Document:

<PAGE>

                                                                   EXHIBIT 10.36

                            SEVENTH AMENDMENT TO THE
                            PER-SE TECHNOLOGIES, INC.
                       EMPLOYEES' RETIREMENT SAVINGS PLAN

      THIS SEVENTH AMENDMENT made on this 20th day of July, 2004, by PER-SE
TECHNOLOGIES, INC., a corporation organized and existing under the laws of the
State of Delaware (the "Primary Sponsor");

                              W I T N E S S E T H:

      WHEREAS, the Primary Sponsor maintains the Per-Se Technologies, Inc.
Employees' Retirement Savings Plan (the "Plan") which was last amended and
restated on January 20, 2000;

      WHEREAS, the Primary Sponsor now wishes to amend the Plan to allow a
distribution from the Plan to an alternate payee as soon as practicable
following the segregation of the participant's account.

      NOW, THEREFORE, the Primary Sponsor does hereby amend the Plan, effective
as of January 1, 2004, by adding the following sentences to the end of the
existing Section 13.1:

      "In addition, a distribution to an "alternate payee" (as defined in Code
      Section 414(p)) shall be permitted if such distribution is authorized by a
      qualified domestic relations order, even if the affected Member has not
      yet separated from service or reached the `earliest retirement age' (as
      defined in Code Section 414(p)). If the benefit to be paid pursuant to a
      qualified domestic relations order is $5,000 or less, it will be paid out
      as soon as administratively feasible after the Plan Administrator has
      approved the order."

      Except as specifically amended hereby, the Plan shall remain in full force
and effect as prior to this Seventh Amendment.

      IN WITNESS WHEREOF, the Primary Sponsor hereto has caused this Seventh
Amendment to be executed as of the day and year first above written.

                                          PER-SE TECHNOLOGIES, INC.

                                          By: /s/ PHILIP M. PEAD
                                              -------------------------------
                                              Philip M. Pead
                                              Chairman, President and
                                              Chief Executive Officer

[CORPORATE SEAL]

ATTEST:

By: /s/ PAUL J. QUINER
    --------------------------------
    Paul J. Quiner
    Corporate Secretary<PAGE>

                                                                   EXHIBIT 10.59

                                                                  EXECUTION COPY

BANC OF AMERICA SECURITIES LLC

                     $100,000,000 AGGREGATE PRINCIPAL AMOUNT

                            PER-SE TECHNOLOGIES, INC.

                    3.25% CONVERTIBLE SUBORDINATED DEBENTURES

                                    DUE 2024

                               PURCHASE AGREEMENT

                               DATED JUNE 24, 2004

<PAGE>
                                       i

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                <C>
SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.........................................   2
(a) No Registration..............................................................................   2
(b) No Integration...............................................................................   3
(c) Rule 144A....................................................................................   3
(d) Offering Memorandum..........................................................................   3
(e) Offering Materials Furnished to Initial Purchasers...........................................   3
(f) Authorization of the Purchase Agreement......................................................   3
(g) Authorization of the Indenture...............................................................   3
(h) Authorization of the Debentures..............................................................   4
(i) Authorization of the Conversion Shares.......................................................   4
(j) Authorization of the Registration Rights Agreement...........................................   4
(l) No Material Adverse Change...................................................................   4
(m) Independent Accountants......................................................................   5
(n) Preparation of the Financial Statements......................................................   5
(o) Incorporation and Good Standing of the Company and its Subsidiaries..........................   5
(p) Capitalization and Other Capital Stock Matters...............................................   5
(q) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required...   6
(r) No Material Actions or Proceedings...........................................................   6
(s) Intellectual Property Rights.................................................................   6
(t) All Necessary Permits, etc...................................................................   7
(u) Title to Properties..........................................................................   7
(v) Tax Law Compliance...........................................................................   7
(w) Company Not an "Investment Company"..........................................................   7
(x) Insurance....................................................................................   7
(y) No Price Stabilization or Manipulation.......................................................   8
(z) Related Party Transactions...................................................................   8
(aa) Recent Sales................................................................................   8
(bb) No General Solicitation.....................................................................   8
(cc) No Unlawful Contributions or Other Payments.................................................   8
(dd) Company's Accounting System.................................................................   8
(ee) Compliance with Environmental Laws..........................................................   8
(ff) ERISA Compliance............................................................................   9
(gg) Brokers.....................................................................................  10
(hh) No Outstanding Loans or Other Indebtedness..................................................  10
(ii) Compliance with Laws........................................................................  10
SECTION 2. PURCHASE, SALE AND DELIVERY OF THE DEBENTURES.........................................  10
(a) The Firm Debentures..........................................................................  10
(b) The First Closing Date.......................................................................  10
(c) The Optional Debentures; the Second Closing Date.............................................  10
(d) Payment for the Debentures...................................................................  11
(e) Delivery of the Debentures...................................................................  11
SECTION 3. ADDITIONAL COVENANTS OF THE COMPANY...................................................  11
(a) Representative's Review of Proposed Amendments and Supplements...............................  11
(b) Amendments and Supplements to the Offering Memorandum and Other Securities Act Matters.......  12
(c) Copies of Offering Memorandum................................................................  12
(d) Blue Sky Compliance..........................................................................  12
(e) Rule 144A Information........................................................................  12
</TABLE>

<PAGE>

                                       ii

<TABLE>
<S>                                                                                                <C>
(f) Legends......................................................................................  13
(g) No General Solicitation......................................................................  13
(h) No Integration...............................................................................  13
(i) Rule 144 Tolling.............................................................................  13
(j) Use of Proceeds..............................................................................  13
(k) Transfer Agent...............................................................................  13
(l) Agreement Not to Offer or Sell Additional Securities.........................................  13
(m) Investment Limitation........................................................................  13
(n) No Manipulation of Price.....................................................................  13
(o) Listing of Conversion Shares.................................................................  14
SECTION 4. PAYMENT OF EXPENSES...................................................................  14
SECTION 5. CONDITIONS OF THE OBLIGATIONS OF THE INITIAL PURCHASERS...............................  14
(a) Accountants' Comfort Letter..................................................................  14
(b) No Material Adverse Change or Rating Agency Change...........................................  14
(c) Opinion of Counsel for the Company...........................................................  15
(d) Opinion of Counsel for the Initial Purchasers................................................  15
(e) Officers' Certificate........................................................................  15
(f) Bring-down Comfort Letter....................................................................  15
(g) Registration Rights Agreement................................................................  15
(i) Lock-Up Agreement from Certain Securityholders of the Company................................  16
(j) PORTAL Designation...........................................................................  16
(k) Additional Documents.........................................................................  16
SECTION 6. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF INITIAL PURCHASERS......................  16
SECTION 7. REIMBURSEMENT OF INITIAL PURCHASERS' EXPENSES.........................................  17
SECTION 8. INDEMNIFICATION.......................................................................  17
(a) Indemnification of the Initial Purchasers....................................................  17
(b) Indemnification of the Company, its Directors and Officers...................................  18
(c) Notifications and Other Indemnification Procedures...........................................  18
(d) Settlements..................................................................................  19
SECTION 9. CONTRIBUTION..........................................................................  19
SECTION 10. DEFAULT OF ONE OR MORE OF THE SEVERAL INITIAL PURCHASERS.............................  20
SECTION 11. TERMINATION OF THIS AGREEMENT........................................................  21
SECTION 12. REPRESENTATIONS AND INDEMNITIES TO SURVIVE DELIVERY..................................  22
SECTION 13. NOTICES..............................................................................  22
SECTION 14. SUCCESSORS...........................................................................  22
SECTION 15. PARTIAL UNENFORCEABILITY.............................................................  23
SECTION 16. GOVERNING LAW PROVISIONS.............................................................  23
SECTION 17. GENERAL PROVISIONS...................................................................  23
</TABLE>

<PAGE>

                               PURCHASE AGREEMENT

                                                                   June 24, 2004

BANC OF AMERICA SECURITIES LLC
As Representative of the several Initial Purchasers
9 West 57th Street
New York, New York  10019

Ladies and Gentlemen:

                  Per-Se Technologies, Inc., a Delaware corporation (the
"Company), proposes to issue and sell to the several initial purchasers named in
Schedule A (the "Initial Purchasers") $100,000,000 in aggregate principal amount
of its 3.25% Convertible Subordinated Debentures Due 2024 (the "Firm
Debentures"). In addition, the Company has granted to the Initial Purchasers an
option to purchase up to an additional $25,000,000 in aggregate principal amount
of its 3.25% Convertible Subordinated Debentures Due 2024 (the "Optional
Debentures" and, together with the Firm Debentures, the "Debentures"). The
Debentures will be redeemable at the Company's option at any time after July 6,
2009. Banc of America Securities LLC ("BAS") has agreed to act as representative
of the several Initial Purchasers (in such capacity, the "Representative") in
connection with the offering and sale of the Debentures.

                  The Debentures will be convertible into fully paid,
non-assessable shares of common stock, par value $.01 per share, of the Company
(the "Common Stock") together with the rights (the "Rights") evidenced by such
Common Stock to the extent provided in the Rights Agreement (the "Rights
Agreement") dated February 11, 1999, as amended, between the Company and
American Stock Transfer & Trust Company. The Debentures will be convertible
initially at a conversion rate of 56.0243 shares per $1,000 principal amount of
the Debentures, on the terms, and subject to the conditions, set forth in the
Indenture (as defined below). As used herein, "Conversion Shares" means the
shares of Common Stock and accompanying Rights into which the Debentures are
convertible. The Debentures will be issued pursuant to an indenture (the
"Indenture") to be dated as of the First Closing Date (as defined in Section 2),
between the Company and U.S. Bank National Association, a banking corporation,
as trustee (the "Trustee").

                  The Debentures will be offered and sold to the Initial
Purchasers without being registered under the Securities Act of 1933, as
amended, and the rules and regulations (the "Rules and Regulations") of the
Securities and Exchange Commission (the "Commission") thereunder (the
"Securities Act"), in reliance upon an exemption therefrom.

                  The Company will enter into an Amendment, dated as of June 30,
2004 (the "Credit Agreement Amendment"), to its Credit Agreement dated as of
September 11, 2003, among the Company, certain subsidiaries of the Company
identified therein, as Guarantors, the Lenders identified therein and Bank of
America, N.A., as Administrative Agent (the "Credit Agreement"), that amends the
Credit Agreement to permit the transactions contemplated by this Agreement.

<PAGE>
                                       2

                  Holders of the Debentures (including the Initial Purchasers
and their direct and indirect transferees) will be entitled to the benefits of a
Resale Registration Rights Agreement, dated the First Closing Date, between the
Company and the Initial Purchasers (the "Registration Rights Agreement"),
pursuant to which the Company will agree to file with the Commission a shelf
registration statement pursuant to Rule 415 under the Securities Act (the
"Registration Statement") covering the resale of the Debentures and the
Conversion Shares, and to use its commercially reasonable efforts to cause the
Registration Statement to be declared effective. This Agreement, the Indenture,
the Debentures, the Credit Agreement Amendment and the Registration Rights
Agreement are referred to herein collectively as the "Operative Documents."

                  The Company understands that the Initial Purchasers propose to
make an offering of the Debentures on the terms and in the manner set forth
herein and in the Offering Memorandum (as defined below) and agrees that the
Initial Purchasers may resell, subject to the conditions set forth herein, all
or a portion of the Debentures to purchasers (the "Subsequent Purchasers") at
any time after the date of this Agreement. The Debentures are to be offered and
sold to or through the Initial Purchasers without being registered under the
Securities Act in reliance upon exemptions therefrom. The terms of the
Debentures and the Indenture will require that investors that acquire Debentures
expressly agree that Debentures (and any Conversion Shares) may only be resold
or otherwise transferred, after the date hereof, if such Debentures (or
Conversion Shares) are registered for sale under the Securities Act or if an
exemption from the registration requirements of the Securities Act is available
(including the exemption afforded by Rule 144A ("Rule 144A") thereunder).

                  The Company has prepared an offering memorandum dated the date
hereof setting forth information concerning the Company, the Debentures, the
Registration Rights Agreement (as defined below) and the Common Stock in form
and substance reasonably satisfactory to the Initial Purchasers. As used in this
Agreement, "Offering Memorandum" means, collectively, the Preliminary Offering
Memorandum dated as of June 22, 2004 (the "Preliminary Offering Memorandum") and
the offering memorandum dated the date hereof (the "Final Offering Memorandum"),
each as amended or supplemented by the Company. As used herein, each of the
terms "Offering Memorandum", "Preliminary Offering Memorandum" and "Final
Offering Memorandum" shall include in each case the documents incorporated or
deemed to be incorporated by reference therein.

                  The Company hereby confirms its agreements with the Initial
Purchasers as follows:

            SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

                  The Company hereby represents and warrants to, and agrees with
each Initial Purchaser as follows:

      (a) No Registration. Assuming the accuracy of the representations and
warranties of the Initial Purchasers contained in Section 6 and their compliance
with the agreements set forth therein, it is not necessary, in connection with
the issuance and sale of the Debentures to the Initial Purchasers, the offer,
resale and delivery of the Debentures by the Initial Purchasers and the
conversion of the Debentures into Conversion Shares, in each case in the manner
contemplated by this Agreement, the Indenture and the Offering Memorandum, to
register the

<PAGE>
                                       3

Debentures or the Conversion Shares under the Securities Act or to qualify the
Indenture the Trust Indenture Act of 1939, as amended (the "Trust Indenture
Act").

      (b) No Integration. None of the Company or any of its subsidiaries (other
than the Initial Purchasers in connection with the transactions contemplated by
this Agreement, about which no representation is made by the Company) has,
directly or through any agent, sold, offered for sale, solicited offers to buy
or otherwise negotiated in respect of, any "security" (as defined in the
Securities Act) that is or will be integrated with the sale of the Debentures or
the Conversion Shares in a manner that would require registration under the
Securities Act of the Debentures or the Conversion Shares.

      (c) Rule 144A. No securities of the same class (within the meaning of Rule
144A(d)(3) under the Securities Act) as the Debentures are listed on any
national securities exchange registered under Section 6 of the Exchange Act, or
quoted on an automated inter-dealer quotation system.

      (d) Offering Memorandum. The Company hereby confirms that it has
authorized the use of the Offering Memorandum in connection with the offer and
sale of the Securities by the Initial Purchasers. Each document, if any, filed
or to be filed pursuant to the Exchange Act and incorporated by reference in the
Offering Memorandum complied or will comply when it is filed in all material
respects with the Exchange Act and the rules and regulations of the Commission
thereunder. The Preliminary Offering Memorandum does not contain and the Final
Offering Memorandum in the form used by the Initial Purchasers to confirm sales
and as of a Closing Date (as defined in Section 2), will not contain, any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that the Company makes no
representation or warranty as to information contained in or omitted from the
Offering Memorandum in reliance upon and in conformity with written information
furnished to the Company by or on the behalf of the Initial Purchasers
specifically for inclusion therein.

      (e) Offering Materials Furnished to Initial Purchasers. The Company has
delivered (or, in the case of the Final Offering Memorandum, will deliver) to
the Representative Preliminary Offering Memorandums and Final Offering
Memorandums, as amended or supplemented, in such quantities and at such places
as the Representative has reasonably requested for each of the Initial
Purchasers.

      (f) Authorization of the Purchase Agreement. This Agreement has been duly
authorized, executed and delivered by the Company.

      (g) Authorization of the Indenture. The Indenture has been duly authorized
by the Company and, upon the effectiveness of the Registration Statement, will
be qualified under the Trust Indenture Act; on the First Closing Date, the
Indenture will have been duly executed and delivered by the Company and,
assuming due authorization, execution and delivery of the Indenture by the
Trustee, will constitute a legally valid and binding agreement of the Company
enforceable against the Company in accordance with its terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles; and the Indenture
conforms in all material respects to the description thereof contained in the
Offering Memorandum.

<PAGE>
                                       4

      (h) Authorization of the Debentures. The Debentures have been duly
authorized by the Company; when the Debentures are executed, authenticated and
issued in accordance with the terms of the Indenture and delivered to and paid
for by the Initial Purchasers pursuant to this Agreement on the respective
Closing Date (assuming due authentication of the Debentures by the Trustee),
such Debentures will constitute legally valid and binding obligations of the
Company, entitled to the benefits of the Indenture and enforceable against the
Company in accordance with their terms, except as enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by general
equitable principles; and the Debentures will conform in all material respects
to the description thereof contained in the Offering Memorandum.

      (i) Authorization of the Conversion Shares. (i) The shares of Common Stock
initially issuable upon conversion of the Debentures have been duly authorized
and reserved and, when issued upon conversion of the Debentures in accordance
with the terms of the Debentures, will be validly issued, fully paid and
non-assessable, and the issuance of such shares will not be subject to any
preemptive or similar rights and (ii) the Rights, if any, issuable upon
conversion of the Debentures have been duly authorized and, when and if issued
upon conversion in accordance with the terms of the Indenture and the Rights
Agreement, will have been validly issued.

      (j) Authorization of the Registration Rights Agreement. The Registration
Rights Agreement has been duly authorized, executed and delivered by, and is a
valid and binding agreement of, the Company, enforceable against the Company in
accordance with its terms, except as rights to indemnification thereunder may be
limited by applicable law, equitable principles or public policy and except as
the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles.

      (k) Authorization of the Credit Agreement Amendment. The Credit Agreement
Amendment has been duly authorized, executed and delivered by, and is a valid
and binding agreement of, the Company, enforceable against the Company in
accordance with its terms, except as enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general
equitable principles.

      (l) No Material Adverse Change. Except as otherwise disclosed in the
Offering Memorandum (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement), subsequent to the respective dates as
of which information is given in the Offering Memorandum: (i) there has been no
material adverse change, or any development that could reasonably be expected to
result in a material adverse change, in the condition, financial or otherwise,
or in the earnings, business, operations or prospects, whether or not arising
from transactions in the ordinary course of business, of the Company and its
subsidiaries, considered as one entity (any such change is called a "Material
Adverse Change"); (ii) the Company and its subsidiaries, considered as one
entity, have not incurred any material liability or obligation, indirect, direct
or contingent, not in the ordinary course of business, nor entered into any
material transaction or agreement not in the ordinary course of business; and
(iii) there has been no dividend or distribution of any kind declared, paid or
made by the Company or, except for dividends paid to the Company or other
subsidiaries, any of its subsidiaries on any class of capital stock or
repurchase or redemption by the Company or any of its subsidiaries of any class
of capital stock.

<PAGE>
                                       5

      (m) Independent Accountants. Ernst & Young LLP, who have expressed their
opinion with respect to the financial statements (which term as used in this
Agreement includes the related notes thereto) and supporting schedules
incorporated by reference in the Offering Memorandum, are an independent
registered public accounting firm as required by the Securities Act and the
Exchange Act.

      (n) Preparation of the Financial Statements. The financial statements
included in the Offering Memorandum present fairly the consolidated financial
position of the Company and its consolidated subsidiaries as of and at the dates
indicated and the results of their operations and cash flows for the periods
specified. The supporting schedules incorporated in the Offering Memorandum
present fairly the information required to be stated therein. Such financial
statements and supporting schedules have been prepared in conformity with
generally accepted accounting principles in the United States applied on a
consistent basis throughout the periods involved, except as may be expressly
stated in the related notes thereto. The financial data set forth in the
Offering Memorandum under the captions "Summary--Summary Consolidated Financial
Data" and "Capitalization" fairly present the information set forth therein on a
basis consistent with that of the audited financial statements contained in the
Offering Memorandum.

      (o) Incorporation and Good Standing of the Company and its Subsidiaries.
Each of the Company and its subsidiaries has been duly incorporated and is
validly existing as a corporation or a limited liability company in good
standing under the laws of the jurisdiction of its incorporation or organization
and has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Offering Memorandum and, in the
case of the Company, to enter into and perform its obligations under this
Agreement. Each of the Company and each subsidiary is duly qualified as a
foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would
not, individually or in the aggregate, result in a Material Adverse Change. All
of the issued and outstanding capital stock of each subsidiary has been duly
authorized and validly issued, is fully paid and nonassessable and is owned by
the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance or claim other than those granted
pursuant to the Credit Agreement and related loan documents.

      (p) Capitalization and Other Capital Stock Matters. The authorized, issued
and outstanding capital stock of the Company is as set forth in the Offering
Memorandum under the caption "Capitalization" (other than for subsequent
issuances, if any, pursuant to employee benefit plans described in the Offering
Memorandum or upon exercise of outstanding options described in the Offering
Memorandum). The Common Stock (including the Conversion Shares) conforms in all
material respects to the description thereof contained in the Offering
Memorandum. All of the issued and outstanding shares of Common Stock have been
duly authorized and validly issued, are fully paid and nonassessable and have
been issued in compliance with federal and state securities laws. None of the
outstanding shares of Common Stock were issued in violation of any preemptive
rights, rights of first refusal or other similar rights to subscribe for or
purchase securities of the Company. There are no authorized or outstanding
options, warrants, preemptive rights, rights of first refusal or other rights to
purchase, or equity or debt securities convertible into or exchangeable or
exercisable for, any capital stock of the Company or any of its subsidiaries
other than those accurately described in the Offering Memorandum. The
description of the Company's stock option, stock bonus, deferred stock unit and
other stock plans or arrangements ("Stock Plans"), and the options or other
rights granted

<PAGE>
                                       6

thereunder, set forth in the Offering Memorandum accurately and fairly describes
in all material respects such plans, arrangements, options and rights.

      (q) Non-Contravention of Existing Instruments; No Further Authorizations
or Approvals Required. Neither the Company nor any of its subsidiaries is in
violation of its charter or by-laws or is in default (or, with the giving of
notice or lapse of time, would be in default) ("Default") under any indenture,
mortgage, loan or credit agreement, note, contract, franchise, lease or other
instrument to which the Company or any of its subsidiaries is a party or by
which it or any of them may be bound (including, without limitation, the Credit
Agreement, as amended by the Credit Agreement Amendment), or to which any of the
property or assets of the Company or any of its subsidiaries is subject (each,
an "Existing Instrument"), except for such Defaults as would not, individually
or in the aggregate, result in a Material Adverse Change.

                  The Company's execution, delivery and performance of the
Operative Documents and consummation of the transactions contemplated thereby
and by the Offering Memorandum (i) have been duly authorized by all necessary
corporate action and will not result in any violation of the provisions of the
charter or by-laws of the Company, (ii) will not conflict with or constitute a
breach of, or Default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of
its subsidiaries pursuant to, or require the consent of any other party to, any
Existing Instrument and (iii) will not result in any violation of any law,
administrative regulation or administrative or court decree applicable to the
Company. No consent, approval, authorization or other order of, or registration
or filing with, any court or other governmental or regulatory authority or
agency, is required for the Company's execution, delivery and performance of the
Operative Documents and consummation of the transactions contemplated thereby
and by the Offering Memorandum, except (i) with respect to the transactions
contemplated by the Registration Rights Agreement, as may be required under the
Securities Act, the Trust Indenture Act and the Rules and Regulations
promulgated thereunder and (ii) such as have been obtained or made by the
Company and are in full force and effect under the Securities Act, applicable
state securities or blue sky laws.

      (r) No Material Actions or Proceedings. Except as otherwise disclosed in
the Offering Memorandum, there are no legal or governmental actions, suits or
proceedings pending or, to the best of the Company's knowledge, threatened (i)
against or affecting the Company or any of its subsidiaries, (ii) which has as
the subject thereof any officer or director of, or property owned or leased by,
the Company or any of its subsidiaries or (iii) relating to environmental or
discrimination matters, where in any such case (A) there is a reasonable
possibility that such action, suit or proceeding might be determined adversely
to the Company or such subsidiary and (B) any such action, suit or proceeding,
if so determined adversely, would reasonably be expected to result in a Material
Adverse Change or adversely affect the consummation of the transactions
contemplated by this Agreement. No material labor dispute with the employees of
the Company or any of its subsidiaries exists or, to the best of the Company's
knowledge, is threatened or imminent.

      (s) Intellectual Property Rights. The Company and its subsidiaries own or
possess sufficient trademarks, trade names, patent rights, copyrights, domain
names, licenses, approvals, trade secrets and other similar rights
(collectively, "Intellectual Property Rights") reasonably necessary to conduct
their businesses as now conducted; and the expected expiration of any of such
Intellectual Property Rights would not result in a Material Adverse Change.
Neither the Company nor any of its subsidiaries has received any notice of
infringement or conflict with asserted Intellectual Property Rights of others,
which infringement or conflict, if the subject of an unfavorable decision, would
result in a Material Adverse Change. The Company is not a party to

<PAGE>
                                       7

or bound by any options, licenses or agreements with respect to the Intellectual
Property Rights of any other person or entity that are required to be set forth
in the Offering Memorandum and are not described in all material respects. None
of the technology employed by the Company has been obtained or is being used by
the Company in violation of any contractual obligation binding on the Company
or, to the Company's knowledge, any of its officers, directors or employees or
otherwise in violation of the rights of any persons.

      (t) All Necessary Permits, etc. The Company and each subsidiary possess
such valid and current certificates, authorizations or permits issued by the
appropriate state, federal or foreign regulatory agencies or bodies necessary to
conduct their respective businesses, except for such certificates,
authorizations and permits the absence of which would not result in a Material
Adverse Change. Neither the Company nor any subsidiary has received any notice
of proceedings relating to the revocation or modification of, or non-compliance
with, any such certificate, authorization or permit which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, could
result in a Material Adverse Change.

      (u) Title to Properties. The Company and each of its subsidiaries has good
and marketable title to all the properties and assets reflected as owned in the
financial statements included in the Offering Memorandum, in each case free and
clear of any security interests, mortgages, liens, encumbrances, equities,
claims and other defects, except those granted pursuant to the Credit Agreement
and related loan documents and except such as do not, singly or in the
aggregate, materially and adversely affect the value of such property and do
not, singly or in the aggregate, materially interfere with the use made or
proposed to be made of such property by the Company or such subsidiary. The real
property, improvements, equipment and personal property held under lease by the
Company or any subsidiary are held under valid and enforceable leases, with such
exceptions as are not material and do not, singly or in the aggregate,
materially interfere with the use made or proposed to be made of such real
property, improvements, equipment or personal property by the Company or such
subsidiary.

      (v) Tax Law Compliance. The Company and its consolidated subsidiaries have
filed all necessary federal, state and foreign income and franchise tax returns
and have paid all taxes required to be paid by any of them and, if due and
payable, any related or similar assessment, fine or penalty levied against any
of them. The Company has made adequate charges, accruals and reserves in the
financial statements included in the Offering Memorandum in respect of all
federal, state and foreign income and franchise taxes for all periods as to
which the tax liability of the Company or any of its consolidated subsidiaries
has not been finally determined.

      (w) Company Not an "Investment Company". The Company is not, and, after
receipt of payment for the Debentures and application of the proceeds as
described in the Offering Memorandum, will not be, required to register as an
"investment company" within the meaning of Investment Company Act.

      (x) Insurance. Except as otherwise disclosed in the Offering Memorandum,
each of the Company and its subsidiaries are insured by institutions believed by
the Company to be recognized, financially sound and reputable with policies in
such amounts and with such deductibles and covering such risks as the Company
deems adequate and customary for its businesses including, but not limited to,
policies covering real and personal property owned or leased by the Company and
its subsidiaries against theft, damage, destruction, acts of terrorism or
vandalism and earthquakes. The Company has no reason to believe that it or any
subsidiary will not be able (i) to renew its existing insurance coverage as and
when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to

<PAGE>
                                       8

conduct its business as now conducted and at a cost that would not result in a
Material Adverse Change. Except as described in the Offering Memorandum, neither
of the Company nor any subsidiary has been denied any insurance coverage which
it has sought or for which it has applied and which could reasonably be expected
to result in a Material Adverse Change.

      (y) No Price Stabilization or Manipulation. The Company has not taken and
will not take, directly or indirectly, any action designed to or that might be
reasonably expected to cause or result in unlawful stabilization or manipulation
of the price of the Debentures or the Conversion Shares to facilitate the sale
or resale of the Debentures.

      (z) Related Party Transactions. There are no business relationships or
related-party transactions involving the Company or any subsidiary or any other
person required to be described in the Offering Memorandum which have not been
described as required.

      (aa) Recent Sales. The Company has not sold or issued any shares of Common
Stock, any security convertible into shares of Common Stock or any security of
the same class as the Debentures during the six-month period preceding the date
of the Offering Memorandum, including any sales pursuant to Rule 144A or under
Regulations D or S of the Securities Act, other than shares issued pursuant to
the Stock Plans or pursuant to outstanding options, rights or warrants.

      (bb) No General Solicitation. None of the Company or any of its affiliates
(as defined in Rule 501(b) of Regulation D under the Securities Act ("Regulation
D")), has, directly or through an agent, engaged in any form of general
solicitation or general advertising (as those terms are used in Regulation D) in
connection with the offering of the Debentures or the Conversion Shares under
the Securities Act or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act; the Company has not entered into
any contractual arrangement with respect to the distribution of the Debentures
or the Conversion Shares except for this Agreement and the Registration Rights
Agreement, and the Company will not enter into any such arrangement except as
may be contemplated by this Agreement or the Registration Rights Agreement.

      (cc) No Unlawful Contributions or Other Payments. Neither the Company nor
any of its subsidiaries nor, to the best of the Company's knowledge, any
employee or agent of the Company or any subsidiary, has made any contribution or
other payment to any official of, or candidate for, any federal, state or
foreign office in violation of any law or of the character required to be
disclosed in the Offering Memorandum.

      (dd) Company's Accounting System. Except as described in the Offering
Memorandum, the Company maintains a system of accounting controls sufficient to
provide reasonable assurances that (i) transactions are executed in accordance
with management's general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles in the United States
and to maintain accountability for assets; (iii) access to assets is permitted
only in accordance with management's general or specific authorization; and (iv)
the recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

      (ee) Compliance with Environmental Laws. Except as would not, individually
or in the aggregate, result in a Material Adverse Change (i) neither the Company
nor any of its subsidiaries is in violation of any federal, state, local or
foreign law or regulation relating to pollution or

<PAGE>
                                       9

protection of human health or the environment (including, without limitation,
ambient air, surface water, groundwater, land surface or subsurface strata) or
wildlife, including without limitation, laws and regulations relating to
emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum and
petroleum products (collectively, "Materials of Environmental Concern"), or
otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Materials of Environment Concern
(collectively, "Environmental Laws"), which violation includes, but is not
limited to, noncompliance with any permits or other governmental authorizations
required for the operation of the business of the Company or its subsidiaries
under applicable Environmental Laws, or noncompliance with the terms and
conditions thereof, nor has the Company or any of its subsidiaries received any
written communication, whether from a governmental authority, citizens group,
employee or otherwise, that alleges that the Company or any of its subsidiaries
is in violation of any Environmental Law; (ii) there is no claim, action or
cause of action filed with a court or governmental authority, no investigation
with respect to which the Company has received written notice, and no written
notice by any person or entity alleging potential liability for investigatory
costs, cleanup costs, governmental responses costs, natural resources damages,
property damages, personal injuries, attorneys' fees or penalties arising out
of, based on or resulting from the presence, or release into the environment, of
any Material of Environmental Concern at any location owned, leased or operated
by the Company or any of its subsidiaries, now or in the past (collectively,
"Environmental Claims"), pending or, to the best of the Company's knowledge,
threatened against the Company or any of its subsidiaries or any person or
entity whose liability for any Environmental Claim the Company or any of its
subsidiaries has retained or assumed either contractually or by operation of
law; and (iii) to the best of the Company's knowledge, there are no past or
present actions, activities, circumstances, conditions, events or incidents,
including, without limitation, the release, emission, discharge, presence or
disposal of any Material of Environmental Concern, that reasonably could result
in a violation of any Environmental Law or form the basis of a potential
Environmental Claim against the Company or any of its subsidiaries or against
any person or entity whose liability for any Environmental Claim the Company or
any of its subsidiaries has retained or assumed either contractually or by
operation of law.

      (ff) ERISA Compliance. The Company and its subsidiaries and any "employee
benefit plan" (as defined under the Employee Retirement Income Security Act of
1974, as amended, and the regulations and published interpretations thereunder
(collectively, "ERISA")) established or maintained by the Company, its
subsidiaries or their "ERISA Affiliates" (as defined below) are in compliance in
all material respects with ERISA. "ERISA Affiliate" means, with respect to the
Company or a subsidiary, any member of any group of organizations described in
Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
amended, and the regulations and published interpretations thereunder (the
"Code") of which the Company or such subsidiary is a member. No "reportable
event" (as defined under ERISA) has occurred or is reasonably expected to occur
with respect to any "employee benefit plan" established or maintained by the
Company, its subsidiaries or any of their ERISA Affiliates. No "employee benefit
plan" established or maintained by the Company, its subsidiaries or any of their
ERISA Affiliates, if such "employee benefit plan" were terminated, would have
any "amount of unfunded benefit liabilities" (as defined under ERISA). Neither
the Company, its subsidiaries nor any of their ERISA Affiliates has incurred or
reasonably expects to incur any liability under (i) Title IV of ERISA with
respect to termination of, or withdrawal from, any "employee benefit plan" or
(ii) Sections 412, 4971, 4975 or 4980B of the Code. Each "employee benefit plan"
established or maintained by the Company, its subsidiaries or any of their ERISA
Affiliates that is intended to be qualified under Section 401(a) of the Code is
so qualified and nothing has occurred, whether by action or failure to act,
which would cause the loss of such qualification.

<PAGE>
                                       10

      (gg) Brokers. Except as otherwise disclosed in the Offering Memorandum,
there is no broker, finder or other party that is entitled to receive from the
Company any brokerage or finder's fee or other fee or commission as a result of
any transactions contemplated by this Agreement.

      (hh) No Outstanding Loans or Other Indebtedness. There are no outstanding
loans, advances (except normal advances for business expenses in the ordinary
course of business) or guarantees or indebtedness by the Company to or for the
benefit of any of the officers or directors of the Company or any of the members
of any of their families, except as disclosed in the Offering Memorandum.

      (ii) Compliance with Laws. The Company has not been advised, and has no
reason to believe, that it and each of its subsidiaries are not conducting
business in compliance with all applicable laws, rules and regulations of the
jurisdictions in which it is conducting business, except where failure to be so
in compliance would not result in a Material Adverse Change.

                  Any certificate signed by an officer of the Company and
delivered to the Representative or to counsel for the Initial Purchasers shall
be deemed to be a representation and warranty by the Company to each Initial
Purchaser as to the matters set forth therein.

                  The Company acknowledges that the Initial Purchasers and, for
purposes of the opinions to be delivered pursuant to Section 5 hereof, counsel
to the Company and counsel to the Initial Purchasers, will rely upon the
accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.

      SECTION 2. PURCHASE, SALE AND DELIVERY OF THE DEBENTURES.

      (a) The Firm Debentures. The Company agrees to issue and sell to the
several Initial Purchasers the Firm Debentures upon the terms herein set forth.
On the basis of the representations, warranties and agreements herein contained,
and upon the terms but subject to the conditions herein set forth, the Initial
Purchasers agree, severally and not jointly, to purchase from the Company the
respective principal amount of Firm Debentures set forth opposite their names on
Schedule A at a purchase price of 97.75% of the aggregate principal amount
thereof.

      (b) The First Closing Date. Delivery of the Firm Debentures to be
purchased by the Initial Purchasers and payment therefor shall be made at the
offices of Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York (or
such other place as may be agreed to by the Company and the Representative) at
9:00 a.m. New York time, on June 30, 2004 (unless postponed in accordance with
Section 10) or such other time and date as may be agreed to by the Company and
the Representative (the time and date of such closing are called the "First
Closing Date").

      (c) The Optional Debentures; the Second Closing Date. In addition, on the
basis of the representations, warranties and agreements herein contained, and
upon the terms but subject to the conditions herein set forth, the Company
hereby grants an option to the several Initial Purchasers to purchase, severally
and not jointly, up to $25,000,000 aggregate principal amount of Optional
Debentures from the Company at the same price as the purchase price to be paid
by the Initial Purchasers for the Firm Debentures. The option granted hereunder
may be exercised at any time (but not more than once) upon notice by the
Representative to the Company, so long as such notice is given within 30 days
from the date of this Agreement. Such notice shall set forth (i) the amount
(which shall be an integral multiple of $1,000 in aggregate principal amount) of

<PAGE>
                                       11

Optional Debentures as to which the Initial Purchasers are exercising the option
and (ii) the time, date and place at which such Debentures will be delivered
(which time and date may be simultaneous with, but not earlier than, the First
Closing Date; and in such case the term "First Closing Date" shall refer to the
time and date of delivery of the Firm Debentures and the Optional Debentures).
Such time and date of delivery, if subsequent to the First Closing Date, is
called the "Second Closing Date" and shall be determined by the Representative,
but shall not be later than 10 days after the notice from the Representative. If
any Optional Debentures are to be purchased, each Initial Purchaser agrees,
severally and not jointly, to purchase the principal amount of Optional
Debentures (subject to such adjustments to eliminate fractional amount as the
Representative may determine) that bears the same proportion to the total
principal amount of Optional Debentures to be purchased as the principal amount
of Firm Debentures set forth on Schedule A opposite the name of such Initial
Purchaser bears to the total principal amount of Firm Debentures. The
Representative may cancel the option at any time prior to its expiration by
giving written notice of such cancellation to the Company. Each of the First
Closing Date and the Second Closing Date is called a "Closing Date."

      (d) Payment for the Debentures. Payment for the Firm Debentures and the
Optional Debentures shall be made at the First Closing Date and the Second
Closing Date, respectively, by wire transfer of immediately available funds to
one or more accounts specified by the Company.

                  It is understood that the Representative has been authorized,
for its own account and the accounts of the several Initial Purchasers, to
accept delivery of and receipt for, and make payment of the purchase price for,
the Firm Debentures and any Optional Debentures the Initial Purchasers have
agreed to purchase. BAS, individually and not as the Representative of the
Initial Purchasers, may (but shall not be obligated to) make payment for any
Debentures to be purchased by any Initial Purchaser whose funds shall not have
been received by the Representative by the First Closing Date or the Second
Closing Date, as the case may be, for the account of such Initial Purchaser, but
any such payment shall not relieve such Initial Purchaser from any of its
obligations under this Agreement.

      (e) Delivery of the Debentures. The Company shall deliver, or cause to be
delivered, to the Representative for the accounts of the several Initial
Purchasers the Firm Debentures in the form of one or more permanent global
securities (the "Global Debentures"), deposited with the Trustee as custodian
for DTC and registered in the name of Cede & Co., as nominee for DTC, at the
First Closing Date, against the irrevocable release of a wire transfer of
immediately available funds for the amount of the purchase price therefor. The
Company shall also deliver, or cause to be delivered, to the Representative for
the accounts of the several Initial Purchasers, the Optional Debentures in the
form Global Debentures, deposited with the Trustee as custodian for DTC and
registered in the name of Cede & Co., as nominee for DTC, which the Initial
Purchasers have agreed to purchase at the First Closing Date or the Second
Closing Date, as the case may be, against the irrevocable release of a wire
transfer of immediately available funds for the amount of the purchase price
therefor. Time shall be of the essence, and delivery at the time and place
specified in this Agreement is a further condition to the obligations of the
Initial Purchasers.

      SECTION 3. ADDITIONAL COVENANTS OF THE COMPANY.

                  The Company further covenants and agrees with each Initial
Purchaser as follows:

      (a) Representative's Review of Proposed Amendments and Supplements. During
such period beginning on the date hereof and ending on the date which is the
earlier of nine months

<PAGE>
                                       12

after the date hereof or the completion of the resale of the Debentures by the
Initial Purchasers (as notified by the Initial Purchasers to the Company), prior
to amending or supplementing the Offering Memorandum, the Company shall furnish
to the Representative for review a copy of each such proposed amendment or
supplement, and the Company shall not print or distribute such proposed
amendment or supplement to which the Representative reasonably objects.

      (b) Amendments and Supplements to the Offering Memorandum and Other
Securities Act Matters. If, at any time prior to the earlier of nine months
after the date hereof or the completion of the resale of the Debentures by the
Initial Purchasers (as notified by the Initial Purchasers to the Company), any
event shall occur or condition exist as a result of which it is necessary to
amend or supplement the Offering Memorandum in order that the Offering
Memorandum will not include an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances existing at the time it is delivered to a purchaser,
not misleading, or if in the opinion of the Representative or counsel for the
Initial Purchasers it is otherwise necessary to amend or supplement the Offering
Memorandum to comply with law, the Company shall promptly notify the Initial
Purchasers and prepare, subject to Section 3(a) hereof, such amendment or
supplement as may be necessary to correct such untrue statement or omission.

      (c) Copies of Offering Memorandum. The Company agrees to furnish the
Representative, without charge, until the earlier of nine months after the date
hereof or the completion of the resale of the Debentures by the Initial
Purchasers (as notified by the Initial Purchasers to the Company) as many copies
of the Offering Memorandum and any amendments and supplements thereto as the
Representative may request.

      (d) Blue Sky Compliance. The Company shall cooperate with the
Representative and counsel for the Initial Purchasers, as the Initial Purchasers
may reasonably request from time to time, to qualify or register the Debentures
for sale under (or obtain exemptions from the application of) the state
securities or blue sky laws of those jurisdictions designated by the
Representative, shall comply with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for
the distribution of the Debentures. The Company shall not be required to qualify
as a foreign corporation or to take any action that would subject it to general
service of process in any such jurisdiction where it is not presently qualified
or where it would be subject to taxation as a foreign corporation. So long as
the Company is required to continue such qualifications, registrations or
exemptions, the Company will advise the Representative promptly of the
suspension of the qualification or registration of (or any such exemption
relating to) the Debentures for offering, sale or trading in any jurisdiction or
any initiation or threat of any proceeding for any such purpose, and in the
event of the issuance of any order suspending such qualification, registration
or exemption, the Company shall use its commercially reasonable efforts to
obtain the withdrawal thereof at the earliest possible moment.

      (e) Rule 144A Information. For so long as any of the Debentures are
"restricted securities" within the meaning of Rule 144(a)(3) under the
Securities Act, the Company shall provide to any holder of the Debentures or to
any prospective purchaser of the Debentures designated by any holder, upon
request of such holder or prospective purchaser, information required to be
provided by Rule 144A(d)(4) of the Securities Act if, at the time of such
request, the Company is not subject to the reporting requirements under Section
13 or 15(d) of the Exchange Act.

<PAGE>
                                       13

      (f) Legends. Each of the Debentures will bear, to the extent applicable,
the legend contained in "Notice to Investors" in the Offering Memorandum for the
time period and upon the other terms stated therein.

      (g) No General Solicitation. Except following the effectiveness of the
Registration Statement (as defined in the Registration Rights Agreement), the
Company will not, and will cause its subsidiaries not to, solicit any offer to
buy or offer to sell the Debentures by means of any form of general solicitation
or general advertising (as those terms are used in Regulation D under the
Securities Act) or in any manner involving a public offering within the meaning
of Section 4(2) of the Securities Act.

      (h) No Integration. The Company will not, and will cause its subsidiaries
not to, sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any "security" (as defined in the Securities Act) in a transaction
that could reasonably be expected to be integrated with the sale of the
Debentures in a manner that would require the registration under the Securities
Act of the Debentures.

      (i) Rule 144 Tolling. During the period of two years after the last
Closing Date, the Company will not, and will not permit any of its "affiliates"
(as defined in Rule 144 under the Securities Act) to, resell any of the
Debentures which constitute "restricted securities" under Rule 144 that have
been reacquired by any of them.

      (j) Use of Proceeds. The Company shall apply the net proceeds from the
sale of the Debentures sold by it in the manner described under the caption "Use
of Proceeds" in the Offering Memorandum.

      (k) Transfer Agent. The Company shall engage and maintain, at its expense,
a registrar and transfer agent for the Common Stock.

      (l) Agreement Not to Offer or Sell Additional Securities. During the
period commencing on the date hereof and ending on the 90th day following the
date of the Final Offering Memorandum, the Company will not, without the prior
written consent of BAS (which consent may be withheld at the sole discretion of
BAS), directly or indirectly, sell, offer, contract or grant any option to sell,
pledge, transfer or establish an open "put equivalent position" within the
meaning of Rule 16a-1(h) under the Exchange Act, or otherwise dispose of or
transfer, or announce the offering of, or file any registration statement under
the Securities Act in respect of, any shares of Common Stock, options or
warrants to acquire shares of the Common Stock or securities exchangeable or
exercisable for or convertible into shares of Common Stock (other than as
contemplated by this Agreement, the Registration Rights Agreement or the
Debentures); provided, however, that the Company may issue shares of its Common
Stock or options to purchase its Common Stock, or other awards payable in shares
of its Common Stock pursuant to any Stock Plan.

      (m) Investment Limitation. The Company shall not invest or otherwise use
the proceeds received by the Company from its sale of the Debentures in such a
manner as would require the Company or any of its subsidiaries to register as an
investment company under the Investment Company Act.

      (n) No Manipulation of Price. The Company will not take, directly or
indirectly, any action designed to cause or result in, or that has constituted
or might reasonably be expected to constitute, the stabilization or manipulation
of the price of any securities of the Company.

<PAGE>
                                       14

      (o) Listing of Conversion Shares. The Company will use its best efforts to
have the Conversion Shares approved by the Nasdaq National Market ("Nasdaq") for
quotation prior to the effectiveness of the Registration Statement.

      SECTION 4. PAYMENT OF EXPENSES.

                  The Company agrees to pay all costs, fees and expenses
incurred in connection with the performance of its obligations hereunder
including without limitation (i) all expenses incident to the issuance and
delivery of the Debentures (including all printing and engraving costs), (ii)
all fees and expenses of the Trustee under the Indenture, (iii) all necessary
issue, transfer and other stamp taxes in connection with the issuance and sale
of the Debentures to the Initial Purchasers, (iv) all fees and expenses of the
Company's counsel, independent public or certified public accountants, (v) all
costs and expenses incurred in connection with the preparation, printing,
shipping and distribution of the Offering Memorandum, all amendments and
supplements thereto and this Agreement, (vi) all filing fees, attorneys' fees
and expenses incurred by the Company or the Initial Purchasers in connection
with qualifying or registering (or obtaining exemptions from the qualification
or registration of) all or any part of the Debentures for offer and sale under
the state securities or blue sky laws, and, if requested by the Representative,
preparing and printing a "Blue Sky Survey" or memorandum, and any supplements
thereto, advising the Initial Purchasers of such qualifications, registrations
and exemptions, (vii) the expenses of the Company and the Initial Purchasers in
connection with the marketing and offering of the Debentures, (viii) the fees
and expenses associated with listing the Conversion Shares on the Nasdaq
National Market and (ix) all expenses and fees in connection with admitting the
Debentures for trading in the PORTAL Market. Except as provided in this Section
4, Section 7, Section 10 and Section 11 hereof, the Initial Purchasers shall pay
their own expenses, including the fees and disbursements of their counsel.

      SECTION 5. CONDITIONS OF THE OBLIGATIONS OF THE INITIAL PURCHASERS.

                  The obligations of the several Initial Purchasers to purchase
and pay for the Debentures as provided herein on the First Closing Date and,
with respect to the Optional Debentures, the Second Closing Date, shall be
subject to the accuracy of the representations and warranties on the part of the
Company set forth in Section 1 hereof as of the date hereof and as of the First
Closing Date as though then made and, with respect to the Optional Debentures,
as of the Second Closing Date as though then made, to the timely performance by
the Company of its covenants and other obligations hereunder, and to each of the
following additional conditions:

      (a) Accountants' Comfort Letter. On the date hereof, the Representative
shall have received from Ernst & Young LLP, independent auditors for the
Company, a letter dated the date hereof addressed to the Initial Purchasers, in
form and substance satisfactory to the Representative, containing statements and
information of the type ordinarily included in accountants' "comfort letters" to
Initial Purchasers, delivered according to Statement of Auditing Standards No.
72 (or any successor bulletin), with respect to the audited and unaudited
financial statements and certain financial information contained in the Offering
Memorandum.

      (b) No Material Adverse Change or Rating Agency Change. For the period
from and after the date of this Agreement and prior to the First Closing Date
and, with respect to the Optional Debentures, the Second Closing Date:

            (i) in the judgment of the Representative there shall not have
      occurred any Material Adverse Change; and

<PAGE>
                                       15

            (ii) there shall not have occurred any downgrading, nor shall any
      notice have been given of any intended or potential downgrading or of any
      review for a possible change that does not indicate the direction of the
      possible change, in the rating accorded any securities of the Company or
      any of its subsidiaries or in the rating outlook for the Company or any of
      its subsidiaries by any "nationally recognized statistical rating
      organization" as such term is defined for purposes of Rule 436(g)(2) under
      the Securities Act.

            (c) Opinion of Counsel for the Company. On each of the First Closing
      Date and the Second Closing Date the Representative shall have received
      the favorable opinions of (i) Alston & Bird LLP, outside counsel for the
      Company, dated as of such Closing Date, the form of which is attached as
      Exhibit A-1 and (ii) internal counsel for the Company, dated as of such
      Closing Date, the form of which is attached as Exhibit A-2.

      (d) Opinion of Counsel for the Initial Purchasers. On each of the First
Closing Date and the Second Closing Date the Representative shall have received
the favorable opinion of Davis Polk & Wardwell, counsel for the Initial
Purchasers, dated as of such Closing Date, the form of which is attached as
Exhibit B.

      (e) Officers' Certificate. On each of the First Closing Date and the
Second Closing Date the Representative shall have received a written certificate
executed by the Chairman of the Board, Chief Executive Officer or President of
the Company and the Chief Financial Officer or Chief Accounting Officer of the
Company, dated as of such Closing Date, to the effect set forth in subsection
(b)(ii) of this Section 5, and further to the effect that:

            (i) for the period from and after the date of this Agreement and
      prior to such Closing Date, there has not occurred any Material Adverse
      Change;

            (ii) the representations and warranties of the Company set forth in
      Section 1 of this Agreement are true and correct with the same force and
      effect as though expressly made on and as of such Closing Date; and

            (iii) the Company has complied with all the covenants and agreements
      hereunder and satisfied all the conditions on its part to be performed or
      satisfied hereunder at or prior to such Closing Date.

      (f) Bring-down Comfort Letter. On each of the First Closing Date and the
Second Closing Date the Representative shall have received from Ernst & Young
LLP, independent auditors for the Company, a letter dated such date, in form and
substance satisfactory to the Representative, to the effect that they reaffirm
the statements made in the letter furnished by them pursuant to subsection (a)
of this Section 5, except that the specified date referred to therein for the
carrying out of procedures shall be no more than three business days prior to
the First Closing Date or Second Closing Date, as the case may be.

      (g) Registration Rights Agreement. The Company and the Initial Purchasers
shall have executed and delivered the Registration Rights Agreement (in form and
substance satisfactory to the Initial Purchasers), and the Registration Rights
Agreement shall be in full force and effect.

      (h) Credit Agreement Amendment. The Credit Agreement Amendment shall have
been duly entered into by the Company, the Guarantors, the Lenders identified
therein and the Administrative Agent (as defined in the Credit Agreement) and
shall be in full force and effect.

<PAGE>
                                       16

      (i) Lock-Up Agreement from Certain Securityholders of the Company. On or
prior to the date hereof, the Company shall have furnished to the Representative
an agreement in the form of Exhibit C hereto from the executive officers and
directors of the Company, and such agreement shall be in full force and effect
on each of the First Closing Date and the Second Closing Date.

      (j) PORTAL Designation. The Debentures shall have been designated
PORTAL-eligible securities in accordance with the rules and regulations of the
National Association of Securities Dealers, Inc.

      (k) Additional Documents. On or before each of the First Closing Date and
the Second Closing Date, the Representative and counsel for the Initial
Purchasers shall have received such information, documents and opinions as they
may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Debentures as contemplated herein, or in order to
evidence the accuracy of any of the representations and warranties, or the
satisfaction of any of the conditions or agreements, herein contained.

            If any condition specified in this Section 5 is not satisfied when
and as required to be satisfied, this Agreement may be terminated by the
Representative by notice to the Company at any time on or prior to the First
Closing Date and, with respect to the Optional Debentures, at any time prior to
the Second Closing Date, which termination shall be without liability on the
part of any party to any other party, except that Section 4, Section 7 Section 8
and Section 9 shall at all times be effective and shall survive such
termination.

      SECTION 6. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF INITIAL
PURCHASERS.

            Each of the Initial Purchasers represents and warrants that it is a
"qualified institutional buyer," as defined in Rule 144A of the Securities Act.
Each Initial Purchaser agrees with the Company that:

            (a) The Debentures and the Conversion Shares have not been and will
not be registered under the Securities Act in connection with the initial
offering of the Debentures.

            (b) The Initial Purchasers are purchasing the Debentures pursuant to
a private sale exemption from registration under the Securities Act.

            (c) The Debentures have not been and will not be offered or sold by
such Initial Purchaser or its affiliates acting on its behalf except in
accordance with Rule 144A.

            (d) The Initial Purchasers will not offer or sell the Debentures in
the United States by means of any form of general solicitation or general
advertising within the meaning of Rule 502(c) of Regulation D, including (i) any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar medium or broadcast over television or radio, or
(ii) any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising in the United States.

            (e) The Initial Purchasers have not offered or sold, and will not
offer or sell, any Debentures except to persons whom they reasonably believe to
be QIBs.

<PAGE>
                                       17

      SECTION 7. REIMBURSEMENT OF INITIAL PURCHASERS' EXPENSES.

                  If this Agreement is terminated by the Representative pursuant
to Section 5, Section 10 or Section 11, or if the sale to the Initial Purchasers
of the Debentures on the First Closing Date is not consummated because of any
refusal, inability or failure on the part of the Company to perform any
agreement herein or to comply with any provision hereof, the Company agrees to
reimburse the Representative and the other Initial Purchasers (or such Initial
Purchasers as have terminated this Agreement with respect to themselves),
severally, upon demand for all out-of-pocket expenses that shall have been
reasonably incurred by the Representative and the Initial Purchasers in
connection with the proposed purchase and the offering and sale of the
Debentures, including but not limited to fees and disbursements of counsel,
printing expenses, travel expenses, postage, facsimile and telephone charges.

      SECTION 8. INDEMNIFICATION.

      (a) Indemnification of the Initial Purchasers. The Company agrees to
indemnify and hold harmless each Initial Purchaser, its officers and employees,
and each person, if any, who controls any Initial Purchaser within the meaning
of the Securities Act and the Exchange Act against any loss, claim, damage,
liability or expense, as and to the extent incurred, to which such Initial
Purchaser or such controlling person may become subject, under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, or
at common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of the Company), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based (i) upon any untrue statement or
alleged untrue statement of a material fact contained in the Offering Memorandum
(or any amendment or supplement thereto), or the omission or alleged omission
therefrom of a material fact, in each case, necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; or (ii) in whole or in part upon any inaccuracy in the
representations and warranties of the Company contained herein; or (iii) in
whole or in part upon any failure of the Company to perform its obligations
hereunder or under law; or (iv) on any act or failure to act or any alleged act
or failure to act by any Initial Purchaser in connection with, or relating in
any manner to, the Debentures or the offering contemplated hereby, and which is
included as part of or referred to in any loss, claim, damage, liability,
expense or action arising out of or based upon any matter covered by clause (i)
above, provided that the Company shall not be liable under this clause (iv) to
the extent that a court of competent jurisdiction shall have determined by a
final judgment that such loss, claim, damage, liability, expense or action
resulted directly from any such acts or failures to act undertaken or omitted to
be taken by such Initial Purchaser through its bad faith or willful misconduct,
and to reimburse each Initial Purchaser and each such controlling person for any
and all expenses reasonably incurred (including reasonable fees and
disbursements of counsel chosen by BAS) as and to the extent such expenses are
incurred by such Initial Purchaser or such controlling person in connection with
investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action; provided, however, that the foregoing
indemnity agreement shall not apply to any loss, claim, damage, liability or
expense to the extent, but only to the extent, arising out of or based upon any
untrue statement or alleged untrue statement or omission or alleged omission
made in reliance upon and in conformity with written information furnished to
the Company by the Representative expressly for use in the Offering Memorandum
(or any amendment or supplement thereto); and provided, further, that with
respect to any Preliminary Offering Memorandum, the foregoing indemnity
agreement shall not inure to the benefit of any Initial Purchaser from whom the
person asserting any loss, claim, damage, liability or expense purchased
Debentures, or any person controlling such Initial Purchaser, if copies of the
Final Offering Memorandum were timely delivered to such

<PAGE>
                                       18

Initial Purchaser pursuant to Section 2 and a copy of the Final Offering
Memorandum (as then amended or supplemented if the Company shall have furnished
any amendments or supplements thereto) was not sent or given by or on behalf of
such Initial Purchaser to such person, at or prior to the written confirmation
of the sale of the Debentures to such person, and if the Final Offering
Memorandum (as so amended or supplemented) would have cured the defect giving
rise to such loss, claim, damage, liability or expense; and provided, further,
nothing in this Section 8(a) shall oblige the Company to indemnify any Initial
Purchaser, or its officers, employees or controlling persons, who has failed to
or refused to purchase Debentures which they have agreed to purchase on the
First Closing Date or the Second Closing Date, as the case may be. The indemnity
agreement set forth in this Section 8(a) shall be in addition to any liabilities
that the Company may otherwise have.

      (b) Indemnification of the Company, its Directors and Officers. Each
Initial Purchaser agrees, severally and not jointly, to indemnify and hold
harmless the Company, each of its directors, each of its officers and each
person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act, against any loss, claim, damage, liability or expense,
as and to the extent incurred, to which the Company, or any such director,
officer or controlling person may become subject, under the Securities Act, the
Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of such Initial Purchaser),
insofar as such loss, claim, damage, liability or expense (or actions in respect
thereof as contemplated below) arises out of or is based upon any untrue or
alleged untrue statement of a material fact contained in the Offering Memorandum
(or any amendment or supplement thereto), or arises out of or is based upon the
omission or alleged omission to state therein a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Offering Memorandum (or any amendment or supplement
thereto), in reliance upon and in conformity with written information furnished
to the Company by the Representative expressly for use therein; and to reimburse
the Company, and each such director, officer or controlling person for any and
all expenses reasonably incurred (including reasonable fees and disbursements of
counsel chosen by the Company) as and to the extent such expenses are incurred
by the Company, or such director, officer or controlling person in connection
with investigating, defending, settling, compromising or paying any such loss,
claim, damage, liability, expense or action. The Company hereby acknowledges
that the only information that the Initial Purchasers have furnished to the
Company expressly for use in the Offering Memorandum (or any amendment or
supplement thereto) are the statements set forth in Schedule B; and the Initial
Purchasers confirm that such statements are correct. The indemnity agreement set
forth in this Section 8(b) shall be in addition to any liabilities that each
Initial Purchaser may otherwise have.

      (c) Notifications and Other Indemnification Procedures. Promptly after
receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof may be made against an indemnifying party under this Section 8, notify
the indemnifying party in writing of the commencement thereof, but the omission
so to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party for contribution or otherwise than under
the indemnity agreement contained in this Section 8 or to the extent it is not
prejudiced as a proximate result of such failure. In case any such action is
brought against any indemnified party and such indemnified party seeks or
intends to seek indemnity from an indemnifying party, the indemnifying party
will be entitled to participate in, and, to the extent that it shall elect,
jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after

<PAGE>
                                       19

receiving the aforesaid notice from such indemnified party, to assume the
defense thereof with counsel reasonably satisfactory to such indemnified party;
provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and counsel for the indemnified
party shall have reasonably concluded that a conflict may arise between the
positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have
the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party
to such indemnified party of such indemnifying party's election so to assume the
defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence or (ii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the
expense of the indemnifying party (it being understood, however, that the
indemnifying party shall not be liable for the fees or expenses of more than one
separate counsel (together with local counsel), approved by the indemnifying
party (BAS in the case of Section 8(b) and Section 9), representing the
indemnified parties who are parties to such action).

      (d) Settlements. The indemnifying party under this Section 8 shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there is a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
against any loss, claim, damage, liability or expense by reason of such
settlement or judgment. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement, compromise or consent
to the entry of judgment in any pending or threatened action, suit or proceeding
in respect of which any indemnified party is or could have been a party and
indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent (x) includes an unconditional
release of such indemnified party from all liability on claims that are the
subject matter of such action, suit or proceeding and (y) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.

      SECTION 9. CONTRIBUTION.

                  If the indemnification provided for in Section 8 is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount paid or payable by such indemnified party, as and to the
extent incurred, as a result of any losses, claims, damages, liabilities or
expenses referred to therein (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company, on the one hand, and the Initial
Purchasers, on the other hand, from the offering of the Debentures pursuant to
this Agreement or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company, on the one hand, and the Initial Purchasers, on the other
hand, in connection with the statements or omissions or inaccuracies in the
representations and warranties herein which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable
considerations. The

<PAGE>
                                       20

relative benefits received by the Company, on the one hand, and the Initial
Purchasers, on the other hand, in connection with the offering of the Debentures
pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Debentures
pursuant to this Agreement (before deducting expenses) received by the Company,
and the total discount received by the Initial Purchasers bear to the aggregate
initial offering price of the Debentures. The relative fault of the Company, on
the one hand, and the Initial Purchasers, on the other hand, shall be determined
by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact or any such inaccurate or alleged inaccurate representation or warranty
relates to information supplied by the Company, on the one hand, or the Initial
Purchasers, on the other hand, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

                  The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include, subject to the limitations set forth in Section 8(c), any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in
Section 8(c) with respect to notice of commencement of any action shall apply if
a claim for contribution is to be made under this Section 9; provided, however,
that no additional notice shall be required with respect to any action for which
notice has been given under Section 8(c) for purposes of indemnification.

                  The Company and the Initial Purchasers agree that it would not
be just and equitable if contribution pursuant to this Section 9 were determined
by pro rata allocation (even if the Initial Purchasers were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 9.

                  Notwithstanding the provisions of this Section 9, no Initial
Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Debentures purchased by it and distributed to
investors were offered to investors exceeds the amount of any damages which such
Initial Purchaser has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Initial Purchasers' obligations
to contribute pursuant to this Section 9 are several, and not joint, in
proportion to their respective commitments as set forth opposite their names in
Schedule A. For purposes of this Section 9, each officer and employee of an
Initial Purchaser and each person, if any, who controls an Initial Purchaser
within the meaning of the Securities Act and the Exchange Act shall have the
same rights to contribution as such Initial Purchaser, and each director of the
Company, each officer of the Company, and each person, if any, who controls the
Company within the meaning of the Securities Act and the Exchange Act shall have
the same rights to contribution as the Company.

      SECTION 10. DEFAULT OF ONE OR MORE OF THE SEVERAL INITIAL PURCHASERS.

                  If, on the First Closing Date or the Second Closing Date, as
the case may be, any one or more of the several Initial Purchasers shall fail or
refuse to purchase Debentures that it or they have agreed to purchase hereunder
on such date, and the aggregate principal amount of Debentures which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused
to purchase does not exceed 10% of the aggregate principal amount

<PAGE>
                                       21

of the Debentures to be purchased on such date, the other Initial Purchasers
shall be obligated, severally, in the proportions that the principal amount of
Firm Debentures set forth opposite their respective names on Schedule A bears to
the aggregate principal amount of Firm Debentures set forth opposite the names
of all such non-defaulting Initial Purchasers, or in such other proportions as
may be specified by the Representative with the consent of the non-defaulting
Initial Purchasers, to purchase the Debentures which such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase on such
date. If, on the First Closing Date or the Second Closing Date, as the case may
be, any one or more of the Initial Purchasers shall fail or refuse to purchase
Debentures and the aggregate principal amount of Debentures with respect to
which such default occurs exceeds 10% of the aggregate principal amount of
Debentures to be purchased on such date, and arrangements satisfactory to the
Representative and the Company for the purchase of such Debentures are not made
within 48 hours after such default, this Agreement shall terminate without
liability of any party (other than a defaulting Initial Purchaser) to any other
party except that the provisions of Section 4, Section 7, Section 8 and Section
9 shall at all times be effective and shall survive such termination. In any
such case either the Representative or the Company shall have the right to
postpone the First Closing Date or the Second Closing Date, as the case may be,
but in no event for longer than seven days in order that the required changes,
if any, to the Offering Memorandum or any other documents or arrangements may be
effected.

                  As used in this Agreement, the term "Initial Purchaser" shall
be deemed to include any person substituted for a defaulting Initial Purchaser
under this Section 10. Any action taken under this Section 10 shall not relieve
any defaulting Initial Purchaser from liability in respect of any default of
such Initial Purchaser under this Agreement.

      SECTION 11. TERMINATION OF THIS AGREEMENT.

                  On or prior to the First Closing Date this Agreement may be
terminated by the Representative by notice given to the Company if at any time
after the date hereof (i) trading or quotation in any of the Company's
securities shall have been suspended or limited by the Commission or by the
Nasdaq National Market, or trading in securities generally on either the Nasdaq
Stock Market or the New York Stock Exchange shall have been suspended or
limited, or minimum or maximum prices shall have been generally established on
any of such stock exchanges by the Commission or the NASD; (ii) a general
banking moratorium shall have been declared by any federal, New York or Delaware
authority; (iii) there shall have occurred any outbreak or escalation of
national or international hostilities or any crisis or calamity, or any change
in the United States or international financial markets, or any substantial
change or development involving a prospective substantial change in United
States' or international political, financial or economic conditions, as in the
judgment of the Representative is material and adverse and makes it
impracticable to market the Debentures in the manner and on the terms described
in the Offering Memorandum or to enforce contracts for the sale of securities;
(iv) in the judgment of the Representative there shall have occurred any
Material Adverse Change; or (v) the Company shall have sustained a loss by
strike, fire, flood, earthquake, accident or other calamity of such character as
in the judgment of the Representative may, singly or in the aggregate, interfere
materially with the conduct of the business and operations of the Company
regardless of whether or not such loss shall have been insured. Any termination
pursuant to this Section 11 shall be without liability on the part of (a) the
Company to any Initial Purchaser, except that the Company shall be obligated to
reimburse the expenses of the Representative and the Initial Purchasers pursuant
to Sections 4 and 7 hereof, (b) any Initial Purchaser to the Company, or (c) of
any party hereto to any other party except that the provisions of Section 8 and
Section 9 shall at all times be effective and shall survive such termination.

<PAGE>
                                       22

        SECTION 12. REPRESENTATIONS AND INDEMNITIES TO SURVIVE DELIVERY.

                  The respective indemnities, contribution, agreements,
representations, warranties and other statements of the Company, of its officers
and of the several Initial Purchasers set forth in or made pursuant to this
Agreement shall remain operative and in full force and effect, regardless of (i)
any investigation, or statement as to the result hereof, made by or on behalf of
any Initial Purchaser or the Company or any of its or their partners, officers
or directors or any controlling person, as the case may be, and (ii) acceptance
of the Debentures and payment for them hereunder.

        SECTION 13. NOTICES.

                  All communications hereunder shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as
follows:

      If to the Representative:
            Banc of America Securities LLC
            9 West 57th Street
            New York, New York 10019
            Facsimile: 212-583-8457
            Attention: Eric Hambleton

      with a copy to:
            Davis Polk & Wardwell
            450 Lexington Avenue
            New York, New York 10017
            Facsimile: 212-450-4800
            Attention: Winthrop Conrad, Jr.

      If to the Company:
            Per-Se Technologies, Inc.
            2840 Mt. Wilkinson Parkway
            Atlanta, Georgia 30339
            Facsimile: 770-444-4502
            Attention: General Counsel

      with a copy to:
            Alston & Bird LLP
            One Atlantic Center
            1201 West Peachtree Street
            Atlanta, Georgia 30309
            Facsimile: 404-253-8247
            Attention: J. Vaughan Curtis

      Any party hereto may change the address for receipt of communications by
      giving written notice to the others.

        SECTION 14. SUCCESSORS.

                  This Agreement will inure to the benefit of and be binding
upon the parties hereto, including any substitute Initial Purchasers pursuant to
Section 10 hereof, and to the

<PAGE>
                                       23

benefit of the employees, officers and directors and controlling persons
referred to in Section 8 and Section 9, and in each case their respective
successors, and no other person will have any right or obligation hereunder. The
term "successors" shall not include any purchaser of the Debentures as such from
any of the Initial Purchasers merely by reason of such purchase.

      SECTION 15. PARTIAL UNENFORCEABILITY

                  The invalidity or unenforceability of any Section, paragraph
or provision of this Agreement shall not affect the validity or enforceability
of any other Section, paragraph or provision hereof. If any Section, paragraph
or provision of this Agreement is for any reason determined to be invalid or
unenforceable, there shall be deemed to be made such minor changes (and only
such minor changes) as are necessary to make it valid and enforceable.

      SECTION 16. GOVERNING LAW PROVISIONS.

                  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

      SECTION 17. GENERAL PROVISIONS.

                  This Agreement constitutes the entire agreement of the parties
to this Agreement and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings and negotiations with respect to
the subject matter hereof. This Agreement may be executed in two or more
counterparts, each one of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement
may not be amended or modified unless in writing by all of the parties hereto.
The Table of Contents and the Section headings herein are for the convenience of
the parties only and shall not affect the construction or interpretation of this
Agreement.

                  Each of the parties hereto acknowledges that it is a
sophisticated business person who was adequately represented by counsel during
negotiations regarding the provisions hereof, including, without limitation, the
indemnification provisions of Section 8 and the contribution provisions of
Section 9, and is fully informed regarding said provisions. Each of the parties
hereto further acknowledges that the provisions of Sections 8 and 9 hereto
fairly allocate the risks in light of the ability of the parties to investigate
the Company, its affairs and its business in order to assure that adequate
disclosure has been made in the Offering Memorandum (and any amendments and
supplements thereto), as required by the Securities Act and the Exchange Act.

<PAGE>
                                       24

                  If the foregoing is in accordance with your understanding of
our agreement, kindly sign and return to the Company the enclosed copies hereof,
whereupon this instrument, along with all counterparts hereof, shall become a
binding agreement in accordance with its terms.

                                   Very truly yours,

                                   PER-SE TECHNOLOGIES, INC.

                                   By:           /s/ Chris E. Perkins
                                       -----------------------------------------
                                       Name:  Chris E. Perkins
                                       Title: Executive Vice President and Chief
                                              Financial Officer

                  The foregoing Purchase Agreement is hereby confirmed and
accepted by the Representative as of the date first above written.

BANC OF AMERICA SECURITIES LLC
Acting as Representative of the
several Initial Purchasers named in
the attached Schedule A.

By:        /s/ Derek Dillon
    ---------------------------------
    Name:  Derek Dillon
    Title: Managing Director

<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
                                                                AGGREGATE
                                                             PRINCIPAL AMOUNT
                                                                 OF FIRM
                                                             DEBENTURES TO BE
                    INITIAL PURCHASERS                          PURCHASED
<S>                                                          <C>
Banc of America Securities LLC ...........................     $  80,000,000
Wachovia Capital Markets LLC .............................        10,000,000
Jefferies & Company Inc. .................................        10,000,000

         Total............................................     $ 100,000,000
</TABLE>

<PAGE>

                                   SCHEDULE B

      a)    The statements set forth in the first paragraph of text under the
            caption "Plan of Distribution" in the Offering Memorandum,
            concerning the principal amount of Debentures the Initial Purchasers
            have agreed to purchase;

      b)    The statements set forth in the second paragraph of text under the
            caption "Plan of Distribution" in the Offering Memorandum,
            concerning resale of the Debentures by the Initial Purchasers;

      c)    The statements set forth in the sixth paragraph of text under the
            caption "Plan of Distribution" in the Offering Memorandum,
            concerning the intention of the Initial Purchasers to make a market
            in the Debentures; and

      d)    The statements set forth in the eighth paragraph and ninth paragraph
            of text under the caption "Plan of Distribution" in the Offering
            Memorandum, concerning short sales, stabilizing transactions and
            purchases to cover positions created by short sales by the Initial
            Purchasers.

<PAGE>

                                                                     EXHIBIT A-1

                  Opinions of Alston & Bird, LLP, counsel for the Company, to be
delivered pursuant to Section 5(c) of the Purchase Agreement.(1)

                  References to the Offering Memorandum in this Exhibit A
include any supplements thereto at the Closing Date.

            (i) The Company is a corporation, validly existing and in good
      standing under the laws of the State of Delaware.

            (ii) The Company has the corporate power to own, lease and operate
      its properties and to conduct its business as described in the Offering
      Memorandum and to enter into and perform its obligations under the
      Purchase Agreement.

            (iii) The Company is authorized to transact business as a foreign
      corporation in the State of Georgia.

            (iv) PST Services, Inc. is a corporation, validly existing under the
      laws of the State of Georgia, with the corporate power to own, lease and
      operate its properties and to conduct its business as described in the
      Offering Memorandum.

            (v) All of the issued and outstanding capital stock of PST Services,
      Inc. has been duly authorized and validly issued, is fully paid and
      non-assessable and is owned of record by the Company, to such counsel's
      knowledge, free and clear of any security interest, mortgage, pledge, lien
      or encumbrance other than those granted to the lenders pursuant to the
      Credit Agreement and related loan documents.

            (vi) The Purchase Agreement has been duly authorized, executed and
      delivered by the Company.

            (vii) The Indenture has been duly authorized, executed and delivered
      by the Company and is the legally valid and binding agreement of the
      Company, enforceable against the Company in accordance with its terms; and
      the Indenture conforms in all material respects to the description thereof
      contained in the Offering Memorandum.

            (viii) The Debentures have been duly authorized by the Company and,
      when executed, authenticated and issued in accordance with the terms of
      the Indenture and delivered to and paid for by the Initial Purchasers in
      accordance with the terms of the Purchase Agreement, will constitute
      legally valid and binding obligations of the Company, entitled to the
      benefits of the Indenture and enforceable against the Company in
      accordance with their terms; and the Debentures conform in all material
      respects to the description thereof contained in the Offering Memorandum.

            (ix) The shares of Common Stock initially issuable upon conversion
      of the Debentures have been duly authorized and reserved and, when issued
      upon conversion of

----------
(1) Customary assumptions and qualifications will be set forth in a preamble to
the opinions.

                                      A-1-1
<PAGE>

      the Debentures in accordance with the terms of the Debentures and the
      Indenture, will be validly issued, fully paid and non-assessable.

            (x) The Registration Rights Agreement has been duly authorized,
      executed and delivered by the Company and is the legally valid and binding
      agreement of the Company, enforceable against the Company in accordance
      with its terms.

            (xi) The Credit Agreement Amendment has been duly authorized,
      executed and delivered by the Company.

            (xii) Neither registration of the Debentures under the Securities
      Act of 1933, as amended (the "Securities Act"), nor qualification of the
      Indenture under the Trust Indenture Act of 1939, as amended, is required
      for (i) the offer and sale of the Debentures by the Company to the Initial
      Purchasers or (ii) the re-offer and resale of the Debentures by the
      Initial Purchasers to Qualified Institutional Buyers (as defined in Rule
      144A under the Securities Act), in each case in the manner contemplated by
      the Purchase Agreement and the Offering Memorandum. Such counsel need
      express no opinion, however, as to when or under what circumstances any
      Debentures sold by the Initial Purchasers may be reoffered or resold.

            (xiii) The stockholders of the Company do not have any preemptive
      rights, right of first refusal or other similar right to subscribe for or
      purchase securities of the Company under the Delaware General Corporation
      Law, the Company's certificate of incorporation or the Company's bylaws
      or, to such counsel's knowledge, any contractual rights to subscribe for
      any of the Debentures or the Conversion Shares.

            (xiv) The Exchange Act Reports(2) (other than the financial
      statements and related schedules and other financial data therein, as to
      which we express no opinion), when they were filed with the Commission,
      complied as to form in all material respects with the requirements of the
      Exchange Act and the rules and regulations of the Commission thereunder.

            (xv) The statements in the Offering Memorandum under the captions
      "Description of the Debentures", "Description of Capital Stock" and
      "Certain Material United States Federal Income Tax Considerations" insofar
      as such statements summarize federal statutes, rules or regulations, the
      Delaware General Corporation Law, the Company's certificate of
      incorporation, the Company's bylaws or certain contracts or instruments
      discussed therein, are accurate and fair summaries in all material
      respects.

            (xvi) No consent, approval, authorization or other order of, or
      registration or filing with, any federal, State of Georgia or State of New
      York court or other federal, State of Georgia or State of New York
      governmental authority or agency is required to be obtained or made by the
      Company for the Company's execution, delivery and performance of the
      Purchase Agreement and consummation of the transactions contemplated
      thereby and by the Offering Memorandum, except as required under the

----------
(2) This term will be defined to include the SEC reports that have been filed by
the Company pursuant to Exchange Act Section 13(a) and that are specifically
incorporated by reference in the Offering Memorandum.

                                     A-1-2
<PAGE>

      Securities Act, the Trust Indenture Act, applicable state securities or
      blue sky laws and from the NASD.

            (xvii) The execution and delivery of the Purchase Agreement, the
      Indenture and the Debentures by the Company do not, and if the Company
      were now to perform its obligations thereunder such performance would not
      (i) result in any violation of the provisions of the certificate of
      incorporation or bylaws of the Company; (ii) constitute a breach of, or
      default under, or result in the creation or imposition of any lien, charge
      or encumbrance upon any property or assets of the Company or any of its
      subsidiaries pursuant to, (A) the Credit Agreement, as amended by the
      Credit Agreement Amendment, among the Company, certain subsidiaries of the
      Company identified therein, as Guarantors, the Lenders identified therein
      and Bank of America, N.A., as Administrative Agent, or (B) any contract or
      agreement filed as an exhibit to the Company's Annual Report on Form 10-K
      for the fiscal year ended December 31, 2003; or (iii) to such counsel's
      knowledge, any violation of any existing United States federal, State of
      Georgia or State of New York statute, rule or regulation, the Delaware
      General Corporation Law or any administrative or court decree in each case
      to which the Company or any subsidiary is subject.

            (xviii) The Company is not, and after receipt of payment for the
      Debentures will not be, an "investment company" within the meaning of
      Investment Company Act.

                  In addition, such counsel shall state that they have
participated in conferences with officers and other representatives of the
Company, representatives of the independent public or certified public
accountants for the Company and with representatives of the Initial Purchasers
at which the contents of the Offering Memorandum, and any supplements or
amendments thereto, and related matters were discussed and, although such
counsel is not passing upon and does not assume any responsibility for the
accuracy, completeness or fairness of the statements contained in the Offering
Memorandum (other than as specified above), and any supplements or amendments
thereto, on the basis of the foregoing, no facts have come to their attention
which lead them to believe that either the Offering Memorandum or any amendments
thereto, as of its date or at the First Closing Date or the Second Closing Date,
as the case may be, contained an untrue statement of a material fact or omitted
to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading (it
being understood that such counsel need express no belief as to the financial
statements or schedules or other financial or statistical data included or
incorporated by reference in the Offering Memorandum or any amendments or
supplements thereto).

                  In rendering such opinion, such counsel may rely (A) as to
matters involving the application of laws of any jurisdiction other than the
General Corporation Law of the State of Delaware or the federal law of the
United States, to the extent they deem proper and specified in such opinion,
upon the opinion (which shall be dated the First Closing Date or the Second
Closing Date, as the case may be, shall be satisfactory in form and substance to
the Initial Purchasers, shall expressly state that the Initial Purchasers may
rely on such opinion as if it were addressed to them and shall be furnished to
the Representative) of other counsel of good standing whom they believe to be
reliable and who are satisfactory to counsel for the Initial Purchasers;
provided, however, that such counsel shall further state that they believe that
they and the Initial Purchasers are justified in relying upon such opinion of
other counsel, and (B) as to matters of fact, to the extent they deem proper, on
certificates of responsible officers of the Company and public officials.

                                     A-1-3
<PAGE>

                                                                     EXHIBIT A-2

                  Opinions of internal counsel for the Company to be delivered
pursuant to Section 5(c) of the Purchase Agreement.

                  References to the Offering Memorandum in this Exhibit A
include any supplements thereto at the Closing Date.

            (i) Each of __________ and _____________(3) (the "Subsidiaries") is
      a corporation, validly existing and in good standing under the laws of its
      state of incorporation, with the corporate power to own, lease and operate
      its properties and to conduct its business as described in the Offering
      Memorandum. The Subsidiaries are authorized to transact business as
      foreign corporations in the states specified on an exhibit to the opinion.

            (ii) All of the issued and outstanding capital stock of each
      Subsidiary has been duly authorized and validly issued, is fully paid and
      non-assessable and is owned of record by the Company, to such counsel's
      knowledge, free and clear of any security interest, mortgage, pledge, lien
      or encumbrance other than those granted to the lenders pursuant to the
      Credit Agreement and related loan documents.

            (iii) The authorized, issued and outstanding capital stock of the
      Company (including the Common Stock) conform in all material respects to
      the descriptions thereof set forth or incorporated by reference in the
      Offering Memorandum. All of the outstanding shares of Common Stock have
      been duly authorized and validly issued, and are fully paid and
      non-assessable and, to the best of such counsel's knowledge, have been
      issued in compliance with the registration and qualification requirements
      of federal and state securities laws. The descriptions of the Company's
      stock option, deferred stock unit, stock bonus and other stock plans or
      arrangements, and the options or other rights granted and exercised
      thereunder, set forth in the Offering Memorandum are accurately and fairly
      presented in all material respects.

            (iv) Such counsel does not know of any legal or governmental
      actions, suits or proceedings pending or, to such counsel's knowledge,
      threatened (i) against or affecting the Company or any of its
      subsidiaries, (ii) which has as the subject thereof any officer or
      director of, or property owned or leased by, the Company or any of its
      subsidiaries or (iii) relating to environmental or discrimination matters,
      where in any such case (A) there is a reasonable possibility that such
      action, suit or proceeding might be determined adversely to the Company or
      such subsidiary and (B) any such action, suit or proceeding, if so
      determined adversely, would reasonably be expected to, singly or in the
      aggregate, result in a Material Adverse Change or adversely affect the
      consummation of the transactions contemplated by this Agreement. After due
      inquiry, such counsel does not know of any existing or, to the best of
      such counsel's knowledge, threatened or pending, material labor dispute
      with the employees of the Company or any of its subsidiaries.

----------
(3) List the domestic subsidiaries (other than PST Services, Inc.) that meet the
definition of "significant subsidiary" under Securities Act Rule 405.

                                      A-2-1
<PAGE>

            (v) To such counsel's knowledge, the descriptions of the Existing
      Instruments, and references thereto, contained in the Offering Memorandum,
      are correct in all material respects.

            (vi) The Company and each subsidiary possess such valid and current
      certificates, authorizations or permits issued by the appropriate state,
      federal or foreign regulatory agencies or bodies necessary to conduct
      their respective businesses, and, to such counsel's knowledge, neither the
      Company nor any subsidiary has received any notice of proceedings relating
      to the revocation or modification of, or non-compliance with, any such
      certificate, authorization or permit which, singly or in the aggregate, if
      the subject of an unfavorable decision, ruling or finding, could result in
      a Material Adverse Change.

            (vii) The Company and its subsidiaries own or possess sufficient
      Intellectual Property Rights reasonably necessary to conduct their
      business as now conducted; and the expected expiration of any of such
      Intellectual Property Rights would not, singly or in the aggregate, result
      in a Material Adverse Change. To such counsel's knowledge, neither the
      Company nor any of its subsidiaries has received any notice of
      infringement or conflict with, and to the best of such counsel's
      knowledge, there is no infringement of or conflict with, asserted
      Intellectual Property Rights of others, which infringement or conflict, if
      the subject of an unfavorable decision, would, singly or in the aggregate,
      result in a Material Adverse Change. The Company is not a party to or
      bound by any options, licenses or agreements with respect to the
      Intellectual Property Rights of any other person or entity that are
      required to be set forth in the Offering Memorandum and are not described
      in all material respects. To such counsel's knowledge, none of the
      technology employed by the Company has been obtained or is being used by
      the Company in violation of any contractual obligation binding on the
      Company or any of its officers, directors or employees or otherwise in
      violation of the rights of any persons.

                                     A-2-2
<PAGE>

                                                                       EXHIBIT B

                  Opinion of counsel for the Initial Purchasers to be delivered
pursuant to Section 5(d) of the Purchase Agreement.

                  References to the Offering Memorandum in this Exhibit B
include any supplements thereto at the Closing Date.

            (i) The Purchase Agreement has been duly authorized, executed and
      delivered by the Company.

            (ii) The Indenture has been duly authorized by the Company; on the
      First Closing Date, the Indenture will have been duly executed and
      delivered by the Company and, assuming due authorization, execution and
      delivery of the Indenture by the Trustee, will constitute a legally valid
      and binding agreement of the Company enforceable against the Company in
      accordance with its terms, except as enforcement thereof may be limited by
      bankruptcy, insolvency, reorganization, moratorium or other similar laws
      relating to or affecting the rights and remedies of creditors' or by
      general equitable principles.

            (iii) The Debentures have been duly authorized by the Company; when
      the Debentures are executed, authenticated and issued in accordance with
      the terms of the Indenture and delivered to and paid for by the Initial
      Purchasers pursuant to the Purchase Agreement on the respective Closing
      Date (assuming due authentication of the Debentures by the Trustee), such
      Debentures will constitute legally valid and binding obligations of the
      Company, entitled to the benefits of the Indenture and enforceable against
      the Company in accordance with their terms, except as enforcement thereof
      may be limited by bankruptcy, insolvency, reorganization, moratorium or
      other similar laws relating to or affecting the rights and remedies of
      creditors or by general equitable principles.

            (iv) The Registration Rights Agreement has been duly authorized,
      executed and delivered by, and is a valid and binding agreement of, the
      Company, enforceable in accordance with its terms, except as rights to
      indemnification thereunder may be limited by applicable law and except as
      the enforcement thereof may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws relating to or affecting
      creditors' rights generally or by general equitable principles.

            (v) Neither registration of the Debentures under the Securities Act
      of 1933, as amended, nor qualification of the Indenture under the Trust
      Indenture Act of 1939, as amended, is required for the offer and sale of
      the Debentures by the Company to the Initial Purchasers. In expressing
      such opinion, such counsel may rely on the representations, warranties and
      agreements of the Company in Sections 1(b), 1(c) 3(g) and 3(h) of the
      Purchase Agreement and of the Initial Purchasers in Section 6 of the
      Purchase Agreement. Such counsel need express no opinion, however, as to
      when or under what circumstances any Debentures sold by the Initial
      Purchasers may be reoffered or resold.

            (vi) The statements in the Offering Memorandum under the captions
      "Description of the Debentures" and "Plan of Distribution" insofar as such
      statements constitute matters of law, have been reviewed by such counsel
      and fairly summarize, in all material respects, the matters referred to
      therein.

                                      B-1
<PAGE>

                  In addition, such counsel shall state that they have
participated in conferences with officers and other representatives of the
Company, representatives of the independent public or certified public
accountants for the Company and with representatives of the Initial Purchasers
at which the contents of the Offering Memorandum, and any supplements or
amendments thereto, and related matters were discussed and, although such
counsel is not passing upon and does not assume any responsibility for the
accuracy, completeness or fairness of the statements contained in the Offering
Memorandum (other than as specified above), and any supplements or amendments
thereto, on the basis of the foregoing, nothing has come to their attention
which would lead them to believe that either the Offering Memorandum or any
amendments thereto, as of its date or at the First Closing Date or the Second
Closing Date, as the case may be, contained an untrue statement of a material
fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading (it being understood that such counsel need express no
belief as to the financial statements or schedules or other financial or
statistical data derived therefrom, included or incorporated by reference in the
Offering Memorandum or any amendments or supplements thereto).

                                      B-2
<PAGE>

                                                                       EXHIBIT C

                                LOCK-UP AGREEMENT

Banc of America Securities LLC
   As Representative of the Several Initial Purchasers
9 West 57th Street
New York, New York  10019

      Re: Per-Se Technologies, Inc. (the "Company")

Ladies and Gentlemen:

                  The undersigned is an owner of record or beneficially of
certain shares of Common Stock of the Company ("Common Stock") or securities
convertible into or exchangeable or exercisable for Common Stock. The Company
proposes to carry out an offering of Convertible Subordinated Debentures (the
"Offering") for which you will act as the representative (the "Representative")
of the initial purchasers. The undersigned recognizes that the Offering will be
of benefit to the undersigned and will benefit the Company by, among other
things, raising additional capital for its operations. The undersigned
acknowledges that you and the other initial purchasers are relying on the
representations and agreements of the undersigned contained in this letter in
carrying out the Offering and in entering into underwriting arrangements with
the Company with respect to the Offering.

                  In consideration of the foregoing, the undersigned hereby
agrees that the undersigned will not, without the prior written consent of Banc
of America Securities LLC (which consent may be withheld in its sole
discretion), directly or indirectly, sell, offer, contract or grant any option
to sell (including without limitation any short sale) pledge, transfer,
establish an open "put equivalent position" within the meaning of Rule 16a-1(h)
under the Securities Exchange Act of 1934, as amended, or otherwise dispose of
any shares of Common Stock, options or warrants to acquire shares of Common
Stock, or securities exchangeable or exercisable for or convertible into shares
of Common Stock currently or hereafter owned either of record or beneficially
(as defined in Rule 13d-3 under Securities Exchange Act of 1934, as amended) by
the undersigned, or publicly announce the undersigned's intention to do any of
the foregoing, for a period commencing on the date hereof and continuing to a
date 90 days after the date of the Purchase Agreement between the Company and
the initial purchasers with respect to the Offering; provided, however, that
nothing herein shall prevent the undersigned from exercising Common Stock
options (including through a cashless exercise mechanism) as long as the net
shares of Common Stock received upon any such exercise are subject to the
restrictions set forth

                                      C-1
<PAGE>

in this Lock-Up Agreement. The undersigned also agrees and consents to the entry
of stop transfer instructions with the Company's transfer agent and registrar
against the transfer of shares of Common Stock or securities convertible into or
exchangeable or exercisable for Common Stock held by the undersigned except in
compliance with the foregoing restrictions.

                                      C-2
<PAGE>

                  If the Offering is not consummated on or prior to July 15,
2004, the agreements contained herein shall terminate and be of no further force
and effect.

                  This agreement is irrevocable and will be binding on the
undersigned and the respective successors, heirs, personal representatives, and
assigns of the undersigned.

                  Dated: _____________________

______________________________________________
          Printed Name of Holder

By: __________________________________________
                 Signature

______________________________________________
          Printed Name of Person Signing

______________________________________________
  Capacity of Person Signing if Signing as
Custodian, Trustee, or on Behalf of an Entity

                                      C-3

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