy
         the Collateral Agent that the Collateral Agent has obtained a first
         priority perfected security interest in all Pledged Collateral); (ii)
         enable the Collateral Agent to exercise and enforce its rights and
         remedies hereunder in respect of the Pledged Collateral of such
         Pledgor; and (iii) otherwise effect the purposes of this Pledge
         Agreement, including, without limitation and if requested by the
         Collateral Agent, delivering to the Collateral Agent irrevocable
         proxies in respect of the Pledged Collateral of such Pledgor.

                  (c)      Amendments. Not make or consent to any amendment or
         other modification or waiver with respect to any of the Pledged
         Collateral of such Pledgor or enter into any agreement or allow to
         exist any restriction with respect to any of the Pledged Collateral of
         such Pledgor other than pursuant hereto or as may be permitted under
         the Credit Agreement.

                  (d)      Compliance with Securities Laws. File all reports and
         other information now or hereafter required to be filed by such Pledgor
         with the United States Securities and Exchange Commission and any other
         state, federal or foreign agency in connection with the ownership of
         the Pledged Collateral of such Pledgor.

                  (e)      Issuance or Acquisition of Capital Stock. Not,
         without executing and delivering, or causing to be executed and
         delivered, to the Collateral Agent such agreements, documents and
         instruments as the Collateral Agent may reasonably require, issue or
         acquire any Capital Stock consisting of an interest in a partnership or
         a limited liability company that (i) is dealt in or traded on a
         securities exchange or in a securities market, (ii) by its terms
         expressly provides that it is a security governed by Article 8 of the
         UCC, (iii) is an investment company security, (iv) is held in a
         securities account or (v) constitutes a Security or a Financial Asset.

         7.       Advances by Holders of the Secured Obligations. On failure of
any Pledgor to perform any of the covenants and agreements contained herein, the
Collateral Agent may, at its sole option and in its sole discretion, perform the
same and in so doing may expend such sums as the Collateral Agent may reasonably
deem advisable in the performance thereof, including, without limitation, the
payment of any insurance premiums, the payment of any taxes, a payment to obtain
a release of a Lien or potential Lien, expenditures made in defending against
any adverse claim and all other expenditures which the Collateral Agent or the
holders of the Secured Obligations may make for the protection of the security
hereof or which may be compelled to make by operation of law. All such sums and
amounts so expended shall be repayable by the Pledgors on a joint and several
basis (subject to Section 25 hereof) promptly upon timely notice thereof and
demand therefor, shall constitute additional Secured Obligations and shall bear
interest from the date said amounts are expended at the Default Rate for
Revolving Loans that are Base Rate Loans. No such performance of any covenant or
agreement by the Collateral Agent or the holders of the Secured Obligations on
behalf of any Pledgor, and no such advance or expenditure therefor, shall
relieve the Pledgors of any default under the terms of this Pledge Agreement,
the other Credit Documents or any other documents relating to the Secured
Obligations. The holders of the Secured Obligations may make any payment hereby

                                        5
<PAGE>

authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim
except to the extent such payment is being contested in good faith by a Pledgor
in appropriate proceedings and against which adequate reserves are being
maintained in accordance with GAAP.

         8.       Remedies.

                  (a)      General Remedies. Upon the occurrence of an Event of
         Default and during the continuation thereof, the Collateral Agent and
         the holders of the Secured Obligations shall have, in addition to the
         rights and remedies provided herein, in the Credit Documents, in any
         other documents relating to the Secured Obligations, or by law
         (including, without limitation, levy of attachment and garnishment),
         the rights and remedies of a secured party under the UCC of the
         jurisdiction applicable to the affected Pledged Collateral.

                  (b)      Sale of Pledged Collateral. Upon the occurrence of an
         Event of Default and during the continuation thereof, without limiting
         the generality of this Section 8 and without notice, the Collateral
         Agent may, in its sole discretion, sell or otherwise dispose of or
         realize upon the Pledged Collateral, or any part thereof, in one or
         more parcels, at public or private sale, at any exchange or broker's
         board or elsewhere, at such price or prices and on such other terms as
         the Collateral Agent may deem commercially reasonable, for cash, credit
         or for future delivery or otherwise in accordance with applicable law.
         To the extent permitted by law, any holder of the Secured Obligations
         may in such event, bid for the purchase of such securities. Each
         Pledgor agrees that, to the extent notice of sale shall be required by
         law and has not been waived by such Pledgor, any requirement of
         reasonable notice shall be met if notice, specifying the place of any
         public sale or the time after which any private sale is to be made, is
         personally served on or mailed, postage prepaid, to such Pledgor, in
         accordance with the notice provisions of Section 11.02 of the Credit
         Agreement at least ten days before the time of such sale. The
         Collateral Agent shall not be obligated to make any sale of Pledged
         Collateral of such Pledgor regardless of notice of sale having been
         given. The Collateral Agent may adjourn any public or private sale from
         time to time by announcement at the time and place fixed therefor, and
         such sale may, without further notice, be made at the time and place to
         which it was so adjourned.

                  (c)      Private Sale. Upon the occurrence of an Event of
         Default and during the continuation thereof, the Pledgors recognize
         that the Collateral Agent may deem it impracticable to effect a public
         sale of all or any part of the Pledged Shares or any of the securities
         constituting Pledged Collateral and that the Collateral Agent may,
         therefore, to the extent permitted by applicable law, determine to make
         one or more private sales of any such Pledged Collateral to a
         restricted group of purchasers who will be obligated to agree, among
         other things, to acquire such Pledged Collateral for their own account,
         for investment and not with a view to the distribution or resale
         thereof. Each Pledgor acknowledges that any such private sale may be at
         prices and on terms less favorable to the seller than the prices and
         other terms which might have been obtained at a public sale and,
         notwithstanding the foregoing, agrees that such private sale shall be
         deemed to have been made in a commercially reasonable manner and that
         the Collateral Agent shall have no obligation to delay sale of any such
         Pledged Collateral for the period of time necessary to permit the
         issuer of such Pledged Collateral to register such Pledged Collateral
         for public sale under the Securities Act. Each Pledgor further
         acknowledges and agrees that any offer to sell such Pledged Collateral
         which has been (i) publicly advertised on a bona fide basis in a
         newspaper or other publication of general circulation in the financial
         community of New

                                        6
<PAGE>

         York, New York (to the extent that such offer may be advertised without
         prior registration under the Securities Act), or (ii) made privately in
         the manner described above shall be deemed to involve a "public sale"
         under the UCC, notwithstanding that such sale may not constitute a
         "public offering" under the Securities Act, and the Collateral Agent
         may, in such event, bid for the purchase of such Pledged Collateral.

                  (d)      Retention of Pledged Collateral. To the extent
         permitted under applicable law, in addition to the rights and remedies
         hereunder, upon the occurrence of an Event of Default, the Collateral
         Agent may, after providing the notices required by Sections 9-620 and
         9-621 of the UCC or otherwise complying with the requirements of
         applicable law of the relevant jurisdiction, accept or retain all or
         any portion of the Pledged Collateral in satisfaction of the Secured
         Obligations. Unless and until the Collateral Agent shall have provided
         such notices, however, the Collateral Agent shall not be deemed to have
         accepted or retained any Pledged Collateral in satisfaction of any
         Secured Obligations for any reason.

                  (e)      Deficiency. In the event that the proceeds of any
         sale, collection or realization are insufficient to pay all amounts to
         which the Collateral Agent or the holders of the Secured Obligations
         are legally entitled, the Pledgors shall be jointly and severally
         liable for the deficiency (subject to Section 25 hereof), together with
         interest thereon at the Default Rate for Revolving Loans that are Base
         Rate Loans, together with the costs of collection and Attorney Costs.
         Any surplus remaining after the full payment and satisfaction of the
         Secured Obligations shall be returned to the Pledgors or to whomsoever
         a court of competent jurisdiction shall determine to be entitled
         thereto.

                  (f)      Acknowledgement. Notwithstanding the foregoing, the
         Collateral Agent and the Lenders expressly acknowledge and agree that
         any transfer of the Pledged Shares, or any exercise of control with
         respect thereto, is subject to, and shall be effected solely in
         compliance with, applicable regulatory requirements.

         9.       Rights of the Collateral Agent.

                  (a)      Power of Attorney. In addition to other powers of
         attorney contained herein, each Pledgor hereby designates and appoints
         the Collateral Agent, on behalf of the holders of the Secured
         Obligations, and each of its designees or agents, as attorney-in-fact
         with power of substitution of such Pledgor for the purpose of carrying
         out the provisions of this Pledge Agreement and taking any action and
         executing any instrument deemed necessary or advisable to accomplish
         the purposes hereof, which appointment is irrevocable and coupled with
         an interest. Without limiting the generality of the foregoing, the
         Collateral Agent shall have the authority to take any or all of the
         following actions upon the occurrence and during the continuation of an
         Event of Default:

                           (i)      to demand, collect, settle, compromise and
                  adjust, and give discharges and releases concerning the
                  Pledged Collateral, all as the Collateral Agent may reasonably
                  deem appropriate;

                           (ii)     to commence and prosecute any actions at any
                  court for the purposes of collecting any of the Pledged
                  Collateral and enforcing any other right in respect thereof;

                                        7
<PAGE>

                           (iii)    to defend, settle or compromise any action
                  brought and, in connection therewith, give such discharge or
                  release as the Collateral Agent may reasonably deem
                  appropriate;

                           (iv)     to pay or discharge taxes, liens, security
                  interests or other encumbrances levied or placed on or
                  threatened against the Pledged Collateral;

                           (v)      to direct any parties liable for any payment
                  in connection with any of the Pledged Collateral to make
                  payment of any and all monies due and to become due thereunder
                  directly to the Collateral Agent or as the Collateral Agent
                  shall direct;

                           (vi)     to receive payment of and receipt for any
                  and all monies, claims, and other amounts due and to become
                  due at any time in respect of or arising out of any Pledged
                  Collateral;

                           (vii)    to sign and endorse any drafts, assignments,
                  proxies, stock powers, verifications, notices and other
                  documents relating to the Pledged Collateral;

                           (viii)   to execute and deliver all assignments,
                  conveyances, statements, financing statements, renewal
                  financing statements, security and pledge agreements,
                  affidavits, notices and other agreements, instruments and
                  documents that the Collateral Agent may reasonably deem
                  appropriate in order to perfect and maintain the security
                  interests and liens granted in this Pledge Agreement and in
                  order to fully consummate all of the transactions contemplated
                  therein;

                           (ix)     to exchange any of the Pledged Collateral or
                  other property upon any merger, consolidation, reorganization,
                  recapitalization or other readjustment of the issuer thereof
                  and, in connection therewith, deposit any of the Pledged
                  Collateral with any committee, depository, transfer agent,
                  registrar or other designated agency upon such terms as the
                  Collateral Agent may reasonably deem appropriate;

                           (x)      to vote for a shareholder resolution, or to
                  sign an instrument in writing, sanctioning the transfer of any
                  or all of the Pledged Collateral into the name of the
                  Collateral Agent or one or more of the holders of the Secured
                  Obligations or into the name of any transferee to whom the
                  Pledged Collateral or any part thereof may be sold pursuant to
                  Section 8 hereof; and

                           (xi)     to do and perform all such other acts and
                  things as the Collateral Agent may reasonably deem appropriate
                  or convenient in connection with the Pledged Collateral.

                  The Collateral Agent shall be under no duty to exercise or
         withhold the exercise of any of the rights, powers, privileges and
         options expressly or implicitly granted to the Collateral Agent in this
         Pledge Agreement, and shall not be liable for any failure to do so or
         any delay in doing so. The Collateral Agent shall not be liable for any
         act or omission or for any error of judgment or any mistake of fact or
         law in its individual capacity or its capacity as attorney-in-fact
         except acts or omissions resulting from its gross negligence or willful
         misconduct. This power of attorney is conferred on the Collateral Agent
         solely to protect, preserve and realize upon its security interest in
         the Pledged Collateral.

                                        8
<PAGE>

                  (b)      Performance by the Collateral Agent of Obligations.
         If any Pledgor fails to perform any agreement or obligation contained
         herein, the Collateral Agent itself may perform, or cause performance
         of, such agreement or obligation, and the expenses of the Collateral
         Agent incurred in connection therewith shall be payable by the Pledgors
         on a joint and several basis pursuant to Section 25 hereof.

                  (c)      The Collateral Agent's Duty of Care. Other than the
         exercise of reasonable care to assure the safe custody of the Pledged
         Collateral while being held by the Collateral Agent hereunder, the
         Collateral Agent shall have no duty or liability to preserve rights
         pertaining thereto, it being understood and agreed that the Pledgors
         shall be responsible for preservation of all rights in the Pledged
         Collateral, and the Collateral Agent shall be relieved of all
         responsibility for the Pledged Collateral upon surrendering it or
         tendering the surrender of it to the Pledgors. The Collateral Agent
         shall be deemed to have exercised reasonable care in the custody and
         preservation of the Pledged Collateral in its possession if such
         Pledged Collateral is accorded treatment substantially equal to that
         which the Collateral Agent accords its own property, which shall be no
         less than the treatment employed by a reasonable and prudent agent in
         the industry, it being understood that the Collateral Agent shall not
         have responsibility for (i) ascertaining or taking action with respect
         to calls, conversions, exchanges, maturities, tenders or other matters
         relating to any Pledged Collateral, whether or not the Collateral Agent
         has or is deemed to have knowledge of such matters, or (ii) taking any
         necessary steps to preserve rights against any parties with respect to
         any of the Pledged Collateral.

                  (d)      Voting Rights in Respect of the Pledged Collateral.

                           (i)      So long as no Event of Default shall have
                  occurred and be continuing, to the extent permitted by law,
                  (x) each Pledgor may exercise any and all voting and other
                  consensual rights and powers pertaining to the Pledged
                  Collateral of such Pledgor or any part thereof for any purpose
                  not inconsistent with the terms of this Pledge Agreement or
                  the Credit Agreement and (y) the Collateral Agent shall
                  execute and deliver to each Pledgor, or cause to be executed
                  and delivered to each Pledgor, all proxies, powers of attorney
                  and other instruments as such Pledgor may reasonably request
                  for the purpose of enabling such Pledgor to exercise the
                  voting and/or consensual rights and powers it is entitled to
                  exercise pursuant to subclause (x) above; and

                           (ii)     Upon the occurrence and during the
                  continuance of an Event of Default, following notice to the
                  Pledgor from the Collateral Agent, all rights of such Pledgor
                  to exercise the voting and other consensual rights which it
                  would otherwise be entitled to exercise pursuant to paragraph
                  (i) of this subsection shall cease and all such rights shall
                  thereupon become vested in the Collateral Agent which shall
                  then have the sole right to exercise such voting and other
                  consensual rights. After all Events of Default have been cured
                  or waived, each Pledgor shall have the right to exercise the
                  voting and/or consensual rights and powers that it would
                  otherwise be entitled to exercise pursuant to the terms of
                  clause (i) of this subsection (d).

                  (e)      Dividend Rights in Respect of the Pledged Collateral.

                           (i)      So long as no Event of Default shall have
                  occurred and be continuing and subject to Section 4(b) hereof,
                  (x) each Pledgor may receive and retain any and all

                                        9
<PAGE>

                  dividends (other than stock dividends and other dividends
                  constituting Pledged Collateral addressed hereinabove),
                  interest or principal paid in respect of the Pledged
                  Collateral to the extent they are allowed under the Credit
                  Agreement and (y) the Collateral Agent shall execute and
                  deliver to each Pledgor, or cause to be executed and delivered
                  to each Pledgor, all proxies, powers of attorney and other
                  instruments as such Pledgor may reasonably request for the
                  purpose of enabling such Pledgor to receive the dividends it
                  is entitled to receive pursuant to subclause (x) above.

                           (ii)     Upon the occurrence and during the
                  continuance of an Event of Default:

                                    (A)      all rights of a Pledgor to receive
                           the dividends, interest or principal payments which
                           it would otherwise be authorized to receive and
                           retain pursuant to paragraph (i) of this subsection
                           shall cease and all such rights shall thereupon be
                           vested in the Collateral Agent, which shall then have
                           the sole right to receive and hold as Pledged
                           Collateral such dividends and interest payments; and

                                    (B)      all dividends and interest payments
                           which are received by a Pledgor contrary to the
                           provisions of paragraph (A) of this subsection shall
                           be received in trust for the benefit of the
                           Collateral Agent, shall be segregated from other
                           property or funds of such Pledgor, and shall be
                           forthwith paid over to the Collateral Agent as
                           Pledged Collateral in the exact form received, to be
                           held by the Collateral Agent as Pledged Collateral
                           and as further collateral security for the Secured
                           Obligations.

                  (f)      Release of Pledged Collateral. The Collateral Agent
         may release any of the Pledged Collateral from this Pledge Agreement or
         may substitute any of the Pledged Collateral for other Pledged
         Collateral to the extent permitted under, and on the terms and
         conditions set forth in, the Credit Agreement, and such release or
         substitution shall not alter, vary or diminish in any way the force,
         effect, lien, pledge or security interest of this Pledge Agreement as
         to any Pledged Collateral not expressly released or substituted, and
         this Pledge Agreement shall continue as a first priority lien (subject
         to Permitted Liens) on all Pledged Collateral not expressly released or
         substituted.

         10.      Rights of Required Lenders. All rights of the Collateral Agent
hereunder, if not exercised by the Collateral Agent, may be exercised by the
Required Lenders.

         11.      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Pledged Collateral, when received by the
Collateral Agent or any of the holders of the Secured Obligations in cash or its
equivalent, will be applied in reduction of the Secured Obligations in the order
set forth in the Credit Agreement or other document relating to the Secured
Obligations, and each Pledgor irrevocably waives the right to direct the
application of such payments and proceeds and acknowledges and agrees that the
Collateral Agent shall have the continuing and exclusive right to apply and
reapply any and all such payments and proceeds in the Collateral Agent's sole
discretion, notwithstanding any entry to the contrary upon any of its books and
records.

         12.      Costs of Counsel. At all times hereafter, whether or not upon
the occurrence of an Event of Default, the Pledgors agree to promptly pay upon
demand any and all reasonable costs and expenses

                                       10
<PAGE>

(including, without limitation, Attorney Costs) of the Collateral Agent and the
holders of the Secured Obligations (a) as required under Section 11.04 of the
Credit Agreement and (b) as necessary to protect the Pledged Collateral or to
exercise any rights or remedies under this Pledge Agreement or with respect to
any of the Pledged Collateral. All of the foregoing costs and expenses shall
constitute Secured Obligations hereunder.

         13.      Continuing Agreement.

                  (a)      This Pledge Agreement shall be a continuing agreement
         in every respect and shall remain in full force and effect so long as
         any of the Secured Obligations remains outstanding and until all of the
         commitments relating thereto have been terminated (other than any
         obligations with respect to the indemnities and the representations and
         warranties set forth in the Credit Documents). Upon such payment and
         termination, this Pledge Agreement shall be automatically terminated
         and the Collateral Agent and the holders of the Secured Obligations
         shall, upon the request and at the expense of the Pledgors, forthwith
         release all of its liens and security interests hereunder and shall
         execute and deliver all UCC termination statements and/or other
         documents reasonably requested by the Pledgors evidencing such
         termination. Notwithstanding the foregoing, all releases and
         indemnities provided hereunder shall survive termination of this Pledge
         Agreement.

                  (b)      This Pledge Agreement shall continue to be effective
         or be automatically reinstated, as the case may be, if at any time
         payment, in whole or in part, of any of the Secured Obligations is
         rescinded or must otherwise be restored or returned by the Collateral
         Agent or any holder of the Secured Obligations as a preference,
         fraudulent conveyance or otherwise under any bankruptcy, insolvency or
         similar law, all as though such payment had not been made; provided
         that in the event payment of all or any part of the Secured Obligations
         is rescinded or must be restored or returned, all reasonable costs and
         expenses (including, without limitation, Attorney Costs) incurred by
         the Collateral Agent or any holder of the Secured Obligations in
         defending and enforcing such reinstatement shall be deemed to be
         included as a part of the Secured Obligations.

         14.      Amendments and Waivers. This Pledge Agreement and the
provisions hereof may not be amended, waived, modified, changed, discharged or
terminated except as set forth in Section 11.01 of the Credit Agreement.

         15.      Successors in Interest. This Pledge Agreement shall create a
continuing security interest in the Collateral and shall be binding upon each
Pledgor, its successors and assigns, and shall inure, together with the rights
and remedies of the Collateral Agent and the holders of the Secured Obligations
hereunder, to the benefit of the Collateral Agent and the holders of the Secured
Obligations and their successors and permitted assigns; provided, however, that
none of the Pledgors may assign its rights or delegate its duties hereunder
without the prior written consent of the requisite Lenders under the Credit
Agreement. To the fullest extent permitted by law, each Pledgor hereby releases
the Collateral Agent and each holder of the Secured Obligations, and their
respective successors and assigns, from any liability for any act or omission
relating to this Pledge Agreement or the Collateral, except for any liability
arising from the gross negligence or willful misconduct of the Collateral Agent
or such holder, or their respective officers, employees or agents.

         16.      Notices. All notices required or permitted to be given under
this Pledge Agreement shall be given as provided in Section 11.02 of the Credit
Agreement.

                                       11
<PAGE>

         17.      Counterparts. This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Pledge Agreement to produce or
account for more than one such counterpart.

         18.      Headings. The headings of the sections and subsections hereof
are provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Pledge Agreement.

         19.      Governing Law; Submission to Jurisdiction; Venue.

                  (a)      THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS
         OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
         INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any
         legal action or proceeding with respect to this Pledge Agreement may be
         brought in the state or federal courts located in Charlotte, North
         Carolina, and, by execution and delivery of this Pledge Agreement, each
         Pledgor hereby irrevocably accepts for itself and in respect of its
         property, generally and unconditionally, the jurisdiction of such
         courts. Each Pledgor further irrevocably consents to the service of
         process out of any of the aforementioned courts in any such action or
         proceeding by the mailing of copies thereof by registered or certified
         mail, postage prepaid, to it at the address for notices pursuant to
         Section 11.02 of the Credit Agreement, such service to become effective
         three days after such mailing. Nothing herein shall affect the right of
         the Collateral Agent to serve process in any other manner permitted by
         law or to commence legal proceedings or to otherwise proceed against
         any Pledgor in any other jurisdiction.

                  (b)      Each Pledgor hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Pledge Agreement brought in the courts referred to in subsection
         (a) hereof and hereby further irrevocably waives and agrees not to
         plead or claim in any such court that any such action or proceeding
         brought in any such court has been brought in an inconvenient forum.

         20.      Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, EACH OF THE PARTIES TO THIS PLEDGE AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         21.      Severability. If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

         22.      Entirety. This Pledge Agreement, the other Credit Documents
and the other documents relating to the Secured Obligations represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements
and understandings, oral or written, if any, including any commitment letters or
correspondence relating to the Credit Documents, any other documents relating to
the Secured Obligations, or the transactions contemplated herein and therein.

                                       12
<PAGE>

         23.      Survival. All representations and warranties of the Pledgors
hereunder shall survive the execution and delivery of this Pledge Agreement, the
other Credit Documents and the other documents relating to the Secured
Obligations, the delivery of the Notes and the extension of credit thereunder or
in connection therewith.

         24.      Other Security. To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Pledged
Collateral (including, without limitation, real and other personal property
owned by a Pledgor), or by a guarantee, endorsement or property of any other
Person, then the Collateral Agent shall have the right to proceed against such
other property, guarantee or endorsement upon the occurrence of any Event of
Default, and the Collateral Agent shall have the right, in its sole discretion,
to determine which rights, security, liens, security interests or remedies the
Collateral Agent shall at any time pursue, relinquish, subordinate, modify or
take with respect thereto, without in any way modifying or affecting any of them
or the Secured Obligations or any of the rights of the Collateral Agent or the
holders of the Secured Obligations under this Pledge Agreement, under any of the
other Credit Documents or under any other document relating to the Secured
Obligations.

         25.      Joint and Several Obligations of Pledgors.

                  (a)      Subject to subsection (c) of this Section 25, each of
         the Pledgors is accepting joint and several liability hereunder in
         consideration of the financial accommodation to be provided by the
         holders of the Secured Obligations, for the mutual benefit, directly
         and indirectly, of each of the Pledgors and in consideration of the
         undertakings of each of the Pledgors to accept joint and several
         liability for the obligations of each of them.

                  (b)      Subject to subsection (c) of this Section 25, each of
         the Pledgors jointly and severally hereby irrevocably and
         unconditionally accepts, not merely as a surety but also as a
         co-debtor, joint and several liability with the other Pledgors with
         respect to the payment and performance of all of the Secured
         Obligations arising under this Pledge Agreement, the other Credit
         Documents and any other documents relating to the Secured Obligations,
         it being the intention of the parties hereto that all the Secured
         Obligations shall be the joint and several obligations of each of the
         Pledgors without preferences or distinction among them.

                  (c)      Notwithstanding any provision to the contrary
         contained herein, in any other of the Credit Documents or in any other
         documents relating to the Secured Obligations, the obligations of each
         Guarantor under the Credit Agreement and the other Credit Documents
         shall be limited to an aggregate amount equal to the largest amount
         that would not render such obligations subject to avoidance under
         Section 548 of the Bankruptcy Code of the United States or any other
         Debtor Relief Law (including any comparable provisions of any
         applicable state law).

                  [remainder of page intentionally left blank]

                                       13
<PAGE>

         Each of the parties hereto has caused a counterpart of this Pledge
Agreement to be duly executed and delivered as of the date first above written.

PLEDGORS:                           AMERIGROUP CORPORATION,
                                    a Delaware corporation

                                    By: /s/ Sherri E. Lee
                                        ----------------------------------------
                                    Name: Sherri E. Lee
                                    Title: SVP, Treasurer and Asst. Secretary

                                    PHP HOLDINGS, INC.,
                                    a Florida corporation

                                    By: /s/ Stanley F. Baldwin
                                        -------------------------------
                                    Name: Stanley F. Baldwin
                                    Title: VP and Secretary

                                                          AMERIGROUP CORPORATION
                                                                PLEDGE AGREEMENT

<PAGE>

Accepted and agreed to as of the date first above written.

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

By: /s/ Annie Cuenco
    ----------------------------------------
Name:  Annie Cuenco
Title: Assistant Vice President

                                                          AMERIGROUP CORPORATION
                                                                PLEDGE AGREEMENT

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