Document:

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                                                                   EXHIBIT 10.16

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                             PEDIATRIX MEDICAL GROUP

                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                      Originally Dated as of June 27, 1996
                 As Amended and Restated as of November 1, 2000

                      FLEET NATIONAL BANK, Agent and Lender
                  SUNTRUST BANK, Documentation Agent and Lender

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

<S>     <C>                                                                                                     <C>
1.       Restatement; Definitions.................................................................................1
         1.1.     Restatement.....................................................................................1
2.       The Credits.............................................................................................17
         2.1.     Revolving Credit...............................................................................17
                  2.1.1.   Revolving Loan........................................................................17
                  2.1.2.   Maximum Amount of Revolving Credit....................................................17
                  2.1.3.   Borrowing Requests....................................................................17
                  2.1.4.   Loan Accounts; Revolving Notes........................................................18
         2.2.     Letters of Credit..............................................................................18
                  2.2.1.   Issuance of Letters of Credit.........................................................18
                  2.2.2.   Requests for Letters of Credit........................................................18
                  2.2.3.   Form and Expiration of Letters of Credit..............................................19
                  2.2.4.   Lenders' Participation in Letters of Credit...........................................19
                  2.2.5.   Reimbursement of Payment..............................................................19
                  2.2.6.   Uniform Customs and Practice..........................................................19
                  2.2.7.   Subrogation...........................................................................20
                  2.2.8.   Modification, Consent, etc............................................................20
         2.3.     The Mortgage Credit............................................................................20
                  2.3.1.   Mortgage Loan.........................................................................20
                  2.3.2.   Mortgage Note.........................................................................20
         2.4.     Application of Proceeds........................................................................20
                  2.4.1.   The Loans.............................................................................21
                  2.4.2.   Specifically Prohibited Applications..................................................21
                  2.4.3.   Letters of Credit.....................................................................21
         2.5.     Nature of Obligations of Lenders to Make Extensions of Credit..................................21
         2.6.     Obligations Joint and Several..................................................................21
3.       Interest; Eurodollar Pricing Options; Fees..............................................................21
         3.1.     Interest.......................................................................................21
         3.2.     Eurodollar Pricing Options.....................................................................22
                  3.2.1.   Election of Eurodollar Pricing Options................................................22
                  3.2.2.   Notice to Lenders and the Borrowers...................................................22
                  3.2.3.   Selection of Eurodollar Interest Periods..............................................22
                  3.2.4.   Additional Interest...................................................................23
                  3.2.5.   Violation of Legal Requirements.......................................................23
                  3.2.6.   Funding Procedure.....................................................................23
         3.3.     Commitment Fees................................................................................23
                  3.3.1.   Fee Base..............................................................................23
                  3.3.2.   Fee Rate..............................................................................24
         3.4.     Letter of Credit Fees..........................................................................24
         3.5.     Reserve Requirements, etc......................................................................24
         3.6.     Taxes..........................................................................................25
         3.7.     Capital Adequacy...............................................................................25
         3.8.     Regulatory Changes.............................................................................26
         3.9.     Computations of Interest and Fees..............................................................26
4.       Payment.................................................................................................26

</TABLE>

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<TABLE>
<CAPTION>

<S>     <C>                                                                                                     <C>
         4.1.     Payment of Revolving Loan......................................................................26
                  4.1.1.   Payment at Maturity...................................................................26
                  4.1.2.   Mandatory Prepayment..................................................................26
                  4.1.3.   Voluntary Prepayments of Revolving Loan...............................................27
                  4.1.4.   Reborrowing; Application of Payments..................................................27
         4.2.     Payment of Letters of Credit...................................................................27
                  4.2.1.   Payments at Maturity and Upon Acceleration of Maturity................................27
                  4.2.2.   Mandatory Prepayment..................................................................27
         4.3.     Payment of Mortgage Loan.......................................................................27
                  4.3.1.   Payment at Maturity...................................................................27
                  4.3.2.   Mandatory Prepayments of the Mortgage Loan............................................27
                  4.3.3.   Voluntary Prepayments of the Mortgage Loan............................................28
                  4.3.4.   No Reborrowing........................................................................28
5.       Conditions to Extending Credit..........................................................................28
         5.1.     Conditions on Initial Closing Date on the Revolving Loan.......................................28
                  5.1.1.   Revolving Notes.......................................................................28
                  5.1.2.   Payment of Fee........................................................................28
                  5.1.3.   Security Agreement....................................................................28
         5.2.     The Mortgage Loan..............................................................................28
         5.3.     Conditions to Making Each Permitted Acquisition Advance........................................28
                  5.3.1.   Permitted Acquisition.................................................................28
                  5.3.2.   Notes and Credit Documents; Merger....................................................29
         5.4.     Conditions to Each Extension of Credit.........................................................30
                  5.4.1.   Officer's Certificate.................................................................30
                  5.4.2.   Legality, etc.........................................................................30
                  5.4.3.   Proper Proceedings....................................................................30
                  5.4.4.   General...............................................................................30
6.       General Covenants.......................................................................................30
         6.1.     Taxes and Other Charges; Accounts Payable......................................................30
                  6.1.1.   Taxes and Other Charges...............................................................30
                  6.1.2.   Accounts Payable......................................................................31
         6.2.     Conduct of Business, etc.......................................................................31
                  6.2.1.   Types of Business.....................................................................31
                  6.2.2.   Maintenance of Properties.............................................................31
                  6.2.3.   Statutory Compliance..................................................................31
                  6.2.4.   No Subsidiaries.......................................................................31
                  6.2.5.   Compliance with Material Agreements...................................................32
         6.3.     Insurance......................................................................................32
                  6.3.1.   Business Interruption Insurance.......................................................32
                  6.3.2.   Property Insurance....................................................................32
                  6.3.3.   Liability Insurance...................................................................32
         6.4.     Financial Statements and Reports...............................................................32
                  6.4.1.   Annual Reports........................................................................32
                  6.4.2.   Quarterly Reports.....................................................................33
                  6.4.3.   Other Reports.........................................................................33
                  6.4.4.   Notice of Litigation, Defaults, etc...................................................34

</TABLE>

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<TABLE>
<CAPTION>

<S>     <C>                                                                                                     <C>
                  6.4.5.   ERISA Reports.........................................................................34
                  6.4.6.   Other Information.....................................................................35
         6.5.     Certain Financial Tests........................................................................35
                  6.5.1.   Consolidated Financing Debt to Consolidated EBITDA....................................35
                  6.5.2.   Consolidated Total Debt Service.......................................................35
                  6.5.3.   Consolidated Net Worth................................................................35
                  6.5.4.   Consolidated EBITDA to Consolidated Net Revenue.......................................35
                  6.5.5.   Consolidated Tangible Net Worth.......................................................35
         6.6.     Indebtedness...................................................................................35
         6.7.     Guarantees.....................................................................................36
         6.8.     Liens..........................................................................................37
         6.9.     Investments and Permitted Acquisitions.........................................................37
         6.10.    Distributions..................................................................................38
         6.11.    Capital Expenditures...........................................................................38
         6.12.    Asset Dispositions and Mergers.................................................................38
         6.13.    ERISA, etc.....................................................................................39
         6.14.    Transactions with Affiliates...................................................................39
         6.15.    Environmental Laws.............................................................................39
                  6.15.1.  Compliance with Law and Permits.......................................................39
                  6.15.2.  Notice of Claims, etc.................................................................39
         6.16.    Depository Accounts............................................................................39
7.       Representations and Warranties..........................................................................40
         7.1.     Organization and Business......................................................................40
                  7.1.1.   The Obligors..........................................................................40
                  7.1.2.   Qualification.........................................................................40
                  7.1.3.   Capitalization........................................................................40
         7.2.     Financial Statements and Other Information; Material Agreements................................40
                  7.2.1.   Financial Statements and Other Information............................................40
                  7.2.2.   Material Agreements...................................................................41
         7.3.     Changes in Condition...........................................................................41
         7.4.     Title to Assets................................................................................41
         7.5.     Operations in Conformity With Law, etc.........................................................41
         7.6.     Litigation.....................................................................................41
         7.7.     Authorization and Enforceability...............................................................41
         7.8.     No Legal Obstacle to Agreements................................................................42
         7.9.     Defaults.......................................................................................42
         7.10.    Licenses, etc..................................................................................42
         7.11.    Tax Returns....................................................................................43
         7.12.    Future Expenditures............................................................................43
         7.13.    Environmental Regulations......................................................................43
                  7.13.1.  Environmental Compliance..............................................................43
                  7.13.2.  Environmental Litigation..............................................................43
                  7.13.3.  Environmental Condition of Properties.................................................44
         7.14.    Pension Plans..................................................................................44
         7.15.    Acquisition Agreement, etc.....................................................................44
         7.16.    Disclosure.....................................................................................44

</TABLE>

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<TABLE>
<CAPTION>

<S>     <C>                                                                                                     <C>
8.       Defaults................................................................................................44
         8.1.     Events of Default..............................................................................44
                  8.1.1.   Payment...............................................................................44
                  8.1.2.   Specified Covenants...................................................................45
                  8.1.3.   Other Covenants.......................................................................45
                  8.1.4.   Representations and Warranties........................................................45
                  8.1.5.   Cross Default.........................................................................45
                  8.1.6.   Enforceability, etc...................................................................45
                  8.1.7.   Medicaid, etc.........................................................................45
                  8.1.8.   Change of Control.....................................................................45
                  8.1.9.   Judgments.............................................................................45
                  8.1.10.  ERISA.................................................................................46
                  8.1.11.  Bankruptcy, etc.......................................................................46
         8.2.     Certain Actions Following an Event of Default..................................................46
                  8.2.1.   Terminate Obligation to Extend Credit.................................................47
                  8.2.2.   Specific Performance; Exercise of Rights..............................................47
                  8.2.3.   Acceleration..........................................................................47
                  8.2.4.   Enforcement of Payment................................................................47
                  8.2.5.   Cumulative Remedies...................................................................47
         8.3.     Annulment of Defaults..........................................................................47
         8.4.     Waivers........................................................................................48
9.       Guarantees..............................................................................................48
         9.1.     Guarantees of Credit Obligations...............................................................48
         9.2.     Continuing Obligation..........................................................................48
         9.3.     Waivers with Respect to Credit Obligations.....................................................49
         9.4.     Lenders' Power to Waive, etc...................................................................50
         9.5.     Information Regarding the Borrowers, etc.......................................................51
         9.6.     Certain Guarantor Representations..............................................................51
         9.7.     Subrogation....................................................................................52
         9.8.     Subordination..................................................................................52
         9.9.     Future Subsidiaries; Further Assurances........................................................52
10.      Expenses; Indemnity.....................................................................................52
         10.1.    Expenses.......................................................................................52
         10.2.    General Indemnity..............................................................................53
         10.3.    Indemnity With Respect to Letters of Credit....................................................53
11.      Operations; Agent.......................................................................................53
         11.1.    Interests in Credits...........................................................................53
         11.2.    Agent's Authority to Act, etc..................................................................54
         11.3.    Borrowers to Pay Agent, etc....................................................................54
         11.4.    Lender Operations for Advances.................................................................54
                  11.4.1.  Advances..............................................................................54
                  11.4.2.  Letters of Credit.....................................................................55
                  11.4.3.  Agent to Allocate Payments, etc.......................................................55
                  11.4.4.  Delinquent Lenders; Nonperforming Lenders.............................................55
         11.5.    Sharing of Payments, etc.......................................................................56
         11.6.    Amendments, Consents, Waivers, etc.............................................................56
</TABLE>

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<TABLE>
<CAPTION>

<S>     <C>                                                                                                     <C>
         11.7.    Agent's Resignation............................................................................57
         11.8.    Concerning the Agent...........................................................................57
                  11.8.1.  Action in Good Faith, etc.............................................................57
                  11.8.2.  No Implied Duties, etc................................................................57
                  11.8.3.  Validity, etc.........................................................................57
                  11.8.4.  Compliance............................................................................58
                  11.8.5.  Employment of Agents and Counsel......................................................58
                  11.8.6.  Reliance on Documents and Counsel.....................................................58
                  11.8.7.  Agent's Reimbursement.................................................................58
         11.9.    Rights as a Lender.............................................................................58
         11.10.   Independent Credit Decision....................................................................58
         11.11.   Indemnification................................................................................59
12.      Successors and Assigns; Lender Assignments and Participations...........................................59
         12.1.    Assignments by Lenders.........................................................................59
                  12.1.1.  Assignees and Assignment Procedures...................................................59
                  12.1.2.  Terms of Assignment and Acceptance....................................................59
                  12.1.3.  Register..............................................................................60
                  12.1.4.  Acceptance of Assignment and Assumption...............................................60
                  12.1.5.  Federal Reserve Bank..................................................................61
                  12.1.6.  Further Assurances....................................................................61
         12.2.    Credit Participants............................................................................61
         12.3.    Replacement of Lender..........................................................................62
13.      Notices.................................................................................................62
14.      Course of Dealing; Amendments and Waivers...............................................................63
15.      Defeasance..............................................................................................63
16.      Venue; Service of Process...............................................................................63
17.      WAIVER OF JURY TRIAL....................................................................................64
18.      General.................................................................................................64

</TABLE>

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                                    EXHIBITS

2.1.4          -  Form of Revolving Note
2.3.2          -  Mortgage Note
5.1.3          -  Form of Security Agreement
5.2.2          -  Joinder Agreement
5.3.1          -  Officer's Certificate
6.4.1          -  Financial Officer's Certificate for Annual Reports
6.4.2          -  Financial Officer's Certificate for Quarterly Reports
6.6            -  Existing Indebtedness
6.7            -  Existing Guarantees
6.8            -  Existing Liens
6.9.7          -  Existing Investments
6.11           -  Asset Dispositions and Mergers
6.14           -  Transactions with Affiliates
7.1            -  Company and its Subsidiaries
7.2.2          -  Material Agreements
7.3            -  Financing Debt, Certain Investments, etc.
7.4            -  Changes in Condition
7.6            -  Litigation
7.11           -  Tax Assessment
7.13           -  Environmental
7.14           -  Multi-employer and Defined Benefit Plans
8.1.6          -  Certain Stockholders of the Company
12.1.1         -  Assignment and Acceptance

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                             PEDIATRIX MEDICAL GROUP
                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

         This Agreement, originally dated as of June 27, 1996 and amended and
restated as of November 1, 2000, is among Pediatrix Medical Group, Inc., a
Florida corporation, the Related Entities of Pediatrix Medical Group, Inc. from
time to time party hereto, the Lenders from time to time party hereto including
Fleet National Bank, formerly known as The First National Bank of Boston, both
in its capacity as a Lender under the Revolving Loan, the Letters of Credit and
Mortgage Loan and in its capacity as agent for itself and the other Lenders,
SunTrust Bank, both in its capacity as a Lender under the Revolving Loan and the
Letters of Credit and in its capacity as documentation agent and UBS AG,
Stamford Branch, in its capacity as a Lender under the Revolving Loan and the
Letters of Credit. The parties agree as follows:

1. RESTATEMENT; DEFINITIONS.

         1.1. RESTATEMENT. Effective as of the Initial Closing Date, this
Agreement amends and restates in its entirety the Credit Agreement dated as of
June 27, 1996, as previously amended and in effect on the date hereof, among the
Borrowers and a group of lenders for which the Agent is acting as agent. Amounts
in respect of interest, commitment fees, and other amounts payable hereunder
shall be payable in accordance with the terms of this Agreement as in effect
prior to the amendment and restatement on the Initial Closing Date for periods
prior to the Initial Closing Date and in accordance with this Agreement as
amended and restated hereby for periods from and after the Initial Closing Date.

         1.1. CERTAIN RULES OF CONSTRUCTION. Certain capitalized terms are used
in this Agreement and in the other Credit Documents with the specific meanings
defined below in this Section 1. Except as otherwise explicitly specified to the
contrary or unless the context clearly requires otherwise, (a) the capitalized
term "Section" refers to sections of this Agreement, (b) the capitalized term
"Exhibit" refers to exhibits to this Agreement, (c) references to a particular
Section include all subsections thereof, (d) the word "including" shall be
construed as "including without limitation", (e) accounting terms not otherwise
defined herein have the meaning provided under GAAP, (f) terms defined in the
UCC and not otherwise defined herein have the meaning provided under the UCC,
(g) references to a particular statute or regulation include all rules and
regulations thereunder and any successor statute, regulation or rules, in each
case as from time to time in effect and (h) references to a particular Person
include such Person's successors and assigns to the extent not prohibited by
this Agreement and the other Credit Documents. References to "the date hereof"
mean the date first set forth above.

         1.2. "ACCUMULATED BENEFIT OBLIGATIONS" means the actuarial present
value of the accumulated benefit obligations under any Plan, calculated in
accordance with Statement No. 87 of the Financial Accounting Standards Board.

         1.3. "ACQUIRED PARTY" shall mean any Person, 100% of the outstanding
capital stock or beneficial interests or substantially all of the assets of
which are acquired by any Borrower in connection with a Permitted Acquisition.

         1.4. "AFFECTED LENDER" is defined in Section 12.3.

         1.5. "AFFILIATE" means, with respect to any Borrower (or any other
specified Person), any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with such Borrower, and
shall include (a) any executive officer or director or general partner of such
Borrower and (b) any Person of which such Borrower or any Affiliate (as defined
in clause (a) above) of such Borrower shall, directly or indirectly,
beneficially own either (i) at least 10% of the outstanding equity securities
having the general power to vote or (ii) at least 10% of all equity interests.

         1.6. "AGENT" means Fleet National Bank, in its capacity as agent for
the Lenders hereunder, as well as its successors and assigns in such capacity.

         1.7. "AGREEMENT" means this Agreement as from time to time amended,
modified and in effect.

         1.8. "APPLICABLE MARGIN" means on each day, the per annum percentage in
the table below set opposite the ratio of (i) Consolidated Financing Debt as of
the end of the most recent fiscal quarter for which financial statements have
been furnished to the Lenders in accordance with Sections 6.4.1 and 6.4.2 prior
to such day to (ii) the Consolidated EBITDA for the period of four consecutive
fiscal quarters ending with such fiscal quarter:

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                              APPLICABLE MARGIN (%)

<TABLE>
<CAPTION>

     Ratio of Consolidated
       Financing Debt to
         Consolidated                     Base Rate               Eurodollar Pricing               Commitment
            EBITDA                         Option                       Option                         Fee
     ---------------------                ---------                -----------------               -----------
<S>                                        <C>                         <C>                           <C>
            >=.0x                            0                          2.50%                         0.500
        >= 1.5x <2.0x                        0                          2.25%                         0.375%
            <1.5x                            0                          2.00%                         0.375%

</TABLE>

         Changes in the Applicable Margin shall occur on each Pricing Reset
Date; PROVIDED, HOWEVER, that in the event that the financial statements
required to be delivered pursuant to Section 6.4.1 or 6.4.2, as applicable, are
not delivered by the latest date permissible under Section 6.4.1 or 6.4.2, as
the case may be (the "LATE DELIVERY DATE"), and if, upon deliver of such
financial statements, it is determined that delivery of such financial
statements on the Late Delivery Date would have resulted in an increase in the
Applicable Margin on the first Pricing Reset Date after the Late Delivery Date
(the "LATE PRICING RESET DATE"), such increase will be deemed effective as of
the Late Pricing Reset Date.

         1.9. "APPLICABLE RATE" means, at any date, the sum of:

                  (a)(i)   with respect to any portion of the Revolving Loan
                           subject to a Eurodollar Pricing Option, the sum of
                           the Applicable Margin attributable to such portion of
                           the Revolving Loan PLUS the Eurodollar Rate with
                           respect to such Eurodollar Pricing Option;

                  (ii)     with respect to any other portion of the Revolving
                           Loan, the sum of the Applicable Margin attributable
                           to such portion of the Revolving Loan PLUS the Base
                           Rate;

                  (iii)    with respect to the Mortgage Loan, the rate set forth
                           in the Mortgage Note;

         PLUS     (b)      an additional 2% effective on the day the Agent
                           notifies the Company that the interest rates
                           hereunder are increasing as a result of the
                           occurrence and continuance of an Event of Default
                           until the earlier of such time as (i) such Event of
                           Default is no longer continuing or (ii) such Event of
                           Default is deemed no longer to exist, in each case
                           pursuant to Section 8.3.

         1.10. "APPROVED SUBORDINATED DEBT" means debt subordinated and junior
in right of payment to prior payment in full of all Credit Obligations pursuant
to a subordination agreement, the terms of which shall be satisfactory to the
Agent.

         1.11. "ACQUISITION AGREEMENT" means the documentation pursuant to which
any Borrower commits itself to make a Permitted Acquisition.

         1.12. "ASSIGNEE" is defined in Section 12.11.

         1.13. "ASSIGNMENT AND ACCEPTANCE" is defined in Section 12.1.1.

         1.14. "BANKING DAY" means any day other than Saturday, Sunday or a day
on which banks in Boston, Massachusetts are authorized or required by law or
other governmental action to close and, if such term is used with reference to a
Eurodollar Pricing Option, any day on which dealings are effected in the
Eurodollars in question by first-class banks in the inter-bank Eurodollar
markets in New York, New York.

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         1.15. "BANKRUPTCY CODE" means Title 11 of the United States Code.

         1.16. "BANKRUPTCY DEFAULT" means an Event of Default referred to in
Section 8.1.11.

         1.17. "BASE RATE" means, on any date, the greater of (a) the rate of
interest announced by the Agent at the Boston Office as its Base Rate or (b) the
sum of 1/2% PLUS the Federal Funds Rate.

         1.18. "BORROWERS" means, jointly and severally, the Company, its
Related Entities and such other Related Entities as shall become Borrowers
hereunder in accordance with Section 5.3.2.

         1.19. "BOSTON OFFICE" means the principal banking office of the Agent
in Boston, Massachusetts.

         1.20. "BYLAWS" means all written bylaws, rules, regulations and all
other documents relating to the management, governance or internal regulation of
any Person other than an individual, or interpretive of the Charter of such
Person, all as from time to time in effect.

         1.21. "CAPITAL EXPENDITURES" means, for any period, amounts added or
required to be added to the property, plant and equipment or other fixed assets
account on the Consolidated balance sheet of the Company and its Subsidiaries,
prepared in accordance with GAAP, in respect of (a) the acquisition,
construction, improvement or replacement of land, buildings, machinery,
equipment, leaseholds and any other real or personal property, and (b) to the
extent not included in clause (a) above, materials, contract labor and direct
labor relating thereto (excluding amounts properly expensed as repairs and
maintenance in accordance with GAAP).

         1.22. "CAPITALIZED LEASE" means any lease which is required to be
capitalized on the balance sheet of the lessee in accordance with GAAP,
including Statement Nos. 13 and 98 of the Financial Accounting Standards Board.

         1.23. "CAPITALIZED LEASE OBLIGATIONS" means the amount of the liability
reflecting the aggregate discounted amount of future payments under all
Capitalized Leases calculated in accordance with GAAP, including Statement Nos.
13 and 98 of the Financial Accounting Standards Board.

         1.24. "Cash Equivalents" means:

                  (a) negotiable certificates of deposit, time deposits
         (including sweep accounts), demand deposits and bankers' acceptances
         issued by any United States financial institution having capital and
         surplus and undivided profits aggregating at least $100,000,000 and
         rated at least Prime-1 by Moody's Investors Service, Inc. or A-1 by
         Standard & Poor's Ratings Group or issued by any Lender;

                  (b) short-term corporate obligations rated at least Prime-1 by
         Moody's Investors Service, Inc. or A-1 by Standard & Poor's Ratings
         Group or issued by any Lender;

                  (c) any direct obligation of the United States of America or
         any agency or instrumentality thereof, or of any state or municipality
         thereof, (i) which has a

remaining maturity at the time of purchase of not more than one year or which is
subject to a repurchase agreement with any Lender (or any other financial
institution referred to in clause (a) above) exercisable within one year from
the time of purchase and (ii) which, in the case of obligations of any state or

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<PAGE>   11

municipality, is rated at least Aa by Moody's Investors Service, Inc. or AA by
Standard & Poor's Ratings Group; and

                  (d) any mutual fund or other pooled investment vehicle rated
         at least Aa by Moody's Investors Service, Inc. or AA by Standard &
         Poor's Ratings Group which invests principally in obligations described
         above.

         1.25. "CERCLA" means the federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980.

         1.26. "CERCLIS" means the federal Comprehensive Environmental Response
Compensation Liability Information System List (or any successor document)
promulgated under CERCLA.

         1.27. "CHARTER" means the articles of organization, certificate of
incorporation, statute, constitution, joint venture agreement, partnership
agreement, trust indenture, limited liability company agreement or other charter
document of any Person other than an individual, each as from time to time in
effect.

         1.28. "CLOSING DATE" means the Initial Closing Date and each other date
on which any extension of credit is made pursuant to Sections 2.1 or 2.2.

         1.29. "CODE" means the federal Internal Revenue Code of 1986, as
amended from time to time.

         1.30. "COMMITMENT" means, with respect to any Lender, such Lender's
obligations to extend the credits contemplated by Section 2. The original
Commitments are set forth in Section 11.1 and the current Commitments are
recorded from time to time in the Register.

         1.31. "COMPANY" means Pediatrix Medical Group, Inc., a Florida
corporation.

         1.32. "COMPUTATION COVENANTS" means Sections 6.5, 6.9.4, 6.11, 6.12 and
6.13.

         1.33. "CONSOLIDATED" and "CONSOLIDATING", when used with reference to
any term, mean that term as applied to the accounts of the Company (or other
specified Person) and all of its Related Entities (or other specified group of
Persons), or such of its Related Entities as may be specified, consolidated (or
combined) or consolidating (or combining), as the case may be, in accordance
with GAAP and with appropriate deductions for minority interests in Related
Entities.

         1.34. "CONSOLIDATED EBITDA" means, for any period, an amount equal to
the sum of (a) the Net Income (or loss) of the Company and its Related Entities
plus (b) all amounts deducted in computing such Net Income in respect of (i)
taxes based upon or measured by income, (ii) Consolidated Interest Expense and
(iii) depreciation and amortization.

         1.35. "CONSOLIDATED FINANCING DEBT" means, at any date, all Financing
Debt of the Company and its Related Entities.

         1.36. "CONSOLIDATED FIXED CHARGES" means, for any period, the sum of:

                                      -4-
<PAGE>   12

                  (a)  Consolidated Interest Expenses;

         PLUS     (b) the aggregate amount of all mandatory scheduled payments,
         prepayments and sinking fund payments with respect to principal paid or
         accrued by the Company and its Related Entities in respect of Financing
         Debt, including payments in the nature of principal under Capitalized
         Leases and Interest Rate Protection Agreements, in accordance with GAAP
         on a Consolidated basis;

         PLUS     (c)  any mandatory dividends paid or payable by the Company
         or any of its Related Entities to third parties.

         1.37. "CONSOLIDATED INTEREST EXPENSE" means, for any period, the
aggregate amount of interest, including commitment fees and payments in the
nature of interest under Capitalized Leases (whether such interest is reflected
as an item of expense or capitalized), paid or accrued by the Company and its
Related Entities in accordance with GAAP.

         1.38. "CONSOLIDATED NET REVENUE" means for any period,

                  (a) the net operating revenues (after reductions for returns,
         discounts, commissions and bad debt reserves) of the Company and its
         Related Entities determined in accordance with GAAP on a consolidated
         basis;

                  MINUS (b) any proceeds included in such net operating revenues
         from the sale, refinancing, condemnation, or destruction of assets.

         1.39. "CONSOLIDATED NET WORTH" means, at any date, the stockholders'
equity of the Company and its Related Entities at such date determined in
accordance with GAAP on a Consolidated basis.

         1.40. "CONSOLIDATED TANGIBLE NET WORTH" means, at any date, the total
of (a) stockholders' equity of the Company and its Related Entities determined
in accordance with GAAP on a Consolidated basis, MINUS (b) the amount of
intangible assets carried on the balance sheet of the Company and its
Subsidiaries determined in accordance with GAAP on a Consolidated basis,
including goodwill, patents, patent applications, copyrights, trademarks,
tradenames, research and development expense, organizational expense,
unamortized debt discount, deferred financing charges and debt acquisition
costs.

         1.41. "CONTROL GROUP PERSON" means the Company, any Subsidiary of the
Company and any Person which is a member of the controlled group or under common
control with the Company or any Subsidiary within the meaning of section 414 of
the Code or section 4001(a)(14) of ERISA.

         1.42. "Credit Documents" means:

                  (a) this Agreement, the Revolving Notes, each Letter of Credit
         and each draft presented or accepted under a Letter of Credit, the
         Mortgage Note and the Mortgage, each as from time to time in effect;

                  (b) the Security Agreement and all financial statements,
         reports, notices, mortgages, assignments, UCC financing statements or
         certificates delivered to the Agent or any of the Lenders by any of the
         Borrowers or any other Obligor in connection herewith or therewith; and

                                      -5-
<PAGE>   13

                  (c) any other present or future agreement or instrument from
         time to time entered into among any of the Borrowers or any other
         Obligor, on one hand, and the Agent, or all the Lenders, on the other
         hand, relating to, amending or modifying this Agreement or any other
         Credit Document referred to above or which is stated to be a Credit
         Document, each as from time to time in effect.

         1.43. "CREDIT OBLIGATION ADVANCE" is defined in Section 2.1.3.

         1.44. "CREDIT OBLIGATIONS" means all present and future liabilities,
obligations and Indebtedness of any of the Borrowers or any other Obligor owing
to the Agent or any Lender under or in connection with this Agreement or any
other Credit Document, including obligations in respect of principal, interest,
reimbursement obligations under Letters of Credit, commitment fees, amounts
provided for in Sections 3.2.4, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8 and 10 and other
fees, charges, indemnities and expenses from time to time owing hereunder or
under any other Credit Document (whether accruing before or after a Bankruptcy
Default).

         1.45. "CREDIT PARTICIPANT" is defined in Section 12.2.

         1.46. "CREDIT SECURITY" means all assets now or from time to time
hereafter subjected to a security interest, mortgage or charge (or intended or
required so to be subjected pursuant to the Security Agreement or any other
Credit Document) to secure the payment or performance of any of the Credit
Obligations.

         1.47. "DOCUMENTATION AGENT" means SunTrust Bank, in its capacity as
documentation agent for the Lenders hereunder, as well as its successors and
assigns in such capacity.

         1.48. "DEFAULT" means any Event of Default and any event or condition
which with the passage of time or giving of notice, or both, would become an
Event of Default and the filing against the Company, any of its Related Entities
or any other Obligor of a petition commencing an involuntary case under the
Bankruptcy Code.

         1.49. "DELINQUENCY PERIOD" is defined in Section 11.4.3.

         1.50. "DELINQUENT LENDER" is defined in Section 11.4.3.

         1.51. "DELINQUENT PAYMENT" is defined in Section 11.4.3.

         1.52. "DISTRIBUTION" means, with respect to the Company (or other
specified Person):

                  (a) the declaration or payment of any dividend or
         distribution, including dividends payable in shares of capital stock of
         or other equity interests in the Company (or such specified Person), on
         or in respect of any shares of any class of capital stock of or other
         equity interests in the Company (or such specified Person);

                  (b) the purchase or redemption of any shares of any class of
         capital stock of or other equity interest in the Company (or such
         specified Person) or of options, warrants or other rights for the
         purchase of such shares, directly, indirectly through a Related Entity
         or otherwise;

                  (c) any other distribution on or in respect of any shares of
         any class of capital stock of or equity or other beneficial interest in
         the Company (or such specified Person);

                                      -6-
<PAGE>   14

                  (d) any payment of principal or interest with respect to, or
         any purchase, redemption or defeasance of, any Indebtedness of the
         Company (or such specified Person) which by its terms or the terms of
         any agreement is subordinated to the payment of the Credit Obligations;
         and

                  (e) any payment, loan or advance by the Company (or such
         specified Person) to, or any other Investment by the Company (or such
         specified Person) in, the holder of any shares of any class of capital
         stock of or equity interest in the Company (or such specified Person),
         or any Affiliate of such holder;

PROVIDED, HOWEVER, that the term "Distribution" shall not include (i) dividends
payable in perpetual common stock of or other similar equity interests in the
Company (or such specified Person) or (ii) payments in the ordinary course of
business in respect of (A) reasonable compensation paid to employees, officers
and directors, (B) advances to employees for travel expenses, drawing accounts
and similar expenditures, or (C) rent paid to, or accounts payable for services
rendered or goods sold by, non-Affiliates that own capital stock of or other
equity interests in the Company (or such specified Person).

         1.53. "EBITDA" means, for any period, an amount equal to the sum of (a)
the Net Income (or loss) of any Person for such period PLUS (b) all amounts
deducted in computing such Net Income in respect of (i) taxes based upon or
measured by income, (ii) Interest Expense and (iii) depreciation and
amortization.

         1.54. "ENVIRONMENTAL LAWS" means all applicable federal, state or local
statutes, laws, ordinances, codes, rules, regulations and guidelines (including
consent decrees and administrative orders) relating to public health and safety
and protection of the environment, including OSHA.

         1.55. "ERISA" means the federal Employee Retirement Income Security Act
of 1974.

         1.56. "EURODOLLARS" means, with respect to any Lender, deposits of coin
or currency of United States of America in a non-United States office or an
international banking facility of such Lender.

         1.57. "EURODOLLAR BASIC RATE" means, for any Eurodollar Interest
Period, the rate of interest at which Eurodollar deposits in an amount
comparable to the portion of the Revolving Loan as to which a Eurodollar Pricing
Option has been elected and which have a term corresponding to such Eurodollar
Interest Period are offered to the Agent by first class banks in the inter-bank
Eurodollar market for delivery in immediately available funds at a Eurodollar
Office on the first day of such Eurodollar Interest Period as determined by the
Agent at approximately 10:00 a.m. (Boston time) two Banking Days prior to the
date upon which such Eurodollar Interest Period is to commence (which
determination by the Agent shall, in the absence of manifest error, be
conclusive).

         1.58. "EURODOLLAR INTEREST PERIOD" means any period, selected as
provided in Section 3.2.1, of one, two, three or six months, commencing on any
Banking Day and ending on the corresponding date in the subsequent calendar
month so indicated (or, if such subsequent calendar month has no corresponding
date, on the last day of such subsequent calendar month); PROVIDED, HOWEVER,
that subject to Section 3.2.3, if any Eurodollar Interest Period so selected
would otherwise begin or end on a date which is not a Banking Day, such
Eurodollar Interest Period shall instead begin or end, as the case may be, on
the immediately preceding or succeeding Banking Day as determined by the Agent
in accordance with the then current banking practice in the inter-bank
Eurodollar market with respect to Eurodollar deposits at the applicable
Eurodollar Office, which determination by the Agent shall, in the absence of
manifest error, be conclusive.

                                      -7-
<PAGE>   15

         1.59. "EURODOLLAR OFFICE" means such non-United States office or
international banking facility of the Agent as the Agent may from time to time
select.

         1.60. "EURODOLLAR PRICING OPTIONS" means the options granted pursuant
to Section 3.2.1 to have the interest on any portion of a Revolving Loan
computed on the basis of a Eurodollar Rate.

         1.61. "EURODOLLAR RATE" for any Eurodollar Interest Period means the
rate, rounded upward to the nearest 1/100%, obtained by dividing (a) the
Eurodollar Basic Rate for such Eurodollar Interest Period by (b) an amount equal
to 1 minus the Eurodollar Reserve Rate; PROVIDED, HOWEVER, that if at any time
during such Eurodollar Interest Period the Eurodollar Reserve Rate applicable to
any outstanding Eurodollar Pricing Option changes, the Eurodollar Rate for such
Eurodollar Interest Period shall automatically be adjusted to reflect such
change, effective as of the date of such change.

         1.62. "EURODOLLAR RESERVE RATE" means the stated maximum rate
(expressed as a decimal) of all reserves (including any basic, supplemental,
marginal or emergency reserve or any reserve asset), if any, as from time to
time in effect, required by any Legal Requirement to be maintained by any Lender
against (a) "Eurocurrency liabilities" as specified in Regulation D of the Board
of Governors of the Federal Reserve System applicable to Eurodollar Pricing
Options, (b) any other category of liabilities that includes Eurodollar deposits
by reference to which the interest rate on portions of the Revolving Loan
subject to Eurodollar Pricing Options is determined, (c) the principal amount of
or interest on any portion of the Revolving Loan subject to a Eurodollar Pricing
Option or (d) any other category of extensions of credit, or other assets, that
includes loans subject to a Eurodollar Pricing Option by a non-United States
office of any of the Lenders to United States residents, in each case without
the benefits of credits for prorations, exceptions or offsets that may be
available to a Lender.

         1.63. "EVENT OF DEFAULT" is defined in Section 8.1.

         1.64. "EXCHANGE ACT" means the federal Securities Exchange Act of 1934.

         1.65. "FACA" means the Federal Assignment of Claims Act as set forth in
31 U.S.C. ss. 3727 and 41 U.S.C. ss. 15.

         1.66. "FEDERAL FUNDS RATE" means, for any day, the rate equal to the
weighted average (rounded upward to the nearest 1/8%) of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, (a) as such weighted average is published for such day
(or, if such day is not a Banking Day, for the immediately preceding Banking
Day) by the Federal Reserve Bank of New York or (b) if such rate is not so
published for such Banking Day, as determined by the Agent using any reasonable
means of determination. Each determination by the Agent of the Federal Funds
Rate shall, in the absence of manifest error, be conclusive.

         1.67. "FINAL MATURITY DATE" means (i) with respect to the Revolving
Loan, September 30, 2001 and (ii) with respect to the Mortgage Loan, June 30,
2003.

         1.68. "FINANCIAL OFFICER" of the Company (or other specified Person)
means its chief executive officer, chief financial officer, chief operating
officer, chairman, president, treasurer or any of its vice presidents whose
primary responsibility is for its financial affairs, all of whose incumbency and
signatures have been certified to the Agent by the secretary or other
appropriate attesting officer of the Company (or such specified Person).

                                      -8-
<PAGE>   16

         1.69. "FINANCING DEBT" means each of the items described in clauses (a)
through (e) of the definition of the term "Indebtedness".

         1.70. "FUNDING LIABILITY" means (a) any Eurodollar deposit which was
used (or deemed by Section 3.2.6 to have been used) to fund any portion of the
Revolving Loan subject to a Eurodollar Pricing Option, and (b) any portion of
the Revolving Loan subject to a Eurodollar Pricing Option funded (or deemed by
Section 3.2.6 to have been funded) with the proceeds of any such Eurodollar
deposit.

         1.71. "GAAP" means generally accepted accounting principles as from
time to time in effect, including the statements and interpretations of the
United States Financial Accounting Standards Board PROVIDED, HOWEVER, that for
purposes of compliance with Section 6 (other than Section 6.4) and related
definitions, "GAAP" means such principles as in effect on the date hereof as
applied by the Borrowers in preparation of the financial statements referred to
in Section 7.2, and consistently followed, without giving effect to any
subsequent changes thereto.

         1.72. "GUARANTEE" means, with respect to the Company (or other
specified Person):

                  (a) any guarantee by the Company (or such specified Person) of
         the payment or performance of, or any contingent obligation by the
         Company (or such specified Person) in respect of, any Indebtedness or
         other obligation of any primary obligor other than the Company or other
         Borrower (or such specified Person);

                  (b) any other arrangement whereby credit is extended to a
         primary obligor on the basis of any promise or undertaking of the
         Company or other Borrower (or such specified Person), including any
         binding "comfort letter" or "keep well agreement" written by the
         Company (or such specified Person), to a creditor or prospective
         creditor of such primary obligor, to (i) pay the Indebtedness of such
         primary obligor, (ii) purchase an obligation owed by such primary
         obligor, (iii) pay for the purchase or lease of assets or services
         regardless of the actual delivery thereof or (iv) maintain the capital,
         working capital, solvency or general financial condition of such
         primary obligor;

                  (c) any liability of the Company (or such specified Person),
         as a general partner of a partnership in respect of Indebtedness or
         other obligations of such partnership;

                  (d) any liability of the Company (or such specified Person) as
         a joint venturer of a joint venture in respect of Indebtedness or other
         obligations of such joint venture;

                  (e) reimbursement obligations, whether contingent or matured,
         of the Company (or such specified Person) with respect to letters of
         credit, bankers acceptances, surety bonds, other financial guarantees
         and Interest Rate Protection Agreements,

whether or not any of the foregoing are reflected on the balance sheet of the
Company (or such specified Person) or in a footnote thereto; PROVIDED, HOWEVER,
that the term "Guarantee" shall not include endorsements for collection or
deposit in the ordinary course of business. The amount of any Guarantee and the
amount of Indebtedness resulting from such Guarantee shall be the maximum amount
that the guarantor may become obligated to pay in respect of the obligations
(whether or not such obligations are outstanding at the time of computation).

                                      -9-
<PAGE>   17

         1.73. "GUARANTOR" means each Borrower, each Subsidiary of the
respective Borrowers which subsequently becomes party to this Agreement as a
Guarantor.

         1.74. "HAZARDOUS MATERIAL" means any pollutant, toxic or hazardous
material or waste, including any "hazardous substance" or "pollutant" or
"contaminant" as defined in section 101(14) of CERCLA or any other Environmental
Law or regulated as toxic or hazardous under RCRA or any other Environmental
Law.

         1.75. "HEALTH BENEFIT LAWS" means all federal, state and local statutes
and regulations related to the licensure, certification, qualification or
authority to transact business relating to the provision of and/or payment for
health benefits, including without limitation health maintenance organization
laws, insurance laws, reinsurance and insolvency laws, preferred provider
organization laws, point-of-service laws, certificate of need laws, third party
administrator laws, ERISA, COBRA, provider credentialling laws, utilization
review laws, coordination of benefit requirements, hospital reimbursement laws,
Medicaid participation laws, insurance holding company laws, fraud and abuse
laws and patient referral laws.

         1.76. "INDEBTEDNESS" means all obligations, contingent or otherwise,
which in accordance with GAAP are required to be classified upon the balance
sheet of the Company (or other specified Person) as liabilities, but in any
event including (without duplication):

                  (a) borrowed money;

                  (b) indebtedness evidenced by notes, debentures or similar
         instruments;

                  (c) Capitalized Lease Obligations;

                  (d) deferred purchase price of assets (other than normal trade
         accounts payable in the ordinary course of business);

                  (e) mandatory redemption or dividend rights on capital stock
         (or other equity);

                  (f) unfunded pension liabilities;

                  (g) obligations that are immediately and directly due and
         payable out of the proceeds of or production from property;

                  (h) liabilities secured by any Lien existing on property owned
         or acquired by the Company (or such specified Person), whether or not
         the liability secured thereby shall have been assumed; and

                  (i) all Guarantees in respect of Indebtedness of others.

         1.77. "INDEMNIFIED PARTY" is defined in Section 10.2.

         1.78. "INITIAL CLOSING DATE" means the first date on which all the
conditions set forth in Section 5.1 and 5.4 have been satisfied.

                                      -10-
<PAGE>   18

         1.79. "INTEREST RATE PROTECTION AGREEMENT" means any interest rate
swap, interest rate cap, interest rate hedge or other contractual arrangement
that converts variable interest rates into fixed interest rates, fixed interest
rates into variable interest rates or other similar arrangements.

         1.80. "INTEREST EXPENSE" means, for any period, the aggregate amount of
interest, including commitment fees and payments in the nature of interest under
Capitalized Leases (whether such interest is reflected as an item of expense or
capitalized), paid or accrued by any Person.

         1.81. "INVESTMENT" means, with respect to any Borrower (or other
specified Person):

                  (a) any share of capital stock, partnership or other equity
        interest, evidence of Indebtedness or other security issued by any other
        Person;

                  (b) any loan, advance or extension of credit to, or
        contribution to the capital of, any other Person;

                  (c) any Guarantee of the Indebtedness of any other Person;

                  (d) any acquisition of all or any part of the business of any
        other Person or the assets comprising such business or part thereof;

                  (e) any commitment or option to make any Investment; and

                  (f) any other similar investment.

         The investments described in the foregoing clauses (a) through (f)
shall be included in the term "Investment" whether they are made or acquired by
purchase, exchange, issuance of stock or other securities, merger,
reorganization or any other method; PROVIDED, HOWEVER, that the term
"Investment" shall not include (i) trade and customer accounts receivable for
property leased, goods furnished or services rendered in the ordinary course of
business and payable in accordance with customary trade terms, (ii) advances and
prepayments to suppliers for property leased, goods furnished and services
rendered in the ordinary course of business, (iii) advances to employees, agents
or consultants in the ordinary course of business, including travel expenses,
drawing accounts, payroll and similar expenditures, (iv) stock or other
securities acquired in connection with the satisfaction or enforcement of
Indebtedness or claims due to the Company (or such specified Person) or as
security for any such Indebtedness or claim or (v) demand deposits in banks or
similar financial institutions.

         1.82. "LATE DELIVERY DATE" is defined in the definition of "APPLICABLE
MARGIN" in Section 1.9.

         1.83. "LATE PRICING RESET DATE" is defined in the definition of
"APPLICABLE MARGIN" in Section 1.9.

         1.84. "LEGAL REQUIREMENT" means any present or future requirement
imposed upon any of the Lenders or the Company and its Related Entities by any
law, statute, rule, regulation, directive, order, decree, guideline (or any
interpretation thereof by courts or of administrative bodies) of the United
States of America, or any jurisdiction in which any Eurodollar Office is located
or any state or political subdivision of any of the foregoing, or by any board,
governmental or administrative agency, central bank or monetary authority of the
United States of America, any jurisdiction in which any Eurodollar Office is
located, or any

                                      -11-
<PAGE>   19

political subdivision of any of the foregoing including, but not limited to, all
Health Benefit Laws, including but not limited to all Health Benefit Laws. Any
such requirement imposed on any of the Lenders which such Lender reasonably
believes has the force of law shall be deemed to be a Legal Requirement.

         1.85. "LENDER" means each of the Persons listed as lenders on the
signature page hereto, including the Agent in its capacity as a Lender and such
other Persons who may from time to time own a Percentage Interest in either of
the Loans.

         1.86. "LENDING OFFICER" means such individuals whom the Agent may
designate by notice to the Company from time to time as an officer who may
receive telephone requests for borrowings under Section 2.1.3.

         1.87. "LETTER OF CREDIT" is defined in Section 2.2.1.

         1.88. "LETTER OF CREDIT EXPOSURE" means, at any date, the sum of (a)
the aggregate face amount of all drafts that may then or thereafter be presented
by beneficiaries under all Letters of Credit then outstanding, PLUS (b) the
aggregate face amount of all drafts that the Letter of Credit Issuer has
previously accepted under Letters of Credit but has not paid.

         1.89. "LETTER OF CREDIT ISSUER" means, for any Letter of Credit, the
Agent or, in the event the Agent does not for any reason issue a requested
Letter of Credit, another Lender selected by the Borrower to issue such Letter
of Credit.

         1.90. "LIEN" means, with respect to the Company (or any other specified
Person):

                  (a) any lien, encumbrance, mortgage, pledge, charge or
         security interest of any kind upon any property or assets of the
         Company (or such specified Person), whether now owned or hereafter
         acquired, or upon the income or profits therefrom;

                  (b) the acquisition of, or the agreement to acquire, any
         property or asset upon conditional sale or subject to any other title
         retention agreement, device or arrangement (including a Capitalized
         Lease);

                  (c) the sale, assignment, pledge or transfer for security of
         any accounts, general intangibles or chattel paper of the Company (or
         such specified Person), with or without recourse;

                  (d) the transfer of any tangible property or assets for the
         purpose of subjecting such items to the payment of previously
         outstanding Indebtedness in priority to payment of the general
         creditors of the Company (or such specified Person); and

                  (e) the existence for a period of more than 120 consecutive
         days of any Indebtedness against the Company (or such specified Person)
         which if unpaid would by law or upon a Bankruptcy Default be given any
         priority over general creditors.

         1.91. "LOANS" means the Mortgage Loan and the Revolving Loan,
collectively.

         1.92. "LOAN ACCOUNTS" is defined in Section 2.1.4.

                                      -12-
<PAGE>   20

         1.93. "MARGIN STOCK" means "margin stock" within the meaning of
Regulations G, T, U or X of the Board of Governors of the Federal Reserve
System.

         1.94. "MATERIAL ADVERSE CHANGE" means, since any specified date or from
the circumstances existing immediately prior to the happening of any specified
event, a material adverse change in (a) the business, assets, financial
condition, income or prospects of the Company and its Related Entities, whether
as a result of (i) general economic conditions affecting the industry in which
the Company and its Related Entities are engaged, (ii) difficulties in obtaining
supplies and raw materials, (iii) fire, flood or other natural calamities, (iv)
environmental pollution, (v) regulatory changes, judicial decisions, war or
other governmental action or (vi) any other event or development, whether or not
related to those enumerated above or (b) the ability of the Obligors to perform
their obligations under the Credit Documents or (c) the rights and remedies of
the Agent and the Lenders under the Credit Documents.

         1.95. "MATERIAL AGREEMENTS" is defined in Section 7.2.2.

         1.96. "MATERIAL PLAN" means any Plan or Plans, collectively, as to
which (a) the excess of (i) the aggregate Accumulated Benefit Obligations under
such Plan or Plans over (ii) the aggregate fair market value of the assets of
such Plan or Plans allocable to such benefits, all determined as of the then
most recent valuation date or dates for such Plan or Plans, is greater than (b)
$500,000.

         1.97. "Maximum Amount of Revolving Credit" is defined in Section 2.1.2.

         1.98. "MORTGAGE" means the Mortgage and Security Agreement dated as of
September 30, 1993, as modified and in effect from time to time made by the
Company in favor of the Agent with respect to the headquarters buildings of the
Company located in Fort Lauderdale, Florida.

         1.99. "MORTGAGE LOAN" has the meaning provided in Section 2.3.1.

         1.100. "MORTGAGE NOTE" has the meaning provided in Section 2.3.2.

         1.101. "MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer
plan" as defined in section 4001(a)(3) of ERISA.

         1.102. "NET INCOME" means, for any period, the net income (or loss) of
the Company and its Related Entities, determined in accordance with GAAP;
PROVIDED, HOWEVER, that Net Income shall not include the net amount after taxes
of:

                  (a) the income (or loss) of any other Person accrued prior to
         the date such other Person becomes a Related Entity or is merged into
         or consolidated with such Person;

                  (b) all amounts included in computing such net income (or
         loss) in respect of the write-up of any asset after December 31, 1999;

                  (c) extraordinary and nonrecurring gains;

                  (d) the income of any Subsidiary to the extent the payment of
         such income in the form of a Distribution or repayment of Indebtedness
         to such Person is not permitted, whether on account of any Charter or
         Bylaw restriction, any agreement, instrument, deed or lease or any law,
         statute, judgment, decree or governmental order, rule or regulation
         applicable to such Subsidiary; and

                                      -13-
<PAGE>   21

                  (e) for the second fiscal quarter of the fiscal year 2000 of
         the Borrowers, a one-time non-cash charge in an amount not to exceed
         $7,000,000 resulting form an adjustment effective during such fiscal
         quarter to the reserve for doubtful accounts.

         1.103. "NONPERFORMING LENDER" is defined in Section 11.4.3.

         1.104. "OBLIGOR" means the Company, each other Borrower, each Guarantor
and each Person guaranteeing, providing collateral for or subordinating
obligations to, the Credit Obligations.

         1.105. "OPERATING CASH FLOW" means, for any period, the total of:

                (a) Consolidated EBITDA;

         MINUS  (b) Capital Expenditures;

         MINUS  (c) taxes based upon or measured by net income that are actually
                    paid in cash during such period.

         1.106. "OVERDUE REIMBURSEMENT RATE" means, at any date, the highest
Applicable Rate then in effect.

         1.107. "PAYMENT DATE" means the first Banking Day of each quarter,
commencing with the first such date after the Initial Closing Date.

         1.108. "PBGC" means the Pension Benefit Guaranty Corporation or any
successor entity.

         1.109. "PERCENTAGE INTEREST" is defined in Section 11.1.

         1.110. "PERFORMING LENDER" is defined in Section 11.4.3.

         1.111. "PERMITTED ACQUISITION" means an Investment by any Borrower
permitted under Section 6.9.4.

         1.112. "PERSON" means any present or future natural person or any
corporation, association, partnership, joint venture, limited liability, joint
stock or other company, business trust, trust, organization, business or
government or any governmental agency or political subdivision thereof.

         1.113. "PLAN" means, at any date, any pension benefit plan subject to
Title IV of ERISA maintained, or to which contributions have been made or are
required to be made, by any ERISA Group Person within six years prior to such
date.

         1.114. "PRICING RESET DATE" means the first day after annual or
quarterly financial statements have been furnished to the Lenders in accordance
with Sections 6.4.1 and 6.4.2 from time to time.

         1.115. "PRO FORMA EBITDA" shall mean, for any period, the pro forma
EBITDA of the Acquired Party, the value and calculation of which must be
approved by the Agent.

         1.116. "PURCHASE PRICE" means the amount of the consideration,
including, but not limited to, cash or Cash Equivalents, capital stock, assets,
debt, including contingent or other promissory notes, and any other form of
payment, for any Permitted Acquisition.

                                      -14-
<PAGE>   22

         1.117. "RCRA" means the federal Resource Conservation and Recovery Act,
42 U.S.C. ss. 690, ET SEQ.

         1.118. "REGISTER" is defined in Section 12.1.3.

         1.119. "RELATED ENTITIES" means all of the Related Entities listed on
Exhibit 7.1, as amended from time to time in accordance with Sections 6.4.1 and
6.4.2.

         1.120. "RELATED ENTITIES TOTAL LIABILITIES" means, at any date, all
Indebtedness of the Company and its Subsidiaries on a Consolidated basis.

         1.121. "REPLACEMENT LENDER" is defined in Section 12.3.

         1.122. "REQUIRED LENDERS" means, with respect to any approval, consent,
modification, waiver or other action to be taken by the Agent or the Lenders
under either Loan which require action by the Required Lenders, such Lenders as
own at least a two-thirds of the Percentage Interests of such Loan; PROVIDED,
HOWEVER, that with respect to any matters referred to in the proviso to Section
11.6, Required Lenders means such Lenders as own at least the respective
portions of the Percentage Interests of the relevant Loan required by Section
11.6.

         1.123. "REVOLVING LOAN" is defined in Section 2.1.1.

         1.124. "REVOLVING NOTES" is defined in Section 2.1.4.

         1.125. "SECURITIES ACT" means the federal Securities Act of 1933.

         1.126. "SECURITY AGREEMENT" is defined in Section 5.1.3.

         1.127. "SELLERS" means the Person or Persons selling or otherwise
transferring the capital stock, partnership or other equity interest or assets
of the Acquired Party to a Borrower pursuant to a Permitted Acquisition.

         1.128. "SUBSIDIARY" means any Person of which the Company (or other
specified Person) shall at the time, directly or indirectly through one or more
of its Subsidiaries, (a) own at least 50% of the outstanding capital stock (or
other shares of beneficial interest) entitled to vote generally, (b) hold at
least 50% of the partnership, joint venture or similar interests or (c) be a
general partner or joint venturer.

         1.129. "TAX" means any present or future tax, levy, duty, impost,
deduction, withholding or other charges of whatever nature at any time required
by any Legal Requirement (a) to be paid by any Lender or (b) to be withheld or
deducted from any payment otherwise required hereby to be made to any Lender, in
each case on or with respect to its obligations hereunder, the Loans, any
payment in respect of the Credit Obligations or any Funding Liability not
included in the foregoing; PROVIDED, HOWEVER, that the term "Tax" shall not
include taxes imposed upon or measured by the net income of such Lender (other
than withholding taxes) or franchise taxes.

         1.130. "TOTAL LIABILITIES" means, at any date, all Indebtedness of the
Company and its Related Entities.

                                      -15-
<PAGE>   23

         1.131. "UCC" means the Uniform Commercial Code as in effect in
Massachusetts on the date hereof; PROVIDED, HOWEVER, that with respect to the
perfection of the Agent's Lien in the Credit Security and the effect of
nonperfection thereof, the term "UCC" means the Uniform Commercial Code as in
effect in any jurisdiction the laws of which are made applicable by Section
9-103 of the Uniform Commercial Code as in effect in Massachusetts.

2. THE CREDITS.

         2.1. REVOLVING CREDIT.

                  2.1.1. REVOLVING LOAN. Subject to all the terms and conditions
         of this Agreement and so long as no Default then exists, from time to
         time on and after the Initial Closing Date and prior to the Final
         Maturity Date the Lenders will, severally in accordance with their
         respective Percentage Interests, make loans to any Borrower in such
         amounts as may be requested by such Borrower in accordance with Section
         2.1.3. The sum of the aggregate principal amount of loans made under
         this Section 2.1.1 at any one time outstanding shall in no event exceed
         the Maximum Amount of Revolving Credit. In no event will the principal
         amount of loans at any one time outstanding made by any Lender pursuant
         to this Section 2.1 exceed such Lender's Commitment. The aggregate
         principal amount of the loans made pursuant to this Section 2.1 at
         anyone time outstanding is referred to as the "REVOLVING LOAN".

                  2.1.2. MAXIMUM AMOUNT OF REVOLVING CREDIT. The term "MAXIMUM
         AMOUNT OF REVOLVING CREDIT" means, on any date, the lesser of (a)
         $75,000,000 or (b) the amount (in an integral multiple of $1,000,000)
         to which the then applicable amount shall have been irrevocably reduced
         from time to time by notice from the Company to the Agent.

                  2.1.3. BORROWING REQUESTS. Any Borrower may from time to time
         request a loan under Section 2.1.1 by providing to the Agent a notice
         (which may be given by a telephone call received by a Lending Officer
         if promptly confirmed in writing). Such notice must be not later than
         noon (Boston time) on the requested Closing Date, (which shall be the
         third Banking Day prior to the requested Closing Date for such loan if
         any portion of such loan will be subject to a Eurodollar Pricing Option
         on the requested Closing Date). If such notice requested that a loan,
         or any portion thereof, be made subject to a Eurodollar Pricing Option,
         and the Agent shall have notified the Borrower pursuant to Section
         3.2.2 that such election did not become effective, the notice shall be
         deemed to have been made for a loan at the Base Rate. The notice must
         specify (a) the amount of the requested loan (which shall be not less
         than $100,000 and an integral multiple of $10,000), (b) the requested
         Closing Date therefor (which shall be a Banking Day) and (c) the
         portion of the requested loan that is to be used for purposes other
         than Permitted Acquisitions. Upon receipt of such notice, the Agent
         will promptly inform each other Lender (by telephone or otherwise).
         Each such loan will be made at the Boston Office by depositing the
         amount thereof to the general account of such Borrower with the Agent.
         In connection with each such loan, such Borrower shall furnish to the
         Agent a certificate in substantially the form of Exhibit 5.4.1.

                 Notwithstanding anything contained in this Agreement, (i) the
         Agent may, in its sole discretion, make Revolving Loans to any Borrower
         under Section 2.1 at any time and in any amount and may apply any such
         Revolving Loan to cover the Credit Obligations of such Borrower then
         due and (ii) subject to all the terms and conditions of this Agreement
         and so long as no Default exists, if any payment of interest due under
         this Agreement in respect of the Revolving Loan is not paid when

                                      -16-
<PAGE>   24

         due, the Agent will make Revolving Loans to the Borrower under Section
         2.1 on the third Banking Day after such payment of interest became due
         in the amount of the interest then due and will apply any such
         Revolving Loan to cover the interest then due (each Revolving Loan made
         under clauses (i) or (ii) of this paragraph being a "CREDIT OBLIGATION
         ADVANCE").

                  2.1.4. LOAN ACCOUNTS; REVOLVING NOTES. The Agent will
         establish on its books separate loan accounts for each Borrower
         (collectively the "LOAN ACCOUNTS") each of which the Agent shall
         administer as follows: (a) the Agent shall add to each Loan Account,
         and each Loan Account shall evidence, the principal amount of all loans
         from time to time made by the Lenders, in accordance with Section 11,
         to such Borrower pursuant to Section 2.1.1 and (b) the Agent shall
         reduce each Borrower's Loan Account by the amount of all payments made
         on account of the Indebtedness evidenced by the Loan Account of such
         Borrower. The Revolving Loan shall be deemed owed to each Lender
         severally in accordance with such Lender's Percentage Interest therein,
         and all payments credited to the Loan Accounts shall be for the account
         of each Lender in accordance with its Percentage Interest in the
         Revolving Loan. Each Borrower's obligations to pay each Lender's
         Percentage Interest in the Revolving Loan shall be evidenced by the
         notes of such Borrower attached hereto as Exhibit 2.1.4 (the "REVOLVING
         NOTES"), payable to each Lender in maximum principal amount equal to
         such Lender's Percentage Interest in the Revolving Loan. Each Lender
         shall keep a record of the date and amount of (i) each loan made by it
         to each Borrower pursuant to Section 2.1 and (ii) each payment of
         principal made by such Borrower pursuant to Section 4. Prior to the
         transfer of a Revolving Note, the relevant Lender shall endorse on a
         schedule thereto appropriate notations evidencing such dates and
         amounts; PROVIDED, HOWEVER, that the failure of the Lender to make any
         such recordation or endorsement shall not affect the obligations or
         such Borrower under this Agreement, the Revolving Note or any other
         Credit Document.

         2.2. LETTERS OF CREDIT.

                  2.2.1. ISSUANCE OF LETTERS OF CREDIT. Subject to all the terms
         and conditions of this Agreement and so long as no Default exists, from
         time to time on and after the Initial Closing Date and prior to the
         date five Banking Days preceding the Final Maturity Date, the Letter of
         Credit Issuer will issue for the account of the Borrower one or more
         irrevocable documentary or standby letters of credit (the "LETTERS OF
         CREDIT"). The sum of Letter of Credit Exposure PLUS the Revolving Loan
         shall in no event exceed the Maximum Amount of Revolving Credit. Letter
         of Credit Exposure shall in no event exceed $3,500,000.

                  2.2.2. REQUESTS FOR LETTERS OF CREDIT. Each Borrower may from
         time to time request a Letter of Credit to be issued by providing to
         the Letter of Credit Issuer (and the Agent if the Letter of Credit
         Issuer is not the Agent) a notice which is actually received by the
         Agent not less than five Banking Days (for standby Letters of Credit)
         and one Banking Day (for documentary Letters of Credit) prior to the
         requested Closing Date for such Letter of Credit specifying (a) the
         amount of the requested Letter of Credit, (b) the beneficiary thereof,
         (c) the requested Closing Date and (d) a summary of the principal terms
         of the text for such Letter of Credit. Each Letter of Credit will be
         issued by forwarding it to the Borrower or to such other Person as
         directed in writing by the Borrower. In connection with the issuance of
         any Letter of Credit, the Borrower shall furnish to the Letter of
         Credit Issuer (and the Agent if the Letter of Credit Issuer is not the
         Agent) a certificate in substantially the form of Exhibit 5.4.1 and any
         customary application forms required by the Letter of Credit Issuer. In
         the event of any inconsistency between such application forms and this
         Agreement, this Agreement shall govern.

                                      -17-
<PAGE>   25

                  2.2.3. FORM AND EXPIRATION OF LETTERS OF CREDIT. Each Letter
         of Credit issued under this Section 2.2 and each draft accepted or paid
         under such a Letter of Credit shall be issued, accepted or paid, as the
         case may be, by the Letter of Credit Issuer at its principal office. No
         Letter of Credit shall provide for the payment of drafts drawn
         thereunder, and no draft shall be payable, at a date which is later
         than the earlier of (a) the date 12 months after the date of issuance
         (which expiration date may be extended at the option of the Letter of
         Credit Issuer for additional 12-month periods ending prior to the date
         referred to in clause (b) below) or (b) five Banking Days prior to the
         Final Maturity Date. Each Letter of Credit and each draft accepted
         under a Letter of Credit shall be in such form and minimum amount, and
         shall contain such terms, as the Letter of Credit Issuer and the
         Borrower may agree upon at the time such Letter of Credit is issued.

                  2.2.4. LENDERS' PARTICIPATION IN LETTERS OF CREDIT. Upon the
         issuance of any Letter of Credit, a participation therein, in an amount
         equal to each Lender's Percentage Interest in the Revolving Loan, shall
         automatically be deemed granted by the Letter of Credit Issuer to each
         such Lender on the date of such issuance and such Lenders shall
         automatically be obligated, as set forth in Section 10.3, to reimburse
         the Letter of Credit Issuer to the extent of their respective
         Percentage Interests in the Revolving Loan for all obligations incurred
         by the Letter of Credit Issuer to third parties in respect of such
         Letter of Credit not reimbursed by the Borrower. The Letter of Credit
         Issuer will send to each Lender (and the Agent if the Letter of Credit
         Issuer is not the Agent) a confirmation regarding the participations in
         Letters of Credit outstanding during such month.

                  2.2.5. REIMBURSEMENT OF PAYMENT. At such time as a Letter of
         Credit Issuer makes any payment on a draft presented or accepted under
         a Letter of Credit, the amount of such payment shall be considered a
         loan under Section 2.1.1 (regardless of whether the conditions set
         forth in Section 5.2 are satisfied) and part of the Revolving Loan as
         if the Borrower had paid in full the amount required with respect to
         the Letter of Credit by borrowing such amount under Section 2.1.1,
         except as provided below. In the event such amount would cause the
         Revolving Loan to exceed the Maximum Amount of Revolving Credit or in
         the event the Agent has previously provided written notice to the
         Borrower that Letter of Credit payments will no longer be considered
         loans under Section 2.1.1, the Borrower will on demand pay to the Agent
         in immediately available funds the amount of such payment.

                  2.2.6. UNIFORM CUSTOMS AND PRACTICE. The Uniform Customs and
         Practice for Documentary Credits adopted by a Congress of the
         International Chamber of Commerce, and any subsequent revisions thereof
         approved by a Congress of the International Chamber of Commerce and
         adhered to by the Letter of Credit Issuer (the "UNIFORM CUSTOMS AND
         PRACTICE"), shall be binding on the Borrower and the Letter of Credit
         Issuer except to the extent otherwise provided herein, in any Letter of
         Credit or in any other Credit Document. Anything in the Uniform Customs
         and Practice to the contrary notwithstanding:

                  (a) With respect to each Letter of Credit, neither the Letter
         of Credit Issuer nor its correspondents shall be responsible for or
         shall have any duty to ascertain (unless the Letter of Credit Issuer or
         such correspondent is grossly negligent or willful in failing so to
         ascertain):

                  (b) Except insofar as a particular Letter of Credit contains
         express, contrary instructions, the Letter of Credit Issuer may honor
         as complying with the terms of any Letter of Credit and with this
         Agreement any drafts or other documents otherwise in order signed or
         issued by an administrator, executor, conservator, trustee in
         bankruptcy, debtor in possession, assignee for benefit

                                      -18-
<PAGE>   26

         of creditors, liquidator, receiver or other legal representative of the
         party authorized under such Letter of Credit to draw or issue such
         drafts or other documents.

                  (c) The occurrence of any of the events referred to in the
         Uniform Customs and Practice or in the preceding clauses of this
         Section 2.2.6 shall not affect or prevent the vesting of any of the
         Letter of Credit Issuer's rights or powers hereunder or the Borrower's
         obligation to make reimbursement of amounts paid under any Letter of
         Credit or any draft accepted thereunder.

                  (d) In the event of any conflict between the provisions of
         this Agreement and the Uniform Customs and Practice, the provisions of
         this Agreement shall govern.

                  2.2.7. SUBROGATION. Upon any payment by a Letter of Credit
         Issuer under any Letter of Credit and until the reimbursement of such
         Letter of Credit Issuer by the Borrower with respect to such payment,
         the Letter of Credit Issuer shall be entitled to be subrogated to, and
         to acquire and retain, the rights which the Person to whom such payment
         is made may have against the Borrower, all for the benefit of the
         Lenders. The Borrower will take such action as the Letter of Credit
         Issuer may reasonably request, including requiring the beneficiary of
         any Letter of Credit to execute such documents as the Letter of Credit
         Issuer may reasonably request, to assure and confirm to the Letter of
         Credit Issuer such subrogation and such rights, including the rights,
         if any, of the beneficiary to whom such payment is made in accounts
         receivable, inventory and other properties and assets of any Obligor.

                  2.2.8. MODIFICATION, CONSENT, ETC. If the Borrower requests or
         consents in writing to any modification or extension of any Letter of
         Credit, or waives any failure of any draft, certificate or other
         document to comply with the terms of such Letter of Credit, the Letter
         of Credit Issuer shall be entitled to rely on such request, consent or
         waiver. This Agreement shall be binding upon the Borrower with respect
         to such Letter of Credit as so modified or extended, and with respect
         to any action taken or omitted by such Letter of Credit Issuer pursuant
         to any such request, consent or waiver.

         2.3. THE MORTGAGE CREDIT.

                  2.3.1. MORTGAGE LOAN. The Agent has made a term loan to the
         Company, in an aggregate principal amount equal to $3,000,000 as of
         September 30, 1993 The aggregate principal amount of the loan made
         pursuant to this Section 2.3.1 at any one time outstanding is referred
         to as the "MORTGAGE LOAN."

                  2.3.2. MORTGAGE NOTE. The Mortgage Loan is evidenced by a note
         attached hereto as Exhibit 2.3.2 (the "MORTGAGE NOTE") payable by the
         Company to the Agent. The Agent keeps a record of the date and amount
         of (i) the term loan made by the Agent to the Company pursuant to
         Section 2.2.1 and (ii) each payment of principal made by the Company
         pursuant to Section 4. Prior to the transfer of the Mortgage Note, the
         Agent shall endorse on a schedule thereto appropriate notations
         evidencing such dates and amounts; PROVIDED, HOWEVER, that the failure
         of the Agent to make any such recordation or endorsement shall not
         affect the obligations of the Company under this Agreement, the
         Mortgage Note or any other Credit Document.

                                      -19-
<PAGE>   27

         2.4. APPLICATION OF PROCEEDS.

                  2.4.1. THE LOANS. Subject to Section 2.4.2, the Borrowers will
         apply the proceeds of the Loans for lawful corporate purposes,
         including (a) to fund Permitted Acquisitions and (b) for working
         capital.

                  2.4.2. SPECIFICALLY PROHIBITED APPLICATIONS. The Borrowers
         will not, directly or indirectly, apply any part of the proceeds of any
         extension of credit made pursuant to the Credit Documents to purchase
         or to carry Margin Stock or to any transaction prohibited by Legal
         Requirements applicable to the Lenders or by the Credit Documents.

                  2.4.3. LETTERS OF CREDIT. Letters of Credit shall be issued
         only for such lawful corporate purposes as the Borrower has requested
         in writing and to which the Letter of Credit Issuer agrees.

         2.5. NATURE OF OBLIGATIONS OF LENDERS TO MAKE EXTENSIONS OF CREDIT. The
Lenders' obligations to extend credit under this Agreement are several and are
not joint or joint and several. If on any Closing Date any Lender shall fail to
perform its obligations under this Agreement, the aggregate amount of
Commitments to make the extensions of credit under this Agreement shall be
reduced by the amount of unborrowed Commitment of the Lender so failing to
perform and the Percentage Interests of the relevant Loan shall be appropriately
adjusted. Lenders that have not failed to perform their obligations to make the
extensions of credit contemplated by Section 2 may, if any such Lender so
desires, assume, in such proportions as such Lenders may agree, the obligations
of any Lender who has so failed and the Percentage Interests shall be
appropriately adjusted. The provisions of this Section 2.5 shall not affect the
rights of the Borrowers against any Lender failing to perform its obligations
hereunder.

         2.6. OBLIGATIONS JOINT AND SEVERAL. Each Borrower shall be jointly and
severally liable with all other Borrowers for all Credit Obligations.

3. INTEREST; EURODOLLAR PRICING OPTIONS; FEES.

         3.1. INTEREST. The Loans shall accrue and bear interest at a rate per
annum which shall at all times equal the Applicable Rate. Prior to any stated or
accelerated maturity of the Loans, on each Payment Date each Borrower will pay
the accrued and unpaid interest on the portion of the Revolving Loan evidenced
by its Loan Account, which portions were not subject to a Eurodollar Pricing
Option, and the Company will pay the accrued and unpaid interest on the portion
of the Mortgage Loan. On the last day of each Eurodollar Interest Period or on
any earlier termination of any Eurodollar Pricing Option, each Borrower will pay
the accrued and unpaid interest on the portion of the Revolving Loan evidenced
by its Loan Account which expired or terminated on such date. In the case of any
Eurodollar Interest Period longer than three months, each Borrower will also pay
the accrued and unpaid interest on the portion of the Revolving Loan evidenced
by its Loan Account, subject to the Eurodollar Pricing Option having such
Eurodollar Interest Period at three-month intervals, the first such payment to
be made on the last Banking Day of the three-month period which begins on the
first day of such Eurodollar Interest Period. On the stated or any accelerated
maturity of the Loans, each Borrower will pay all accrued and unpaid interest on
the portion of the Revolving Loan evidenced by its Loan Account, including any
accrued and unpaid interest on any portion of such Loans which is subject to a
Eurodollar Pricing Option, and the Company will pay the accrued and unpaid
interest on the portion of the Mortgage Loan. Upon the occurrence and during the
continuance of an Event of Default, the Lenders may require accrued interest to
be payable on demand or at regular intervals more frequent than each Payment
Date. All payments of interest hereunder shall be made to the Agent for the
account of each Lender in accordance with such Lender's Percentage Interest in
each Loan.

                                      -20-
<PAGE>   28

         3.2. EURODOLLAR PRICING OPTIONS.

                  3.2.1. ELECTION OF EURODOLLAR PRICING OPTIONS. Subject to all
         of the terms and conditions hereof and so long as no Default exists,
         any Borrower may from time to time, by irrevocable notice to the Agent
         actually received not less than three Banking Days prior to the
         commencement of the Eurodollar Interest Period selected in such notice,
         elect to have such portion of the Revolving Loans as such Borrower may
         specify in such notice accrue and bear interest during the Eurodollar
         Interest Period so selected at the Applicable Rate computed on the
         basis of the Eurodollar Rate. No such election shall become effective:

                  (a) if, prior to the commencement of any such Eurodollar
         Interest Period, the Agent determines that (i) the electing or granting
         of the Eurodollar Pricing Option in question would violate a Legal
         Requirement, (ii) Eurodollar deposits in an amount comparable to the
         principal amount of the Revolving Loan as to which such Eurodollar
         Pricing Option has been elected and which have a term corresponding to
         the proposed Eurodollar Interest Period are not readily available in
         the inter-bank Eurodollar market, or (iii) by reason of circumstances
         affecting the inter-bank Eurodollar market, adequate and reasonable
         methods do not exist for ascertaining the interest rate applicable to
         such deposits for the proposed Eurodollar Interest Period; or

                  (b) if any Lender shall have advised the Agent by telephone or
         otherwise at or prior to noon (Boston time) on the second Banking Day
         prior to the commencement of such proposed Eurodollar Interest Period
         (and shall have subsequently confirmed in writing) that, after
         reasonable efforts to determine the availability of such Eurodollar
         deposits, such Lender reasonably anticipates that Eurodollar deposits
         in an amount equal to the Percentage Interest of such Lender in the
         portion of the Revolving Loan as to which such Eurodollar Pricing
         Option has been elected and which have a term corresponding to the
         Eurodollar Interest Period in question will not be offered in the
         Eurodollar market to such Lender at a rate of interest that does not
         exceed the anticipated Eurodollar Basic Rate.

                  3.2.2. NOTICE TO LENDERS AND THE BORROWERS. The Agent will
         promptly inform each Lender (by telephone or otherwise) of each notice
         received by it from a Borrower pursuant to Section 3.2.1 and of the
         Eurodollar Interest Period specified in such notice. Upon determination
         by the Agent of the Eurodollar Rate for such Eurodollar Interest Period
         or in the event such election shall not become effective, the Agent
         will promptly notify such Borrower and each Lender (by telephone or
         otherwise) of the Eurodollar Rate so determined or why such election
         did not become effective, as the case may be.

                  3.2.3. SELECTION OF EURODOLLAR INTEREST PERIODS. Eurodollar
         Interest Periods shall be selected so that:

                  (a) the minimum portion of the Revolving Loan subject to any
         Eurodollar Pricing Option shall be $500,000 and an integral multiple of
         $100,000;

                  (b) no more than 6 Eurodollar Pricing Options shall be
         outstanding at any one time; and

                  (c) no Eurodollar Interest Period with respect to any part of
         the Revolving Loan subject to a Eurodollar Pricing Option shall expire
         later than the relevant Final Maturity Date.

                                      -21-
<PAGE>   29

                  3.2.4. ADDITIONAL INTEREST. If any portion of the Revolving
         Loan subject to a Eurodollar Pricing Option is repaid, or any
         Eurodollar Pricing Option is terminated for any reason (including
         acceleration of maturity), on a date which is prior to the last Banking
         Day of the Eurodollar Interest Period applicable to such Eurodollar
         Pricing Option, the Borrowers will pay to the Agent for the account of
         each Lender in accordance with such Lender's Percentage Interest, in
         addition to any amounts of interest otherwise payable hereunder, an
         amount equal to the present value (calculated in accordance with this
         Section 3.2.4) of interest for the unexpired portion of such Eurodollar
         Interest Period on the portion of the Revolving Loans so repaid, or as
         to which a Eurodollar Pricing Option was so terminated, at a per annum
         rate equal to the excess, if any, of (a) the rate applicable to such
         Eurodollar Pricing Option MINUS (b) the lowest rate of interest
         obtainable by the Agent upon the purchase of debt securities
         customarily issued by the Treasury of the United States of America
         which have a maturity date approximating the last Banking Day of such
         Eurodollar Interest Period. The present value of such additional
         interest shall be calculated by discounting the amount of such interest
         for each day in the unexpired portion of such Eurodollar Interest
         Period from such day to the date of such repayment or termination at a
         per annum interest rate equal to the interest rate determined pursuant
         to clause (b) of the preceding sentence, and by adding all such amounts
         for all such days during such period. The determination by the Agent of
         such amount of interest shall, in the absence of manifest error, be
         conclusive. For purposes of this Section 3.2.4, if any portion of the
         Revolving Loan which was to have been subject to a Eurodollar Pricing
         Option is not outstanding on the first day of the Eurodollar Interest
         Period applicable to such Eurodollar Pricing Option other than for
         reasons described in Section 3.2.1, the Borrowers shall be deemed to
         have terminated such Eurodollar Pricing Option.

                  3.2.5. VIOLATION OF LEGAL REQUIREMENTS. If any Legal
         Requirement shall prevent any Lender from funding or maintaining
         through the purchase of deposits in the inter-bank Eurodollar market
         any portion of the Revolving Loans subject to a Eurodollar Pricing
         Option or otherwise from giving effect to such Lender's obligations as
         contemplated by Section 3.2, (a) the Agent may by notice to the
         Borrowers terminate all of the affected Eurodollar Pricing Options, (b)
         the portion of the Revolving Loans subject to such terminated
         Eurodollar Pricing Options shall immediately bear interest thereafter
         at the Applicable Rate computed on the basis of the Base Rate and (c)
         the Borrowers shall make any payment required by Section 3.2.4.

                  3.2.6. FUNDING PROCEDURE. The Lenders may fund any portion of
         the Revolving Loans subject to a Eurodollar Pricing Option out of any
         funds available to the Lenders. Regardless of the source of the funds
         actually used by any of the Lenders to fund any portion of the
         Revolving Loans subject to a Eurodollar Pricing Option, however, all
         amounts payable hereunder, including the interest rate applicable to
         any such portion of the Revolving Loans and the amounts payable under
         Sections 3.2.4, 3.5, 3.6, 3.7 and 3.8, shall be computed as if each
         Lender had actually funded such Lender's Percentage Interest in such
         portion of the Revolving Loans through the purchase of deposits in such
         amount of the type by which the Eurodollar Basic Rate was determined
         with a maturity the same as the applicable Eurodollar Interest Period
         relating thereto and through the transfer of such deposits from an
         office of the Lender having the same location as the applicable
         Eurodollar Office to one of such Lender's offices in the United States
         of America.

         3.3. COMMITMENT FEES.

                  3.3.1. FEE BASE. In consideration of the Lenders' commitments
         to make the extensions of credit provided for in Section 2.1, while
         such commitments are outstanding, the

                                      -22-
<PAGE>   30

         Borrower will pay to the Agent for the account of the Lenders in
         accordance with the Lenders' respective Percentage Interests in the
         Revolving Loan, on each Payment Date, an amount equal to interest
         computed at the rate per annum determined pursuant to Section 3.3.2 on
         the amount by which (a) the average daily Maximum Amount of Revolving
         Credit during the three-month period or portion thereof ending on such
         Payment Date exceeded (b) the sum of (i) the average daily Revolving
         Loan during such period or portion thereof PLUS (ii) the daily Letter
         of Credit Exposure during such period or portion thereof; PROVIDED,
         HOWEVER, that the first such payment shall be for the period beginning
         on the Initial Closing Date and ending on the first Payment Date.

                  3.3.2. FEE RATE. On any given Payment Date, the rate applied
         in computing the fee payable pursuant to this Section 3.3 shall be the
         rate for Commitment Fees indicated in the definition of "APPLICABLE
         MARGIN" in Section 1.9 hereof opposite the ratio of Consolidated
         Financing Debt to Consolidated EBITDA in effect on such Payment Date
         for purposes of such definition.

         3.4. LETTER OF CREDIT FEES. The Borrower will pay to the Agent for the
account of each of the Lenders, in accordance with the Lenders' respective
Percentage Interests, on each Payment Date, a Letter of Credit fee equal to
interest at a rate per annum equal to the Applicable Margin indicated for the
Eurodollar Rate on the average daily Letter of Credit Exposure during the three
month period or portion thereof ending on such Payment Date. The Borrower will
pay to the Letter of Credit Issuer (a) customary service charges and expenses
for its services in connection with the Letters of Credit at the times and in
the amounts from time to time in effect in accordance with its general rate
structure, PLUS (b) on each Payment Date a fronting fee equal to interest at a
rate per annum equal to 0.125% on the aggregate face amount of each Letter of
Credit issued by such Letter of Credit Issuer during the three month period or
portion thereof ending on such Payment Date.

         3.5. RESERVE REQUIREMENTS, ETC. If any Legal Requirement shall (a)
impose, modify, increase or deem applicable any insurance assessment, reserve,
special deposit or similar requirement against any Funding Liability, (b)
impose, modify, increase or deem applicable any other requirement or condition
with respect to any Funding Liability, or (c) change the basis of taxation of
Funding Liabilities (other than changes in the rate of taxes measured by the
overall net income of such Lender) and the effect of any of the foregoing shall
be to increase the cost to any Lender of issuing, making, funding or maintaining
its respective Percentage Interest in any portion of the Revolving Loans subject
to a Eurodollar Pricing Option, to reduce the amounts received or receivable by
such Lender under this Agreement or to require such Lender to make any payment
or forego any amounts otherwise payable to such Lender under this Agreement,
then, the Lender shall, promptly after it has made such determination, give
notice thereof to the Company. Promptly after the receipt by the Company of any
such notice, the Company and the Lender shall attempt to negotiate in good faith
an adjustment to the amount payable by the Borrowers to the Lender under this
Section 3.4, which amount shall be sufficient to compensate the Lender for such
increased cost or reduced return. If the Company and the Lender are unable to
agree to such adjustment within thirty days of the date upon which the Company
receives such notice, then the Borrowers will, on demand by the Lender, pay to
the Lender such additional amount as shall be sufficient, in the Lender's
reasonable determination, to compensate the Lender for such increased cost or
such reduced return, together with interest at the Overdue Reimbursement Rate
from the 30th day after receipt of such certificate until payment in full
thereof; PROVIDED, HOWEVER, that the foregoing provisions shall not apply to any
Tax or reserves which are included in computing the Eurodollar Reserve Rate. The
determination by such Lender of the amount of such costs shall, in the absence
of manifest error, be conclusive.

                                      -23-
<PAGE>   31

         3.6. TAXES. All payments of the Credit Obligations shall be made
without set-off or counterclaim and free and clear of any deductions, including
deductions for Taxes, unless the Borrowers are required by law to make such
deductions. If (a) any Lender shall be subject to any Tax with respect to any
payment of the Credit Obligations or its obligations hereunder or (b) any
Borrower shall be required to withhold or deduct any Tax on any payment on the
Credit Obligations, then, the Lender shall, promptly give notice of its claim
for compensation under this Section 3.6 to the Company. Promptly after the
receipt by the Company of any such notice, the Company and the Lender shall
attempt to negotiate in good faith an adjustment to the amount payable by the
Borrowers to the Lender under this Section 3.6, which amount shall be sufficient
to compensate the Lender for the amount of the Tax so imposed or the full amount
of all payments which would have been received on the Credit Obligations in the
absence of such Tax. If the Company and the Lender are unable to agree to such
adjustment within thirty days of the date upon which the Company receives such
notice, then the Borrowers will, on demand by the Lender, pay to the Lender such
additional amount as shall be sufficient, in the Lender's reasonable
determination, to enable such Lender to receive the amount of Tax so imposed on
the Lender's obligations hereunder or the full amount of all payments which it
would have received on the Credit Obligations (including amounts required to be
paid under Sections 3.5, 3.7, 3.8 and this Section 3.6) in the absence of such
Tax, as the case may be, together with interest at the Overdue Reimbursement
Rate on such amount from the 30th day after receipt of such certificate until
payment in full thereof. Whenever Taxes must be withheld by any Borrower with
respect to any payments of the Credit Obligations, the Borrowers shall promptly
furnish to the Agent for the account of the applicable Lender official receipts
(to the extent that the relevant governmental authority delivers such receipts)
evidencing payment of any such Taxes so withheld. If the Borrowers fail to pay
any such Taxes when due or fail to remit to the Agent for the account of the
applicable Lender the required receipts evidencing payment of any such Taxes so
withheld or deducted, the Borrowers shall indemnify the affected Lender for any
incremental Taxes and interest or penalties that may become payable by such
Lender as a result of any such failure. The determination by such Lender of the
amount of such Tax and the basis therefor shall, in the absence of manifest
error, be conclusive.

         3.7. CAPITAL ADEQUACY. If any Lender shall determine that compliance by
such Lender with any Legal Requirement regarding capital adequacy of banks or
bank holding companies has or would have the effect of reducing the rate of
return on the capital of such Lender and its Affiliates as a consequence of such
Lender's commitment to make the extensions of credit contemplated hereby, or
such Lender's maintenance of the extensions of credit contemplated hereby, to a
level below that which such Lender could have achieved but for such compliance
(taking into consideration the policies of such Lender and its Affiliates with
respect to capital adequacy immediately before such compliance and assuming that
the capital of such Lender and its Affiliates was fully utilized prior to such
compliance) by an amount deemed by such Lender to be material, then, the Lender
shall, promptly after it has made such determination, give notice thereof to the
Company. Promptly after the receipt by the Company of any such notice, the
Company and the Lender shall attempt to negotiate in good faith an adjustment to
the amount payable by the Borrowers to the Lender under this Section 3.6, which
amount shall be sufficient to compensate the Lender for such reduced return. If
the Company and the Lender are unable to agree to such adjustment within thirty
days of the date upon which the Company receives such notice, then the Borrowers
will, on demand by the Lender, pay to the Lender such additional amount as shall
be sufficient, in the Lender's reasonable determination, to compensate the
Lender for such reduced return, together with interest at the Overdue
Reimbursement Rate from the 30th day until payment in full thereof. The
determination by such Lender of the amount to be paid to it and the basis for
computation thereof shall, in the absence of manifest error, be conclusive. In
determining such amount, such Lender may use any reasonable averaging,
allocation and attribution methods.

                                      -24-
<PAGE>   32

         3.8. REGULATORY CHANGES. If any Lender shall determine that (a) any
change in any Legal Requirement (including any new Legal Requirement) after the
date hereof shall directly or indirectly (i) reduce the amount of any sum
received or receivable by such Lender with respect to the Revolving Loan or the
Letters of Credit or the return to be earned by such Lender on the Revolving
Loan or the Letters of Credit, (ii) impose a cost on such Lender or any
Affiliate of such Lender that is attributable to the making or maintaining of,
or such Lender's commitment to make, its portion of the Revolving Loan or the
Letters of Credit, or (iii) require such Lender or any Affiliate of such Lender
to make any payment on, or calculated by reference to, the gross amount of any
amount received by such Lender under any Credit Document, and (b) such
reduction, increased cost or payment shall not be fully compensated for by an
adjustment in the Applicable Rate or the Letter of Credit fees, then, the Lender
shall, promptly after it has made such determination, give notice thereof to the
Company. Promptly after the receipt by the Company of any such notice, the
Company and the Lender shall attempt to negotiate in good faith an adjustment to
the amount payable by the Borrowers to the Lender under this Section 3.8, which
amount, together with any adjustment in the Applicable Rate, shall be sufficient
to fully compensate the Lender for such reduction, increased cost or payment
taking into account any compensation for such reduction, increased cost or
payment received by the Lender pursuant to the provisions of Section 3.5, 3.6 or
3.7 hereof. If the Company and the Lender are unable to agree to such adjustment
within thirty days of the date upon which the Company receives such notice, then
the Borrowers will, on demand by the Lender, pay to the Lender such additional
amount, together with any adjustment in the Applicable Rate, as shall be
sufficient to fully compensate the Lender for such reduction, increased cost or
payment, together with interest on such amount from the 30th day after receipt
of such certificate until payment in full thereof at the Overdue Reimbursement
Rate. The determination by such Lender of the amount to be paid to it and the
basis for computation thereof hereunder shall, in the absence of manifest error,
be conclusive. In determining such amount, such Lender may use any reasonable
averaging and attribution methods.

         3.9. COMPUTATIONS OF INTEREST AND FEES. For purposes of this Agreement,
interest and commitment fees, Letter of Credit fees (and any other amount
expressed as interest or such fees) shall be computed on the basis of a 360-day
year for actual days elapsed. If any payment required by this Agreement becomes
due on any day that is not a Banking Day, such payment shall, except as
otherwise provided in the Eurodollar Interest Period, be made on the next
succeeding Banking Day. If the due date for any payment of principal is extended
as a result of the immediately preceding sentence, interest shall be payable for
the time during which payment is extended at the Applicable Rate.

4. PAYMENT.

         4.1. PAYMENT OF REVOLVING LOAN.

                  4.1.1. PAYMENT AT MATURITY. On the stated or any accelerated
         maturity of the Revolving Note, each Borrower will pay to the Agent for
         the account of the Lenders as evidenced by its Loan Account the amount
         of the Revolving Loan, together with all accrued and unpaid interest
         thereon.

                  4.1.2. MANDATORY PREPAYMENT. If at any time the Revolving Loan
         exceeds the Maximum Amount of Revolving Credit, whether as a result of
         voluntary reductions pursuant to Section 2.1 or otherwise, the
         Borrowers will promptly pay the amount of such excess to the Agent for
         the account of the Lenders.

                                      -25-
<PAGE>   33

                  4.1.3. VOLUNTARY PREPAYMENTS OF REVOLVING LOAN. In addition to
         the prepayment required by Section 4.1.2, the Borrowers may from time
         to time prepay all or any portion of the Revolving Loan, without
         penalty or premium (except as provided in Section 3.2.4 with respect to
         the early termination of Eurodollar Pricing Options). Such Borrower
         shall give the Agent at least one Banking Day prior notice of its
         intention to prepay, specifying the date of payment, the total amount
         of the Revolving Loan to be paid on such date and the amount of
         interest to by paid with such prepayment.

                  4.1.4. REBORROWING; APPLICATION OF PAYMENTS. The amounts of
         the Revolving Loan prepaid pursuant to Section 4.1.3 may be reborrowed
         from time to time prior to the Final Maturity Date in accordance with
         Section 2.1. The amount of the Revolving Loan prepaid pursuant to
         Section 4.1.1 may not be reborrowed. All payments of principal
         hereunder shall be made to the Agent for the account of the Lenders and
         shall be applied first to the portion of the Revolving Loan not then
         subject to Eurodollar Pricing Option then the balance of any such
         payment shall be applied to a portion of the Revolving Loan then
         subject to the Eurodollar Pricing Options, in the chronological order
         of the respective maturities, thereof, together with any payment
         required by Section 3.2.4.

         4.2. PAYMENT OF LETTERS OF CREDIT.

                  4.2.1. PAYMENTS AT MATURITY AND UPON ACCELERATION OF MATURITY.
         If on the Final Maturity Date or any accelerated maturity of the Credit
         Obligations the Lenders shall be obligated in respect of a Letter of
         Credit or a draft accepted under a Letter of Credit, the Borrower will
         either:

                  (a) prepay such obligation by depositing cash with the Agent,
         or

                  (b) deliver to the Agent a standby letter of credit
         (designating the Letter of Credit Issuer as beneficiary and issued by a
         bank and on terms reasonably acceptable to the Letter of Credit
         Issuer),

         in each case in an amount equal to the portion of the then Letter of
         Credit Exposure issued for the account of the Borrower. Any such cash
         so deposited and the cash proceeds of any draw under any standby Letter
         of Credit so furnished, including any interest thereon, shall be
         returned by the Agent to the Borrower only when, and to the extent
         that, the amount of such cash held by the Agent exceeds the Letter of
         Credit Exposure at such time and no Default then exists.

                  4.2.2. MANDATORY PREPAYMENT. If at any time the Letter of
         Credit Exposure exceeds the limits set forth in Section 2.2, the
         Borrower shall within one Banking Day pay the amount of such excess to
         the Agent for the account of the Lenders.

         4.3. PAYMENT OF MORTGAGE LOAN.

                  4.3.1. PAYMENT AT MATURITY. On the stated or any accelerated
         maturity of the Mortgage Note, the Company will pay to the Agent for
         credit to the Mortgage Note an amount equal to the Indebtedness
         evidenced by the Mortgage Note, together with all accrued and unpaid
         interest thereon and all other Credit Obligations then outstanding in
         respect of the Mortgage Loan.

                  4.3.2. MANDATORY PREPAYMENTS OF THE MORTGAGE LOAN. On each
         Payment Date, commencing with the first such date after the Initial
         Closing Date, the Company will pay to the

                                      -26-
<PAGE>   34

         Agent for credit to the Mortgage Note an amount equal to the lesser of
         (i) 1.67% of the original principal amount of the Mortgage Loan or (ii)
         the remaining balance of the Mortgage Loan.

                  4.3.3. VOLUNTARY PREPAYMENTS OF THE MORTGAGE LOAN. In addition
         to the prepayments required by Section 4.3.2, the Company may from time
         to time prepay all or any portion of the Mortgage Loan, without penalty
         or premium, together with all accrued and unpaid interest on the
         portion of the Mortgage Loan then being prepaid. With respect to such
         prepayment, the Company shall give the Agent at least one Banking Day's
         prior notice of its intention to prepay, specifying the date of
         payment, the total principal amount of the Mortgage Loan to be paid on
         such date and the amount of interest to be paid with such prepayment.
         No voluntary prepayment of the Mortgage Loan shall relieve the Company
         of its obligations to make the mandatory prepayments required by
         Section 4.3.2 and any such voluntary prepayment shall be applied to the
         payments required by Section 4.3.2 in the inverse order of maturity.

                  4.3.4. NO REBORROWING. The amounts of the Mortgage Loan paid
         pursuant to Section 4.2 may not be reborrowed.

5. CONDITIONS TO EXTENDING CREDIT.

         5.1. CONDITIONS ON INITIAL CLOSING DATE ON THE REVOLVING LOAN. The
obligations of the Lenders to make the initial Revolving Loan pursuant to
Section 2.1 shall be subject to the satisfaction, on or before the Initial
Closing Date, of the conditions set forth in this Section 5.1 as well as the
further conditions in Section 5.4. If the conditions set forth in this Section
5.1 and 5.4 are not met on or prior to the Initial Closing Date, the Lenders
shall have no obligation to make any extensions of credit under the Revolving
Loan.

                  5.1.1. REVOLVING NOTES. From and after the Initial Closing
         Date, the existing Revolving Loan shall be deemed to be outstanding
         under this Agreement and shall be evidenced by the existing Revolving
         Notes attached hereto as Exhibit 2.1.4.

                  5.1.2. PAYMENT OF FEE. The Borrowers shall have paid a
         facility fee of $375,000 to the Agent for the accounts of the Lenders
         in accordance with their respective Percentage Interests in the
         Revolving Loan.

                  5.1.3. SECURITY AGREEMENT. The Borrowers shall have duly
         authorized, executed and delivered to the Agent, for the benefit of the
         Lenders, a Security Agreement in substantially the form of Exhibit
         5.1.3 (the "SECURITY AGREEMENT").

         5.2. THE MORTGAGE LOAN. From and after the Initial Closing Date the
existing Mortgage Loan shall be deemed to be outstanding under this Agreement,
and shall be evidenced by the existing Mortgage Note, attached hereto as Exhibit
2.3.2.

         5.3. CONDITIONS TO MAKING EACH PERMITTED ACQUISITION ADVANCE. The
Lenders' several obligations to make any loan contemplated by Section 2.1, the
proceeds of which will be applied to a Permitted Acquisition, shall be subject
to the satisfaction, on or before the date of consummation of the proposed
Permitted Acquisition, of the following conditions, as well as the further
conditions set forth in Section 5.4:

                  5.3.1. PERMITTED ACQUISITION. Other than as consented to by
         the Agent in writing,

                                      -27-
<PAGE>   35

                  (a) If the Purchase Price for a Permitted Acquisition is less
         than $5,000,000, the Company shall furnish to the Required Lenders
         computations demonstrating compliance with Section 6.9.4, certified by
         a Financial Officer of the Company.

                  (b) If the Purchase Price for a Permitted Acquisition is equal
         to or exceeds $5,000,000:

                           (i) The provisions of the Acquisition Agreement
                  relating to such Permitted Acquisition shall not have been
                  amended, modified, waived or terminated in any material
                  respect from the form of such Agreement delivered to the Agent
                  pursuant to Section 6.9.4 (unless such amendment or
                  modification, in form reasonably acceptable to the Agent,
                  shall have been provided to the Agent prior to such Permitted
                  Acquisition) and all material executed documents, including
                  all schedules and exhibits thereto, shall have been delivered
                  to the Agent within 30 days of the closing of such Permitted
                  Acquisition.

                           (ii) All of the representations and warranties of the
                  Sellers set forth in such Acquisition Agreement shall be
                  complete and correct in all material respects on and as of the
                  Closing Date with the same force and effect as though made on
                  and as of such date.

                           (iii) All of the other conditions to the obligations
                  of the Borrowers set forth in such Acquisition Agreement shall
                  have been satisfied or waived by each of the other parties to
                  such Acquisition Agreement.

                           (iv) Any material consent, authorization, order or
                  approval of any Person required in connection with the
                  transactions contemplated by such Acquisition Agreement shall
                  have been obtained and shall be in full force and effect.

                           (v) All of the items required to be delivered under
                  such Acquisition Agreement shall have been so delivered.

                           (vi) The Company shall furnish to the Required
                  Lenders computations demonstrating compliance with Section
                  6.9.4, Certified by a Financial Officer of the Company.

                           (vii) Contemporaneously with or immediately after the
                  making by the Lenders of the extension of credit hereunder,
                  the Lenders shall have received a certificate of a Financial
                  Officer of the Borrower to the effect that (A) the initial
                  closing has occurred under such Acquisition Agreement and (B)
                  each of the conditions set forth in this Section 5.3.1 has
                  been satisfied.

                  5.3.2. NOTES AND CREDIT DOCUMENTS; MERGER. Contemporaneously
         with or immediately after such Permitted Acquisition, such Acquired
         Party shall either (a) execute and deliver to the Agent a Revolving
         Note for each Lender and a Joinder Agreement to the Credit Agreement
         and each other Lender Agreement in the form of Exhibit 5.3.2 or (b) be
         merged with and into an existing Borrower, in which case the Company
         shall have received a certificate of a Financial Officer of the Company
         to the effect that the merger of such Acquired Party with and into an
         existing Borrower has been consummated.

                                      -28-
<PAGE>   36

         5.4. CONDITIONS TO EACH EXTENSION OF CREDIT. The obligations of the
Lenders to make any extension of credit pursuant to Section 2 shall be subject
to the satisfaction, on or before the Closing Date for such extension of credit,
of the following conditions:

                  5.4.1. OFFICER'S CERTIFICATE. The representations and
         warranties contained in Section 7 shall be true and correct on and as
         of such Closing Date with the same force and effect as though made on
         and as of such date (except as to any representation or warranty which
         refers to a specific earlier date); that the Borrowers shall be in
         compliance with the covenants contained in Section 6 and no Default
         shall exist on such Closing Date prior to or immediately after giving
         effect to the requested extension of credit; no Material Adverse Change
         shall have occurred since December 31, 1999; and the Borrower that is
         requesting an extension of credit shall have furnished to the Agent in
         connection with the requested extension of credit a certificate to
         these effects, in substantially the form of Exhibit 5.4.1, signed by a
         Financial Officer.

                  5.4.2. LEGALITY, ETC. The making of the requested extension of
         credit shall not (a) subject any Lender to any penalty or special tax
         (other than a Tax for which the Borrowers are required to reimburse the
         Lenders under Section 3.5), (b) be prohibited by any Legal Requirement
         or (c) violate any credit restraint program of the executive branch of
         the government of the United States of America, the Board of Governors
         of the Federal Reserve System or any other governmental or
         administrative agency so long as any Lender reasonably believes that
         compliance is in the best interests of the Lender.

                  5.4.3. PROPER PROCEEDINGS. This Agreement, each other Credit
         Document and the transactions contemplated hereby and thereby shall
         have been authorized by all necessary corporate or other proceedings of
         the Borrowers. All necessary consents, approvals and authorizations of
         any governmental or administrative agency or any other Person of any of
         the transactions contemplated hereby or by any other Credit Document
         shall have been obtained and shall be in full force and effect.

                  5.4.4. GENERAL. All legal and corporate proceedings in
         connection with the transactions contemplated by this Agreement and
         each other Credit Document shall be satisfactory in form and substance
         to the Agent and the Agent shall have received copies of all documents,
         including certified copies of the Charter and Bylaws of the Borrowers
         and the other Obligors, records of corporate proceedings, certificates
         as to signatures and incumbency of officers and opinions of counsel,
         which the Agent may have reasonably requested in connection therewith,
         such documents where appropriate to be certified by proper corporate or
         governmental authorities.

6. GENERAL COVENANTS. Each of the Borrowers covenants that, until all of the
Credit Obligations shall have been paid in full and until the Lenders'
commitments to extend credit under this Agreement and any other Credit Document
shall have been irrevocably terminated, it will comply, and will cause its
Subsidiaries to comply with the following provisions:

         6.1. TAXES AND OTHER CHARGES; ACCOUNTS PAYABLE.

                  6.1.1. TAXES AND OTHER CHARGES. Each of the Borrowers shall
         duly pay and discharge, or cause to be paid and discharged, before the
         same become in arrears, all taxes, assessments and other governmental
         charges imposed upon such Person and its properties, sales or
         activities, or upon the income or profits therefrom, as well as all
         claims for labor, materials or supplies which if unpaid

                                      -29-
<PAGE>   37

         might by law become a Lien upon any of its property; provided, however,
         that any such tax, assessment, charge or claim need not be paid if the
         validity or amount thereof shall at the time be contested in good faith
         by appropriate proceedings and if such Person shall, in accordance with
         GAAP, have set aside on its books adequate reserves with respect
         thereto; and provided, further, that each of the Borrowers shall pay or
         bond, or cause to be paid or bonded, all such taxes, assessments,
         charges or other governmental claims immediately upon the commencement
         of proceedings to foreclose any Lien which may have attached as
         security therefor (except to the extent such proceedings have been
         dismissed or stayed).

                  6.1.2. ACCOUNTS PAYABLE. Each of the Borrowers shall promptly
         pay when due, or in conformity with customary trade terms, all other
         Indebtedness, including accounts payable, incident to the operations of
         such Person not referred to in Section 6.1.1; PROVIDED, HOWEVER, that
         any such Indebtedness need not be paid if the validity or amount
         thereof shall at the time be contested in good faith and if such Person
         shall, in accordance with GAAP, have set aside on its books adequate
         reserves with respect thereto.

         6.2. CONDUCT OF BUSINESS, ETC.

                  6.2.1. TYPES OF BUSINESS. The Borrowers shall engage only in
         the business of pediatric, neonatal and perinatal medical services and
         related services.

                  6.2.2. MAINTENANCE OF PROPERTIES. Each of the Borrowers:

                  (a) shall keep its properties in such repair, working order
         and condition, and shall from time to time make such repairs,
         replacements, additions and improvements thereto as are necessary for
         the efficient operation of its businesses and shall comply at all times
         in all material respects with all franchises, licenses, leases and
         other material agreements to which it is party so as to prevent any
         loss or forfeiture thereof or thereunder, except where (i) compliance
         is at the time being contested in good faith by appropriate proceedings
         or (ii) failure to comply with the provisions being contested has not
         resulted, or does not create a material risk of resulting, in the
         aggregate in any Material Adverse Change; PROVIDED, HOWEVER, that this
         Section 6.2.2(a) shall not apply to assets or entities disposed of in
         transactions permitted by Section 6.12; and

                  (b) shall do all things necessary to preserve, renew and keep
         in full force and effect and in good standing its legal existence and
         authority necessary to continue its business; PROVIDED, HOWEVER, that
         this Section 6.2.2(b) shall not prevent the merger, consolidation or
         liquidation of Subsidiaries permitted by Section 6.12.

                  6.2.3. STATUTORY COMPLIANCE. Each of the Borrowers shall
         comply in all material respects with all Legal Requirements, except
         where (a) compliance therewith shall at the time be contested in good
         faith by appropriate proceedings or (b) failure so to comply with the
         provisions being contested would not in the aggregate result in any
         Material Adverse Change.

                  6.2.4. NO SUBSIDIARIES. No Borrower shall form or suffer to
         exist any Subsidiary, except for such Subsidiaries as shall have
         executed and delivered to the Agent either (a) this Agreement and each
         other Credit Document as of the Initial Closing Date or (b) a Joinder
         Agreement in the form of Exhibit 5.3.2 pursuant to which such
         Subsidiary shall have become a Borrower and a Guarantor hereunder.

                                      -30-
<PAGE>   38

                  6.2.5. COMPLIANCE WITH MATERIAL AGREEMENTS. Each of the
         Borrowers shall comply in all material respects with the Material
         Agreements (to the extent not in violation of the other provisions of
         this Agreement or any other Credit Document). Without the prior written
         consent of the Required Lenders, which consent shall not be
         unreasonably withheld, no Material Agreement shall be amended,
         modified, waived or terminated in any manner that would have in any
         material respect an adverse effect on the interests of the Lenders.

         6.3. INSURANCE.

                  6.3.1. BUSINESS INTERRUPTION INSURANCE. The Borrowers shall
         maintain with financially sound and reputable insurers, reasonably
         satisfactory to the Agent, insurance related to interruption of
         business, either for loss of revenues or for extra expense, in the
         manner customary for businesses of similar size engaged in similar
         activities in similar localities.

                  6.3.2. PROPERTY INSURANCE. The Borrowers shall keep their
         assets which are of an insurable character insured by financially sound
         and reputable insurers, reasonably satisfactory to the Agent, against
         theft and fraud and against loss or damage by fire, explosion and
         hazards and such other extended coverage risks insured against by
         extended coverage to the extent, in amounts and with deductibles at
         least as favorable as those generally maintained by businesses of
         similar size engaged in similar activities in similar localities and
         all such policies which relate to the premises covered by the Mortgage
         shall name the Agent and its successors and assigns as first mortgagee.

                  6.3.3. LIABILITY INSURANCE. The Borrowers shall maintain with
         financially sound and reputable insurers, reasonably satisfactory to
         the Agent, insurance against liability for hazards, risks and liability
         to persons (for both death and bodily injury) and property, including
         product liability insurance and medical malpractice insurance, to the
         extent, in amounts and with deductibles at least as favorable as those
         generally maintained by businesses of similar size engaged in similar
         activities in similar localities; PROVIDED, HOWEVER, that it may effect
         workers' compensation insurance or similar coverage with respect to
         operations in any particular state or other jurisdiction through an
         insurance fund operated by such state or jurisdiction or by meeting the
         self-insurance requirements of such state or jurisdiction.

                  Each of the required policies described in this Section 6.3
         shall provide for at least 30 days prior written notice to the Agent of
         the cancellation, expiration or substantial modification thereof.

         6.4. FINANCIAL STATEMENTS AND REPORTS. The Company shall maintain a
system of accounting in which correct entries shall be made of all transactions
in relation to its business and affairs in accordance with generally accepted
accounting practice. The fiscal year of the Borrowers shall end on December 31
in each year and the fiscal quarters of the Borrowers shall end on March 31,
June 30, September 30 and December 31 in each year.

                  6.4.1. ANNUAL REPORTS. The Company shall furnish to the
         Lenders as soon as available, and in any event within 120 days after
         the end of each fiscal year, the Consolidated balance sheet of the
         Company and its Subsidiaries as at the end of such fiscal year, the
         Consolidated statement of income and Consolidated statement of changes
         in shareholders' equity and of cash flows of the Company and its
         Subsidiaries for such fiscal year (all in reasonable detail) and
         together, in the case of Consolidated financial statements, with
         comparative figures for the immediately preceding fiscal year, all
         accompanied by:

                                      -31-
<PAGE>   39

                  (a) Unqualified reports of PricewaterhouseCoopers (or, if they
         cease to act as auditors of the Company, independent certified public
         accountants of recognized national standing reasonably satisfactory to
         the Required Lenders), containing no material uncertainty, to the
         effect that they have audited the foregoing Consolidated financial
         statements in accordance with generally accepted auditing standards and
         that such Consolidated financial statements present fairly, in all
         material respects, the financial position of the Company and its
         Subsidiaries covered thereby at the dates thereof and the results of
         their operations for the periods covered thereby in conformity with
         GAAP.

                  (b) The statement of such accountants that they have caused
         this Agreement to be reviewed and that in the course of their audit of
         the Company and its Subsidiaries no facts have come to their attention
         that cause them to believe that any Default exists and in particular
         that they have no knowledge of any Default under Sections 6.5 through
         6.16 or, if such is not the case, specifying such Default and the
         nature thereof. This statement is furnished by such accountants with
         the understanding that the examination of such accountants cannot be
         relied upon to give such accountants knowledge of any such Default
         except as it relates to accounting or auditing matters within the scope
         of their audit.

                  (c) A certificate of the Company signed by a Financial
         Officer, substantially in the form of Exhibit 6.4.1, to the effect that
         such officer has caused this Agreement to be reviewed and has no
         knowledge of any Default, or if such officer has such knowledge,
         specifying such Default and the nature thereof, and what action such
         Borrower has taken, is taking or proposes to take with respect thereto,
         and containing a schedule of computations by the Company demonstrating,
         as of the end of such fiscal year, compliance with the Computation
         Covenants.

                  (d) Supplements to Exhibits 7.1 and 7.3 showing any changes in
         the information set forth in such Exhibits not previously furnished to
         the Lenders in writing, as well as any changes in the Charter, Bylaws
         or incumbency of officers of any of the Borrowers or their respective
         Subsidiaries from those previously certified to the Agent.

                  6.4.2. QUARTERLY REPORTS. The Company shall furnish to the
         Lenders as soon as available and, in any event, within 60 days after
         the end of each of the first three fiscal quarters of the Company, the
         internally prepared Consolidated balance sheets of the Company and its
         Subsidiaries as of the end of such fiscal quarter, the Consolidated
         statements of income and Consolidated statements of cash flows of the
         Borrowers and their respective Subsidiaries for such fiscal quarter and
         for the portion of the fiscal year then ended (all in reasonable
         detail) and together, in the case of Consolidated statements, with
         comparative figures for the same period in the preceding fiscal year,
         all accompanied by:

                  (a) A certificate of the Company signed by a Financial
         Officer, substantially in the form of Exhibit 6.4.2.

                  (b) Supplements to Exhibits 7.1 and 7.3 showing any changes in
         the information set forth in such Exhibits not previously furnished to
         the Lenders in writing, as well as any changes in the Charter, Bylaws
         or incumbency of officers of any of the Borrowers or their respective
         Subsidiaries from those previously certified to the Agent.

                  6.4.3. OTHER REPORTS. The Borrowers shall promptly furnish to
         the Lenders:

                                      -32-
<PAGE>   40

                  (a) As soon as prepared and in any event within 30 days after
         the beginning of each fiscal year, a business plan, an annual budget
         and operating projections for such fiscal year of the Company,
         certified by a Financial Officer of the Company.

                  (b) As soon as available, any material updates of such plan,
         budget and projections.

                  (c) Any management letters furnished to the Company or any of
         its Related Entities by the Company's auditors.

                  (d) As soon as practicable but, in any event, within 20
         Banking Days after the filing thereof, such registration statements,
         proxy statements and reports, including, to the extent applicable,
         Forms S-1, S-2, S-3, S-4, 10-K, 10-Q and 8-K, as may be filed by the
         Company or any of its Related Entities with the Securities and Exchange
         Commission.

                  (e) Any material information relating to a material audit or
         investigation of any Borrower in its capacity as a Medicaid provider by
         a governmental or administrative agency.

                  6.4.4. NOTICE OF LITIGATION, DEFAULTS, ETC. Each of the
         Borrowers shall promptly furnish to the Lenders notice of any
         litigation or any administrative or arbitration proceeding (a) which
         creates a material risk of resulting, after giving effect to any
         applicable insurance, in the payment by any Borrower or any of its
         Subsidiaries of more than $750,000 or (b) which results, or creates a
         material risk of resulting, in a Material Adverse Change. Within five
         Banking Days after acquiring knowledge thereof, such Borrower shall
         notify the Lenders of the existence of any Default or Material Adverse
         Change, specifying the nature thereof and what action the Company, such
         Borrower or such Subsidiary has taken, is taking or proposes to take
         with respect thereto.

                  6.4.5. ERISA REPORTS. Each of the Borrowers shall furnish to
         the Lenders promptly after the same shall become available the
         following items with respect to any Plan:

                  (a) any request for a waiver of the funding standards or an
         extension of the amortization period required by sections 303 and 304
         of ERISA or section 412 of the Code, promptly after any Control Group
         Person submits such request to the Department of Labor or the Internal
         Revenue Service,

                  (b) any reportable event (as defined in section 4043 of
         ERISA), unless the notice requirement with respect thereto has been
         waived by regulation, promptly after any Control Group Person learns of
         such reportable event; and furnish the Bank with a copy of the notice
         of such reportable event required to be filed with the PBGC, promptly
         after such notice is required to be given,

                  (c) any notice received by any Control Group Person that the
         PBGC has instituted or intends to institute proceedings to terminate
         any Plan, or that any Multiemployer Plan is insolvent or in
         reorganization status under Title IV of ERISA, promptly after receipt
         of such notice,

                  (d) notice of the possibility of the termination of any Plan
         by its administrator pursuant to section 4041 of ERISA, as soon as any
         Control Group Person learns of such possibility and in any event prior
         to such termination; and furnish the Bank with a copy of any notice to
         the PBGC that a Plan is to be terminated, promptly after any Control
         Group Person files a copy of such notice, and

                                      -33-
<PAGE>   41

                  (e) notice of the intention of any Control Group Person to
         withdraw, in whole or in part, from any Multiemployer Plan, prior to
         such withdrawal, and, upon any Bank's request from time to time, of the
         extent of the liability, if any, of such Person as a result of such
         withdrawal, to be the best of such Person's knowledge at such time.

                  6.4.6. OTHER INFORMATION. From time to time upon request of
         any authorized officer of any Lender, each of the Borrowers shall
         furnish to the Lenders such information regarding the business, assets,
         financial condition, income or prospects of the Borrowers as such
         officer may reasonably request, including copies of all tax returns,
         licenses, agreements, leases and instruments to which any of the
         Borrowers is party. The Lenders' authorized officers and
         representatives shall have the right during normal business hours upon
         reasonable notice and at reasonable intervals to examine the books and
         records of the Borrowers, to make copies and notes therefrom for the
         purpose of ascertaining compliance with or obtaining enforcement of
         this Agreement or any other Credit Document.

         6.5. CERTAIN FINANCIAL TESTS.

                  6.5.1. CONSOLIDATED FINANCING DEBT TO CONSOLIDATED EBITDA.
         Consolidated Financing Debt shall not on any date exceed 250% of
         Consolidated EBITDA for the most recently completed period of four
         consecutive fiscal quarters.

                  6.5.2. CONSOLIDATED TOTAL DEBT SERVICE. On the last day of
         each fiscal quarter of the Company and its Related Entities, Operating
         Cash Flow shall be at least 200% of Consolidated Fixed Charges for the
         period of four consecutive fiscal quarters then ended.

                  6.5.3. CONSOLIDATED NET WORTH. On the last day of each fiscal
         quarter of the Company and its Related Entities, the Consolidated Net
         Worth shall equal at least the sum of (a) $197,425,000 PLUS (b) the
         aggregate net proceeds of any offerings of equity interests in the
         Company or any of its Related Entities occurring on or after the
         Initial Closing Date, PLUS (c) 50% of Consolidated Net Income (if
         positive) for each fiscal quarter of the Company thereafter.

                  6.5.4. CONSOLIDATED EBITDA TO CONSOLIDATED NET REVENUE. On the
         last day of each fiscal quarter of the Company and its Related
         Entities, Consolidated EBITDA shall be at least 15% of Consolidated Net
         Revenue for the fiscal quarter then ended.

                  6.5.5. CONSOLIDATED TANGIBLE NET WORTH. On the last day of
         each fiscal quarter of the Company, and its Related Entities, beginning
         on and after the fiscal quarter ending March 31, 2001, Consolidated
         Tangible Net Worth shall exceed the number set forth in the table below
         opposite such day:

                 Fiscal Quarter Ending                            Amount
                 ---------------------                            ------

                 March 31, 2001                                   ($4,000,000)
                 June 30, 2001                                    ($2,000,000)
                 September 30, 2001 and thereafter                $1

         6.6. INDEBTEDNESS. None of the Borrowers shall create, incur, assume or
otherwise become or remain liable with respect to any Indebtedness except the
following:

                                      -34-
<PAGE>   42

                  6.6.1. Indebtedness in respect of the Credit Obligations.

                  6.6.2. Guarantees permitted by Section 6.7.

                  6.6.3. Current liabilities, other than Financing Debt,
         incurred in the ordinary course of business, PROVIDED, HOWEVER that all
         such Indebtedness, including without limitation trade payables, shall
         be paid in accordance with Section 6.1.

                  6.6.4. To the extent that payment thereof shall not at the
         time be required by Section 6.1, Indebtedness in respect of taxes,
         assessments, governmental charges and claims for labor, materials and
         supplies.

                  6.6.5. Indebtedness secured by Liens of carriers, warehouses,
         mechanics and landlords permitted by Sections 6.8.5 and 6.8.6.

                  6.6.6. Indebtedness in respect of judgments or awards (a)
         which have been in force for less than the applicable appeal period or
         (b) in respect of which the Borrower shall at the time in good faith be
         prosecuting an appeal or proceedings for review and, in the case of
         each of clauses (a) and (b), such Borrower shall have taken appropriate
         reserves therefor in accordance with GAAP and execution of such
         judgment or award shall not be levied.

                  6.6.7. Indebtedness with respect to deferred compensation in
         the ordinary course of business and Indebtedness with respect to
         employee benefit programs (including liabilities in respect of deferred
         compensation, pension or severance benefits, early termination
         benefits, disability benefits, vacation benefits and tuition benefits)
         incurred in the ordinary course of business so long as the Borrower is
         in compliance with Section 6.13.

                  6.6.8. Indebtedness in respect of customer advances and
         deposits, deferred income, deferred taxes and other deferred credits
         arising in the ordinary course of business.

                  6.6.9. Indebtedness relating to deferred gains and deferred
         taxes arising in connection with sale of assets permitted under Section
         6.12.

                  6.6.10. Indebtedness in respect of inter-company loans and
         advances among the Borrowers which are not prohibited by Section 6.9.

                  6.6.11. Approved Subordinated Debt.

                  6.6.12. Contingent obligations approved by the Required
         Lenders under Agreements relating to Permitted Acquisitions.

                  6.6.13. Indebtedness to the extent set forth on Exhibit 6.6.

         6.7. GUARANTEES. None of the Borrowers shall become or remain liable
with respect to any Guarantee, including reimbursement obligations, whether
contingent or matured, under letters of credit or other financial guarantees by
third parties, except the following:

                  6.7.1. Guarantees of the Credit Obligations.

                                      -35-
<PAGE>   43

                  6.7.2. Guarantees outstanding on the Initial Closing Date and
         described on Exhibit 6.7.

         6.8. LIENS. None of the Borrowers shall create, incur or enter into, or
suffer to be created or incurred or to exist, any Lien, except the following:

                  6.8.1. Liens on real property that secure the Mortgage and
         Liens that secure the Credit Obligations.

                  6.8.2. Liens to secure taxes, assessments and other
         governmental charges, to the extent that payment thereof shall not at
         the time be required by Section 6.1.

                  6.8.3. Deposits or pledges made (a) in connection with, or to
         secure payment of, workers' compensation, unemployment insurance, old
         age pensions or other social security, (b) in connection with casualty
         insurance maintained in accordance with Section 6.3, (c) to secure the
         performance of bids, tenders, contracts (other than contracts relating
         to Financing Debt) or leases, (d) to secure statutory obligations or
         surety or appeal bonds, (e) to secure indemnity, performance or other
         similar bonds in the ordinary course of business or (f) in connection
         with contested amounts to the extent that payment thereof shall not at
         that time be required by Section 6.1.

                  6.8.4. Liens in respect of judgments or awards, to the extent
         that such judgments or awards are permitted by Section 6.6.6.

                  6.8.5. Liens of carriers, warehouses, mechanics and similar
         Liens, in each case (a) in existence less than 120 days from the date
         of creation thereof or (b) being contested in good faith by the
         Borrower in appropriate proceedings (so long as such Borrower shall, in
         accordance with GAAP, have set aside on its books adequate reserves
         with respect thereto).

                  6.8.6. Encumbrances in the nature of (a) zoning restrictions,
         (b) easements, (c) restrictions of record on the use of real property,
         (d) landlords' and lessors' Liens on rented premises and (e)
         restrictions on transfers or assignment of leases, which in each case
         do not materially detract from the value of the encumbered property or
         impair the use thereof in the business of any Borrower.

                  6.8.7. Other Liens and Capitalized Lease Obligations on the
         property secured by such Liens or the subject of such Capitalized Lease
         as set forth on Exhibit 6.8 and any renewals thereof, but not any
         increase in the amount thereof.

         6.9. INVESTMENTS AND PERMITTED ACQUISITIONS. None of the Obligors shall
have outstanding, acquire, commit itself to acquire or hold any Investment
(including any Investment consisting of the Permitted Acquisition of any
business) except for the following:

                  6.9.1. Inter-company loans and advances from any Borrower to
         any other Borrower but in each case only to the extent reasonably
         necessary for Consolidated tax planning and working capital management.

                  6.9.2. Investments in Cash Equivalents.

                  6.9.3. Guarantees permitted by Section 6.7.

                                      -36-
<PAGE>   44

                  6.9.4. Investments constituting the acquisition of all of the
         capital stock, equity, partnership or other beneficial interests in, or
         substantially all the assets of, any Person that derives substantially
         all of its revenues from a business that the Borrowers would be
         permitted to engage in under Section 6.2.1; PROVIDED, HOWEVER, that:

                  (a) the acquisition shall have been approved by a majority of
         the board of directors or similar governing entity of the Person being
         acquired;

                  (b) the Purchase Price for such acquisition does not exceed
         $10,000,000 and the Purchase Price for such acquisition does not exceed
         five times the Pro Forma EBITDA of such Person (which calculation shall
         be reasonably satisfactory to the Agent);

                  (c) The Company has provided the Agent at least 5 Banking Days
         prior written notice of such acquisition and copies of all letters of
         intent and agreements relating thereto;

                  (d) The Company has provided the Agent, at least 5 Banking
         Days prior to such acquisition written computations, historical
         financial statements and projections satisfactory to the Agent
         demonstrating pro forma compliance with Section 6.5 and 6.9.4 and the
         absence of any Default, both immediately before and after giving effect
         to such acquisition; and

                  (e) The Company and the other Guarantors will pledge the stock
         (up to 66% of the voting stock of a Foreign Subsidiary) of the acquired
         or newly-created entity.

                  6.9.5. Loans to employees not to exceed a principal amount of
         $1,000,000 in the aggregate at any one time outstanding.

                  6.9.6. Investments representing Indebtedness of any Person
         owing as a result of the sale by any Borrower in the ordinary course of
         business to such Person of products, services or tangible property no
         longer required in such Borrower's business.

                  6.9.7. Investments described on Exhibit 6.9.7.

         6.10. DISTRIBUTIONS. None of the Borrowers shall make any Distribution
except the following (i) distributions in respect of the redemption of capital
stock of the Company from employees of any Borrower; PROVIDED, HOWEVER, that the
amount of all such Distributions shall not exceed $500,000 in the aggregate in
any fiscal year and (ii) Subsidiaries of the Company may make Distributions to
the Company.

         6.11. CAPITAL EXPENDITURES. The Borrowers will not make aggregate
Capital Expenditures exceeding $5,000,000 in any fiscal year.

         6.12. ASSET DISPOSITIONS AND MERGERS. None of the Obligors shall merge
or enter into a consolidation or sell, lease, sell and lease back, sublease or
otherwise dispose of any of its assets, except the following:

                  6.12.1. So long as immediately prior to and after giving
         effect thereto there shall exist no Default, the Obligors may sell or
         otherwise dispose of (a) inventory in the ordinary course of business,
         (b) tangible assets to be replaced in the ordinary course of business
         within 12 months by other assets of equal or greater value, or (c)
         tangible assets no longer used or useful in the business of such
         Obligor; PROVIDED, HOWEVER, that the aggregate fair market value (or
         book value, if greater)

                                      -37-
<PAGE>   45

         of the assets sold or disposed of pursuant to this clause (c) shall not
         exceed $100,000 in any fiscal year.

                  6.12.2. Any Borrower may merge or be liquidated into any other
         Borrower.

                  6.12.3. The Company may sell the premises covered by the
         Mortgage so long as the Company has obtained the prior written consent
         of the holder of the Mortgage Loan and provided that the proceeds of
         such sale are applied as a voluntary prepayment of the Mortgage Loan in
         accordance with Section 4.3.3 and any excess proceeds are applied as a
         voluntary prepayment of the Revolving Loan in accordance with Section
         4.1.3.

         6.13. ERISA, ETC. Each of the Obligors shall comply, and shall cause
all Control Group Persons to comply, in all material respects, with the
provisions of ERISA and the Code applicable to each Plan. Each of the Obligors
shall meet, and shall cause all Control Group Persons to meet, all minimum
funding requirements applicable to them with respect to any Plan pursuant to
section 302 of ERISA or section 412 of the Code, without giving effect to any
waivers of such requirements or extensions of the related amortization periods
which may be granted. At no time shall the Accumulated Benefit Obligations under
any Plan that is not a Multiemployer Plan exceed the fair market value of the
assets of such Plan allocable to such benefits by more than $250,000. Within 45
days after the end of each fiscal year, the Borrowers shall deliver to the Agent
an annual actuarial report regarding their compliance with the funding
requirements applicable to them with respect to each Multiemployer Plan and each
Plan that constitutes a "defined benefit plan" (as defined in ERISA).

         6.14. TRANSACTIONS WITH AFFILIATES. Except with respect to transactions
set forth on Exhibit 6.14, none of the Obligors shall effect any transaction
with any of their respective Affiliates (except for other Obligors) on a basis
less favorable to such Obligor than would be the case if such transaction had
been effected with a non-Affiliate.

         6.15. ENVIRONMENTAL LAWS.

                  6.15.1. COMPLIANCE WITH LAW AND PERMITS. Each of the Obligors
         shall use and operate all of its facilities and properties in material
         compliance with all Environmental Laws, keep all necessary permits,
         approvals, certificates, licenses and other authorizations relating to
         environmental matters in effect and remain in material compliance
         therewith, and handle all Hazardous Materials in material compliance
         with all applicable Environmental Laws.

                  6.15.2. NOTICE OF CLAIMS, ETC. Each of the Obligors shall
         immediately notify the Agent, and provide copies upon receipt, of all
         written claims, complaints, notices or inquiries from governmental
         authorities relating to the condition of its facilities and properties
         or compliance with Environmental Laws, and shall promptly cure and have
         dismissed with prejudice to the satisfaction of the Agent any actions
         and proceedings relating to compliance with Environmental Laws.

         6.16. DEPOSITORY ACCOUNTS. The Borrowers shall maintain, and shall
cause all of their Subsidiaries to maintain, all principal deposit accounts used
in their businesses at one or more of the Lenders.

                                      -38-
<PAGE>   46

7. REPRESENTATIONS AND WARRANTIES. In order to induce the Lenders to extend
credit to the Borrowers hereunder, each of the Obligors as are party hereto from
time to time jointly and severally represents and warrants as follows:

         7.1. ORGANIZATION AND BUSINESS.

                  7.1.1. THE OBLIGORS. Each of the Obligors is duly organized,
         validly existing and in good standing under the laws of the
         jurisdiction in which it is organized with all power and authority,
         corporate or otherwise, necessary to (a) enter into and perform this
         Agreement and each other Credit Document to which it is party, (b)
         guarantee the Credit Obligations, and (c) own its properties and carry
         on the business now conducted or proposed to be conducted by it.
         Certified copies of the Charter and Bylaws of each Obligor have been
         previously delivered to the Agent and are correct and complete. Exhibit
         7.1, as from time to time hereafter supplemented in accordance with
         Sections 6.4.1 and 6.4.2, sets forth, as of the later of the date
         hereof or as of the end of the most recent fiscal quarter for which
         financial statements are required to be furnished in accordance with
         such Sections, (i) the name and jurisdiction of incorporation of each
         Borrower and (ii) the address of each Borrower's principal executive
         office and chief place of business.

                  7.1.2. QUALIFICATION. Each of the Borrowers is duly and
         legally qualified to do business as a foreign corporation and is in
         good standing in each state or jurisdiction in which such qualification
         is required and is duly authorized, qualified and licensed under all
         laws, regulations, ordinances or orders of public authorities, or
         otherwise, to carry on its business in the places and in the manner in
         which it is conducted, except for failures to be so qualified,
         authorized or licensed which would not in the aggregate result, or pose
         a material risk of resulting, in any Material Adverse Change.

                  7.1.3. CAPITALIZATION. Other than capital stock issued to
         selling physicians or their advisors as part of the consideration in a
         Permitted Acquisition or issued to Directors, Officers and other
         employees of the Borrowers and other Accredited Investors as defined by
         Rule 501 under the Securities Act of 1933, as amended, no options,
         warrants, conversion rights, preemptive rights or other statutory or
         contractual rights to purchase shares of capital stock or other
         securities of any Borrower, other than the Company, now exist, nor has
         any Borrower, other than the Company, authorized any such right, nor is
         any Borrower, other than the Company, obligated in any other manner to
         issue shares of its capital stock or other securities.

         7.2. FINANCIAL STATEMENTS AND OTHER INFORMATION; MATERIAL AGREEMENTS.

                  7.2.1. FINANCIAL STATEMENTS AND OTHER INFORMATION. The
         Borrowers have previously furnished to the Lenders copies of the
         following:

                  (a) The audited balance sheets of the Borrowers as at December
         31, 1999 and the audited statements of income and the audited
         statements of changes in shareholders' equity and of cash flows of the
         Borrowers for its fiscal year then ended.

                  (b) The unaudited balance sheets of the Borrowers for the
         three months ended March 31, 2000 and the unaudited statements of
         income and of cash flows of the Borrowers for the portion of the fiscal
         year then ended.

                                      -39-
<PAGE>   47

                  The audited financial statements (including the notes thereto)
         referred to in clause (a) above were prepared in accordance with GAAP
         and fairly present the financial position of the Borrowers at the date
         thereof and the results of their operations for the periods covered
         thereby. The audited financial statements referred to in clause (a)
         above and the unaudited financial statements referred to in clause (b)
         above were prepared in accordance with GAAP and fairly present the
         financial position of the Borrowers at the respective dates thereof and
         the results of its operations for the periods covered thereby, subject
         to normal year-end audit adjustment and the addition of footnotes in
         the case of interim financial statements. Except as described on
         Exhibit 7.11, none of the Borrowers has any known contingent liability
         material to it which is not reflected in the balance sheets referred to
         in clauses (a) or (b) above (or delivered pursuant to Sections 6.4.1 or
         6.4.2) or in the notes thereto.

                  7.2.2. MATERIAL AGREEMENTS. The Borrowers have previously
         furnished to the Lenders correct and complete copies, including all
         exhibits, schedules and amendments thereto, of the agreements, each as
         in effect on the date hereof, listed in Exhibit 7.2.2 (the "MATERIAL
         AGREEMENTS").

         7.3. CHANGES IN CONDITION. Since December 31, 1999 no Material Adverse
Change has occurred and between December 31, 1999 and the date hereof, except as
set forth in Exhibit 7.3, none of the Obligors has entered into any material
transaction outside the ordinary course of business except for the transactions
contemplated by or otherwise permitted or authorized pursuant to this Agreement
and the Material Agreements.

         7.4. TITLE TO ASSETS. Each of the Borrowers has good and marketable
title to or rights to use under leases all assets necessary for or used in the
operations of their business as now conducted by them and reflected in the most
recent balance sheet referred to in Section 7.2.1 (or the balance sheet most
recently furnished to the Lenders pursuant to Sections 6.4.1 or 6.4.2), and to
all assets acquired subsequent to the date of such balance sheet, subject to no
Liens except for Liens permitted by Section 6.8 or reflected on Exhibit 7.4 and
except for assets disposed of as permitted by Section 6.12.

         7.5. OPERATIONS IN CONFORMITY WITH LAW, ETC. The operations of the
Obligors as now conducted or proposed to be conducted are not in violation of,
nor is any Obligor in default under, any Legal Requirement presently in effect,
except for such violations and defaults as do not and will not, in the
aggregate, result, or create a material risk of resulting, in any Material
Adverse Change. No Obligor has received notice of any such violation or default
or has knowledge of any basis on which the operations of the Obligors, as now
conducted and as currently proposed to be conducted after the date hereof, would
be held so as to violate or to give rise to any such violation or default.

         7.6. LITIGATION. Except as otherwise set forth in Exhibit 7.6, no
litigation, at law or in equity, or any proceeding before any court, board or
other governmental or administrative agency or any arbitrator is pending or, to
the knowledge of any Borrower, threatened which may involve any material risk of
any final judgment, order or liability which, after giving effect to any
applicable insurance, has resulted, or creates a material risk of resulting, in
any Material Adverse Change or which seeks to enjoin the consummation, or which
questions the validity, of any of the transactions contemplated by this
Agreement or any other Credit Document. No judgment, decree or order of any
court, board or other governmental or administrative agency or any arbitrator
has been issued against or binds any Obligor which has resulted, or creates a
material risk of resulting, in any Material Adverse Change.

         7.7. AUTHORIZATION AND ENFORCEABILITY. Each of the Obligors has taken
all corporate action required to execute, deliver and perform this Agreement and
each other Credit Document to which it is

                                      -40-
<PAGE>   48

party. No consent of stockholders of any Obligor is necessary in order to
authorize the execution, delivery or performance of this Agreement or any other
Credit Document to which such Obligor is party. Each of this Agreement and each
other Credit Document constitutes the legal, valid and binding obligation of
each Obligor party thereto and is enforceable against such Obligor in accordance
with its terms.

         7.8. NO LEGAL OBSTACLE TO AGREEMENTS. Neither the execution and
delivery of this Agreement or any other Credit Document, nor the making of any
borrowings hereunder, nor the guaranteeing of the Credit Obligations, nor the
securing of the Credit Obligations with the Credit Security, nor the
consummation of any transaction referred to in or contemplated by this Agreement
or any other Credit Document, nor the fulfillment of the terms hereof or thereof
or of any other agreement, instrument, deed or lease contemplated by this
Agreement or any other Credit Document, has constituted or resulted in or will
constitute or result in:

                  (a) any breach or termination of the provisions of any
         material agreement, instrument, deed or lease to which any Obligor is a
         party or by which it is bound, or of the Charter or By-laws of any
         Obligor;

                  (b) the violation of any law, statute, judgment, decree or
         governmental order, rule or regulation applicable to any Obligor;

                  (c) the creation under any agreement, instrument, deed or
         lease of any Lien (other than Liens on the Credit Security which secure
         the Credit Obligations) upon any of the assets of any Obligor; or

                  (d) any redemption, retirement or other repurchase obligation
         of any Obligor under any Charter, Bylaw, agreement, instrument, deed or
         lease.

No approval, authorization or other action by, or declaration to or filing with,
any governmental or administrative authority or any other Person is required to
be obtained or made by any Obligor in connection with the execution, delivery
and performance of this Agreement, the Revolving Notes or any other Credit
Document, the transactions contemplated hereby or thereby, the making of any
borrowing hereunder, the guaranteeing of the Credit Obligations or the securing
of the Credit Obligations with the Credit Security.

         7.9. DEFAULTS. None of the Obligors is in default under any provision
of its Charter or By-laws or of this Agreement or any other Credit Document.
None of the Obligors is in default under any provision of any material
agreement, instrument, deed or lease to which it is party or by which it or its
property is bound. None of the Obligors has violated any law, judgment, decree
or governmental order, rule or regulation, in each case so as to result, or
create a material risk of resulting, in any Material Adverse Change.

         7.10. LICENSES, ETC. The Obligors have all patents, patent
applications, patent licenses, patent rights, trademarks, trademark rights,
trade names, trade name rights, copyrights, licenses, franchises, permits,
authorizations and other rights as are necessary for the conduct of the business
of the Obligors as now conducted by them. All of the foregoing are in full force
and effect in all material respects, and each of the Obligors is in substantial
compliance with the foregoing without any known conflict with the valid rights
of others which has resulted, or creates a material risk of resulting, in any
Material Adverse Change. No event has occurred which permits, or after notice or
lapse of time or both would permit, the revocation or termination of any such
license, franchise or other right or which affects the rights of any of the
Obligors

                                      -41-
<PAGE>   49

thereunder so as to result, or to create a material risk of resulting, in any
Material Adverse Change. No litigation or other proceeding or dispute exists
with respect to the validity or, where applicable, the extension or renewal, of
any of the foregoing which has resulted, or creates a material risk of
resulting, in any Material Adverse Change.

         7.11. TAX RETURNS. Each of the Obligors has filed all material tax and
information returns which are required to be filed by it and has paid, or made
adequate provision for the payment of, all taxes which have or may become due
pursuant to such returns or to any assessment received by it. Except as
disclosed on Exhibit 7.11, none of the Obligors knows of any material additional
assessments or any basis therefor. Each of the Obligors reasonably believes that
the charges, accruals and reserves on the books of the Obligors in respect of
taxes or other governmental charges are adequate.

         7.12. FUTURE EXPENDITURES. None of the Obligors anticipate that the
future expenditures, if any, by the Obligors needed to meet the provisions of
any federal, state or foreign governmental statutes, orders, rules or
regulations will be so burdensome as to result, or create a material risk of
resulting, in any Material Adverse Change.

         7.13. ENVIRONMENTAL REGULATIONS.

                  7.13.1. ENVIRONMENTAL COMPLIANCE. Each of the Borrowers is in
         compliance in all material respects with the Clean Air Act, the Federal
         Water Pollution Control Act, the Marine Protection Research and
         Sanctuaries Act, RCRA, CERCLA and any other Environmental Law in effect
         in any jurisdiction in which any properties of the Borrowers are
         located or where any of them conducts its business, and with all
         applicable published rules and regulations (and applicable standards
         and requirements) of the federal Environmental Protection Agency and of
         any similar agencies in states or foreign countries in which the
         Borrowers conduct their businesses other than those which in the
         aggregate have not resulted, and do not create a material risk of
         resulting, in a Material Adverse Change.

                  7.13.2. ENVIRONMENTAL LITIGATION. No suit, claim, action or
         proceeding of which any Borrower has been given notice or otherwise has
         knowledge is now pending before any court, governmental agency or board
         or other forum, or to any Borrower's knowledge, threatened by any
         Person (nor to any Borrower's knowledge, does any factual basis exist
         therefor) for, and none of the Borrowers have received written
         correspondence from any federal, state or local governmental authority
         with respect to:

                  (a) noncompliance by any Borrower with any Environmental Law;

                  (b) personal injury, wrongful death or other tortious conduct
         relating to materials, commodities or products used, generated, sold,
         transferred or manufactured by any Borrower (including products made
         of, containing or incorporating asbestos, lead or other hazardous
         materials, commodities or toxic substances); or

                  (c) the release into the environment by any Borrower of any
         Hazardous Material generated by any Borrower whether or not occurring
         at or on a site owned, leased or operated by any Borrower.

                                      -42-
<PAGE>   50

                  7.13.3. ENVIRONMENTAL CONDITION OF PROPERTIES. None of the
         properties owned or leased by any Borrower has been used as a
         treatment, storage or disposal site, other than as disclosed in Exhibit
         7.13. No Hazardous Material is present in any real property currently
         or formerly owned or operated by any Borrower except that which has not
         resulted, and does not create a material risk of resulting, in a
         Material Adverse Change.

         7.14. PENSION PLANS. Each Plan (other than a Multiemployer Plan) and,
to the knowledge of each of the Obligors, each Multiemployer Plan is in material
compliance with the applicable provisions of ERISA and the Code and with Section
6.13. Each Multiemployer Plan and each Plan that constitutes a "defined benefit
plan" (as defined in ERISA) are set forth in Exhibit 7.14. Each Control Group
Person has met all of the funding standards applicable to all Plans that are not
Multiemployer Plans, and no condition exists which would permit the institution
of proceedings to terminate any Plan that is not a Multiemployer Plan under
section 4042 of ERISA. To the best knowledge of each of the Obligors, no Plan
that is a Multiemployer Plan is currently insolvent or in reorganization or has
been terminated within the meaning of ERISA.

         7.15. ACQUISITION AGREEMENT, ETC. Each Acquisition Agreement is a valid
and binding contract as to the Borrower party thereto and, to the best of such
Borrower's knowledge, as to the Sellers party thereto. Such Borrower is not in
default in any material respect of its obligations under any Acquisition
Agreement and, to the best of such Borrower's knowledge, the Sellers party
thereto are not in default in any material respect of any of their obligations
thereunder. The representations and warranties of such Borrower set forth in
each Acquisition Agreement are true and correct in all material respect as of
the date hereof with the same force and effect as though made on and as of the
date hereof. To the best of such Borrower's knowledge all of the representations
and warranties of the Sellers set forth in each Acquisition Agreement are true
and correct in all material respects as of the date hereof with the same force
and effect as though made on and as of the date hereof.

         7.16. DISCLOSURE. Neither this Agreement nor any other Credit Document
to be furnished to the Lenders by or on behalf of any Obligor in connection with
the transactions contemplated hereby or by such Credit Document contains any
untrue statement of material fact or omits to state a material fact necessary in
order to make the statements contained herein or therein not misleading in light
of the circumstances under which they were made. No fact is actually known to
any Obligor which has resulted, or in the future (so far as any Obligor can
reasonably foresee) will result, or creates a material risk of resulting, in any
Material Adverse Change, except to the extent that present or future general
economic conditions may result in a Material Adverse Change.

8. Defaults.

         8.1. EVENTS OF DEFAULT. The following events are referred to as "EVENTS
OF DEFAULT":

                  8.1.1. PAYMENT. Any Borrower shall fail to make any payment in
         respect of: (a) interest or any fee on or in respect of any of the
         Credit Obligations owed by it as the same shall become due and payable,
         and such failure shall continue for a period of three Banking Days, (b)
         any Credit Obligation with respect to payments made by any Letter of
         Credit Issuer under any Letter of Credit or any draft drawn thereunder
         within three Banking Days after demand therefor by such Letter of
         Credit Issuer, or (c) principal of any of the Credit Obligations owed
         by it as the same shall become due, whether at maturity or by
         acceleration or otherwise.

                                      -43-
<PAGE>   51

                  8.1.2. SPECIFIED COVENANTS. Any Obligor shall fail to perform
         or observe any of the provisions of Section 6.4.5 or Sections 6.5
         through and including 6.16.

                  8.1.3. OTHER COVENANTS. Any Obligor shall fail to perform or
         observe any other covenant, agreement or provision to be performed or
         observed by it under this Agreement or any other Credit Document, and
         such failure shall not be rectified or cured to the written
         satisfaction of the Required Lenders within 30 days after notice
         thereof by the Agent to the Borrowers or (b) knowledge thereof by the
         Chief Executive Officer of Chief Financial Officer of the Company.

                  8.1.4. REPRESENTATIONS AND WARRANTIES. Any representation or
         warranty of or with respect to any Obligor made to the Lenders or the
         Agent in, pursuant to or in connection with this Agreement or any other
         Credit Document shall be materially false on the date as of which it
         was made.

                  8.1.5. CROSS DEFAULT. Any Obligor shall fail to make any
         payment when due (after giving effect to any applicable grace periods)
         in respect of any Indebtedness or of any Capitalized Lease (other than
         the Credit Obligations) outstanding in an aggregate amount of principal
         (whether or not due) of $250,000 or more or shall fail to perform or
         observe any material terms evidencing or securing any such Indebtedness
         or Capitalized Lease, the result of which failure is to permit the
         holder of such Indebtedness or Capitalized Lease to cause such
         Indebtedness or Capitalized Lease to become due before its stated
         maturity.

                  8.1.6. ENFORCEABILITY, ETC. Any Credit Document or any
         Material Agreement shall cease for any reason (other than the scheduled
         termination thereof in accordance with its terms) to be enforceable in
         accordance with its terms or in full force and effect; or any Obligor
         in respect of any Credit Document or any Material Agreement shall so
         assert in a judicial or similar proceeding; or the security interests
         created by this Agreement or any other Credit Documents shall cease to
         be enforceable and of the same effect and priority purported to be
         created hereby.

                  8.1.7. MEDICAID, ETC. Any of the Borrowers receives notice of
         exclusion from eligibility from Medicaid or any of the Borrowers or
         their officers, employees or agents engage in activities which are
         prohibited by any of the federal Medicare and Medicaid Anti-Kickback
         Statute, 42 U.S.C. ss. 1320a-7b, the Ethics in Patient Referrals Act
         (the "Stark Law") 42 U.S.C. ss. 1395 nn, as amended, the regulations
         promulgated thereunder, or related state or local statutes or
         regulations or which are prohibited by rules of professional conduct
         except where the failure to so comply could not result in a Material
         Adverse Effect.

                  8.1.8. CHANGE OF CONTROL. There shall be a change of control
         in the Company which may consist of either (a) a change within any six
         month period in the persons holding three or more of the following
         offices of the Company: President, Chief Operating Officer, Chief
         Financial Officer, General Counsel, or Vice President of Business
         Development; or (b) Dr. Roger J. Medel (i) ceasing at any time to serve
         as Chief Executive Officer of the Company or (ii) becoming physically
         or mentally disabled for six months or more (which may consist of more
         than one period of disability) such that he is unable to perform his
         normal administrative duties as President and Chief Executive Officer
         of the Company.

                  8.1.9. JUDGMENTS. A final judgment (a) which, with other
         outstanding final judgments against the Obligors, exceeds an aggregate
         of $500,000 in excess of applicable insurance coverage

                                      -44-
<PAGE>   52

         shall be rendered against any Obligor, or (b) which grants injunctive
         relief that results, or creates a material risk of resulting, in a
         Material Adverse Change and in either case if, (i) within 60 days after
         entry thereof, such judgment shall not have been discharged or
         execution thereof stayed pending appeal or (ii) within 60 days after
         the expiration of any such stay, such judgment shall not have been
         discharged.

                  8.1.10. ERISA. Any "reportable event" (as defined in section
         4043 of ERISA) shall have occurred that reasonably could be expected to
         result in termination of a Material Plan or the appointment by the
         appropriate United States District Court of a trustee to administer any
         Material Plan or the imposition of a Lien in favor of a Material Plan;
         or any ERISA Group Person shall fail to pay when due amounts
         aggregating in excess of $500,000 which it shall have become liable to
         pay to the PBGC or to a Material Plan under Title IV of ERISA; or
         notice of intent to terminate a Material Plan shall be filed under
         Title IV of ERISA by any ERISA Group Person or administrator; or the
         PBGC shall institute proceedings under Title IV of ERISA to terminate
         or to cause a trustee to be appointed to administer any Material Plan
         or a proceeding shall be instituted by a fiduciary of any Material Plan
         against any ERISA Group Person to enforce section 515 or 4219(c)(5) of
         ERISA and such proceeding shall not have been dismissed within 30 days
         thereafter; or a condition shall exist by reason of which the PBGC
         would be entitled to obtain a decree adjudicating that any Material
         Plan must be terminated.

                  8.1.11. BANKRUPTCY, ETC. Any Obligor shall:

                  (a) commence a voluntary case under the Bankruptcy Code or
         authorize, by appropriate proceedings of its board of directors or
         other governing body, the commencement of such a voluntary case;

                  (b) (i) have filed against it a petition commencing an
         involuntary case under the Bankruptcy Code that shall not have been
         dismissed within 60 days after the date on which such petition is
         filed, or (ii) file an answer or other pleading within such 60-day
         period admitting or failing to deny the material allegations of such a
         petition or seeking, consenting to or acquiescing in the relief therein
         provided, or (iii) have entered against it an order for relief in any
         involuntary case commenced under the Bankruptcy Code;

                  (c) seek relief as a debtor under any applicable law, other
         than the Bankruptcy Code, of any jurisdiction relating to the
         liquidation or reorganization of debtors or to the modification or
         alteration of the rights of creditors, or consent to or acquiesce in
         such relief;

                  (d) have entered against it an order by a court of competent
         jurisdiction (i) finding it to be bankrupt or insolvent, (ii) ordering
         or approving its liquidation or reorganization as a debtor or any
         modification or alteration of the rights of its creditors or (iii)
         assuming custody of, or appointing a receiver or other custodian for,
         all or a substantial portion of its property; or

                  (e) make an assignment for the benefit of, or enter into a
         composition with, its creditors, or appoint, or consent to the
         appointment of, or suffer to exist a receiver or other custodian for,
         all or a substantial portion of its property.

         8.2. CERTAIN ACTIONS FOLLOWING AN EVENT OF DEFAULT. If any one or more
Events of Default shall occur and be continuing, then in each and every such
case:

                                      -45-
<PAGE>   53

                  8.2.1. TERMINATE OBLIGATION TO EXTEND CREDIT. The Agent on
         behalf of the Lenders may (and upon written request of the Lenders
         holding at least one-third of the Percentage Interests the Agent shall)
         terminate the obligations of the Lenders to make any further extensions
         of credit under the Credit Documents by furnishing notice of such
         termination to the Borrowers.

                  8.2.2. SPECIFIC PERFORMANCE; EXERCISE OF RIGHTS. The Agent on
         behalf of the Lenders may (and upon written request of the Lenders
         holding at least one-third of the Percentage Interests the Agent shall)
         proceed to protect and enforce the Lenders' rights by suit in equity,
         action at law and/or other appropriate proceeding, either for specific
         performance of any covenant or condition contained in this Agreement or
         any other Credit Document or in any instrument or assignment delivered
         to the Lenders pursuant to this Agreement or any other Credit Document,
         or in aid of the exercise of any power granted in this Agreement or any
         other Credit Document or any such instrument or assignment.

                  8.2.3. ACCELERATION. The Agent on behalf of the Lenders may
         (and upon written request of the Lenders holding at least one-third of
         the Percentage Interests the Agent shall) by notice in writing to the
         Borrowers declare all or any part of the unpaid balance of the Credit
         Obligations then outstanding to be immediately due and payable, require
         the Borrower immediately to deposit with the Agent in cash an amount
         equal to the then Letter of Credit Exposure (which cash shall be held
         and applied as provided in Section 4.2), and thereupon such unpaid
         balance or part thereof and such amount equal to the Letter of Credit
         Exposure shall become so due and payable without presentation, protest
         or further demand or notice of any kind, all of which are hereby
         expressly waived; PROVIDED, HOWEVER, that if a Bankruptcy Default shall
         have occurred, the unpaid balance of the Credit Obligations shall
         automatically become immediately due and payable.

                  8.2.4. ENFORCEMENT OF PAYMENT. The Agent on behalf of the
         Lenders may (and upon written request of the Lenders holding at least
         one-third of the Percentage Interests the Agent shall) proceed to
         enforce payment of the Credit Obligations in such manner as it may
         elect to cancel, or instruct other Letter of Credit Issuers to cancel,
         any outstanding Letters of Credit which permit the cancellation
         thereof. The Lenders may offset and apply toward the payment of the
         Credit Obligations (and/or toward the curing of any Event of Default)
         any Indebtedness from the Lenders to the respective Obligors, including
         any Indebtedness represented by deposits in any account maintained with
         the Lenders, regardless of the adequacy of any security for the Credit
         Obligations. The Lenders shall have no duty to determine the adequacy
         of any such security in connection with any such offset.

                  8.2.5. CUMULATIVE REMEDIES. To the extent not prohibited by
         applicable law which cannot be waived, all of the Lenders' rights
         hereunder and under each other Credit Document shall be cumulative.

         8.3. ANNULMENT OF DEFAULTS. Any Default or Event of Default shall be
deemed not to exist or to have occurred for any purpose of the Credit Documents
if the Required Lenders or the Agent (with the consent of the Required Lenders)
shall have waived such Default or Event of Default in writing, stated in writing
that the same has been cured to such Lenders' reasonable satisfaction or entered
into an amendment to this Agreement which by its express terms cures such Event
of Default, at which time such Event of Default shall no longer be deemed to
exist or to have continued. No such action by the Lenders or the Agent shall
extend to or affect any subsequent Event of Default or impair any rights of the
Lenders upon the

                                      -46-
<PAGE>   54

occurrence thereof. The making of any extension of credit during the existence
of any Default or Event of Default shall not constitute a waiver thereof.

         8.4. WAIVERS. To the extent that such waiver is not prohibited by the
provisions of applicable law that cannot be waived, each of the Obligors waives:

                  (a) all presentments, demands for performance, notices of
         nonperformance (except to the extent required by this Agreement or any
         other Credit Document), protests, notices of protest and notices of
         dishonor;

                  (b) any requirement of diligence or promptness on the part of
         any Lender in the enforcement of its rights under this Agreement, the
         Revolving Notes, the Mortgage, the Mortgage Note or any other Credit
         Document;

                  (c) any and all notices of every kind and description which
         may be required to be given by any statute or rule of law; and

                  (d) any defense (other than indefeasible payment in full)
         which it may now or hereafter have with respect to its liability under
         this Agreement, the Revolving Notes, the Mortgage, the Mortgage Note or
         any other Credit Document or with respect to the Credit Obligations.

9. GUARANTEES.

         9.1. GUARANTEES OF CREDIT OBLIGATIONS. Each Guarantor unconditionally
jointly and severally guarantees that the Credit Obligations will be performed
and will be paid in full in immediately available funds when due and payable,
whether at the stated or accelerated maturity thereof or otherwise, this
guarantee being a guarantee of payment and not of collectability and being
absolute and in no way conditional or contingent. In the event any part of the
Credit Obligations shall not have been so paid in full when due and payable,
each Guarantor will, immediately upon notice by the Agent or, without notice,
immediately upon the occurrence of a Bankruptcy Default, pay or cause to be paid
to the Agent for the account of each Lender in accordance with the Lenders'
respective Percentage Interests the amount of such Credit Obligations which are
then due and payable and unpaid. The obligations of each Guarantor hereunder
shall not be affected by the invalidity, unenforceability or irrecoverability of
any of the Credit Obligations as against any other Obligor, any other guarantor
thereof or any other Person. For purposes hereof, the Credit Obligations shall
be due and payable when and as the same shall be due and payable under the terms
of this Agreement or any other Credit Document notwithstanding the fact that the
collection or enforcement thereof may be stayed or enjoined under the Bankruptcy
Code or other applicable law.

         9.2. CONTINUING OBLIGATION. Each Guarantor acknowledges that the
Lenders and the Agent have entered into this Agreement (and, to the extent that
the Lenders or the Agent may enter into any future Credit Document, will have
entered into such agreement) in reliance on this Section 9 being a continuing
irrevocable agreement, and such Guarantor agrees that its guarantee may not be
revoked in whole or in part. The obligations of the Guarantors hereunder shall
terminate when the commitment of the Lenders to extend credit under this
Agreement shall have terminated and all of the Credit Obligations have been
indefeasibly paid in full in immediately available funds and discharged;
PROVIDED, HOWEVER, that:

                  (a) if a claim is made upon the Lenders at any time for
         repayment or recovery of any amounts or any property received by the
         Lenders from any source on account of any of the Credit

                                      -47-
<PAGE>   55

         Obligations and the Lenders repay or return any amounts or property so
         received (including interest thereon to the extent required to be paid
         by the Lenders) or

                  (b) if the Lenders become liable for any part of such claim by
         reason of (i) any judgment or order of any court or administrative
         authority having competent jurisdiction, or (ii) any settlement or
         compromise of any such claim,

then the Guarantors shall remain liable under this Agreement for the amounts so
repaid or property so returned or the amounts for which the Lenders become
liable (such amounts being deemed part of the Credit Obligations) to the same
extent as if such amounts or property had never been received by the Lenders,
notwithstanding any termination hereof or the cancellation of any instrument or
agreement evidencing any of the Credit Obligations. Not later than five days
after receipt of notice from the Agent, the Guarantors shall jointly and
severally pay to the Agent an amount equal to the amount of such repayment or
return for which the Lenders have so become liable. Payments hereunder by a
Guarantor may be required by the Agent on any number of occasions.

         9.3. WAIVERS WITH RESPECT TO CREDIT OBLIGATIONS. Except to the extent
expressly required by this Agreement or any other Credit Document, each
Guarantor waives, to the fullest extent permitted by the provisions of
applicable law, all of the following (including all defenses, counterclaims and
other rights of any nature based upon any of the following):

                  (a) presentment, demand for payment and protest of nonpayment
         of any of the Credit Obligations, and notice of protest, dishonor or
         nonperformance;

                  (b) notice of acceptance of this guarantee and notice that
         credit has been extended in reliance on the Guarantor's guarantee of
         the Credit Obligations;

                  (c) notice of any Default or of any inability to enforce
         performance of the obligations of the Company or any other Person with
         respect to any Credit Document, or notice of any acceleration of
         maturity of any Credit Obligations;

                  (d) demand for performance or observance of, and any
         enforcement of any provision of, the Credit Obligations, this Agreement
         or any other Credit Document or any pursuit or exhaustion of rights or
         remedies with respect to any Credit Security or against the Company or
         any other Person in respect of the Credit Obligations or any
         requirement of diligence or promptness on the part of the Agent or the
         Lenders in connection with any of the foregoing;

                  (e) any act or omission on the part of the Agent or the
         Lenders which may impair or prejudice the rights of the Guarantor,
         including rights to obtain subrogation, exoneration, contribution,
         indemnification or any other reimbursement from the Company or any
         other Person, or otherwise operate as a deemed release or discharge;

                  (f) failure or delay to perfect or continue the perfection of
         any security interest in any Credit Security or any other action which
         harms or impairs the value of, or any failure to preserve or protect
         the value of, any Credit Security;

                                      -48-
<PAGE>   56

                  (g) any statute of limitations or any statute or rule of law
         which provides that the obligation of a surety must be neither larger
         in amount nor in other respects more burdensome than the obligation of
         the principal;

                  (h) any "single action" or "anti-deficiency" law which would
         otherwise prevent the Lenders from bringing any action, including any
         claim for a deficiency, against the Guarantor before or after the
         Agent's or the Lenders' commencement or completion of any foreclosure
         action, whether judicially, by exercise of power of sale or otherwise,
         or any other law which would otherwise require any election of remedies
         by the Agent or the Lenders;

                  (i) all demands and notices of every kind with respect to the
         foregoing; and

                  (j) to the extent not referred to above, all defenses (other
         than payment) which the Company may now or hereafter have to the
         payment of the Credit Obligations, together with all suretyship
         defenses, which could otherwise be asserted by such Guarantor.

Each Guarantor represents that it has obtained the advice of counsel as to the
extent to which suretyship and other defenses may be available to it with
respect to its obligations hereunder in the absence of the waivers contained in
this Section 9.3.

         No delay or omission on the part of the Agent or the Lenders in
exercising any right under this Agreement or any other Credit Document or under
any guarantee of the Credit Obligations or with respect to the Credit Security
shall operate as a waiver or relinquishment of such right. No action which the
Agent or the Lenders or the Company may take or refrain from taking with respect
to the Credit Obligations, including any amendments thereto or modifications
thereof or waivers with respect thereto, shall affect the provisions of this
Agreement or the obligations of the Guarantor hereunder. None of the Lenders' or
the Agent's rights shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of any Obligor, or by any noncompliance by the
Company with the terms, provisions and covenants of this Agreement, regardless
of any knowledge thereof which the Agent or the Lenders may have or otherwise be
charged with.

         9.4. LENDERS' POWER TO WAIVE, ETC. Each Guarantor grants to the Lenders
full power in their discretion, without notice to or consent of such Guarantor,
such notice and consent being expressly waived to the fullest extent permitted
by applicable law, and without in any way affecting the liability of the
Guarantor under its guarantee hereunder:

                  (a) To waive compliance with, and any Default under, and to
         consent to any amendment to or modification or termination of any terms
         or provisions of, or to give any waiver in respect of, this Agreement,
         any other Credit Document, the Credit Security, the Credit Obligations
         or any guarantee thereof (each as from time to time in effect);

                  (b) To grant any extensions of the Credit Obligations (for any
         duration), and any other indulgence with respect thereto, and to effect
         any total or partial release (by operation of law or otherwise),
         discharge, compromise or settlement with respect to the obligations of
         the Obligors or any other Person in respect of the Credit Obligations,
         whether or not rights against the Guarantor under this Agreement are
         reserved in connection therewith;

                                      -49-
<PAGE>   57

                  (c) To take security in any form for the Credit Obligations,
         and to consent to the addition to or the substitution, exchange,
         release or other disposition of, or to deal in any other manner with,
         any part of any property contained in the Credit Security whether or
         not the property, if any, received upon the exercise of such power
         shall be of a character or value the same as or different from the
         character or value of any property disposed of, and to obtain, modify
         or release any present or future guarantees of the Credit Obligations
         and to proceed against any of the Credit Security or such guarantees in
         any order;

                  (d) To collect or liquidate or realize upon any of the Credit
         Obligations or the Credit Security in any manner or to refrain from
         collecting or liquidating or realizing upon any of the Credit
         Obligations or the Credit Security; and

                  (e) To extend credit under this Agreement, any other Credit
         Document or otherwise in such amount as the Lenders may determine,
         including increasing the amount of credit and the interest rate and
         fees with respect thereto, even though the condition of the Obligors
         (financial or otherwise on an individual or Consolidated basis) may
         have deteriorated since the date hereof.

         9.5. INFORMATION REGARDING THE BORROWERS, ETC. Each Guarantor has made
such investigation as it deems desirable of the risks undertaken by it in
entering into this Agreement and is fully satisfied that it understands all such
risks. Each Guarantor waives any obligation which may now or hereafter exist on
the part of the Agent or the Lenders to inform it of the risks being undertaken
by entering into this Agreement or of any changes in such risks and, from and
after the date hereof, each Guarantor undertakes to keep itself informed of such
risks and any changes therein. Each Guarantor expressly waives any duty which
may now or hereafter exist on the part of the Agent or the Lenders to disclose
to the Guarantor any matter related to the business, operations, character,
collateral, credit, condition (financial or otherwise), income or prospects of
the Borrowers or their respective Affiliates or their properties or management,
whether now or hereafter known by the Agent or the Lenders. Each Guarantor
represents, warrants and agrees that it assumes sole responsibility for
obtaining from the Borrowers all information concerning this Agreement and all
other Credit Documents and all other information as to the Borrowers and their
respective Affiliates or their properties or management as such Guarantor deems
necessary or desirable.

         9.6. CERTAIN GUARANTOR REPRESENTATIONS. Each Guarantor represents that:

                  (a) it is in its best interest and in pursuit of the purposes
         for which it was organized as an integral part of the business
         conducted and proposed to be conducted by the Borrowers and their
         respective Subsidiaries, and reasonably necessary and convenient in
         connection with the conduct of the business conducted and proposed to
         be conducted by them, to induce the Lenders to enter into this
         Agreement and to extend credit to the Borrowers by making the
         Guarantees contemplated by this Section 9,

                  (b) the credit available hereunder will directly or indirectly
         inure to its benefit,

                  (c) by virtue of the foregoing it is receiving at least
         reasonably equivalent value from the Lenders for its Guarantee,

                  (d) it will not be rendered insolvent as a result of entering
         into this Agreement,

                                      -50-
<PAGE>   58

                  (e) after giving effect to the transactions contemplated by
         this Agreement, it will have assets having a fair saleable value in
         excess of the amount required to pay its probable liability on its
         existing debts as they become absolute and matured,

                  (f) it has, and will have, access to adequate capital for the
         conduct of its business,

                  (g) it has the ability to pay its debts from time to time
         incurred in connection with its business as such debts mature, and

                  (h) it has been advised by the Agent that the Lenders are
         unwilling to enter into this Agreement unless the Guarantees
         contemplated by this Section 9 are given by it.

         9.7. SUBROGATION. Each Guarantor agrees that, until the Credit
Obligations are paid in full, it will not exercise any right of reimbursement,
subrogation, contribution, offset or other claims against the other Obligors
arising by contract or operation of law in connection with any payment made or
required to be made by such Guarantor under this Agreement. After the payment in
full of the Credit Obligations, each Guarantor shall be entitled to exercise
against the Borrowers and the other Obligors all such rights of reimbursement,
subrogation, contribution and offset, and all such other claims, to the fullest
extent permitted by law.

         9.8. SUBORDINATION. Each Guarantor covenants and agrees that, after the
occurrence of an Event of Default, all Indebtedness, claims and liabilities then
or thereafter owing by the Borrowers or any other Obligor to such Guarantor
whether arising hereunder or otherwise are subordinated to the prior payment in
full of the Credit Obligations and are so subordinated as a claim against such
Obligor or any of its assets, whether such claim be in the ordinary course of
business or in the event of voluntary or involuntary liquidation, dissolution,
insolvency or bankruptcy, so that no payment with respect to any such
Indebtedness, claim or liability will be made or received while any Event of
Default exists.

         9.9. FUTURE SUBSIDIARIES; FURTHER ASSURANCES. Each Borrower will from
time to time cause (a) any present Wholly Owned Subsidiary that is not a
Guarantor within 30 days after notice from the Agent or (b) any future Wholly
Owned Subsidiary within 30 days after any such Person becomes a Wholly Owned
Subsidiary, to join this Agreement as a Borrower and a Guarantor pursuant to a
joinder agreement in the form attached hereto as Exhibit 5.3.2. Each Guarantor
will, promptly upon the request of the Agent from time to time, execute,
acknowledge and deliver, and file and record, all such instruments, and take all
such action, as the Agent deems necessary or advisable to carry out the intent
and purposes of this Section 9.

10. EXPENSES; INDEMNITY.

         10.1. EXPENSES. Whether or not the transactions contemplated hereby
shall be consummated, the Company will pay:

                  (a) all reasonable expenses of the Agent (including the
         out-of-pocket expenses related to forming the group of Lenders and
         reasonable fees and disbursements of the counsel to the Agent) in
         connection with the preparation and duplication of this Agreement, each
         other Credit Document, the transactions contemplated hereby and thereby
         and amendments, waivers, consents and other operations hereunder and
         thereunder;

                                      -51-
<PAGE>   59

                  (b) all recording and filing fees and transfer and documentary
         stamp and similar taxes at any time payable in respect of this
         Agreement, any other Credit Document, or the incurrence of the Credit
         Obligations; and

                  (c) to the extent not prohibited by applicable law that cannot
         be waived, after the occurrence and during the continuance of any
         Default or Event of Default, all other reasonable expenses incurred by
         the Lenders or the holder of any Credit Obligation in connection with
         the enforcement of any rights hereunder or under any other Credit
         Document, including costs of collection and reasonable attorneys' fees
         (including a reasonable allowance for the hourly cost of attorneys
         employed by the Lenders on a salaried basis) and expenses.

         10.2. GENERAL INDEMNITY. The Borrowers shall indemnify the Lenders and
the Agent and hold them harmless from any liability, loss or damage resulting
from the violation by the Company of Section 2.3. In addition, the Borrowers
shall indemnify each Lender, the Agent, each of the Lenders' or the Agent's
directors, officers and employees, and each Person, if any, who controls any
Lender or the Agent (each Lender, the Agent and each of such directors,
officers, employees and control Persons is referred to as an "INDEMNIFIED
PARTY") and hold each of them harmless from and against any and all claims,
damages, liabilities and reasonable expenses (including reasonable fees and
disbursements of counsel with whom any Indemnified Party may consult in
connection therewith and all reasonable expenses of litigation or preparation
therefor) which any Indemnified Party may incur or which may be asserted against
any Indemnified Party in connection with (a) the Indemnified Party's compliance
with or contest of any subpoena or other process issued against it in any
proceeding involving any of the Obligors or their Affiliates, (b) any litigation
or investigation involving the Obligors or their Affiliates, or any officer,
director or employee thereof, or (c) this Agreement, any other Credit Document
or any transaction contemplated hereby or thereby; PROVIDED, HOWEVER, that the
foregoing indemnity shall not apply to litigation commenced by any Borrower or
Obligor against the Lenders or the Agent which seeks enforcement of any of the
rights of such Borrower or Obligor hereunder or under any other Credit Document
and is determined adversely to the Lenders or the Agent in a final nonappealable
judgment or to the extent such claims, damages, liabilities and expenses result
from a Lender's or the Agent's gross negligence or willful misconduct.

         10.3. INDEMNITY WITH RESPECT TO LETTERS OF CREDIT. The Borrower shall
indemnify each Letter of Credit Issuer and its correspondents and hold each of
them harmless from and against any and all claims, losses, liabilities, damages
and reasonable expenses (including reasonable attorneys' fees) arising from or
in connection with any Letter of Credit, including any such claim, loss,
liability, damage or expense arising out of any transfer, sale, delivery,
surrender or endorsement of any invoice, bill of lading, warehouse receipt or
other document at any time held by the Agent, such Letter of Credit Issuer or
held for their respective accounts by any of their correspondents, in connection
with any Letter of Credit, except to the extent such claims, losses,
liabilities, damages and expenses result from gross negligence or willful
misconduct on the part of the Agent or any other Letter of Credit Issuer.

                                      -52-
<PAGE>   60
11. OPERATIONS; AGENT.

         11.1. INTERESTS IN CREDITS. The percentage interest of each Lender in
the Revolving Loan, the Letter of Credit Exposure and Mortgage Loan, and the
related Commitments, shall be computed based on the maximum principal amount for
each Lender as follows:

<TABLE>
<CAPTION>

                                                                Percentage
                                                                Interest of
                                     Maximum Principal         Revolving Loan                                  Percentage
                                    Amount of Revolving        and Letter of              Principal of     Interest of Mortage
                                           Loan               Credit Exposure             Mortgage Loan           Loan
                                    -------------------       ---------------             -------------    -------------------
<S>                                     <C>                      <C>                        <C>                    <C>
Fleet National Bank                     $37,500,000              50.00%                     $3,000,000             100%
Sun Trust                               $32,000,000              43.33%                             $0               0%
UBS AG, Stamford Branch                  $5,000,000               6.67%                             $0               0%
                                        -----------              -----                      ----------             ---
Total                                   $75,000,000                100%                     $3,000,000             100%
                                        ===========              =====                      ==========             ===

</TABLE>

The foregoing percentage interests, as from time to time in effect and reflected
in the Register, are referred to as the "PERCENTAGE INTERESTS" with respect to
all or any portion of the Loans, and the related Commitments.

         11.2. AGENT'S AUTHORITY TO ACT, ETC. Each of the Lenders appoints and
authorizes the Agent to act for the Lenders as the Lenders' Agent in connection
with the transactions contemplated by this Agreement and the other Credit
Documents on the terms set forth herein. In acting hereunder, the Agent is
acting for the account of the Agent to the extent of its Percentage Interest in
each Loan and for the account of each other Lender to the extent of the Lenders'
respective Percentage Interests, and all action in connection with the
enforcement of, or the exercise of any remedies (other than the Lenders' rights
of set-off as provided in Section 8.2.4 or in any Credit Document) in respect of
the Credit Obligations and Credit Documents shall be taken by the Agent.

         11.3. BORROWERS TO PAY AGENT, ETC. Each Obligor shall be fully
protected in making all payments in respect of the Credit Obligations to the
Agent, in relying upon consents, modifications and amendments executed by the
Agent purportedly on the Lenders' behalf, and in dealing with the Agent as
herein provided. The Agent may charge the accounts of the Borrowers, on the
dates when the amounts thereof become due and payable, with the amounts of the
principal of and interest on the Revolving Loan, any amounts paid by the Letter
of Credit Issuers to third parties under Letters of Credit or drafts presented
thereunder, principal and interest on the Mortgage Loan, commitment fees and all
other fees and amounts owing under any Credit Document.

         11.4. LENDER OPERATIONS FOR ADVANCES.

                  11.4.1. ADVANCES. On each Closing Date, each Lender shall
         advance to the Agent in immediately available funds such Lender's
         Percentage Interest in the portion of the Revolving Loan advanced on
         such Closing Date prior to 2:00 p.m. (Boston time). If such funds are
         not received at such time, but all applicable conditions set forth in
         Section 5 have been satisfied, each Lender authorizes and requests the
         Agent to advance for the Lender's account, pursuant to the terms
         hereof, the Lender's respective Percentage Interest in such portion of
         the Revolving Loan and agrees to reimburse the Agent in immediately
         available funds for the amount thereof prior to 3:00 p.m. (Boston time)
         on the day any portion of the Revolving Loan is advanced hereunder;
         PROVIDED, HOWEVER, that the Agent is not authorized to make any such
         advance for the account of any Lender who has previously notified the
         Agent in writing that such Lender will not be performing its
         obligations to make further advances hereunder; and PROVIDED, FURTHER,
         that the Agent shall be under no obligation to make any such advance.

                                      -53-
<PAGE>   61

                  11.4.2. LETTERS OF CREDIT. Each of the Lenders authorizes and
         requests each Letter of Credit Issuer to issue the Letters of Credit
         provided for in Section 2.2 and to grant each Lender a participation in
         each of such Letters of Credit in an amount equal to its Percentage
         Interest in the amount of each such Letter of Credit. Promptly upon the
         request of the Letter of Credit Issuer, each Lender shall reimburse the
         Letter of Credit Issuer in immediately available funds for such
         Lender's Percentage Interest in the amount of all obligations to third
         parties incurred by the Letter of Credit Issuer in respect of each
         Letter of Credit and each draft accepted under a Letter of Credit to
         the extent not reimbursed by the Borrower by 2:00 p.m. (Boston time) on
         the Banking Day when due. The Letter of Credit Issuer will notify each
         Lender of the issuance of any Letter of Credit, the amount and date of
         payment of any draft drawn or accepted under a Letter of Credit and
         whether in connection with the payment of any such draft the amount
         thereof was added to the Revolving Loan or was reimbursed by the
         Borrower.

                  11.4.3. AGENT TO ALLOCATE PAYMENTS, ETC. All payments of
         principal and interest in respect of the extensions of credit made
         pursuant to this Agreement, reimbursement of amounts paid by any Letter
         of Credit Issuer to third parties under Letters of Credit or drafts
         presented thereunder, commitment fees, Letter of Credit fees and other
         fees under this Agreement shall, as a matter of convenience, be made by
         the Borrowers and the Guarantors to the Agent in immediately available
         funds. The share of each Lender shall be credited to such Lender by the
         Agent in immediately available funds in such manner that the principal
         amount of the Credit Obligations to be paid shall be paid
         proportionately in accordance with the Lenders' respective Percentage
         Interests in such Credit Obligations, except as otherwise provided in
         this Agreement. Under no circumstances shall any Lender be required to
         produce or present its Revolving Notes as evidence of its interests in
         the Credit Obligations in any action or proceeding relating to the
         Credit Obligations.

                  11.4.4. DELINQUENT LENDERS; NONPERFORMING LENDERS. In the
         event that any Lender fails to reimburse the Agent pursuant to Section
         11.4.1 for the Percentage Interest of such Lender (a "DELINQUENT
         LENDER") in any credit advanced by the Agent pursuant hereto, overdue
         amounts (the "DELINQUENT PAYMENT") due from the Delinquent Lender to
         the Agent shall bear interest, payable by the Delinquent Lender on
         demand, at a per annum rate equal to (a) the Federal Funds Rate for the
         first three days overdue and (b) the sum of 2% PLUS the Federal Funds
         Rate for any longer period. Such interest shall be payable to the Agent
         for its own account for the period commencing on the date of the
         Delinquent Payment and ending on the date the Delinquent Lender
         reimburses the Agent on account of the Delinquent Payment (to the
         extent not paid by the Company as provided below) and the accrued
         interest thereon (the "DELINQUENCY PERIOD"), whether pursuant to the
         assignments referred to below or otherwise. Upon notice by the Agent,
         the Borrowers will pay to the Agent the principal (but not the
         interest) portion of the Delinquent Payment. During the Delinquency
         Period, in order to make reimbursements for the Delinquent Payment and
         accrued interest thereon, the Delinquent Lender shall be deemed to have
         assigned to the Agent all interest, commitment fees and other payments
         made by the Borrowers under Section 3 that would have thereafter
         otherwise been payable under the Credit Documents to the Delinquent
         Lender. During any other period in which any Lender is not performing
         its obligations to extend credit under Section 2 (a "NONPERFORMING
         LENDER"), the Nonperforming Lender shall be deemed to have assigned to
         each Lender that is not a Nonperforming Lender (a "PERFORMING LENDER")
         all principal and other payments made by the Borrowers under Section 4
         that would have thereafter otherwise been payable under the Credit
         Documents to the Non performing Lender. The Agent shall credit a
         portion of such payments to each Performing Lender in an amount equal
         to the Percentage Interest of such Performing Lender in an

                                      -54-
<PAGE>   62

         amount equal to the Percentage Interest of such Performing Lender
         divided by one MINUS the Percentage Interest of the Nonperforming
         Lender until the respective portions of the Revolving Loan owed to all
         the Lenders are the same as the Percentage Interests of the Lenders
         immediately prior to the failure of the Nonperforming Lender to perform
         its obligations under Section 2. The foregoing provisions shall be in
         addition to any other remedies the Agent, the Performing Lenders or the
         Borrowers may have under law or equity against the Delinquent Lender as
         a result of the Delinquent Payment or against the Nonperforming Lender
         as a result of its failure to perform its obligations under Section 2.

         11.5. SHARING OF PAYMENTS, ETC. Each Lender agrees that (a) if by
exercising any right of set-off or counterclaim or otherwise, it shall receive
payment of (i) a proportion of the aggregate amount due with respect to its
Percentage Interest in the Revolving Loan and Letter of Credit Exposure which is
greater than (ii) the proportion received by any other Lender in respect of the
aggregate amount due with respect to such other Lender's Percentage Interest in
the Revolving Loan and Letter of Credit Exposure and (b) if such inequality
shall continue for more than 10 days, the Lender receiving such proportionately
greater payment shall purchase participations in the Percentage Interests in the
Revolving Loan and Letter of Credit Exposure held by the other Lenders, and such
other adjustments shall be made from time to time (including rescission of such
purchases of participations in the event the unequal payment originally received
is recovered from such Lender through bankruptcy proceedings or otherwise), as
may be required so that all such payments of principal and interest with respect
to the Revolving Loan and Letter of Credit Exposure held by the Lenders shall be
shared by the Lenders pro rata in accordance with their respective Percentage
Interests in the Revolving Loan; PROVIDED, HOWEVER, that this Section 11.5 shall
not impair the right of any Lender to exercise any right of set-off or
counterclaim it may have and to apply the amount subject to such exercise to the
payment of Indebtedness of any Obligor other than such Obligor's Indebtedness
with respect to the Revolving Loan and Letter of Credit Exposure. Each Lender
that grants a participation in the Credit Obligations to a Credit Participant
shall require as a condition to the granting of such participation that such
Credit Participant agree to share payments received in respect of the Credit
Obligations as provided in this Section 11.5. The provisions of this Section
11.5 are for the sole and exclusive benefit of the Lenders and no failure of any
Lender to comply with the terms hereof shall be available to any Obligor as a
defense to the payment of the Credit Obligations.

         11.6. AMENDMENTS, CONSENTS, WAIVERS, ETC. Except as otherwise set forth
herein, the Agent may (and upon the written request of the Required Lenders the
Agent shall) take or refrain from taking any action under this Agreement or any
other Credit Document, including giving its written consent to any modification
of or amendment to and waiving in writing compliance with any covenant or
condition in this Agreement or any other Credit Document or any Default or Event
of Default, all of which actions shall be binding upon all of the Lenders;
PROVIDED, HOWEVER, that:

                  (a) Without the written consent of Lenders owning at least two
         thirds of the Percentage Interests (other than Delinquent Lenders
         during the existence of a Delinquency Period so long as such Delinquent
         Lender is treated the same as the other Lenders with respect to any
         actions enumerated below), no written modification of, amendment to,
         consent with respect to, waiver of compliance with or waiver of a
         Default under any of the Credit Documents, or under Sections 6.5
         through 6.16, the related defined terms or this Section 11.6 shall be
         made.

                  (b) Without the written consent of such Lenders as own 100% of
         the Percentage Interests in the Revolving Loan (other than Delinquent
         Lenders during the existence of a Delinquency Period

                                      -55-
<PAGE>   63

         so long as such Delinquent Lender is treated the same as the other
         Lenders with respect to any actions enumerated below):

                  (c) Without the written consent of a Letter of Credit Issuer,
         no amendment of modification of any Credit Document shall affect the
         rights or duties of such Letter of Credit Issuer under the Credit
         Documents.

         11.7. AGENT'S RESIGNATION. The Agent may resign at any time by giving
at least 60 days' prior written notice of its intention to do so to each other
of the Lenders and the Borrowers. In such event, SunTrust Bank shall be
appointed successor Agent and shall accept such appointment within 45 days after
the retiring Agent's giving of such notice of resignation. In connection with
the appointment of a successor Agent, the Borrower's shall deliver to the Agent
a processing and recordation fee of $3,000. Upon the appointment of a new Agent
hereunder, the term "Agent" shall for all purposes of this Agreement thereafter
mean such successor. After any retiring Agent's resignation hereunder as Agent,
the provisions of this Agreement shall continue to inure to the benefit of such
Agent as to any actions taken or omitted to be taken by it while it was Agent
under this Agreement.

         11.8. CONCERNING THE AGENT.

                  11.8.1. ACTION IN GOOD FAITH, ETC. The Agent and its officers,
         directors, employees and agents shall be under no liability to any of
         the Lenders or to any future holder of any interest in the Credit
         Obligations for any action or failure to act taken or suffered in good
         faith, and any action or failure to act in accordance with an opinion
         of its counsel shall conclusively be deemed to be in good faith. The
         Agent shall in all cases be entitled to rely, and shall be fully
         protected in relying, on instructions given to the Agent by the
         required holders of Credit Obligations as provided in this Agreement.

                  11.8.2. NO IMPLIED DUTIES, ETC. The Agent shall have and may
         exercise such powers as are specifically delegated to the Agent under
         this Agreement or any other Credit Document together with all other
         powers incidental thereto. The Agent shall have no implied duties to
         any Person or any obligation to take any action under this Agreement or
         any other Credit Document except for action specifically provided for
         in this Agreement or any other Credit Document to be taken by the
         Agent. Before taking any action under this Agreement or any other
         Credit Document, the Agent may request an appropriate specific
         indemnity satisfactory to it from each Lender in addition to the
         general indemnity provided for in Section 11.11. Until the Agent has
         received such specific indemnity, the Agent shall not be obligated to
         take (although it may in its sole discretion take) any such action
         under this Agreement or any other Credit Document. Each Lender confirms
         that the Agent does not have a fiduciary relationship to it under the
         Credit Documents. Each of the Obligors party hereto confirms that
         neither the Agent nor any other Lender has a fiduciary relationship to
         it under the Credit Documents.

                  11.8.3. VALIDITY, ETC. The Agent shall not be responsible to
         any Lender or any future holder of any interest in the Credit
         Obligations (a) for the legality, validity, enforceability or
         effectiveness of this Agreement or any other Credit Document, (b) for
         any recitals, reports, representations, warranties or statements
         contained in or made in connection with this Agreement or any other
         Credit Document, (c) for the existence or value of any assets included
         in any security for the Credit Obligations, or (d) for the
         effectiveness of any Lien purported to be included in any security for
         the Credit Obligations.

                                      -56-
<PAGE>   64

                  11.8.4. COMPLIANCE. The Agent shall not be obligated to
         ascertain or inquire as to the performance or observance of any of the
         terms of this Agreement or any other Credit Document; and in connection
         with any extension of credit under this Agreement or any other Credit
         Document, the Agent shall be fully protected in relying on a
         certificate of the Borrowers as to the fulfillment by the Borrowers of
         any conditions to such extension of credit.

                  11.8.5. EMPLOYMENT OF AGENTS AND COUNSEL. The Agent may
         execute any of its duties as Agent under this Agreement or any other
         Credit Document by or through employees, agents and attorneys-in-fact
         and shall not be responsible to any of the Lenders, any Borrower or any
         other Obligor for the default or misconduct of any such agents or
         attorneys-in-fact selected by the Agent acting in good faith. The Agent
         shall be entitled to advice of counsel concerning all matters
         pertaining to the agency hereby created and its duties hereunder or
         under any other Credit Document.

                  11.8.6. RELIANCE ON DOCUMENTS AND COUNSEL. The Agent shall be
         entitled to rely, and shall be fully protected in relying, upon any
         affidavit, certificate, cablegram, consent, instrument, letter, notice,
         order, document, statement, telecopy, telegram, telex or teletype
         message or writing reasonably believed in good faith by the Agent to be
         genuine and correct and to have been signed, sent or made by the Person
         in question, including any telephonic or oral statement made by such
         Person, and, with respect to legal matters, upon an opinion or the
         advice of counsel selected by the Agent.

                  11.8.7. AGENT'S REIMBURSEMENT. Each of the Lenders severally
         agrees to reimburse the Agent, in the amount of such Lender's
         Percentage Interest, for any reasonable expenses not reimbursed by the
         Borrowers or the Guarantors (without limiting the obligation of the
         Borrowers or the Guarantors to make such reimbursement): (a) for which
         the Agent is entitled to reimbursement by the Borrowers or the
         Guarantors under this Agreement or any other Credit Document, and (b)
         after the occurrence of a Default, for any other reasonable expenses
         incurred by the Agent on the Lenders' behalf in connection with the
         enforcement of the Lenders' rights under this Agreement or any other
         Credit Document.

         11.9. RIGHTS AS A LENDER. With respect to any credit extended by it
hereunder, the Agent shall have the same rights, obligations and powers
hereunder as any other Lender and may exercise such rights and powers as though
it were not the Agent, and unless the context otherwise specifies, the Agent
shall be treated in its individual capacity as though it were not the Agent
hereunder. Without limiting the generality of the foregoing, the Percentage
Interest of the Agent shall be included in any computations of Percentage
Interests. The Agent and its Affiliates may accept deposits from, lend money to,
act as trustee for and generally engage in any kind of banking or trust business
with any Borrower, any of their respective Subsidiaries or any Affiliate of any
of them and any Person who may do business with or own an equity interest in any
Borrower, any of their respective Subsidiaries or any Affiliate of any of them,
all as if the Agent were not the Agent and without any duty to account therefor
to the other Lenders.

         11.10. INDEPENDENT CREDIT DECISION. Each of the Lenders acknowledges
that it has independently and without reliance upon the Agent, based on the
financial statements and other documents referred to in Section 7.2, on the
other representations and warranties contained herein and on such other
information with respect to the Obligors as such Lender deemed appropriate, made
such Lender's own credit analysis and decision to enter into this Agreement and
to make the extensions of credit provided for hereunder. Each Lender represents
to the Agent that such Lender will continue to make its own independent credit
and other

                                      -57-
<PAGE>   65

decisions in taking or not taking action under this Agreement or any other
Credit Document. Each Lender expressly acknowledges that neither the Agent nor
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates has made any representations or warranties to such Lender, and no act
by the Agent taken under this Agreement or any other Credit Document, including
any review of the affairs of the Obligors, shall be deemed to constitute any
representation or warranty by the Agent. Except for notices, reports and other
documents expressly required to be furnished to each Lender by the Agent under
this Agreement or any other Credit Document, the Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition, financial or
otherwise, or creditworthiness of any Obligor which may come into the possession
of the Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

         11.11. INDEMNIFICATION. The holders of the Credit Obligations shall
indemnify the Agent and its officers, directors, employees and agents (to the
extent not reimbursed by the Obligors and without limiting the obligation of any
of the Obligors to do so), pro rata in accordance with their respective
Percentage Interests, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time be imposed on,
incurred by or asserted against the Agent or such Persons relating to or arising
out of this Agreement, any other Credit Document, the transactions contemplated
hereby or thereby, or any action taken or omitted by the Agent in connection
with any of the foregoing; PROVIDED, HOWEVER, that the foregoing shall not
extend to actions or omissions which are taken by the Agent with gross
negligence or willful misconduct.

12. SUCCESSORS AND ASSIGNS; LENDER ASSIGNMENTS AND PARTICIPATIONS. Any reference
in this Agreement to any of the parties hereto shall be deemed to include the
successors and assigns of such party, and all covenants and agreements by or on
behalf of the Obligors, the Guarantors, the Agent or the Lenders that are
contained in this Agreement or any other Credit Documents shall bind and inure
to the benefit of their respective successors and assigns; provided, however,
that (a) the Obligors may not assign their rights or obligations under this
Agreement except for mergers or liquidations permitted by Section 6.12, and (b)
the Lenders shall be not entitled to assign their respective Percentage
Interests in the Revolving Loan hereunder except as set forth below in this
Section 12.

         12.1. ASSIGNMENTS BY LENDERS.

                  12.1.1. ASSIGNEES AND ASSIGNMENT PROCEDURES. Each Lender may
         (a) without the consent of the Agent or the Company if the proposed
         assignee is already a Lender hereunder or a Wholly Owned Subsidiary of
         the same corporate parent of which the assigning Lender is a Related
         Entity, or (b) otherwise with the consents of the Agent and (so long as
         no Event of Default has occurred and is continuing) the Company (which
         consents will not be unreasonably withheld), in compliance with
         applicable laws in connection with such assignment, assign to one or
         more commercial banks or other financial institutions (each, an
         "ASSIGNEE") all or a portion of its interests, rights and obligations
         under this Agreement and the other Credit Documents, including all or a
         portion, which need not be pro rata between the Revolving Loan, the
         Letter of Credit Exposure and the Mortgage Loan, of its Commitment, the
         portion of the Revolving Loan, the Letter of Credit Exposure and
         Mortgage Loan at the time owing to it and the Revolving Notes held by
         it but excluding its rights and obligations as a Letter of Credit
         Issuer; provided, however, that:

                  12.1.2. TERMS OF ASSIGNMENT AND ACCEPTANCE. By executing and
         delivering an Assignment and Acceptance, the assigning Lender and
         Assignee shall be deemed to confirm to and agree with each other and
         the other parties hereto as follows:

                                      -58-
<PAGE>   66

                  (a) other than the representation and warranty that it is the
         legal and beneficial owner of the interest being assigned thereby free
         and clear of any adverse claim, such assigning Lender makes no
         representation or warranty and assumes no responsibility with respect
         to any statements, warranties or representations made in or in
         connection with this Agreement or the execution, legality, validity,
         enforceability, genuineness, sufficiency or value of this Agreement,
         any other Credit Document or any other instrument or document furnished
         pursuant hereto;

                  (b) such assigning Lender makes no representation or warranty
         and assumes no responsibility with respect to the financial condition
         of the Obligors or the performance or observance by any Obligor of any
         of its obligations under this Agreement, any other Credit Document or
         any other instrument or document furnished pursuant hereto;

                  (c) such Assignee confirms that it has received a copy of this
         Agreement, together with copies of the most recent financial statements
         delivered pursuant to Section 7.2 or Section 6.4 and such other
         documents and information as it has deemed appropriate to make its own
         credit analysis and decision to enter into such Assignment and
         Acceptance;

                  (d) such Assignee will independently and without reliance upon
         the Agent, such assigning Lender or any other Lender, and based on such
         documents and information as it shall deem appropriate at the time,
         continue to make its own credit decisions in taking or not taking
         action under this Agreement;

                  (e) such Assignee appoints and authorizes the Agent to take
         such action as agent on its behalf and to exercise such powers under
         this Agreement as are delegated to the Agent by the terms hereof,
         together with such powers as are reasonably incidental thereto; and

                  (f) such Assignee agrees that it will perform in accordance
         with the terms of this Agreement all the obligations which are required
         to be performed by it as a Lender.

                  12.1.3. REGISTER. The Agent shall maintain at the Boston
         Office a register (the "REGISTER") for the recordation of (a) the names
         and addresses of the Lenders and the Assignees which assume rights and
         obligations pursuant to an assignment under Section 12.1.1, (b) the
         Percentage Interest of each such Lender as set forth in Section 11.1
         and (c) the amount of the Revolving Loan, the Letter of Credit Exposure
         and Mortgage Loan owing to each Lender from time to time. The entries
         in the Register shall be conclusive, in the absence of manifest error,
         and the Borrowers, the Agent and the Lenders may treat each Person
         whose name is registered therein for all purposes as a party to this
         Agreement. The Register shall be available for inspection by any
         Borrower or any Lender at any reasonable time and from time to time
         upon reasonable prior notice.

                  12.1.4. ACCEPTANCE OF ASSIGNMENT AND ASSUMPTION. Upon its
         receipt of a completed Assignment and Acceptance executed by an
         assigning Lender and an Assignee together with the Revolving Notes
         subject to such assignment, and the processing and recordation fee
         referred to in Section 12.1.1, the Agent shall (a) accept such
         Assignment and Acceptance, (b) record the information contained therein
         in the Register and (c) give prompt notice thereof to the Borrower.
         Within five Banking Days after receipt of notice, the Borrowers, at
         their own expense, shall execute and deliver to the Agent, in exchange
         for the surrendered Revolving Notes, new Revolving Notes to the order
         of such Assignee in a principal amount equal to the applicable
         Commitment and Revolving Loan assumed by it pursuant to such Assignment
         and Acceptance and, if the assigning Lender has

                                      -59-
<PAGE>   67

         retained a Commitment and Revolving Loan, new Revolving Notes to the
         order of such assigning Lender in a principal amount equal to the
         applicable Commitment and Revolving Loan retained by it. Such new
         Revolving Notes shall be in an aggregate principal amount equal to the
         aggregate principal amount of such surrendered Revolving Notes,
         respectively, and shall be dated the date of the surrendered Revolving
         Notes which they replaces.

                  12.1.5. FEDERAL RESERVE BANK. Notwithstanding the foregoing
         provisions of this Section 12, any Lender may at any time pledge or
         assign all or any portion of such Lender's rights under this Agreement
         and the other Credit Documents to a Federal Reserve Bank; PROVIDED,
         HOWEVER, that no such pledge or assignment shall release such Lender
         from such Lender's obligations hereunder or under any other Credit
         Document.

                  12.1.6. FURTHER ASSURANCES. The Obligors shall sign such
         documents and take such other actions from time to time reasonably
         requested by an Assignee to enable it to share in the benefits of the
         rights created by the Credit Documents.

         12.2. CREDIT PARTICIPANTS. Each Lender may, without the consent of the
Borrowers or the Agent, in compliance with applicable laws in connection with
such participation, sell to one or more commercial banks or other financial
institutions (each a "CREDIT PARTICIPANT") participations in all or a portion of
its interests, rights and obligations under this Agreement and the other Credit
Documents (including all or a portion of its Commitment, the Revolving Loan, the
Letter of Credit Exposure and the Revolving Note held by it); PROVIDED, HOWEVER,
that:

                  (a) such Lender's obligations under this Agreement shall
         remain unchanged;

                  (b) such Lender shall remain solely responsible to the other
         parties hereto for the performance of such obligations;

                  (c) the Credit Participant shall be entitled to the benefit of
         the cost protection provisions contained in Sections 3.2.4, 3.6, 3.7,
         3.8, 3.9 and 10, but shall not be entitled to receive any greater
         payment thereunder than the selling Lender would have been entitled to
         receive with respect to the interest so sold if such interest had not
         been sold; and

                  (d) the Borrowers, the 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 Agreement, and
         such Lender shall retain the sole right as one of the Lenders to vote
         with respect to the enforcement of the obligations of the Borrowers
         relating to the Revolving Loan, the Letter of Credit Exposure and the
         approval of any amendment, modification or waiver of any provision of
         this Agreement (other than amendments, modifications, consents or
         waivers described in clause (b) of the proviso to Section 11.6).

Each Obligor agrees, to the fullest extent permitted by applicable law, that any
Credit Participant and any Lender purchasing a participation from another Lender
pursuant to Section 11.5 may exercise all rights of payment (including the right
of set-off), with respect to its participation as fully as if such Credit
Participant or such Lender were the direct creditor of the Obligors and a Lender
hereunder in the amount of such participation.

                                      -60-
<PAGE>   68

         12.3. REPLACEMENT OF LENDER. In the event that any Lender or, to the
extent applicable, any Credit Participant (the "AFFECTED LENDER"):

                  (a) fails to perform its obligations to fund any portion of
         the Revolving Loan or to issue any Letter of Credit on any Closing Date
         when required to do so by the terms of the Credit Documents, or fails
         to provide its portion of any Eurodollar Pricing Option pursuant to
         Section 3.2.1 or on account of a Legal Requirement as contemplated by
         Section 3.2.5;

                  (b) demands payment under the Reserve provisions of Section
         3.5, the Tax provisions of Section 3.6, the capital adequacy provisions
         of Section 3.7 or the regulatory change provisions in Section 3.8 in an
         amount the Company deems materially in excess of the amounts with
         respect thereto demanded by the other Lenders; or

                  (c) refuses to consent to a proposed amendment, modification,
         waiver or other action requiring consent of the holders of 100% of the
         Percentage Interests under Section 11.6(b) that is consented to by the
         other Lenders;

then, so long as no Event of Default exists and is continuing, the Borrowers
shall have the right to seek a replacement lender which is reasonably
satisfactory to the Agent (the "REPLACEMENT LENDER"). The Replacement Lender
shall purchase the interests of the Affected Lender in the Revolving Loan,
Letters of Credit and its Commitment and shall assume the obligations of the
Affected Lender hereunder and under the other Credit Documents upon execution by
the Replacement Lender of an Assignment and Acceptance and the tender by it to
the Affected Lender of a purchase price agreed between it and the Affected
Lender (or, if they are unable to agree, a purchase price in the amount of the
Affected Lenders' Percentage Interest in the Revolving Loan plus the amount of
all other outstanding Credit Obligations including all accrued and unpaid Credit
Obligations then owed to the Affected Lender). Such assignment by the Affected
Lender shall be deemed an early termination of any Eurodollar Pricing Option to
the extent of the Affected Lender's portion thereof, and the Borrowers will pay
to the Affected Lender any resulting amounts due under Section 3.2.4. Upon
consummation of such assignment, the Replacement Lender shall become party to
this Agreement as a signatory hereto and shall have all the rights and
obligations of the Affected Lender under this Agreement and the other Credit
Documents with a Percentage Interest equal to the Percentage Interest of the
Affected Lender, the Affected Lender shall be released from its obligations
hereunder and under the other Credit Documents, and no further consent or action
by any party shall be required. Upon the consummation of such assignment, the
Borrowers, the Agent and the Affected Lender shall make appropriate arrangements
so that a new Revolving Note is issued to the Replacement Lender if it has
acquired a portion of the Revolving Loan. The Borrowers and the Guarantors shall
sign such documents and take such other actions reasonably requested by the
Replacement Lender to enable it to share in the benefits of the rights created
by the Credit Documents. Until the consummation of an assignment in accordance
with the foregoing provisions of this Section 12.3, the Borrowers shall continue
to pay to the Affected Lender any Credit Obligations as they become due and
payable.

13. NOTICES. Except as otherwise specified in this Agreement, any notice
required to be given pursuant to this Agreement shall be given in writing. Any
notice, consent, approval, demand or other communication in connection with this
Agreement shall be deemed to be given if given in writing (including telex,
telecopy or similar teletransmission) addressed as provided below (or to the
addressee at such other address as the addressee shall have specified by notice
actually received by the addressor), and if either (a) actually delivered in
fully legible form to such address (evidenced in the case of a telex by receipt
of the correct answerback) or (b) in the case of a letter, unless actual receipt
of the notice is required by any Credit

                                      -61-
<PAGE>   69

Document five days shall have elapsed after the same shall have been deposited
in the United States mails, with first-class postage prepaid and registered or
certified.

         If to any of the Borrowers or any of their respective Subsidiaries, to
them at their address set forth in Exhibit 7.1 (as supplemented pursuant to
Sections 6.4.1 and 6.4.2), to the attention of the chief financial officer.

         If to any Lender or the Agent, to it at its address set forth on the
signature pages of this Agreement or in the Register, with a copy to the Agent.

14. COURSE OF DEALING; AMENDMENTS AND WAIVERS. No course of dealing between any
Lender or the Agent, on one hand, and the Borrowers or any other Obligor, on the
other hand, shall operate as a waiver of any of the Lenders' or the Agent's
rights under this Agreement or any other Credit Document or with respect to the
Credit Obligations. Each of the Borrowers and the Guarantors acknowledges that
if the Lenders or the Agent, without being required to do so by this Agreement
or any other Credit Document, give any notice or information to, or obtain any
consent from, any Borrower or any other Obligor, the Lenders and the Agent shall
not by implication have amended, waived or modified any provision of this
Agreement or any other Credit Document, or created any duty to give any such
notice or information or to obtain any such consent on any future occasion. No
delay or omission on the part of any Lender of the Agent in exercising any right
under this Agreement or any other Credit Document or with respect to the Credit
Obligations shall operate as a waiver of such right or any other right hereunder
or thereunder. A waiver on any one occasion shall not be construed as a bar to
or waiver of any right or remedy on any future occasion. No waiver, consent or
amendment with respect to this Agreement or any other Credit Document shall be
binding unless it is in writing and signed by the Agent or the Required Lenders.

15. DEFEASANCE. When all Credit Obligations have been paid, performed and
reasonably determined by the Lenders to have been indefeasibly discharged in
full, and if at the time no Lender continues to be committed to extend any
credit to the Borrowers hereunder or under any other Credit Document, this
Agreement shall terminate and, at the Borrowers' written request, accompanied by
such certificates and other items as the Agent shall reasonably deem necessary,
the Credit Security shall revert to the Obligors and the right, title and
interest of the Lenders therein shall terminate. Thereupon, on the Obligor's
demand and at their cost and expense, the Agent shall execute proper
instruments, acknowledging satisfaction of and discharging this Agreement, and
shall redeliver to the Obligors any Credit Security then in its possession;
provided, however, that Sections 3.2.4, 3.5, 3.6, 3.7, 3.8, 10 and 11.8.7 shall
survive the termination of this Agreement.

16. VENUE; SERVICE OF PROCESS. Each of the Borrowers and the other Obligors:

                  (a) Irrevocably submits to the nonexclusive jurisdiction of
         the state courts of The Commonwealth of Massachusetts and to the
         nonexclusive jurisdiction of the United States District Court for the
         District of Massachusetts for the purpose of any suit, action or other
         proceeding arising out of or based upon this Agreement or any other
         Credit Document or the subject matter hereof or thereof.

                  (b) Waives to the extent not prohibited by applicable law that
         cannot be waived, and agrees not to assert, by way of motion, as a
         defense or otherwise, in any such proceeding brought in any of the
         above-named courts, any claim that it is not subject personally to the
         jurisdiction of such court, that its property is exempt or immune from
         attachment or execution, that such proceeding is

                                      -62-
<PAGE>   70

         brought in an inconvenient forum, that the venue of such proceeding is
         improper, or that this Agreement or any other Credit Document, or the
         subject matter hereof or thereof, may not be enforced in or by such
         court.

Each of the Borrowers and the other Obligors consents to service of process in
any such proceeding in any manner at the time permitted by Chapter 223A of the
General Laws of The Commonwealth of Massachusetts and agrees that service of
process by registered or certified mail, return receipt requested, at its
address specified in or pursuant to Section 16 is reasonably calculated to give
actual notice.

17. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT
CANNOT BE WAIVED, EACH OF THE BORROWERS, THE OTHER OBLIGORS, THE AGENT AND THE
LENDERS WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR ANY CREDIT OBLIGATION OR IN
ANY WAY CONNECTED WITH THE DEALINGS OF THE LENDERS, THE AGENT, THE BORROWERS OR
ANY OTHER OBLIGOR IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR OTHERWISE. Each
of the Borrowers and the other Obligors acknowledges that it has been informed
by the Agent that the provisions of this Section 17 constitute a material
inducement upon which each of the Lenders has relied and will rely in entering
into this Agreement and any other Credit Document, and that it has reviewed the
provisions of this Section 17 with its counsel. Any Lender, the Agent, any
Borrower or any other Obligor may file an original counterpart or a copy of this
Section 17 with any court as written evidence of the consent of the Borrowers,
the other Obligors, the Agent and the Lenders to the waiver of their rights to
trial by jury.

18. GENERAL. All covenants, agreements, representations and warranties made in
this Agreement or any other Credit Document or in certificates delivered
pursuant hereto or thereto shall be deemed to have been relied on by each
Lender, notwithstanding any investigation made by any Lender on its behalf, and
shall survive the execution and delivery to the Lenders hereof and thereof. The
invalidity or unenforceability of any provision hereof shall not affect the
validity or enforceability of any other provision hereof. The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. This Agreement and the other Credit Documents
(including any related fee agreements with the Agent or the Lenders) constitute
the entire understanding of the parties with respect to the subject matter
hereof and thereof and supersede all prior and contemporaneous understandings
and agreements, whether written or oral. This Agreement may be executed in any
number of counterparts which together shall constitute one instrument. This
Agreement shall be governed by and construed in accordance with the laws (other
than the conflict of laws rules) of The Commonwealth of Massachusetts.

                                      -63-
<PAGE>   71

         Each of the undersigned has caused this Agreement to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first above written.

                                      PEDIATRIX MEDICAL GROUP, INC. (FL)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Chief Financial Officer

                                      PEDIATRIX MEDICAL GROUP OF FLORIDA, INC.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP, P.C. (WV)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP, P.C. (VA)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP, S.P. (PR)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP, P.A. (NJ)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP OF KANSAS, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP NEONATOLOGY
                                        AND PEDIATRIC INTENSIVE CARE SPECIALISTS
                                        OF NEW YORK, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      -64-
<PAGE>   72
                                      PEDIATRIX MEDICAL GROUP OF
                                        CALIFORNIA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF ILLINOIS, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF MICHIGAN, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP OF
                                        PENNSYLVANIA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF TEXAS, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF OHIO, CORP.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Secretary

                                      NEONATAL SPECIALISTS, LTD. (AZ)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF
                                       COLORADO, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      -65-
<PAGE>   73
                                      ST. JOSEPH NEONATOLOGY
                                        CONSULTANTS, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PERNOLL MEDICAL GROUP OF NEVADA, LTD.
                                        D/B/A PEDIATRIX MEDICAL GROUP OF NEVADA

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF
                                       SOUTH CAROLINA, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      FLORIDA REGIONAL NEONATAL
                                        ASSOCIATES, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP, INC.
                                        (Utah)

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP OF NEW
                                        MEXICO, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP OF
                                        WASHINGTON, INC., P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      -66-
<PAGE>   74

                                      PEDIATRIX MEDICAL GROUP OF
                                       INDIANA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      FORT WORTH NEONATAL ASSOCIATES, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PMG ACQUISITION CORP.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP OF
                                        PUERTO RICO, P.S.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      OBSTETRIX MEDICAL GROUP, INC.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      OBSTETRIX MEDICAL GROUP
                                        OF FLORIDA, INC.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      M. DOUGLAS CUNNINGHAM, M.D.,
                                      A PROFESSIONAL CORPORATION
                                      D/B/A OBSTETRIX MEDICAL GROUP
                                      OF CALIFORNIA, A PROFESSIONAL
                                      CORPORATION

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      -67-
<PAGE>   75
                                      MARCIA J. PERNOLL, M.D. PROF. CORP.
                                      D/B/A OBSTETRIX MEDICAL GROUP
                                      OF NEVADA, LTD.

                                      By: /s/ Karl B. Wagner
                                          -------------------------------------
                                          Title: Attorney-in-Fact

                                      OBSTETRIX MEDICAL GROUP OF ARIZONA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      OBSTETRIX MEDICAL GROUP
                                        OF COLORADO, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      OBSTETRIX MEDICAL GROUP
                                        OF KANSAS AND MISSOURI, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      OBSTETRIX MEDICAL GROUP
                                        OF PENNSYLVANIA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      OBSTETRIX MEDICAL GROUP
                                        OF PHOENIX, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      OBSTETRIX MEDICAL GROUP OF TEXAS, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      OBSTETRIX MEDICAL GROUP
                                        OF WASHINGTON, INC., P.S.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      -68-
<PAGE>   76

                                      PALM BEACH NEO ACQUISITIONS, INC.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX MEDICAL GROUP
                                        OF ARKANSAS, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP OF GEORGIA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Secretary

                                      PEDIATRIX MEDICAL GROUP OF MISSOURI, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP
                                        OF OKLAHOMA, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      PEDIATRIX MEDICAL GROUP
                                        OF TENNESSEE, P.C.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Treasurer

                                      PEDIATRIX OF MARYLAND, P.A.

                                      By: /s/ Karl B. Wagner
                                          --------------------------------------
                                          Title: Attorney-in-Fact

                                      -69-
<PAGE>   77

                                      FLEET NATIONAL BANK

                                      By: /s/ Carol Paige Castle
                                          --------------------------------------
                                          Carol Paige Castle
                                          Director
                                          Fleet National Bank
                                          100 Federal Street
                                          Mail Stop: MADE 10008E
                                          Boston, Massachusetts 02110
                                          Telecopy: (617) 434-2472

                                      SUNTRUST BANK

                                      By: /s/ W. David Wisdom
                                          --------------------------------------
                                          Name:  W. David Wisdom
                                          Title: Vice President
                                      Suntrust Bank
                                      Health Care Finance Group
                                      Mail Code:  O-1101
                                      200 S. Orange Avenue
                                      Orlando, Florida  32801
                                      Telecopy:  (407) 237-5489

                                      UBS AG, Stamford Branch

                                      By: /s/ Daniel W. Ladd III
                                          --------------------------------------
                                          Name:  Daniel W. Ladd III
                                          Title: Executive Director

                                      By: /s/ Wilfred V. Saint
                                          --------------------------------------
                                          Name:  Wilfred V. Saint
                                          Title: Associate Director
                                          Attn: Lynne Alfarone

                                      UBS AG, Stamford Branch
                                      677 Washington Boulevard 6th Floor
                                      Stamford, CT  06901
                                      Telephone: (203) 719-4308
                                      Telecopy:  (203) 719-3888

                                     -70-<PAGE>   1

                                                                   EXHIBIT 10.17

                             PEDIATRIX MEDICAL GROUP

                               SECURITY AGREEMENT

                          Dated as of November 1, 2000

                          FLEET NATIONAL BANK, as Agent

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                             <C>
1.  Reference to Credit Agreement; Definitions; Certain Rules of Construction.....................................1
2.  Security......................................................................................................2
         2.1. Credit Security.....................................................................................2
                  2.1.1.  Tangible Personal Property..............................................................2
                  2.1.2.  Rights to Payment of Money..............................................................2
                  2.1.3.  Intangibles.............................................................................2
                  2.1.4.  Pledged Stock...........................................................................3
                  2.1.5.  Pledged Rights..........................................................................3
                  2.1.6.  Pledged Indebtedness....................................................................3
                  2.1.7.  Chattel Paper, Instruments, etc.........................................................3
                  2.1.8.  Leases..................................................................................3
                  2.1.9.  Deposit Accounts........................................................................3
                  2.1.10.  Collateral.............................................................................3
                  2.1.11.  Books and Records......................................................................4
                  2.1.12.  Insurance..............................................................................4
                  2.1.14.  All Other Property.....................................................................4
                  2.1.15.  Proceeds and Products..................................................................4
                  2.1.16.  Excluded Property......................................................................4
         2.2.  Additional Credit Security.........................................................................5
                  2.2.1.  Real Property...........................................................................5
                  2.2.2.  Motor Vehicles and Aircraft.............................................................5
         2.3.  Certain Covenants with Respect to Credit Security..................................................5
                  2.3.1.  Pledged Stock...........................................................................5
                  2.3.2.  Accounts and Pledged Indebtedness.......................................................6
                  2.3.3.  No Liens or Restrictions on Transfer or Change of Control...............................6
                  2.3.4.  Jurisdiction of Organization............................................................6
                  2.3.5.  Location of Credit Security.............................................................6
                  2.3.6.  Trade Names.............................................................................7
                  2.3.7.  Insurance...............................................................................7
                  2.3.8.  Intellectual Property...................................................................8
                  2.3.9.  Deposit Accounts........................................................................8
                  2.3.10.  Modifications to Credit Security.......................................................8
                  2.3.11.  Delivery of Documents..................................................................9
                  2.3.12.  Perfection of Credit Security..........................................................9
         2.4.  Administration of Credit Security.................................................................10
                  2.4.1.  Use of Credit Security.................................................................10
                  2.4.2.  Accounts...............................................................................10
                  2.4.3.  Distributions on Pledged Securities....................................................10
                  2.4.4.  Voting Pledged Securities..............................................................10
         2.5.  Right to Realize upon Credit Security.............................................................11
                  2.5.1.  Assembly of Credit Security; Receiver..................................................11
                  2.5.2.  General Authority......................................................................11
                  2.5.3.  Marshaling, etc........................................................................12
                  2.5.4.  Sales of Credit Security...............................................................13
                  2.5.5.  Sale without Registration..............................................................13
                  2.5.6.  Application of Proceeds................................................................14
         2.6.  Custody of Credit Security........................................................................14
3.       General.................................................................................................15

</TABLE>

                                      -i-
<PAGE>   3

                               SECURITY AGREEMENT

          This Agreement, dated as of November 1, 2000, is among Pediatrix
Medical Group, Inc., a Florida corporation (the "COMPANY"), the Related Entities
of the Company from time to time party hereto and Fleet National Bank, as agent
(the "AGENT") for itself and the other Lenders under the Credit Agreement (as
defined below). The parties agree as follows:

1. REFERENCE TO CREDIT AGREEMENT; DEFINITIONS; CERTAIN RULES OF CONSTRUCTION.
REFERENCE IS MADE TO THE AMENDED AND RESTATED CREDIT AGREEMENT AMENDED AND
RESTATED AS OF THE DATE HEREOF, AS FROM TIME TO TIME IN EFFECT (THE "CREDIT
AGREEMENT"), AMONG THE COMPANY, THE RELATED ENTITIES OF THE COMPANY FROM TIME TO
TIME PARTY THERETO, THE LENDERS AND THE AGENT. CAPITALIZED TERMS DEFINED IN THE
CREDIT AGREEMENT AND NOT OTHERWISE DEFINED HEREIN ARE USED HEREIN WITH THE
MEANINGS SO DEFINED. CERTAIN OTHER CAPITALIZED TERMS ARE USED IN THIS AGREEMENT
AS SPECIFICALLY DEFINED BELOW IN THIS SECTION 1. EXCEPT AS THE CONTEXT OTHERWISE
EXPLICITLY REQUIRES, (A) THE CAPITALIZED TERM "SECTION" REFERS TO SECTIONS OF
THIS AGREEMENT, (B) THE CAPITALIZED TERM "EXHIBIT" REFERS TO EXHIBITS TO THIS
AGREEMENT, (C) REFERENCES TO A PARTICULAR SECTION SHALL INCLUDE ALL SUBSECTIONS
THEREOF, (D) THE WORD "INCLUDING" SHALL BE CONSTRUED AS "INCLUDING WITHOUT
LIMITATION", (E) TERMS DEFINED IN THE UCC AND NOT OTHERWISE DEFINED HEREIN HAVE
THE MEANING PROVIDED UNDER THE UCC; PROVIDED, HOWEVER, THAT TERMS CONTAINED IN
SECTION 2.1.13 AND DEFINED IN REVISED ARTICLE 9 SHALL BE USED IN SUCH SECTION
WITH THE MEANINGS SO DEFINED, (F) REFERENCES TO A PARTICULAR STATUTE OR
REGULATION INCLUDE ALL RULES AND REGULATIONS THEREUNDER AND ANY SUCCESSOR
STATUTE, REGULATION OR RULES, IN EACH CASE AS FROM TIME TO TIME IN EFFECT AND
(G) REFERENCES TO A PARTICULAR PERSON INCLUDE SUCH PERSON'S SUCCESSORS AND
ASSIGNS TO THE EXTENT NOT PROHIBITED BY THIS AGREEMENT AND THE OTHER CREDIT
DOCUMENTS. REFERENCES TO "THE DATE HEREOF" MEAN THE DATE FIRST SET FORTH ABOVE.

         "ACCOUNTS" is defined in Section 2.1.2.

         "AGREEMENT" means this Security Agreement as from time to time in
effect.

         "INTELLECTUAL PROPERTY" is defined in Section 2.3.8.

         "OBLIGORS" is defined in Section 2.1.

         "PLEDGED INDEBTEDNESS" is defined in Section 2.1.6.

         "PLEDGED RIGHTS" is defined in Section 2.1.5.

         "PLEDGED SECURITIES" means the Pledged Stock, the Pledged Rights and
the Pledged Indebtedness, collectively.

                                      -1-
<PAGE>   4

         "PLEDGED STOCK" is defined in Section 2.1.4.

         "REVISED ARTICLE 9" means revised Article 9 of the Uniform Commercial
Code in the form approved by the American Law Institute and the National
Conference of Commissions on Uniform State Law as contained in the 1999 Official
Text of the Uniform Commercial Code.

         "UCC" means the Uniform Commercial Code as in effect in Massachusetts
on the date hereof; PROVIDED, HOWEVER, that with respect to the perfection of
the Agent's Lien on the Credit Security and the effect of nonperfection thereof,
the term "UCC" means the Uniform Commercial Code as in effect in any
jurisdiction the laws of which are made applicable by section 9-103 of the
Uniform Commercial Code as in effect in Massachusetts.

2.       SECURITY.

         2.1. CREDIT SECURITY. As security for the payment and performance of
the Credit Obligations, each of the Company and the Related Entities of the
Company party hereto (each an "Obligor", and collectively, the "Obligors")
mortgages, pledges and collaterally grants and assigns to the Agent for the
benefit of the Lenders and the holders from time to time of any Credit
Obligation, and creates a security interest in favor of the Agent for the
benefit of the Lenders and such holders in, all of such Obligor's right, title
and interest in and to (but none of its obligations or liabilities with respect
to) the items and types of present and future property described in Sections
2.1.1 through 2.1.15 (subject, however, to Section 2.1.16), whether now owned or
hereafter acquired, all of which shall be included in the term "CREDIT
SECURITY":

                  2.1.1. TANGIBLE PERSONAL PROPERTY. All goods, machinery,
         equipment, inventory and all other tangible personal property of any
         nature whatsoever, wherever located, including raw materials, work in
         process, finished parts and products, supplies, spare parts,
         replacement parts, merchandise for resale, computers, tapes, disks and
         computer equipment.

                  2.1.2. RIGHTS TO PAYMENT OF MONEY. All rights to receive the
         payment of money, including accounts and receivables, rights to receive
         the payment of money under contracts, franchises, licenses, permits,
         subscriptions or other agreements (whether or not earned by
         performance), and rights to receive payments from any other source (all
         such rights, other than Financing Debt, being referred to herein as
         "ACCOUNTS").

                  2.1.3. INTANGIBLES. All of the following (to the extent not
         included in Section 3.1.2): (a) contracts, franchises, licenses,
         permits, subscriptions and other agreements and all rights thereunder;
         (b) rights granted by others which permit such Obligor to sell or
         market items of personal property; (c) United States and foreign common
         law and

                                      -2-
<PAGE>   5

         statutory copyrights and rights in literary property and rights and
         licenses thereunder; (d) trade names, United States and foreign
         trademarks, service marks, internet domain names, registrations of any
         of the foregoing and related good will; (e) United States and foreign
         patents and patent applications; (f) computer software, designs,
         models, know-how, trade secrets, rights in proprietary information,
         formulas, customer lists, backlog, orders, subscriptions, royalties,
         catalogues, sales material, documents, good will, inventions and
         processes; (g) judgments, causes in action and other claims, whether or
         not inchoate, and (h) all other general intangibles and intangible
         property and all rights thereunder, including such items set forth from
         time to time on exhibit 7.3 to the Credit Agreement or any supplements
         thereto provided pursuant to sections 6.4.1 or 6.4.2 thereof.

                  2.1.4. PLEDGED STOCK. (a) All shares of capital stock or other
         evidence of beneficial interest in any corporation, business trust or
         limited liability company, (b) all limited partnership interests in any
         limited partnership, (c) all general partnership interests in any
         general or limited partnership, (d) all joint venture interests in any
         joint venture and (e) all options, warrants and similar rights to
         acquire such capital stock or such interests. All such capital stock,
         interests, options, warrants and other rights are collectively referred
         to as the "PLEDGED STOCK".

                  2.1.5. PLEDGED RIGHTS. All rights to receive profits or
         surplus of, or other Distributions (including income, return of capital
         and liquidating distributions) from, any partnership, joint venture or
         limited liability company, including any distributions by any such
         Person to partners, joint venturers or members. All such rights are
         collectively referred to as the "PLEDGED RIGHTS".

                  2.1.6. PLEDGED INDEBTEDNESS. All Financing Debt from time to
         time owing to such Obligor from any Person (all such Financing Debt
         being referred to as the "PLEDGED INDEBTEDNESS").

                  2.1.7. CHATTEL PAPER, INSTRUMENTS, ETC. All chattel paper,
         non-negotiable instruments, negotiable instruments, documents and
         investment property.

                  2.1.8. LEASES. All leases of personal property, whether such
         Obligor is the lessor or the lessee thereunder.

                  2.1.9. DEPOSIT ACCOUNTS. All general or special deposit
         accounts, including any demand, time, savings, passbook or similar
         account maintained by such Obligor with any

                                      -3-
<PAGE>   6

         bank, trust company, savings and loan association, credit union or
         similar organization, and all money, cash and cash equivalents of such
         Obligor, whether or not deposited in any such deposit account.

                  2.1.10. COLLATERAL. All collateral granted by third parties
         to, or held by, such Obligor with respect to the Accounts, Pledged
         Securities, chattel paper, instruments, leases and other items of
         Credit Security.

                  2.1.11. BOOKS AND RECORDS. All books and records, including
         books of account and ledgers of every kind and nature, all
         electronically recorded data (including all computer programs, disks,
         tapes, electronic data processing media and software used in connection
         with maintaining such Obligor's books and records), all files,
         correspondence and all containers for the foregoing.

                  2.1.12. INSURANCE. All insurance policies which insure against
         any loss or damage to any other Credit Security or which are otherwise
         owned by such Obligor.

REVISED ARTICLE 9 ITEMS. The following categories of assets as defined in
Revised Article 9 (whether or not also included in the other provisions of this
Section 2.1): goods (including inventory, equipment and any accessions thereto),
instruments (including promissory notes), documents, accounts (including health
care receivables), chattel paper (whether tangible or electronic), deposit
accounts, letter of credit rights (whether or not the letter of credit is
evidenced by a writing), commercial tort claims, securities and all other
investment property, general intangibles (including payment intangibles and
software) and supporting obligations.

                  2.1.13. ALL OTHER PROPERTY. All other property, assets and
         items of value of every kind and nature, tangible or intangible,
         absolute or contingent, legal or equitable.

                  2.1.14. PROCEEDS AND PRODUCTS. All proceeds, including
         insurance proceeds, and products of the items of Credit Security
         described or referred to in Sections 2.1.1 through 2.1.14 and, to the
         extent not included in the foregoing, all Distributions with respect to
         the Pledged Securities.

                  2.1.15. EXCLUDED PROPERTY. Notwithstanding Sections 2.1.1
         through 2.1.15, the payment and performance of the Credit Obligations
         shall not be secured by:

                                      -4-
<PAGE>   7

                  (a) any contract, license, permit or franchise that validly
         prohibits the creation by such Obligor of a security interest in such
         contract, license, permit or franchise (or in any rights or property
         obtained by such Obligor under such contract, license, permit or
         franchise); PROVIDED, HOWEVER, that the provisions of this Section
         2.1.16 shall not prohibit the security interests created by this
         Agreement from extending to the proceeds of such contract, license,
         permit or franchise (or such rights or property) or to the monetary
         value of the good will and other general intangibles of the Obligors
         relating thereto;

                  (b) any rights or property to the extent that any valid and
         enforceable law or regulation applicable to such rights or property
         prohibits the creation of a security interest therein; PROVIDED,
         HOWEVER, that the provisions of this Section 2.1.16 shall not prohibit
         the security interests created by this Agreement from extending to the
         proceeds of such rights or property or to the monetary value of the
         good will and other general intangibles of the Obligors relating
         thereto;

                  (c) more than 66% of the outstanding voting stock or other
         voting equity in any Foreign Subsidiary to the extent that the pledge
         of voting stock or other voting equity above such amount would result
         in a repatriation of a material amount of foreign earnings under the
         Code (including the "deemed dividend" provisions of section 956 of the
         Code); or

                  (d) the items described in Section 2.2 (but only in the event
         and to the extent the Agent has not specified that such items be
         included in the Credit Security pursuant thereto).

         In addition, in the event any Obligor disposes of assets to third
parties in a transaction permitted by section 6.12 of the Credit Agreement, such
assets, but not the proceeds or products thereof, shall be released from the
Lien of the Credit Security.

         2.2. ADDITIONAL CREDIT SECURITY. As additional Credit Security, each
Obligor covenants that it will mortgage, pledge and collaterally grant and
assign to the Agent for the benefit of the Lenders and the holders from time to
time of any Credit Obligation, and will create a security interest in favor of
the Agent for the benefit of the Lenders and such holders in, all of its right,
title and interest in and to (but none of its obligations with respect to) such
of the following present or future items as the Agent may from time to time
specify by notice to such Obligor, whether now owned or hereafter acquired, and
the proceeds and products thereof, except to the extent consisting of rights or
property of the types referred to in Section 2.1.16(a) through (c), subject only
to Liens permitted by Section 2.3.3, all of which shall thereupon be included in
the term "CREDIT SECURITY":

                                      -5-
<PAGE>   8

                  2.2.1. REAL PROPERTY. All real property and immovable property
         and fixtures, leasehold interests and easements wherever located,
         together with all estates and interests of such Obligor therein,
         including lands, buildings, stores, manufacturing facilities and other
         structures erected on such property, fixed plant, fixed equipment and
         all permits, rights, licenses, benefits and other interests of any kind
         or nature whatsoever in respect of such real and immovable property.

                  2.2.2. MOTOR VEHICLES AND AIRCRAFT. All motor vehicles and
         aircraft.

         2.3. CERTAIN COVENANTS WITH RESPECT TO CREDIT SECURITY. Each Obligor
         covenants that:

                  2.3.1. PLEDGED STOCK. All shares of capital stock, limited
         partnership interests, membership interests and similar securities
         included in the Pledged Stock shall be at all times duly authorized,
         validly issued, fully paid and (in the case of capital stock and
         limited partnership interests) nonassessable. Each Obligor will deliver
         to the Agent certificates representing any Pledged Stock held by such
         Obligor, accompanied by a stock transfer power executed in blank and,
         if the Agent so requests, with the signature guaranteed, all in form
         and manner reasonably satisfactory to the Agent. Pledged Stock that is
         not evidenced by a certificate held by such Obligor will be described
         in appropriate control statements and UCC financing statements provided
         to the Agent, all in form and substance reasonably satisfactory to the
         Agent. Upon the occurrence and during the continuance of an Event of
         Default, the Agent may transfer into its name or the name of its
         nominee any Pledged Stock. In the event the Pledged Stock includes any
         Margin Stock, the Obligors will furnish to the Lenders Federal Reserve
         Form U-1 and take such other action as the Agent may reasonably request
         to ensure compliance with applicable laws.

                  2.3.2. ACCOUNTS AND PLEDGED INDEBTEDNESS. Each Obligor will,
         immediately upon the receipt thereof, deliver to the Agent any
         promissory note or similar instrument representing any Account or
         Pledged Indebtedness, after having endorsed such promissory note or
         instrument in blank.

                  2.3.3. NO LIENS OR RESTRICTIONS ON TRANSFER OR CHANGE OF
         CONTROL. All Credit Security shall be free and clear of any Liens and
         restrictions on the transfer thereof, including contractual provisions
         which prohibit the assignment of rights under contracts, except for
         Liens permitted by section 6.8 of the Credit Agreement or by this
         Section 2.3.3. Without limiting the generality of the foregoing, each
         Obligor will in good faith attempt to exclude from agreements,
         instruments, deeds or leases to which it becomes a

                                      -6-
<PAGE>   9

         party after the date hereof provisions that would prevent such Obligor
         from creating a security interest in such agreement, instrument, deed
         or lease or any rights or property acquired thereunder as contemplated
         hereby. None of the Pledged Stock shall be subject to any option to
         purchase or similar rights of any Person. Except with the written
         consent of the Agent, which consent will not be unreasonably withheld,
         each Obligor will in good faith attempt to exclude from any agreement,
         instrument, deed or lease provisions that would restrict the change of
         control or ownership of the Company or any of its Subsidiaries, or the
         creation of a security interest in the ownership of the Company or any
         of its Subsidiaries.

                  2.3.4. JURISDICTION OF ORGANIZATION. Each Obligor shall at all
         times maintain its jurisdiction of organization as set forth in exhibit
         7.1 to the Credit Agreement as in effect on the date hereof or, so long
         as such Obligor shall have taken all steps reasonably necessary to
         perfect the Lenders' security interest in the Credit Security with
         respect to such new jurisdiction, in such other jurisdiction as such
         Obligor may specify by notice actually received by the Agent not less
         than 10 Banking Days prior to such change of jurisdiction of
         organization.

                  2.3.5. LOCATION OF CREDIT SECURITY. Each Obligor shall at all
         times keep its records concerning the Accounts at its chief executive
         office and principal place of business, which office and place of
         business shall be as set forth in exhibit 7.1 to the Credit Agreement
         (as from time to time supplemented in accordance with sections 6.4.1
         and 6.4.2 of the Credit Agreement) or, so long as such Obligor shall
         have taken all steps reasonably necessary to perfect the Lenders'
         security interest in the Credit Security with respect to such new
         address, at such other address as such Obligor may specify by notice
         actually received by the Agent not less than 10 Banking Days prior to
         such change of address. No Obligor shall at any time keep tangible
         personal property of the type referred to in Section 2.1.1 in any
         jurisdiction other than the jurisdictions specified in such exhibit 7.1
         (as so supplemented) or, so long as such Obligor shall have taken all
         steps reasonably necessary to perfect the Lenders' security interest in
         the Credit Security with respect to such other jurisdiction, other
         jurisdictions as such Obligor may specify by notice actually received
         by the Agent not less than 10 days prior to moving such tangible
         personal property into such other jurisdiction.

                  2.3.6. TRADE NAMES. No Obligor will adopt or do business under
         any name other than its name or names designated in exhibit 7.1 to the
         Credit Agreement (as from time to time supplemented in accordance with
         sections 6.4.1 and 6.4.2 of the Credit Agreement) or any other name
         specified by notice actually received by the Agent not less than 10
         Banking Days prior to the conduct of business under such additional
         name. Since its inception, no Obligor has changed its name or adopted
         or conducted business under any trade name other than a name specified
         in such exhibit 7.1 (as so supplemented).

                                      -7-
<PAGE>   10

                  2.3.7. INSURANCE. Each insurance policy included in, or
         insuring against loss or damage to, the Credit Security shall name the
         Agent as additional insured party or as loss payee. No such insurance
         policy shall be cancelable or subject to termination or reduction in
         amount or scope of coverage until after at least 30 days' prior written
         notice from the insurer to the Agent. At least 10 days prior to the
         expiration of any such insurance policy for any reason, each Obligor
         shall furnish the Agent with reasonably satisfactory evidence of a
         renewal or replacement policy and payment of the premiums therefor to
         the extent due. Each Obligor grants to the Agent full power and
         authority as its attorney-in-fact, effective upon notice to such
         Obligor after the occurrence and during the continuance of an Event of
         Default, to obtain, cancel, transfer, adjust and settle any such
         insurance policy and to endorse any drafts thereon. Any amounts that
         the Agent receives under any such policy (including return of unearned
         premiums) insuring against loss or damage to the Credit Security when
         no Event of Default has occurred and is continuing shall be delivered
         to the Obligors for the replacement, restoration and maintenance of the
         Credit Security. Any such amounts that the Agent receives after the
         occurrence and during the continuance of an Event of Default shall, at
         the Agent's option, be applied to payment of the Credit Obligations or
         to the replacement, restoration and maintenance of the Credit Security.
         If any Obligor fails to provide insurance as required by this
         Agreement, the Agent may, at its option, purchase such insurance, and
         such Obligor will on demand pay to the Agent the amount of any payments
         made by the Agent or the Lenders for such purpose, together with
         interest on the amounts so disbursed from five Banking Days after the
         date demanded until payment in full thereof at the Overdue
         Reimbursement Rate.

                  2.3.8. INTELLECTUAL PROPERTY. Exhibit 2.3 hereto shall set
         forth the following items (collectively, the "INTELLECTUAL PROPERTY"):

                  (a) all copyrights owned by the Obligors that are registered
         with the United States Copyright Office (or any office maintaining
         registration of copyrights in any foreign jurisdiction) and all
         applications for such registration and

                  (b) all trademarks, tradenames, service marks, service names
         and patents owned by the Obligors that are registered with the United
         States Patent and Trademark Office (or any office maintaining
         registration of such items in any state of the United States of America
         or any foreign jurisdiction) and all applications for such
         registration.

                  (c) all internet domain names owned by the Obligors and the
         registry office on which such domain names are registered.

                                      -8-
<PAGE>   11

         The Obligors shall duly authorize, execute and deliver to the Agent
         separate memoranda of security interests provided by the Agent with
         respect to the foregoing Intellectual Property for filing in the
         offices described above. Upon the registration of any additional
         Intellectual Property (or the filing of applications therefor) in the
         offices described above, the Obligors shall notify the Agent and duly
         authorize, execute and deliver to the Agent separate memoranda of
         security interests covering such additional Intellectual Property for
         filing in such offices.

                  2.3.9. DEPOSIT ACCOUNTS. Each Obligor shall keep all its
         principal bank and deposit accounts only with the Agent, other Lenders
         or the financial institutions listed on Exhibit 2.3 hereto. Each
         Obligor shall use reasonable efforts to cause such financial
         institutions (other than the Lenders and the Agent) to enter into
         account control agreements with the Agent in form and substance
         reasonably satisfactory to the Agent.

                  2.3.10. MODIFICATIONS TO CREDIT SECURITY. Except with the
         prior written consent of the Agent, which consent will not be
         unreasonably withheld, no Obligor shall amend or modify, or waive any
         of its rights under or with respect to, any material Accounts, general
         intangibles, Pledged Securities or leases which are part of the Credit
         Security if the effect of such amendment, modification or waiver would
         be to reduce the amount of any such items or to extend the time of
         payment thereof, to waive any default by any other party thereto, or to
         waive or impair any remedies of the Obligors or the Lenders under or
         with respect to any such Accounts, general intangibles, Pledged
         Securities or leases which are part of the Credit Security, in each
         case other than consistent with past practice in the ordinary course of
         business and on an arm's-length basis. Each Obligor will promptly give
         the Agent written notice of any request by any Person for any material
         credit or adjustment with respect to any Account, general intangible,
         Pledged Securities or leases.

                  2.3.11. DELIVERY OF DOCUMENTS. Upon the Agent's reasonable
         request, each Obligor shall deliver to the Agent, promptly upon such
         Obligor's receipt thereof, copies of any agreements, instruments,
         documents or invoices comprising or relating to the Credit Security.
         Pending such request, such Obligor shall keep such items at its chief
         executive office and principal place of business (as specified pursuant
         to Section 2.3.5).

                  2.3.12. PERFECTION OF CREDIT SECURITY.

                  (a) This Agreement creates and shall create in favor of the
         Agent, for the benefit of the Lenders, a legal, valid and enforceable
         first priority security interest in the

                                      -9-
<PAGE>   12

         Credit Security described herein, subject only (in the case of Credit
         Security other than Pledged Stock) to Liens permitted by section 6.8 of
         the Credit Agreement.

                  (b) The Agent may at any time and from time to time execute
         and file UCC financing statements, continuation statements and
         amendments thereto that describe the Credit Security and contain any
         information required by Part 5 of Revised Article 9 or the applicable
         filing office with respect to any such UCC financing statement,
         continuation statement or amendment thereof.

                  (c) Upon the Agent's reasonable request from time to time, the
         Obligors will execute and deliver, and file and record in the proper
         filing and recording places, all such instruments, including UCC
         financing statements, collateral assignments of copyrights, trademarks
         and patents, mortgages or deeds of trust, notations on certificates of
         title and written confirmation of the grant of a security interest in
         commercial tort claims, and will take all such other action, as the
         Agent deems reasonably necessary for perfecting or otherwise confirming
         to it the Credit Security or to carry out any other purpose of this
         Agreement or any other Credit Document, whether in anticipation of the
         effectiveness of Revised Article 9 or otherwise.

                  (d) In furtherance of the foregoing, the Obligors shall use
         reasonable efforts to obtain (i) a written acknowledgment, in form and
         substance reasonably satisfactory to the Agent, from any bailee having
         possession of any Credit Security that such bailee holds such Credit
         Security for the benefit of the Agent and (ii) control of any
         investment property, deposit accounts, letter of credit rights or
         electronic chattel paper (each such term as defined in Revised Article
         9), with any agreements establishing such control to be in form and
         substance reasonably satisfactory to the Agent.

         2.4. ADMINISTRATION OF CREDIT SECURITY. The Credit Security shall be
administered as follows, and if an Event of Default shall have occurred and be
continuing, Section 2.5 shall also apply.

                  2.4.1. USE OF CREDIT SECURITY. Until the Agent provides
         written notice to the contrary, each Obligor may use, commingle and
         dispose of any part of the Credit Security in the ordinary course of
         its business, all subject to section 6.12 of the Credit Agreement.

                  2.4.2. ACCOUNTS. To the extent specified by prior written
         notice from the Agent after the occurrence and during the continuance
         of an Event of Default, all sums collected or received and all property
         recovered or possessed by any Obligor in connection with

                                      -10-
<PAGE>   13

         any Credit Security shall be received and held by such Obligor in trust
         for and on the Lenders' behalf, shall be segregated from the assets and
         funds of such Obligor, and shall be delivered to the Agent for the
         benefit of the Lenders. Without limiting the foregoing, upon the
         Agent's request after the occurrence and during the continuance of an
         Event of Default, each Obligor shall institute depository collateral
         accounts, lock-box receipts and similar credit procedures providing for
         the direct receipt of payment on Accounts at a separate address, the
         segregation of such proceeds for direct payment to the Agent and
         appropriate notices to Account debtors. Upon the Agent's request after
         the occurrence and during the continuance of an Event of Default, each
         Obligor will cause its accounting books and records to be marked with
         such legends and segregated in such manner as the Agent may specify.

                  2.4.3. DISTRIBUTIONS ON PLEDGED SECURITIES.

                  (a) Until an Event of Default shall occur and be continuing,
         the respective Obligors shall be entitled, to the extent permitted by
         the Credit Documents, to receive all Distributions on or with respect
         to the Pledged Securities (other than Distributions constituting
         additional Pledged Securities or liquidating Distributions). All
         Distributions constituting additional Pledged Securities or liquidating
         Distributions will be retained by the Agent (or if received by any
         Obligor shall be held by such Person in trust and shall be immediately
         delivered by such Person to the Agent in the original form received,
         endorsed in blank) and held by the Agent as part of the Credit
         Security.

                  (b) If an Event of Default shall have occurred and be
         continuing all Distributions on or with respect to the Pledged
         Securities shall be retained by the Agent (or if received by any
         Obligor shall be held by such Person in trust and shall be immediately
         delivered by it to the Agent in the original form received, endorsed in
         blank) and held by the Agent as part of the Credit Security or applied
         by the Agent to the payment of the Credit Obligations in accordance
         with Section 2.5.6.

                  2.4.4. VOTING PLEDGED SECURITIES.

                  (a) Until an Event of Default shall occur and be continuing
         and the Agent shall have delivered a notice contemplated by clause (b)
         below, the respective Obligors shall be entitled to vote or consent
         with respect to the Pledged Securities in any manner not inconsistent
         with the terms of any Credit Document, and the Agent will, if so
         requested, execute appropriate revocable proxies therefor.

                                      -11-
<PAGE>   14

                  (b) If an Event of Default shall have occurred and be
         continuing, if and to the extent that the Agent shall so notify in
         writing the Obligor pledging the Pledged Securities in question, only
         the Agent shall be entitled to vote or consent or take any other action
         with respect to the Pledged Securities (and any Obligor will, if so
         requested, execute appropriate proxies therefor).

         2.5. RIGHT TO REALIZE UPON CREDIT SECURITY. Except to the extent
prohibited by applicable law that cannot be waived, this Section 2.5 shall
govern the Lenders' and the Agent's rights to realize upon the Credit Security
if any Event of Default shall have occurred and be continuing. The provisions of
this Section 2.5 are in addition to any rights and remedies available at law or
in equity and in addition to the provisions of any other Credit Document. In the
case of a conflict between this Section 2.5 and any other Credit Document, this
Section 2.5 shall govern.

                  2.5.1. ASSEMBLY OF CREDIT SECURITY; RECEIVER. Each Obligor
         shall, upon the Agent's request, assemble the Credit Security and
         otherwise make it available to the Agent. The Agent may have a receiver
         appointed for all or any portion of the Obligors' assets or business
         which constitutes the Credit Security in order to manage, protect,
         preserve, sell and otherwise dispose of all or any portion of the
         Credit Security in accordance with the terms of the Credit Documents,
         to continue the operations of the Obligors and to collect all revenues
         and profits therefrom to be applied to the payment of the Credit
         Obligations, including the compensation and expenses of such receiver.

                  2.5.2. GENERAL AUTHORITY. To the extent specified in written
         notice from the Agent to the Obligor in question, each Obligor grants
         the Agent full and exclusive power and authority, subject to the other
         terms hereof and applicable law, to take any of the following actions
         (for the sole benefit of the Agent on behalf of the Lenders and the
         holders from time to time of any Credit Obligations, but at such
         Obligor's expense):

                  (a) To ask for, demand, take, collect, sue for and receive all
         payments in respect of any Accounts, general intangibles, Pledged
         Securities or leases which such Obligor could otherwise ask for,
         demand, take, collect, sue for and receive for its own use.

                  (b) To extend the time of payment of any Accounts, general
         intangibles, Pledged Securities or leases and to make any allowance or
         other adjustment with respect thereto.

                                      -12-
<PAGE>   15

                  (c) To settle, compromise, prosecute or defend any action or
         proceeding with respect to any Accounts, general intangibles, Pledged
         Securities or leases and to enforce all rights and remedies thereunder
         which such Obligor could otherwise enforce.

                  (d) To enforce the payment of any Accounts, general
         intangibles, Pledged Securities or leases, either in the name of such
         Obligor or in its own name, and to endorse the name of such Obligor on
         all checks, drafts, money orders and other instruments tendered to or
         received in payment of any Credit Security.

                  (e) To notify the third party payor with respect to any
         Accounts, general intangibles, Pledged Securities or leases of the
         existence of the security interest created hereby and to cause all
         payments in respect thereof thereafter to be made directly to the
         Agent; PROVIDED, HOWEVER, that whether or not the Agent shall have so
         notified such payor, such Obligor will at its expense render all
         reasonable assistance to the Agent in collecting such items and in
         enforcing claims thereon.

                  (f) To use, operate, sell, transfer, assign or otherwise deal
         in or with any Credit Security or the proceeds thereof, as fully as
         such Obligor otherwise could do.

                  2.5.3. MARSHALING, ETC. Neither the Agent nor the Lenders
         shall be required to make any demand upon, or pursue or exhaust any of
         their rights or remedies against, any Obligor or any other guarantor,
         pledgor or any other Person with respect to the payment of the Credit
         Obligations or to pursue or exhaust any of their rights or remedies
         with respect to any collateral therefor or any direct or indirect
         guarantee thereof. Neither the Agent nor the Lenders shall be required
         to marshal the Credit Security or any guarantee of the Credit
         Obligations or to resort to the Credit Security or any such guarantee
         in any particular order, and all of its and their rights hereunder or
         under any other Credit Document shall be cumulative. To the extent it
         may lawfully do so, each Obligor absolutely and irrevocably waives and
         relinquishes the benefit and advantage of, and covenants not to assert
         against the Agent or the Lenders, any valuation, stay, appraisement,
         extension, redemption or similar laws now or hereafter existing which,
         but for this provision, might be applicable to the sale of any Credit
         Security made under the judgment, order or decree of any court, or
         privately under the power of sale conferred by this Agreement, or
         otherwise. Without limiting the generality of the foregoing, each
         Obligor (a) agrees that it will not invoke or utilize any law which
         might prevent, cause a delay in or otherwise impede the enforcement of
         the rights of the Agent or any Lender in the Credit Security, (b)
         waives its rights under all such laws, and (c) agrees that it will not
         invoke or raise as a defense to any enforcement by the Agent or any
         Lender of any rights and remedies relating to the Credit Security or
         the Credit Obligations any legal or contractual requirement with which
         the Agent or any Lender may have in good faith

                                      -13-
<PAGE>   16

         failed to comply. In addition, each Obligor waives any right to prior
         notice (except to the extent expressly required by this Agreement) or
         judicial hearing in connection with foreclosure on or disposition of
         any Credit Security, including any such right which such Obligor would
         otherwise have under the Constitution of the United States of America,
         any state or territory thereof or any other jurisdiction.

                  2.5.4. SALES OF CREDIT SECURITY. All or any part of the Credit
         Security may be sold for cash or other value in any number of lots at
         public or private sale, without demand, advertisement or notice;
         PROVIDED, HOWEVER, that unless the Credit Security to be sold threatens
         to decline speedily in value or is of a type customarily sold on a
         recognized market, the Agent shall give the Obligor granting the
         security interest in such Credit Security 10 days' prior written notice
         of the time and place of any public sale, or the time after which a
         private sale may be made, which notice each of the Obligors and the
         Agent agrees to be reasonable. At any sale or sales of Credit Security,
         any Lender or any of its respective officers acting on its behalf, or
         such Lender's assigns, may bid for and purchase all or any part of the
         property and rights so sold, may use all or any portion of the Credit
         Obligations owed to such Lender as payment for the property or rights
         so purchased, and upon compliance with the terms of such sale may hold
         and dispose of such property and rights without further accountability
         to the respective Obligors, except for the proceeds of such sale or
         sales pursuant to Section 2.5.6. The Obligors acknowledge that any such
         sale will be made by the Agent on an "as is" basis with disclaimers of
         all warranties, whether express or implied (including warranties with
         respect to title, possession, quiet enjoyment and other similar
         warranties). The respective Obligors will execute and deliver or cause
         to be executed and delivered such instruments, documents, assignments,
         waivers, certificates and affidavits, will supply or cause to be
         supplied such further information and will take such further action, as
         the Agent shall reasonably request in connection with any such sale.

                  2.5.5. SALE WITHOUT REGISTRATION. If, at any time when the
         Agent shall determine to exercise its rights hereunder to sell all or
         part of the securities included in the Credit Security, the securities
         in question shall not be effectively registered under the Securities
         Act (or other applicable law), the Agent may, in its sole discretion,
         sell such securities by private or other sale not requiring such
         registration in such manner and in such circumstances as the Agent may
         deem necessary or advisable in order that such sale may be effected in
         accordance with applicable securities laws without such registration
         and the related delays, uncertainty and expense. Without limiting the
         generality of the foregoing, in any event the Agent may, in its sole
         discretion, (a) approach and negotiate with a single purchaser or one
         or more possible purchasers to effect such sale, (b) restrict such sale
         to one or more purchasers each of whom will represent and agree that
         such purchaser is purchasing for its own account, for investment and
         not with a view to the distribution or sale of such securities and (c)
         cause to be placed on certificates representing the securities in
         question a legend to the effect that such securities have not

                                      -14-
<PAGE>   17

         been registered under the Securities Act (or other applicable law) and
         may not be disposed of in violation of the provisions thereof. Each
         Obligor agrees that such manner of disposition is commercially
         reasonable, that it will upon the Agent's request give any such
         purchaser access to such information regarding the issuer of the
         securities in question as the Agent may reasonably request and that the
         Agent and the Lenders shall not incur any responsibility for selling
         all or part of the securities included in the Credit Security at any
         private or other sale not requiring such registration, notwithstanding
         the possibility that a substantially higher price might be realized if
         the sale were deferred until after registration under the Securities
         Act (or other applicable law) or until made in compliance with certain
         other rules or exemptions from the registration provisions under the
         Securities Act (or other applicable law). Each Obligor acknowledges
         that no adequate remedy at law exists for breach by it of this Section
         2.5.5 and that such breach would not be adequately compensable in
         damages and therefore agrees that this Section 2.5.5 may be
         specifically enforced.

                  2.5.6. APPLICATION OF PROCEEDS. The proceeds of all sales and
         collections in respect of any Credit Security or other assets of any
         Obligor, all funds collected from the Obligors and any cash contained
         in the Credit Security, the application of which is not otherwise
         specifically provided for herein, shall be applied as follows:

                  (a) First, to the payment of the costs and expenses of such
         sales and collections, the reasonable expenses of the Agent and the
         reasonable fees and expenses of its special counsel;

                  (b) Second, any surplus then remaining to the payment of the
         Credit Obligations in such order and manner as the Agent may in its
         reasonable discretion determine; PROVIDED, HOWEVER, that any such
         payment shall be distributed to the Lenders in accordance with the
         Credit Agreement and the other Credit Documents; and

                  (c) Third, any surplus then remaining shall be paid to the
         Obligors, subject, however, to any rights of the holder of any then
         existing Lien who has duly presented to the Agent an authenticated
         demand for proceeds before the Agent's distribution of the proceeds is
         completed.

         2.6. CUSTODY OF CREDIT SECURITY. Except as provided by applicable law
that cannot be waived, the Agent will have no duty as to the custody and
protection of the Credit Security, the collection of any part thereof or of any
income thereon or the preservation or exercise of any rights pertaining thereto,
including rights against prior parties, except for the use of reasonable care in
the custody and physical preservation of any Credit Security in its possession.
The Lenders will not be liable or responsible for any loss or damage to any
Credit Security, or for any diminution in the value thereof, by reason of the
act or omission of any agent selected by the Agent acting in good faith.

                                      -15-
<PAGE>   18

3. GENERAL. ADDRESSES FOR NOTICES, CONSENT TO JURISDICTION, JURY TRIAL WAIVER,
DEFEASANCE AND NUMEROUS OTHER PROVISIONS APPLICABLE TO THIS AGREEMENT ARE
CONTAINED IN THE CREDIT AGREEMENT. THE INVALIDITY OR UNENFORCEABILITY OF ANY
PROVISION HEREOF SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF ANY OTHER
PROVISION HEREOF, AND ANY INVALID OR UNENFORCEABLE PROVISION SHALL BE MODIFIED
SO AS TO BE ENFORCEABLE TO THE MAXIMUM EXTENT OF ITS VALIDITY OR ENFORCEABILITY.
THE HEADINGS IN THIS AGREEMENT ARE FOR CONVENIENCE OF REFERENCE ONLY AND SHALL
NOT LIMIT, ALTER OR OTHERWISE AFFECT THE MEANING HEREOF. THIS AGREEMENT AND THE
OTHER CREDIT DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING OF THE PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ALL PRIOR AND
CURRENT UNDERSTANDINGS AND AGREEMENTS, WHETHER WRITTEN OR ORAL. THIS AGREEMENT
IS A CREDIT DOCUMENT AND MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, WHICH
TOGETHER SHALL CONSTITUTE ONE INSTRUMENT. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS (OTHER THAN THE CONFLICT OF LAWS
RULES) OF THE COMMONWEALTH OF MASSACHUSETTS, EXCEPT AS MAY BE REQUIRED BY THE
UCC OF OTHER JURISDICTIONS WITH RESPECT TO MATTERS INVOLVING THE PERFECTION OF
THE AGENT'S LIEN ON THE CREDIT SECURITY LOCATED IN SUCH OTHER JURISDICTIONS.

               [the remainder of this page is intentionally blank]

                                      -16-
<PAGE>   19

         Each of the undersigned has caused this Agreement to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first written above.

                                             PEDIATRIX MEDICAL GROUP, INC. (FL)

                                             By  /S/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Chief Financial Officer

                                             PEDIATRIX MEDICAL GROUP OF FLORIDA,
                                             INC.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             PEDIATRIX MEDICAL GROUP, P.C. (WV)

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                      -17-
<PAGE>   20

                                             PEDIATRIX MEDICAL GROUP, P.C. (VA)

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             PEDIATRIX MEDICAL GROUP, S.P. (PR)

                                             By   /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             PEDIATRIX MEDICAL GROUP, P.A. (NJ)

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             PEDIATRIX MEDICAL GROUP OF KANSAS,
                                             P.A.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             PEDIATRIX MEDICAL GROUP
                                             NEONATOLOGY AND PEDIATRIC INTENSIVE
                                             CARE SPECIALISTS
                                             OF NEW YORK, P.C.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                      -18-
<PAGE>   21

                                            PEDIATRIX MEDICAL GROUP OF
                                            CALIFORNIA, P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP OF ILLINOIS,
                                            P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP OF MICHIGAN,
                                            P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Treasurer

                                            PEDIATRIX MEDICAL GROUP OF
                                            PENNSYLVANIA, P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP OF TEXAS,
                                            P.A.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                      -19-
<PAGE>   22

                                                PEDIATRIX MEDICAL GROUP OF OHIO,
                                                CORP.

                                                By  /s/ Karl B. Wagner
                                                   -----------------------------
                                                   Title:  Secretary

                                                NEONATAL SPECIALISTS, LTD. (AZ)

                                                By  /s/ Karl B. Wagner
                                                   -----------------------------
                                                   Title:  Attorney-in-Fact

                                                PEDIATRIX MEDICAL GROUP OF
                                                COLORADO, P.C.

                                                By  /s/ Karl B. Wagner
                                                   -----------------------------
                                                   Title:  Attorney-in-Fact

                                                ST. JOSEPH NEONATOLOGY
                                                CONSULTANTS, P.A.

                                                By  /s/ Karl B. Wagner
                                                   -----------------------------
                                                   Title:  Attorney-in-Fact

                                                PERNOLL MEDICAL GROUP OF NEVADA,
                                                LTD.
                                                D/B/A PEDIATRIX MEDICAL GROUP OF
                                                NEVADA

                                                By  /s/ Karl B. Wagner
                                                   -----------------------------
                                                   Title:  Attorney-in-Fact

                                      -20-
<PAGE>   23

                                                  PEDIATRIX MEDICAL GROUP OF
                                                  SOUTH CAROLINA, P.A.

                                                  By  /s/ Karl B. Wagner
                                                     ---------------------------
                                                     Title:  Treasurer

                                                  FLORIDA REGIONAL NEONATAL
                                                  ASSOCIATES, P.A.

                                                  By  /s/ Karl B. Wagner
                                                     ---------------------------
                                                     Title:  Treasurer

                                                  PEDIATRIX MEDICAL GROUP, INC.
                                                  (Utah)

                                                  By  /s/ Karl B. Wagner
                                                     ---------------------------
                                                     Title:  Treasurer

                                                  PEDIATRIX MEDICAL GROUP OF NEW
                                                  MEXICO, P.C.

                                                  By  /s/ Karl B. Wagner
                                                     ---------------------------
                                                     Title:  Treasurer

                                                  PEDIATRIX MEDICAL GROUP OF
                                                  WASHINGTON, INC., P.C.

                                                  By  /s/ Karl B. Wagner
                                                     ---------------------------
                                                     Title:  Treasurer

                                      -21-
<PAGE>   24

                                            PEDIATRIX MEDICAL GROUP OF
                                            INDIANA, P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            FORT WORTH NEONATAL ASSOCIATES, P.A.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PMG ACQUISITION CORP.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Treasurer

                                            PEDIATRIX MEDICAL GROUP OF
                                            PUERTO RICO, P.S.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            OBSTETRIX MEDICAL GROUP, INC.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Treasurer

                                            OBSTETRIX MEDICAL GROUP
                                            OF FLORIDA, INC.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Treasurer

                                      -22-
<PAGE>   25

                                             M. DOUGLAS CUNNINGHAM, M.D.,
                                             A PROFESSIONAL CORPORATION
                                             D/B/A OBSTETRIX MEDICAL GROUP
                                             OF CALIFORNIA, A PROFESSIONAL
                                             CORPORATION

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             MARCIA J. PERNOLL, M.D. PROF. CORP.
                                             D/B/A OBSTETRIX MEDICAL GROUP
                                             OF NEVADA, LTD.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             OBSTETRIX MEDICAL GROUP OF ARIZONA,
                                             P.C.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             OBSTETRIX MEDICAL GROUP
                                             OF COLORADO, P.C.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             OBSTETRIX MEDICAL GROUP
                                             OF KANSAS AND MISSOURI, P.A.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                      -23-
<PAGE>   26

                                             OBSTETRIX MEDICAL GROUP
                                             OF PENNSYLVANIA, P.C.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             OBSTETRIX MEDICAL GROUP
                                             OF PHOENIX, P.C.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             OBSTETRIX MEDICAL GROUP OF TEXAS,
                                             P.A.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             OBSTETRIX MEDICAL GROUP
                                             OF WASHINGTON, INC., P.S.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                             PALM BEACH NEO ACQUISITIONS, INC.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Treasurer

                                      -24-
<PAGE>   27

                                            PEDIATRIX MEDICAL GROUP
                                            OF ARKANSAS, P.A.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP OF GEORGIA,
                                            P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Secretary

                                            PEDIATRIX MEDICAL GROUP OF MISSOURI,
                                            P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP
                                            OF OKLAHOMA, P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Attorney-in-Fact

                                            PEDIATRIX MEDICAL GROUP
                                            OF TENNESSEE, P.C.

                                            By  /s/ Karl B. Wagner
                                               --------------------------------
                                               Title:  Treasurer

                                      -25-
<PAGE>   28

                                             PEDIATRIX OF MARYLAND, P.A.

                                             By  /s/ Karl B. Wagner
                                                --------------------------------
                                                Title:  Attorney-in-Fact

                                             FLEET NATIONAL BANK, as Agent

                                             By  /s/ Carol Paige Castle
                                                --------------------------------
                                                  Carol Paige Castle
                                                  Director

                                                  Fleet National Bank
                                                  100 Federal Street
                                                  Mail Stop: MADE 10008E
                                                  Boston, Massachusetts 02110
                                                  Telecopy: (617) 434-2472

                                      -26-

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