Document:

<PAGE>
                                                                   EXHIBIT 10.11

                                  $125,000,000

                                CREDIT AGREEMENT

                                      among

                      ORTHODONTIC CENTERS OF AMERICA, INC.
                                  as Borrower,

                                       AND

                 CERTAIN DOMESTIC SUBSIDIARIES OF THE BORROWER,
                                 as Guarantors,

                                       AND

                         THE LENDERS IDENTIFIED HEREIN,

                                       AND

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

                                       AND

                                  BANK ONE, NA,
                              as Syndication Agent,

                                       AND

                        U.S. BANK, NATIONAL ASSOCIATION,
                             as Documentation Agent

                           DATED AS OF JANUARY 2, 2003

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

<PAGE>

                                TABLE OF CONTENTS
<Table>
<S>                                                                                 <C>
SECTION 1  DEFINITIONS AND ACCOUNTING TERMS...........................................1
         1.1    Definitions...........................................................1
         1.2    Computation of Time Periods and Other Definitional Provisions........21
         1.3    Accounting Terms/Calculation of Financial Covenants..................21
         1.4    Time.................................................................21
         1.5    Rounding of Financial Covenants......................................21
         1.6    References to Agreements and Requirement of Laws.....................22

SECTION 2  CREDIT FACILITY...........................................................22
         2.1    Revolving Loans......................................................22
         2.2    Letter of Credit Subfacility.........................................23
         2.3    Term Loans...........................................................29
         2.4    Continuations and Conversions........................................30
         2.5    Minimum Amounts......................................................30
         2.6    Alternative Rate.....................................................30

SECTION 3  GENERAL PROVISIONS APPLICABLE TO LOANS....................................31
         3.1    Interest.............................................................31
         3.2    Payments Generally...................................................32
         3.3    Prepayments..........................................................33
         3.4    Fees.................................................................34
         3.5    Payment in full at Maturity..........................................34
         3.6    Computations of Interest and Fees....................................34
         3.7    Pro Rata Treatment...................................................35
         3.8    Sharing of Payments..................................................36
         3.9    Capital Adequacy.....................................................36
         3.10   Eurodollar Provisions................................................36
         3.11   Illegality...........................................................37
         3.12   Requirements of Law; Reserves on Eurodollar Loans....................37
         3.13   Taxes................................................................37
         3.14   Compensation / Alternative Rate Breakage Amount......................40
         3.15   Determination and Survival of Provisions.............................40

SECTION 4  GUARANTY..................................................................41
         4.1    Guaranty of Payment..................................................41
         4.2    Obligations Unconditional............................................41
         4.3    Modifications........................................................42
         4.4    Waiver of Rights.....................................................42
         4.5    Reinstatement........................................................42
         4.6    Remedies.............................................................42
         4.7    Limitation of Guaranty...............................................43
         4.8    Rights of Contribution...............................................43

SECTION 5  CONDITIONS PRECEDENT......................................................43
         5.1    Closing Conditions...................................................43
         5.2    Conditions to All Extensions of Credit...............................45

SECTION 6  REPRESENTATIONS AND WARRANTIES............................................46
         6.1    Corporate Organization and Power.....................................46
         6.2    Authorization; Enforceability........................................46
         6.3    No Violation.........................................................46
</Table>

                                        i
<PAGE>

<Table>
<S>                                                                              <C>
         6.4    Governmental and Third-Party Authorization; Permits...............47
         6.5    Litigation........................................................47
         6.6    Taxes.............................................................48
         6.7    Subsidiaries......................................................48
         6.8    Full Disclosure...................................................48
         6.9    Margin Regulations................................................48
         6.10   No Material Adverse Change........................................48
         6.11   Financial Matters.................................................49
         6.12   Ownership of Properties...........................................49
         6.13   ERISA.............................................................49
         6.14   Environmental Matters.............................................50
         6.15   Compliance With Requirements of Laws; HIPAA.......................51
         6.16   Regulated Industries..............................................51
         6.17   Insurance.........................................................51
         6.18   Material Contracts................................................51
         6.19   Labor Relations...................................................52
         6.20   Service Agreements................................................52
         6.21   Reimbursement.....................................................52
         6.22   Fraud and Abuse...................................................52
         6.23   Use of Proceeds...................................................53

SECTION 7  AFFIRMATIVE COVENANTS..................................................53
         7.1    Financial Statements..............................................53
         7.2    Other Business and Financial Information..........................54
         7.3    Corporate Existence; Franchises; Maintenance of Properties........57
         7.4    Compliance with Requirement of Laws/Compliance Program............57
         7.5    Payment of Obligations............................................57
         7.6    Insurance.........................................................57
         7.7    Maintenance of Books and Records; Inspection......................57
         7.8    Affiliated Practices..............................................58
         7.9    Permitted Acquisitions............................................58
         7.10   Creation or Acquisition of Subsidiaries...........................59
         7.11   Use of Proceeds...................................................60
         7.12   Further Assurances................................................60
         7.13   De Minimis Subsidiaries...........................................60

SECTION 8  NEGATIVE COVENANTS.....................................................61
         8.1    Merger; Consolidation.............................................61
         8.2    Indebtedness......................................................61
         8.3    Liens.............................................................63
         8.4    Disposition of Assets.............................................64
         8.5    Investments.......................................................65
         8.6    Restricted Payments...............................................66
         8.7    Transactions with Affiliates......................................66
         8.8    Lines of Business.................................................67
         8.9    Certain Amendments................................................67
         8.10   Limitation on Certain Restrictions................................67
         8.11   No Other Negative Pledges.........................................67
         8.12   Fiscal Year.......................................................67
         8.13   Accounting Changes................................................67
         8.14   Financial Covenants...............................................67
</Table>
                                       ii

<PAGE>

<Table>
<S>                                                                               <C>
SECTION 9  EVENTS OF DEFAULT.......................................................68
         9.1    Event of Default...................................................68
         9.2    Acceleration; Remedies.............................................70
         9.3    Allocation of Payments After Event of Default......................71

SECTION 10  AGENCY PROVISIONS......................................................72
         10.1   Appointment and Authorization of Agents............................72
         10.2   Delegation of Duties...............................................72
         10.3   Liability of Agents................................................73
         10.4   Reliance by Agents.................................................73
         10.5   Notice of Default..................................................73
         10.6   Credit Decision; Disclosure of Information by Agents...............73
         10.7   Indemnification of Agents..........................................74
         10.8   Agents in their Individual Capacity................................74
         10.9   Successor Agent....................................................75
         10.10  Administrative Agent May File Proofs of Claim......................75
         10.11  Collateral and Guaranty Matters....................................76
         10.12  Other Agents; Arrangers and Managers...............................76

SECTION 11  MISCELLANEOUS..........................................................76
         11.1   Notices and Other Communications; Facsimile Copies.................76
         11.2   Right of Set-Off...................................................77
         11.3   Successors and Assigns.............................................78
         11.4   No Waiver; Remedies Cumulative.....................................80
         11.5   Attorney Costs, Expenses, Taxes and Indemnification by Credit
                Parties............................................................81
         11.6   Amendments, Waivers and Consents...................................82
         11.7   Counterparts.......................................................83
         11.8   Headings...........................................................83
         11.9   Survival of Indemnification and Representations and Warranties.....83
         11.10  Governing Law; Venue; Jurisdiction.................................83
         11.11  Waiver of Jury Trial; Waiver of Consequential Damages..............84
         11.12  Severability.......................................................84
         11.13  Further Assurances.................................................84
         11.14  Confidentiality....................................................84
         11.15  Entirety...........................................................84
         11.16  Binding Effect; Continuing Agreement...............................84
</Table>

                                      iii

<PAGE>

<Table>
<Caption>
SCHEDULES
<S>                           <C>
Schedule 1.1(a)               Pro Rata Shares
Schedule 1.1(b)               Existing Letters of Credit
Schedule 1.1(c)               Litigating ORAL Affiliated Practices
Schedule 6.6                  Taxes
Schedule 6.7                  Subsidiaries
Schedule 6.17                 Self-Insurance Coverage
Schedule 6.18                 Material Contracts
Schedule 8.2                  Indebtedness
Schedule 8.3                  Liens
Schedule 8.5                  Investments
Schedule 8.7                  Transactions with Affiliates
Schedule 11.1                 Notices

EXHIBITS

Exhibit 2.1(b)                Form of Notice of Borrowing
Exhibit 2.1(e)                Form of Revolving Note
Exhibit 2.3(d)                Form of Term Note
Exhibit 2.4                   Form of Notice of Continuation/Conversion
Exhibit 2.6                   Form of Request for Alternative Rate
Exhibit 7.2(a)                Form of Compliance Certificate
Exhibit 7.10                  Form of Joinder Agreement
Exhibit 8.6                   Form of Officer's Certificate Regarding Stock Repurchases
Exhibit 11.3(b)               Form of Assignment and Assumption
</Table>

                                       iv
<PAGE>

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT (this "Credit Agreement") is entered into as of
January 2, 2003 among ORTHODONTIC CENTERS OF AMERICA, INC., a Delaware
corporation, as Borrower, certain Domestic Subsidiaries of the Borrower, as
Guarantors, the Lenders and BANK OF AMERICA, N.A., as Administrative Agent, L/C
Issuer and Alternative Rate Lender.

                                    RECITALS

         WHEREAS, the Borrower and the Guarantors have requested the Lenders to
provide a senior credit facility to the Borrower in an aggregate principal
amount of $125,000,000 consisting of a $100,000,000 revolving credit facility
and a $25,000,000 term loan; and

         WHEREAS, the Lenders party hereto have agreed to make the requested
senior credit facility available to the Borrower on the terms and conditions
hereinafter set forth.

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

                                    SECTION 1

                        DEFINITIONS AND ACCOUNTING TERMS

         1.1 DEFINITIONS.

         The following terms shall have the meanings specified herein unless the
context otherwise requires. Defined terms herein shall include in the singular
number the plural and in the plural the singular:

                  "Acquisition" means any transaction or series of related
         transactions, consummated on or after the date hereof, by which any
         Credit Party directly, or indirectly through one or more Subsidiaries,
         (a) acquires any going business, or all or substantially all of the
         assets, of any Person, whether through purchase of assets, merger or
         otherwise or (b) acquires securities or other ownership interests of
         any Person resulting in such Credit Party or any Subsidiary, directly
         or indirectly, having at least a majority of combined voting power of
         the then outstanding securities or other ownership interests of such
         Person.

                  "Acquisition Amount" means, with respect to any Acquisition,
         the sum (without duplication) of (a) the amount of cash paid by the
         Credit Parties and their Subsidiaries in connection with such
         Acquisition, (b) the Fair Market Value of all Capital Stock of the
         Borrower issued or given in connection with such Acquisition, (c) the
         amount (determined by using the face amount or the amount payable at
         maturity, whichever is greater) of all Indebtedness incurred, assumed
         or acquired by the Credit Parties and their Subsidiaries in connection
         with such Acquisition, (d) all additional purchase price amounts in
         connection with such Acquisition in the form of earnouts and other
         contingent obligations that should be recorded as a liability on the
         balance sheet of the Credit Parties and their Subsidiaries or expensed,
         in either event in accordance with GAAP, Regulation S-X under the
         Securities Act or any other rule or regulation of the Securities and
         Exchange Commission, (e) all amounts paid in respect of covenants not
         to compete, consulting agreements and other affiliated contracts in
         connection with such Acquisition, (f) the amount of all transaction
         fees and expenses (including, without limitation, finders' fees and
         expenses, but excluding legal and accounting fees and expenses)
         incurred by the Credit Parties and their Subsidiaries in connection
         with such Acquisition and (g) the aggregate fair market value of all
         other consideration given by the Credit Parties and their Subsidiaries
         in connection with such Acquisition. For purposes of this Credit
         Agreement, all amounts included in calculating the Acquisition Amount
         with respect to any Acquisition for which the Acquisition Amount is
         payable or determinable in a currency other than Dollars shall be
         valued at the Dollar Equivalent thereof as of the relevant date of
         determination.

<PAGE>

                  "Adjusted Base Rate" means the Base Rate plus the Applicable
         Percentage.

                  "Adjusted Consolidated Indebtedness" means, as of any date,
         the sum of (a) Consolidated Indebtedness as of such date plus (b) the
         product of (i) Consolidated Lease Expense as of the last day of the
         most recent fiscal quarter for the four quarter period ending on such
         date multiplied by (ii) eight.

                  "Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
         Applicable Percentage.

                  "Administrative Agent" means Bank of America or any successor
         administrative agent appointed pursuant to Section 10.9.

                  "Administrative Agent's Office" means, with respect to any
         currency, the Administrative Agent's address and, as appropriate,
         account as set forth on Schedule 11.1 with respect to such currency, or
         such other address or account with respect to such currency as the
         Administrative Agent may from time to time notify to the Borrower and
         the Lenders.

                  "Administrative Questionnaire" means an Administrative
         Questionnaire in a form supplied by the Administrative Agent.

                  "Administrative Fees" has the meaning set forth in Section
         3.4(c).

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling (including but not limited to
         all directors and officers of such Person), controlled by or under
         direct or indirect common control with such Person. A Person shall be
         deemed to control a corporation if such Person possesses, directly or
         indirectly, the power (a) to vote 10% or more of the securities having
         ordinary voting power for the election of directors of such corporation
         or (b) to direct or cause direction of the management and policies of
         such corporation, whether through the ownership of voting securities,
         by contract or otherwise.

                  "Affiliated Practice" means any dentist, pediatric dentist,
         orthodontist, professional association, professional corporation,
         partnership or similar Person for whose practice a Credit Party or any
         of its Subsidiaries provides business, management, administrative or
         other non-clinical support services pursuant to a Service Agreement;
         provided, however, any Litigating ORAL Affiliated Practice shall not be
         considered an Affiliated Practice to the extent, and only during the
         period, that such Affiliated Practice is engaged in litigation with any
         Credit Party or any of its Subsidiaries.

                  "Agent-Related Persons" means the Agents, together with their
         Affiliates (including, in the case of Bank of America in its capacities
         as the Administrative Agent, the Collateral Agent and the Arranger),
         and the officers, directors, employees, agents and attorneys-in-fact of
         such Persons and Affiliates.

                  "Agents" means the Administrative Agent and the Collateral
         Agent.

                  "Alternative Rate" means a rate of interest for all or part of
         a Loan agreed to between the Alternative Rate Lender and the Borrower
         pursuant to Section 2.6.

                  "Alternative Rate Agreement" means, with respect to any Loan
         or any portion thereof (including any continuations thereof to
         successive Interest Periods of like duration during the applicable
         Alternative Rate Period), the agreement between the Borrower and the
         Alternative Rate Lender pursuant to Section 2.6 that the Borrower's
         interest payment obligation with respect to such Loan (including
         continuations thereof) during the Alternative Rate Period shall be to
         pay interest at the Alternative Rate rather than the Base Rate or the
         Eurodollar Rate otherwise applicable to such Loan.

                  "Alternative Rate Breakage Amount" means the amount of any
         loss, cost or expense incurred by the Alternative Rate Lender (as
         calculated by it in a commercially reasonable manner, in connection
         with

                                       2
<PAGE>

         which the Alternative Rate Lender may use any reasonable averaging or
         attribution methods) as a result of its termination of, or acquisition
         of an offsetting position with respect to, all or any portion of any
         funding or other hedging arrangement entered into by the Alternative
         Rate Lender in whole or in part in connection with an Alternative Rate
         Agreement. If the Alternative Rate Breakage Amount calculated by the
         Alternative Rate Lender is a positive number, then such amount shall be
         payable by the Borrower pursuant to Section 3.14(b).

                  "Alternative Rate Lender" means Bank of America in its
         capacity as party to an Alternative Rate Agreement with the Borrower
         pursuant to Section 2.6.

                  "Alternative Rate Period" means, with respect to any Loan
         subject to an Alternative Rate Agreement, the stated duration of such
         Alternative Rate Agreement.

                  "Applicable Percentage" means, for Base Rate Loans, Eurodollar
         Loans, L/C Fees and Commitment Fees, the appropriate applicable
         percentages, in each case, corresponding to the Leverage Ratio in
         effect as of the most recent Calculation Date as shown below:

<Table>
<Caption>
                                                                                           Commitment Fees
                                                                                --------------------------------------
                                                                                  Unused Revolving   Unused Revolving
                                                                Applicable        Commitment > 50%     Commitment <=
                                             Applicable       Percentage for             of               50% of
          Pricing          Leverage        Percentage for    Eurodollar Loans        Revolving           Revolving
           Level             Ratio         Base Rate Loans   and for L/C Fees     Committed Amount   Committed Amount
        ------------- ------------------- ------------------ ------------------ ------------------   ------------------
<S>                     <C>                    <C>                <C>                <C>                <C>
             1          < 1.75 to 1.0           0.50%              1.50%              0.450%             0.325%

        ------------- ------------------- ------------------ ------------------ ------------------- ------------------

             2        => 1.75 to 1.0 but
                         < 2.0 to 1.0           0.75%              1.75%              0.475%             0.350%

        ------------- ------------------- ------------------ ------------------ ------------------- ------------------

             3        => 2.0 to 1.0 but
                         < 2.5 to 1.0           1.00%              2.00%              0.500%             0.375%

        ------------- ------------------- ------------------ ------------------ ------------------- ------------------

             4        => 2.5 to 1.0 but
                        < 2.75 to 1.0           1.25%              2.25%              0.525%             0.400%

        ------------- ------------------- ------------------ ------------------ ------------------- ------------------

             5          => 2.75 to 1.0          1.50%              2.50%              0.550%             0.425%

        ------------- ------------------- ------------------ ------------------ ------------------- ------------------
        </Table>

                  The Applicable Percentages shall be determined and adjusted
         quarterly on the date (each a "Calculation Date") five Business Days
         after the date by which the Borrower is required to provide the
         Compliance Certificate in accordance with the provisions of Section
         7.2(a); provided that the initial Applicable Percentages shall be based
         on Pricing Level 3 (as shown above) and shall remain at Pricing Level 3
         until the first Calculation Date subsequent to the Closing Date, and,
         thereafter, the Pricing Level shall be determined by the Leverage Ratio
         calculated as of the most recent Calculation Date; provided further
         that if the Borrower fails to provide the Compliance Certificate
         required by Section 7.2(a) on or before the most recent Calculation
         Date, the Applicable Percentages from such Calculation Date shall be
         based on Pricing Level 5 until such time that an appropriate Compliance
         Certificate is provided whereupon the Pricing Level shall be determined
         by the then

                                       3
<PAGE>

         current Leverage Ratio. Each Applicable Percentage shall be effective
         from one Calculation Date until the next Calculation Date. Any
         adjustment in the Applicable Percentage shall be applicable to all
         existing Loans and Letters of Credit as well as any new Loans made or
         Letters of Credit issued.

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

                  "Arranger" means Banc of America Securities LLC, together with
         its successors and/or assigns.

                  "Asset Disposition" means any sale, assignment, transfer or
         other disposition by the Credit Parties or any of their Subsidiaries to
         any other Person (other than to another Credit Party), whether in one
         transaction or in a series of related transactions, of any of its
         assets, business units or other properties (including any interests in
         property, whether tangible or intangible, and including Capital Stock
         of Subsidiaries), but excluding any sale, assignment, transfer or other
         disposition (a) made in accordance with the terms of Sections 8.4(a) -
         (e), or (b) made in accordance with the terms of Section 8.4(g) to the
         extent the requirements set forth in Section 8.4(g)(iii) with respect
         to the reinvestment of the Net Cash Proceeds from such sale,
         assignment, transfer or other disposition are satisfied; provided that,
         if such requirements set forth in Section 8.4(g)(iii) are not
         satisfied, such sale, assignment, transfer or other disposition shall
         constitute an "Asset Disposition" and such Net Cash Proceeds shall then
         be used to prepay Loans in accordance with the terms of Section
         3.3(b)(ii). It is understood and agreed that any Service Agreement
         Buy-Out of a Litigating ORAL Affiliated Practice shall not be an Asset
         Disposition but that any Service Agreement Buy-Out other than of a
         Litigating ORAL Affiliated Practice shall be an Asset Disposition.

                  "Assignment and Assumption" means an Assignment and Assumption
         substantially in the form of Exhibit 11.3(b).

                  "Authorized Officer" means any of the president, chief
         executive officer, chief financial officer, chief operating officer or
         treasurer of the Borrower.

                  "Bank of America" means Bank of America, N.A., together with
         its successors and/or assigns.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

                  "Base Rate" means for any day a fluctuating rate per annum
         equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and
         (b) the rate of interest in effect for such day as publicly announced
         from time to time by Bank of America as its "prime rate" (the "Prime
         Rate"). The Prime Rate is a rate set by Bank of America based upon
         various factors including Bank of America's costs and desired return,
         general economic conditions and other factors, and is used as a
         reference point for pricing some loans, which may be priced at, above,
         or below such announced rate. Any change in such rate announced by Bank
         of America shall take effect at the opening of business on the day
         specified in the public announcement of such change.

                  "Base Rate Loan" means any Loan (or any portion thereof)
         bearing interest at a rate determined by reference to the Adjusted Base
         Rate.

                  "Borrower" means Orthodontic Centers of America, Inc., a
         Delaware corporation, together with its successors and permitted
         assigns.

                  "Borrowing" means a borrowing consisting of simultaneous
         Revolving Loans of the same Type and, in the case of Eurodollar Loans,
         having the same Interest Period made by each of the Lenders pursuant to
         Section 2.1.

                  "Bridge Credit Agreement" means that certain Bridge Credit
         Agreement, dated as of November 9, 2001, among the Borrower, the
         Guarantors party thereto, the lenders party thereto, Bank of America,
         as

                                       4
<PAGE>

         administrative agent, and Bank One, N.A., as syndication agent, as
         previously amended, modified or supplemented prior to the Closing Date.

                  "Business Day" means any day other than a Saturday, a Sunday,
         a legal holiday or a day on which banking institutions are authorized
         or required by Law or other governmental action to close in New York,
         New York or Charlotte, North Carolina.

                  "Capital Expenditures" means, for any period, the aggregate
         amount (whether paid in cash or accrued as a liability) that would, in
         accordance with GAAP, be included on the consolidated statement of cash
         flows of the Credit Parties and their Subsidiaries for such period as
         additions to equipment, fixed assets, real property or improvements or
         other capital assets (including, without limitation, capital lease
         obligations); provided, however, that Capital Expenditures shall not
         include any such expenditures (a) for replacements and substitutions
         for capital assets, to the extent made with the proceeds of insurance
         or (b) made in connection with Permitted Acquisitions.

                  "Capital Stock" means (a) in the case of a corporation, all
         classes of capital stock of such corporation, (b) in the case of a
         partnership, partnership interests (whether general or limited), (c) in
         the case of a limited liability company, membership interests and (d)
         any other interest or participation that confers on a Person the right
         to receive a share of the profits and losses of, or distributions of
         assets of, the issuing Person; including, in each case, all warrants,
         rights or options to purchase any of the foregoing.

                  "Cash Collateralize" means to pledge and deposit with or
         deliver to the Administrative Agent, for the benefit of the L/C Issuer
         and the Lenders, as collateral for the L/C Obligations, cash or deposit
         account balances pursuant to documentation in form and substance
         satisfactory to the Administrative Agent and the L/C Issuer.

                  "Cash Equivalents" means (a) securities issued or
         unconditionally guaranteed by the United States of America or any
         agency or instrumentality thereof, backed by the full faith and credit
         of the United States of America and maturing within 90 days from the
         date of acquisition, (b) commercial paper issued by any Person
         organized under the Laws of the United States of America, maturing
         within 90 days from the date of acquisition and, at the time of
         acquisition, having a rating of at least A-1 or the equivalent thereof
         by Standard & Poor's Ratings Services or at least P-1 or the equivalent
         thereof by Moody's Investors Service, Inc., (c) time deposits and
         certificates of deposit maturing within 90 days from the date of
         issuance and issued by a bank or trust company organized under the Laws
         of the United States of America or any state thereof that has combined
         capital and surplus of at least $500,000,000 and that has (or is a
         subsidiary of a bank holding company that has) a long-term unsecured
         debt rating of at least A or the equivalent thereof by Standard &
         Poor's Ratings Services or at least A2 or the equivalent thereof by
         Moody's Investors Service, Inc., (d) repurchase obligations with a term
         not exceeding seven days with respect to underlying securities of the
         types described in clause (a) above entered into with any bank or trust
         company meeting the qualifications specified in clause (c) above, and
         (e) money market funds at least 95% of the assets of which are
         continuously invested in securities of the type described in clause (a)
         above.

                  "Closing Date" means the date of this Credit Agreement, which
         is the first date all the conditions precedent in Section 5.1 are
         satisfied or waived in accordance with Section 5.1 (or, in the case of
         Section 5.1(m), waived by the Person entitled to receive the applicable
         payment).

                  "Code" means the Internal Revenue Code of 1986 and the rules
         and regulations promulgated thereunder, as amended, modified, succeeded
         or replaced from time to time.

                  "Collateral" has the meaning set forth in the Collateral
         Documents.

                  "Collateral Agent" means Bank of America, in its capacity as
         collateral agent for the Lenders under the Collateral Documents, and
         its successors and permitted assigns in such capacity.

                                       5
<PAGE>

                  "Collateral Documents" means a collective reference to the
         Pledge and Security Agreement and such other documents, instruments and
         agreements executed and delivered in connection with the attachment and
         perfection of the Collateral Agent's security interests and liens
         arising thereunder, including without limitation, Uniform Commercial
         Code financing statements.

                  "Commitment" means, (a) as to each Revolving Lender, its
         obligation to (i) make Revolving Loans to the Borrower pursuant to
         Section 2.1, or (ii) fund or purchase Participation Interests in L/C
         Obligations pursuant to Section 2.2 and (b) as to each Term Loan
         Lender, its obligation make Term Loans to the Borrower pursuant to
         Section 2.3, in each case in an aggregate principal amount at any one
         time outstanding not to exceed such Lender's Pro Rata Share of the
         Revolving Committed Amount or Term Loan Committed Amount, as
         applicable, as set forth opposite such Lender's name on Schedule 1.1(a)
         or in the Assignment and Assumption pursuant to which such Lender
         becomes a party hereto, as applicable, as such amount may be adjusted
         from time to time in accordance with this Credit Agreement.

                  "Commitment Fees" has the meaning set forth in Section 3.4(a).

                  "Compensation Period" has the meaning set forth in Section
         3.2(c)(ii).

                  "Compliance Certificate" means a fully completed and duly
         executed officer's certificate in the form of Exhibit 7.2(a), together
         with a Covenant Compliance Worksheet.

                  "Consolidated Cash Flow" means, for any period, with respect
         to the Credit Parties and their Subsidiaries on a consolidated basis,
         an amount equal to:

                           (a) Consolidated Net Income for such period, plus

                           (b) an amount which in the determination of
                  Consolidated Net Income for such period has been deducted for
                  (i) Consolidated Interest Expense for such period, (ii)
                  aggregate federal, state, local and other income tax expense
                  for such period, as determined in accordance with GAAP, (iii)
                  depreciation and amortization charges for such period and (iv)
                  Consolidated Lease Expense for such period, plus

                           (c) extraordinary and nonrecurring noncash losses,
                  impairments, expenses or charges (including in connection with
                  the acquisition, purchase, sale or writedown of assets)
                  reducing Consolidated Net Income for such period (not to
                  exceed $10,000,000 during any four consecutive fiscal quarter
                  period); provided that any cash expenses in respect of any
                  noncash losses, expenses or charges included in the
                  calculation of Consolidated Cash Flow pursuant to this clause
                  (c) shall be included (i.e. deducted) in the calculation of
                  Consolidated Cash Flow for the period in which expended, minus

                           (d) extraordinary and nonrecurring gains (including
                  in connection with the sale or write-up of assets or the
                  settlement of contract disputes) and other noncash credits
                  increasing Consolidated Net Income for such period (not to
                  exceed $10,000,000 during any four consecutive fiscal quarter
                  period).

                  "Consolidated Fixed Charges" means, for any period, with
         respect to the Credit Parties and their Subsidiaries on a consolidated
         basis, an amount equal to:

                           (a) Consolidated Interest Expense for such period,
                  plus

                           (b) aggregate federal, state, local and other income
                  tax expense for such period, as determined in accordance with
                  GAAP, plus

                           (c) Capital Expenditures for such period, plus

                                       6
<PAGE>

                           (d) Consolidated Lease Expense for such period, plus

                           (e) the aggregate amount of all scheduled payments of
                  principal on Funded Debt (including, without limitation,
                  Principal Amortization Payments) required to have been made by
                  the Credit Parties and their Subsidiaries during such period
                  (whether or not such payments are actually made), plus

                           (f) the aggregate of all amounts paid by the Borrower
                  during such period as dividends or distributions in respect of
                  its Capital Stock or to purchase, redeem, retire or otherwise
                  acquire its Capital Stock.

                  "Consolidated Funded Debt" means, as of any date of
         determination, with respect to the Credit Parties and their
         Subsidiaries on a consolidated basis, an amount equal to all Funded
         Debt of the Credit Parties and their Subsidiaries as of such date.

                  "Consolidated Indebtedness" means, as of any date of
         determination, with respect to the Credit Parties and their
         Subsidiaries on a consolidated basis, an amount equal to all
         Indebtedness of the Credit Parties and their Subsidiaries as of such
         date.

                  "Consolidated Interest Expense" means, for any period, with
         respect to the Credit Parties and their Subsidiaries on a consolidated
         basis, an amount equal to:

                           (a) total interest expense (not reduced by interest
                  income) of the Credit Parties and their Subsidiaries for such
                  period in respect of Consolidated Funded Debt, as determined
                  in accordance with GAAP, plus

                           (b) all net amounts payable under or in respect of
                  Hedging Agreements, to the extent paid or accrued by a Credit
                  Party or its Subsidiaries during such period, plus ----

                           (c) all commitment fees, financing fees and other
                  ongoing fees in respect of Funded Debt (including the
                  Commitment Fees and the Administrative Fees) paid, accrued or
                  capitalized by the Credit Parties and their Subsidiaries
                  during such period, as determined in accordance with GAAP.

                  "Consolidated Lease Expense" means, for any period, with
         respect to the Credit Parties and their Subsidiaries on a consolidated
         basis, the sum of all lease and rental expense of the Credit Parties
         and their Subsidiaries for such period (including, without limitation,
         all such lease and rental expense accrued or capitalized during such
         period, whether or not actually paid during such period, including
         capital lease obligations), as determined in accordance with GAAP (but
         excluding amounts paid in respect of taxes, utilities, insurance,
         common area maintenance and other like charges associated with the
         lease and rental of real property).

                  "Consolidated Net Income" means, for any period, with respect
         to the Credit Parties and their Subsidiaries on a consolidated basis,
         net income (or loss) for the Credit Parties and their Subsidiaries for
         such period, as determined in accordance with GAAP.

                  "Consolidated Net Worth" means, as of any date of
         determination, with respect to the Credit Parties and their
         Subsidiaries on a consolidated basis, the net worth of the Credit
         Parties and their Subsidiaries as of such date, as determined in
         accordance with GAAP, but excluding any Disqualified Capital Stock.

                  "Contingent Obligation" means, with respect to any Person, any
         direct or indirect liability of such Person with respect to any
         Indebtedness, liability or other obligation (the "primary obligation")
         of another

                                       7
<PAGE>

         Person (the "primary obligor"), whether or not contingent, (a) to
         purchase, repurchase or otherwise acquire such primary obligation or
         any property constituting direct or indirect security therefor, (b) to
         advance or provide funds (i) for the payment or discharge of any such
         primary obligation or (ii) to maintain working capital or equity
         capital of the primary obligor or otherwise to maintain the net worth
         or solvency or any balance sheet item, level of income or financial
         condition of the primary obligor, (c) to purchase property, securities
         or services primarily for the purpose of assuring the owner of any such
         primary obligation of the ability of the primary obligor in respect
         thereof to make payment of such primary obligation or (d) otherwise to
         assure or hold harmless the owner of any such primary obligation
         against loss or failure or inability to perform in respect thereof;
         provided, however, that, with respect to the Credit Parties and their
         Subsidiaries, the term Contingent Obligation shall not include
         endorsements for collection or deposit in the ordinary course of
         business. The amount of any Contingent Obligation of any Person shall
         be deemed to be an amount equal to the maximum amount of such Person's
         liability with respect to the stated or determinable amount of the
         primary obligation for which such Contingent Obligation is incurred or,
         if not stated or determinable, the maximum reasonably anticipated
         liability in respect thereof (assuming such Person is required to
         perform thereunder).

                  "Covenant Compliance Worksheet" shall mean a fully completed
         worksheet in the form of Attachment A to Exhibit 7.2(a).

         "Credit Agreement" has the meaning set forth in the Preamble hereof.

                  "Credit Documents" means this Credit Agreement, the Notes, the
         Collateral Documents, any Joinder Agreement, any Notice of Borrowing,
         any Notice of Continuation/Conversion, any Alternative Rate Agreement
         and any other document, agreement or instrument entered into or
         executed in connection with the foregoing.

                  "Credit Exposure" has the meaning set forth in the definition
         of "Required Lenders."

                  "Credit Extension" means each of the following: (a) the making
         of a Loan and (b) an L/C Credit Extension.

                  "Credit Parties" means the Borrower and the Guarantors and
         "Credit Party" means any one of them.

                  "Credit Party Obligations" means, without duplication, (a) all
         of the obligations of the Credit Parties to the Lenders and the Agents,
         whenever arising, under this Credit Agreement, the Notes or any of the
         other Credit Documents to which any Credit Party is a party and (b) all
         liabilities and obligations owing from any Credit Party to any Lender,
         or any Affiliate of a Lender, arising under Hedging Agreements
         permitted hereunder.

                  "De Minimis Subsidiary" means any Subsidiary of the Borrower
         (other than a Guarantor) (a) that does not have continuing operations,
         (b) the total assets of which do not exceed, on a book value basis,
         $100,000 at any time and (c) the total annual revenues of which do not
         exceed $50,000, which such revenues, in the case of a newly acquired or
         formed Subsidiary, shall be calculated (i) on an annualized basis as of
         the end of each of the first three complete fiscal quarters following
         the acquisition or formation of such Subsidiary and (ii) thereafter on
         a rolling four fiscal quarter basis as of the end of each fiscal
         quarter.

                  "Debt Issuance" means the issuance, incurrence or sale by a
         Credit Party or any of its Subsidiaries of any debt securities or other
         Indebtedness, whether in a public offering of such debt securities or
         Indebtedness or otherwise, other than any Indebtedness expressly
         permitted under Section 8.2.

                  "Debtor Relief Laws" means the Bankruptcy Code, and all other
         liquidation, conservatorship, bankruptcy, assignment for the benefit of
         creditors, moratorium, rearrangement, receivership, insolvency,
         reorganization, or similar debtor relief Laws of the United States or
         other applicable jurisdictions from time to time in effect and
         affecting the rights of creditors generally.

                                       8
<PAGE>

                  "Default" means any event, act or condition which with notice
         or lapse of time, or both, would constitute an Event of Default.

                  "Default Rate" means an interest rate equal to two percent
         (2%) plus the rate that otherwise would be applicable (or if no rate is
         applicable, the Adjusted Base Rate plus two percent (2%) per annum).

                  "Defaulting Lender" means, at any time, any Lender that, (a)
         has failed to make a Loan or purchase or fund a Participation Interest
         (but only for so long as such Loan is not made or such Participation
         Interest is not purchased or funded), (b) has failed to pay to the
         Administrative Agent or any Lender an amount owed by such Lender
         pursuant to the terms of this Credit Agreement (but only for so long as
         such amount has not been repaid) or (c) has been deemed insolvent or
         has become subject to a bankruptcy or insolvency proceeding or to a
         receiver, trustee or similar official.

                  "Disqualified Capital Stock" means, with respect to any
         Person, any Capital Stock of such Person that, by its terms (or by the
         terms of any security into which it is convertible or for which it is
         exchangeable), or upon the happening of any event or otherwise, (a)
         matures or is mandatorily redeemable or subject to any mandatory
         repurchase requirement, pursuant to a sinking fund obligation or
         otherwise, (b) is redeemable or subject to any mandatory repurchase
         requirement at the sole option of the holder thereof, or (c) is
         convertible into or exchangeable for (whether at the option of the
         issuer or the holder thereof) (i) debt securities or (ii) any Capital
         Stock referred to in (a) or (b) above, in each case under (a), (b) or
         (c) above at any time on or prior to the first anniversary of the
         Maturity Date; provided, however, that only the portion of Capital
         Stock that so matures or is mandatorily redeemable, is so redeemable at
         the option of the holder thereof, or is so convertible or exchangeable
         on or prior to such date shall be deemed to be Disqualified Capital
         Stock.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States of America.

                  "Dollar Equivalent" means, at any time, (a) with respect to
         any amount denominated in Dollars, such amount, and (b) with respect to
         any amount denominated in any foreign currency, the equivalent amount
         thereof in Dollars as reasonably determined by the Administrative Agent
         at such time on the basis of the Spot Rate for the purchase of Dollars
         with such foreign currency.

                  "Domestic Subsidiary" means each direct and indirect
         Subsidiary of the Borrower that is organized under the Laws of the
         United States of America or any state thereof or the District of
         Columbia.

                  "Eligible Assignee" means (a) a Lender, (b) an Affiliate of a
         Lender, (c) an Approved Fund and (d) any other Person approved by the
         Administrative Agent, the L/C Issuer and the Borrower (such approval
         not to be unreasonably withheld or delayed); provided that (i) the
         Borrower's consent is not required during the existence and
         continuation of a Default or an Event of Default, (ii) approval by the
         Borrower shall be deemed given if no objection is received by the
         assigning Lender and the Administrative Agent from the Borrower within
         five Business Days after notice of such proposed assignment has been
         delivered to the Borrower and (iii) neither any Credit Party nor any
         Subsidiary or Affiliate of any Credit Party shall qualify as an
         Eligible Assignee.

                  "Environmental Claims" means any and all administrative,
         regulatory or judicial actions, suits, demands, demand letters, claims,
         liens, notices of noncompliance or violation, investigations (other
         than internal reports prepared by any Person in the ordinary course of
         its business and not in response to any third party action or request
         of any kind) or proceedings relating in any way to any actual or
         alleged violation of or liability under any Environmental Law or
         relating to any permit issued, or any approval given, under any such
         Environmental Law (collectively, "Claims"), including, without
         limitation, (a) any and all Claims by Governmental Authorities for
         enforcement, cleanup, removal, response, remedial or other actions or
         damages pursuant to any applicable Environmental Law and (b) any and
         all Claims by any third party seeking damages, contribution,
         indemnification, cost recovery, compensation or injunctive relief

                                       9
<PAGE>

         resulting from Hazardous Substances or arising from alleged injury or
         threat of injury to human health or the environment.

                  "Environmental Laws" shall mean any and all federal, state and
         local laws, statutes, ordinances, rules, regulations, permits,
         licenses, approvals, rules of common law and orders of courts or
         Governmental Authorities, relating to the protection of human health or
         occupational safety or the environment, now or hereafter in effect and
         in each case as amended from time to time, including, without
         limitation, requirements pertaining to the manufacture, processing,
         distribution, use, treatment, storage, disposal, transportation,
         handling, reporting, licensing, permitting, investigation or
         remediation of Hazardous Substances.

                  "Equity Issuance" means the issuance, sale or other
         disposition by a Credit Party or any of its Subsidiaries of its Capital
         Stock, any rights, warrants or options to purchase or acquire any
         shares of its Capital Stock or any other security or instrument
         representing, convertible into or exchangeable for an equity interest
         in such Credit Party or any of its Subsidiaries; provided, however,
         that the term Equity Issuance shall not include (a) the issuance or
         sale of Capital Stock by any of the Subsidiaries of the Borrower to the
         Borrower or any other Subsidiary; provided that such Capital Stock is
         pledged to the Collateral Agent pursuant to a Pledge and Security
         Agreement, (b) any Capital Stock of the Borrower issued or sold in
         connection with any Permitted Acquisition and constituting all or a
         portion of the applicable purchase price, or (c) any rights, options or
         Capital Stock issued pursuant to employee, director or affiliated
         practitioner or practice stock, incentive, stock option or stock
         purchase plans or programs.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended from time to time, and any successor statute, and all
         rules and regulations from time to time promulgated thereunder.

                  "ERISA Affiliate" means any Person (including any trade or
         business, whether or not incorporated) that would be deemed to be under
         "common control" with, or a member of the same "controlled group" as,
         any Credit Party or any of its Subsidiaries, within the meaning of
         Sections 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA.

                  "ERISA Event" means: (a) a Reportable Event with respect to a
         Plan or a Multiemployer Plan, (b) a complete or partial withdrawal by
         any Credit Party, any of its Subsidiaries or any ERISA Affiliate from a
         Multiemployer Plan, or the receipt by any Credit Party, any of its
         Subsidiaries or any ERISA Affiliate of notice from a Multiemployer Plan
         that it is in reorganization or insolvency pursuant to Section 4241 or
         4245 of ERISA or that it intends to terminate or has terminated under
         Section 4041A of ERISA, (c) the distribution by any Credit Party, any
         of its Subsidiaries or any ERISA Affiliate under Section 4041 or 4041A
         of ERISA of a notice of intent to terminate any Plan or the taking of
         any action to terminate any Plan, (d) the commencement of proceedings
         by the PBGC under Section 4042 of ERISA for the termination of, or the
         appointment of a trustee to administer, any Plan, or the receipt by any
         Credit Party, any of its Subsidiaries or any ERISA Affiliate of a
         notice from any Multiemployer Plan that such action has been taken by
         the PBGC with respect to such Multiemployer Plan, (e) the institution
         of a proceeding by any fiduciary of any Multiemployer Plan against any
         Credit Party, any of its Subsidiaries or any ERISA Affiliate to enforce
         Section 515 of ERISA, which is not dismissed within thirty (30) days,
         (f) the imposition upon any Credit Party, any of its Subsidiaries or
         any ERISA Affiliate of any liability under Title IV of ERISA, other
         than for PBGC premiums due but not delinquent under Section 4007 of
         ERISA, or the imposition or threatened imposition of any Lien upon any
         assets of any Credit Party, any of its Subsidiaries or any ERISA
         Affiliate as a result of any alleged failure to comply with the Code or
         ERISA in respect of any Plan, (g) the engaging in or otherwise becoming
         liable for a nonexempt Prohibited Transaction by any Credit Party, any
         of its Subsidiaries or any ERISA Affiliate, (h) a violation of the
         applicable requirements of Section 404 or 405 of ERISA or the exclusive
         benefit rule under Section 401(a) of the Code by any fiduciary of any
         Plan for which any Credit Party, any of its Subsidiaries or any ERISA
         Affiliate may be directly or indirectly liable, (i) the adoption of an
         amendment to any Plan that, pursuant to Section 401(a)(29) of the Code
         or Section 307 of ERISA, would result in the loss of tax-exempt status
         of the trust of which such Plan is a part if any Credit Party, any of
         its Subsidiaries or any ERISA Affiliate fails to timely provide
         security to such

                                       10
<PAGE>

         Plan in accordance with the provisions of such sections or (j) the
         withdrawal of any Credit Party, any of its Subsidiaries or any ERISA
         Affiliate from a Multiple Employer Plan during a play year in which it
         was a substantial employer (as such term is defined in Section
         4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan.

                  "Eurodollar Loan" means a Loan (or any portion thereof)
         bearing interest based at a rate determined by reference to the
         Adjusted Eurodollar Rate.

                  "Eurodollar Rate" means, for any Interest Period with respect
         to any Eurodollar Loan:

                           (a) the rate per annum equal to the rate determined
                  by the Administrative Agent to be the offered rate that
                  appears on the page of the Telerate screen (or any successor
                  thereto) that displays an average British Bankers Association
                  Interest Settlement Rate for deposits in Dollars (for delivery
                  on the first day of such Interest Period) with a term
                  equivalent to such Interest Period, determined as of
                  approximately 11:00 a.m. (London time) two Business Days prior
                  to the first day of such Interest Period, or

                           (b) if the rate referenced in the preceding clause
                  (b) does not appear on such page or service or such page or
                  service shall not be available, the rate per annum equal to
                  the rate determined by the Administrative Agent to be the
                  offered rate on such other page or other service that displays
                  an average British Bankers Association Interest Settlement
                  Rate for deposits in Dollars (for delivery on the first day of
                  such Interest Period) with a term equivalent to such Interest
                  Period, determined as of approximately 11:00 a.m. (London
                  time) two Business Days prior to the first day of such
                  Interest Period, or

                           (c) if the rates referenced in the preceding clauses
                  (a) and (b) are not available, the rate per annum reasonably
                  determined by the Administrative Agent as the rate of interest
                  at which deposits in Dollars for delivery on the first day of
                  such Interest Period in same day funds in the approximate
                  amount of the Eurodollar Loan being made, continued or
                  converted by Bank of America and with a term equivalent to
                  such Interest Period would be offered by Bank of America's
                  London Branch to major banks in the London interbank
                  eurodollar market at their request at approximately 4:00 p.m.
                  (London time) two Business Days prior to the first day of such
                  Interest Period.

                  "Event of Default" has the meaning set forth in Section 9.1.

                  "Exchange Act" means the Securities Exchange Act of 1934, and
         the rules and regulations promulgated thereunder, as amended, modified,
         succeeded or replaced from time to time.

                  "Existing Credit Agreement" means that certain Credit
         Agreement, dated as of October 8, 1998, among the Borrower, certain
         Subsidiaries of the Borrower party thereto, as borrowers, the lenders
         party thereto, Wachovia Bank, National Association (formerly known as
         First Union National Bank), as administrative agent and collateral
         agent, Bank of America, as documentation agent, and Citibank, N.A., as
         syndication agent, as such agreement has been amended or modified on or
         prior to the Closing Date.

                  "Existing Letters of Credit" means the letters of credit set
         forth on Schedule 1.1(b).

                  "Fair Market Value" means, with respect to any Capital Stock
         of any Credit Party or any of its Subsidiaries given in connection with
         an Acquisition, the value given to such Capital Stock for purposes of
         such Acquisition by the parties thereto, as determined in good faith
         pursuant to the relevant acquisition agreement or otherwise in
         connection with such Acquisition.

                  "Federal Funds Rate" means, for any day, the rate per annum
         equal to the weighted average (rounded upward, if necessary, to a whole
         multiple of 1/100 of 1%) of the rates on overnight Federal funds

                                       11
<PAGE>

         transactions with members of the Federal Reserve System arranged by
         Federal funds brokers on such day, as published by the Federal Reserve
         Bank on the Business Day next succeeding such day; provided that (a) if
         such day is not a Business Day, the Federal Funds Rate for such day
         shall be such rate on such transactions on the next preceding Business
         Day as so published on the next succeeding Business Day, and (b) if no
         such rate is so published on such next succeeding Business Day, the
         Federal Funds Rate for such day shall be the average rate (rounded
         upward, if necessary, to a whole multiple of 1/100 of 1%) charged to
         Bank of America on such day on such transactions as determined by the
         Administrative Agent.

                  "Fee Letter" means that certain letter agreement, dated as of
         November 13, 2002, among the Borrower, Bank of America and the
         Arranger, as amended, modified, supplemented or restated from time to
         time.

                  "Financial Officer" means, with respect to the Borrower, the
         chief financial officer, vice president-finance, principal accounting
         officer or treasurer of the Borrower.

                  "Fixed Charge Coverage Ratio" means, as of the last day of any
         fiscal quarter, the ratio of (a) Consolidated Cash Flow for the period
         of four consecutive fiscal quarters ending on such date to (b)
         Consolidated Fixed Charges for the period of four consecutive fiscal
         quarters ending on such date.

                  "Foreign Subsidiary" means each direct and indirect Subsidiary
         of the Borrower that is organized under the laws of any nation, state
         or jurisdiction other than the United States of America or any state
         thereof or the District of Columbia.

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Funded Debt" means, with respect to any Person, (a) all
         Indebtedness for borrowed money of such Person, (b) all purchase money
         Indebtedness of such Person, (c) the principal portion of all
         obligations of such Person under capital leases, (d) all Contingent
         Obligations of the Credit Parties and their Subsidiaries as to Funded
         Debt of another Person and (e) all Incentive Program Indebtedness of
         such Person. Notwithstanding the foregoing, the Loans shall at all
         times constitute Funded Debt of the Borrower.

                  "GAAP" means generally accepted accounting principles in the
         United States set forth in the opinions and pronouncements of the
         Accounting Principles Board and the American Institute of Certified
         Public Accountants and statements and pronouncements of the Financial
         Accounting Standards Board (or agencies with similar functions of
         comparable stature and authority within the U.S. accounting profession)
         or that are promulgated by any Governmental Authority having
         appropriate jurisdiction.

                  "Government Acts" has the meaning set forth in Section 2.2(l).

                  "Governmental Authority" means any domestic or foreign nation
         or government, any state or other political subdivision thereof and any
         central bank thereof, any municipal, local, city or county government,
         and any entity exercising executive, legislative, judicial, regulatory
         or administrative functions of or pertaining to government (including,
         without limitation, any state dental board and any federal or state
         securities board or commission) and any corporation or other entity
         owned or controlled, through stock or capital ownership or otherwise,
         by any of the foregoing.

                  "Granting Lender" has the meaning specified in Section
         11.3(g).

                  "Guarantor" means each of the direct or indirect Domestic
         Subsidiaries of the Borrower (other than De Minimis Subsidiaries) and
         each other Person who becomes a Guarantor hereunder, together with
         their successors and permitted assigns.

                                       12
<PAGE>

                  "Guaranty" means the guaranty of the Credit Party Obligations
         provided by the Guarantors pursuant to Section 4.

                  "Hazardous Substances" means any substances or materials (a)
         that are or become defined as hazardous wastes, hazardous substances,
         pollutants, contaminants or toxic substances under any Environmental
         Law, (b) that are defined by any Environmental Law as toxic, explosive,
         corrosive, ignitable, infectious, radioactive, mutagenic or otherwise
         hazardous, (c) the presence of which require investigation or response
         under any Environmental Law, (d) that constitute a nuisance, trespass
         or health or safety hazard to Persons or neighboring properties, (e)
         that consist of underground or aboveground storage tanks, whether
         empty, filled or partially filled with any substance, or (f) that
         contain, without limitation, asbestos, polychlorinated biphenyls, urea
         formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived
         substances or wastes, crude oil, nuclear fuel, natural gas or synthetic
         gas.

                  "Hedging Agreements" means, collectively, interest rate
         protection agreements, foreign currency exchange agreements, commodity
         purchase or option agreements or other interest or exchange rate or
         commodity price hedging agreements, in each case, entered into or
         purchased by a Credit Party.

                  "Incentive Program Indebtedness" has the meaning set forth in
         Section 8.2(j).

                  "Indebtedness" means, with respect to any Person (without
         duplication), (a) all indebtedness and obligations of such Person for
         borrowed money or in respect of loans or advances of any kind, (b) all
         obligations of such Person evidenced by notes, bonds, debentures or
         similar instruments, (c) all reimbursement obligations of such Person
         with respect to surety bonds, letters of credit and bankers'
         acceptances (in each case, whether or not drawn or matured and in the
         stated amount thereof), (d) all obligations of such Person to pay the
         deferred purchase price of property or services, (e) all indebtedness
         created or arising under any conditional sale or other title retention
         agreement with respect to property acquired by such Person, (f) all
         obligations of such Person as lessee under leases that are or are
         required to be, in accordance with GAAP, recorded as capital leases, to
         the extent such obligations are required to be so recorded, (g) all
         Disqualified Capital Stock issued by such Person, with the amount of
         Indebtedness represented by such Disqualified Capital Stock being equal
         to the greater of its voluntary or involuntary liquidation preference
         and its maximum fixed repurchase price, but excluding accrued
         dividends, if any (for purposes hereof, the "maximum fixed repurchase
         price" of any Disqualified Capital Stock that does not have a fixed
         repurchase price shall be calculated in accordance with the terms of
         such Disqualified Capital Stock as if such Disqualified Capital Stock
         were purchased on any date on which Indebtedness shall be required to
         be determined pursuant to this Credit Agreement, and if such price is
         based upon, or measured by, the fair market value of such Disqualified
         Capital Stock, such fair market value shall be determined reasonably
         and in good faith by the board of directors or other governing body of
         the issuer of such Disqualified Capital Stock), (h) the net termination
         obligations of such Person under any Hedging Agreements, calculated as
         of any date as if such agreement or arrangement were terminated as of
         such date, (i) all Contingent Obligations of such Person, (j) all
         obligations and liabilities of such Person incurred in connection with
         any transaction or series of transactions providing for the financing
         of assets through one or more securitizations or in connection with, or
         pursuant to, any synthetic lease or similar off-balance sheet
         financing, (k) the aggregate amount of uncollected accounts receivable
         of such Person subject at the time of determination to a sale of
         receivables (or similar transaction) to the extent such transaction is
         effected with recourse to such Person (whether or not such transaction
         would be reflected on the balance sheet of such Person in accordance
         with GAAP), (l) all Incentive Program Indebtedness of such Person and
         (m) all indebtedness referred to in clauses (a) through (l) above
         secured by any Lien on any property or asset owned or held by such
         Person regardless of whether the indebtedness secured thereby shall
         have been assumed by such Person or is nonrecourse to the credit of
         such Person.

                  "Indemnified Liabilities" has the meaning set forth in Section
         11.5(b).

                  "Indemnitees" has the meaning set forth in Section 11.5(b).

                                       13
<PAGE>

                  "Intercompany Notes" means the intercompany notes evidencing
         Indebtedness permitted pursuant to Section 8.2(d).

                  "Interest Payment Date" means, (a) as to any Eurodollar Loan,
         the last day of each Interest Period applicable to such Loan and the
         Maturity Date; provided, however, that if any Interest Period for a
         Eurodollar Loan exceeds three months, the respective dates that fall
         every three months after the beginning of such Interest Period shall
         also be Interest Payment Dates, (b) as to any Base Rate Loan, the last
         Business Day of each March, June, September and December and the
         Maturity Date, and (c) as to payment of the Alternative Rate by the
         Borrower to the Alternative Rate Lender with respect to a Loan or any
         portion thereof, the Interest Payment Date applicable to such Loan (or
         such other date as agreed to between the Alternative Rate Lender and
         the Borrower) and the Maturity Date.

                  "Interest Period" means, as to each Eurodollar Loan, the
         period commencing on the date such Eurodollar Loan is disbursed or
         converted to or continued as a Eurodollar Loan and ending on the date
         one, two, three or six months thereafter, as selected by the Borrower
         in its Notice of Borrowing or Notice of Continuation/Conversion;
         provided that:

                           (a) any Interest Period that would otherwise end on a
                  day that is not a Business Day shall be extended to the next
                  succeeding Business Day unless such Business Day falls in
                  another calendar month, in which case such Interest Period
                  shall end on the next preceding Business Day;

                           (b) any Interest Period that begins on the last
                  Business Day of a calendar month (or on a day for which there
                  is no numerically corresponding day in the calendar month at
                  the end of such Interest Period) shall end on the last
                  Business Day of the calendar month at the end of such Interest
                  Period; and

                           (c) no Interest Period shall extend beyond the
                  Maturity Date.

                  "Investments" has the meaning set forth in Section 8.5.

                  "Joinder Agreement" means a joinder agreement substantially in
         the form of Exhibit 7.10.

                  "Laws" means, collectively, all international, foreign,
         federal, state and local statutes, treaties, rules, guidelines,
         regulations, ordinances, codes and administrative or judicial
         precedents or authorities, including the interpretation or
         administration thereof by any Governmental Authority charged with the
         enforcement, interpretation or administration thereof, and all
         applicable administrative orders, directed duties, requests, licenses,
         authorizations and permits of, and agreements with, any Governmental
         Authority, in each case whether or not having the force of law.

                  "L/C Credit Extension" means, with respect to any Letter of
         Credit, the issuance thereof, the extension of the expiry date thereof,
         the renewal or increase of the amount thereof or any extension of
         credit resulting from a drawing thereunder that has not been
         reimbursed.

                  "L/C Fees" has the meaning set forth in Section 3.4(b).

                  "L/C Fronting Fee" has the meaning set forth in Section
         2.2(i).

                  "L/C Issuer" means Bank of America in its capacity as issuer
         of Letters of Credit hereunder, or any successor issuer of Letters of
         Credit hereunder.

                  "L/C Obligations" means, as of any date of determination, the
         aggregate undrawn amount of all outstanding Letters of Credit plus the
         aggregate of all unreimbursed drawings under any Letter of Credit.

                                       14
<PAGE>

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, and any Eligible Assignee which may become
         a Lender by way of assignment in accordance with the terms hereof,
         together with their successors and permitted assigns.

                  "Lending Office" means, as to any Lender, the office or
         offices of such Lender described as such in such Lender's
         Administrative Questionnaire, or such other office or offices as a
         Lender may from time to time notify the Borrower and the Administrative
         Agent.

                  "Letter of Credit" means any letter of credit issued hereunder
         and shall include the Existing Letters of Credit.

                  "Letter of Credit Application" means an application and
         agreement for the issuance or amendment of a Letter of Credit in the
         form from time to time in use by the L/C Issuer.

                  "Letter of Credit Expiration Date" means the day that is seven
         days prior to the Maturity Date then in effect (or, if such day is not
         a Business Day, the next preceding Business Day).

                  "Letter of Credit Sublimit" means an amount equal to TEN
         MILLION DOLLARS ($10,000,000). The Letter of Credit Sublimit is part
         of, and not in addition to, the Revolving Committed Amount.

                  "Leverage Ratio" means, as of any date, the ratio of (a)
         Adjusted Consolidated Indebtedness as of such date to (b) Consolidated
         Cash Flow as of the last day of the most recent fiscal quarter for the
         period of the prior four consecutive fiscal quarters ending on such
         day.

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         security interest, lien (statutory or otherwise), preference, priority,
         charge or other encumbrance of any nature, whether voluntary or
         involuntary, including, without limitation, the interest of any vendor
         or lessor under any conditional sale agreement, title retention
         agreement, capital lease or any other lease or arrangement having
         substantially the same effect as any of the foregoing.

                  "Licenses" means any and all licenses (including provisional
         licenses), certificates of need, accreditations, permits, franchises,
         rights to conduct business, approvals (by a Governmental Authority or
         otherwise), consents, qualifications, operating authority and any other
         authorizations.

                  "Limitation" means a revocation, suspension, termination,
         impairment, probation, limitation, non-renewal, forfeiture, declaration
         of ineligibility, loss of status as a participating provider in a Third
         Party Payor Arrangement, and the loss of any other rights.

                  "Litigating ORAL Affiliated Practices" means those Affiliated
         Practices set forth on Schedule 1.1(c) hereto.

                  "Loan" or "Loans" means the Revolving Loans and the Term Loans
         (or any portion of any Loan), individually or collectively, as
         appropriate.

                  "Management Letter" has the meaning set forth in Section
         7.2(c).

                  "Mandatory Borrowing" has the meaning set forth in Section
         2.2(e).

                  "Margin Stock" has the meaning ascribed to such term in
         Regulation U.

                  "Material Adverse Change" means a material adverse change in
         the condition (financial or otherwise), operations, business,
         performance, properties or assets of the Credit Parties and their
         Subsidiaries, taken as a whole.

                                       15
<PAGE>

                  "Material Adverse Effect" means a material adverse effect upon
         (a) the business, assets, liabilities (actual or contingent),
         operations or condition (financial or otherwise) of the Credit Parties
         and their Subsidiaries, taken as a whole, (b) the ability of the Credit
         Parties and their Subsidiaries, taken as a whole, to perform their
         obligations under this Credit Agreement or any of the other Credit
         Documents or (c) the legality, validity or enforceability of this
         Credit Agreement or any of the other Credit Documents or the rights and
         remedies of the Agents and the Lenders hereunder and thereunder.

                  "Material Contract" has the meaning set forth in Section 6.18.

                  "Maturity Date" means January 2, 2006.

                  "Medicaid" means that government-sponsored entitlement program
         under Title XIX of the Social Security Act that provides medical
         assistance based on specific eligibility criteria.

                  "Medicare" means that government-sponsored entitlement program
         under Title XVIII of the Social Security Act that provides for a health
         insurance system for eligible elderly and disabled individuals.

                  "Multiemployer Plan" means any "multiemployer plan" within the
         meaning of Section 4001(a)(3) of ERISA to which any Credit Party, any
         of its Subsidiaries or any ERISA Affiliate makes, is making or is
         obligated to make contributions or has made or been obligated to make
         contributions.

                  "Multiple Employer Plan" means a Single Employer Plan to which
         any Credit Party, any of its Subsidiaries or any ERISA Affiliate and at
         least one employer other than any Credit Party, any of its Subsidiaries
         or any ERISA Affiliate are contributing sponsors.

                  "Net Cash Proceeds" means, in the case of any Asset
         Disposition, Equity Issuance or Debt Issuance, the aggregate cash
         payments received by the Credit Parties and their Subsidiaries less
         reasonable and customary fees and expenses (including attorneys' fees,
         accountants' fees, investment banking fees, underwriting discounts and
         commissions) incurred by the Credit Parties and their Subsidiaries in
         connection therewith.

                  "Note" or "Notes" means the Revolving Notes and the Term
         Notes, individually or collectively, as appropriate.

                  "Notice of Borrowing" means a request by the Borrower for a
         Revolving Loan in the form of Exhibit 2.1(b).

                  "Notice of Continuation/Conversion" means a request by the
         Borrower to continue an existing Eurodollar Loan to a new Interest
         Period or to convert a Eurodollar Loan to a Base Rate Loan or a Base
         Rate Loan to a Eurodollar Loan, in the form of Exhibit 2.4.

                  "Organization Documents" means (a) with respect to any
         corporation, the certificate or articles of incorporation and the
         bylaws (or equivalent or comparable constitutive documents with respect
         to any non-U.S. jurisdiction); (b) with respect to any limited
         liability company, the certificate or articles of formation or
         organization and operating agreement; and (c) with respect to any
         partnership, joint venture, trust or other form of business entity, the
         partnership, joint venture or other applicable agreement of formation
         or organization and any agreement, instrument, filing or notice with
         respect thereto filed in connection with its formation or organization
         with the applicable Governmental Authority in the jurisdiction of its
         formation or organization and, if applicable, any certificate or
         articles of formation or organization of such entity.

                  "Original Rate" has the meaning set forth in Section 3.1(c).

                  "Other Taxes" has the meaning set forth in Section 3.13(b).

                                       16
<PAGE>

                  "PBGC" means the Pension Benefit Guaranty Corporation and any
         successor thereto.

                  "Participant" has the meaning set forth in Section 11.3(d).

                  "Participation Interest" means (a) the purchase by a Revolving
         Lender of a participation in Letters of Credit or L/C Obligations as
         provided in Section 2.2 or (b) the purchase by a Lender of a
         participation in any Loan as provided in Section 3.8.

                  "Patient Contracts" means patient contracts between the
         Affiliated Practices and their respective patients (or parent, guardian
         or other responsible party) for the provision of orthodontic and
         pediatric dental services in an Affiliated Practice center or office
         that is subject to a Service Agreement.

                  "Permitted Acquisition" means (a) any Acquisition with respect
         to which all of the following conditions are satisfied: (i) each
         business or assets thereof acquired shall be within (or any assets
         acquired shall be used within) the permitted lines of business
         described in Section 8.8, (ii) any Capital Stock given as consideration
         in connection therewith shall be Capital Stock of the Borrower, (iii)
         the Board of Directors or equivalent governing body of the Person whose
         Capital Stock or business is acquired shall have approved such
         Acquisition, (iv) all of the conditions and requirements of Sections
         7.9 and 7.10 applicable to such Acquisition are satisfied, and (v)
         after giving effect to such Acquisition, the Credit Parties and their
         Subsidiaries are in compliance on a Pro Forma Basis with the financial
         covenants set forth Section 8.14; or (b) any other Acquisition to which
         the Required Lenders shall have given their prior written consent
         (which consent may be in their sole discretion and may be given subject
         to such additional terms and conditions as the Required Lenders shall
         establish) and with respect to which all of the conditions and
         requirements set forth in Sections 7.9 and 7.10, and in or pursuant to
         any such consent, have been completed to the satisfaction of, or waived
         in writing by, the Required Lenders.

                  "Permitted Liens" has the meaning set forth in Section 8.3.

                  "Person" means any individual, partnership, joint venture,
         firm, corporation, limited liability company, association, trust or
         other enterprise (whether or not incorporated), or any Governmental
         Authority.

                  "Plan" means any "employee benefit plan" (within the meaning
         of Section 3(3) of ERISA) which is covered by ERISA and with respect to
         which any Credit Party, any of its Subsidiaries or any ERISA Affiliate
         is (or, if such plan were terminated at such time, would under Section
         4069 of ERISA be deemed to be) an "employer" within the meaning of
         Section 3(5) of ERISA.

                  "Pledge and Security Agreement" means any pledge and security
         agreement executed and delivered by a Credit Party in favor of the
         Collateral Agent, for the benefit of the Lenders, as amended, modified,
         restated or supplemented from time to time.

                  "Prime Rate" has the meaning set forth in the definition of
         Base Rate in this Section 1.1.

                  "Principal Amortization Payment" means a principal payment on
         the Term Loans as required by Section 2.3(c).

                  "Privacy Standards" has the meaning set forth in Section 7.4.

                  "Pro Forma Basis" means, for purposes of determining
         compliance with the financial covenants set forth in Section 8.14 as of
         any date of determination, that (a) Consolidated Indebtedness and
         Consolidated Funded Debt shall be determined as of such date of
         determination after giving effect to any Borrowing on such date and (b)
         Consolidated Net Income, Consolidated Cash Flow, Consolidated Fixed
         Charges, Consolidated Interest Expense, Consolidated Lease Expense,
         Consolidated Net Worth and Total Patient Contract Balances shall be as
         set forth in the most recent Compliance Certificate delivered pursuant
         to Section 7.2(a).

                                       17
<PAGE>

                  "Pro Rata Share" means, with respect to each Lender at any
         time, a fraction (expressed as a percentage, carried out to the ninth
         decimal place), (a) with respect to Revolving Loans (and Letters of
         Credit) the numerator of which is the amount of the commitment of such
         Lender at such time to make Revolving Loans to the Borrower pursuant to
         Section 2.1 and the denominator of which is the amount of the Revolving
         Committed Amount at such time; provided that if the Commitment has been
         terminated pursuant to Section 9.2 or otherwise, then such Pro Rata
         Share of each such Lender shall be determined based on such Lender's
         percentage ownership of the principal amount of outstanding Revolving
         Loans plus its Participation Interest in the outstanding principal
         amount of L/C Obligations and (b) with respect to Term Loans, the
         outstanding principal amount of Term Loans made by such Lender. The
         initial Pro Rata Share of each Lender as to Revolving Loans and Term
         Loans is set forth opposite the name of such Lender on Schedule 1.1(a)
         or in the Assignment and Assumption pursuant to which such Lender
         becomes a party hereto, as applicable.

                  "Prohibited Transaction" means any transaction described in
         (a) Section 406 of ERISA that is not exempt by reason of Section 408 of
         ERISA or by reason of a Department of Labor prohibited transaction
         individual or class exemption or (b) Section 4975(c) of the Code that
         is not exempt by reason of Section 4975(c)(2) or 4975(d) of the Code.

                  "Projections" has the meaning set forth in Section 6.11(b).

                  "Property" means any right, title or interest in or to any
         property or asset of any kind whatsoever, whether real, personal or
         mixed and whether tangible or intangible.

                  "Register" has the meaning set forth in Section 11.3(c).

                  "Regulations T, U and X" means Regulations T, U and X,
         respectively, of the Federal Reserve Board, and any successor
         regulations.

                  "Reimbursable Investment" means any advance made by a Credit
         Party or any of its Subsidiaries with respect to operating expenses or
         fixed assets of or for an Affiliated Practice that is reimbursable over
         time by the Affiliated Practice to a Credit Party or a Subsidiary
         thereof, so long as such expenses or fixed assets are reflected in the
         Borrower's consolidated financial statements (other than solely on a
         footnote basis).

                  "Reimbursement Approvals" means, with respect to all Third
         Party Payor Arrangements, any and all certifications, provider numbers,
         provider agreements, participation agreements, accreditations and any
         other similar agreements with or approvals by Governmental Authorities
         or other Persons.

                  "Reportable Event" means (a) any "reportable event" within the
         meaning of Section 4043(c) of ERISA for which the notice under Section
         4043(a) of ERISA has not been waived by the PBGC (including any failure
         to meet the minimum funding standard of, or timely make any required
         installment under, Section 412 of the Code or Section 302 of ERISA,
         regardless of the issuance of any waivers in accordance with Section
         412(d) of the Code), (b) any such "reportable event" subject to advance
         notice to the PBGC under Section 4043(b)(3) of ERISA, (c) any
         application for a funding waiver or an extension of any amortization
         period pursuant to Section 412 of the Code and (d) a cessation of
         operations described in Section 4062(e) of ERISA.

                  "Request for Alternative Rate" means, with respect to an
         Alternative Rate Agreement, a written request, substantially in the
         form of Exhibit 2.6, duly completed and signed by a Responsible Officer
         and delivered to the Alternative Rate Lender.

                  "Required Lenders" means Lenders whose aggregate Credit
         Exposure (as hereinafter defined) constitutes more than 50% of the
         Credit Exposure of all Lenders at such time; provided, however, that
         (a) Required Lenders shall consist of at least three (3) Lenders and
         (b) if any Lender shall be a Defaulting

                                       18
<PAGE>

         Lender at such time then there shall be excluded from the determination
         of Required Lenders the aggregate principal amount of Credit Exposure
         of such Lender at such time. For purposes of the preceding sentence,
         the term "Credit Exposure" as applied to each Lender shall mean (i) at
         any time prior to the termination of the Commitments, the sum of (A)
         the Pro Rata Share of such Lender of the Revolving Committed Amount
         multiplied by the Revolving Committed Amount plus (B) the outstanding
         principal amount of Term Loans made by such Lender and (ii) at any time
         after the termination of the Commitments, the sum of (i) the principal
         balance of the outstanding Loans of such Lender plus (ii) such Lender's
         Participation Interests in the face amount of the outstanding Letters
         of Credit.

                  "Requirement of Law" means, with respect to any Person, the
         Organizational Documents of such Person and any Law applicable to or
         binding upon such Person or any of its property or to which such Person
         or any of its property is subject or otherwise pertaining to any or all
         of the transactions contemplated by this Credit Agreement and the other
         Credit Documents.

                  "Responsible Officer" means, with respect to any Credit Party
         or any of its Subsidiaries, the president, the chief executive officer,
         the chief operating officer, the co-chief executive officer, the chief
         financial officer, any executive officer, vice president-finance,
         principal accounting officer or treasurer of such Credit Party or such
         Subsidiary, and any other officer or similar official thereof
         responsible for the administration of the obligations of such Credit
         Party or such Subsidiary in respect of this Credit Agreement and the
         other Credit Documents.

                  "Revolving Committed Amount" means ONE HUNDRED MILLION DOLLARS
         ($100,000,000) or such lesser amount as it may be reduced to from time
         to time in accordance with Section 2.1(d) and Section 3.3(c).

                  "Revolving Lender" means any Lender whose Pro Rata Share of
         the Revolving Committed Amount is greater than zero, together with its
         successors and permitted assigns.

                  "Revolving Loans" has the meaning set forth in Section 2.1(a).

                  "Revolving Notes" means the promissory notes of the Borrower
         in favor of each Revolving Lender evidencing the Revolving Loans
         provided pursuant to Section 2.1, individually or collectively, as
         appropriate, as such promissory notes may be amended, modified,
         supplemented, extended, renewed or replaced from time to time and as
         evidenced in the form of Exhibit 2.1(e).

                  "Securities Act" means the Securities Act of 1933, as amended,
         and the rules and regulations promulgated thereunder.

                  "Seller Indebtedness" has the meaning set forth in Section
         8.2(f).

                  "Service Agreement" means any agreement or arrangement between
         any Credit Party or any of its Subsidiaries and one or more Affiliated
         Practices pursuant to which such Credit Party or such Subsidiary agrees
         to provide or arrange for comprehensive management, administrative and
         other non-medical support services to such Affiliated Practice or
         Practices in exchange for payment to such Credit Party or such
         Subsidiary of a service, management or similar fee.

                  "Service Agreement Buy-Out" means any payment made by an
         Affiliated Practice to a Credit Party in exchange for the termination
         of, or the complete or partial release from its obligations under, its
         Service Agreement with such Credit Party.

                  "Single Employer Plan" means any Plan which is covered by
         Title IV of ERISA, but which is not a Multiemployer Plan or Multiple
         Employer Plan.

                                       19
<PAGE>

                  "Solvent" means, with respect to any Person as of a particular
         date, that on such date (a) such Person is able to pay its debts and
         other liabilities, Contingent Obligations and other commitments as they
         mature in the normal course of business, (b) such Person does not
         intend to, and does not believe that it will, incur debts or
         liabilities beyond such Person's ability to pay as such debts and
         liabilities mature in their ordinary course, (c) such Person is not
         engaged in a business or a transaction, and is not about to engage in a
         business or a transaction, for which such Person's assets would
         constitute unreasonably small capital, (d) the fair value of the assets
         of such Person is greater than the total amount of liabilities,
         including, without limitation, Contingent Obligations, of such Person
         and (e) the value of the assets of such Person at fair valuation or at
         present fair saleable valuation is not less than the amount that will
         be required to pay the probable liability of such Person on its debts
         as they become absolute and matured.

                  "SPC" has the meaning set forth in Section 11.3(g).

                  "Spot Rate" means, for any foreign currency, the rate quoted
         by Bank of America, in good faith, as the spot rate for the purchase by
         Bank of America of such currency with Dollars through its principal
         foreign exchange trading office at approximately 11:00 a.m. on the date
         two Business Days prior to the date as of which the foreign exchange
         computation is made.

                  "Subsidiary" means, as to any Person, (a) any corporation more
         than 50% of whose stock of any class or classes having by the terms
         thereof ordinary voting power to elect a majority of the directors of
         such corporation (irrespective of whether or not at the time, any class
         or classes of such corporation shall have or might have voting power by
         reason of the happening of any contingency) is at the time owned by
         such Person directly or indirectly through Subsidiaries, and (b) any
         partnership, association, joint venture or other entity in which such
         person directly or indirectly through Subsidiaries has more than a 50%
         equity interest at any time. Any reference to Subsidiary herein, unless
         otherwise identified, shall mean a Subsidiary, direct or indirect, of
         the Borrower.

                  "Target" has the meaning set forth in Section 7.9(b).

                  "Taxes" has the meaning set forth in Section 3.13(a).

                  "Term Loan Lender" means any Lender whose Pro Rata Share of
         the Term Loan Committed Amount is greater than zero, together with its
         successors and permitted assigns.

                  "Term Loans" has the meaning set forth in Section 2.3(a).

                  "Term Loan Committed Amount" means TWENTY-FIVE MILLION DOLLARS
         ($25,000,000).

                  "Term Notes" means the promissory notes of the Borrower in
         favor of each Term Loan Lender evidencing the Term Loans provided
         pursuant to Section 2.3, individually or collectively, as appropriate,
         as such promissory notes may be amended, modified, restated,
         supplemented, extended, renewed or replaced from time to time and as
         evidenced in the form of Exhibit 2.3(d).

                  "Third Party Payor Arrangements" means any and all
         arrangements with Medicare, Medicaid, TRICARE/CHAMPUS and any other
         Governmental Authority or quasi-public agency, Blue Cross, Blue Shield,
         any managed care plans and organizations including, without limitation,
         health maintenance organizations and preferred provider organizations,
         private commercial insurance companies and any similar third party
         arrangements, plans or programs for payment or reimbursement in
         connection with health care services, products or supplies.

                  "Total Patient Contract Balances" means, as of the last day of
         any fiscal quarter, without duplication, the aggregate balance as of
         such date of uncollected cash due or to become due (a) under all
         Patient Contracts for orthodontic and dental services performed and to
         be performed by the Affiliated

                                       20
<PAGE>

         Practices or (b) under all financing agreements or installment payment
         programs with respect to Patient Contracts between patients and the
         Borrower and its Subsidiaries, in each case net of a reasonable
         allowance for uncollectable amounts and patient prepayments.

                  "Type" means, with respect to any Loan, its character as a
         Base Rate Loan or a Eurodollar Loan.

                  "Unfunded Pension Liability" means, with respect to any Plan
         or Multiemployer Plan, the excess of its benefit liabilities under
         Section 4001(a)(16) of ERISA over the current value of its assets,
         determined in accordance with the applicable assumptions used for
         funding under Section 412 of the Code for the applicable plan year.

                  "Unused Revolving Commitment" means, for any date of
         determination, the amount by which (a) the aggregate Revolving
         Committed Amount on such date exceeds (b) the sum of the aggregate
         principal amount of outstanding Revolving Loans plus the aggregate
         principal amount of outstanding L/C Obligations on such date.

                  "Wholly Owned" means, with respect to any Subsidiary of the
         Borrower, that 100% of the outstanding Capital Stock of such Subsidiary
         is owned, directly or indirectly, by the Borrower.

         1.2 COMPUTATION OF TIME PERIODS AND OTHER DEFINITIONAL PROVISIONS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding." References in this Credit Agreement to "Articles", "Sections",
"Schedules" or "Exhibits" shall be to Articles, Sections, Schedules or Exhibits
of or to this Credit Agreement unless otherwise specifically provided.

         1.3 ACCOUNTING TERMS/CALCULATION OF FINANCIAL COVENANTS.

         Except as otherwise expressly provided herein, all accounting terms
used herein or incorporated herein by reference shall be interpreted, and all
financial statements and certificates and reports as to financial matters
required to be delivered to the Administrative Agent or the Lenders hereunder
shall be prepared, in accordance with GAAP applied on a consistent basis.
Notwithstanding anything to the contrary in this Credit Agreement, for purposes
of calculation of the financial covenants set forth in Section 8.14, all
accounting determinations and computations thereunder shall be made in
accordance with GAAP as in effect as of the date of this Credit Agreement
applied on a basis consistent with the application used in preparing the most
recent financial statements of the Credit Parties referred to in Section 5.1(d).
In the event that any changes in GAAP after such date are required to be applied
to the Credit Parties and would affect the computation of the financial
covenants contained in Section 8.14, such changes shall be followed only from
and after the date this Credit Agreement shall have been amended to take into
account any such changes.

         1.4 TIME.

         All references to time herein shall be references to Eastern Standard
Time or Eastern Daylight time, as the case may be, unless specified otherwise.

         1.5 ROUNDING OF FINANCIAL COVENANTS.

         Any financial ratios required to be maintained by the Borrower pursuant
to this Credit Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and rounding the result
up or down to the nearest number (with a rounding-up if there is no nearest
number).

                                       21
<PAGE>

         1.6 REFERENCES TO AGREEMENTS AND REQUIREMENT OF LAWS.

         Unless otherwise expressly provided herein: (a) references to
organization documents, agreements (including the Credit Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Credit Document and (b) references
to any Requirement of Law shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such
Requirement of Law.

                                    SECTION 2

                                 CREDIT FACILITY

         2.1 REVOLVING LOANS.

                  (a) Revolving Committed Amount. Subject to the terms and
         conditions set forth herein, each Revolving Lender severally agrees to
         make revolving loans (each a "Revolving Loan" and collectively the
         "Revolving Loans") in Dollars to the Borrower, at any time and from
         time to time, during the period from and including the Closing Date to
         but not including the Maturity Date (or such earlier date if the
         Revolving Committed Amount has been terminated as provided herein);
         provided, however, that after giving effect to any Borrowing (i) the
         sum of the aggregate principal amount of outstanding Revolving Loans
         plus the aggregate principal amount of outstanding L/C Obligations
         shall not exceed the Revolving Committed Amount and (ii) with respect
         to each individual Lender, the sum of the aggregate principal amount of
         outstanding Revolving Loans of such Lender plus the aggregate principal
         amount of outstanding L/C Obligations of such Lender shall not exceed
         such Lender's Pro Rata Share of the Revolving Committed Amount. Subject
         to the terms of this Credit Agreement (including Section 3.3), the
         Borrower may borrow, repay and reborrow Revolving Loans. Revolving
         Loans may be Base Rate Loans or Eurodollar Loans, as further provided
         herein.

                  (b) Method of Borrowing for Revolving Loans. By no later than
         11:00 a.m. (i) on the date of the requested Borrowing of Revolving
         Loans that will be Base Rate Loans and (ii) three Business Days prior
         to the date of the requested Borrowing of Revolving Loans that will be
         Eurodollar Loans, the Borrower shall telephone the Administrative Agent
         as well as submit a written Notice of Borrowing in the form of Exhibit
         2.1(b) to the Administrative Agent setting forth (A) the amount
         requested, (B) the date of the requested Borrowing, (C) the Type of
         Revolving Loan, (D) with respect to Revolving Loans that will be
         Eurodollar Loans, the Interest Period applicable thereto, and (E)
         certification that the Borrower has complied in all respects with
         Section 5.2. If the Borrower shall fail to specify (1) an Interest
         Period in the case of a Eurodollar Loan, then such Eurodollar Loan
         shall be deemed to have an Interest Period of one month or (2) the Type
         of Revolving Loan requested, then such Revolving Loan shall be deemed
         to be a Base Rate Loan. All Revolving Loans made on the Closing Date
         shall be Base Rate Loans. Thereafter, all or any portion of the
         Revolving Loans may be converted into Eurodollar Loans in accordance
         with the terms of Section 2.4.

                  (c) Funding of Revolving Loans. Upon receipt of a Notice of
         Borrowing, the Administrative Agent shall promptly inform the Revolving
         Lenders as to the terms thereof. Each Revolving Lender shall make its
         Pro Rata Share of the requested Revolving Loans available to the
         Administrative Agent in Dollars and in immediately available funds at
         the Administrative Agent's Office not later than 1:00 p.m. on the
         Business Day specified in the applicable Notice of Borrowing. Upon
         satisfaction of the conditions set forth in Section 5.2, the amount of
         the requested Revolving Loans will then be made available to the
         Borrower by the Administrative Agent either by (A) crediting the
         account of the Borrower on the books of the Administrative Agent with
         the amount of such funds or (B) wire transfer of such funds, in each
         case in accordance with instructions provided to (and reasonably
         acceptable to) the Administrative Agent by the Borrower.

                                       22
<PAGE>

                  (d) Reductions of Revolving Committed Amount. Upon at least
         three Business Days' notice, the Borrower shall have the right to
         permanently terminate or reduce the aggregate unused amount of the
         Revolving Committed Amount at any time or from time to time; provided
         that (i) each partial reduction shall be in an aggregate amount at
         least equal to $5,000,000 and in integral multiples of $1,000,000 above
         such amount and (ii) no reduction shall be made which would reduce the
         Revolving Committed Amount to an amount less than the sum of the
         aggregate principal amount of outstanding Revolving Loans plus the
         aggregate principal amount of outstanding L/C Obligations. Any
         reduction in (or termination of) the Revolving Committed Amount shall
         be permanent and may not be reinstated.

                  (e) Revolving Notes. The Revolving Loans made by each Lender
         shall be evidenced by a duly executed promissory note of the Borrower
         to such Lender in substantially the form of Exhibit 2.1(e).

         2.2 LETTER OF CREDIT SUBFACILITY.

                  (a) The Letter of Credit Commitment.

                           (i) Subject to the terms and conditions set forth
                  herein and other terms and conditions that the L/C Issuer may
                  reasonably require, (A) the L/C Issuer agrees, in reliance
                  upon the agreements of the Revolving Lenders set forth in this
                  Section 2.2, from time to time on any Business Day during the
                  period from the Closing Date until the Letter of Credit
                  Expiration Date, to issue standby Letters of Credit in Dollars
                  for the account of the Borrower or, subject to the terms of
                  Section 2.2(k), certain Subsidiaries of the Borrower, and to
                  amend Letters of Credit previously issued by it, in each case
                  in accordance with subsection (b) below and (B) the Revolving
                  Lenders severally agree to participate in Letters of Credit
                  issued for the account of the Borrower or, subject to the
                  terms of Section 2.2(k), certain Subsidiaries of the Borrower;
                  provided, however, that after giving effect to the issuance of
                  any Letter of Credit (1) the sum of the aggregate principal
                  amount of outstanding Revolving Loans plus the aggregate
                  principal amount of outstanding L/C Obligations shall not
                  exceed the Revolving Committed Amount, (2) with respect to
                  each individual Lender, the sum of the aggregate principal
                  amount of outstanding Revolving Loans of such Lender plus the
                  aggregate principal amount of outstanding L/C Obligations of
                  such Lender shall not exceed such Lender's Pro Rata Share of
                  the Revolving Committed Amount and (3) the aggregate principal
                  amount of outstanding L/C Obligations shall not at any time
                  exceed the Letter of Credit Sublimit. Within the foregoing
                  limits, and subject to the terms and conditions hereof, the
                  Borrower may, during the foregoing period, obtain Letters of
                  Credit to replace Letters of Credit that have expired or that
                  have been drawn upon and reimbursed.

                           (ii) The L/C Issuer shall not issue or amend any
                  Letter of Credit if:

                                    (A) any order, judgment or decree of any
                           Governmental Authority or arbitrator shall by its
                           terms purport to enjoin or restrain the L/C Issuer
                           from issuing such Letter of Credit, or any
                           Requirement of Law applicable to the L/C Issuer or
                           any request or directive (whether or not having the
                           force of law) from any Governmental Authority with
                           jurisdiction over the L/C Issuer shall prohibit, or
                           request that the L/C Issuer refrain from, the
                           issuance of letters of credit generally or such
                           Letter of Credit in particular or shall impose upon
                           the L/C Issuer with respect to such Letter of Credit
                           any restriction, reserve or capital requirement (for
                           which the L/C Issuer is not otherwise compensated
                           hereunder) not in effect on the Closing Date, or
                           shall impose upon the L/C Issuer any unreimbursed
                           loss, cost or expense which was not applicable on the
                           Closing Date and which the L/C Issuer in good faith
                           deems material to it;

                                    (B) the expiry date of such requested Letter
                           of Credit would occur more than twelve months after
                           the date of issuance, unless the Required Lenders
                           have approved such expiry date;

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<PAGE>

                                    (C) the expiry date of such requested Letter
                           of Credit would occur after the Letter of Credit
                           Expiration Date, unless all the Revolving Lenders
                           have approved such expiry date;

                                    (D) the issuance of such Letter of Credit
                           would violate one or more policies of the L/C Issuer;
                           or

                                    (E) such Letter of Credit is in an initial
                           amount less than $100,000 (unless otherwise agreed to
                           by the L/C Issuer), is to be used for a purpose other
                           than as permitted by Section 7.11, or is denominated
                           in a currency other than Dollars.

                           (iii) The L/C Issuer shall be under no obligation to
                  amend any Letter of Credit if (A) the L/C Issuer would have no
                  obligation at such time to issue such Letter of Credit in its
                  amended form under the terms hereof or (B) the beneficiary of
                  such Letter of Credit does not accept the proposed amendment
                  to such Letter of Credit.

                  (b) Procedures for Issuance and Amendment of Letters of
         Credit.

                           (i) Each Letter of Credit shall be issued or amended,
                  as the case may be, upon the request of the Borrower delivered
                  to the L/C Issuer (with a copy to the Administrative Agent) in
                  the form of a Letter of Credit Application, appropriately
                  completed and signed by a Responsible Officer of the Borrower.
                  The Letter of Credit Application must be received by the L/C
                  Issuer and the Administrative Agent not later than 11:00 a.m.
                  at least two Business Days (or such later date and time as the
                  L/C Issuer may agree in a particular instance in its sole
                  discretion) prior to the proposed issuance date or date of
                  amendment, as applicable. In the case of a request for an
                  initial issuance of a Letter of Credit, such Letter of Credit
                  Application shall specify in form and detail satisfactory to
                  the L/C Issuer: (A) the proposed issuance date of the
                  requested Letter of Credit (which shall be a Business Day),
                  (B) the amount thereof, (C) the expiry date thereof, (D) the
                  name and address of the beneficiary thereof, (E) the documents
                  to be presented by such beneficiary in case of any drawing
                  thereunder, (F) the full text of any certificate to be
                  presented by such beneficiary in case of any drawing
                  thereunder and (G) such other matters as the L/C Issuer may
                  require. In the case of a request for an amendment of any
                  outstanding Letter of Credit, such Letter of Credit
                  Application shall specify in form and detail satisfactory to
                  the L/C Issuer (1) the Letter of Credit to be amended, (2) the
                  proposed date of amendment thereof (which shall be a Business
                  Day), (3) the nature of the proposed amendment and (4) such
                  other matters as the L/C Issuer may require.

                           (ii) Promptly after receipt of any Letter of Credit
                  Application, the L/C Issuer will confirm with the
                  Administrative Agent (by telephone or in writing) that the
                  Administrative Agent has received a copy of such Letter of
                  Credit Application from the Borrower and, if not, the L/C
                  Issuer will provide the Administrative Agent with a copy
                  thereof. Upon receipt by the L/C Issuer of confirmation from
                  the Administrative Agent that the requested issuance or
                  amendment is permitted in accordance with the terms hereof,
                  then, subject to the terms and conditions hereof, the L/C
                  Issuer shall, on the requested date, issue a Letter of Credit
                  for the account of the Borrower or enter into the applicable
                  amendment, as the case may be, in each case in accordance with
                  the L/C Issuer's usual and customary business practices.

                           (iii) Promptly after its delivery of any Letter of
                  Credit or any amendment to a Letter of Credit to an advising
                  bank with respect thereto or to the beneficiary thereof, the
                  L/C Issuer will also deliver to the Borrower and the
                  Administrative Agent a true and complete copy of such Letter
                  of Credit or amendment.

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<PAGE>

                  (c) Participations.

                           (i) On the Closing Date, each Revolving Lender shall
                  be deemed to have purchased without recourse a risk
                  participation from the L/C Issuer in each Existing Letter of
                  Credit and the obligations arising thereunder and any
                  collateral relating thereto, in each case in an amount equal
                  to its Pro Rata Share of the obligations under such Existing
                  Letter of Credit, and shall absolutely, unconditionally and
                  irrevocably assume, as primary obligor and not as surety, and
                  be obligated to pay to the L/C Issuer therefor and discharge
                  when due, its Pro Rata Share of the obligations arising under
                  such Existing Letter of Credit.

                           (ii) Each Revolving Lender, upon issuance of a Letter
                  of Credit, shall be deemed to have purchased without recourse
                  a risk participation from the L/C Issuer in such Letter of
                  Credit and the obligations arising thereunder and any
                  collateral relating thereto, in each case in an amount equal
                  to its Pro Rata Share of the obligations under such Letter of
                  Credit, and shall absolutely, unconditionally and irrevocably
                  assume, as primary obligor and not as surety, and be obligated
                  to pay to the L/C Issuer therefor and discharge when due, its
                  Pro Rata Share of the obligations arising under such Letter of
                  Credit.

                  (d) Reimbursement.

                           (i) In the event of any drawing under any Letter of
                  Credit, the L/C Issuer will promptly notify the Borrower in
                  writing. The Borrower shall reimburse the L/C Issuer on the
                  day of drawing under any Letter of Credit either with the
                  proceeds of a Revolving Loan obtained hereunder or otherwise
                  in immediately available funds. If the Borrower shall fail to
                  reimburse the L/C Issuer as provided hereinabove, the
                  unreimbursed amount of such drawing shall bear interest at a
                  per annum rate equal to the Adjusted Base Rate plus two
                  percent (2%).

                           (ii) Subsequent to a drawing under any Letter of
                  Credit, unless the Borrower shall immediately notify the L/C
                  Issuer of its intent to otherwise reimburse the L/C Issuer,
                  the Borrower shall be deemed to have requested a Revolving
                  Loan at the Adjusted Base Rate in the amount of the drawing as
                  described herein, the proceeds of which will be used to
                  satisfy the reimbursement obligations. On any day on which the
                  Borrower shall be deemed to have requested a Revolving Loan
                  borrowing to reimburse a drawing under a Letter of Credit, the
                  Administrative Agent shall give notice to the Revolving
                  Lenders that a Revolving Loan has been deemed requested in
                  connection with a drawing under a Letter of Credit, in which
                  case a Revolving Loan borrowing comprised solely of Base Rate
                  Loans (each such borrowing, a "Mandatory Borrowing") shall be
                  immediately made from all Revolving Lenders (without giving
                  effect to any termination of the Commitments pursuant to
                  Section 9.2 or otherwise) pro rata based on each Revolving
                  Lender's respective Pro Rata Share and the proceeds thereof
                  shall be paid directly to the L/C Issuer for application to
                  the respective L/C Obligations. Each Revolving Lender hereby
                  irrevocably agrees to make such Revolving Loans immediately
                  upon any such request or deemed request on account of each
                  such Mandatory Borrowing in the amount and in the manner
                  specified in the preceding sentence and on the same such date
                  notwithstanding (A) the amount of Mandatory Borrowing may not
                  comply with the minimum amount for borrowings of Revolving
                  Loans otherwise required hereunder, (B) the failure of any
                  conditions specified in Section 5.2 to have been satisfied,
                  (C) the existence of a Default or an Event of Default, (D) the
                  failure of any such request or deemed request for Revolving
                  Loans to be made by the time otherwise required hereunder, (E)
                  the date of such Mandatory Borrowing, or (F) any reduction in
                  the Revolving Committed Amount or any termination of the
                  Commitments.

                           (iii) In the event that any Mandatory Borrowing
                  cannot for any reason be made on the date otherwise required
                  above (including, without limitation, as a result of the
                  commencement of a proceeding under the Bankruptcy Code with
                  respect to the Borrower or any other Credit Party), then each
                  Revolving Lender hereby agrees that it shall forthwith fund
                  (as of the date the

                                       25
<PAGE>

                  Mandatory Borrowing would otherwise have occurred, but
                  adjusted for any payments received from the Borrower on or
                  after such date and prior to such purchase) its Pro Rata Share
                  in the outstanding L/C Obligations; provided, that in the
                  event any Revolving Lender shall fail to fund its Pro Rata
                  Share on the day the Mandatory Borrowing would otherwise have
                  occurred, then the amount of such Revolving Lender's unfunded
                  participation interest therein shall bear interest payable to
                  the L/C Issuer upon demand, at the rate equal to, if paid
                  within two Business Days of such date, the Federal Funds Rate,
                  and thereafter at a rate equal to the Base Rate.
                  Simultaneously with the making of each such payment by a
                  Revolving Lender to the L/C Issuer, such Revolving Lender
                  shall, automatically and without any further action on the
                  part of the L/C Issuer or such Revolving Lender, acquire a
                  participation in an amount equal to such payment (excluding
                  the portion of such payment constituting interest owing to the
                  L/C Issuer) in the related unreimbursed drawing portion of the
                  L/C Obligation and in the interest thereon and shall have a
                  claim against the Borrower and the other Credit Parties with
                  respect thereto. Any payment by the Lenders pursuant to this
                  clause (iii) shall not relieve or otherwise impair the
                  obligations of the Borrower or any Credit Party to reimburse
                  the L/C Issuer under a Letter of Credit.

                  (e) Obligations Absolute. The obligation of the Borrower to
         reimburse the L/C Issuer for each drawing under each Letter of Credit
         shall be absolute, unconditional and irrevocable, and shall be paid
         strictly in accordance with the terms of this Credit Agreement under
         all circumstances, including the following:

                           (i) any lack of validity or enforceability of such
                  Letter of Credit, this Credit Agreement, or any other
                  agreement or instrument relating thereto;

                           (ii) the existence of any claim, counterclaim,
                  set-off, defense or other right that the Borrower may have at
                  any time against any beneficiary or any transferee of such
                  Letter of Credit (or any Person for whom any such beneficiary
                  or any such transferee may be acting), the L/C Issuer or any
                  other Person, whether in connection with this Credit
                  Agreement, the transactions contemplated hereby or by such
                  Letter of Credit or any agreement or instrument relating
                  thereto, or any unrelated transaction;

                           (iii) any draft, demand, certificate or other
                  document presented under such Letter of Credit proving to be
                  forged, fraudulent, invalid or insufficient in any respect or
                  any statement therein being untrue or inaccurate in any
                  respect; or any loss or delay in the transmission or otherwise
                  of any document required in order to make a drawing under such
                  Letter of Credit;

                           (iv) any payment by the L/C Issuer under such Letter
                  of Credit against presentation of a draft or certificate that
                  does not strictly comply with the terms of such Letter of
                  Credit; or any payment made by the L/C Issuer under such
                  Letter of Credit to any Person purporting to be a trustee in
                  bankruptcy, debtor-in-possession, assignee for the benefit of
                  creditors, liquidator, receiver or other representative of or
                  successor to any beneficiary or any transferee of such Letter
                  of Credit, including any arising in connection with any
                  proceeding under any Debtor Relief Law; or

                           (v) any other circumstance or happening whatsoever,
                  whether or not similar to any of the foregoing, including any
                  other circumstance that might otherwise constitute a defense
                  available to, or a discharge of, the Borrower.

         The Borrower shall promptly examine a copy of each Letter of Credit and
         each amendment thereto that is delivered to it and, in the event of any
         claim of noncompliance with the Borrower's instructions or other
         irregularity, the Borrower will immediately notify the L/C Issuer. The
         Borrower shall be conclusively deemed to have waived any such claim
         against the L/C Issuer and its correspondents unless such notice is
         given as aforesaid.

                                       26
<PAGE>

                  (f) Role of L/C Issuer. Each Revolving Lender and the Borrower
         agree that, in paying any drawing under a Letter of Credit, the L/C
         Issuer shall not have any responsibility to obtain any document (other
         than any sight draft, certificates and documents expressly required by
         the Letter of Credit) or to ascertain or inquire as to the validity or
         accuracy of any such document or the authority of the Person executing
         or delivering any such document. None of the L/C Issuer, any
         Agent-Related Person nor any of the respective correspondents,
         participants or assignees of the L/C Issuer shall be liable to any
         Lender for (i) any action taken or omitted in connection herewith at
         the request or with the approval of the Revolving Lenders or the
         Required Lenders, as applicable, (ii) any action taken or omitted in
         the absence of gross negligence or willful misconduct or (iii) the due
         execution, effectiveness, validity or enforceability of any document or
         instrument related to any Letter of Credit or Letter of Credit
         Application. The Borrower hereby assumes all risks of the acts or
         omissions of any beneficiary or transferee with respect to its use of
         any Letter of Credit; provided, however, that this assumption is not
         intended to, and shall not, preclude the Borrower's pursuing such
         rights and remedies as it may have against the beneficiary or
         transferee at law or under any other agreement. None of the L/C Issuer,
         any Agent-Related Person, nor any of the respective correspondents,
         participants or assignees of the L/C Issuer, shall be liable or
         responsible for any of the matters described in clauses (i) through (v)
         of Section 2.2(e). In furtherance and not in limitation of the
         foregoing, the L/C Issuer may accept documents that appear on their
         face to be in order, without responsibility for further investigation
         and the L/C Issuer shall not be responsible for the validity or
         sufficiency of any instrument transferring or assigning or purporting
         to transfer or assign a Letter of Credit or the rights or benefits
         thereunder or proceeds thereof, in whole or in part, which may prove to
         be invalid or ineffective for any reason.

                  (g) Cash Collateral. If, as of the Letter of Credit Expiration
         Date, any Letter of Credit for any reason remains outstanding and
         partially or wholly undrawn, the Borrower shall immediately Cash
         Collateralize the then aggregate principal amount of all L/C
         Obligations (in an amount equal to such aggregate principal amount
         determined as of the Letter of Credit Expiration Date). The Borrower
         hereby grants to the Administrative Agent, for the benefit of the L/C
         Issuer and the Lenders, a security interest in all such cash, deposit
         accounts and all balances therein and all proceeds of the foregoing.
         Cash collateral shall be maintained in blocked, non-interest bearing
         deposit accounts at Bank of America.

                  (h) Applicability of ISP98 and UCP. Unless otherwise expressly
         agreed by the L/C Issuer and the Borrower when a Letter of Credit is
         issued (including any such agreement applicable to an Existing Letter
         of Credit), the rules of the "International Standby Practices 1998"
         published by the Institute of International Banking Requirement of Law
         & Practice (or such later version thereof as may be in effect at the
         time of issuance) and the rules of the Uniform Customs and Practice for
         Documentary Credits, as most recently published by the International
         Chamber of Commerce (the "ICC") at the time of issuance (including the
         ICC decision published by the Commission on Banking Technique and
         Practice on April 6, 1998 regarding the European single currency
         (euro)) shall apply to each Letter of Credit.

                  (i) Fronting Fee and Documentary and Processing Charges
         Payable to L/C Issuer. The Borrower shall pay directly to the L/C
         Issuer for its own account a fronting fee with respect to each Letter
         of Credit in an amount equal to 0.125% times the daily maximum amount
         available to be drawn under such Letter of Credit (the "L/C Fronting
         Fee"). The L/C Fronting Fee shall be computed on a quarterly basis in
         arrears and shall be due and payable on the last Business Day of each
         fiscal quarter of the Borrower (as well as on the Letter of Credit
         Expiration Date) for the fiscal quarter (or portion thereof) then
         ending, beginning with the first of such dates to occur after the
         issuance of such Letter of Credit. In addition, the Borrower shall pay
         directly to the L/C Issuer for its own account the customary issuance,
         presentation, amendment and other processing fees, and other standard
         costs and charges, of the L/C Issuer relating to letters of credit as
         from time to time in effect. Such customary fees and standard costs and
         charges are due and payable on demand and are nonrefundable.

                  (j) Conflict with Letter of Credit Application. In the event
         of any conflict between the terms hereof and the terms of any Letter of
         Credit Application, the terms hereof shall control.

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<PAGE>

                  (k) Designation of Subsidiaries as Account Parties.
         Notwithstanding anything to the contrary set forth in this Credit
         Agreement, a Letter of Credit issued hereunder may contain a statement
         to the effect that such Letter of Credit is issued for the account of a
         Subsidiary of the Borrower; provided that notwithstanding such
         statement, the Borrower shall be the actual account party for all
         purposes of this Credit Agreement for such Letter of Credit and such
         statement shall not affect the Borrower's reimbursement obligations
         hereunder with respect to such Letter of Credit.

                  (l) Indemnification of L/C Issuer.

                           (i) In addition to its other obligations under this
                  Credit Agreement, the Credit Parties hereby agree to protect,
                  indemnify, pay and hold the L/C Issuer harmless from and
                  against any and all claims, demands, liabilities, damages,
                  losses, costs, charges and expenses (including reasonable
                  attorneys' fees) that the L/C Issuer may incur or be subject
                  to as a consequence, direct or indirect, of (A) the issuance
                  of any Letter of Credit or (B) the failure of the L/C Issuer
                  to honor a drawing under a Letter of Credit as a result of any
                  act or omission, whether rightful or wrongful, of any present
                  or future de jure or de facto government or Governmental
                  Authority (all such acts or omissions, herein called
                  "Government Acts").

                           (ii) As between the Credit Parties and the L/C
                  Issuer, the Credit Parties shall assume all risks of the acts,
                  omissions or misuse of any Letter of Credit by the beneficiary
                  thereof. In the absence of gross negligence or willful
                  misconduct, the L/C Issuer shall not be responsible for: (A)
                  the form, validity, sufficiency, accuracy, genuineness or
                  legal effect of any document submitted by any party in
                  connection with the application for and issuance of any Letter
                  of Credit, even if it should in fact prove to be in any or all
                  respects invalid, insufficient, inaccurate, fraudulent or
                  forged; (B) the validity or sufficiency of any instrument
                  transferring or assigning or purporting to transfer or assign
                  any Letter of Credit or the rights or benefits thereunder or
                  proceeds thereof, in whole or in part, that may prove to be
                  invalid or ineffective for any reason; (C) failure of the
                  beneficiary of a Letter of Credit to comply fully with
                  conditions required in order to draw upon a Letter of Credit;
                  (D) errors, omissions, interruptions or delays in transmission
                  or delivery of any messages, by mail, cable, telegraph, telex
                  or otherwise, whether or not they be in cipher; (E) errors in
                  interpretation of technical terms; (F) any loss or delay in
                  the transmission or otherwise of any document required in
                  order to make a drawing under a Letter of Credit or of the
                  proceeds thereof; and (G) any consequences arising from causes
                  beyond the control of the L/C Issuer, including, without
                  limitation, any Government Acts. None of the above shall
                  affect, impair, or prevent the vesting of the L/C Issuer's
                  rights or powers hereunder.

                           (iii) In furtherance and extension and not in
                  limitation of the specific provisions hereinabove set forth,
                  any action taken or omitted by the L/C Issuer, under or in
                  connection with any Letter of Credit or the related
                  certificates, if taken or omitted in good faith, shall not put
                  the L/ C Issuer under any resulting liability to the Borrower
                  or any other Credit Party. It is the intention of the parties
                  that this Credit Agreement shall be construed and applied to
                  protect and indemnify the L/C Issuer against any and all risks
                  involved in the issuance of the Letters of Credit, all of
                  which risks are hereby assumed by the Credit Parties,
                  including, without limitation, any and all risks of the acts
                  or omissions, whether rightful or wrongful, of any present or
                  future Government Acts. The L/C Issuer shall not, in any way,
                  be liable for any failure by the L/C Issuer or anyone else to
                  pay any drawing under any Letter of Credit as a result of any
                  Government Acts or any other cause beyond the control of the
                  L/C Issuer.

                           (iv) Nothing in this subsection (l) is intended to
                  limit the reimbursement obligation of the Borrower contained
                  in this Section 2.2. The obligations of the Borrower under
                  this subsection (l) shall survive the termination of this
                  Credit Agreement. No act or omission of any current or prior
                  beneficiary of a Letter of Credit shall in any way affect or
                  impair the rights of the L/C Issuer to enforce any right,
                  power or benefit under this Credit Agreement.

                                       28
<PAGE>

                  (m) Letter of Credit Amounts. Unless otherwise specified, all
         references herein to the amount of a Letter of Credit at any time shall
         be deemed to mean the maximum face amount of such Letter of Credit
         after giving effect to all increases thereof contemplated by such
         Letter of Credit or the Letter of Credit Application therefor, whether
         or not such maximum face amount is in effect at such time.

         2.3 TERM LOANS.

                  (a) Term Loan Commitment. Subject to the terms and conditions
         set forth herein, each Term Loan Lender severally agrees, on the
         Closing Date, to make a term loan (each a "Term Loan" and collectively
         the "Term Loans") to the Borrower in Dollars in an amount equal to such
         Term Loan Lender's Pro Rata Share of the Term Loan Committed Amount;
         provided that the aggregate amount of Term Loans made on the Closing
         Date shall not exceed the Term Loan Committed Amount. Once repaid, Term
         Loans may not be reborrowed.

                  (b) Funding of Term Loans. On or before 1:00 p.m. on the
         Closing Date, each Term Loan Lender will make its Pro Rata Share of the
         Term Loan Committed Amount available to the Administrative Agent by
         deposit, in Dollars and in immediately available funds, at the
         Administrative Agent's Office. The amount of the Term Loans will then
         be made available to the Borrower by the Administrative Agent either by
         (i) crediting the account of the Borrower on the books of the
         Administrative Agent with the amount of such funds or (ii) by wire
         transfer of such funds, in each case to the extent the amount of such
         Term Loans are made available to the Administrative Agent. All Term
         Loans on the Closing Date shall be Base Rate Loans. Thereafter, all or
         any portion of the Term Loans may be converted into Eurodollar Loans in
         accordance with the terms of Section 2.4.

                  (c) Amortization. The principal amount of the Term Loans shall
         be repaid in quarterly installments as follows, unless accelerated
         sooner pursuant to Section 9.2:

<Table>
<Caption>
     PRINCIPAL AMORTIZATION PAYMENT        TERM LOAN PRINCIPAL
                  DATES                   AMORTIZATION PAYMENT
     ------------------------------       --------------------
<S>                                           <C>
             March 31, 2003                   $2,083,333.25

              June 30, 2003                   $2,083,333.25

           September 30, 2003                 $2,083,333.25

            December 31, 2003                 $2,083,333.25

             March 31, 2004                   $2,083,333.25

              June 30, 2004                   $2,083,333.25

           September 30, 2004                 $2,083,333.25

            December 31, 2004                 $2,083,333.25

             March 31, 2005                   $2,083,333.25

              June 30, 2005                   $2,083,333.25

           September 30, 2005                 $2,083,333.25

              Maturity Date                   $2,083,334.25
     ------------------------------       --------------------
</Table>

                  (d) Term Notes. The Term Loan made by each Lender shall be
         evidenced by a duly executed promissory note of the Borrower to such
         Lender in substantially the form of Exhibit 2.3(d).

                                       29
<PAGE>

         2.4 CONTINUATIONS AND CONVERSIONS.

         Subject to the terms below, the Borrower shall have the option, on any
Business Day prior to the Maturity Date, to continue existing Eurodollar Loans
for a subsequent Interest Period, to convert Base Rate Loans into Eurodollar
Loans or to convert Eurodollar Loans into Base Rate Loans. By no later than
11:00 a.m. (a) on the date of the requested conversion of a Eurodollar Loan to a
Base Rate Loan and (b) three Business Days prior to the date of the requested
continuation of a Eurodollar Loan or conversion of a Base Rate Loan to a
Eurodollar Loan, the Borrower shall provide telephonic notice to the
Administrative Agent, followed promptly by a written Notice of
Continuation/Conversion in the form of Exhibit 2.4, setting forth whether the
Borrower wishes to continue or convert such Loans. Notwithstanding anything
herein to the contrary, (i) except as provided in Section 3.11, Eurodollar Loans
may only be continued or converted into Base Rate Loans on the last day of the
Interest Period applicable thereto, (ii) Eurodollar Loans may not be continued
nor may Base Rate Loans be converted into Eurodollar Loans during the existence
and continuation of a Default or an Event of Default and (iii) any request to
continue a Eurodollar Loan that fails to comply with the terms hereof or any
failure to request a continuation of a Eurodollar Loan at the end of an Interest
Period shall be deemed a request to convert such Eurodollar Loan to a Base Rate
Loan on the last day of the applicable Interest Period; provided that any
failure by the Borrower to adequately continue a Eurodollar Loan that is subject
to an Alternative Rate Agreement shall, on the last day of the applicable
Interest Period, be deemed to have been irrevocably requested by the Borrower to
be continued for an Interest Period of like duration (or such shorter duration
if it would exceed the applicable Alternative Rate Period) unless the
Alternative Rate Lender shall have notified the Administrative Agent that the
Alternative Rate Agreement is no longer in effect for such Eurodollar Loan.

         2.5 MINIMUM AMOUNTS.

         Each request for a Loan and each conversion or continuation thereof
shall be subject to the requirements that (a) each Eurodollar Loan shall be in a
minimum amount of $3,000,000 and in integral multiples of $1,000,000 in excess
thereof, (b) each Base Rate Loan shall be in a minimum amount of $500,000 and in
integral multiples of $100,000 in excess thereof (or the remaining amount of
outstanding Revolving Loans), and (c) no more than seven Eurodollar Loans shall
be outstanding hereunder at any one time. For the purposes of this Section 2.5,
separate Eurodollar Loans that begin and end on the same date, as well as
Eurodollar Loans that begin and end on different dates, shall all be considered
as separate Eurodollar Loans.

         2.6 ALTERNATIVE RATE.

         The Borrower may irrevocably request an Alternative Rate Agreement for
all or any portion of a Loan (including continuations thereof during the
Alternative Rate Period) in a principal amount of $5,000,000 or a whole multiple
of $1,000,000 in excess thereof by delivering a Request for Alternative Rate to
the Alternative Rate Lender not later than 10:00 a.m. (a) three Business Days
preceding the first Business Day of a calendar month for a Base Rate Loan, and
(b) five Business Days prior to the first day of the initial Interest Period
during which the Alternative Rate is to apply for a Eurodollar Loan. The
Alternative Rate Lender shall have no obligation to agree to a Request for
Alternative Rate and no Request for Alternative Rate shall be deemed to be
accepted by the Alternative Rate Lender until the Request for Alternative Rate
is accepted in writing by the Alternative Rate Lender. Any Alternative Rate
Agreement will become effective (i) for a Base Rate Loan, on the first Business
Day of a month and (ii) for a Eurodollar Loan, on the first day of the Interest
Period for such Eurodollar Loan within the applicable Alternative Rate Period,
and shall continue in effect, unless earlier terminated as herein provided, for
the Alternative Rate Period applicable thereto.

                                       30
<PAGE>

                                    SECTION 3

                          GENERAL PROVISIONS APPLICABLE
                                    TO LOANS

         3.1 INTEREST.

                  (a) Interest Rate. Subject to Sections 3.1(b) and (c), (i) all
         Base Rate Loans shall accrue interest at the Adjusted Base Rate and
         (ii) all Eurodollar Loans shall accrue interest at the Adjusted
         Eurodollar Rate.

                  (b) Default Rate of Interest. After the occurrence, and during
         the continuation, of an Event of Default, the principal of and, to the
         extent permitted by Law, interest on the Loans and any other amounts
         owing hereunder or under the other Credit Documents (including without
         limitation fees and expenses) shall bear interest, payable on demand,
         at the Default Rate.

                  (c) Alternative Rate Interest. Upon the written acceptance of
         a Request for Alternative Rate by the Alternative Rate Lender with
         respect to a Loan or any portion thereof (including continuations
         thereof), the Borrower shall pay interest to the Alternative Rate
         Lender for its account on the unpaid principal amount of such Loan or
         relevant portion thereof at a rate per annum equal to the Alternative
         Rate from the effective date of the Alternative Rate Agreement on each
         Interest Payment Date occurring prior to the end of (and including the
         last day of) the Alternative Rate Period for such Loan or earlier
         termination of the Alternative Rate pursuant to the terms of the
         Alternative Rate Agreement or this Credit Agreement (each such payment
         to be made in Dollars and in immediately available funds not later than
         12:00 noon; provided, however, that each Lender other than the
         Alternative Rate Lender shall continue to receive from the
         Administrative Agent (after its receipt of payment from the Alternative
         Rate Lender as set forth in the immediately following sentence) its Pro
         Rata Share of interest on such Loan determined pursuant to Section
         3.1(a)). The Lenders agree that to the extent that the Borrower pays
         the Alternative Rate on an Interest Payment Date for a Loan or relevant
         portion thereof to the Alternative Rate Lender, the Borrower's
         obligation to pay interest on such Revolving Loan on such Interest
         Payment Date shall have been satisfied and it shall be the
         responsibility of the Alternative Rate Lender to pay to the
         Administrative Agent for the account of the other Lenders the interest
         due on such Revolving Loan determined pursuant to Section 3.1(a) on
         such Interest Payment Date. The Borrower and Lenders acknowledge and
         agree that (i) the Alternative Rate Lender may, in its sole discretion,
         at any time upon the occurrence of any event or condition described in
         Section 3.14(b), by notice to the Borrower and the Administrative
         Agent, terminate the Alternative Rate Agreement and cause the
         Alternative Rate applicable to a Revolving Loan to revert to (A) the
         interest rate otherwise applicable to such Revolving Loan determined
         pursuant to Section 3.1(a) (the "Original Rate") or (B) the Default
         Rate if it would then be applicable to such Loan pursuant to Section
         3.1(b), (ii) if, with respect to a Loan as to which an Alternative Rate
         is then applicable, the Lenders (other than the Alternative Rate
         Lender) shall fail to receive the Original Rate or, if applicable, the
         Default Rate for such Loan from the Administrative Agent, the
         Alternative Rate shall automatically revert to the Original Rate or, if
         applicable, the Default Rate for such Loan and the Alternative Rate
         Agreement applicable to such Loan shall, at the discretion of the
         Alternative Rate Lender, terminate and (iii) no Lender shall have any
         right to any payment or performance from the Alternative Rate Lender
         hereunder or otherwise in respect of any Alternative Rate Agreement
         other than as provided in the second sentence of this Section 3.1(c).
         The Borrower and the Lenders further acknowledge and agree that
         notwithstanding the foregoing, in the event that the Default Rate shall
         at any time apply to a Loan as to which an Alternative Rate Agreement
         remains in effect, the Borrower shall be solely responsible for the
         full and timely payment to the Administrative Agent for the account of
         the Lenders (including the Alternative Rate Lender) of the amount by
         which such Default Rate exceeds the Original Rate.

                  (d) Interest Payments. Interest on Loans shall be due and
         payable in arrears on each Interest Payment Date.

                                       31
<PAGE>

         3.2 PAYMENTS GENERALLY.

                  (a) No Deductions; Place and Time of Payments. All payments to
         be made by the Credit Parties shall be made without condition or
         deduction for any counterclaim, defense, recoupment or setoff. Except
         as otherwise expressly provided herein, all payments by the Credit
         Parties hereunder shall be made to the Administrative Agent, for the
         account of the respective Lenders to which such payment is owed, at the
         Administrative Agent's Office in Dollars and in immediately available
         funds not later than 2:00 p.m. on the date specified herein. The
         Administrative Agent will promptly distribute to each Lender its Pro
         Rata Share (or other applicable share as provided herein) of such
         payment in like funds as received by wire transfer to such Lender's
         Lending Office. All payments received by the Administrative Agent after
         2:00 p.m. shall be deemed received on the next succeeding Business Day
         and any applicable interest or fee shall continue to accrue.

                  (b) Payment Dates. Subject to the definition of "Interest
         Period," if any payment to be made by the Borrower shall come due on a
         day other than a Business Day, payment shall be made on the next
         following Business Day, and such extension of time shall be reflected
         in computing interest or fees, as the case may be.

                  (c) Advances by Administrative Agent. Unless the Borrower, the
         Alternative Rate Lender or any Lender has notified the Administrative
         Agent, prior to the date any payment is required to be made by it to
         the Administrative Agent hereunder, that the Borrower, the Alternative
         Rate Lender or such Lender, as the case may be, will not make such
         payment, the Administrative Agent may assume that the Borrower, the
         Alternative Rate Lender or such Lender, as the case may be, has timely
         made such payment and may (but shall not be so required to), in
         reliance thereon, make available a corresponding amount to the Person
         entitled thereto. If and to the extent that such payment was not in
         fact made to the Administrative Agent in Dollars and in immediately
         available funds, then:

                           (i) if the Borrower or Alternative Rate Lender failed
                  to make such payment, each Lender shall forthwith on demand
                  repay to the Administrative Agent the portion of such assumed
                  payment that was made available to such Lender in Dollars and
                  in immediately available funds, together with interest thereon
                  in respect of each day from and including the date such amount
                  was made available by the Administrative Agent to such Lender
                  to the date such amount is repaid to the Administrative Agent
                  in immediately available funds at the Federal Funds Rate from
                  time to time in effect; and

                           (ii) if any Lender failed to make such payment, such
                  Lender shall forthwith on demand pay to the Administrative
                  Agent the amount thereof in Dollars and in immediately
                  available funds, together with interest thereon for the period
                  from the date such amount was made available by the
                  Administrative Agent to the Borrower to the date such amount
                  is recovered by the Administrative Agent (the "Compensation
                  Period") at a rate per annum equal to the Federal Funds Rate
                  from time to time in effect. If such Lender pays such amount
                  to the Administrative Agent, then such amount shall constitute
                  such Lender's Revolving Loan included in the applicable
                  Borrowing. If such Lender does not pay such amount forthwith
                  upon the Administrative Agent's demand therefor, the
                  Administrative Agent may make a demand therefor upon the
                  Borrower, and the Borrower shall pay such amount to the
                  Administrative Agent, together with interest thereon for the
                  Compensation Period at a rate per annum equal to the rate of
                  interest applicable to such Borrowing. Nothing herein shall be
                  deemed to relieve any Lender from its obligation to fulfill
                  its Commitment or to prejudice any rights which the
                  Administrative Agent or the Borrower may have against any
                  Lender as a result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender or the Borrower with
         respect to any amount owing under this subsection (c) shall be
         conclusive, absent manifest error.

                                       32
<PAGE>

                  (d) Several Obligations. The obligations of the Lenders
         hereunder to make Loans and to fund or purchase Participation Interest
         are several and not joint. The failure of any Lender to make any Loan
         or to fund or purchase any Participation Interest on any date required
         hereunder shall not relieve any other Lender of its corresponding
         obligation to do so on such date, and no Lender shall be responsible
         for the failure of any other Lender to so make its Loan or fund its
         Participation Interest.

                  (e) Funding Offices. Nothing herein shall be deemed to
         obligate any Lender to obtain the funds for any Loan in any particular
         place or manner or to constitute a representation by any Lender that it
         has obtained or will obtain the funds for any Loan in any particular
         place or manner.

         3.3 PREPAYMENTS.

                  (a) Voluntary Prepayments. The Borrower shall have the right
         to prepay the Loans in whole or in part from time to time without
         premium or penalty; provided, however, that (i) all prepayments under
         this Section 3.3(a) shall be subject to Section 3.14, (ii) Eurodollar
         Loans may only be prepaid on three Business Days' prior written notice
         to the Administrative Agent, (iii) each such partial prepayment of
         Eurodollar Loans shall be in the minimum principal amount of $1,000,000
         and integral multiples of $500,000 and (iv) each such partial
         prepayment of Base Rate Loans shall be in the minimum principal amount
         of $500,000 and integral multiples of $100,000 or, in the case of
         clauses (iii) and (iv), if less than such minimum amounts, the entire
         principal amount thereof then outstanding. Amounts prepaid pursuant to
         this Section 3.3(a) shall be applied as the Borrower may elect based on
         the Lenders' Pro Rata Shares; provided, however, if the Borrower fails
         to specify, such prepayment shall be applied by the Administrative
         Agent, subject to Section 3.7, in such manner as it deems reasonably
         appropriate.

                  (b) Mandatory Prepayments.

                           (i) Revolving Committed Amount. If at any time (A)
                  the sum of the aggregate principal amount of Revolving Loans
                  outstanding plus the aggregate principal amount of L/C
                  Obligations outstanding exceeds the Revolving Committed Amount
                  or (B) the aggregate principal amount of L/C Obligations
                  outstanding exceeds the Letter of Credit Sublimit, the
                  Borrower shall immediately make a principal payment to the
                  Administrative Agent and/or Cash Collateralize outstanding L/C
                  Obligations in a manner and in an amount to be in compliance
                  with Sections 2.1 and 2.2, as applicable, and as directed by
                  the Administrative Agent (any such prepayment with respect to
                  clause (A) above to be applied as set forth in Section 3.3(c)
                  below).

                           (ii) Asset Disposition. Immediately upon receipt by a
                  Credit Party or any of its Subsidiaries of proceeds from any
                  Asset Disposition, the Borrower shall forward an amount equal
                  to 100% of the Net Cash Proceeds of such Asset Disposition to
                  the Administrative Agent (all such prepayments to be applied
                  as set forth in Section 3.3(c) below); provided, however, the
                  Borrower shall not be required to forward such Net Cash
                  Proceeds to the extent such Net Cash Proceeds are reinvested
                  in accordance with the terms of Section 8.4(g).

                           (iii) Equity Issuances. Immediately upon receipt by a
                  Credit Party or any of its Subsidiaries of proceeds from any
                  Equity Issuance, the Borrower shall forward an amount equal to
                  50% of the Net Cash Proceeds of such Equity Issuance to the
                  Administrative Agent (all such prepayments to be applied as
                  set forth in Section 3.3(c) below).

                           (iv) Debt Issuances. Immediately upon receipt by a
                  Credit Party or any of its Subsidiaries of proceeds from any
                  Debt Issuance, the Borrower shall forward an amount equal to
                  100% of the Net Cash Proceeds of such Debt Issuance to the
                  Administrative Agent (all such prepayments to be applied as
                  set forth in Section 3.3(c) below).

                           (v) Service Agreement Buy-Outs of Litigating ORAL
                  Affiliated Practices. Immediately upon receipt by a Credit
                  Party or any of its Subsidiaries of proceeds from any Service

                                       33
<PAGE>

                  Agreement Buy-Out with respect to a Litigating ORAL Affiliated
                  Practice, the Borrower shall forward an amount equal to 35% of
                  all cash proceeds of any such Service Agreement Buy-Out when
                  received (whether received at the time of any buy-out or
                  settlement or subsequently in connection with any sale,
                  disposition or payment under any promissory note, instrument
                  or other non-cash consideration) to the Administrative Agent
                  (all such prepayments to be applied as set forth in Section
                  3.3(c)).

                  (c) Application of Prepayments. All amounts required to be
         prepaid pursuant to Section 3.3(b)(i)(A) shall be applied first to
         Revolving Loans and second to Cash Collateralize outstanding L/C
         Obligations. All amounts required to be prepaid pursuant to Sections
         3.3(b)(ii), (iii), (iv) and (v) shall be applied first to Principal
         Amortization Payments in inverse order of maturity, second to Revolving
         Loans and third to Cash Collateralize outstanding L/C Obligations.
         Within the parameters of the applications set forth above, prepayments
         shall be applied first to Base Rate Loans and second to Eurodollar
         Loans in direct order of Interest Period maturities. All prepayments
         pursuant to Section 3.3(b) shall be subject to Section 3.14 and shall
         be accompanied by the interest on the principal amount prepaid through
         the date of prepayment.

         3.4 FEES.

                  (a) Commitment Fees. In consideration of the Revolving
         Committed Amount being made available by the Lenders hereunder, the
         Borrower agrees to pay to the Administrative Agent, for the pro rata
         benefit of each Revolving Lender based on its Pro Rata Share of the
         Revolving Committed Amount, a per annum fee equal to the daily average
         sum of the Applicable Percentage for Commitment Fees for each day
         during the period of determination multiplied by the Unused Revolving
         Commitment for each such day (the "Commitment Fees"). The Commitment
         Fees shall commence to accrue on the Closing Date and shall be due and
         payable in arrears on the last Business Day of each fiscal quarter of
         the Borrower (as well as on the Maturity Date and on any date that the
         Revolving Committed Amount is reduced) for the fiscal quarter (or
         portion thereof) then ending, beginning with the first of such dates to
         occur after the Closing Date.

                  (b) L/C Fees. The Borrower shall pay to the Administrative
         Agent for the account of each Revolving Lender in accordance with its
         Pro Rata Share of the Revolving Committed Amount a fee for each
         outstanding Letter of Credit equal to the Applicable Percentage for L/C
         Fees times the daily maximum amount available to be drawn under such
         Letter of Credit (the "L/C Fees"). The L/C Fees shall be computed on a
         quarterly basis in arrears and shall be due and payable on the last
         Business Day of each fiscal quarter of the Borrower (as well as on the
         Letter of Credit Expiration Date) for the fiscal quarter (or portion
         thereof) then ending, beginning with the first of such dates to occur
         after the issuance of such Letter of Credit.

                  (c) Administrative Fees. The Borrower agrees to pay to the
         Administrative Agent, for its own account, an annual fee as agreed to
         between the Borrower and the Administrative Agent (the "Administrative
         Fees") in the Fee Letter.

         3.5 PAYMENT IN FULL AT MATURITY.

         On the Maturity Date, the entire outstanding principal balance of all
Loans, together with accrued but unpaid interest and all fees and other sums
owing under the Credit Documents, including, without limitation, all Credit
Party Obligations shall be due and payable in full, unless accelerated sooner
pursuant to Section 9.2; provided that if the Maturity Date is not a Business
Day, then such principal, interest, fees and other sums shall be due and payable
in full on the next preceding Business Day.

         3.6 COMPUTATIONS OF INTEREST AND FEES.

                  (a) Calculation of Interest. Except for Base Rate Loans that
         are based upon the Prime Rate, in which case interest shall be computed
         on the basis of the actual number of days elapsed over a year of 365 or

                                       34
<PAGE>

         366 days, as the case may be, all computations of interest and fees
         hereunder (including calculation of the Alternative Rate) shall be made
         on the basis of the actual number of days elapsed over a year of 360
         days. Interest shall accrue from and including the Closing Date or from
         the first date of Borrowing (or from any continuation or conversion
         thereof) to but excluding the last day occurring in the period for
         which such interest is payable.

                  (b) Usury. It is the intent of the Lenders and the Credit
         Parties to conform to and contract in strict compliance with applicable
         usury Law from time to time in effect. All agreements between the
         Lenders and the Credit Parties are hereby limited by the provisions of
         this subsection which shall override and control all such agreements,
         whether now existing or hereafter arising and whether written or oral.
         In no way, nor in any event or contingency (including but not limited
         to prepayment or acceleration of the maturity of any Credit Party
         Obligation), shall the interest taken, reserved, contracted for,
         charged, or received under this Credit Agreement, under the Notes or
         otherwise, exceed the maximum nonusurious amount permissible under
         applicable Law. If, from any possible construction of any of the Credit
         Documents or any other document, interest would otherwise be payable in
         excess of the maximum nonusurious amount, any such construction shall
         be subject to the provisions of this subsection and such documents
         shall be automatically reduced to the maximum nonusurious amount
         permitted under applicable Law, without the necessity of execution of
         any amendment or new document. If any Lender shall ever receive
         anything of value which is characterized as interest on the Loans under
         applicable Law and which would, apart from this provision, be in excess
         of the maximum nonusurious amount, an amount equal to the amount which
         would have been excessive interest shall, without penalty, be applied
         to the reduction of the principal amount owing on the Loans and not to
         the payment of interest, or refunded to the Borrower or the other payor
         thereof if and to the extent such amount which would have been
         excessive exceeds such unpaid principal amount of the Loans. The right
         to demand payment of the Loans or any other Indebtedness evidenced by
         any of the Credit Documents does not include the right to accelerate
         the payment of any interest which has not otherwise accrued on the date
         of such demand, and the Lenders do not intend to charge or receive any
         unearned interest in the event of such demand. All interest paid or
         agreed to be paid to the Lenders with respect to the Loans shall, to
         the extent permitted by applicable Law, be amortized, prorated,
         allocated, and spread throughout the full stated term (including any
         renewal or extension) of the Loans so that the amount of interest on
         account of the Loans does not exceed the maximum nonusurious amount
         permitted by applicable Law.

         3.7 PRO RATA TREATMENT.

         Except to the extent otherwise provided herein, each Borrowing, each
payment or prepayment of principal of any Revolving Loan, each L/C Credit
Extension, each payment or prepayment of principal of any Term Loan, each
payment of interest (other than with respect to the Alternative Rate Lender),
each payment of fees (other than administrative fees paid to the Administrative
Agent and fronting, documentary and processing fees paid to the L/C Issuer),
each conversion or continuation of any Loans and each reduction in the Revolving
Committed Amount, shall be allocated pro rata among the relevant Lenders in
accordance with their Pro Rata Shares; provided that, if any Lender shall have
failed to pay its Pro Rata Share of any Loan or purchase or fund its
Participation Interest, then any amount to which such Lender would otherwise be
entitled pursuant to this Section 3.7 shall instead be payable to the
Administrative Agent until the share of such Loan or such Participation Interest
not purchased or funded by such Lender has been repaid. In the event any
principal, interest, fee or other amount paid to any Lender pursuant to this
Credit Agreement or any other Credit Document is rescinded or must otherwise be
returned by the Administrative Agent, (a) such principal, interest, fee or other
amount that had been satisfied by such payment shall be revived, reinstated and
continued in full force and effect as if such payment had not occurred and (b)
such Lender shall, upon the request of the Administrative Agent, repay to the
Administrative Agent the amount so paid to such Lender, with interest for the
period commencing on the date such payment is returned by the Administrative
Agent until the date the Administrative Agent receives such repayment at a rate
per annum equal to the Federal Funds Rate if repaid within two (2) Business Days
after such request and thereafter the Base Rate.

                                       35
<PAGE>

         3.8 SHARING OF PAYMENTS.

         The Lenders agree among themselves that, except to the extent otherwise
provided herein, in the event that any Lender shall obtain payment in respect of
any Revolving Loan, any Term Loan, any L/C Obligations or any other obligation
owing to such Lender under this Credit Agreement through the exercise of a right
of setoff, banker's lien or counterclaim, or pursuant to a secured claim under
Section 506 of the Bankruptcy Code or other security or interest arising from,
or in lieu of, such secured claim, received by such Lender under any applicable
Debtor Relief Law or other similar Law or otherwise, or by any other means, in
excess of its Pro Rata Share of such payment as provided for in this Credit
Agreement, such Lender shall promptly pay in cash or purchase from the other
Lenders a participation in such Loans, L/C Obligations and other obligations in
such amounts, and make such other adjustments from time to time, as shall be
equitable to the end that all Lenders share such payment in accordance with
their Pro Rata Shares. The Lenders further agree among themselves that if
payment to a Lender obtained by such Lender through the exercise of a right of
setoff, banker's lien, counterclaim or other event as aforesaid shall be
rescinded or must otherwise be returned, each Lender which shall have shared the
benefit of such payment shall, by payment in cash or a repurchase of a
participation theretofore sold, return its share of that benefit (together with
its share of any accrued interest payable with respect thereto) to each Lender
whose payment shall have been rescinded or otherwise returned. The Borrower
agrees that (a) any Lender so purchasing such a participation may, to the
fullest extent permitted by Law, exercise all rights of payment, including
setoff, banker's lien or counterclaim, with respect to such participation as
fully as if such Lender were a holder of such Loan, L/C Obligations or other
obligation in the amount of such participation and (b) the Credit Party
Obligations that have been satisfied by a payment that has been rescinded or
otherwise returned shall be revived, reinstated and continued in full force and
effect as if such payment had not occurred. Except as otherwise expressly
provided in this Credit Agreement, if any Lender or the Administrative Agent
shall fail to remit to any other Lender an amount payable by such Lender or the
Administrative Agent to such other Lender pursuant to this Credit Agreement on
the date when such amount is due, such payments shall be made together with
interest thereon for each date from the date such amount is due until the date
such amount is paid to the Administrative Agent or such other Lender at a rate
per annum equal to the Federal Funds Rate. If under any applicable Debtor Relief
Law or other similar Law, any Lender receives a secured claim in lieu of a
setoff to which this Section 3.8 applies, such Lender shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the Lenders under this Section 3.8 to share in the
benefits of any recovery on such secured claim.

         3.9 CAPITAL ADEQUACY.

         If any Lender reasonably determines that the introduction after the
Closing Date of any Law, rule or regulation or other Requirement of Law
regarding capital adequacy or any change therein or in the interpretation
thereof, or compliance by such Lender (or its Lending Office) therewith, has or
would have the effect of reducing the rate of return on the capital or assets of
such Lender or any corporation controlling such Lender as a consequence of such
Lender's obligations hereunder (taking into consideration its policies with
respect to capital adequacy and such Lender's desired return on capital), then
from time to time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for any such reduction actually incurred.

         3.10 EURODOLLAR PROVISIONS.

         If the Administrative Agent reasonably determines (which determination
shall be conclusive and binding upon the Borrower) in connection with any
request for a Eurodollar Loan or a conversion to or continuation thereof that
(a) deposits in Dollars are not being offered to banks in the applicable
offshore interbank market for the applicable amount and Interest Period of such
Eurodollar Loan, (b) adequate and reasonable means do not exist for determining
the Eurodollar Rate for such Eurodollar Loan, or (c) the Eurodollar Rate for
such Eurodollar Loan does not adequately and fairly reflect the cost to the
Lenders of funding such Eurodollar Loan, the Administrative Agent will promptly
notify the Borrower and the Lenders. Thereafter, the obligation of the Lenders
to make or maintain Eurodollar Loans shall be suspended until the Administrative
Agent revokes such notice. Upon receipt of such notice, the Borrower may revoke
any pending Notice of Borrowing or Notice of Continuation/Conversion with
respect to Eurodollar Loans or, failing that, will be deemed to have converted
such request into a request for a

                                       36
<PAGE>

Borrowing of or, to the extent permitted hereunder, conversion into a Base Rate
Loan in the amount specified therein.

         3.11 ILLEGALITY.

         If any Lender reasonably determines that any Requirement of Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Loans in Dollars, or materially restricts the authority of such
Lender to purchase or sell, or to take deposits of, Dollars in the applicable
interbank market, or to determine or charge interest rates based upon the
Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Loans or to convert Base Rate Loans to Eurodollar Loans shall be
suspended until such Lender notifies the Administrative Agent and the Borrower
that the circumstances giving rise to such determination no longer exist. Upon
receipt of such notice, the Borrower shall, upon demand to the Borrower from
such Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Loans of such Lender to Base Rate Loans, either on the
last day of the Interest Period thereof, if such Lender may lawfully continue to
maintain such Eurodollar Loans to such day, or immediately, if such Lender may
not lawfully continue to maintain such Eurodollar Loans. Upon any such
prepayment or conversion, the Borrower shall also pay interest on the amount so
prepaid or converted, together with any amounts due with respect thereto
pursuant to Section 3.14.

         3.12 REQUIREMENTS OF LAW; RESERVES ON EURODOLLAR LOANS.

                  (a) Changes in Law. If any Lender reasonably determines that
         as a result of the introduction of or any change in, or in the
         interpretation of, any Requirement of Law, or such Lender's compliance
         therewith, there shall be any increase in the cost to such Lender of
         agreeing to make or making, funding or maintaining Eurodollar Loans, or
         a reduction in the amount received or receivable by such Lender in
         connection with any of the foregoing (excluding for purposes of this
         Section 3.12 any such increased costs or reduction in amount resulting
         from (i) Taxes or Other Taxes (as to which Section 3.13 shall govern)
         and (ii) reserve requirements contemplated by subsection (b) below),
         then from time to time, upon demand of such Lender (through the
         Administrative Agent), the Borrower shall pay to such Lender such
         additional amounts as will compensate such Lender for such increased
         cost or reduction in yield.

                  (b) Reserves. The Borrower shall pay to each Lender (to the
         extent such Lender has not otherwise been compensated therefor
         hereunder), as long as such Lender shall be required to maintain
         reserves with respect to liabilities or assets consisting of or
         including eurocurrency funds or deposits (currently known as
         "eurocurrency liabilities"), additional interest on the unpaid
         principal amount of each Eurodollar Loan equal to the actual costs of
         such reserves allocated to such Loan by such Lender (as determined by
         such Lender in good faith, which determination shall be conclusive
         absent demonstrable error), which shall be due and payable on each date
         on which interest is payable on such Loan; provided that the Borrower
         shall have received at least 15 days' prior notice (with a copy to the
         Administrative Agent) of such additional interest from such Lender. If
         a Lender fails to give notice 15 days prior to the relevant Interest
         Payment Date, such additional interest shall be due and payable 15 days
         from receipt of such notice.

         3.13 TAXES.

                  (a) Payment of Taxes. Any and all payments by a Credit Party
         to or for the account of the Administrative Agent or any Lender under
         any Credit Document shall be made free and clear of and without
         deduction for any and all present or future income, stamp or other
         taxes, duties, levies, imposts, deductions, assessments, fees,
         withholdings or similar charges, and all liabilities with respect
         thereto, but excluding, in the case of the Administrative Agent and
         each Lender, taxes imposed on or measured by its net income, and
         franchise taxes imposed on it (in lieu of net income taxes), by the
         jurisdiction (or any political subdivision thereof) under the Laws of
         which the Administrative Agent or such Lender, as the case may be, is
         organized or maintains its Lending Office (all such non-excluded
         present or future income, stamp or other taxes,

                                       37
<PAGE>

         duties, levies, imposts, deductions, assessments, fees, withholdings or
         similar charges, and liabilities being hereinafter referred to as
         "Taxes"). If a Credit Party shall be required by any Requirement of Law
         to deduct any Taxes from or in respect of any sum payable under any
         Credit Document to the Administrative Agent or any Lender, (i) the sum
         payable shall be increased as necessary so that after making all
         required deductions (including deductions applicable to additional sums
         payable under this Section 3.13(a)), the Administrative Agent or such
         Lender, as the case may be, receives an amount equal to the sum it
         would have received had no such deductions been made, (ii) such Credit
         Party shall make such deductions, (iii) such Credit Party shall pay the
         full amount deducted to the relevant taxation authority or other
         Governmental Authority in accordance with applicable Requirements of
         Law, and (iv) within 30 days after the date of such payment, such
         Credit Party shall furnish to the Administrative Agent (which shall
         forward the same to such Lender, if applicable) the original or a
         certified copy of a receipt evidencing payment thereof, to the extent
         such receipt is issued therefor, or other written proof of payment
         thereof that is reasonably satisfactory to the Administrative Agent.

                  (b) Additional Taxes. In addition, each Credit Party agrees to
         pay any and all present or future stamp, court or documentary taxes and
         any other excise or property taxes or charges or similar levies which
         arise from any payment made under any Credit Document or from the
         execution, delivery, performance, enforcement or registration of, or
         otherwise with respect to, any Credit Document (hereinafter referred to
         as "Other Taxes").

                  (c) No Deduction for Taxes. If a Credit Party shall be
         required to deduct or pay any Taxes or Other Taxes from or in respect
         of any sum payable under any Credit Document to the Administrative
         Agent or any Lender, such Credit Party shall also pay to the
         Administrative Agent (for the account of such Lender) or to such
         Lender, at the time interest is paid, such additional amount that such
         Lender specifies as necessary to preserve the after-tax yield (after
         factoring in all taxes, including taxes imposed on or measured by net
         income) such Lender would have received if such Taxes or Other Taxes
         had not been imposed.

                  (d) Indemnification. Each Credit Party agrees to indemnify the
         Administrative Agent and each Lender for (i) the full amount of Taxes
         and Other Taxes (including any Taxes or Other Taxes imposed or asserted
         by any jurisdiction on amounts payable under this Section 3.13(d)) paid
         by the Administrative Agent and such Lender, and (ii) any liability
         (including penalties, interest and expenses) arising therefrom or with
         respect thereto.

                  (e) Exemption from Taxes. In the case of any payment hereunder
         or under any other Credit Document by or on behalf of a Credit Party
         through an account or branch outside the United States, or on behalf of
         a Credit Party by a payor that is not a United States person, if such
         Credit Party determines that no taxes are payable in respect thereof,
         such Credit Party shall furnish, or shall cause such payor to furnish,
         to the Administrative Agent, an opinion of counsel reasonably
         acceptable to the Administrative Agent stating that such payment is
         exempt from Taxes. For purposes of this subsection (e), the terms
         "United States" and "United States person" shall have the meanings
         specified in Section 7701 of the Code.

                  (f) Foreign Lenders. Each Lender that is a foreign
         corporation, foreign partnership or foreign trust within the meaning of
         the Code shall deliver to the Administrative Agent, prior to receipt of
         any payment subject to withholding under the Code, two duly signed
         completed copies of either IRS Form W-8BEN or any successor thereto
         (relating to such Lender and entitling it to an exemption from, or
         reduction of, withholding tax on all payments to be made to such Lender
         by the Credit Parties pursuant to this Credit Agreement), as
         appropriate, or IRS Form W-8ECI or any successor thereto (relating to
         all payments to be made to such Lender by a Credit Party pursuant to
         this Credit Agreement) or such other evidence satisfactory to the
         Borrower and the Administrative Agent that such Lender is entitled to
         an exemption from, or reduction of, United States withholding tax.
         Thereafter and from time to time, each such Lender shall (i) promptly
         submit to the Administrative Agent such additional duly completed and
         signed copies of one of such forms (or such successor forms as shall be
         adopted from time to time by the relevant United States taxing
         authorities), as appropriate, as may reasonably be requested by the
         Borrower or the Administrative Agent and then be available under then
         current United States Laws and regulations to avoid,

                                       38
<PAGE>

         or such evidence as is satisfactory to the Borrower and the
         Administrative Agent of any available exemption from or reduction of,
         United States withholding taxes in respect of all payments to be made
         to such Lender by the Borrower pursuant to this Credit Agreement, (ii)
         promptly notify the Administrative Agent of any change in circumstances
         which would modify or render invalid any claimed exemption or
         reduction, and (iii) take such steps as shall not be materially
         disadvantageous to it, in the reasonable judgment of such Lender, and
         as may be reasonably necessary (including the re-designation of its
         Lending Office) to avoid any Requirement of Law that the Credit Parties
         make any deduction or withholding for taxes from amounts payable to
         such Lender. If the forms or other evidence provided by such Lender at
         the time such Lender first becomes a party to this Credit Agreement
         indicate a United States interest withholding tax rate in excess of
         zero, withholding tax at such rate shall be considered excluded from
         Taxes unless and until such Lender provides the appropriate forms
         certifying that a lesser rate applies, whereupon withholding tax at
         such lesser rate only shall be considered excluded from Taxes for
         periods governed by such forms; provided, however, that, if at the date
         of any assignment pursuant to which a Lender becomes a party to this
         Credit Agreement, the assignor Lender was entitled to payments under
         Section 3.13(a) in respect of United States withholding tax with
         respect to interest paid at such date, then, to such extent, the term
         Taxes shall include (in addition to withholding taxes that may be
         imposed in the future or other amounts otherwise includable in Taxes)
         United States withholding tax, if any, applicable with respect to the
         assignee Lender on such date. If such Lender fails to deliver the above
         forms or other evidence, then the Administrative Agent may withhold
         from any interest payment to such Lender an amount equal to the
         applicable withholding tax imposed by Sections 1441 and 1442 of the
         Code, without reduction. If any Governmental Authority asserts that the
         Administrative Agent did not properly withhold any tax or other amount
         from payments made in respect of such Lender, such Lender shall
         indemnify the Administrative Agent therefor, including all penalties
         and interest, any taxes imposed by any jurisdiction on the amounts
         payable to the Administrative Agent under this Section 3.13(f), and
         costs and expenses (including the reasonable fees and expenses of legal
         counsel) of the Administrative Agent. For any period with respect to
         which a Lender has failed to provide the Borrower with the above forms
         or other evidence (other than if such failure is due to a change in the
         applicable Law, or in the interpretation or application thereof,
         occurring after the date on which such form or other evidence
         originally was required to be provided or if such form or other
         evidence otherwise is not required), such Lender shall not be entitled
         to indemnification under subsection (a) or (c) of this Section 3.13
         with respect to Taxes imposed by the United States by reason of such
         failure; provided, however, that should a Lender become subject to
         Taxes because of its failure to deliver such form or other evidence
         required hereunder, the Borrower shall take such steps as such Lender
         shall reasonably request to assist such Lender in recovering such
         Taxes. The obligation of the Lenders under this Section 3.13(f) shall
         survive the payment of all Credit Party Obligations and the resignation
         or replacement of the Administrative Agent.

                  (g) Reimbursement. In the event that an additional payment is
         made under Section 3.13(a) or (c) for the account of any Lender and
         such Lender, in its reasonable judgment, determines that it has finally
         and irrevocably received or been granted a credit against or release or
         remission for, or repayment of, any tax paid or payable by it in
         respect of or calculated with reference to the deduction or withholding
         giving rise to such payment, such Lender shall, to the extent that it
         determines that it can do so without prejudice to the retention of the
         amount of such credit, relief, remission or repayment, pay to the
         Borrower such amount as such Lender shall, in its reasonable judgment,
         have determined to be attributable to such deduction or withholding and
         which will leave such Lender (after such payment) in no worse position
         than it would have been in if the Borrower had not been required to
         make such deduction or withholding. Nothing herein contained shall
         interfere with the right of a Lender to arrange its tax affairs in
         whatever manner it thinks fit nor oblige any Lender to claim any tax
         credit or to disclose any information relating to its tax affairs or
         any computations in respect thereof or require any Lender to do
         anything that would prejudice its ability to benefit from any other
         credits, reliefs, remissions or repayments to which it may be entitled.

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<PAGE>

         3.14 COMPENSATION / ALTERNATIVE RATE BREAKAGE AMOUNT.

         (a) Eurodollar Loans. Upon the written demand of any Lender, the Credit
Parties shall promptly compensate such Lender for and hold such Lender harmless
from any loss, cost or expense incurred by it as a result of:

                  (i) any continuation, conversion, payment or prepayment of any
         Eurodollar Loan on a day other than the last day of the Interest Period
         for such Eurodollar Loan (whether voluntary, mandatory, automatic, by
         reason of acceleration, or otherwise); or

                  (ii) any failure by a Borrower (for a reason other than the
         failure of such Lender to make a Eurodollar Loan) to prepay, borrow,
         continue or convert any Eurodollar Loan on the date or in the amount
         previously requested by such Borrower.

The amount each such Lender shall be compensated pursuant to this Section
3.14(a) shall include, without limitation, (A) any loss incurred by such Lender
in connection with the re-employment of funds prepaid, repaid, not borrowed or
paid, as the case may be, (B) any foreign exchange loss and (C) any reasonable
out-of-pocket expenses (including the reasonable fees and expenses of legal
counsel) incurred and reasonably attributable thereto.

         For purposes of calculating amounts payable by the Borrower to the
Lenders under this Section 3.14(a), (A) each Lender shall be deemed to have
funded each Eurodollar Loan made by it at the Eurodollar Rate for such Loan by a
matching deposit or other borrowing in the applicable offshore interbank market
for Dollars for a comparable amount and for a comparable period, whether or not
such Eurodollar Loan was in fact so funded and (B) each Lender shall calculate
such amounts in a manner that is customary for such Lender with respect to other
borrowers of such Lender.

         (b) Alternative Rate Breakage Costs. Upon demand of the Alternative
Rate Lender from time to time, the Borrower shall promptly compensate the
Alternative Rate Lender for and hold the Alternative Rate Lender harmless from
any Alternative Rate Breakage Amount incurred by it as a result of any of the
following, whether such events or failures are voluntary by the Borrower or are
mandatory, involuntary or automatic occurrences pursuant to the terms of this
Credit Agreement or otherwise:

                  (i) any continuation, conversion, payment or prepayment of any
         Loan (or portion thereof) during an Alternative Rate Period applicable
         to such Loan other than continuation to successive Interest Periods as
         permitted hereunder;

                  (ii) any failure to consummate an Alternative Rate Agreement,
         or to borrow the Loan described in the Alternative Rate Agreement, on
         the date notified by Borrower;

                  (iii) any Loan (or portion thereof) as to which an Alternative
         Rate Agreement is in effect not being continued to successive Interest
         Periods of like duration during the applicable Alternative Rate Period;

                  (iv) the occurrence of any event or condition described in
         Sections 3.9, 3.10, 3.11, 3.12 or 3.13 which causes a change in, or
         suspension or termination of, the Original Rate otherwise applicable to
         any Loan subject to an Alternative Rate Agreement; or

                  (v) the occurrence of any Event of Default which shall not
         have been waived.

         3.15 DETERMINATION AND SURVIVAL OF PROVISIONS.

         All determinations by the Administrative Agent or a Lender of amounts
owing under Sections 3.9 through 3.14, inclusive, shall, absent inaccuracies or
errors, be conclusive and binding on the parties hereto and all amounts owing
thereunder shall be due and payable within ten Business Days of demand therefor.
In determining such

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<PAGE>

amount, the Administrative Agent or such Lender may use any reasonable averaging
and attribution methods. Section 3.9 through 3.14, inclusive, shall survive the
termination of this Credit Agreement and the payment of all Credit Party
Obligations.

                                    SECTION 4

                                    GUARANTY

         4.1 GUARANTY OF PAYMENT.

         Subject to Section 4.7 below, each of the Guarantors hereby, jointly
and severally, unconditionally guarantees to each Lender, each Affiliate of a
Lender that enters into a Hedging Agreement and the Administrative Agent the
prompt payment of the Credit Party Obligations in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration or otherwise) and
the timely performance of all other obligations under the Credit Documents and
such Hedging Agreements. This Guaranty is a guaranty of payment and not of
collection and is a continuing guaranty and shall apply to all Credit Party
Obligations whenever arising.

         4.2 OBLIGATIONS UNCONDITIONAL.

         The obligations of the Guarantors hereunder are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Credit Documents or the Hedging Agreements, or any
other agreement or instrument referred to therein, to the fullest extent
permitted by applicable Law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor. Each Guarantor agrees that this Guaranty may be enforced by
the Lenders without the necessity at any time of resorting to or exhausting any
other security or collateral and without the necessity at any time of having
recourse to the Revolving Notes, the Term Notes or any other of the Credit
Documents or any collateral, if any, hereafter securing the Credit Party
Obligations or otherwise and each Guarantor hereby waives the right to require
the Lenders to proceed against the Borrower or any other Person (including a
co-guarantor) or to require the Lenders to pursue any other remedy or enforce
any other right. Each Guarantor further agrees that it shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other Guarantor of the Credit Party Obligations for amounts paid under this
Guaranty until such time as the Lenders (and any Affiliates of Lenders entering
into Hedging Agreements) have been paid in full and all Commitments under the
Credit Agreement have been terminated. Each Guarantor further agrees that
nothing contained herein shall prevent the Administrative Agent or the Lenders
from exercising remedies hereunder or under any of the other Credit Documents or
any of the Hedging Agreements, or foreclosing their security interest in or Lien
on the Collateral securing the Credit Party Obligations, or from exercising any
other rights available to them under this Credit Agreement, the Revolving Notes,
the Term Notes, any other of the Credit Documents, or any other instrument of
security, if any, and the exercise of any of the aforesaid rights and the
completion of any foreclosure proceedings shall not constitute a discharge of
any Guarantor's obligations hereunder; it being the purpose and intent of each
Guarantor that its obligations hereunder shall be absolute, independent and
unconditional under any and all circumstances. Neither any Guarantor's
obligations under this Guaranty nor any remedy for the enforcement thereof shall
be impaired, modified, changed or released in any manner whatsoever by an
impairment, modification, change, release or limitation of the liability of the
Borrower or by reason of the bankruptcy or insolvency of the Borrower. Each
Guarantor waives any and all notice of the creation, renewal, extension or
accrual of any of the Credit Party Obligations and notice of or proof of
reliance by the Administrative Agent or any Lender upon this Guaranty or
acceptance of this Guaranty. The Credit Party Obligations, and any of them,
shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon this Guaranty. All
dealings between the Borrower and the Guarantors, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon this
Guaranty. The Guarantors further agree to all rights of set-off as set forth in
Section 11.2 and agree that their obligations are secured pursuant to the
Collateral Documents.

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<PAGE>

         4.3 MODIFICATIONS.

         Each Guarantor agrees that (a) all or any part of the Collateral, if
any, now or hereafter held for the Credit Party Obligations, may be exchanged,
compromised or surrendered from time to time; (b) the Lenders shall not have any
obligation to protect, perfect, secure or insure any such security interests,
Liens or encumbrances now or hereafter held, if any, for the Credit Party
Obligations or the Properties subject thereto; (c) the time or place of payment
of the Credit Party Obligations may be changed or extended, in whole or in part,
to a time certain or otherwise, and may be renewed or accelerated, in whole or
in part; (d) the Borrower and any other party liable for payment under the
Credit Documents may be granted indulgences generally; (e) any of the provisions
of the Revolving Notes, the Term Notes or any of the other Credit Documents may
be modified, amended or waived; (f) any party (including any co-guarantor)
liable for the payment thereof may be granted indulgences or be released; and
(g) any deposit balance for the credit of the Borrower or any other party liable
for the payment of the Credit Party Obligations or liable upon any security
therefor may be released, in whole or in part, at, before or after the stated,
extended or accelerated maturity of the Credit Party Obligations, all without
notice to or further assent by such Guarantor, which shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal,
acceleration, modification, indulgence or release.

         4.4 WAIVER OF RIGHTS.

         Each Guarantor expressly waives to the fullest extent permitted by
applicable Law: (a) notice of acceptance of this Guaranty by the Administrative
Agent and the Lenders and of all Revolving Loans and Term Loans made to the
Borrower by the Lenders; (b) presentment and demand for payment or performance
of any of the Credit Party Obligations; (c) protest and notice of dishonor or of
default (except as specifically required in the Credit Agreement) with respect
to the Credit Party Obligations or with respect to any security therefor; (d)
notice of the Lenders obtaining, amending, substituting for, releasing, waiving
or modifying any security interest, Lien or encumbrance, if any, hereafter
securing the Credit Party Obligations, or the Lenders' subordinating,
compromising, discharging or releasing such security interests, Liens or
encumbrances, if any; and (e) all other notices to which such Guarantor might
otherwise be entitled.

         4.5 REINSTATEMENT.

         The obligations of the Guarantors under this Section 4 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Credit Party Obligations is
rescinded or must be otherwise restored by any holder of any of the Credit Party
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including the reasonable fees and expenses of legal counsel) incurred
by the Administrative Agent or such Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending against
any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar Law.

         4.6 REMEDIES.

         The Guarantors agree that, as between the Guarantors, on the one hand,
and the Administrative Agent and the Lenders, on the other hand, the Credit
Party Obligations may be declared to be forthwith due and payable as provided in
Section 9.2 (and shall be deemed to have become automatically due and payable in
the circumstances provided in Section 9.2) notwithstanding any stay, injunction
or other prohibition preventing such declaration (or preventing such Credit
Party Obligations from becoming automatically due and payable) as against any
other Person and that, in the event of such declaration (or such Credit Party
Obligations being deemed to have become automatically due and payable), such
Credit Party Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by the Guarantors.

                                       42
<PAGE>

         4.7 LIMITATION OF GUARANTY.

         Notwithstanding any provision to the contrary contained herein or in
any of the other Credit Documents, to the extent the obligations of any
Guarantor shall be adjudicated to be invalid or unenforceable for any reason
(including, without limitation, because of any applicable state or federal Law
relating to fraudulent conveyances or transfers) then the obligations of such
Guarantor hereunder shall be limited to the maximum amount that is permissible
under applicable Law (whether federal or state or otherwise and including,
without limitation, the Bankruptcy Code).

         4.8 RIGHTS OF CONTRIBUTION.

         The Credit Parties agree among themselves that, in connection with
payments made hereunder, each Credit Party shall have contribution rights
against the other Credit Parties as permitted under applicable Law. Such
contribution rights shall be subordinate and subject in right of payment to the
obligations of the Credit Parties under the Credit Documents and no Credit Party
shall exercise such rights of contribution until all Credit Party Obligations
have been paid in full and the Commitments terminated.

                                    SECTION 5

                              CONDITIONS PRECEDENT

         5.1 CLOSING CONDITIONS.

         The obligation of the Lenders to enter into this Credit Agreement and
to make the initial Revolving Loans and to make the Term Loans is subject to
satisfaction of the following conditions:

                  (a) Executed Credit Documents. Receipt by the Administrative
         Agent of duly executed copies of: (i) this Credit Agreement; (ii) the
         Revolving Notes; (iii) the Term Notes, (iv) the Collateral Documents,
         and (v) all other Credit Documents, each in form and substance
         reasonably acceptable to the Lenders in their sole discretion.

                  (b) Authority Documents. Receipt by the Administrative Agent
         of the following with respect to each Credit Party:

                           (i) Organizational Documents. Copies of the
                  Organizational Documents of such Credit Party certified to be
                  true and complete as of a recent date by the appropriate
                  Governmental Authority of the state or other jurisdiction of
                  its formation (to the extent filed with such Governmental
                  Authority) and certified by a secretary or assistant secretary
                  (or the equivalent) of such Credit Party to be true and
                  correct as of the Closing Date.

                           (ii) Resolutions. Copies of resolutions of the Board
                  of Directors or other governing body of such Credit Party
                  approving and adopting this Credit Agreement and the other
                  Credit Documents to which it is a party, the transactions
                  contemplated herein and therein and authorizing execution and
                  delivery hereof and thereof, certified by a secretary or
                  assistant secretary (or the equivalent) of such Credit Party
                  to be true and correct and in full force and effect as of the
                  Closing Date.

                           (iii) Good Standing. Copies of certificates of good
                  standing, existence or its equivalent with respect to such
                  Credit Party certified as of a recent date by the appropriate
                  Governmental Authority of the state or other jurisdiction of
                  its formation.

                           (iv) Incumbency. An incumbency certificate of such
                  Credit Party certified by a secretary or assistant secretary
                  (or the equivalent) of such Credit Party to be true and
                  correct as of the Closing Date.

                                       43
<PAGE>

                  (c) Opinions of Counsel. Receipt by the Administrative Agent
         of opinions of counsel from outside counsel to the Credit Parties, in
         form and substance acceptable to the Administrative Agent, addressed to
         the Administrative Agent and the Lenders and dated as of the Closing
         Date, including, without limitation, authority, enforceability and lien
         issues and an opinion of Tomotsune and Kimura on behalf of OCA Japan
         Co., Ltd.

                  (d) Financial Statements. Receipt by the Administrative Agent
         of (i) the financial statements referenced in Section 6.11(a), (ii) the
         Projections and (iii) such additional financial statements, information
         and projections regarding the Credit Parties and their Subsidiaries as
         the Administrative Agent may request, in each case in form and
         substance reasonably satisfactory to the Administrative Agent.

                  (e) Due Diligence. The Administrative Agent and the Lenders
         shall have completed all due diligence with respect to the Credit
         Parties, their Subsidiaries and the Affiliated Practices, and the
         transactions contemplated by this Credit Agreement and the other Credit
         Documents, in scope and determination reasonably satisfactory to the
         Administrative Agent and the Lenders.

                  (f) Material Adverse Effect. Since December 31, 2001, there
         shall have been no development or event relating to or affecting a
         Credit Party or any of its Subsidiaries that has had or could be
         reasonably expected to have a Material Adverse Effect and no material
         adverse change has occurred in the business, assets, liabilities
         (actual or contingent), operations, condition (financial or otherwise)
         or prospects of the Credit Parties and their Subsidiaries taken as a
         whole or in the facts and information regarding the Credit Parties and
         their Subsidiaries as represented to date.

                  (g) Absence of Market Disruption. There shall not have
         occurred a material adverse change in or material disruption of
         conditions in the financial, banking or capital markets which could
         reasonably be expected to have a material adverse effect on the
         syndication of the Credit Agreement.

                  (h) Litigation. There shall not exist any material order,
         decree, judgment, ruling or injunction or any material pending or
         threatened action, suit, investigation or proceeding against the Credit
         Parties and their Subsidiaries taken as a whole or, to the knowledge of
         any Credit Party after due inquiry, any Affiliated Practice (other than
         in each case as disclosed in the Borrower's public filings with the
         Securities and Exchange Commission or as disclosed in writing to the
         Lenders).

                  (i) Consents. Receipt by the Administrative Agent of evidence
         that all necessary governmental, shareholder and third party consents
         and approvals, if any, with respect to this Credit Agreement and the
         Credit Documents and the transactions contemplated herein and therein
         have been received and no condition or Requirement of Law exists which
         would reasonably be likely to restrain, prevent or impose any material
         adverse conditions on the transactions contemplated hereby and by the
         other Credit Documents.

                  (j) Officer's Certificates. Receipt by the Administrative
         Agent of a certificate or certificates executed by an Authorized
         Officer of the Borrower as of the Closing Date stating that (i) the
         Credit Parties and each of their Subsidiaries are in compliance in all
         material respects with all existing material financial obligations and
         all material Requirements of Law, (ii) there does not exist any
         material order, decree, judgment, ruling or injunction or any material
         pending or threatened action, suit, investigation or proceeding against
         the Credit Parties and their Subsidiaries taken as a whole or, to the
         knowledge of any Credit Party, any Affiliated Practice (other than in
         each case as disclosed in the Borrower's public filings with the
         Securities and Exchange Commission or as disclosed in writing to the
         Lenders), (iii) the financial statements and information delivered to
         the Administrative Agent on or before the Closing Date were prepared in
         good faith and in accordance with GAAP and (iv) immediately after
         giving effect to this Credit Agreement, the other Credit Documents and
         all the transactions contemplated herein or therein to occur on such
         date, (A) each Credit Party is Solvent and the Credit Parties and their
         Subsidiaries taken as a whole are Solvent, (B) no Default or Event of
         Default exists, (C) all representations and warranties contained herein
         and in the other Credit Documents are true and correct in all material
         respects, (D) since December 31, 2001, there has been no development or
         event relating to or affecting a Credit Party or any of its
         Subsidiaries that has had or

                                       44
<PAGE>

         could be reasonably expected to have a Material Adverse Effect and
         there exists no event, condition or state of facts that could result in
         or reasonably be expected to result in a Material Adverse Change and
         (E) the Credit Parties are in compliance with each of the financial
         covenants set forth in Section 8.14 as of (1) September 30, 2002 and
         (2) the Closing Date, on a Pro Forma Basis, after giving effect to the
         transactions contemplated by the Credit Documents, in each case as
         demonstrated in Covenant Compliance Worksheets attached to such
         certificate.

                  (k) Collateral. Receipt by the Administrative Agent of the
         following (in form and substance satisfactory to the Administrative
         Agent):

                           (i) searches of Uniform Commercial Code filings in
                  the jurisdiction of the state of organization of each Credit
                  Party (and jurisdiction of chief executive office for those
                  Credit Parties organized prior to January 1, 2002), copies of
                  the financing statements on file in such jurisdictions and
                  evidence that no Liens exist with respect to the Collateral
                  other than Permitted Liens, including, without limitation,
                  termination of any existing UCC financing statements;

                           (ii) duly executed UCC financing statements for each
                  appropriate jurisdiction as is necessary, in the
                  Administrative Agent's reasonable discretion, to perfect the
                  Lenders' security interest in the Collateral;

                           (iii) receipt by the Collateral Agent of (A) all
                  stock certificates and Intercompany Notes evidencing the
                  Collateral pledged to the Lenders pursuant to the Pledge and
                  Security Agreement and (B) duly executed allonges and in blank
                  undated stock powers with respect to such Intercompany Notes
                  and stock certificates; and

                           (iv) such other collateral documentation as may be
                  required by the Administrative Agent in its sole reasonable
                  discretion in order to perfect and protect the Lenders'
                  security interest in the Collateral.

                  (l) Payoff Letters. Receipt by the Administrative Agent of
         payoff letters with respect to the Existing Credit Agreement and the
         Bridge Credit Agreement, in form and substance reasonably satisfactory
         to the Administrative Agent.

                  (m) Fees and Expenses. Unless waived by the Person entitled
         thereto, payment by the Credit Parties of all fees and expenses owed by
         them to the Administrative Agent, the Arranger and the Lenders on or
         before the Closing Date, including, without limitation, those fees as
         set forth in the Fee Letter.

                  (n) Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender.

         5.2 CONDITIONS TO ALL EXTENSIONS OF CREDIT.

         In addition to the conditions precedent stated elsewhere herein, the
Lenders shall not be obligated to make Revolving Loans and the L/C Issuer shall
not be obligated to issue Letters of Credit unless:

                  (a) Notice. The Borrower shall have delivered (i) in the case
         of any new Revolving Loan, a Notice of Borrowing, duly executed and
         completed, by the time specified in Section 2.1 and (ii) in the case of
         any Letter of Credit, a Letter of Credit Application, duly executed and
         completed, by the time specified in Section 2.2.

                  (b) Representations and Warranties. The representations and
         warranties made by the Credit Parties in any Credit Document are true
         and correct in all material respects at and as if made as of such date
         except to the extent they expressly relate to an earlier date.

                                       45
<PAGE>

                  (c) No Default. No Default or Event of Default shall exist and
         be continuing either prior to or after giving effect to such Credit
         Extension.

                  (d) Availability. Immediately after giving effect to such
         Credit Extension (and the application of the proceeds thereof), (i) the
         sum of the aggregate principal amount of outstanding Revolving Loans
         plus the aggregate principal amount of outstanding L/C Obligations
         shall not exceed the Revolving Committed Amount, (ii) with respect to
         each individual Lender, the outstanding principal amount of such
         Lender's Revolving Loans and L/C Obligations shall not exceed such
         Lender's Pro Rata Share of the Revolving Committed Amount and (iii) the
         aggregate amount of L/C Obligations outstanding shall not exceed the
         Letter of Credit Sublimit.

                  (e) Pro Forma Compliance with Financial Covenants. Immediately
         after giving effect to such Credit Extension (and the application of
         the proceeds thereof), the Credit Parties will be in compliance, on a
         Pro Forma Basis, with each of the financial covenants set forth in
         Section 8.14, as set forth in the Notice of Borrowing.

The delivery of each Notice of Borrowing or Letter of Credit Application shall
constitute a representation and warranty by the Borrower of the correctness of
the matters specified in subsections (b), (c), (d) and (e) above.

                                    SECTION 6

                         REPRESENTATIONS AND WARRANTIES

         To induce the Agents and the Lenders to enter into this Credit
Agreement and to induce the Lenders to provide the Credit Extensions, each of
the Credit Parties represents and warrants to the Agents and the Lenders as
follows:

         6.1 CORPORATE ORGANIZATION AND POWER.

         Each of the Credit Parties and their Subsidiaries (other than any De
Minimis Subsidiary) (a) is a corporation duly organized, validly existing and in
good standing under the Laws of the jurisdiction of its incorporation, (b) has
the full corporate power and authority to execute, deliver and perform the
Credit Documents to which it is or will be a party, to own and hold its property
and to engage in its business as presently conducted, and (c) is duly qualified
to do business as a foreign corporation and is in good standing in each
jurisdiction where the nature of its business or the ownership of its properties
requires it to be so qualified, except where the failure to be in good standing
or to be so qualified would not, individually or in the aggregate, be reasonably
likely to have a Material Adverse Effect.

         6.2 AUTHORIZATION; ENFORCEABILITY.

         Each of the Credit Parties and their Subsidiaries has taken all
necessary corporate action to execute, deliver and perform each of the Credit
Documents to which it is a party and has validly executed and delivered each of
the Credit Documents to which it is a party. Each of the Credit Documents
constitute the legal, valid and binding obligation of each of the Credit Parties
and their Subsidiaries that is a party thereto, enforceable against it in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar Laws
affecting creditors' rights generally, by general equitable principles or by
principles of good faith and fair dealing. To ensure the legality, validity,
enforceability or admissibility in evidence of each such Credit Document in such
jurisdiction, it is not necessary that any such Credit Document or any other
document be filed or recorded with any court or other authority of such
jurisdiction or that any stamp or similar tax be paid on or in respect of any
such Credit Document.

         6.3 NO VIOLATION.

         The execution, delivery and performance by each of the Credit Parties
and their Subsidiaries of this Credit Agreement and each of the other Credit
Documents to which it is or will be a party, and compliance by it with the

                                       46
<PAGE>

terms hereof and thereof, do not and will not (a) violate any provision of its
Organizational Documents or contravene any other Requirement of Law applicable
to it, (b) conflict with, result in a breach of or constitute (with notice,
lapse of time or both) a default under any indenture, agreement or other
instrument to which it is a party, by which it or any of its properties is bound
or to which it is subject, (c) result in a Limitation on any Licenses applicable
to the business, operations or properties of a Credit Party or any of its
Subsidiaries or adversely affect the ability of a Credit Party or any of its
Subsidiaries to participate in any Third Party Payor Arrangement, or (d) except
for the Liens granted in favor of the Collateral Agent pursuant to the Pledge
and Security Agreement, result in or require the creation or imposition of any
Lien upon any of its properties or assets. No Subsidiary of the Borrower is a
party to any agreement or instrument or otherwise subject to any restriction or
encumbrance that restricts or limits its ability to make dividend payments or
other distributions in respect of its Capital Stock, to repay Indebtedness owed
to the Borrower or any other Subsidiary, to make loans or advances to the
Borrower or any other Subsidiary, or to transfer any of its assets or properties
to the Borrower or any other Subsidiary, in each case other than such
restrictions or encumbrances existing under or by reason of the Credit Documents
or applicable Law or as expressly permitted under Section 8.10.

         6.4 GOVERNMENTAL AND THIRD-PARTY AUTHORIZATION; PERMITS.

                  (a) Consents. No consent, approval, authorization or other
         action by, notice to, or registration or filing with, any Governmental
         Authority or other Person is or will be required as a condition to or
         otherwise in connection with the due execution, delivery and
         performance by each of the Credit Parties and their Subsidiaries of
         this Credit Agreement or any of the other Credit Documents to which it
         is or will be a party or the legality, validity or enforceability
         hereof or thereof.

                  (b) Permits/Licenses. Each of the Credit Parties and their
         Subsidiaries and, to the knowledge of the Credit Parties, each
         Affiliated Practice, has, and is in good standing with respect to, all
         governmental approvals, permits and other Licenses and (to the extent
         applicable) all Reimbursement Approvals necessary to conduct its
         business as presently conducted and to own or lease and operate its
         properties, except for those the failure to obtain which would not be
         reasonably likely, individually or in the aggregate, to have a Material
         Adverse Effect. There is no pending or, to the knowledge of the Credit
         Parties, threatened Limitation of any such approval, permit or other
         License or Reimbursement Approval of any Credit Party or any Subsidiary
         or, to the knowledge of the Credit Parties, any Affiliated Practice,
         except for such Limitations as would not be reasonably likely,
         individually or in the aggregate, to have a Material Adverse Effect. No
         Medicare or Medicaid certifications are required for the operation of
         the business of any Credit Party or any of its Subsidiaries, and
         neither any Credit Party nor any Subsidiary is required to have entered
         into any Medicare or Medicaid provider agreement for the operation of
         its business. To the knowledge of the Credit Parties, no Affiliated
         Practice is required to have entered into any Medicare provider
         agreement for the operation of its business. To the knowledge of the
         Credit Parties, each Affiliated Practice that participates in Medicaid
         is in good standing with respect to such participation and its provider
         agreement is in full force and effect.

         6.5 LITIGATION.

         No litigation, governmental investigation, injunction, order, claim,
bankruptcy or insolvency affecting or relating to any Credit Party or any of its
Subsidiaries, any such Person's properties or revenues, any Service Agreement to
which such Person is a party is pending or, to the best knowledge of the Credit
Parties, threatened, at Law, in equity, in arbitration or otherwise, (a) by or
against any Credit Party or any of its Subsidiaries or against any of its or
their respective properties or revenues that has not been settled, dismissed,
vacated, discharged or terminated, which, if adversely determined, has had or
would likely have a Material Adverse Effect or (b) with respect to this Credit
Agreement or any other Credit Document, and no judgments are outstanding which
has had or would likely have a Material Adverse Effect.

                                       47
<PAGE>

         6.6 TAXES.

         Each of the Credit Parties and their Subsidiaries has timely filed all
federal, state and local tax returns and reports required to be filed by it and
has paid all taxes, assessments, fees and other charges levied upon it or upon
its properties that are shown thereon as due and payable, other than those that
are being contested in good faith and by proper proceedings and for which
adequate reserves have been established in accordance with GAAP. Such returns
and reports accurately reflect in all material respects all liability for taxes
of each such Credit Party and such Subsidiary for the periods covered thereby.
Except as set forth on Schedule 6.6, there is no ongoing audit or examination
or, to the knowledge of the Credit Parties, other investigation by any
Governmental Authority of the tax liability of any Credit Party or any of its
Subsidiaries, and there is no unresolved claim by any Governmental Authority
concerning the tax liability of any Credit Party or any of its Subsidiaries for
any period for which tax returns have been or were required to have been filed,
other than claims for which adequate reserves have been established in
accordance with GAAP. Neither any Credit Party nor any of its Subsidiaries has
waived or extended or has been requested to waive or extend the statute of
limitations relating to the payment of any taxes.

         6.7 SUBSIDIARIES.

         Set forth on Schedule 6.7, as of the Closing Date and as of each
quarterly update pursuant to Section 7.2(f), is a list of (a) all of the Credit
Parties and the Subsidiaries of the Credit Parties (including De Minimis
Subsidiaries other than De Minimis Subsidiaries holding assets with an aggregate
book value less than $1,000 and which generate no revenues), (b) a
classification of which such Subsidiaries are De Minimis Subsidiaries and (c) as
to each Subsidiary, the owners of the Capital Stock of such Subsidiary and the
percentage of the outstanding Capital Stock of such Subsidiary that such
ownership interest represents. Except for the shares of Capital Stock expressly
indicated on Schedule 6.7, there are no shares of Capital Stock, warrants,
rights, options or other equity securities of any Subsidiary of the Credit
Parties (other than De Minimis Subsidiaries) outstanding or reserved for any
purpose as of the Closing Date and as of each quarterly update pursuant to
Section 7.2(f). All outstanding shares of Capital Stock of each Subsidiary of
any Credit Party (other than De Minimis Subsidiaries) are duly and validly
issued, fully paid and nonassessable. Except as set forth on Schedule 6.7, as of
the Closing Date, neither any Credit Party nor any Subsidiary is engaged in any
joint venture, partnership or similar arrangement with any other Person.

         6.8 FULL DISCLOSURE.

         All factual information heretofore or contemporaneously furnished to
any Agent or any Lender in writing by or on behalf of any Credit Party or any of
its Subsidiaries for purposes of or in connection with this Credit Agreement and
the transactions contemplated hereby is, and all other such factual information
hereafter furnished to any Agent or any Lender in writing by or on behalf of any
Credit Party or any of its Subsidiaries will be, true and accurate in all
material respects on the date as of which such information is dated or certified
(or, if such information has been amended or supplemented, on the date as of
which any such amendment or supplement is dated or certified) and not made
incomplete by omitting to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which such information
was provided, not misleading.

         6.9 MARGIN REGULATIONS.

         Neither any Credit Party nor any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose of purchasing or carrying Margin Stock. No proceeds of
the Loans will be used, directly or indirectly, to purchase or carry any Margin
Stock, to extend credit for such purpose or for any other purpose that would
violate or be inconsistent with Regulations T, U or X or any provision of the
Exchange Act.

         6.10 NO MATERIAL ADVERSE CHANGE.

         There has been no Material Adverse Change since December 31, 2001, and
there exists no event, condition or state of facts that has had or would likely
result in a Material Adverse Change.

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<PAGE>

         6.11 FINANCIAL MATTERS.

                  (a) Prior Financial Statements. The Borrower has heretofore
         furnished to the Administrative Agent copies of (i) the audited
         consolidated balance sheets of the Credit Parties and their
         Subsidiaries as of December 31, 2000 and 2001, and the related
         statements of income, cash flows and stockholders' equity for the
         fiscal years then ended, together with the opinion of Ernst & Young LLP
         thereon, and (ii) the unaudited consolidated balance sheet of the
         Credit Parties and their Subsidiaries as of September 30, 2002, and the
         related statements of income, cash flows and stockholders' equity for
         the nine-month period then ended. Such financial statements have been
         prepared in accordance with GAAP (subject, with respect to the
         unaudited financial statements, to the absence of footnotes required by
         GAAP and to normal year-end adjustments) and present fairly the
         financial condition of the Credit Parties and their Subsidiaries on a
         consolidated basis as of the respective dates thereof and the
         consolidated results of operations of the Credit Parties and their
         Subsidiaries for the respective periods then ended. Except as fully
         reflected in the most recent financial statements referred to above and
         the footnotes thereto, there are no material liabilities or obligations
         with respect to the Credit Parties and their Subsidiaries of any nature
         whatsoever (whether absolute, contingent or otherwise and whether or
         not due).

                  (b) Projections. The Borrower has prepared, and has heretofore
         furnished to the Administrative Agent a copy of, annual projected
         balance sheets and statements of income and cash flows of the Credit
         Parties and their Subsidiaries (presented on a quarterly basis) for the
         period through December 31, 2005, giving effect to the consummation of
         the transactions contemplated by this Credit Agreement, the initial
         extensions of credit hereunder, and the payment of transaction fees and
         expenses related to the foregoing (the "Projections"). In the opinion
         of management of the Borrower, the assumptions used in the preparation
         of the Projections were fair and reasonable when made and continue to
         be fair and reasonable as of the date hereof. The Projections have been
         prepared in good faith by the executive and financial personnel of the
         Borrower and represent a reasonable estimate of the future performance
         and financial condition of the Credit Parties and their Subsidiaries,
         subject to the uncertainties and approximations inherent in any
         projections.

                  (c) Ongoing Financial Statements. The financial statements
         provided to date pursuant to Section 7.1 have been prepared in
         accordance with GAAP and present fairly the consolidated and
         consolidating financial condition, results of operations and cash flows
         of the Credit Parties and their subsidiaries.

                  (d) Solvency. Each of the Credit Parties and their
         Subsidiaries (other than De Minimis Subsidiaries) is, prior to and
         after giving effect to the consummation of the transactions
         contemplated hereby, Solvent.

         6.12 OWNERSHIP OF PROPERTIES.

         Each of the Credit Parties and their Subsidiaries (other than De
Minimis Subsidiaries) (a) has good and marketable title to all real property
owned by it, (b) holds interests as lessee under valid leases in full force and
effect with respect to all material leased real and personal property used in
connection with its business, (c) possesses or has rights to use licenses,
patents, copyrights, trademarks, service marks, trade names and other assets
sufficient to enable it to continue to conduct its business substantially as
heretofore conducted and without any material conflict with the rights of
others, and (d) has good title to all of its other properties and assets
reflected in the most recent financial statements referred to in Section 6.11(a)
(except as sold or otherwise disposed of since the date thereof in compliance
with Section 8.4), in each case under clauses (a), (b), (c) and (d) above, free
and clear of all Liens other than Permitted Liens.

         6.13 ERISA.

                  (a) Compliance. Each of the Credit Parties and its
         Subsidiaries and its ERISA Affiliates is in compliance in all material
         respects with the applicable provisions of ERISA, and each Plan is and
         has been

                                       49
<PAGE>

         administered in compliance in all material respects with all applicable
         Requirements of Law, including, without limitation, the applicable
         provisions of ERISA and the Code. No ERISA Event (i) has occurred
         within the five-year period prior to the Closing Date, (ii) has
         occurred and is continuing, or (iii) to the knowledge of the Credit
         Parties, is reasonably expected to occur with respect to any Plan. No
         Plan has any Unfunded Pension Liability as of the most recent annual
         valuation date applicable thereto, and neither any Credit Party nor any
         Subsidiary or ERISA Affiliate has engaged in a transaction that could
         be subject to Section 4069 or 4212(c) of ERISA.

                  (b) Withdrawal. Neither any Credit Party nor any Subsidiary or
         ERISA Affiliate has had a complete or partial withdrawal from any
         Multiemployer Plan, and neither any Credit Party nor any Subsidiary or
         ERISA Affiliate would become subject to any liability under ERISA if
         any Credit Party or any Subsidiary or ERISA Affiliate were to withdraw
         completely from all Multiemployer Plans as of the most recent valuation
         date. No Multiemployer Plan is in "reorganization" or is "insolvent"
         within the meaning of such terms under ERISA.

                  (c) Present Value. The actuarial present value of all "benefit
         liabilities" (within the meaning of Section 4001 of ERISA) under each
         Single Employer Plan (determined utilizing the actuarial assumptions
         used to fund such Plans), whether or not vested, did not, as of the
         last annual valuation date prior to the date on which this
         representation is made or deemed made, exceed the fair market value as
         of such date of the assets of such Plan allocable to such accrued
         liabilities.

                  (d) Post-Retirement Benefit Obligations. Neither any Credit
         Party nor any Subsidiary or ERISA Affiliate has any material liability
         with respect to "expected post-retirement benefit obligations" within
         the meaning of Financial Accounting Standards Board Statement No. 106.

                  (e) Welfare Plans. Each Plan which is a welfare plan (as
         defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA
         and Section 4980B of the Code apply has been administered in material
         compliance with such sections.

         6.14 ENVIRONMENTAL MATTERS.

                  (a) Hazardous Substances. No Hazardous Substances are or have
         been generated, used, located, released, treated, disposed of or stored
         by any Credit Party or any of its Subsidiaries or, to the knowledge of
         the Credit Parties, by any other Person (including any predecessor in
         interest) or otherwise, in, on or under any portion of any real
         property, leased or owned, of any Credit Party or any of its
         Subsidiaries, except in material compliance with all applicable
         Environmental Laws, and no portion of any such real property or, to the
         knowledge of the Credit Parties, any other real property at any time
         leased, owned or operated by any Credit Party or any of its
         Subsidiaries, has been contaminated by any Hazardous Substance; and to
         the knowledge of the Credit Parties, no portion of any real property,
         leased or owned, of any Credit Party or any of its Subsidiaries has
         been or is presently the subject of an environmental audit, assessment
         or remedial action required by any Governmental Authority.

                  (b) Use of Properties. No portion of any real property, leased
         or owned, of any Credit Party or any of its Subsidiaries has been used
         by such Credit Party or any of its Subsidiaries or, to the knowledge of
         the Credit Parties, by any other Person, as or for a mine, a landfill,
         a dump or other disposal facility, a gasoline service station, or
         (other than for petroleum substances stored in the ordinary course of
         business) a petroleum products storage facility; to the knowledge of
         the Credit Parties, no portion of such real property or any other real
         property at any time leased, owned or operated by any Credit Party or
         any of its Subsidiaries has, pursuant to any Environmental Law, been
         placed on the "National Priorities List" or "CERCLIS List" (or any
         similar federal, state or local list) of sites subject to possible
         environmental problems; and to the knowledge of the Credit Parties,
         there are not and have never been any underground storage tanks
         situated on any real property, leased or owned, of any Credit Party or
         any of its Subsidiaries.

                                       50
<PAGE>

                  (c) Compliance. All activities and operations of the Credit
         Parties and their Subsidiaries are in compliance with the requirements
         of all applicable Environmental Laws, except to the extent the failure
         so to comply, individually or in the aggregate, would not have or be
         reasonably likely to have a Material Adverse Effect. Each of the Credit
         Parties and their Subsidiaries has obtained all licenses and permits
         under Environmental Laws necessary to its respective operations; all
         such licenses and permits are being maintained in good standing; and
         each of the Credit Parties and their Subsidiaries is in compliance with
         all terms and conditions of such licenses and permits, except for such
         licenses and permits the failure to obtain, maintain or comply with
         which would not have or be reasonably likely, individually or in the
         aggregate, to have a Material Adverse Effect. Neither any Credit Party
         nor any of its Subsidiaries is involved in any suit, action or
         proceeding, or has received any notice, complaint or other request for
         information from any Governmental Authority or other Person, with
         respect to any actual or alleged Environmental Claims that, if
         adversely determined, would have or be reasonably likely to have,
         individually or in the aggregate, a Material Adverse Effect; and, to
         the knowledge of the Credit Parties, there are no threatened actions,
         suits, proceedings or investigations with respect to any such
         Environmental Claims, nor any basis therefor.

         6.15 COMPLIANCE WITH REQUIREMENTS OF LAWS; HIPAA.

         Each of the Credit Parties and their Subsidiaries and, to the knowledge
of the Credit Parties, each Affiliated Practice, (a) has timely filed all
material reports, documents and other materials required to be filed by it under
all applicable Requirements of Law with any Governmental Authority and all such
filings are true and complete in all material respects, (b) has retained all
material records and documents required to be retained by it under all
applicable Requirements of Law, and (c) is otherwise in compliance with all
applicable Requirements of Law in respect of the conduct of its business and the
ownership and operation of its properties, except for such Requirements of Law
the failure to comply with which, individually or in the aggregate, would not
have or be reasonably likely to have a Material Adverse Effect. None of the
Credit Parties and their Subsidiaries is a "covered entity" as defined in the
Privacy Standards.

         6.16 REGULATED INDUSTRIES.

         Neither any Credit Party nor any of its Subsidiaries is (a) an
"investment company," a company "controlled" by an "investment company," or an
"investment advisor," within the meaning of the Investment Company Act of 1940,
as amended or (b) a "holding company," a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

         6.17 INSURANCE.

         The assets, properties and business of the Credit Parties and their
Subsidiaries are insured against such hazards and liabilities, under such
coverages and in such amounts, as are customarily maintained by prudent
companies similarly situated and under policies issued by insurers of recognized
responsibility (or through adequately funded self-insurance with respect to the
types of insurance coverage set forth on Schedule 6.17).

         6.18 MATERIAL CONTRACTS.

         Set forth on Schedule 6.18 is a list, as of the Closing Date, of each
"material contract" (within the meaning of Item 601(b)(10) of Regulation S-K
under the Exchange Act) to which any Credit Party or any of its Subsidiaries is
a party, by which any of them or their respective properties is bound or to
which any of them is subject (collectively, the "Material Contracts"), and also
indicates the parties, subject matter and term thereof. As of the Closing Date,
(a) each Material Contract is in full force and effect and is enforceable by the
Credit Party or the Subsidiary that is a party thereto in accordance with its
terms and (b) neither any Credit Party nor any of its Subsidiaries (nor, to the
knowledge of the Credit Parties, any other party thereto) is in breach of or
default under any Material Contract in any material respect or has given notice
of termination or cancellation of any Material Contract.

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<PAGE>

         6.19 LABOR RELATIONS.

         Neither any Credit Party nor any of its Subsidiaries is engaged in any
unfair labor practice within the meaning of the National Labor Relations Act of
1947, as amended. There is (a) no unfair labor practice complaint before the
National Labor Relations Board, or grievance or arbitration proceeding arising
out of or under any collective bargaining agreement, pending or, to the
knowledge of the Credit Parties, threatened, against any Credit Party or any of
its Subsidiaries, (b) no strike, lock-out, slowdown, stoppage, walkout or other
labor dispute pending or, to the knowledge of the Credit Parties, threatened
against any Credit Party or any of its Subsidiaries, and (c) to the knowledge of
the Credit Parties, no petition for certification or union election or union
organizing activities taking place with respect to any Credit Party or any of
its Subsidiaries.

         6.20 SERVICE AGREEMENTS.

         To the knowledge of the Credit Parties after reasonable consultation
with legal counsel, no Service Agreement to which any Credit Party or any of its
Subsidiaries is a party, nor any of the transactions contemplated thereunder,
violates any applicable Requirement of Law (a) relating to the eligibility of an
Affiliated Practice to enter into or participate in any Third Party Payor
Arrangement or otherwise applicable to such Affiliated Practice as a result of
such participation, (b) relating to any License or Reimbursement Approval of an
Affiliated Practice required in connection with any Third Party Payor
Arrangement in which it participates, (c) relating to the practice of
orthodontics and dentistry or the sharing of fees in connection therewith, or
(d) relating to the enforceability of any provision of any Service Agreement
against any Affiliated Practice by the Borrower or any Subsidiary, including,
without limitation, the obligation of any Affiliated Practice to pay all
compensation and fees to which any Credit Party or any Subsidiary is entitled
under any Service Agreement, except in each case under clauses (a), (b), (c) and
(d) above for such violations as would not, individually or in the aggregate,
have or be reasonably likely to have a Material Adverse Effect. No Service
Agreement to which any Credit Party or any of its Subsidiaries is a party, nor
any of the transactions contemplated thereunder, violates any applicable Third
Party Payor Arrangement to which any Affiliated Practice is a party, except for
such violations as would not, individually or in the aggregate, have or be
reasonably likely to have a Material Adverse Effect. With respect to the Service
Agreements, (i) each Service Agreement is in full force and effect and is
enforceable by the Credit Party or the Subsidiary that is a party thereto in
accordance with its terms and (ii) neither any Credit Party nor any of its
Subsidiaries (nor, to the knowledge of the Credit Parties, any other party
thereto) is in breach of or default under any Service Agreement in any material
respect or has given notice of termination or cancellation of any Service
Agreement, except in each case under clauses (i) and (ii) above to the extent
the failure to be in compliance with such representations would not have or be
reasonably likely to have, individually or in the aggregate, a Material Adverse
Effect.

         6.21 REIMBURSEMENT.

         The accounts receivable of the Credit Parties and their Subsidiaries
and (to the knowledge of the Credit Parties) each Affiliated Practice have been
properly adjusted in all material respects to reflect the reimbursement policies
under all applicable Requirements of Law and other Third Party Payor
Arrangements to which such Credit Party, such Subsidiary or any Affiliated
Practice is subject, and do not exceed in any material respect amounts such
Credit Party or such Subsidiary or Affiliated Practice is entitled to receive
under any capitation arrangement, fee schedule, discount formula, cost-based
reimbursement or other adjustment or limitation to usual charges. All billings
by each of the Credit Parties and their Subsidiaries and (to the knowledge of
the Credit Parties) each Affiliated Practice pursuant to Third Party Payor
Arrangements have been made in compliance with all applicable Requirements of
Law, except where the failure to comply would not, individually or in the
aggregate, have or be reasonably likely to have a Material Adverse Effect. There
has been no intentional or material overbilling or overcollection pursuant to
any Third Party Payor Arrangements by any Credit Party, other than as created by
routine adjustments and disallowances made in the ordinary course of business by
the payors with respect to such billings.

         6.22 FRAUD AND ABUSE.

         Neither any Credit Party nor any of its Subsidiaries has engaged (nor,
to the knowledge of the Credit Parties, has any Affiliated Practice or any
dental-shareholder, orthodontist-shareholder or employee of any Affiliated

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Practice engaged) in any activities that are prohibited under 42 U.S.C. Section
1320a-7b, 42 U.S.C. Section 1395nn, or the regulations promulgated thereunder,
or related Requirements of Law, or under any similar state Law or regulation, or
that are prohibited by rules of professional conduct, including, without
limitation, the following: (a) knowingly and willfully making or causing to be
made a false statement or misrepresentation of a material fact in any
application for any benefit or payment; (b) knowingly and willfully making or
causing to be made any false statement or misrepresentation of a material fact
for use in determining rights to any benefit or payment; (c) failing to disclose
knowledge by a claimant of the occurrence of any event affecting the initial or
continued right to any benefit or payment on its own behalf or on behalf of
another, with intent to secure such benefit or payment fraudulently; (d)
knowingly and willfully soliciting or receiving any remuneration (including any
kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash
or in kind, or offering to pay or receive such remuneration (i) in return for
referring an individual to a Person for the furnishing or arranging for the
furnishing of any item or service for which payment may be made in whole or in
part by Medicare, Medicaid or any other government or private third party payor
or (ii) in return for purchasing, leasing, or ordering or arranging for or
recommending purchasing, leasing or ordering any good, facility, service, or
item for which payment may be made in whole or in part by Medicare, Medicaid or
any other government or private third party payor; and (e) making any prohibited
referral for designated health services, or presenting or causing to be
presented a claim or bill to any individual, third party payor or other entity
for designated health services furnished pursuant to a prohibited referral,
except to the extent that any activities of the types described in clauses (a)
through (e) above do not, individually or in the aggregate, (A) adversely affect
Persons generating 3% or more of total revenues of the Credit Parties and their
Subsidiaries and (B) result in exclusion of such Persons from federal or state
healthcare programs or civil or criminal penalties.

         6.23 USE OF PROCEEDS.

         The proceeds of the Loans and the Letters of Credit will be used solely
for the purposes specified in Section 7.11.

                                    SECTION 7

                              AFFIRMATIVE COVENANTS

         Each of the Credit Parties covenants and agrees that, until the
termination of the Commitments, the termination or expiration of all Letters of
Credit and the payment in full of all Credit Party Obligations:

         7.1 FINANCIAL STATEMENTS.

         The Credit Parties will deliver to the Administrative Agent on behalf
of the Lenders:

                  (a) Quarterly Statements. On or prior to the date that is
         three (3) days after the date the Borrower is required by Law to file a
         quarterly report on Form 10-Q with the Securities and Exchange
         Commission and in any event within forty-eight (48) days after the end
         of each of the first three fiscal quarters of each fiscal year (or, if
         the 48th day after the fiscal quarter end is not a Business Day, then
         the next Business Day after such 48th day), unaudited consolidated and
         consolidating balance sheets of the Credit Parties and their
         Subsidiaries as of the end of such fiscal quarter and unaudited
         consolidated and consolidating statements of income, cash flows and
         stockholders' equity for the Credit Parties and their Subsidiaries for
         the fiscal quarter then ended and for that portion of the fiscal year
         then ended, in each case setting forth comparative consolidated (or
         consolidating) figures as of the end of and for the corresponding
         period in the preceding fiscal year, all in reasonable detail and
         prepared in accordance with GAAP (subject to the absence of footnotes
         required by GAAP and subject to normal year-end adjustments) applied on
         a basis consistent with that of the preceding quarter or containing
         disclosure of the effect on the financial condition or results of
         operations of any change in the application of accounting principles
         and practices during such quarter; and

                  (b) Annual Statements. On or prior to the date that is three
         (3) days after the date the Borrower is required by Law to file an
         annual report on Form 10-K with the Securities and Exchange

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         Commission and in any event within ninety-three (93) days after the end
         of each fiscal year (or, if the 93rd day after the fiscal quarter end
         is not a Business Day, then the next Business Day after such 93rd day),
         an audited consolidated balance sheet of the Credit Parties and their
         Subsidiaries as of the end of such fiscal year and audited consolidated
         statements of income, cash flows and stockholders' equity for the
         Credit Parties and their Subsidiaries for the fiscal year then ended,
         including the footnotes thereto, in each case setting forth comparative
         figures as of the end of and for the preceding fiscal year, all in
         reasonable detail and certified by the independent certified public
         accounting firm regularly retained by the Borrower or another
         independent certified public accounting firm of recognized national
         standing reasonably acceptable to the Required Lenders, together with
         (i) a report thereon by such accountants that is not qualified as to
         going concern or scope of audit and to the effect that such financial
         statements present fairly the consolidated financial condition and
         results of operations of the Credit Parties and their Subsidiaries as
         of the dates and for the periods indicated in accordance with GAAP
         applied on a basis consistent with that of the preceding year or
         containing disclosure of the effect on the financial condition or
         results of operations of any change in the application of accounting
         principles and practices during such year, and (ii) a report by such
         accountants to the effect that, based on and in connection with their
         examination of the financial statements of the Borrower and its
         Subsidiaries, they obtained no knowledge of the occurrence or existence
         of any Default or Event of Default relating to accounting matters
         (including, without limitation, any Event of Default resulting from the
         failure of the Credit Parties to comply with the financial covenants
         set forth in Section 8.14), or a statement specifying the nature and
         period of existence of any such Default or Event of Default disclosed
         by their audit.

         7.2 OTHER BUSINESS AND FINANCIAL INFORMATION.

         The Credit Parties will deliver to the Administrative Agent on behalf
of the Lenders:

                  (a) Compliance Certificate. Concurrently with each delivery of
         the financial statements described in Section 7.1, a Compliance
         Certificate with respect to the period covered by the financial
         statements then being delivered, executed by a Financial Officer of the
         Borrower, together with a Covenant Compliance Worksheet reflecting the
         computation of and compliance with the financial covenants set forth in
         Section 8.14 as of the last day of the period covered by such financial
         statements and compliance with such other covenants set forth in
         Section 8 as required in such Covenant Compliance Worksheet. Each such
         Compliance Certificate shall contain (i) a list of each Permitted
         Acquisition (the Acquisition Amount in respect of which is less than
         either $2,500,000 (to the extent paid or payable in cash) or $5,000,000
         (regardless of the form of consideration)) made during the most recent
         fiscal quarter then ended, (ii) a schedule setting forth any
         outstanding litigation between a Credit Party and an Affiliated
         Practice (or former Affiliated Practice) that is pending, at Law, in
         equity or in arbitration, and any judgment resulting from any such
         litigation, in each case to the extent such litigation or judgment has
         not been settled, dismissed, vacated, discharged or terminated, and
         (iii) an updated copy of Schedule 6.7. Upon receipt of the Compliance
         Certificate, the Administrative Agent shall have the right to request,
         and the Borrower shall deliver within fifteen (15) days after such
         request, the items described in Section 7.9(b)(i) and (ii) with respect
         to any Permitted Acquisition listed in such Compliance Certificate.

                  (b) Updated Projections. As soon as available and in any event
         within thirty (30) days prior to the beginning of each fiscal year,
         updated Projections together with a certificate of a Financial Officer
         of the Borrower to the effect that such updated Projections have been
         prepared in good faith and are a reasonable estimate of the financial
         condition and results of operations of the Credit Parties and their
         Subsidiaries for the period covered thereby, subject to the
         uncertainties and approximations inherent in any projections.

                  (c) Management Letters. Promptly upon receipt thereof and in
         any event within thirty (30) days after the date the Borrower's annual
         report on Form 10-K is filed with the Securities and Exchange
         Commission, copies of any letter from the Borrower's independent
         auditors that refers to any inadequacy, defect, problem, qualification
         or other lack of satisfactory accounting controls utilized by any
         Credit Party or any of its Subsidiaries (a "Management Letter") and any
         report submitted or presented to the audit committee of the Board of
         Directors of any Credit Party or any of its Subsidiaries by its
         certified public accountants in connection with each annual audit;
         promptly upon receipt thereof and in any event within thirty (30) days
         after the completion of the audit, copies of any Management Letter and
         any report submitted or presented to the audit

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<PAGE>

         committee of the Board of Directors of any Credit Party or any of its
         Subsidiaries by its certified public accountants in connection with any
         special or interim audit; and promptly upon completion thereof and in
         any event within thirty (30) days after receipt of any Management
         Letter, the response reports from the applicable Credit Party or
         Subsidiary in respect of the annual, special or interim audit
         corresponding to such Management Letter.

                  (d) Information. Within five (5) days after the sending,
         filing or receipt thereof, (i) any filing by the Borrower of any Form
         10-Q, Form 10-K, Form 8-K or other regular, periodic and special
         report, registration statement and prospectus (other than on Form S-8)
         with the Securities and Exchange Commission, the National Association
         of Securities Dealers, Inc. or any national securities exchange, a copy
         of such filing in PDF or similar format, (ii) copies of all financial
         statements, reports, notices and proxy statements that any Credit Party
         and any of its Subsidiaries shall send or make available generally to
         its shareholders (unless filed with the Securities and Exchange
         Commission via its EDGAR system and the Borrower notifies the
         Administrative Agent thereof and provides a copy thereof to the
         Administrative Agent in PDF or similar format within 5 days of such
         filing), (iii) all press releases and other statements made available
         generally by any Credit Party or any of its Subsidiaries to the public
         concerning material developments in the business of any such Credit
         Party or any of its Subsidiaries, (iv) all written inquiries, requests
         for information or similar correspondence from the Securities and
         Exchange Commission, the New York Stock Exchange or any similar
         securities agency, national securities exchange or securities
         association to any Credit Party or any of its Subsidiaries and all
         responses thereto by such Credit Party or such Subsidiary, and (v) all
         material notices, written inquiries, requests for information or
         similar correspondence from the Internal Revenue Service related to any
         audit by the Internal Revenue Service of the Borrower or any of its
         Subsidiaries.

                  (e) Defaults, Litigation, etc. Promptly upon (and in any event
         within five Business Days after) any Responsible Officer of any Credit
         Party or any of its Subsidiaries obtaining knowledge thereof, written
         notice of any of the following:

                           (i) the occurrence of any Default or Event of
                  Default, together with a written statement of a Responsible
                  Officer of such Credit Party or such Subsidiary specifying the
                  nature of such Default or Event of Default, the period of
                  existence thereof and the action that such Credit Party or
                  such Subsidiary has taken and proposes to take with respect
                  thereto;

                           (ii) the institution or threatened institution of any
                  action, suit, investigation or proceeding against or affecting
                  any Credit Party, any of its Subsidiaries or any Affiliated
                  Practice, including any such investigation or proceeding by
                  any Governmental Authority (other than routine periodic
                  inquiries, investigations or reviews), that would, if
                  adversely determined, have or be reasonably likely to have,
                  individually or in the aggregate, a Material Adverse Effect,
                  and any material development in any litigation or other
                  proceeding previously reported pursuant to Section 6.5 or this
                  clause (ii);

                           (iii) the receipt by any Credit Party or any of its
                  Subsidiaries from any Governmental Authority or other Person
                  of (A) any notice asserting any failure by the Borrower, any
                  of its Subsidiaries or any Affiliated Practice to be in
                  compliance with applicable Requirements of Law or that
                  threatens the taking of any action against such Person or sets
                  forth circumstances that, if taken or adversely determined,
                  would have or be reasonably likely to have a Material Adverse
                  Effect, (B) any notice of any actual or threatened Limitation
                  with respect to any License or Reimbursement Approval of any
                  Credit Party, any of its Subsidiaries or any Affiliated
                  Practice, where such action would have or be reasonably likely
                  to have a Material Adverse Effect or (C) any notice of, or
                  correspondence with respect to, the commencement of an
                  investigation by such Governmental Authority or other Person
                  (y) regarding the compliance by the Borrower, any of its

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<PAGE>

                  Subsidiaries or any Affiliated Practice with any Requirements
                  of Law or (z) that could reasonably be expected to result in a
                  Limitation with respect to any License or Reimbursement
                  Approval of any Credit Party, any of its Subsidiaries or any
                  Affiliated Practice;

                           (iv) the occurrence of any of the following: (A) an
                  ERISA Event, together with (1) a written statement of a
                  Responsible Officer of the Borrower specifying the details of
                  such ERISA Event and the action that the applicable Credit
                  Party or Subsidiary thereof has taken and proposes to take
                  with respect thereto, (2) a copy of any notice with respect to
                  such ERISA Event that may be required to be filed with the
                  PBGC and (3) a copy of any notice delivered by the PBGC to any
                  Credit Party, any Subsidiary thereof or any ERISA Affiliate
                  with respect to such ERISA Event; (B) the failure to make full
                  payment on or before the due date (including extensions)
                  thereof of all amounts which any Credit Party, any of its
                  Subsidiaries or any ERISA Affiliate is required to contribute
                  to each Plan pursuant to such Plan's terms and as required to
                  meet the minimum funding standard set forth in Section 302 of
                  ERISA and Section 412 of the Code with respect thereto; or (C)
                  any change in the funding status of any Plan that could have a
                  Material Adverse Effect; together with a description of any
                  such event or condition or a copy of any such notice and a
                  statement by the principal financial officer of the Borrower
                  briefly setting forth the details regarding such event,
                  condition, or notice, and the action, if any, which has been
                  or is being taken or is proposed to be taken by the Credit
                  Parties with respect thereto. Promptly upon request, a Credit
                  Party shall furnish the Administrative Agent and each of the
                  Lenders with such additional information concerning any Plan
                  as may be reasonably requested by the Administrative Agent,
                  including, but not limited to, copies of each annual
                  report/return (Form 5500 series), as well as all schedules and
                  attachments thereto required to be filed with the Department
                  of Labor and/or the Internal Revenue Service pursuant to ERISA
                  and the Code, respectively, for each "plan year" (within the
                  meaning of Section 3(39) of ERISA).

                           (v) the occurrence of any material default under, or
                  any proposed or threatened termination or cancellation of, any
                  Material Contract or other material contract or agreement to
                  which any Credit Party, any of its Subsidiaries or any
                  Affiliated Practice is a party, the termination or
                  cancellation of which would have or be reasonably likely to
                  have a Material Adverse Effect;

                           (vi) the occurrence of any of the following: (A) the
                  assertion of any Environmental Claim against or affecting any
                  Credit Party, any of its Subsidiaries or any of their
                  respective real property, leased or owned; (B) the receipt by
                  any Credit Party or any of its Subsidiaries of notice of any
                  alleged violation of or noncompliance with any Environmental
                  Laws; or (C) the taking of any remedial action by any Credit
                  Party, any of its Subsidiaries or any other Person in response
                  to the actual or alleged generation, storage, release,
                  disposal or discharge of any Hazardous Substances on, to, upon
                  or from any real property leased or owned by any Credit Party
                  or any of its Subsidiaries; but in each case under clauses
                  (A), (B) and (C) above, only to the extent the same would have
                  or be reasonably likely to have a Material Adverse Effect; and

                           (vii) any other matter or event that has had, or
                  would be reasonably likely to have, a Material Adverse Effect,
                  together with a written statement of a Responsible Officer of
                  the Borrower setting forth the nature and period of existence
                  thereof and the action that the applicable Credit Party or
                  Subsidiary thereof has taken and proposes to take with respect
                  thereto.

                  (f) HIPAA. Promptly upon the implementation by the Credit
         Parties and their Subsidiaries of policies that are consistent with the
         Privacy Standards, confirmation that such policies have been
         implemented, such confirmation to be in a form satisfactory to the
         Administrative Agent.

                  (g) Compliance with Other Covenants. Within thirty (30) days
         after the request of the Administrative Agent, evidence of compliance
         with such other covenants set forth in Section 8 as reasonably required
         by the Administrative Agent.

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<PAGE>

                  (h) Other Information. As promptly as reasonably possible,
         such other information about the business, condition (financial or
         otherwise), operations or properties of any Credit Party or any of its
         Subsidiaries (including any Plan and any information required to be
         filed under ERISA) as the Administrative Agent or any Lender may from
         time to time reasonably request.

         7.3 CORPORATE EXISTENCE; FRANCHISES; MAINTENANCE OF PROPERTIES.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to (a) maintain and preserve in full force and effect its corporate
existence, except as expressly permitted otherwise by Section 8.1, (b) obtain,
maintain and preserve in full force and effect all other rights, franchises,
licenses, permits, certifications, approvals, authorizations and other Licenses,
and all Reimbursement Approvals, required by Governmental Authorities and
necessary to the ownership, occupation or use of its properties or the conduct
of its business, except to the extent the failure to do so would not have or be
reasonably likely to have a Material Adverse Effect and (c) keep all material
properties in good working order and condition (normal wear and tear excepted)
and from time to time make all necessary repairs to and renewals and
replacements of such properties, except to the extent that any of such
properties are obsolete or are being replaced.

         7.4 COMPLIANCE WITH REQUIREMENT OF LAWS/COMPLIANCE PROGRAM.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to (a) comply in all material respects with all Requirements of Law
applicable to the conduct of its business and the ownership and operation of its
properties and (b) on or before the later of (i) the date on which any
Affiliated Practice and any Credit Party executes a business associate agreement
pursuant to the Standards for Privacy of Individually Identifiable Health
Information (the "Privacy Standards") implementing the privacy requirements of
the Administrative Simplification subtitle of the Health Insurance Portability
and Accountability Act of 1996 (HIPAA) set forth at 45 CFR Parts 160 and 164 or
(ii) April 14, 2003, implement policies that are consistent with the Privacy
Standards.

         7.5 PAYMENT OF OBLIGATIONS.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, (a) pay all liabilities and obligations as and when due
(subject to any applicable subordination provisions), except to the extent
failure to do so would not have or be reasonably likely to have a Material
Adverse Effect and (b) pay and discharge all taxes, assessments and governmental
charges or levies imposed upon it, upon its income or profits or upon any of its
properties, prior to the date on which penalties would attach thereto, and all
lawful claims that, if unpaid, might become a Lien upon any of the properties of
any Credit Party or any of its Subsidiaries; provided, however, that neither any
Credit Party nor any of its Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim that is being contested in good faith and by
proper proceedings and as to which such Credit Party or such Subsidiary is
maintaining adequate reserves with respect thereto in accordance with GAAP.

         7.6 INSURANCE.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, maintain with financially sound and reputable insurance
companies (or through adequately funded self-insurance with respect to the types
of insurance coverage set forth on Schedule 6.17) insurance with respect to its
assets, properties and business, against such hazards and liabilities, of such
types and in such amounts, as is customarily maintained by companies in the same
or similar businesses similarly situated.

         7.7 MAINTENANCE OF BOOKS AND RECORDS; INSPECTION.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, (a) maintain adequate books, accounts and records, in which
full, true and correct entries shall be made of all financial transactions in
relation to its business and properties, and prepare all financial statements
required under this Credit Agreement, in each case in accordance with GAAP and
in compliance with the requirements of any Governmental Authority having
jurisdiction over it and (b) permit employees or agents of the Administrative
Agent or any Lender to inspect its properties and

                                       57
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examine or audit its books, records, working papers and accounts and make copies
and memoranda of them, and to discuss its affairs, finances and accounts with
its officers and employees and, upon notice to the Borrower, the independent
public accountants of the Credit Parties and their Subsidiaries (and by this
provision the Borrower authorizes such accountants to discuss the finances and
affairs of the Credit Parties and their Subsidiaries), all at such times and
from time to time, upon reasonable notice and during business hours, as may be
reasonably requested.

         7.8 AFFILIATED PRACTICES.

         Each of the Credit Parties will use its best efforts to (a) cause each
Affiliated Practice to comply in all respects with all Requirements of Law
applicable in respect of the conduct of its business and the ownership and
operation of its properties and (b) assist each Affiliated Practice to obtain,
maintain and preserve in full force and effect all other rights, franchises,
permits, certifications, approvals, authorizations, Licenses (including with
respect to orthodontist-employees and dentist-employees), and Reimbursement
Approvals, required by Governmental Authorities and necessary to the ownership,
occupation or use of its properties or the conduct of its business, except in
each case under clauses (a) and (b) above to the extent the failure to do so
would not have or be reasonably likely to have a Material Adverse Effect.

         7.9 PERMITTED ACQUISITIONS.

                  (a) Subject to the provisions set forth below and the
         requirements contained in the definition of Permitted Acquisition, and
         subject to the other terms and conditions of this Credit Agreement, the
         Credit Parties may from time to time on or after the Closing Date
         consummate Permitted Acquisitions; provided that, with respect to any
         Permitted Acquisition:

                           (i) no Default or Event of Default shall have
                  occurred and be continuing at the time of the consummation of
                  a Permitted Acquisition or would exist immediately after
                  giving effect thereto; and

                           (ii) the Acquisition Amount with respect to Permitted
                  Acquisitions shall not exceed (A) to the extent paid or
                  payable in cash, (1) for any single Acquisition, $2,500,000 or
                  (2) in the aggregate for all Permitted Acquisitions
                  consummated during the same fiscal year, $25,000,000, (B) in
                  the aggregate for all Permitted Acquisitions consummated
                  during the same fiscal year (regardless of the form of
                  consideration), $35,000,000 and (C) to the extent related to
                  the purchase of assets or operations located outside of the
                  United States of America, in the aggregate, $1,000,000 for any
                  individual foreign Acquisition or $10,000,000 for all such
                  foreign Acquisitions from and after the Closing Date.

                  (b) Not less than ten Business Days prior to the consummation
         of any proposed Acquisition with respect to which the Acquisition
         Amount equals or exceeds either $2,500,000 (to the extent paid or
         payable in cash) or $5,000,000 (regardless of the form of
         consideration), the Borrower shall have delivered to the Administrative
         Agent and each Lender the information and materials described in
         clauses (i) through (iv) below and, if applicable, a request for a
         consent to consummate such Acquisition.

                           (i) a reasonably detailed description of the material
                  terms of such Acquisition (including, without limitation, the
                  purchase price and method and structure of payment) and of
                  each Person or business that is the subject of such
                  Acquisition (each, a "Target");

                           (ii) historical financial statements of the Target
                  (or, if there are two or more Targets that are the subject of
                  such Acquisition and that are part of the same consolidated
                  group, consolidated and consolidating historical financial
                  statements for all such Targets) for the two most recent
                  fiscal years available and, if available, for any interim
                  periods since the most recent fiscal year-end;

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                           (iii) consolidated projected income statements of the
                  Credit Parties and their Subsidiaries (giving effect to such
                  Acquisition and the consolidation with the Credit Party of
                  each relevant Target) for the period from the consummation of
                  such Acquisition until the Maturity Date, in each case in
                  reasonable detail, together with any appropriate statement of
                  assumptions and pro forma adjustments; and

                           (iv) a certificate, in form and substance reasonably
                  satisfactory to the Administrative Agent, executed by a
                  Financial Officer of the Borrower setting forth the
                  Acquisition Amount and further to the effect that, to the best
                  of such Financial Officer's knowledge, (A) the consummation of
                  such Acquisition will not result in a violation of any
                  provision of this Section 7.9, and after giving effect to such
                  Acquisition and any Borrowings made in connection therewith,
                  the Credit Parties will be in compliance with the financial
                  covenants contained in Section 8.14, such compliance
                  determined with regard to calculations made on a Pro Forma
                  Basis in accordance with GAAP as if each Target had been
                  consolidated with a Credit Party for those periods applicable
                  to such covenants (such calculations to be attached to the
                  certificate), (B) the Credit Parties and their Subsidiaries
                  will continue to comply with the financial covenants contained
                  in Section 8.14 for a period of one year following the date of
                  the consummation of such Acquisition, and (C) after giving
                  effect to such Acquisition and any Borrowings in connection
                  therewith, the Credit Parties and their Subsidiaries will have
                  sufficient funds available to meet its ongoing working capital
                  requirements.

                  (c) As soon as reasonably practicable after the consummation
         of any Permitted Acquisition, if requested by the Administrative Agent,
         the Borrower will deliver to the Administrative Agent and each Lender a
         copy of the fully executed acquisition agreement (including schedules
         and exhibits thereto) and other material documents and closing papers
         delivered in connection therewith.

                  (d) The consummation of each Permitted Acquisition shall be
         deemed to be a representation and warranty by the Borrower that (except
         as shall have been approved in writing by the Required Lenders) all
         conditions thereto set forth in this Section and in the description
         furnished under clause (i) of subsection (b) above (if applicable) have
         been satisfied, that the same is permitted in accordance with the terms
         of this Credit Agreement, and that the matters certified to by the
         Financial Officer of the Borrower in the certificate referred to in
         clause (iv) of subsection (b) above (if applicable) are, to the best of
         such Financial Officer's knowledge, true and correct in all material
         respects as of the date such certificate is given, which representation
         and warranty shall be deemed to be a representation and warranty as of
         the date thereof for all purposes hereunder, including, without
         limitation, for purposes of Sections 5.2 and 9.1.

         7.10 CREATION OR ACQUISITION OF SUBSIDIARIES.

         Subject to the provisions of Sections 7.9 and 8.5, the Credit Parties
or their Wholly Owned Subsidiaries may from time to time create or acquire new
Wholly Owned Subsidiaries in connection with Permitted Acquisitions or
otherwise, provided that:

                  (a) Concurrently with (and in any event within ten Business
         Days thereafter) the creation or acquisition by any Credit Party of any
         new Domestic Subsidiary (other than a De Minimis Subsidiary), (i) such
         Credit Party will cause such Domestic Subsidiary to execute and deliver
         to the Collateral Agent a Joinder Agreement, pursuant to which such new
         Domestic Subsidiary shall become a party hereto and shall guarantee the
         payment in full of the Credit Party Obligations under this Credit
         Agreement and the other Credit Documents, (ii) such Credit Party and/or
         any applicable Subsidiary will execute and deliver to the Collateral
         Agent a Pledge and Security Agreement or an amendment or supplement to
         an existing Pledge and Security Agreement pursuant to which all of the
         Capital Stock of such new Domestic Subsidiary shall be pledged to the
         Collateral Agent, together with the certificates evidencing such
         Capital Stock and undated stock powers duly executed in blank and (iii)
         such Credit Party or applicable Subsidiary will execute and deliver
         Intercompany Notes, as appropriate, and such Intercompany Notes shall
         be delivered to the

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         Collateral Agent, together with duly executed allonges in form and
         substance satisfactory to the Collateral Agent.

                  (b) Concurrently with (and in any event within ten Business
         Days thereafter) the creation or direct or indirect acquisition by any
         Credit Party of any new first-tier Foreign Subsidiary (other than a De
         Minimis Subsidiary), such Credit Party will execute and deliver to the
         Collateral Agent a Pledge and Security Agreement or an amendment or
         supplement to an existing Pledge and Security Agreement pursuant to
         which all of the Capital Stock of such new Foreign Subsidiary shall be
         pledged to the Collateral Agent, together with the certificates
         evidencing such Capital Stock and undated stock powers duly executed in
         blank (or such other documents, instruments and other evidence as the
         Collateral Agent shall require in order to perfect its security
         interest (or the equivalent thereof under applicable Law of the
         relevant foreign jurisdiction) in such Capital Stock); provided that no
         more than 65% of the Capital Stock of any Foreign Subsidiary shall be
         required to be pledged to the Collateral Agent if the pledge of more
         than 65% thereof would, in the good faith judgment of the Borrower,
         result in adverse tax consequences to the Borrower or would be unlawful
         for such Foreign Subsidiary.

                  (c) As promptly as reasonably possible, the Credit Parties and
         their Subsidiaries will deliver any such other documents, certificates
         and opinions (including opinions of local counsel in the jurisdiction
         of organization of each such new Subsidiary, including any new Foreign
         Subsidiary, if applicable and requested), in form and substance
         reasonably satisfactory to the Administrative Agent, as the
         Administrative Agent may reasonably request in connection therewith and
         will take such other action as either Agent may reasonably request to
         create in favor of the Collateral Agent a perfected security interest
         in the Collateral being pledged pursuant to the documents described
         above. Nothing contained in this Section, however, shall be deemed to
         permit the creation or acquisition by any Credit Party or any of its
         Subsidiaries, directly or indirectly, of any Subsidiary not expressly
         permitted under Section 8.5.

         7.11 USE OF PROCEEDS.

         The Borrower will use the proceeds of the Revolving Loans and the Term
Loans solely (a) to repay or refinance outstanding Indebtedness under the
Existing Credit Agreement and the Bridge Credit Agreement, (b) to pay fees and
expenses required to be paid by the terms of this Credit Agreement and the other
Credit Documents or incurred in connection herewith and (c) to provide for
working capital, Capital Expenditures and general corporate purposes of the
Credit Parties and their Subsidiaries. The Borrower will use the Letters of
Credit solely to support the obligations (including pension or insurance
obligations), contingent or otherwise, of the Credit Parties and their
Subsidiaries.

         7.12 FURTHER ASSURANCES.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, make, execute, endorse, acknowledge and deliver any amendments,
modifications or supplements hereto and restatements hereof and any other
agreements, instruments or documents, and take any and all such other actions,
as may from time to time be reasonably requested by either Agent or the Required
Lenders to perfect and maintain the validity, perfection and priority of the
Liens granted pursuant to the Pledge and Security Agreement and to effect,
confirm or further assure or protect and preserve the interests, rights and
remedies of the Agents and the Lenders under this Credit Agreement and the other
Credit Documents.

         7.13 DE MINIMIS SUBSIDIARIES.

                  (a) If at any time (i) the aggregate book value of all assets
         of the De Minimis Subsidiaries shall exceed $1,000,000 or (ii) the
         aggregate annual revenues of the De Minimis Subsidiaries shall exceed
         $500,000 (which such revenues, in the case of a newly acquired or
         formed Subsidiary, shall be calculated (x) on an annualized basis as of
         the end of each of the first three complete fiscal quarters following
         the acquisition or formation of such Subsidiary and (y) thereafter on a
         rolling four fiscal quarter basis as of the end of each fiscal
         quarter), the Credit Parties will, as promptly as reasonably possible
         but in any event

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         within thirty (30) days thereafter (or such longer period of times
         agreed to by the Administrative Agent), take any or all of the
         following actions to the extent necessary to eliminate such excess: (A)
         cause one or more De Minimis Subsidiaries to transfer assets to one or
         more Guarantors, (B) merge one or more De Minimis Subsidiaries with and
         into one or more Guarantors, or (C) cause one or more De Minimis
         Subsidiaries to become Guarantors in accordance with Section 7.10.

                  (b) If at any time a Domestic Subsidiary that at one time met
         the conditions to satisfy the definition to be a De Minimis Subsidiary
         no longer meets such conditions, the Credit Parties and such Domestic
         Subsidiary shall comply with the terms of Section 7.10 as if it was a
         newly acquired Subsidiary.

                                    SECTION 8

                               NEGATIVE COVENANTS

         Each of the Credit Parties covenants and agrees that, until the
termination of the Commitments, the termination or expiration of all Letters of
Credit and the payment in full of all Credit Party Obligations:

         8.1 MERGER; CONSOLIDATION.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, liquidate, wind up or dissolve, or engage in any
consolidation, merger or other combination; provided, however, that if no
Default or Event of Default exists prior to or after giving effect thereto then
the following actions may be taken:

                  (i) the Borrower or any other Credit Party or any Subsidiary
         thereof may merge or consolidate with a Credit Party; provided that (A)
         if the transaction involves the Borrower, the Borrower is the surviving
         entity and (B) if the transaction involves a Credit Party other than
         the Borrower, such Credit Party is the surviving entity;

                  (ii) any Credit Party may merge or consolidate with another
         Person that is not a Credit Party; provided that (A) if the transaction
         involves the Borrower, the Borrower is the surviving entity, (B) if the
         transaction involves a Credit Party other than the Borrower, the
         surviving entity is a Credit Party or another Person that becomes a
         Credit Party under Sections 7.9 or 7.10 and (C) such merger or
         consolidation constitutes a Permitted Acquisition and the applicable
         conditions and requirements of Sections 7.9 and 7.10 are satisfied;

                  (iii) any Subsidiary that is not a Credit Party may merge or
         consolidate into any other Person; provided that such merger or
         consolidation shall constitute a Permitted Acquisition and the
         applicable conditions and requirements of Sections 7.9 and 7.10 are
         satisfied; and

                  (iv) any De Minimis Subsidiary may dissolve and thereafter
         liquidate and wind up its affairs so long as its assets, if any, are
         distributed only to a Credit Party.

         8.2 INDEBTEDNESS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, create, incur, assume or suffer to exist any
Indebtedness other than:

                  (a) Indebtedness incurred under this Credit Agreement, the
         Notes and the other Credit Documents;

                  (b) Indebtedness existing on the Closing Date and described in
         Schedule 8.2, and any extensions, renewals, replacements, modifications
         and refundings thereof; provided that the principal amount thereof is
         not increased from the amount shown on Schedule 8.2;

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                  (c) accrued expenses (including salaries, accrued vacation and
         other compensation), current trade or other accounts payable and other
         current liabilities arising in the ordinary course of business and not
         incurred through the borrowing of money; provided that the same shall
         be paid when due except to the extent being contested in good faith and
         by appropriate proceedings;

                  (d) loans and advances by a Credit Party to another Credit
         Party; provided that (i) any such loan or advance is subordinated in
         right and time of payment to the Credit Party Obligations on terms and
         conditions acceptable to the Administrative Agent and is evidenced by
         an intercompany note (each, an "Intercompany Note"), in form and
         substance satisfactory to the Collateral Agent, that is pledged to the
         Collateral Agent pursuant to a Pledge and Security Agreement and (ii)
         no such loan or advance shall be made to a Credit Party that is the
         subject of a proceeding of the type described in Sections 9.1(e) or
         9.1(f);

                  (e) unsecured Indebtedness, consisting of guarantees by any
         Credit Party or any of its Subsidiaries of loans made to affiliated
         orthodontists and orthodontic practices for the purpose of financing
         costs associated with the development of new orthodontic centers;
         provided that the aggregate amount outstanding under all such
         guarantees shall not exceed $5,000,000 at any time outstanding (whether
         incurred prior to or after the Closing Date);

                  (f) unsecured Indebtedness issued after the Closing Date by
         any Credit Party or any of its Subsidiaries to sellers in connection
         with Permitted Acquisitions (collectively, "Seller Indebtedness");
         provided that (i) such Seller Indebtedness shall not exceed $15,000,000
         in the aggregate at any time outstanding and (ii) no more than
         $10,000,000 of the $15,000,000 of Seller Indebtedness permitted
         pursuant to this subsection (f) shall fail to include a restriction on
         the repayment of principal of such Seller Indebtedness during the
         existence of an Event of Default;

                  (g) Indebtedness consisting of guarantees made in the ordinary
         course of business by any Credit Party or any of its Subsidiaries of
         leases or other obligations of any Credit Party or any of its
         Subsidiaries, which obligations are otherwise permitted under this
         Credit Agreement;

                  (h) Indebtedness of the Borrower under Hedging Agreements
         entered into in the ordinary course of business and not for speculative
         purposes; provided that the notional amount covered under all such
         agreements shall not exceed the sum of the Revolving Committed Amount
         plus the outstanding principal amount of Term Loans;

                  (i) purchase money Indebtedness of the Credit Parties and
         their Subsidiaries incurred solely to finance the payment of all or
         part of the purchase price of any equipment, real property or other
         fixed assets acquired in the ordinary course of business, including
         Indebtedness in respect of capital lease obligations, and any renewals,
         refinancings or replacements thereof; provided that the aggregate
         amount of such Indebtedness plus the aggregate amount of Indebtedness
         incurred pursuant to subsection (n) below shall not exceed $5,000,000
         at any time outstanding;

                  (j) Indebtedness consisting of promissory notes made by a
         Credit Party to Affiliated Practices under incentive programs (the
         "Incentive Program Indebtedness") in an aggregate amount not to exceed
         $15,000,000 at any time outstanding;

                  (k) unsecured Indebtedness of the Credit Parties and their
         Subsidiaries incurred in connection with any transaction or series of
         transactions providing for the financing of assets through one or more
         securitizations or in connection with, or pursuant to, any synthetic
         lease or similar off-balance sheet financing in an aggregate amount not
         to exceed $5,000,000 at any one time;

                  (l) an overdraft line of credit with a financial institution
         that handles the Borrower's cash management in an amount not to exceed
         $3,000,000;

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                  (m) Indebtedness of OCA Japan Co., Ltd. or any Subsidiary
         thereof in an aggregate amount not to exceed $5,000,000 at any time
         outstanding; and

                  (n) other unsecured Indebtedness of the Credit Parties and
         their Subsidiaries, including Contingent Obligations (other than
         Indebtedness specified in subsections (a) through (m) above); provided
         that the aggregate amount of such Indebtedness plus the aggregate
         amount of Indebtedness incurred pursuant to subjection (i) above shall
         not exceed $5,000,000 at any time outstanding.

         8.3 LIENS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, directly or indirectly, make, create, incur, assume or
suffer to exist, any Lien upon or with respect to any part of its property or
assets, whether now owned or hereafter acquired, or file or permit the filing
of, or permit to remain in effect, any financing statement or other similar
notice of any Lien with respect to any such property, asset, income or profits
under the Uniform Commercial Code of any state or under any similar recording or
notice statute, or agree to do any of the foregoing, other than the following
(collectively, "Permitted Liens"):

                  (a) Liens in favor of the Collateral Agent, for the benefit of
         the Lenders;

                  (b) Liens in existence on the Closing Date and set forth on
         Schedule 8.3;

                  (c) Liens imposed by Law, such as Liens of carriers,
         warehousemen, mechanics, materialmen and landlords, and other similar
         Liens incurred in the ordinary course of business for sums not
         constituting borrowed money that are not overdue for a period of more
         than thirty (30) days or that are being contested in good faith by
         appropriate proceedings and for which adequate reserves have been
         established in accordance with GAAP (if so required);

                  (d) Liens (other than any Lien imposed by ERISA, the creation
         or incurrence of which would result in an Event of Default under
         Section 9.1(i)) incurred in the ordinary course of business in
         connection with worker's compensation, unemployment insurance or other
         forms of governmental insurance or benefits, or to secure the
         performance of letters of credit, bids, tenders, statutory obligations,
         surety and appeal bonds, leases, government contracts and other similar
         obligations (other than obligations for borrowed money) entered into in
         the ordinary course of business;

                  (e) Liens for taxes, assessments or other governmental charges
         or statutory obligations that are not delinquent or remain payable
         without any penalty or that are being contested in good faith by
         appropriate proceedings and for which adequate reserves have been
         established in accordance with GAAP (if so required);

                  (f) Liens securing purchase money and capital lease
         Indebtedness permitted under Section 8.2(i), provided that any such
         Lien (i) shall attach to such property concurrently with or within ten
         days after the acquisition thereof by any Credit Party or any of its
         Subsidiaries, (ii) shall not exceed the lesser of (A) the fair market
         value of such property or (B) the cost thereof to such Credit Party or
         such Subsidiary and (iii) shall not encumber any other property of any
         Credit Party or any of its Subsidiaries;

                  (g) any attachment or judgment Lien not constituting an Event
         of Default under Section 9.1(g) that is being contested in good faith
         by appropriate proceedings and for which adequate reserves have been
         established in accordance with GAAP (if so required);

                  (h) Liens arising from the filing, for notice purposes only,
         of financing statements in respect of true leases;

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                  (i) with respect to any real property occupied by any Credit
         Party or any of its Subsidiaries, all easements, rights of way,
         licenses and similar encumbrances on title that do not materially
         impair the use of such property for its intended purposes; and

                  (j) other Liens securing Indebtedness permitted pursuant to
         Section 8.2 in an aggregate amount not exceeding $1,000,000 at any time
         outstanding.

         8.4 DISPOSITION OF ASSETS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, sell, assign, lease, convey, transfer or otherwise
dispose of (whether in one or a series of transactions) all or any portion of
its assets, business or properties (including, without limitation, any Capital
Stock of any Subsidiary), or enter into any arrangement with any Person
providing for the lease by a Credit Party or any Subsidiary as lessee of any
asset that has been sold or transferred by such Credit Party or such Subsidiary
to such Person, or agree to do any of the foregoing, except for:

                  (a) sales of inventory in the ordinary course of business;

                  (b) the sale or exchange of used or obsolete equipment to the
         extent (i) the proceeds of such sale (A) are applied towards, or such
         equipment is exchanged for, replacement equipment or (B) do not exceed
         $25,000 in the aggregate for any fiscal quarter or (ii) such equipment
         is no longer necessary for the operations of a Credit Party or its
         applicable Subsidiary in the ordinary course of business;

                  (c) the sale, lease or other disposition of assets by any
         Subsidiary to any Credit Party if, immediately after giving effect
         thereto, no Default or Event of Default would exist;

                  (d) sales of receivables by OCA Japan Co., Ltd. on a
         non-recourse basis in an aggregate amount not to exceed $5,000,000;

                  (e) subject to Section 3.3(b)(v), Service Agreement Buy-Outs
         of Litigating ORAL Affiliated Practices;

                  (f) Service Agreement Buy-Outs of Affiliated Practices (other
         than Litigating ORAL Affiliated Practices) resulting in proceeds or
         settlement amounts (whether paid in cash or otherwise and whether or
         not accrued or deferred) in an aggregate amount not to exceed
         $25,000,000; provided, that any proceeds in excess of $20,000,000 must
         be forwarded to the Administrative Agent in accordance with Section
         3.3(b)(ii) and applied in accordance with Section 3.3(c) and may not be
         reinvested in accordance with the terms of Section 3.3(b)(ii) and
         Section 8.4(g); and

                  (g) other sales or dispositions of assets for fair value and
         for cash; provided that (i) the Net Cash Proceeds from such sales or
         dispositions do not exceed $5,000,000 in the aggregate for the Credit
         Parties and their Subsidiaries during any fiscal year, (ii) such Net
         Cash Proceeds are either (A) immediately delivered to the
         Administrative Agent for application in prepayment of the Term Loans,
         Revolving Loans and Cash Collateralization of the L/C Obligations in
         accordance with the provisions of Sections 3.3(b) and (c) or (B)
         expended to acquire assets or properties or otherwise reinvested in the
         businesses of the Credit Parties and their Subsidiaries (other than
         through the purchase, redemption, retirement or acquisition of common
         Capital Stock of the Borrower) in accordance with the terms of this
         Section 8.4(g), (iii) if such Net Cash Proceeds are to be reinvested in
         accordance with the foregoing clause (ii), (A) the Borrower shall
         deliver to the Administrative Agent promptly upon receipt of such Net
         Cash Proceeds a certificate from a Responsible Officer stating that a
         Credit Party intends to use such Net Cash Proceeds to acquire assets or
         properties or otherwise reinvest such Net Cash Proceeds in the
         businesses of the Credit Parties and their Subsidiaries within 180 days
         of the receipt of such Net Cash Proceeds, (B) the Borrower shall
         deliver to the Administrative Agent within 120 days after receipt of
         such Net Cash Proceeds a certificate from a Responsible Officer
         specifying the assets or properties to be acquired with such Net Cash
         Proceeds or how

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         such Net Cash Proceeds will be reinvested in the businesses of the
         Credit Parties and their Subsidiaries and (C) such Net Cash Proceeds
         shall be reinvested within 180 days of the receipt thereof; it being
         expressly agreed that any Net Cash Proceeds not so reinvested shall be
         delivered to the Administrative Agent for application in prepayment of
         the Term Loans, Revolving Loans and Cash Collateralization of the L/C
         Obligations in accordance with the provisions of Sections 3.3(b) and
         (c) immediately thereafter, (iv) such sale or disposition does not
         consist of any of the Capital Stock of any Subsidiary and (v)
         immediately after giving effect thereto, no Default or Event of Default
         would exist.

         8.5 INVESTMENTS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, directly or indirectly, (a) purchase, own, invest in or
otherwise acquire any Capital Stock, evidence of indebtedness or other
obligation or security or any interest whatsoever in any other Person, (b) make
or permit to exist any loans, advances or extensions of credit to, or any
investment in cash or by delivery of property in, any other Person, or (c)
purchase or otherwise acquire (whether in one or a series of related
transactions) any portion of the assets, business or properties of another
Person (including pursuant to an Acquisition), or create or acquire any
Subsidiary, or become a partner or joint venturer in any partnership or joint
venture (collectively, "Investments"), or make a commitment or otherwise agree
to do any of the foregoing, other than:

                  (a) Investments in Cash Equivalents;

                  (b) Investments consisting of purchases and acquisitions of
         inventory, supplies, materials and equipment in the ordinary course of
         business,

                  (c) Investments consisting of loans and advances to employees
         for reasonable travel, relocation and business expenses in the ordinary
         course of business, extensions of trade credit in the ordinary course
         of business, and prepaid expenses incurred in the ordinary course of
         business;

                  (d) Investments consisting of (i) intercompany Indebtedness
         permitted under Section 8.2(d) and (ii) Hedging Agreements permitted
         under Section 8.2(h);

                  (e) Investments in Subsidiaries as set forth on Schedule 6.7
         and Investments in joint ventures existing as of the Closing Date as
         set forth on Schedule 8.5;

                  (f) Investments (i) by a Credit Party or any Subsidiary in any
         other Wholly Owned Subsidiary that is (or immediately after giving
         effect to such Investment will be) a Domestic Subsidiary and a
         Guarantor; provided that such Credit Party complies with the provisions
         of Section 7.10 as applicable and (ii) by any Subsidiary in the
         Borrower;

                  (g)      Permitted Acquisitions;

                  (h) Investments consisting of temporary or overnight
         investments and other investment products sold to any Credit Party or
         any of its Subsidiaries by any Lender or any Affiliate thereof in order
         to facilitate such Person's cash management;

                  (i) Investments in Foreign Subsidiaries made after the Closing
         Date that do not constitute a Permitted Acquisition (including, without
         limitation (but without duplication), capital contributions made to any
         Foreign Subsidiary, loans and advances made to any Foreign Subsidiary,
         and Contingent Obligations with respect to obligations of any Foreign
         Subsidiary), in an aggregate amount not exceeding the Dollar Equivalent
         of $5,000,000 at any time outstanding for all such Investments;

                  (j) Investments in Affiliated Practices existing as of the
         Closing Date as set forth on Schedule 8.5 and Investments made in
         Affiliated Practices after the Closing Date, in an aggregate amount not
         exceeding $35,000,000 at any time outstanding for all such Investments;

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                  (k) Reimbursable Investments; and

                  (l) other Investments in an aggregate amount not exceeding
         $2,500,000 at any time outstanding.

         8.6 RESTRICTED PAYMENTS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, directly or indirectly, declare or make any dividend
payment, or make any other distribution of cash, property or assets, in respect
of any of its Capital Stock or any warrants, rights or options to acquire its
Capital Stock, or purchase, redeem, retire or otherwise acquire for value any
shares of its Capital Stock or any warrants, rights or options to acquire its
Capital Stock, or set aside funds for any of the foregoing, except that if no
Default or Event of Default shall exist or be caused by giving effect thereto:

                  (a) the Borrower may declare and make dividend payments or
         other distributions payable solely in its common Capital Stock;

                  (b) each Wholly Owned Subsidiary may declare and make dividend
         payments or other distributions to a Credit Party, or (if such
         declaring Subsidiary is a Foreign Subsidiary) to another Foreign
         Subsidiary, in each case to the extent not prohibited under applicable
         Requirements of Law; and

                  (c) as long as no Default or Event of Default exists or would
         be caused thereby and subject to the requirements set forth below, the
         Borrower may purchase, redeem, retire or otherwise acquire for value
         shares of its common Capital Stock (i) in an amount up to $5,000,000,
         in the aggregate, if prior to and after giving effect thereto, the
         Unused Revolving Commitment is greater than or equal to $20,000,000,
         and (ii) after the basket limitation in the foregoing clause (i) has
         been exhausted, in an amount up to $10,000,000, in the aggregate, for
         each twelve month period thereafter if prior to and after giving effect
         thereto (A) the Unused Revolving Commitment is greater than or equal to
         $25,000,000 and (B) the Leverage Ratio is less than or equal to 2.0 to
         1.0; provided that (1) with respect to one or more purchases,
         redemptions, retirements or acquisitions by the Borrower of its common
         Capital Stock during or over a period of time (up to one month), the
         Borrower shall notify the Administrative Agent at least three Business
         Days prior to the commencement thereof and the maximum dollar amount
         that may be expended in purchasing, redeeming, retiring or acquiring
         such common Capital Stock during such period and (2) within three
         Business Days after the end of each calendar month in which the
         Borrower has purchased, redeemed, retired or otherwise acquired for
         value shares of its common Capital Stock pursuant to this Section
         8.6(c), the Borrower shall deliver to the Administrative Agent a
         written certificate of a Responsible Officer in the form of Schedule
         8.6 (x) setting forth the number of shares purchased, redeemed, retired
         or acquired during the most recent month ended and the average price
         paid for such shares, (y) certifying that each such purchase,
         redemption, retirement or acquisition of shares complied with the terms
         of clauses (i) or (ii) above and (z) demonstrating compliance with the
         financial covenants in Section 8.14 on a Pro Forma Basis.

         8.7 TRANSACTIONS WITH AFFILIATES.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, enter into any transaction (including, without
limitation, any purchase, sale, lease or exchange of property or the rendering
of any service) with any officer, director, stockholder or other Affiliate of
any Credit Party or any Subsidiary, except in the ordinary course of its
business and upon fair and reasonable terms that are no less favorable to it
than would obtain in a comparable arm's length transaction with a Person other
than an Affiliate of such Credit Party or such Subsidiary; provided, however,
that nothing contained in this Section shall prohibit (a) transactions described
on Schedule 8.7 or otherwise expressly permitted under this Credit Agreement; or
(b) the payment by the Borrower of reasonable and customary fees to members of
its board of directors.

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         8.8 LINES OF BUSINESS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, engage in any business other than the provision of
practice management and consulting services to dental and orthodontic practices
and businesses and activities reasonably related thereto.

         8.9 CERTAIN AMENDMENTS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, amend, modify or change any provision of its
Organizational Documents, or the terms of any class or series of its Capital
Stock, if such amendment, modification or change could reasonably be expected to
adversely affect the Lenders.

         8.10 LIMITATION ON CERTAIN RESTRICTIONS.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any restriction or encumbrance on (a) the
ability of such Credit Party and its Subsidiaries to perform and comply with
their respective obligations under the Credit Documents or (b) the ability of
any Subsidiary of any Credit Party to make any dividend payments or other
distributions in respect of its Capital Stock, to repay Indebtedness owed to
such Credit Party or any other Subsidiary, to make loans or advances to such
Credit Party or any other Subsidiary, or to transfer any of its assets or
properties to such Credit Party or any other Subsidiary, in each case other than
such restrictions or encumbrances existing under or by reason of the Credit
Documents or applicable Requirements of Law.

         8.11 NO OTHER NEGATIVE PLEDGES.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, directly or indirectly, enter into or suffer to exist
any agreement or restriction that prohibits or conditions the creation,
incurrence or assumption of any Lien upon or with respect to any part of its
property or assets, whether now owned or hereafter acquired, or agree to do any
of the foregoing, other than as set forth in (a) this Credit Agreement and the
Collateral Documents, (b) any agreement or instrument creating a Permitted Lien
(but only to the extent such agreement or restriction applies only to the assets
subject to such Permitted Lien) and (c) operating leases of real or personal
property entered into by any Credit Party or any of its Subsidiaries as lessee
in the ordinary course of business.

         8.12 FISCAL YEAR.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, change the ending date of its fiscal year to a date
other than December 31.

         8.13 ACCOUNTING CHANGES.

         Each of the Credit Parties will not, and will not permit or cause any
of its Subsidiaries to, make or permit any material change in its accounting
policies or reporting practices, except as may be required or permitted by GAAP.

         8.14 FINANCIAL COVENANTS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
maintain the following financial covenants:

                  (a) Leverage Ratio. The Leverage Ratio as of any date shall be
         less than 3.0 to 1.0.

                  (b) Fixed Charge Coverage Ratio. The Fixed Charge Coverage
         Ratio (i) as of the last day of each fiscal quarter of the Borrower
         from the Closing Date through June 30, 2003, shall be greater than 1.35

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         to 1.0, (ii) as of the last day of each fiscal quarter of the Borrower
         from September 30, 2003 through December 31, 2003, shall be greater
         than 1.40 to 1.0; (iii) as of the last day of each fiscal quarter of
         the Borrower from March 31, 2004 through December 31, 2004, shall be
         the greater than 1.45 to 1.0 and (iv) as of the last day of each fiscal
         quarter of the Borrower from March 31, 2005 and thereafter, shall be
         greater than 1.5 to 1.0.

                  (c) Consolidated Net Worth. Consolidated Net Worth, as of the
         last day of each fiscal quarter of the Borrower, shall be greater than
         the sum of (a) $384,000,000 plus (b) 80% of the aggregate of
         Consolidated Net Income for each fiscal quarter ending after September
         30, 2002 without taking into account any losses for any such fiscal
         quarter plus (c) 90% of the aggregate amount of all increases in the
         stated capital and additional paid-in capital accounts of the Credit
         Parties and their Subsidiaries, as determined in accordance with GAAP,
         resulting from the issuance of equity securities (including pursuant to
         the exercise of options, rights or warrants or pursuant to the
         conversion of convertible securities) or other Capital Stock after
         September 30, 2002.

                  (d) Funded Debt to Total Patient Contract Balances.
         Consolidated Funded Debt, as of the last day of each fiscal quarter of
         the Borrower, shall be less than 30% of Total Patient Contract Balances
         as of such date.

                                    SECTION 9

                                EVENTS OF DEFAULT

         9.1 EVENT OF DEFAULT.

         An event of default shall exist upon the occurrence, and during the
continuation, of any of the following specified events (each an "Event of
Default"):

                  (a) Payment. The Borrower shall fail to pay (i) any principal
         of any Loan when due or (ii) any interest on any Loan (including
         interest payable to the Alternative Rate Lender), any fee or any other
         Credit Party Obligation when due, and in the case of clause (ii) only,
         such failure shall continue unremedied for a period of two or more
         Business Days. Any Guarantor shall fail to pay when due any of its
         obligations under the Guaranty.

                  (b) Covenants.

                           (i) Any Credit Party shall fail to observe, perform
                  or comply with any condition, covenant or agreement contained
                  in Sections 7.2(e)(i), 7.3(a), 7.9, 7.10, 7.11 or Sections 8.1
                  through 8.14, inclusive.

                           (ii) Any Credit Party or any of its Subsidiaries
                  shall fail to observe, perform or comply with any condition,
                  covenant or agreement contained in this Credit Agreement or
                  any of the other Credit Documents other than those enumerated
                  in subsections (a) and (b)(i) above, and such failure shall
                  continue unremedied for any grace period specifically
                  applicable thereto or, if no such grace period is applicable,
                  for a period of (A) five days in the case of the covenants set
                  forth in Sections 7.1 and 7.2 (other than 7.2(e)(i)) and (B)
                  thirty days in all other instances, in each case under clauses
                  (A) and (B) above after the earlier of (x) the date on which a
                  Responsible Officer of the Credit Party or such Subsidiary
                  acquires or should have acquired knowledge thereof and (y) the
                  date on which written notice thereof is delivered by the
                  Administrative Agent or any Lender to the Borrower.

                  (c) Representations. Any representation or warranty made or
         deemed made by or on behalf of any Credit Party or any of its
         Subsidiaries in this Credit Agreement, any of the other Credit
         Documents or in any certificate, instrument, report or other document
         furnished in connection herewith or therewith or in

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         connection with the transactions contemplated hereby or thereby shall
         prove to have been false or misleading in any material respect as of
         the time made, deemed made or furnished.

                  (d) Defaults Under Other Indebtedness. Any Credit Party or any
         of its Subsidiaries shall (i) fail to pay when due (whether by
         scheduled maturity, acceleration or otherwise and after giving effect
         to any applicable grace period) (A) any principal of or interest on any
         Indebtedness (other than the Indebtedness incurred pursuant to this
         Credit Agreement) having an aggregate principal amount of at least
         $2,500,000 or (B) any termination or other payment under any Hedging
         Agreement covering a notional amount of Indebtedness of at least
         $2,500,000 or (ii) fail to observe, perform or comply with any
         condition, covenant or agreement contained in any agreement or
         instrument evidencing or relating to any such Indebtedness, or any
         other event shall occur or condition exist in respect thereof, and the
         effect of such failure, event or condition is to cause, or permit, the
         holder or holders of such Indebtedness (or a trustee or agent on its or
         their behalf) to cause (with the giving of notice, lapse of time, or
         both), such Indebtedness to become due, or to be prepaid, redeemed,
         purchased or defeased, prior to its stated maturity.

                  (e) Voluntary Bankruptcy. Any Credit Party or any of its
         Subsidiaries (other than a De Minimis Subsidiary) shall (i) file a
         voluntary petition or commence a voluntary case seeking liquidation,
         winding-up, reorganization, dissolution, arrangement, readjustment of
         debts or any other relief under the Bankruptcy Code or under any other
         Debtor Relief Law now or hereafter in effect, (ii) consent to the
         institution of, or fail to controvert in a timely and appropriate
         manner, any petition or case of the type described in subsection (f)
         below, (iii) apply for or consent to the appointment of or taking
         possession by a custodian, trustee, receiver or similar official for or
         of itself or all or a substantial part of its Properties or assets,
         (iv) fail generally, or admit in writing its inability, to pay its
         debts as they become due, (v) make a general assignment for the benefit
         of creditors or (vi) take any corporate action to authorize or approve
         any of the foregoing.

                  (f) Involuntary Bankruptcy. Any involuntary petition or case
         shall be filed or commenced against any Credit Party or any of its
         Subsidiaries (other than a De Minimis Subsidiary) seeking liquidation,
         winding-up, reorganization, dissolution, arrangement, readjustment of
         debts, the appointment of a custodian, trustee, receiver or similar
         official for it or all or a substantial part of its Properties or any
         other relief under the Bankruptcy Code or under any other Debtor Relief
         Law hereafter in effect, and such petition or case shall continue
         undismissed and unstayed for a period of sixty days or an order,
         judgment or decree approving or ordering any of the foregoing shall be
         entered in any such proceeding.

                  (g) Judgments. Any one or more money judgments, writs or
         warrants of attachment, executions or similar processes involving an
         aggregate amount (exclusive of amounts fully bonded or covered by
         insurance as to which the surety or insurer, as the case may be, has
         acknowledged its liability in writing and that carry a deductible not
         exceeding $10,000 in the aggregate) in excess of $2,500,000 shall be
         entered or filed against any Credit Party or any of its Subsidiaries or
         any of their respective Properties and the same shall not be dismissed,
         stayed or discharged for a period of thirty days or in any event later
         than five days prior to the date of any proposed sale thereunder.

                  (h) Credit Documents. (i) Any Credit Document shall fail to be
         in full force and effect or any Credit Party shall so assert, (ii) any
         Collateral Document shall for any reason fail to give the Collateral
         Agent a valid and perfected security interest in and Lien upon the
         Collateral purported to be covered thereby, subject to no Liens other
         than Permitted Liens (or any Credit Party shall so assert), in each
         case unless any such failure is due to any act or failure to act on the
         part of the Collateral Agent or any Lender, or (iii) any Guarantor or
         any Person acting on behalf of any such Guarantor shall deny or
         disaffirm its obligations under the Guaranty.

                  (i) ERISA. Any ERISA Event or any other event or condition
         shall occur or exist with respect to any Plan and, as a result thereof,
         together with all other ERISA Events and other events or conditions
         then existing, the Credit Parties, their Subsidiaries and the ERISA
         Affiliates have incurred or

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         would be reasonably likely to incur liability to any one or more Plans
         or to the PBGC (or to any combination thereof) in excess of $2,500,000.

                  (j) Limitation on Licenses or Reimbursement Approvals. There
         shall occur (i) a Limitation with respect to any one or more Licenses
         or Reimbursement Approvals of any Credit Party, any of its Subsidiaries
         or any Affiliated Practice, or any other action shall be taken by any
         Governmental Authority or other Person in response to any alleged
         failure by such Credit Party, such Subsidiary or such Affiliated
         Practice to be in compliance with applicable Requirements of Law, and
         such Limitation or other action, individually or in the aggregate, has
         had or would be reasonably likely to have a Material Adverse Effect or
         (ii) any introduction of or change in any Requirement of Law (or in the
         interpretation or administration thereof by any Governmental Authority)
         governing or affecting any Credit Party, any of its Subsidiaries or any
         Affiliated Practice, and such introduction or change, individually or
         in the aggregate, has had or would be reasonably likely to have a
         Material Adverse Effect.

                  (k) Termination of Contracts. Any one or more agreements or
         contracts to which any Credit Party or any of its Subsidiaries is a
         party shall be terminated or shall, for any other reason, fail to be in
         full force and effect and enforceable in accordance with its terms, and
         such event or condition, together with all other such events or
         conditions, if any, has had or would be reasonably likely to have a
         Material Adverse Effect.

                  (l) Casualty Loss. There shall occur (i) any uninsured damage
         to, or loss, theft or destruction of, any Collateral or other
         Properties of the Credit Parties and their Subsidiaries having an
         aggregate fair market value in excess of $2,500,000 or (ii) any labor
         dispute, act of God or other casualty that has had or would be
         reasonably likely to have a Material Adverse Effect.

                  (m) Change of Control. Any of the following shall occur: (i)
         any Person or group of Persons acting in concert as a partnership or
         other group shall, as a result of a tender or exchange offer, open
         market purchases, privately negotiated purchases or otherwise, have
         become, after the date hereof, the "beneficial owner" (within the
         meaning of such term under Rule 13d-3 under the Exchange Act) of
         Capital Stock of the Borrower representing 30% or more of the combined
         voting power of the then outstanding Capital Stock of the Borrower
         ordinarily (and apart from rights accruing under special circumstances)
         having the right to vote in the election of directors or (ii) the Board
         of Directors of the Borrower shall cease to consist of a majority of
         the individuals (A) who constituted the Board of Directors as of the
         Closing Date or (B) who shall have become a member thereof subsequent
         to the Closing Date after having been nominated, or otherwise approved
         in writing, by at least a majority of individuals who constituted the
         Board of Directors of the Borrower as of the Closing Date (or their
         replacements approved as herein required).

         9.2 ACCELERATION; REMEDIES.

         Upon the occurrence and during the continuation of an Event of Default,
the Administrative Agent may or, upon the request and direction of the Required
Lenders, shall take the following actions without prejudice to the rights of any
Agent or any Lender to enforce its claims against the Credit Parties, except as
otherwise specifically provided for herein:

                  (a) Termination of Commitments. Declare the Commitments and
         the obligation of the L/C Issuer to make L/C Credit Extensions
         terminated whereupon the Commitments and the obligation of the L/C
         Issuer to make L/C Credit Extensions shall be immediately terminated.

                  (b) Acceleration of Loans. Declare the unpaid principal of and
         any accrued interest in respect of all Loans, all L/C Obligations and
         any and all other Credit Party Obligations of any and every kind owing
         by a Credit Party to any of the Agents or Lenders under the Credit
         Documents to be due, whereupon the same shall be immediately due and
         payable without presentment, demand, protest or other notice of any
         kind, all of which are hereby waived by the Credit Parties.

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                  (c) Cash Collateral. Direct the Borrower to Cash Collateralize
         (and the Borrower agrees that upon receipt of such notice, or upon the
         occurrence of an Event of Default under Section 9.1(e) or (f), it will
         immediately Cash Collateralize) L/C Obligations in respect of
         subsequent drawings under all then outstanding Letters of Credit in an
         amount equal to the then outstanding principal amount of L/C
         Obligations.

                  (d) Enforcement of Rights. To the extent permitted by Law,
         enforce (and direct the Collateral Agent to enforce) any and all rights
         and interests created and existing under applicable Law and under the
         Credit Documents, including, without limitation, all rights and
         remedies existing under the Collateral Documents, all rights and
         remedies against a Guarantor and all rights of set-off.

                  (e) Alternative Rate Agreements. At any time following the
         occurrence of an Event of Default, the Alternative Rate Lender may, in
         its sole discretion, by notice to the Borrower and the Administrative
         Agent, terminate the Alternative Rate Agreement and cause the
         Alternative Rate applicable to any Loan or any portion thereof to
         revert to the Original Rate or, if applicable, the Default Rate for
         such Loan; it being understood that (i) interest on any unpaid
         Alternative Rate Loan after the last Interest Payment Date to occur
         prior to the Event of Default shall accrue at the Original Rate and
         (ii) the Borrower shall be liable to the Alternative Rate Lender for
         any Alternative Rate Breakage Amount.

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) or (f) shall occur, then the Commitments and any obligation of the L/C
Issuer to make L/C Credit Extensions shall automatically terminate and all
Loans, all L/C Obligations, all accrued interest in respect thereof, all accrued
and unpaid fees and other Credit Party Obligations owing to the Agents and the
Lenders hereunder shall immediately become due and payable without the giving of
any notice or other action by the Administrative Agent or the Lenders, which
notice or other action is expressly waived by the Credit Parties.

Notwithstanding the fact that enforcement powers reside primarily with the
Administrative Agent, each Lender has, to the extent permitted by Law, a
separate right of payment and shall be considered a separate "creditor" holding
a separate "claim" within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.

         9.3 ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

         Notwithstanding any other provisions of this Credit Agreement, after
the occurrence and during the continuation of an Event of Default, all amounts
collected or received by any Agent or any Lender on account of amounts
outstanding under any of the Credit Documents shall be paid over or delivered as
follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including the reasonable fees and expenses of legal
         counsel) of the Agents, the L/C Issuer, the Alternative Rate Lender or
         any of the Lenders in connection with enforcing the rights of the
         Agents, the Alternative Rate Lender, the L/C Issuer and the Lenders
         under the Credit Documents, ratably among them in proportion to the
         amounts described in this clause "FIRST" payable to them;

                  SECOND, to payment of any fees owed to the Agents, the
         Alternative Rate Lender, the L/C Issuer or any Lender, ratably among
         them in proportion to the amounts described in this clause "SECOND"
         payable to them;

                  THIRD, to the payment of all accrued interest payable to the
         Lenders, the Alternative Rate Lender and the L/C Issuer hereunder,
         ratably among them in proportion to the amounts described in this
         clause "THIRD" payable to them;

                  FOURTH, to the payment of the outstanding principal amount of
         the Loans and L/C Obligations and to any principal amounts outstanding
         under Hedging Agreements between a Credit Party and a Lender or an
         Affiliate of a Lender, ratably among them in proportion to the amounts
         described in this clause "FOURTH" payable to them;

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                  FIFTH, to the Administrative Agent, for the account of the L/C
         Issuer, to Cash Collateralize that portion of the L/C Obligations
         comprised of the aggregate undrawn amount of Letters of Credit;

                  SIXTH, to all other Credit Party Obligations which shall have
         become due and payable under the Credit Documents and not repaid
         pursuant to clauses "FIRST" through "FIFTH" above, ratably among the
         holders of such Credit Party Obligations in proportion to the amounts
         described in this clause "SIXTH" payable to them; and

                  SEVENTH, the payment of the surplus, if any, to whomever may
         be lawfully entitled to receive such surplus.

Amounts used to Cash Collateralize the aggregate undrawn amount of Letters of
Credit pursuant to clause "FIFTH" above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as
cash collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Credit Party
Obligations, if any, in the order set forth above.

                                   SECTION 10

                                AGENCY PROVISIONS

         10.1 APPOINTMENT AND AUTHORIZATION OF AGENTS.

                  (a) Each Lender hereby irrevocably appoints, designates and
         authorizes each of the Agents to take such action on its behalf under
         the provisions of this Credit Agreement and each other Credit Document
         and to exercise such powers and perform such duties as are expressly
         delegated to it by the terms of this Credit Agreement or any other
         Credit Document, together with such powers as are reasonably incidental
         thereto. Notwithstanding any provision to the contrary contained
         elsewhere herein or in any other Credit Document, the Agents shall not
         have any duties or responsibilities, except those expressly set forth
         herein, nor shall the Agents have or be deemed to have any fiduciary
         relationship with any Lender or participant, and no implied covenants,
         functions, responsibilities, duties, obligations or liabilities shall
         be read into this Credit Agreement or any other Credit Document or
         otherwise exist against the Agents. Without limiting the generality of
         the foregoing sentence, the use of the term "agent" herein and in the
         other Credit Documents with reference to either Agent is not intended
         to connote any fiduciary or other implied (or express) obligations
         arising under agency doctrine of any applicable Requirement of Law.
         Instead, such term is used merely as a matter of market custom, and is
         intended to create or reflect only an administrative relationship
         between independent contracting parties.

                  (b) The L/C Issuer shall act on behalf of the Lenders with
         respect to any Letters of Credit issued by it and the documents
         associated therewith, and the L/C Issuer shall have all of the benefits
         and immunities (i) provided to the Agents in this Section 10 with
         respect to any acts taken or omissions suffered by the L/C Issuer in
         connection with Letters of Credit issued by it or proposed to be issued
         by it and the applications and agreements for letters of credit
         pertaining to such Letters of Credit as fully as if the term "Agents"
         as used in this Section 10 and in the definition of "Agent-Related
         Person" included the L/C Issuer with respect to such acts or omissions,
         and (ii) as additionally provided herein with respect to the L/C
         Issuer.

         10.2 DELEGATION OF DUTIES.

         Each of the Agents may execute any of its duties under this Credit
Agreement or any other Credit Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. No
Agent shall be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct.

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         10.3 LIABILITY OF AGENTS.

         No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Credit
Agreement or any other Credit Document or the transactions contemplated hereby
(except for its own gross negligence or willful misconduct in connection with
its duties expressly set forth herein), or (b) be responsible in any manner to
any Lender or participant for any recital, statement, representation or warranty
made by any Credit Party or any officer thereof, contained herein or in any
other Credit Document, or in any certificate, report, statement or other
document referred to or provided for in, or received by an Agent under or in
connection with, this Credit Agreement or any other Credit Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Credit Agreement or any other Credit Document, or for any failure of any Credit
Party or any other party to any Credit Document to perform its obligations
hereunder or thereunder. No Agent-Related Person shall be under any obligation
to any Lender or participant to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Credit
Agreement or any other Credit Document, or to inspect the properties, books or
records of any Credit Party or any Affiliate thereof.

         10.4 RELIANCE BY AGENTS.

                  (a) Each Agent shall be entitled to rely, and shall be fully
         protected in relying, upon any writing, communication, signature,
         resolution, representation, notice, consent, certificate, affidavit,
         letter, telegram, facsimile, telex or telephone message, electronic
         mail message, statement or other document or conversation believed by
         it to be genuine and correct and to have been signed, sent or made by
         the proper Person or Persons, and upon advice and statements of legal
         counsel (including counsel to any Credit Party), independent
         accountants and other experts selected by such Agent. Each Agent shall
         be fully justified in failing or refusing to take any action under any
         Credit Document unless it shall first receive such advice or
         concurrence of the Required Lenders as it deems appropriate and, if it
         so requests, it shall first be indemnified to its satisfaction by the
         Lenders against any and all liability and expense which may be incurred
         by it by reason of taking or continuing to take any such action. Each
         Agent shall in all cases be fully protected in acting, or in refraining
         from acting, under this Credit Agreement or any other Credit Document
         in accordance with a request or consent of the Required Lenders (or
         such greater number of Lenders as may be expressly required hereby in
         any instance) and such request and any action taken or failure to act
         pursuant thereto shall be binding upon all the Lenders.

                  (b) For purposes of determining compliance with the conditions
         specified in Section 5.1, each Lender that has signed this Credit
         Agreement shall be deemed to have consented to, approved or accepted or
         to be satisfied with, each document or other matter required thereunder
         to be consented to or approved by or acceptable or satisfactory to a
         Lender unless the Administrative Agent shall have received notice from
         such Lender prior to the proposed Closing Date specifying its objection
         thereto.

         10.5 NOTICE OF DEFAULT.

         No Agent shall be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless such Agent shall
have received written notice from a Lender or the Borrower referring to this
Credit Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default." Each Agent will notify the Lenders of its
receipt of any such notice. Each of the Agents shall take such action with
respect to such Default or Event of Default as may be directed by the Required
Lenders in accordance with Section 9; provided, however, that unless and until
such Agent has received any such direction, such Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable or in the best
interest of the Lenders.

         10.6 CREDIT DECISION; DISCLOSURE OF INFORMATION BY AGENTS.

         Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by an Agent hereafter taken,
including any consent to and acceptance of any assignment or review of the

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affairs of any Credit Party or any Affiliate thereof, shall be deemed to
constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material information in their possession. Each Lender represents to the Agents
that it has, independently and without reliance upon any Agent-Related Person
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Credit
Parties and their respective Subsidiaries, and all applicable bank or other
regulatory Requirement of Laws relating to the transactions contemplated hereby,
and made its own decision to enter into this Credit Agreement and to extend
credit to the Borrower hereunder. Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Credit Agreement and the other Credit Documents,
and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower and the other Credit Parties. Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Administrative Agent herein, the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of any of the Credit Parties or any of
their respective Affiliates which may come into the possession of any
Agent-Related Person.

         10.7 INDEMNIFICATION OF AGENTS.

         Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent
not reimbursed by or on behalf of any Credit Party and without limiting the
obligation of any Credit Party to do so), on a pro rata basis, and hold harmless
each Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related
Person's own gross negligence or willful misconduct; provided further, however,
that no action taken in accordance with the directions of the Required Lenders
shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section. Without limitation of the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for its ratable share of any
costs or out-of-pocket expenses (including, without limitation, the reasonable
fees and expenses of legal counsel) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Credit Agreement, any other Credit Document, or any
document contemplated by or referred to herein, to the extent that the
Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The undertaking in this Section shall survive termination of the
Commitments, the payment of all Credit Party Obligations and the resignation of
the Administrative Agent.

         10.8 AGENTS IN THEIR INDIVIDUAL CAPACITY.

         Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Credit Parties and their respective
Affiliates as though Bank of America were not the Administrative Agent, the
Collateral Agent, the Alternative Rate Lender or the L/C Issuer hereunder and
without notice to or consent of the Lenders. The Lenders acknowledge that,
pursuant to such activities, Bank of America or its Affiliates may receive
information regarding any Credit Party or its Affiliates (including information
that may be subject to confidentiality obligations in favor of such Credit Party
or such Affiliate) and acknowledge that the Agents shall be under no obligation
to provide such information to them. With respect to its Loans, Bank of America
shall have the same rights and powers under this Credit Agreement as any other
Lender and may exercise such rights and powers as though it were not the
Administrative Agent, the Collateral Agent, the Alternative Rate Lender or the
L/C Issuer, and the terms "Lender" and "Lenders" include Bank of America in its
individual capacity.

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         10.9 SUCCESSOR AGENT.

         The Administrative Agent may resign as Administrative Agent upon 30
days' notice to the Lenders; provided that any such resignation by Bank of
America shall also constitute its resignation as Collateral Agent and as L/C
Issuer and may, at the option of Bank of America, constitute its resignation as
Alternative Rate Lender. If the Administrative Agent resigns under this Credit
Agreement, the Required Lenders shall appoint from among the Lenders a successor
Administrative Agent for the Lenders, which successor Administrative Agent shall
be consented to by the Borrower at all times other than during the existence of
an Event of Default (which consent of the Borrower shall not be unreasonably
withheld or delayed). If no successor Administrative Agent is appointed prior to
the effective date of the resignation of the retiring Administrative Agent, the
retiring Administrative Agent may appoint, after consulting with the Lenders and
the Borrower, a successor Administrative Agent from among the Lenders. Upon the
acceptance of its appointment as successor Administrative Agent hereunder, the
Person acting as such successor Administrative Agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent, the retiring
Collateral Agent, the retiring L/C Issuer and, if applicable, the retiring
Alternative Rate Lender, and the respective terms "Administrative Agent", "L/C
Issuer" and, if applicable, "Alternative Rate Lender", shall mean such successor
Administrative Agent, L/C Issuer, and, if applicable, Alternative Rate Lender
and the retiring Administrative Agent's appointment, powers and duties as
Administrative Agent shall be terminated and the retiring Collateral Agent's,
the retiring L/C Issuer's and, if applicable, the retiring Alternative Rate
Lender's rights, powers and duties as such shall be terminated, without any
other or further act or deed on the part of the retiring Collateral Agent, the
retiring L/C Issuer and, if applicable, the retiring Alternative Rate Lender, or
any other Lender, other than (a) the obligation of the retiring Collateral Agent
to deliver any Collateral in its possession to the successor Collateral Agent,
(b) the obligation of the successor L/C Issuer to issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or to make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect to
such Letters of Credit and (c) the obligation of the successor Alternative Rate
Lender to enter into Alternative Rate Agreements with the Borrower in
substitution for the Alternative Rate Agreements, if any, existing at the time
of such succession. After any retiring Agent's resignation hereunder as an
Agent, the provisions of this Section 10 and Section 11.5 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was an
Agent under this Credit Agreement. If no successor Administrative Agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective
and the Lenders shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor
Administrative Agent as provided for above.

         10.10 ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Credit Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then
be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

                  (a) to file and prove a claim for the whole amount of the
         principal and interest owing and unpaid in respect of the Loans, L/C
         Obligations and all other Credit Party Obligations that are owing and
         unpaid and to file such other documents as may be necessary or
         advisable in order to have the claims of the Lenders and the Agents
         (including any claim for the reasonable compensation, expenses,
         disbursements and advances of the Lenders and the Agents and their
         respective agents and counsel and all other amounts due the Lenders and
         the Agents under Sections 3.4 and 11.5) allowed in such judicial
         proceeding; and

                  (b) to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the

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event that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 3.4 and 11.5.

         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Credit Party Obligations or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender
in any such proceeding.

         10.11 COLLATERAL AND GUARANTY MATTERS.

         The Lenders irrevocably authorize each of the Agents, at its option and
in its discretion,

                  (a) to release any Lien on any property granted to or held by
         such Agent under any Credit Document (i) upon termination of the
         Commitments and payment in full of all Credit Party Obligations (other
         than contingent indemnification obligations) and the expiration or
         termination of all Letters of Credit, (ii) that is sold or to be sold
         as part of or in connection with any sale permitted hereunder or under
         any other Credit Document, or (iii) subject to Section 11.6, if
         approved, authorized or ratified in writing by the Required Lenders or
         the Lenders, as applicable;

                  (b) to subordinate any Lien on any property granted to or held
         by such Agent under any Credit Document to the holder of any Lien on
         such property that is permitted by Section 8.3; and

                  (c) to release any Guarantor from its obligations under the
         Guaranty if such Person ceases to be a Subsidiary as a result of a
         transaction permitted hereunder.

         Upon request by any Agent at any time, the Required Lenders will
confirm in writing such Agent's authority to release or subordinate its interest
in particular types or items of property, or to release any Guarantor from its
obligations under the Guaranty pursuant to this Section 10.11.

         10.12 OTHER AGENTS; ARRANGERS AND MANAGERS.

         None of the Lenders or other Persons identified on the facing page or
signature pages of this Credit Agreement as a "syndication agent,"
"documentation agent," "co-agent," "book manager," "lead manager," "arranger,"
"lead arranger" or "co-arranger" shall have any right, power, obligation,
liability, responsibility or duty under this Credit Agreement other than, in the
case of such Lenders, those applicable to all Lenders as such. Without limiting
the foregoing, none of the Lenders or other Persons so identified shall have or
be deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other Persons so identified in deciding to enter into this Credit Agreement or
in taking or not taking action hereunder.

                                   SECTION 11

                                  MISCELLANEOUS

         11.1 NOTICES AND OTHER COMMUNICATIONS; FACSIMILE COPIES.

                  (a) General. Unless otherwise expressly provided herein, all
         notices and other communications provided for hereunder shall be in
         writing (including by facsimile transmission). All such written notices
         shall be mailed, faxed or delivered to the applicable address,
         facsimile number or (subject to subsection (c) below) electronic mail
         address, and all notices and other communications expressly permitted
         hereunder to be given by telephone shall be made to the applicable
         telephone number, as follows:

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                           (i) if to the Borrower, the Administrative Agent, the
                  Collateral Agent or the L/C Issuer, to the address, facsimile
                  number, electronic mail address or telephone number specified
                  for such Person on Schedule 11.1 or to such other address,
                  facsimile number, electronic mail address or telephone number
                  as shall be designated by such party in a notice to the other
                  parties; and

                           (ii) if to any other Lender, to the address,
                  facsimile number, electronic mail address or telephone number
                  specified in its Administrative Questionnaire or to such other
                  address, facsimile number, electronic mail address or
                  telephone number as shall be designated by such party in a
                  notice to the Borrower, the Administrative Agent, the
                  Collateral Agent and the L/C Issuer.

         All such notices and other communications shall be deemed to be given
         or made upon the earlier to occur of (i) actual receipt by the relevant
         party hereto and (ii) (A) if delivered by hand or by courier, when
         signed for by or on behalf of the relevant party hereto; (B) if
         delivered by mail, four Business Days after deposit in the mails,
         postage prepaid; (C) if delivered by facsimile, when sent and receipt
         has been confirmed by telephone; and (D) if delivered by electronic
         mail (which form of delivery is subject to the provisions of subsection
         (c) below), when delivered; provided, however, that notices and other
         communications to the Administrative Agent and the L/C Issuer pursuant
         to Section 2 shall not be effective until actually received by such
         Person. In no event shall a voicemail message be effective as a notice,
         communication or confirmation hereunder.

                  (b) Effectiveness of Facsimile Documents and Signatures.
         Credit Documents may be transmitted and/or signed by facsimile. The
         effectiveness of any such documents and signatures shall, subject to
         applicable Requirement of Law, have the same force and effect as
         manually-signed originals and shall be binding on all Credit Parties,
         the Agents and the Lenders. The Administrative Agent may also require
         that any such documents and signatures be confirmed by a
         manually-signed original thereof; provided, however, that the failure
         to request or deliver the same shall not limit the effectiveness of any
         facsimile document or signature.

                  (c) Limited Use of Electronic Mail. Electronic mail and
         Internet and intranet websites may be used only to distribute routine
         communications, such as financial statements and other information as
         provided in Section 7.1 and 7.2, and to distribute Credit Documents for
         execution by the parties thereto, and may not be used for any other
         purpose.

                  (d) Reliance by Agents and Lenders. The Agents and the Lenders
         shall be entitled to rely and act upon any notices (including
         telephonic Notices of Borrowing) purportedly given by or on behalf of
         the Borrower even if (i) such notices were not made in a manner
         specified herein, were incomplete or were not preceded or followed by
         any other form of notice specified herein, or (ii) the terms thereof,
         as understood by the recipient, varied from any confirmation thereof.
         The Borrower shall indemnify each Agent-Related Person and each Lender
         from all losses, costs, expenses and liabilities resulting from the
         reliance by such Person on each notice purportedly given by or on
         behalf of the Borrower. All telephonic notices to and other
         communications with an Agent may be recorded by such Agent, and each of
         the parties hereto hereby consents to such recording.

         11.2 RIGHT OF SET-OFF.

         In addition to any rights now or hereafter granted under applicable Law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence of an Event of Default and the commencement of remedies described in
Section 9.2, each Lender is authorized at any time and from time to time,
without presentment, demand, protest or other notice of any kind (all of which
rights being hereby expressly waived), to set-off and to appropriate and apply
any and all deposits (general or special) and any other indebtedness at any time
held or owing by such Lender (including, without limitation, branches, agencies
or Affiliates of such Lender wherever located) to or for the credit or the
account of any Credit Party against obligations and liabilities of the Credit
Parties to the Lenders hereunder, under the Notes, the other Credit Documents or
otherwise, irrespective of whether the Administrative Agent or the Lenders shall
have made any demand hereunder and although such obligations, liabilities or
claims, or any of them, may be contingent or

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unmatured, and any such set-off shall be deemed to have been made immediately
upon the occurrence of an Event of Default even though such charge is made or
entered on the books of such Lender subsequent thereto. The Credit Parties
hereby agree that any Person purchasing a participation in the Loans and
Commitments hereunder pursuant to Sections 3.8 or 11.3(e) may exercise all
rights of set-off with respect to its participation interest as fully as if such
Person were a Lender hereunder. Each of the Administrative Agent and the Lenders
acknowledges that a portion of the deposits and other funds of the Credit
Parties and their Subsidiaries held in accounts with the Administrative Agent
and the Lenders, if any, may consist of funds owned by one or more Affiliated
Practices but held by the Credit Parties and their Subsidiaries on behalf of
such Affiliated Practice(s).

         11.3 SUCCESSORS AND ASSIGNS.

                  (a) The provisions of this Credit Agreement shall be binding
         upon and inure to the benefit of the parties hereto and their
         respective successors and assigns permitted hereby, except that the
         Borrower may not assign or otherwise transfer any of its rights or
         obligations hereunder without the prior written consent of each Lender
         and no Lender may assign or otherwise transfer any of its rights or
         obligations hereunder except (i) to an Eligible Assignee in accordance
         with the provisions of subsection (b) of this Section, (ii) by way of
         participation in accordance with the provisions of subsection (d) of
         this Section, or (iii) by way of pledge or assignment of a security
         interest subject to the restrictions of subsection (f) or (i) of this
         Section, or (iv) to an SPC in accordance with the provisions of
         subsection (g) of this Section (and any other attempted assignment or
         transfer by any party hereto shall be null and void). Nothing in this
         Credit Agreement, expressed or implied, shall be construed to confer
         upon any Person (other than the parties hereto, their respective
         successors and assigns permitted hereby, Participants to the extent
         provided in subsection (d) of this Section and, to the extent expressly
         contemplated hereby, the Indemnitees) any legal or equitable right,
         remedy or claim under or by reason of this Credit Agreement.

                  (b) Any Lender may at any time assign to one or more Eligible
         Assignees all or a portion of its rights and obligations under this
         Credit Agreement (including all or a portion of its Commitment and the
         Loans (including for purposes of this subsection (b) Participation
         Interests in L/C Obligations) at the time owing to it); provided that
         (i) except in the case of an assignment of the entire remaining amount
         of the assigning Lender's Commitment and the Loans at the time owing to
         it or in the case of an assignment to a Lender or an Affiliate of a
         Lender or an Approved Fund (as defined in subsection (g) of this
         Section) with respect to a Lender, the aggregate amount of the
         Commitment (which for this purpose includes Loans outstanding
         thereunder) subject to each such assignment, determined as of the date
         the Assignment and Assumption with respect to such assignment is
         delivered to the Administrative Agent or, if "Trade Date" is specified
         in the Assignment and Assumption, as of the Trade Date, shall not be
         less than $5,000,000 unless each of the Administrative Agent and, so
         long as no Event of Default has occurred and is continuing, the
         Borrower otherwise consents (each such consent not to be unreasonably
         withheld or delayed); (ii) each partial assignment shall be made as an
         assignment of a proportionate part of all the assigning Lender's rights
         and obligations under this Credit Agreement with respect to the Loans
         or the Commitment assigned, (iii) any assignment of a Commitment must
         be approved by the Administrative Agent and the L/C Issuer unless the
         Person that is the proposed assignee is itself a Lender (whether or not
         the proposed assignee would otherwise qualify as an Eligible Assignee);
         and (iv) the parties to each assignment shall execute and deliver to
         the Administrative Agent an Assignment and Assumption, together with a
         processing and recordation fee of $3,500. Subject to acceptance and
         recording thereof by the Administrative Agent pursuant to subsection
         (c) of this Section, from and after the effective date specified in
         each Assignment and Assumption, the Eligible Assignee thereunder shall
         be a party to this Credit Agreement and, to the extent of the interest
         assigned by such Assignment and Assumption, have the rights and
         obligations of a Lender under this Credit Agreement, and the assigning
         Lender thereunder shall, to the extent of the interest assigned by such
         Assignment and Assumption, be released from its obligations under this
         Credit Agreement (and, in the case of an Assignment and Assumption
         covering all of the assigning Lender's rights and obligations under
         this Credit Agreement, such Lender shall cease to be a party hereto but
         shall continue to be entitled to the benefits of Sections 3.9, 3.12,
         3.13, 3.14, and 11.5(b) with respect to facts and circumstances
         occurring prior to the effective date of such assignment). Upon
         request, the Borrower (at its expense) shall execute and deliver a Note
         to the assignee Lender. Any assignment or transfer by a Lender of
         rights or obligations

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         under this Credit Agreement that does not comply with this subsection
         shall be treated for purposes of this Credit Agreement as a sale by
         such Lender of a participation in such rights and obligations in
         accordance with subsection (d) of this Section.

                  (c) The Administrative Agent, acting solely for this purpose
         as an agent of the Borrower, shall maintain at the Administrative
         Agent's Office located in Charlotte, North Carolina a copy of each
         Assignment and Assumption delivered to it and a register for the
         recordation of the names and addresses of the Lenders, and the
         Commitments of, and principal amounts of the Loans and L/C Obligations
         owing to, each Lender pursuant to the terms hereof from time to time
         (the "Register"). The entries in the Register shall be conclusive, and
         the Borrower, the Administrative Agent and the Lenders may treat each
         Person whose name is recorded in the Register pursuant to the terms
         hereof as a Lender hereunder for all purposes of this Credit Agreement,
         notwithstanding notice to the contrary. The Register shall be available
         for inspection by the Borrower and any Lender, at any reasonable time
         and from time to time upon reasonable prior notice.

                  (d) Any Lender may at any time, without the consent of, or
         notice to, the Borrower or the Administrative Agent, sell
         participations to any Person (other than a natural person or the
         Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a
         "Participant") in all or a portion of such Lender's rights and/or
         obligations under this Credit Agreement (including all or a portion of
         its Commitment and/or the Loans (including such Lender's participations
         in L/C Obligations) owing to it); provided that (i) such Lender's
         obligations under this Credit Agreement shall remain unchanged, (ii)
         such Lender shall remain solely responsible to the other parties hereto
         for the performance of such obligations and (iii) the Borrower, the
         Administrative Agent and the other Lenders shall continue to deal
         solely and directly with such Lender in connection with such Lender's
         rights and obligations under this Credit Agreement. Any agreement or
         instrument pursuant to which a Lender sells such a participation shall
         provide that such Lender shall retain the sole right to enforce this
         Credit Agreement and to approve any amendment, modification or waiver
         of any provision of this Credit Agreement; provided that such agreement
         or instrument may provide that such Lender will not, without the
         consent of the Participant, agree to any amendment, waiver or other
         modification described in the first proviso to Section 11.6 that
         directly affects such Participant. Subject to subsection (e) of this
         Section, the Borrower agrees that each Participant shall be entitled to
         the benefits of Sections 3.9, 3.12, 3.13 and 3.14 to the same extent as
         if it were a Lender and had acquired its interest by assignment
         pursuant to subsection (b) of this Section. To the extent permitted by
         Law, each Participant also shall be entitled to the benefits of Section
         3.7 as though it were a Lender, provided such Participant agrees to be
         subject to Section 3.8 as though it were a Lender.

                  (e) A Participant shall not be entitled to receive any greater
         payment under Section 3.9, 3.12, 3.13 or 3.14 than the applicable
         Lender would have been entitled to receive with respect to the
         participation sold to such Participant, unless the sale of the
         participation to such Participant is made with the Borrower's prior
         written consent. A Participant that would be a Foreign Lender if it
         were a Lender shall not be entitled to the benefits of Section 3.13
         unless the Borrower is notified of the participation sold to such
         Participant and such Participant agrees, for the benefit of the
         Borrower, to comply with Section 3.13(f) as though it were a Lender.

                  (f) Any Lender may at any time pledge or assign a security
         interest in all or any portion of its rights under this Credit
         Agreement (including under its Note, if any) to secure obligations of
         such Lender, including any pledge or assignment to secure obligations
         to a Federal Reserve Bank; provided that no such pledge or assignment
         shall release such Lender from any of its obligations hereunder or
         substitute any such pledgee or assignee for such Lender as a party
         hereto.

                  (g) Notwithstanding anything to the contrary contained herein,
         any Lender (a "Granting Lender") may grant to a special purpose funding
         vehicle identified as such in writing from time to time by the Granting
         Lender to the Administrative Agent and the Borrower (an "SPC") the
         option to provide all or any part of any Loan that such Granting Lender
         would otherwise be obligated to make pursuant to this Credit Agreement;
         provided that (i) nothing herein shall constitute a commitment by any
         SPC to fund any

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         Loan, and (ii) if an SPC elects not to exercise such option or
         otherwise fails to make all or any part of such Loan, the Granting
         Lender shall be obligated to make such Loan pursuant to the terms
         hereof. Each party hereto hereby agrees that (A) neither the grant to
         any SPC nor the exercise by any SPC of such option shall increase the
         costs or expenses or otherwise increase or change the obligations of
         the Borrower under this Credit Agreement (including its obligations
         under Sections 3.9, 3.12, 3.13 and 3.14), (B) no SPC shall be liable
         for any indemnity or similar payment obligation under this Credit
         Agreement for which a Lender would be liable, and (C) the Granting
         Lender shall for all purposes, including the approval of any amendment,
         waiver or other modification of any provision of any Credit Document,
         remain the lender of record hereunder. The making of a Loan by an SPC
         hereunder shall utilize the Commitment of the Granting Lender to the
         same extent, and as if, such Loan were made by such Granting Lender. In
         furtherance of the foregoing, each party hereto hereby agrees (which
         agreement shall survive the termination of this Credit Agreement) that,
         prior to the date that is one year and one day after the payment in
         full of all outstanding commercial paper or other senior debt of any
         SPC, it will not institute against, or join any other Person in
         instituting against, such SPC any bankruptcy, reorganization,
         arrangement, insolvency, or liquidation proceeding under the Laws of
         the United States or any State thereof. Notwithstanding anything to the
         contrary contained herein, any SPC may (i) with notice to, but without
         prior consent of the Borrower and the Administrative Agent and without
         paying any processing fee therefor, assign all or any portion of its
         right to receive payment with respect to any Loan to the Granting
         Lender and (ii) disclose on a confidential basis any non-public
         information relating to its funding of Loans to any rating agency,
         commercial paper dealer or provider of any surety or guarantee or
         credit or liquidity enhancement to such SPC.

                  (h) Notwithstanding anything to the contrary contained herein,
         any Lender that is a Fund may create a security interest in all or any
         portion of the Loans owing to it and the Note, if any, held by it to
         the trustee for holders of obligations owed, or securities issued, by
         such Fund as security for such obligations or securities, provided that
         unless and until such trustee actually becomes a Lender in compliance
         with the other provisions of this Section 11.3, (i) no such pledge
         shall release the pledging Lender from any of its obligations under the
         Credit Documents and (ii) such trustee shall not be entitled to
         exercise any of the rights of a Lender under the Credit Documents even
         though such trustee may have acquired ownership rights with respect to
         the pledged interest through foreclosure or otherwise.

                  (i) Notwithstanding anything to the contrary contained herein,
         if at any time Bank of America assigns all of its Commitment and Loans
         pursuant to subsection (b) above, Bank of America may upon 30 days'
         notice to the Borrower and the Lenders, resign as L/C Issuer. In the
         event of any such resignation as L/C Issuer, the Borrower shall be
         entitled to appoint from among the Lenders a successor L/C Issuer
         hereunder; provided, however, that no failure by the Borrower to
         appoint any such successor shall affect the resignation of Bank of
         America as L/C Issuer. If Bank of America resigns as L/C Issuer, it
         shall retain all the rights and obligations of the L/C Issuer hereunder
         with respect to all Letters of Credit outstanding as of the effective
         date of its resignation as L/C Issuer and all L/C Obligations with
         respect thereto (including the right to require the Lenders to make
         Loans or fund risk participations pursuant to Section 2.2.

         11.4 NO WAIVER; REMEDIES CUMULATIVE.

         No failure or delay on the part of any Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Credit
Document and no course of dealing between the Borrower or any other Credit Party
and any Agent or any Lender shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or under
any other Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder or thereunder. The
rights and remedies provided herein are cumulative and not exclusive of any
rights or remedies which any Agent or any Lender would otherwise have. No notice
to or demand on any Credit Party in any case shall entitle any Credit Party to
any other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Agents or the Lenders to any other or
further action in any circumstances without notice or demand.

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         11.5 ATTORNEY COSTS, EXPENSES, TAXES AND INDEMNIFICATION BY CREDIT
         PARTIES.

                  (a) The Credit Parties agree (i) to pay or reimburse the
         Agents and the Arranger for all reasonable costs and expenses incurred
         in connection with the development, preparation, negotiation and
         execution of this Credit Agreement and the other Credit Documents and
         any amendment, waiver, consent or other modification of the provisions
         hereof and thereof (whether or not the transactions contemplated hereby
         or thereby are consummated), and the consummation and administration of
         the transactions contemplated hereby and thereby, including all
         reasonable fees and expenses of legal counsel, and (ii) to pay or
         reimburse each Agent and each Lender for all costs and expenses
         incurred in connection with the enforcement, attempted enforcement, or
         preservation of any rights or remedies under this Credit Agreement or
         the other Credit Documents (including all such costs and expenses
         incurred during any "workout" or restructuring in respect of the Credit
         Party Obligations and during any legal proceeding, including any
         proceeding under any Debtor Relief Law), including all reasonable fees
         and expenses of legal counsel. The foregoing costs and expenses shall
         include all search, filing, recording, and appraisal charges and fees
         and taxes related thereto, and other out-of-pocket expenses incurred by
         the Agents and the Arranger and the cost of independent public
         accountants and other outside experts retained by either Agent, the
         Arranger or any Lender. Other than costs and expenses payable in
         connection with the closing of the transactions contemplated by this
         Credit Agreement pursuant to Section 11.5(a) (which shall be payable on
         the Closing Date unless otherwise agreed by the Agents and the
         Arranger), all amounts due under this Section 11.5 shall be payable
         within ten Business Days after demand therefor. The agreements in this
         Section shall survive the termination of the Commitments and repayment
         of all other Credit Party Obligations.

                  (b) Whether or not the transactions contemplated hereby are
         consummated, the Borrower shall indemnify and hold harmless each
         Agent-Related Person, each Lender and their respective Affiliates,
         directors, officers, employees, counsel, agents and attorneys-in-fact
         (collectively the "Indemnitees") from and against any and all
         liabilities, obligations, losses, damages, penalties, claims, demands,
         actions, judgments, suits, costs, expenses and disbursements (including
         the reasonable fees and expenses of legal counsel) of any kind or
         nature whatsoever which may at any time be imposed on, incurred by or
         asserted against any such Indemnitee in any way relating to or arising
         out of or in connection with (i) the execution, delivery, enforcement,
         performance or administration of any Credit Document or any other
         agreement, letter or instrument delivered in connection with the
         transactions contemplated thereby or the consummation of the
         transactions contemplated thereby, (ii) any Commitment, Loan or Letter
         of Credit or the use or proposed use of the proceeds therefrom
         (including any refusal by the L/C Issuer to honor a demand for payment
         under a Letter of Credit if the documents presented in connection with
         such demand do not strictly comply with the terms of such Letter of
         Credit), or (iii) any actual or alleged presence or release of
         Hazardous Substances on or from any property currently or formerly
         owned or operated by the Borrower, any Subsidiary or any other Credit
         Party, or any Environmental Claim related in any way to the Borrower,
         any Subsidiary or any other Credit Party, or (iv) any actual or
         prospective claim, litigation, investigation or proceeding relating to
         any of the foregoing, whether based on contract, tort or any other
         theory (including any investigation of, preparation for, or defense of
         any pending or threatened claim, investigation, litigation or
         proceeding) and regardless of whether any Indemnitee is a party thereto
         (all the foregoing, collectively, the "Indemnified Liabilities"), in
         all cases, whether or not caused by or arising, in whole or in part,
         out of the negligence of the Indemnitee; provided that such indemnity
         shall not, as to any Indemnitee, be available to the extent that such
         liabilities, obligations, losses, damages, penalties, claims, demands,
         actions, judgments, suits, costs, expenses or disbursements are
         determined by a court of competent jurisdiction by final and
         nonappealable judgment to have resulted from the gross negligence or
         willful misconduct of such Indemnitee. No Indemnitee shall be liable
         for any damages arising from the use by others of any information or
         other materials obtained through IntraLinks or other similar
         information transmission systems in connection with this Credit
         Agreement, nor shall any Indemnitee have any liability for any indirect
         or consequential damages relating to this Credit Agreement or any other
         Credit Document or arising out of its activities in connection herewith
         or therewith (whether before or after the Closing Date). All amounts
         due under this Section 11.5 shall be payable within ten Business Days
         after demand therefor. The agreements in this Section shall survive the
         resignation of the either Agent, the replacement of any

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<PAGE>

         Lender, the termination of the Commitments and the repayment,
         satisfaction or discharge of all the other Credit Party Obligations.

         11.6 AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing and signed by the Required Lenders and the then Credit Parties; provided
that no such amendment, change, waiver, discharge or termination shall, without
the consent of each Lender directly affected thereby:

                  (a) extend the Maturity Date;

                  (b) reduce the rate or extend the time of payment of interest
         (other than as a result of waiving the applicability of any
         post-default increase in interest rates or as a result of waiving any
         mandatory prepayment required by Section 3.3(b)) on the Loans or fees
         hereunder;

                  (c) reduce or waive the principal amount of any Loan or extend
         the time of payment thereof (other than as a result of waiving any
         mandatory prepayment required by Section 3.3(b));

                  (d) increase or extend the Commitment of a Lender (it being
         understood and agreed that a waiver of any Default or Event of Default
         or a waiver of any mandatory reduction in the Commitments shall not
         constitute a change in the terms of any Commitment of any Lender);

                  (e) release the Borrower from its obligations or consent to
         the assignment or transfer by the Borrower of any of its rights and
         obligations under (or in respect of) the Credit Documents, release all
         or substantially all of the Guarantors from their respective
         obligations under the Credit Documents or release all or substantially
         all of the Collateral; provided that the Collateral Agent shall have
         the authority to release Collateral sold, transferred or otherwise
         disposed of pursuant to an asset disposition permitted under Section
         8.4 without the consent of any Lender;

                  (f) amend, modify or waive any provision of this Section 11.6
         or Sections 3.7, 3.8, 9.1(a), 11.2, 11.3 or 11.5; or

                  (g) reduce any percentage specified in, or otherwise modify,
         the definition of Required Lenders.

         Notwithstanding the above, (i) no provision of Section 3.4(c) may be
amended or modified without the consent of the Administrative Agent, (ii) no
provision of this Credit Agreement or any other Credit Document that addresses
the rights or obligations of either Agent (including, without limitation,
Section 10) may be amended or modified without prior written consent of such
Agent, (iii) no provision of Sections 2.2 or 3.4(b)and no other provision of
this Credit Agreement or any other Credit Document that addresses the rights or
obligations of the L/C Issuer may be amended or modified without the prior
written consent of the L/C Issuer, (iv) no amendment, waiver or consent shall
affect the rights or duties of the Alternative Rate Lender under this Credit
Agreement or any other Credit Document unless in writing and signed by the
Alternative Rate Lender and (v) any Alternative Rate Agreement (including the
Alternative Rate payable by the Borrower thereunder) and Section 3.14(b) may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the Borrower and the Alternative Rate Lender.

         Each Lender understands and agrees that if such Lender is a Defaulting
Lender then, notwithstanding the provisions of this Section 11.6, it shall not
be entitled to vote on any matter requiring the consent of the Required Lenders
or to object to any matter requiring the consent of all the Lenders; provided,
however, that all other benefits and obligations under the Credit Documents
shall apply to such Defaulting Lender.

         Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (A) each Lender is
entitled to vote as such Lender sees fit on any reorganization plan that affects
the Credit Party Obligation, and each Lender acknowledges that the provisions of
Section 1126(c) of the Bankruptcy Code supersede the

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<PAGE>

unanimous consent provisions set forth herein and (B) the Required Lenders may
consent to allow a Credit Party to use cash collateral in the context of a
bankruptcy or insolvency proceeding.

         11.7 COUNTERPARTS.

         This Credit Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument.

         11.8 HEADINGS.

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

         11.9 SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.

                  (a) Survival of Indemnification. All indemnities set forth
         herein shall survive the execution and delivery of this Credit
         Agreement, the making of any Credit Extension and the repayment of the
         Loans and other Credit Party Obligations and the termination of the
         Commitments hereunder.

                  (b) Survival of Representations and Warranties. All
         representations and warranties made hereunder and in any other Credit
         Document or other document delivered pursuant hereto or thereto or in
         connection herewith or therewith shall survive the execution and
         delivery hereof and thereof. Such representations and warranties have
         been or will be relied upon by the Agents and each Lender, regardless
         of any investigation made by either Agent or any Lender or on their
         behalf and notwithstanding that either Agent or any Lender may have had
         notice or knowledge of any Default or Event of Default at the time of
         any Credit Extension, and shall continue in full force and effect as
         long as any Loan or any other Credit Party Obligation hereunder shall
         remain unpaid or unsatisfied or any Letter of Credit shall remain
         outstanding.

         11.10 GOVERNING LAW; VENUE; JURISDICTION.

                  (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND
         THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER
         SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
         THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402
         OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE
         OF LAW AND CONFLICTS OF LAW RULES). Any legal action or proceeding with
         respect to this Credit Agreement or any other Credit Document may be
         brought in the courts of the State of North Carolina or of the United
         States for the Western District of North Carolina, and, by execution
         and delivery of this Credit Agreement, each Credit Party hereby
         irrevocably accepts for itself and in respect of its Property,
         generally and unconditionally, the jurisdiction of such courts. Each
         Credit Party irrevocably consents to the service of process in any
         action or proceeding with respect to this Credit Agreement or any other
         Credit Document by the mailing of copies thereof by registered or
         certified mail, postage prepaid, to it at the address for notices
         pursuant to Section 11.1, such service to become effective ten days
         after such mailing. Nothing herein shall affect the right of a Lender
         to serve process in any other manner permitted by Law or to commence
         legal proceedings or otherwise proceed against a Credit Party in any
         other jurisdiction. Each Credit Party agrees that a final judgment in
         any action or proceeding shall be conclusive and may be enforced in
         other jurisdictions by suit on the judgment or in any other manner
         provided by Law; provided that nothing in this Section 11.10(a) is
         intended to impair a Credit Party's right under applicable Law to
         appeal or seek a stay of any judgment.

                  (b) Each Credit Party hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Credit Agreement or any other Credit Document in the courts
         referred to in subsection (a) above and

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<PAGE>

         hereby further irrevocably waives and agrees not to plead or claim in
         any such court that any such action or proceeding brought in any such
         court has been brought in an inconvenient forum.

         11.11 WAIVER OF JURY TRIAL; WAIVER OF CONSEQUENTIAL DAMAGES.

         EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. Each of the parties to this
Credit Agreement agrees not to assert any claim against any other party hereto,
Administrative Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys or agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out
of or otherwise relating to any of the transactions contemplated herein and in
the other Credit Documents.

         11.12 SEVERABILITY.

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

         11.13 FURTHER ASSURANCES.

         The Credit Parties agree, upon the request of the Administrative Agent,
to promptly take such actions, as reasonably requested, as is necessary to carry
out the intent of this Credit Agreement and the other Credit Documents,
including without limitation such actions as are necessary or desirable in
connection with the creation, perfection and maintenance of the security
interests of the Lenders in the Collateral.

         11.14 CONFIDENTIALITY.

         Each Lender agrees that it will use reasonable efforts to keep
confidential any non-public information from time to time supplied to it under
any Credit Document; provided, however, that nothing herein shall prevent the
disclosure of any such information to (a) the extent a Lender in good faith
believes such disclosure is required by Law or judicial process, (b) counsel for
a Lender or to its accountants, (c) bank examiners or auditors or comparable
Persons, (d) any Affiliate of a Lender, (e) any other Lender, or any assignee,
transferee or Participant, or any potential assignee, transferee or Participant,
of all or any portion of any Lender's rights under this Credit Agreement who is
notified of the confidential nature of such information or (f) any other Person
in connection with (i) any litigation to which any one or more of the Lenders is
a party if required by a court of Law of competent jurisdiction or (ii) any
proceeding to enforce such Lender's rights hereunder, under any other Credit
Document or under any Hedging Agreement. No Lender shall have any obligation
under this Section 11.14 to the extent any such information becomes available on
a non-confidential basis from a source other than a Credit Party or that any
information becomes publicly available other than by a breach of this Section
11.14 by any Lender or representative thereof.

         11.15 ENTIRETY.

         This Credit Agreement together with the other Credit Documents and the
Fee Letter represent the entire agreement of the parties hereto and thereto, and
supersede all prior agreements and understandings, oral or written, if any,
including any commitment letters or correspondence relating to the Credit
Documents or the transactions contemplated herein and therein.

         11.16 BINDING EFFECT; CONTINUING AGREEMENT.

                  (a) This Credit Agreement shall become effective at such time
         when all of the conditions set forth in Section 5.1 have been satisfied
         or waived by the Lenders and it shall have been executed by the
         Borrower, the Guarantors and the Administrative Agent, and the
         Administrative Agent shall have received

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<PAGE>

         copies hereof (telefaxed or otherwise) which, when taken together, bear
         the signatures of each Lender, and thereafter this Credit Agreement
         shall be binding upon and inure to the benefit of the Borrower, the
         Guarantors, the Administrative Agent and each Lender and their
         respective successors and assigns.

                  (b) This Credit Agreement shall be a continuing agreement and
         shall remain in full force and effect until all Loans, interest, fees
         and other Credit Party Obligations have been paid in full and all
         Letters of Credit and Commitments have been terminated. Upon
         termination, the Credit Parties shall have no further obligations
         (other than the indemnification provisions and other provisions that by
         their terms survive) under the Credit Documents; provided that should
         any payment, in whole or in part, of the Credit Party Obligations be
         rescinded or otherwise required to be restored or returned by the
         Administrative Agent or any Lender, whether as a result of any
         proceedings in bankruptcy or reorganization or otherwise, then the
         Credit Documents shall automatically be reinstated and all amounts
         required to be restored or returned and all costs and expenses incurred
         by the Administrative Agent or any Lender in connection therewith shall
         be deemed included as part of the Credit Party Obligations.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

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

BORROWER:

                                  ORTHODONTIC CENTERS OF AMERICA, INC.,
                                  a Delaware corporation

                                  By:    /s/  Thomas J. Sandeman
                                     ------------------------------------------
                                  Name:  Thomas J. Sandeman
                                  Title: Chief Financial Officer

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<PAGE>

GUARANTORS:
-----------
                              ORTHODONTIC CENTERS OF ALABAMA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF ARIZONA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF ARKANSAS, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF CALIFORNIA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF CALIFORNIA-VISTA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF COLORADO, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF CONNECTICUT,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF FLORIDA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF GEORGIA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF HAWAII, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF IDAHO, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF ILLINOIS, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF INDIANA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF IOWA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF KANSAS, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF KENTUCKY, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF LOUISIANA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF MAINE, INC.,
                              a Delaware corporation

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<PAGE>

                              ORTHODONTIC CENTERS OF MARYLAND, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF MASSACHUSETTS,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF MICHIGAN, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF MINNESOTA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF MISSISSIPPI, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF MISSOURI, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF NEBRASKA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF NEVADA, INC.,
                              a Nevada corporation

                              ORTHODONTIC CENTERS OF NEW HAMPSHIRE,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF NEW JERSEY, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF NEW MEXICO,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF NEW YORK, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF NORTH CAROLINA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF NORTH DAKOTA,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF OHIO, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF OKLAHOMA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF OREGON, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF PENNSYLVANIA, INC.,
                              a Delaware corporation

                                       88
<PAGE>

                              ORTHODONTIC CENTERS OF PUERTO RICO,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF RHODE ISLAND,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF SOUTH CAROLINA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF TENNESSEE, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF TEXAS, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF UTAH, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF VIRGINIA, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF WASHINGTON,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF WASHINGTON
                              D.C., INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF WEST VIRGINIA,
                              INC., a Delaware corporation

                              ORTHODONTIC CENTERS OF WISCONSIN, INC.,
                              a Delaware corporation

                              ORTHODONTIC CENTERS OF WYOMING, INC.,
                              a Delaware corporation

                              OCA MERGERCO, INC.,
                              a Delaware corporation

                              ORTHALLIANCE, INC.,
                              a Delaware corporation

                              ORTHALLIANCE FINANCE, INC.,
                              a Delaware corporation

                              ORTHALLIANCE PROPERTIES, INC.,
                              a California corporation

                              ORTHALLIANCE SERVICES, INC.,
                              a California corporation

                              ORTHALLIANCE HOLDINGS, INC.,
                              a Texas corporation

                                       89
<PAGE>

                              ORTHALLIANCE NEW IMAGE, INC.,
                              a Delaware corporation

                              PEDOALLIANCE, INC.,
                              a Delaware corporation

                              PEDOALLIANCE PROPERTIES, INC.,
                              a California corporation

                              By:     /s/  Thomas J. Sandeman
                                 ----------------------------------------------
                              Name:   Thomas J. Sandeman
                              Title:  Treasurer
                                      of each of the foregoing Guarantors

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<PAGE>

ADMINISTRATIVE AGENT:
                          BANK OF AMERICA, N.A.,
                          in its capacity as Administrative Agent

                          By:      /s/ Kevin Ahart
                             -------------------------------------------------
                                   Name:  Kevin Ahart
                                   Title: Agency Management Officer

LENDERS:
                          BANK OF AMERICA, N.A.,
                          in its capacity as a Lender, as L/C Issuer
                          and as Alternative Rate Lender

                          By:      /s/ Larry J. Gordon
                             -------------------------------------------------
                                   Name:  Larry J. Gordon
                                   Title: Principal

                          BANK ONE, NA,
                          in its capacity as Syndication Agent and as a Lender

                          By:      /s/ Steven Nance
                             -------------------------------------------------
                                   Name:  Steven Nance
                                   Title: Vice President

                          U.S. BANK NATIONAL ASSOCIATION,
                          in its capacity as Documentation Agent and as a Lender

                          By:      /s/ Bess Kessinger
                             -------------------------------------------------
                                   Name:  Bess Kessinger
                                   Title: Vice President

                          LASALLE BANK NATIONAL ASSOCIATION

                          By:      /s/ Kristen L. Schmitt
                             -------------------------------------------------
                                   Name:  Kristen L. Schmitt
                                   Title: Commercial Banking Officer

                          HIBERNIA NATIONAL BANK

                          By:      /s/ Katharine Gonzalez
                             -------------------------------------------------
                                   Name: Katharine Gonzalez
                                   Title: Vice President

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<PAGE>

                          WHITNEY NATIONAL BANK

                          By:      /s/ Michael Jesse Shannon
                             -------------------------------------------------
                                   Name:  Michael Jesse Shannon
                                   Title: Senior Vice President

                                       92<PAGE>

                                                                   EXHIBIT 10.21

                      ORTHODONTIC CENTERS OF AMERICA, INC.

                              STOCK POOL II PROGRAM

<PAGE>

                      ORTHODONTIC CENTERS OF AMERICA, INC.
                              STOCK POOL II PROGRAM

                                    PREAMBLE

         WHEREAS, on November 9, 2001, a subsidiary of Orthodontic Centers of
America, Inc., a Delaware corporation ("OCA"), merged with and into
OrthAlliance, Inc., a Delaware corporation ("OrthAlliance"), and OrthAlliance
thereby became a wholly-owned subsidiary of OCA (the "Merger"); and

         WHEREAS, OCA desires to establish a program through which OCA may,
subject to the terms, conditions and restrictions described herein, grant shares
of its common stock, $.01 par value per share ("OCA Common Stock"), to certain
eligible individuals (each such eligible individual, a "Participant") who are,
among other things, Affiliated Practitioners (as defined below) who timely
execute and deliver their respective Amendments or Business Services Agreements
(as each such term is defined below);

         NOW, THEREFORE, OCA hereby establishes the Orthodontic Centers of
America, Inc. Stock Pool II Program (the "Program").

                             ARTICLE I. ELIGIBILITY

         In order for any person to be eligible to be a Participant in the
Program, or to be granted shares of OCA Common Stock under the Program or any
Participation Agreement (as defined below), he or she must meet and comply with
each of the following:

1.1 Must Be An Affiliated Practitioner. In order to be a Participant in the
Program and to be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, a person must be an Affiliated
Practitioner.

         For purposes of the Program, "Affiliated Practitioner" means a licensed
orthodontist or pediatric dentist who both (A) owns, beneficially and of record,
shares of capital stock of, or other equity ownership interests in, a
professional corporation or other professional entity (each, a "PC") that is a
party to a written long-term service, management service, consulting or similar
long-term agreement with OrthAlliance and/or a subsidiary thereof pursuant to
which OrthAlliance and/or its subsidiary is providing business management or
consulting services for such Participant's orthodontic or pediatric dental
practice in exchange for a consulting or service fee (each a "Service/Consulting
Agreement"), and (B) provides orthodontic or pediatric dental services in such
practice as a full-time orthodontist or pediatric dentist employee of his or her
respective PC, pursuant to a written employment agreement (each, an "Employment
Agreement") between such orthodontist or pediatric dentist and his or her
respective PC.

1.2 Must Amend Service/Consulting Agreement and Employment Agreement or Enter
Into New Business Services Agreement. In order to be a Participant in the
Program and to be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, an Affiliated Practitioner must also,
along with his or her respective PC, execute and deliver his or her respective
Amendments or Business Services Agreement to OCA.

         If the Participant's respective PC is partially owned by one or more
other Affiliated Practitioners, then each of such other Affiliated Practitioners
must also execute and deliver to OCA his or her respective Amendments or
Business Services Agreement, as applicable, in order for the Participant to be
eligible for the Program, subject to the other terms of the Program.

         For purposes of the Program:

         o    "Amendments" means an Amendment to Employment Agreement (as
              defined below) and Amendment to Service/Consulting Agreement (as
              defined below).

<PAGE>

         o    "Amendment to Employment Agreement" shall mean a written amendment
              to the Affiliated Practitioner's respective Employment Agreement,
              in form and substance satisfactory to OCA and its counsel, which
              amendment shall be in full force and effect and in substantially
              the form and substance of the form of Amendment to Employment
              Agreement attached hereto as Exhibit A, as such Exhibit may be
              amended from time to time by OCA in its discretion.

         o    "Amendment to Service/Consulting Agreement" means a written
              amendment to the applicable Service/Consulting Agreement in form
              and substance satisfactory to OCA and its counsel, which amendment
              shall be in full force and effect and in substantially the form
              and substance of the form of Amendment to Service/Consulting
              Agreement attached hereto as Exhibit B, as such Exhibit may be
              amended from time to time by OCA in its discretion.

         o    "Business Services Agreement" means a written long-term business
              services agreement among the Affiliated Practitioner, his or her
              respective PC and OrthAlliance (or other subsidiary of OCA), in
              form and substance satisfactory to OCA and its counsel and based
              on OCA's form of such agreement (including, without limitation,
              the service fee, restrictive covenant and termination provisions
              thereof), which agreement shall be in full force and effect, and
              pursuant to which OCA, OrthAlliance or other subsidiary of OCA
              would provide business management or consulting services for such
              Affiliated Practitioner's and PC's orthodontic or pediatric dental
              practice in exchange for a monthly consulting or service fee.

1.3 No Litigation, Notice of Termination or Non-Compliance. An Affiliated
Practitioner may not be a Participant in the Program, and will not be issued any
shares of OCA Common Stock under or pursuant to the Program or any Participation
Agreement, if:

         (a) Such Affiliated Practitioner and/or his or her PC is a party to or
has threatened any litigation or other legal or arbitration proceedings against
or involving OrthAlliance, OCA or their subsidiaries, affiliates, officers,
directors, agents or employees; if any such litigation or proceedings has been
commenced or threatened, such Affiliated Practitioner may become a Participant
and may be issued any shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, subject to the other terms and
conditions hereof, only if the same has been dismissed with prejudice or fully
withdrawn in a manner acceptable to OCA;

         (b) Such Affiliated Practitioner and/or his or her PC has threatened or
given notice of termination or intention to terminate their respective
Service/Consulting Agreement or Employment Agreement or amendments thereto; if
any such notice has been threatened or given, such Affiliated Practitioner may
become a Participant and may be issued any shares of OCA Common Stock under or
pursuant to the Program or any Participation Agreement, subject to the other
terms and conditions hereof, only if the same has been fully withdrawn in a
manner acceptable to OCA;

         (c) Such Affiliated Practitioner and/or his or her PC is in default or
breach of, or is not in compliance with, their obligations under the applicable
Service/Consulting Agreement or Employment Agreement or amendments thereto,
including, without limitation, their obligation to pay service or consulting
fees to OrthAlliance, OCA or their subsidiaries; and/or

         (d) Such Affiliated Practitioner and/or his or her PC is a party with
OrthAlliance or a subsidiary thereof to any practice improvement performance
guarantee agreement or comparable agreement, pursuant to which service or
consulting fees payable under a Service/Consulting Agreement may be abated or
deferred based upon profitability of the applicable practice and the value of
consideration paid to such Affiliated Professional and/or his or her PC upon
OrthAlliance's or its subsidiary's acquisition of stock or assets therefrom, or
entering into of a Service/Consulting Agreement therewith.

1.4 Must Execute and Deliver Participation Agreement. In order to be a
Participant in the Program and to be issued shares of OCA Common Stock under or
pursuant to the Program or any Participation Agreement, an Affiliated
Practitioner must also execute and deliver a written Participation Agreement
(each, a "Participation Agreement") to OCA, and OCA must have accepted such
Participation Agreement in its sole discretion, which

                                       2
<PAGE>

Participation Agreement shall be in form and substance satisfactory to OCA and
its counsel and in full force and effect, shall address such Affiliated
Practitioner's participation in the Program subject to each of the terms and
conditions set forth herein and in such Participation Agreement, include certain
representations and warranties relating to applicable securities laws, and be in
substantially the form and substance of the form of Participation Agreement
attached as Exhibit C hereto, as such Exhibit may be amended from time to time
by OCA in its discretion.

1.5 Must Complete and Deliver Investor Suitability Questionnaire. In order to be
a Participant in the Program and to be issued shares of OCA Common Stock under
or pursuant to the Program or any Participation Agreement, an Affiliated
Practitioner must also complete, execute and deliver to OCA a written Investor
Suitability Questionnaire (each, an "Investor Suitability Questionnaire"), which
Investor Suitability Questionnaire shall be in form and substance satisfactory
to OCA and its counsel and in full force and effect, address such Affiliated
Practitioner's suitability to participate in the Program in light of applicable
securities laws, and be in substantially the form and substance of the form of
Investor Suitability Questionnaire attached as Exhibit D hereto, as such Exhibit
may be amended from time to time by OCA in its discretion.

1.6 Provision of Requested Information. In order to be a Participant in the
Program and to be issued shares of OCA Common Stock under or pursuant to the
Program or any Participation Agreement, an Affiliated Practitioner must provide
OCA with any financial information that OCA reasonably requests in order to
determine the number of shares of OCA Common Stock, if any, to be granted to the
Affiliated Practitioner under the Program.

                            ARTICLE II. STOCK AWARDS

2.1 Number of Shares. Eligible Participants in the Program will be awarded
shares of OCA Common Stock under the Program (subject to Sections 2.2 and 2.3
and the other terms and conditions of the Program) in an amount determined as
follows, rounded down to the nearest whole number:

       (x)    the amount of the Applicable Participant's Service Fees During the
              12 Months Ended October 31, 2001 (as defined below),

              DIVIDED BY

       (y)    $18.85.

For purposes of the Program:

"Applicable Participant's Service Fees During the 12 Months Ended October 31,
2001" means the amount of Service Fees (as defined below) actually paid by the
applicable Participant and/or the PC that is owned by and employing such
Participant to OrthAlliance or its subsidiary during and with respect to the 12
calendar months ended October 31, 2001 under the applicable Service/Consulting
Agreement.

"Service Fees" means service, management service or consulting fees (excluding
any amounts reimbursed, paid, earned or accrued with respect to center expenses,
operating and non-operating expenses incurred in the operation of the applicable
practice or other expenses) actually paid to OCA, OrthAlliance or their
subsidiaries by the applicable Affiliated Practitioner and/or the PC owned by
and employing such Affiliated Practitioner pursuant to the applicable
Service/Consulting Agreement or Business Services Agreement.

2.2 Timing and Conditions of Grants. Shares of OCA Common Stock awarded under
the Program shall be issuable to Participants in four annual installments
(subject to Section 2.3 and the other terms and conditions of the Program), as
follows:

         (a) For each Participant, 25% of the total number of shares of OCA
Common Stock (rounded to the nearest whole number) to be awarded to such
Participant under the Program will be issued to such Participant following each
of the first, second, third and fourth anniversaries (each such anniversary
date, a "Vesting Date") of

                                       3
<PAGE>

the Applicable Date (as defined below) with respect to such Participant, if, and
only if, the amount of Service Fees paid to OCA, OrthAlliance or their
subsidiaries by the Participant and/or the PC owned by and employing such
Participant during and with respect to the 12 calendar months immediately
preceding that particular Vesting Date is at least 90% (the "90% Minimum
Target") of the amount of the Applicable Participant's Service Fees During the
12 Months Ended October 31, 2001.

         For purposes of the Program, "Applicable Date" means: (A) November 9,
2001 (the effective date of the Merger) for each Participant who executes and
delivers to OCA his or her Amendments or Business Services Agreement, a
Participation Agreement and an Investor Suitability Questionnaire as provided in
Sections 1.2, 1.4 and 1.5 hereof by no later than 5:00 p.m. (Central Time) on
July 15, 2002; and (B) for each of the other Participants, the last day of the
month during which the Participant executes and delivers to OCA his or her
Amendments or Business Services Agreement, a Participation Agreement and an
Investor Suitability Questionnaire as provided in Sections 1.2, 1.4 and 1.5
hereof.

         (b) However, if the 90% Minimum Target is not achieved in the 12
calendar month period immediately preceding the first, second or third such
Vesting Date (each, an "Earlier Period"), but is achieved during the 12 calendar
month period immediately preceding a subsequent Vesting Date (each, a "Later
Period"), then the installment of shares of OCA Common Stock issuable with
respect to such Earlier Period will be issued following such Later Period. By
way of illustration, if such target were not achieved during the periods
preceding the second or third Vesting Dates, but was achieved during the period
preceding the fourth Vesting Date, then the installment of shares for the second
and third vesting periods would be issued after the fourth Vesting Date.

2.3 Participant May Elect to Receive Promissory Note In Lieu of Shares.

         (a) Promissory Note. During the 30 calendar days ending on and
including the first Vesting Date, a Participant may make a one-time, permanent
election (as provided below) as to all shares of OCA Common Stock that the
Participant may be issued under the Program, to receive, in lieu and full
substitution of any and all shares of OCA Common Stock that would otherwise be
issued to such Participant pursuant to Sections 2.1 and 2.2 of the Program, a
non-transferable, non-negotiable promissory note from OCA or a subsidiary
thereof selected by OCA substantially in the form and substance of the form of
Promissory Note attached as Exhibit E hereto ("Promissory Note"), in an original
principal amount equal to the product of:

              (x)    the Applicable Stock Price (as defined below),

              TIMES

              (y)    the total, maximum number of shares of OCA Common Stock
                     that would otherwise be issued to such Participant pursuant
                     to Section 2.1 of the Program (notwithstanding the vesting
                     conditions set forth in Section 2.2).

For purposes of the Program:

         o    "Applicable Stock Price" means: (A) the sum of (x) $1.00, plus (y)
              the 10-Day Average Closing Price, for each Participant who
              executes and delivers to OCA his or her Amendments or Business
              Services Agreement, a Participation Agreement and an Investor
              Suitability Questionnaire as provided in Sections 1.2, 1.4 and 1.5
              hereof by no later than 5:00 p.m. (Central Time) on July 15, 2002,
              and (B) the 10-Day Average Closing Price, for each of the other
              Participants.

         o    "10-Day Average Closing Price" means the average closing price per
              share of OCA Common Stock reported on the New York Stock Exchange
              during the 10 trading day period immediately following the date on
              which the Participant executes and delivers to OCA his or her
              Amendments or Business Services Agreement, and Participation
              Agreement and Investor Suitability Questionnaire as provided in
              Sections 1.2, 1.4 and 1.5 hereof.

                                       4
<PAGE>

         (b) Other Terms of Promissory Note. Principal amounts owing under the
Promissory Note will bear interest from the first Vesting Date (except as
provided in subsection 2.3(d) hereof) at a rate equal to the prime rate on the
first Vesting Date (as reported in the Wall Street Journal or comparable
reporting service selected by OCA) plus 1.5% per annum. OCA may prepay all or
part of the amounts owing under the Promissory Note at any time in its
discretion without penalty. The Promissory Note will be non-transferable and
non-negotiable.

         (c) Election. A Participant may make such election to receive a
Promissory Note in lieu of all shares of OCA Common Stock to be issued to such
Participant under the Program only by giving written notice of such election to
the Chief Executive Officer of OCA during the 30 calendar days ending on and
including the first Vesting Date. Once such an election has been made, it may
not be withdrawn, and such an election may not be made before or following such
30-day period, and may not be made during the 30 days ending on any other
Vesting Date. If such Participant makes such an election, in accordance with
such notice and timing requirements, such Participant will be issued a
Promissory Note in an original principal amount computed as provided above, in
complete substitution and replacement of all shares of OCA Common Stock to be
issued to such Participant pursuant to Sections 2.1 and 2.2 of the Program, and
such shares will not be issued to such Participant.

         (d) Manner of Payment. Principal and accrued interest payable under
such Promissory Note will be payable in up to four installments, as follows:

                  (i) the first installment will consist of principal only (with
         respect to which no interest shall accrue), in an amount equal to 25%
         of the original principal amount of the Promissory Note, and will be
         payable within 15 business days following the first Vesting Date
         (subject to the conditions described in this paragraph below); and

                  (ii) the second, third and fourth installments will each
         consist of principal and accrued interest, in an amount equal to 25% of
         the original principal amount of the Promissory Note and interest
         accrued on that payment of 25% of the original principal amount since
         the first Vesting Date, and will be payable within 15 business days
         following the second, third and fourth Vesting Dates, respectively
         (subject to the conditions described in this paragraph below).
         Each such installment will be payable if, and only if, the amount of
         Service Fees paid to OCA, OrthAlliance or their subsidiaries by the
         Participant and/or the PC owned by and employing such Participant
         during and with respect to the 12 calendar months immediately preceding
         the particular Vesting Date relating to that installment is at least
         equal to the 90% Minimum Target. However, if the 90% Minimum Target is
         not achieved in an Earlier Period (in which case the installment of
         principal and accrued interest relating to that Earlier Period shall
         cease to accrue interest as of the Vesting Date relating to such
         Earlier Period), but is achieved during a Later Period, then the
         installment payable with respect to such Earlier Period will be paid
         following such Later Period in the same amount of principal and accrued
         interest that would have been paid following the Earlier Period (with
         no interest accruing thereon from the Vesting Date relating to such
         Earlier Period).

2.4 Pro Rata Basis for Practices with Multiple Owners. If a Participant's PC is
partially owned by one or more other Affiliated Practitioners, then the number
of shares of OCA Common Stock awarded pursuant to Sections 2.1 and 2.2 above for
such Participant (and the principal amount of any Promissory Note issued under
Section 2.3 above) shall be calculated by multiplying the number of shares of
OCA Common Stock that would otherwise be granted to such person pursuant to such
Sections 2.1 and 2.2 (and the principal amount of any Promissory Note issued
under Section 2.3 above) by his or her percentage of equity ownership of such
PC.

2.5 Only Whole Shares. Only whole shares of OCA Common Stock will be issued or
awarded under the Program; no fractional shares shall be issued and the
fractional share component of any computation hereunder shall be ignored.

                                       5
<PAGE>

             ARTICLE III. ADJUSTMENT UPON CERTAIN CORPORATE CHANGES

3.1 Adjustments to Shares. The number of shares of OCA Common Stock subject to
an outstanding award of shares of OCA Common Stock granted to a Participant
under and pursuant to the Program shall be adjusted as the Committee (as defined
below) determines (in its sole discretion) to be appropriate, in the event that
(a) OCA effects one or more stock dividends, stock splits, reverse stock splits,
subdivisions, consolidations, recapitalizations or other similar events; (b) OCA
engages in a transaction to which Section 424 of the U.S. Internal Revenue Code
of 1986, as amended (the "Code") applies; or (c) there occurs any other event
which in the judgment of the Committee necessitates such action.

3.2 No Adjustment upon Certain Transactions. The issuance by OCA of shares of
stock of any class, or securities convertible into shares of stock of any class,
for cash or property, or for labor or services rendered, either upon direct sale
or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of OCA convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, outstanding awards.

                     ARTICLE IV. LEGAL COMPLIANCE CONDITIONS

4.1 General. No OCA Common Stock or Promissory Note shall be issued under the
Program except in compliance with all federal or state laws and regulations
(including, without limitation, withholding tax requirements), federal and state
securities laws and regulations and the rules of all securities exchanges or
self-regulatory organizations on which shares of OCA Common Stock may be listed.
OCA shall have the right to rely on the advice of its counsel as to such
compliance. Any certificate issued to evidence shares of OCA Common Stock and
any Promissory Note granted under the Program may bear such legends and
statements as OCA upon advice of counsel may deem advisable to assure compliance
with federal or state laws and regulations. No OCA Common Stock or Promissory
Note shall be issued and no certificate for shares shall be delivered until OCA
has obtained such consent or approval as OCA may deem advisable from any
regulatory bodies having jurisdiction over such matters.

4.2 Representations by Participants. As a condition to the issuance of OCA
Common Stock or a Promissory Note under the Program or any Participation
Agreement, OCA may require a Participant to represent and warrant that the
Participant does not have a present intention to sell or distribute such shares
and is obtaining such shares for investment and not with a view to distribution.
At the option of OCA, a stop transfer order against any shares of stock may be
placed on the official stock books and records of OCA, and a legend indicating
that the stock may not be pledged, sold or otherwise transferred unless an
opinion of counsel was provided (concurred in by counsel for OCA) and stating
that such transfer is not in violation of any applicable law or regulation may
be stamped on the stock certificate in order to assure exemption from
registration. The Committee may also require such other action or agreement by
the Participants as may from time to time be necessary to comply with federal or
state securities laws. This provision shall not obligate OCA or any affiliate
thereof to undertake registration of stock hereunder.

                     ARTICLE V. ADMINISTRATION AND AMENDMENT

5.1 Administrative Committee. The Program shall be administered by a committee
composed of the chief executive officer and chief financial officer of OCA
and/or any other officer or officers of OCA appointed to such committee by the
chief executive officer of OCA (the "Committee"). The express grant in the
Program of any specific power to the Committee shall not be construed as
limiting any power or authority of the Committee. Any decision made or action
taken by the Committee to administer the Program shall be final and conclusive.
No member of the Committee shall be liable for any act done in good faith with
respect to the Program or any Participation Agreement. In addition to all other
authority vested with the Committee under the Program, the Committee shall have
complete authority to: (a) interpret all provisions of the Program; (b)
prescribe the form of any Participation Agreement; (c) make amendments to all
Participation Agreements; (d) adopt, amend, and rescind rules for Program
administration; and (e) make all determinations it deems advisable for the
administration of the Program.

                                       6
<PAGE>

5.2 Determination of Financial Performance. The authorities of the Committee
described in Section 5.1 include the full discretionary authority to make all
determinations regarding financial performance and related matters referenced in
the Program. Such matters include, but are not limited to, whether or not
Participants have achieved the criteria and standards of performance required to
participate in the Program and receive awards of OCA Common Stock. The Committee
shall make such determinations by reference to any data and information that it
deems appropriate and, to the extent that such information that is provided by a
Participant is not otherwise subject to disclosure, shall employ reasonable
measures that are designed to keep such information confidential.

5.3 Amendment and Termination of Program. OCA may amend, supplement, cancel
and/or terminate the Program and the Exhibits hereto at any time, with or
without notice to Participants or prospective Participants; provided, however,
an amendment that would have a material adverse effect on the rights of a
Participant under an outstanding award of shares of OCA Common Stock (or
Promissory Note, as applicable) under the Program is not valid as to that
Participant without the Participant's consent. If the Program is not earlier
terminated as provided herein, no additional Participants may participate in the
Program or be eligible for the Program following December 31, 2002, unless
further extended in a written amendment to the Program by OCA in its discretion;
provided, however, that any awards of shares of OCA Common Stock, or Promissory
Note in lieu of shares of OCA Common Stock, to Participants under the Program
shall continue in accordance with the terms and conditions of the Program and
shall continue to be governed by and subject to such terms and conditions. The
terms and conditions of the Program may not be waived, except in writing signed
by an authorized officer of OCA. The waiver of any of the terms and conditions
of the Program shall not be construed as a waiver of any other terms and
conditions hereof.

                         ARTICLE VI. GENERAL PROVISIONS

6.1 Unfunded Program. The Program shall be unfunded, and OCA shall not be
required to segregate any assets that may at any time be represented by grants
under the Program. Any liability of OCA to any person with respect to any grant
under the Program shall be based solely upon contractual obligations that may be
created hereunder. No such obligation of OCA shall be deemed to be secured by
any pledge of, or other encumbrance on, any property of OCA.

6.2 Rules of Construction. Headings are given to the articles and sections of
the Program solely as a convenience to facilitate reference. The masculine
gender when used herein refers to both masculine and feminine. The reference to
any statute, regulation or other provision of law shall be construed to refer to
any amendment to or successor of such provision of law.

6.3 Governing Law. The internal laws of the State of Louisiana (without regard
to the choice of law provisions of Louisiana) shall apply to all matters arising
under the Program, to the extent that federal law does not apply.

6.4 Federal Withholding Tax Requirements. To the extent that withholding is
required by law, at the time that any OCA Common Stock or Promissory Note is
granted or issued pursuant to the Program, the Participant shall, upon
notification of the amount due, pay to OCA amounts necessary to satisfy
applicable federal, state and local withholding tax requirements or shall
otherwise make arrangements satisfactory to OCA for such requirements.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the undersigned officer has executed this document
effective as of June 5, 2002.

                               ORTHODONTIC CENTERS OF AMERICA, INC.

                               By:    /s/ Bartholomew F. Palmisano, Sr.
                                    -------------------------------------------
                                          Bartholomew F. Palmisano, Sr.
                                          Chairman of the Board, President
                                          and Chief Executive Officer

                                       8

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