Document:

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                                                                     Exhibit 4.2

                                                                  EXECUTION COPY

          FIRST AMENDMENT, dated as of August 3, 2005 (this "Amendment"), to the
Credit Agreement, dated as of May 27, 2005 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among Manor Care,
Inc. (the "Borrower"), the lenders from time to time party thereto (the
"Lenders"), Bank of America, N.A., as syndication agent, SunTrust Bank, UBS
Securities LLC and Merrill Lynch Bank USA, as documentation agents, and JPMorgan
Chase Bank, N.A., as administrative agent (the "Administrative Agent").

                                   WITNESSETH:

          WHEREAS, the Borrower, the Lenders and the Administrative Agent are
parties to the Credit Agreement;

          WHEREAS, the Borrower has requested that the Lenders amend certain
terms in the Credit Agreement in the manner provided for herein; and

          WHEREAS, the Administrative Agent and the Lenders are willing to agree
to the requested amendments subject to the provisions of this Amendment;

          NOW, THEREFORE, in consideration of the premises contained herein, the
parties hereto agree as follows:

     1. Defined Terms. Unless otherwise defined herein, terms which are defined
in the Credit Agreement and used herein as defined terms are so used as so
defined.

     2. Amendments to Section 1.01 (Defined Terms). Section 1.01 of the Credit
Agreement is hereby amended by:

          (a) inserting the word "equity" between the words "Person's" and
"capital" in the definition of "Equity Capital";

          (b) substituting the existing dollar limitation referred to in
subclause (ii)(y) of subsection (b) of the definition of "Non-Obligor" as
follows: $20,000,000 in lieu of $15,000,000; and

          (c) inserting the following at the end of the definition of
"Restricted Payment":

          "For the avoidance of doubt, the term "Restricted Payment" shall not
          include any payment (whether on account of interest or the purchase,
          redemption, retirement or otherwise) in respect of the Convertible
          Notes or any similar security."

     3. Amendment to Section 6.11 (Additional Guarantors). Section 6.11 of the
Credit Agreement is hereby amended by substituting the existing dollar
limitation referred to in subclause (iii) of subsection (b) as follows:
$20,000,000 in lieu of $15,000,000.

     4. Amendment to Section 7.05 (Restricted Payments). Section 7.05 is hereby
amended by deleting the word "and" at the end of clause (d), inserting the word
"and" at the end of clause (e) and adding the following clause (f) thereafter:
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          "(f) at any time and from time to time during the 2005 Fiscal Year,
make Restricted Payments in an aggregate amount not to exceed $310,000,000;"

     5. Representations and Warranties. On and as of the date hereof, the
Borrower hereby confirms that the representations and warranties set forth in
Article V of the Credit Agreement are true and correct in all material respects,
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct as of such
earlier date.

     6. Effectiveness of Amendment. This Amendment shall become effective as of
the date of receipt by the Administrative Agent of counterparts of this
Amendment duly executed by the Borrower and the Required Lenders.

     7. Continuing Effect; No Other Amendments or Consents. Except as expressly
provided herein, all of the terms and provisions of the Credit Agreement are and
shall remain in full force and effect. The amendments and consent provided for
herein are limited to the specific subsections of the Credit Agreement specified
herein and shall not constitute a consent, waiver or amendment of, or an
indication of the Administrative Agent's or the Lenders' willingness to consent
to any action requiring consent under any other provisions of the Credit
Agreement or the same subsection for any other date or time period.

     8. Expenses. The Borrower agrees to pay and reimburse the Administrative
Agent for all its reasonable costs and out-of-pocket expenses incurred in
connection with the preparation and delivery of this Amendment, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

     9. Counterparts. This Amendment may be executed in any number of
counterparts by the parties hereto (including by facsimile transmission), each
of which counterparts when so executed shall be an original, but all the
counterparts shall together constitute one and the same instrument.

     10. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                        MANOR CARE, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        JPMORGAN CHASE BANK, N.A., as a Lender
                                           and as Administrative Agent

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>
                                            Signature Page to First Amendment to
                                              Manor Care, Inc. Credit Agreement,
                                                        dated as of May 27, 2005

                                        [INSERT LENDER NAME], as a Lender

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>
                                            Signature Page to First Amendment to
                                              Manor Care, Inc. Credit Agreement,
                                                        dated as of May 27, 2005

                                        [INSERT LENDER NAME], as a Lender

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------<PAGE>

                                                                   EXHIBIT 10(a)

                  2006 Management Incentive Plan General Terms

Authority

The Management Incentive Plan is established by the Board's Executive
Organization & Compensation Committee (the "Committee") under the 1997 Long-Term
Performance Plan.

Objective

The plan's objective is to reward eligible participants for their contributions
toward the company's fiscal year business goals.

Participation

The plan's participants are those employees of Applied Industrial Technologies,
Inc. designated as participants by the Committee.

Eligibility for Awards

To be eligible for an award under the plan, assuming plan goals are met, a
participant must comply with the terms and conditions of the 1997 Long-Term
Performance Plan. In addition, except as provided in the 1997 Long-Term
Performance Plan, the participant must be actively employed by Applied on June
30, 2006, except,

      -- Participants retiring at age 55 or older under an Applied retirement
      plan are eligible for a prorated award based on date of retirement
      (calculated using number of quarters' and partial quarters'
      participation).

      -- Participants whose employment ceases due to death or permanent and
      total disability are eligible for a prorated award based on date of
      termination (calculated using number of quarters' and partial quarters'
      participation).

Goals

The Committee establishes the plan's goals.

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Other

The Committee has the authority, subject to the plan's express provisions, to
construe the plan, to establish, amend, and rescind rules and regulations
relating to the plan, and to make all other determinations in the Committee's
judgment necessary or desirable for the plan's administration.

The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the plan in the manner and to the extent it shall deem
expedient to carry the plan into effect. All Committee action under these
provisions shall be conclusive for all purposes.<PAGE>

                                                                   EXHIBIT 10(b)

                     PERFORMANCE GRANT TERMS AND CONDITIONS

      Your Performance Grant (the "Award") is made by Applied Industrial
Technologies, Inc., an Ohio corporation ("Applied"). The Award is governed by
Applied's 1997 Long-Term Performance Plan (the "Plan"), including the policies
adopted by the Executive Organization & Compensation Committee of the Board of
Directors (the "Committee") under the Plan, and is subject to the following
terms and conditions:

1.    ELIGIBILITY. Only key senior officers that have broad policy-making
functions that directly contribute to Applied's long-term success and
profitability are eligible to receive Performance Award grants.

2.    VESTING; PAYMENT. Your Award will vest, in whole or in part, three years
following the effective grant date of your Award (the "Performance Period") upon
the achievement of the performance goals set forth in the Performance Grant
Summary enclosed with these Terms and Conditions. Your Award will be payable, at
the Committee's discretion, in cash or shares ("Shares") of Applied's common
stock (or both). The Committee may determine the form of payment of your Award
at any time during or at the conclusion of the Performance Period. Shares used
in payment of the Award shall be valued at their Fair Market Value (as defined
in the Plan) as of the last day of the Performance Period. Applied shall make
payment of any amount due to you under the Award promptly following the
availability of audited financial statements for the final year of the
Performance Period. Applied may withhold from the amount payable to you under
your Award any amounts it deems necessary pursuant to federal, state or local
tax laws, including withholding requirements.

3.    TERMINATION OF EMPLOYMENT OR EXECUTIVE OFFICER STATUS. If, during the
Performance Period, your employment with Applied is terminated due to death,
permanent disability, or retirement in accordance with an established retirement
policy of Applied, then, at the end of the Performance Period, you (or your
beneficiary whom you have designated to Applied in writing) shall be entitled to
receive a pro rata payment under the Award equal to (i) a fraction the numerator
of which is the number of fiscal quarters (including a portion of a quarter)
elapsed in the Performance Period prior to the date of your termination and the
denominator of which is twelve, multiplied by (ii) what would have been your
actual Award based on the achievement of the performance goals set forth in the
Performance Grant Summary. If, during the Performance Period, you cease to be an
employee of Applied for any reason other than those specifically set forth above
or in section 4 hereof, then your Award will be forfeited and no amount shall be
due or payable to you pursuant to the Award. Also, if, during the Performance
Period, you cease to be a Board-elected executive officer of Applied (but remain
an employee), then your Award will be forfeited and no amount shall be due or
payable to you pursuant to the Award.

      Notwithstanding anything in these terms and conditions, the Committee may
terminate the Award and no amount shall be due or payable to you pursuant to the
Award, if the Committee determines, in its sole discretion, that you have
committed an act inimical to Applied's interests, including, without limitation,
your unauthorized disclosure of proprietary or confidential information of
Applied, your competition with Applied, or your solicitation of Applied
associates. The Committee's determination shall be effective as of the time of
your act.

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4.    CHANGE IN CONTROL. Upon a Change in Control (as defined in the Plan), your
Award shall vest and you shall be entitled to receive in full satisfaction of
all amounts due or which may become due under the Award, a pro rata payment
under the Award equal to (i) a fraction the numerator of which is the number of
fiscal quarters (including a portion of a quarter) elapsed in the Performance
Period prior to the date of the Change in Control and the denominator of which
is twelve, multiplied by (ii) your target award amount.

5.    LIMITATION ON RIGHTS. The Award shall not confer upon you any rights
whatsoever other than those expressly set forth herein, in the Plan or in
policies adopted by the Committee, including without limitation any right to
continued employment with Applied (or its affiliates) or any rights as a
shareholder in respect of any of the Shares that may become issuable pursuant to
the Award until and unless Applied has issued a certificate or certificates for
the Shares.

6.    RESTRICTIONS ON SHARES. Applied may require, as a condition to its
issuance and delivery of certificates for Shares issuable under the Award, the
delivery to Applied of a commitment in writing by you that (i) at the time of
issuance, it is your intention to acquire the Shares for your own account for
investment only and not with a view to, or for resale in connection with, the
distribution thereof; (ii) you understand that the Shares may be "restricted
securities" as defined in Rule 144 issued under the Securities Act of 1933, as
amended (the "Act"); and (iii) any resale, transfer or other disposition of the
Shares will be accomplished only in compliance with Rule 144, the Act, or other
or subsequent rules and regulations thereunder. Applied may place on the
certificates a legend reflecting that commitment and Applied may refuse to
permit transfer of the certificates until it has been furnished evidence
satisfactory to it that no violation of the Act or the rules and regulations
thereunder would be involved in the transfer.

7.    DISCRETIONARY ADJUSTMENT FOLLOWING MERGER, SALE OF ASSETS; STOCK ISSUANCE,
ETC. In the event that, during the Performance Period, Applied merges,
consolidates, sells or acquires a substantial amount of assets, issues a
substantial amount of its capital stock, reorganizes, or engages in any other
transaction or series of transactions, the Committee, in its sole discretion,
may change the performance goals upon which the vesting of your Award is
conditioned, in order to prevent diminution or enlargement of the benefits
intended to be conferred by the Award in such manner as the Committee may
determine is equitably required by the changes or events.

8.    NONASSIGNABILITY. The Award and the rights granted thereunder are not
assignable or transferable, in whole or in part, and may not be otherwise
disposed of by you, other than by will or by the laws of descent and
distribution.

9.    COMMITTEE AUTHORITY. The Committee shall have authority, subject to the
Plan's express provisions, to construe these terms and conditions and the Plan,
to establish, amend and rescind rules and regulations relating to the Plan, and
to make all other determinations in the Committee's judgment necessary or
desirable for the Plan's administration. The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan or these terms
and conditions in the manner and to the extent it shall deem expedient to carry
the Plan into effect. All Committee action under this Section's provisions shall
be conclusive for all purposes.

10.   RELATIONSHIP TO THE PLAN. In the event of any inconsistency between these
terms and conditions and the Plan or the Committee's policies, the Plan or the
policies shall govern. Terms not otherwise defined in these terms and conditions
have the meaning ascribed them in the Plan.

<PAGE>

Notwithstanding any provisions hereof, these terms and conditions and the Award
shall be subject to all of the Plan's provisions in effect from time to time,
which are incorporated herein by reference.

                                                                  (January 2002)

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