Document:

<PAGE>   1
                                                                   EXHIBIT 10.35

                          TELESERVICES 2001 STOCK PLAN

SECTION 1.   INTRODUCTION

         1.1 Establishment. Effective as provided in Section 17, TeleServices
Internet Group Inc., a Florida corporation (the "Company"), hereby establishes
this plan of stock-based compensation incentives for selected Eligible
Participants of the Company and its affiliated corporations. This Plan shall be
known as the TeleServices 2001 Stock Plan (the "Plan").

         1.2 Purpose. The purpose of this Plan is to promote the best interest
of the Company, and its stockholders by providing a means of non-cash
remuneration to selected Eligible Participants.

SECTION 2.   DEFINITIONS

         The following definitions shall be applicable to the terms used in this
Plan:

         2.1 "Affiliated Corporation" means any corporation that is either a
parent corporation with respect to the Company or a subsidiary corporation with
respect to the Company (within the meaning of Sections 424(e) and (f),
respectively, of the Internal Revenue Code).

         2.2 "Code" means the Internal Revenue Code of 1986, as it may be
amended from time to time.

         2.3 "Committee" means a committee designated by the Board of Directors
to administer this Plan or, if no committee is so designated, the Board of
Directors. Any Committee member who is also an Eligible Participant may receive
an Option or Stock Award only if he abstains from voting in favor of a grant to
himself, and the grant is determined and approved by the remaining Committee
members. The Board of Directors, in its sole discretion, may at any time remove
any member of the Committee and appoint another Director to fill any vacancy on
the Committee.

         2.4 "Common Stock" means the Company's $.0001 par value common stock.

         2.5 "Company" means TeleServices Internet Group Inc., a Florida
corporation and its subsidiaries.

         2.6 "Effective Date" means the effective date of this Plan, as set
forth in Section 17 hereof.

         2.7 "Eligible Participant" means any employee, director, officer,
consultant, or advisor of the Company who is determined (in accordance with the
provisions of Section 4 hereof) to be eligible to receive an Option or Stock
Award hereunder.

         2.8 "Option" means the grant to an Eligible Participant of a right to
acquire shares of Common Stock.

         2.9 "Plan" means this TeleServices 2001 Stock Plan, dated July 2, 2001.

         2.10 "Stock Award" means the grant to an Eligible Participant of shares
of Common Stock issuable directly under this Plan rather than upon exercise of
an Option.

         Wherever appropriate, words used in this Plan in the singular may mean
the plural, the plural may mean the singular, and the masculine may mean the
feminine.

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TELESERVICES 2001 STOCK PLAN                                         PAGE 1 OF 6
<PAGE>   2

SECTION 3.   ADOPTION AND ADMINISTRATION OF THIS PLAN

         Upon adoption by the Company's Board of Directors, this Plan became
effective as of July 2, 2001. In the absence of contrary action by the Board of
Directors, and except for action taken by the Committee pursuant to Section 4 in
connection with the determination of Eligible Participants, any action taken by
the Committee or by the Board of Directors with respect to the implementation,
interpretation or administration of this Plan shall be final, conclusive and
binding.

SECTION 4.   ELIGIBILITY AND AWARDS

         The Committee shall determine at any time and from time to time after
the effective date of this Plan: (i) the Eligible Participants; (ii) the number
of shares of Common Stock issuable directly or to be granted pursuant to an
Option; (iii) the price per share at which each Option may be exercised, in cash
or cancellation of fees for services for which the Company is liable, if
applicable, or the value per share if a direct issue of stock pursuant to a
Stock Award; and (iv) the terms on which each Option may be granted. Such
determination, as may from time to time be amended or altered at the sole
discretion of the Committee. Notwithstanding the provisions of Section 3 hereof,
no such determination by the Committee shall be final, conclusive and binding
upon the Company unless and until the Board of Directors has approved the same;
provided, however, that if the Committee is composed of a majority of the
persons then comprising the Board of Directors of the Company, such approval by
the Board of Directors shall not be necessary.

SECTION 5.   GRANT OF OPTION OR STOCK AWARD

         Subject to the terms and provisions of this Plan, the terms and
conditions under which an Option or Stock Award may be granted to an Eligible
Participant shall be set forth in a written agreement (i.e., a Consulting
Agreement, Services Agreement, Fee Agreement, or Employment Agreement) or, if an
Option, a written Grant of Option in the form attached hereto as Exhibit A
(which may contain such modifications thereto and such other provisions as the
Committee, in its sole discretion, may determine).

SECTION 6.   TOTAL NUMBER OF SHARES OF COMMON STOCK

         The total number of shares of Common Stock reserved for issuance by the
Company either directly as Stock Awards or underlying Options granted under this
Plan shall not be more than 15,000,000. The total number of shares of Common
Stock reserved for such issuance may be increased only by a resolution adopted
by the Board of Directors and amendment of this Plan. Such Common Stock may be
authorized and unissued or reacquired Common Stock of the Company.

SECTION 7.   PURCHASE OF SHARES OF COMMON STOCK

         7.1 As soon as practicable after the determination by the Committee and
approval by the Board of Directors (if necessary, pursuant to Section 4 hereof)
of the Eligible Participants and the number of shares an Eligible Participant
may be issued directly as a Stock Award or eligible to purchase pursuant to an
Option, the Committee shall give written notice thereof to each Eligible
Participant, which notice may be accompanied by the Grant of Option, if
appropriate, to be executed by such Eligible Participant.

         7.2 The negotiated cost basis of stock issued directly as a Stock Award
or the exercise price for each Option to purchase shares of Common Stock
pursuant to paragraph 7.1 shall be as determined by the Committee, it being
understood that the price so determined by the Committee may vary from one
Eligible Participant to another. In computing the negotiated direct issue price
as a Stock Award or the Option exercise price per share of Common Stock, the
Committee shall take into consideration, among other factors, the restrictions
set forth in Section 11 hereof.

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TELESERVICES 2001 STOCK PLAN                                         PAGE 2 OF 6
<PAGE>   3

SECTION 8.   TERMS AND CONDITIONS OF OPTIONS

         The Committee shall determine the terms and conditions of each Option
granted to Eligible Participants, which terms shall be set forth in writing. The
terms and conditions so set by the Committee may vary from one Eligible
Participant to another. In the event that all the Committee approves an Option
permitting deferred payments, the Eligible Participant's obligation to pay for
such Common Stock may be evidenced by a promissory note executed by such
Eligible Participant and containing such modifications thereto and such other
provisions as the Committee, in its sole discretion, may determine.

SECTION 9.   DELIVERY OF SHARES OF COMMON STOCK UPON EXERCISE OF OPTION

         The Company shall deliver to each Eligible Participant such number of
shares of Common Stock as such Eligible Participant is entitled to receive
pursuant to a Stock Award or elects to purchase upon exercise of the Option.
Such shares, which shall be fully paid and nonassessable upon the issuance
thereof (unless a portion or all of the purchase price shall be paid on a
deferred basis) shall be represented by a certificate or certificates registered
in the name of the Eligible Participant and stamped with an appropriate legend
referring to the restrictions thereon, if any. Subject to the terms and
provisions of the Florida Business Corporation Act and the written agreement to
which he is a party, an Eligible Participant shall have all the rights of a
stockholder with respect to such shares, including the right to vote the shares
and to receive all dividends or other distributions paid or made with respect
thereto (except to the extent such Eligible Participant defaults under a
promissory note, if any, evidencing the deferred purchase price for such
shares), provided that such shares shall be subject to the restrictions
hereinafter set forth. In the event of a merger or consolidation to which the
Company is a party, or of any other acquisition of a majority of the issued and
outstanding shares of Common Stock of the Company involving an exchange or a
substitution of stock of an acquiring corporation for Common Stock of the
Company, or of any transfer of all or substantially all of the assets of the
Company in exchange for stock of an acquiring corporation, a determination as to
whether the stock of the acquiring corporation so received shall be subject to
the restrictions set forth in Section 11 shall be made solely by the acquiring
corporation.

SECTION 10.   RIGHTS OF EMPLOYEES; ELIGIBLE PARTICIPANTS

         10.1 Employment. Nothing contained in this Plan or in any Option or
Stock Award granted under this Plan shall confer upon any Eligible Participant
any right with respect to the continuation of his or her employment by the
Company or any Affiliated Corporation, or interfere in any way with the right of
the Company or any Affiliated Corporation, subject to the terms of any separate
employment agreement to the contrary, at any time to terminate such employment
or to increase or decrease the compensation of the Eligible Participant from the
rate in existence at the time of the grant of an Option or Stock Award. Whether
an authorized leave of absence, or absence in military or government service,
shall constitute termination of employment shall be determined by the Committee
at the time.

         10.2 Non-transferability. No right or interest of any Eligible
Participant in an Option or Stock Award shall be assignable or transferable
during the lifetime of the Eligible Participant, either voluntarily or
involuntarily, or subjected to any lien, directly or indirectly, by operation of
law, or otherwise, including execution, levy, garnishment, attachment, pledge or
bankruptcy. However, the Board of Directors may, in its sole discretion, permit
transfers to family members if and to the extent such transfers are permissible
under applicable securities laws. In the event of an Eligible Participant's
death, an Eligible Participant's rights and interest in an Option or Stock Award
shall be transferable by testamentary will or the laws of descent and
distribution, and delivery of any shares of Common Stock due under this Plan
shall be made to, and exercise of any Options may be made by, the Eligible
Participant's legal representatives, heirs or legatees. If in the opinion of the
Committee a person entitled to payments or to exercise rights with respect to
this Plan is unable to care for his or her affairs because of mental condition,
physical condition, or age, payment due such person may be made to, and such
rights shall be exercised by, such person's guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory
to the Committee of such status.

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TELESERVICES 2001 STOCK PLAN                                         PAGE 3 OF 6
<PAGE>   4

SECTION 11.   GENERAL RESTRICTIONS

         11.1 Representations. The Company may require any Eligible Participant
to whom an Option or Stock Award is granted, as a condition of exercising such
Option, or receiving such Stock Award, to give written assurances in substance
and form satisfactory to the Company and its counsel to the effect that such
person is acquiring the Common Stock subject to the Option or Stock Award for
his or her own account for investment and not with any present intention of
selling or otherwise distributing the same, and to such other effects as the
Company deems necessary or appropriate in order to comply with federal and
applicable state securities laws.

         11.2 Restrictions on Transfer of Common Stock. The shares of Common
Stock issuable directly as a Stock Award or upon exercise of an Option may not
be offered for sale, sold or otherwise transferred except pursuant to an
effective registration statement or pursuant to an exemption from registration,
the availability of which is to be established to the satisfaction of the
Company, and any certificates representing shares of Common Stock will bear a
legend to that effect. However, the Company may, in the sole discretion of the
Board of Directors, register with the Securities and Exchange Commission some or
all of the shares of Common Stock reserved for issuance under this Plan. Special
resale restrictions may, however, continue to apply to officers, directors,
control shareholders and affiliates of the Company and such persons will be
required to obtain an opinion of counsel as regards their ability to resell
shares received pursuant to this Plan.

         11.3 Compliance with Securities Laws. Each Option or Stock Award shall
be subject to the requirement that if at any time counsel to the Company shall
determine that the listing, registration or qualification of the shares of
Common Stock subject to such Option or Stock Award upon any securities exchange
or under any state or federal law, or the consent or approval of any
governmental or regulatory body, is necessary as a condition of, or in
connection with, the issuance or purchase of shares thereunder, such Option or
Stock Award may not be accepted or exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Company to apply for or to obtain such listing,
registration or qualification.

         11.4 Changes in Accounting Rules. Notwithstanding any other provision
of this Plan to the contrary, if, during the term of this Plan, any changes in
the financial or tax accounting rules applicable to Options or Stock Awards
shall occur that, in the sole judgment of the Committee, may have a material
adverse effect on the reported earnings, assets or liabilities of the Company,
the Committee shall have the right and power to modify as necessary, or cancel,
any then outstanding and unexercised Options.

SECTION 12.   COMPLIANCE WITH TAX REQUIREMENTS

         Each Eligible Participant shall be liable for payment of all applicable
federal, state and local income taxes incurred as a result of the receipt of a
Stock Award or an Option, the exercise of an Option, and the sale of any shares
of Common Stock received pursuant to a Stock Award or upon exercise of an
Option. The Company may be required, pursuant to applicable tax regulations, to
withhold taxes for an Eligible Participant, in which case the Company's
obligations to deliver shares of Common Stock upon the exercise of any Option
granted under this Plan or pursuant to any Stock Award, shall be subject to the
Eligible Participant's satisfaction of all applicable federal, state and local
income and other income tax withholding requirements.

SECTION 13.   PLAN BINDING UPON ASSIGNS OR TRANSFEREES

         In the event that, at any time or from time to time, any Option or
Stock Award is assigned or transferred to any party (other than the Company)
pursuant to the provisions of Section 10.2 hereof, such party shall take such
Option or Stock Award pursuant to all provisions and conditions of this Plan,
and, as a condition precedent to the transfer of such interest, such party shall
agree (for and on behalf of himself or itself, his or its legal representatives
and his or its transferees and assigns) in writing to be bound by all provisions
of this Plan.

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TELESERVICES 2001 STOCK PLAN                                         PAGE 4 OF 6

<PAGE>   5

SECTION 14.   COSTS AND EXPENSES

         All costs and expenses with respect to the adoption, implementation,
interpretation and administration of this Plan shall be borne by the Company.

SECTION 15.   CHANGES IN CAPITAL STRUCTURE OF THE COMPANY

         Appropriate adjustments shall be made to the number of shares of Common
Stock issuable pursuant to an incomplete or pending Stock Award that has not yet
been delivered or upon exercise of any Options and the exercise price thereof in
the event of: (i) a subdivision or combination of any of the shares of capital
stock of the Company; (ii) a dividend payable in shares of capital stock of the
Company; (iii) a reclassification of any shares of capital stock of the Company;
or (iv) any other change in the capital structure of the Company.

SECTION 16.   PLAN AMENDMENT, MODIFICATION AND TERMINATION

         The Board, upon recommendation of the Committee or at its own
initiative, at any time may terminate and at any time and from time to time and
in any respect, may amend or modify this Plan, including:

                  (a) Increase the total amount of Common Stock that may be
         awarded under this Plan, except as provided in Section 15 of this Plan;

                  (b) Change the classes of persons from which Eligible
         Participants may be selected or materially modify the requirements as
         to eligibility for participation in this Plan;

                  (c) Increase the benefits accruing to Eligible Participants;
         or

                  (d) Extend the duration of this Plan.

         Any Option or other Stock Award granted to a Eligible Participant prior
to the date this Plan is amended, modified or terminated will remain in effect
according to its terms unless otherwise agreed upon by the Eligible Participant;
provided, however, that this sentence shall not impair the right of the
Committee to take whatever action it deems appropriate under Section 11 or
Section 15. The termination or any modification or amendment of this Plan shall
not, without the consent of a Eligible Participant, affect his rights under an
Option or other Stock Award previously granted to him.

SECTION 17.   EFFECTIVE DATE OF THIS PLAN

         17.1 Effective Date. This Plan is effective as of July 2, 2001, the
date it was adopted by the Board of Directors of the Company.

         17.2 Duration of this Plan. This Plan shall terminate at midnight on
July 1, 2006, which is the day before the fifth anniversary of the Effective
Date, and may be extended thereafter or terminated prior thereto by action of
the Board of Directors; and no Option or Stock Award shall be granted after such
termination. Options and Stock Awards outstanding at the time of this Plan
termination may continue to be exercised, or become free of restrictions, in
accordance with their terms.

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TELESERVICES 2001 STOCK PLAN                                         PAGE 5 OF 6
<PAGE>   6

SECTION 18.   BURDEN AND BENEFIT

         The terms and provisions of this Plan shall be binding upon, and shall
inure to the benefit of, each Eligible Participant, his executives or
administrators, heirs, and personal and legal representatives.

         Dated as of the 2nd day of July, 2001.

                                       TELESERVICES INTERNET GROUP INC.

                                       By: /s/ Paul W. Henry
                                          --------------------------------------
                                          Paul W. Henry, CEO

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TELESERVICES 2001 STOCK PLAN                                         PAGE 6 OF 6
<PAGE>   7

                                    EXHIBIT A

                                     FORM OF
                         GRANT OF OPTION PURSUANT TO THE
                            TSIG.COM 2001 STOCK PLAN

         TeleServices Internet Group Inc., a Florida corporation (the
"Company"), hereby grants to ________________________________ ("Optionee") an
Option to purchase ___________ shares of common stock, $.0001 par value (the
"Shares") of the Company at the purchase price of $______ per share (the
"Purchase Price"), in accordance with and subject to the terms and conditions of
the TeleServices 2001 Stock Plan (the "Plan"). This option is exercisable in
whole or in part, and upon payment in cash or cancellation of fees, or other
form of payment acceptable to the Company, to the principal office of the
Company. This Grant of Option supersedes and replaces any prior notice of option
grant, description of vesting terms or similar documents previously delivered to
Optionee for options granted on the date stated below.

         Unless otherwise set forth in a separate written agreement, in the
event that Optionee's employee or consultant status with the Company or any of
its subsidiaries ceases or terminates for any reason whatsoever, including, but
not limited to, death, disability, or voluntary or involuntary cessation or
termination, this Grant of Option shall terminate with respect to any portion of
this Grant of Option that has not vested prior to the date of cessation or
termination of employee or consultant status, as determined in the sole
discretion of the Company. In the event of termination for cause, this Grant of
Option shall immediately terminate in full with respect to any un-exercised
options, and any vested but un-exercised options shall immediately expire and
may not be exercised. Unless otherwise set forth in a separate written
agreement, vested options must be exercised within six months after the date of
termination (other than for cause), notwithstanding the Expiration Date set
forth below.

         Subject to the preceding paragraph, this Grant of Option, or any
portion hereof, may be exercised only to the extent vested per the attached
schedule, and must be exercised by Optionee no later than
____________________________ (the "Expiration Date") by (i) notice in writing,
signed by Optionee; and (ii) payment of the Purchase Price of a minimum of
$1,000 (unless the Purchase Price for the exercise of all vested options
available to be exercised totals less than $1,000) pursuant to the terms of this
Grant of Option and the Plan. Any portion of this Grant of Option that is not
exercised on or before the Expiration Date shall lapse. The notice must refer to
this Grant of Option, and it must specify the number of shares being purchased,
and recite the consideration being paid therefor. Notice shall be deemed given
on the date on which the notice is received by the Company.

         This Option shall be considered validly exercised once payment therefor
has cleared the banking system or the Company has issued a credit memo for
services in the appropriate amount, or receives a duly executed acceptable
promissory note, if the Option is granted with deferred payment, and the Company
has received written notice of such exercise. If payment is not received within
two business days after the date the notice is received, the Company may deem
the notice to be invalid.

         If Optionee fails to exercise this Option in accordance with this Grant
of Option, then this Grant of Option shall terminate and have no force and
effect, in which event the Company and Optionee shall have no liability to each
other with respect to this Grant of Option.

         This Option may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

         The validity, construction and enforceability of this Grant of Option
shall be construed under and governed by the laws of the State of Florida,
without regard to its rules concerning conflicts of laws, and any action brought
to enforce this Grant of Option or resolve any controversy, breach or
disagreement

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TELESERVICES 2001 STOCK PLAN                                            PAGE A-1
<PAGE>   8

relative hereto shall be brought only in a court of competent jurisdiction
within the State and county of the Company's principal office.

         The shares of common stock issuable upon exercise of the Option (the
"Underlying Shares") may not be sold, exchanged, assigned, transferred or
permitted to be transferred, whether voluntarily, involuntarily or by operation
of law, delivered, encumbered, discounted, pledged, hypothecated or otherwise
disposed of until (i) the Underlying Shares have been registered with the
Securities and Exchange Commission pursuant to an effective registration
statement on Form S-8, or such other form as may be appropriate, in the
discretion of the Company; or (ii) an Opinion of Counsel, satisfactory to the
Company, has been received, which opinion sets forth the basis and availability
of any exemption for resale or transfer from federal or state securities
registration requirements.

         This Grant of Option relates to options granted on ___________________,
_____.

                                     TELESERVICES INTERNET GROUP INC.

                                     BY THE BOARD OF DIRECTORS
                                     OR A SPECIAL COMMITTEE THEREOF

                                                  NOT FOR EXECUTION
                                     By:
                                        ----------------------------------------

OPTIONEE:

NOT FOR EXECUTION

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

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TELESERVICES 2001 STOCK PLAN                                            PAGE A-2
<PAGE>   9

GRANT OF OPTION PURSUANT TO THE
TELESERVICES 2001 STOCK PLAN.

OPTIONEE:                ___________________
OPTIONS GRANTED:         ___________________
PURCHASE PRICE:          $______per Share
DATE OF GRANT:           ___________________
EXERCISE PERIOD:         ________ to ________

<TABLE>
<S>                              <C>                 <C>
VESTING SCHEDULE:                OPTION ON
                                 #SHARES             DATE VESTED (ASSUMING CONTINUED EMPLOYMENT, ETC.)
                                 -------             -----------

                                 ---------           ----------
                                 ---------           ----------
                                 ---------           ----------
                                 ---------           ----------
                                 ---------           ----------
</TABLE>

EXERCISED TO DATE:         _________  INCLUDING THIS EXERCISE
BALANCE TO BE EXERCISED:   _________

================================================================================

                               NOTICE OF EXERCISE
                 (TO BE SIGNED ONLY UPON EXERCISE OF THE OPTION)

TO:      TeleServices Internet Group Inc. ("Optionor")

         The undersigned, the holder of the Option described above, hereby
irrevocably elects to exercise the purchase rights represented by such Option
for, and to purchase thereunder, _________________ shares of the Common Stock of
TeleServices Internet Group Inc., and herewith makes payment of
__________________________________ therefor. Optionee requests that the
certificates for such shares be issued in the name of Optionee and be delivered
to Optionee at the address of __________________________________________________
__________________________________, and if such shares shall not be all of the
shares purchasable hereunder, represents that a new Notice of Exercise of like
tenor for the appropriate balance of the shares, or a portion thereof,
purchasable under the Grant of Option pursuant to the TeleServices 2001 Stock
Plan, be delivered to Optionor when and as appropriate.

                                            OPTIONEE:

                                            NOT FOR EXECUTION
Dated:
      ----------------------------          ------------------------------------

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TELESERVICES 2001 STOCK PLAN                                            PAGE A-3<PAGE>   1
                                                                    EXHIBIT 4.14

                      SIXTH AMENDMENT TO CREDIT AGREEMENT

     THIS SIXTH AMENDMENT TO CREDIT AGREEMENT, dated as of the ____ day of June,
2001 (this "Amendment"), is made among MATRIA HEALTHCARE, INC., a Delaware
corporation ("Matria"), the Required Lenders (as defined in the Credit Agreement
referred to below), and FIRST UNION NATIONAL BANK, as administrative agent for
the Lenders (in such capacity, the "Administrative Agent").

                                    RECITALS

     A.   Matria, certain banks and other financial institutions, the
Administrative Agent, and Harris Trust and Savings Bank, as Co-Agent, are
parties to a Credit Agreement, dated as of January 19, 1999 (as amended, the
"Credit Agreement"), providing for the availability of certain credit
facilities to Matria and certain other Borrowers upon the terms and conditions
set forth therein. Capitalized terms used herein without definition shall have
the meanings given to them in the Credit Agreement.

     B.   Matria has requested that the Tranche B Lenders (as hereinafter
defined) make available a term loan facility in the aggregate principal amount
of $11,000,000, the proceeds of which will be used, together with proceeds from
a Borrowing of Revolving Loans, to purchase from Gainor Medical Management,
L.L.C., ("Gainor") 7,500 shares of Matria's Series A Preferred Stock and 15,000
shares of Matria's Series B Preferred Stock, pursuant to a Securities Purchase
Agreement, dated as of May 10, 2001, by and among Matria, Gainor, Mark J. Gainor
and SZ Investments, L.L.C. (as amended, modified or supplemented from time to
time in accordance with the terms of the Credit Agreement, the "Gainor
Securities Purchase Agreement"), all as more completely set forth therein (the
"Gainor Securities Purchase"). The Tranche B Lenders have agreed to make such
term loans, and the Required Lenders have agreed to amend the Credit Agreement
to provide for such term loans and to make certain other amendments thereto,
upon the terms and conditions set forth herein.

                             STATEMENT OF AGREEMENT

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

     1.   Amendments to Credit Agreement.

     1.1  Amended Defined Terms.

     (a)  The definition of "Applicable Margin Percentage" in Section 1.1 of
the Credit Agreement is hereby amended and restated in its entirety as follows:

<PAGE>   2
     "'Applicable Margin Percentage' shall mean, at any time, the applicable
percentage (a) to be added to the Base Rate pursuant to SECTION 2.8 for purposes
of determining the Adjusted Base Rate, (b) to be added to the IBOR Rate pursuant
to SECTION 2.8 for purposes of determining the Adjusted IBOR Rate, and (c) to be
added to the LIBOR Rate pursuant to SECTION 2.8 for purposes of determining the
Adjusted LIBOR Rate, in each case as determined under the following matrices
with reference to the Leverage Ratio and the applicable Class of Loan:

                    Tranche A Term Loans and Revolving Loans

<TABLE>
<CAPTION>
                                                                                  Applicable Margin
                                                                                    Percentage for
                                                       Applicable Margin           Foreign Currency
                                                         Percentage for           Revolving Loans and
     Leverage Ratio                                     Base Rate Loans               LIBOR Loans
     --------------                                    -----------------          -------------------
<S>                                                         <C>                         <C>
   Greater than or equal to 3.0 to 1.0                      2.250%                      3.250%

Greater than or equal to 2.5 to 1.0 but less
              than 3.0 to 1.0                               2.000%                      3.000%

Greater than or equal to 2.0 to 1.0 but less
              than 2.5 to 1.0                               1.750%                      2.750%

Greater than or equal to 1.5 to 1.0 but less
              than 2.0 to 1.0                               1.500%                      2.500%

             Less than 1.5 to 1.0                           1.250%                      2.250%
</TABLE>

                              Tranche B Term Loans
<TABLE>
<CAPTION>

                                                       Applicable Margin           Applicable Margin
                                                         Percentage for             Percentage for
     Leverage Ratio                                     Base Rate Loans               LIBOR Loans
     --------------                                    -----------------           -------------------
<S>                                                         <C>                         <C>
   Greater than or equal to 3.0 to 1.0                      2.500%                      3.500%

Greater than or equal to 2.5 to 1.0 but less
              than 3.0 to 1.0                               2.250%                      3.250%

Greater than or equal to 2.0 to 1.0 but less
              than 2.5 to 1.0                               2.000%                      3.000%

Greater than or equal to 1.5 to 1.0 but less
              than 2.0 to 1.0                               1.750%                      2.750%

             Less than 1.5 to 1.0                           1.500%                      2.500%
</TABLE>

     On each Adjustment Date (as hereinafter defined), the Applicable Margin
Percentage for all Loans shall be adjusted effective as of such date (based upon
the calculation of the Leverage Ratio as of the last day of the fiscal period to

                                       2

<PAGE>   3
     which such Adjustment Date relates) in accordance with the above matrices;
     provided, however, that, notwithstanding the foregoing or anything else
     herein to the contrary, if at any time Matria shall have failed to deliver
     the financial statements and a Compliance Certificate as required by
     SECTION 6.1(a) or SECTION 6.1(b), as the case may be, and SECTION 6.2(a),
     then at the election of the Required Lenders, at all times from and
     including the date on which such statements and Compliance Certificate are
     required to have been delivered to the date on which the same shall have
     been delivered, each Applicable Margin Percentage shall be determined in
     accordance with the above matrices as if the Leverage Ratio were greater
     than or equal to 3.0:1.0 (notwithstanding the actual Leverage Ratio). For
     purposes of this definition, "Adjustment Date" shall mean, with respect to
     any fiscal period of Matria, the tenth (10th) day (or, if such day is not
     a Business Day, on the next succeeding Business Day) after delivery by
     Matria in accordance with SECTION 6.1(a) or SECTION 6.1(b), as the case may
     be, of (i) financial statements as of the end of and for such fiscal period
     and (ii) a duly completed Compliance Certificate with respect to such
     fiscal period. Until the first Adjustment Date occurring after the Sixth
     Amendment Effective Date, each Applicable Margin Percentage shall be
     determined in accordance with the above matrices based upon the Leverage
     Ratio as set forth in the Covenant Compliance Worksheet delivered with
     respect to the fiscal quarter ended March 31, 2001."

     (b)  The definition of "Class" in Section 1.1 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

          "'Class,' with respect to any Loan, shall mean and refer to whether
     such Loan is a Tranche A Term Loan, a Tranche B Term Loan, a Revolving Loan
     or a Swingline Loan, each of which constitutes a Class."

     (c)  The definition of "Fee Letter" in Section 1.1 of the Credit Agreement
is hereby amended and restated in its entirety as follows:

          "'Fee Letter' shall mean the letter from First Union to Matria, dated
     December 21, 1998, as supplemented by letter from First Union to Matria
     dated June 13, 2001, relating to certain fees payable by Matria in respect
     of the transactions contemplated by this Agreement, as further amended,
     modified or supplemented from time to time."

     (d)  The definition of "Loans" in Section 1.1 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

          "'Loans' shall mean any or all of the Tranche A Term Loans, the
     Tranche B Term Loans, the Revolving Loans and the Swingline Loans, as the
     context may require."

     (e)  The definition of "Notes" in Section 1.1 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

                                       3
<PAGE>   4
          " 'Notes' shall mean any or all of the Tranche A Term Notes, the
     Tranche B Term Notes, the Revolving Credit Notes and the Swingline Note, as
     the context may require."

     1.2  New Defined Terms.  The following defined terms are hereby added to
Section 1.1 of the Credit Agreement in proper alphabetical order:

          " 'Gainor Securities Purchase' shall have the meaning given to such
     term in the recitals to the Sixth Amendment."

          " 'Gainor Securities Purchase Agreement' shall have the meaning given
     to such term in the recitals to the Sixth Amendment."

          " 'Sixth Amendment' shall mean the Sixth Amendment to Credit
     Agreement, dated as of June   , 2001, among Matria, the Lenders party
     thereto, and the Administrative Agent."

          " 'Sixth Amendment Effective Date' shall mean the date upon which the
     conditions to the effectiveness of the Sixth Amendment set forth in SECTION
     3 thereof are satisfied or waived in accordance with their terms."

          " 'Tranche A Maturity Date' shall mean, from and after the Sixth
     Amendment Effective Date, the 'Term Loan Maturity Date' (within the meaning
     of such term under the Credit Agreement immediately prior to giving effect
     to the Sixth Amendment)."

          " 'Tranche A Term Loans' shall mean, from and after the Sixth
     Amendment Effective Date, the 'Term Loans' (within the meaning of such term
     under the Credit Agreement immediately prior to giving effect to the Sixth
     Amendment)."

          " 'Tranche A Term Notes' shall mean, from and after the Sixth
     Amendment Effective Date, the 'Term Notes' (within the meaning of such term
     under the Credit Agreement immediately prior to giving effect to the Sixth
     Amendment)."

          " 'Tranche B Lender' shall mean any Lender having a Tranche B Term
     Loan Commitment and/or holding outstanding Tranche B Term Loans."

          " 'Tranche B Maturity Date' shall mean March 31, 2004."

          " 'Tranche B Term Loan Commitment' shall mean, with respect to any
     Tranche B Lender at any time, the amount set forth opposite such Lender's
     name on SCHEDULE A to the Sixth Amendment or, if such Lender has entered
     into one or more Assignment and Acceptances, the amount set forth for such
     Lender at such time in the Register maintained by the Administrative Agent
     pursuant to SECTION 12.7(b) as such Lender's "Tranche B Term Loan
     Commitment," as such amount may be reduced at or prior to such time
     pursuant to the terms hereof."

                                       4

<PAGE>   5
          "'Tranche B Term Loans' shall have the meaning given to such term in
     SECTION 2A.1."

          "'Tranche B Term Notes' shall mean the promissory notes of Matria in
     substantially the form of EXHIBIT B to the Sixth Amendment, together with
     any amendments, modifications and supplements thereto, substitutions
     therefor and restatements thereof."

     1.3 Tranche A Term Loans. Section 2.1(a) of the Credit Agreement is hereby
amended by adding the following at the end thereof:

          "From and at all times after the Sixth Amendment Effective Date, all
     Term Loans outstanding on the Sixth Amendment Effective Date (but before
     giving effect to the Sixth Amendment and the making of the Tranche B Term
     Loans) shall, for all purposes of this Agreement and the other Credit
     Documents, automatically be deemed to constitute Tranche A Term Loans."

     1.4 Tranche A Term Notes.

     (a) Section 2.4(a) of the Credit Agreement is hereby amended and restated
in its entirety as follows:

          "The Loans made by each Lender shall be evidenced (i) in the case of
     Tranche A Term Loans, by a Tranche A Term Note appropriately completed in
     substantially the form of EXHIBIT A-1, (ii) in the case of Tranche B Term
     Loans, by a Tranche B Term Note appropriately completed in substantially
     the form of EXHIBIT B to the Sixth Amendment, (iii) in the case of Dollar
     Revolving Loans, by a Dollar Revolving Credit Note appropriately completed
     in substantially the form of EXHIBIT A-2, (iv) in the case of Foreign
     Currency Revolving Loans, by a Foreign Currency Revolving Credit Note
     appropriately completed in substantially the form of EXHIBIT A-3, and (v)
     in the case of Swingline Loans, by a Swingline Note appropriately
     completed in substantially the form of EXHIBIT A-4. From and at all times
     after the Sixth Amendment Effective Date, all Term Notes outstanding
     on the Sixth Amendment Effective Date (but before giving effect to the
     Sixth Amendment and the making of the Tranche B Term Loans) shall, for all
     purposes of this Agreement and the other Credit Documents, automatically
     be deemed to constitute Tranche A Term Notes."

     (b) EXHIBIT A-1 to the Credit Agreement is hereby replaced in its entirety
by EXHIBIT A hereto.

     1.5 Mandatory Prepayments. Clause (i) of Section 2.6(h) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

          "(i) first, to reduce the outstanding principal amount of the Tranche
     A Term Loans and the Tranche B Term Loans on a pro rata basis, with such
     reduction to be applied to the scheduled principal payments on the Tranche
     A Term Loans and the Tranche B Term Loans (as set forth in SECTIONS 2.6(a)
     and

                                       5
<PAGE>   6
     2A.5(a), respectively) on a pro rata basis according to the amount of each
     such scheduled payment,"

     1.6  Voluntary Prepayments. The first sentence of Section 2.7(b) of the
Credit Agreement is hereby amended and restated in its entirety as follows:

          "Each prepayment of the Term Loans made pursuant to subsection (a)
     above shall be applied to reduce the outstanding principal amount of the
     Tranche A Term Loans and the Tranche B Term Loans on a pro rata basis, with
     such reduction to be applied to the scheduled principal payments on the
     Tranche A Term Loans and the Tranche B Term Loans (as set forth in SECTIONS
     2.6(a) and 2A.5(a), respectively) on a pro rata basis according to the
     amount of each such scheduled payment."

     1.7  Interest Periods.

     (a)  Clause (v) of Section 2.10 of the Credit Agreement is hereby amended
and restated in its entirety as follows:

          "(v)  (1) no Interest Period may be selected with respect to the
     Tranche A Term Loans that would end after a scheduled date for repayment of
     principal of the Tranche A Term Loans occurring on or after the first day
     of such Interest Period unless, immediately after giving effect to such
     selection, the aggregate principal amount of Tranche A Term Loans that are
     Base Rate Loans or that have Interest Periods expiring on or before such
     principal repayment date equals or exceeds the principal amount required to
     be paid on such principal repayment date; and (2) no Interest Period may be
     selected with respect to the Tranche B Term Loans that would end after a
     scheduled date for repayment of principal of the Tranche B Term Loans
     occurring on or after the first day of such Interest Period unless,
     immediately after giving effect to such selection, the aggregate principal
     amount of Tranche B Term Loans that are Base Rate Loans or that have
     Interest Periods expiring on or before such principal repayment date equals
     or exceeds the principal amount required to be paid on such principal
     repayment date;"

     (b)  Clause (vi) of Section 2.10 of the Credit Agreement is hereby amended
and restated in its entirety as follows:

          "(vi) the Borrower may not select any Interest Period that expires
     after (1) the Tranche A Maturity Date (with respect to LIBOR Loans that are
     Tranche A Term Loans), (2) the Tranche B Maturity Date (with respect to
     LIBOR Loans that are Tranche B Term Loans), or (3) the Revolving Credit
     Maturity Date (with respect to Fixed Rate Loans that are Revolving Loans);
     and"

     1.8  Use of Proceeds. Section 2.14(b) of the Credit Agreement is hereby
amended by adding the following at the end thereof:

                                       6

<PAGE>   7
          "; provided that proceeds of Revolving Loans may be used to finance a
     portion of the purchase price of the Gainor Securities Purchase so long as,
     immediately after giving effect to the Borrowing of such Revolving Loans,
     the aggregate principal outstanding Dollar Amount of Revolving Loans does
     not exceed $40,000,000."

     1.9  Tranche B Term Loans. The following is hereby added as a new Article
IIA to the Credit Agreement immediately after Section 2.18:

                                  "ARTICLE IIA

                              TRANCHE B TERM LOANS

          2A.1  Commitment. Each Tranche B Lender severally agrees, subject to
     and on the terms and conditions of this Agreement, to make a loan (each, a
     "Tranche B Term Loan," and collectively, the "Tranche B Term Loans") to
     Matria on the Sixth Amendment Effective Date in a principal amount not to
     exceed its Tranche B Term Loan Commitment. No Tranche B Term Loans shall be
     made at any time after the Sixth Amendment Effective Date. To the extent
     repaid, Tranche B Term Loans may not be reborrowed.

          2A.2  Borrowing.

          (a)   In order to make the Borrowing of the Tranche B Term Loans,
     Matria will give the Administrative Agent an appropriately completed Notice
     of Borrowing not later than 11:00 a.m., Charlotte time, at least one
     Business Day prior thereto; provided, however, that such request may, at
     the discretion of the Administrative Agent, be given later than the time
     specified hereinabove; and provided further that (i) the aggregate
     principal amount of the Borrowing of the Tranche B Term Loans shall be in
     the amount of the aggregate Tranche B Term Loan Commitments and (ii) the
     Tranche B Term Loans shall be made initially as Base Rate Loans. Upon its
     receipt of the Notice of Borrowing, the Administrative Agent will promptly
     notify each Tranche B Lender of the proposed Borrowing.

          (b)   Not later than 1:00 p.m., Charlotte time, on the requested
     Borrowing Date (which shall be the Sixth Amendment Effective Date), each
     Tranche B Lender will make available to the Administrative Agent at its
     office referred to in SECTION 12.5 (or at such other location as the
     Administrative Agent may designate) an amount, in Dollars and in
     immediately available funds, equal to the amount of the Tranche B Term Loan
     to be made by such Lender. To the extent the Tranche B Lenders have made
     such amounts available to the Administrative Agent as provided hereinabove,
     the Administrative Agent will make the aggregate of such amounts available
     to Matria in accordance with SECTION 2.3(a) and in like funds as received
     by the Administrative Agent.

          2A.3   Tranche B Term Notes. Each Tranche B Term Note issued to a
     Tranche B Lender shall (i) be executed by Matria, (ii) be payable to the
     order of such Lender, (iii) be dated as of the Sixth Amendment Effective
     Date (or, in the

                                       7

<PAGE>   8
case of a Tranche B Term Note issued after the Sixth Amendment Effective Date,
dated the effective date of the applicable Assignment and Acceptance), (iv) be
in a stated principal amount equal to such Lender's Tranche B Term Loan
Commitment (or, in the case of a Tranche B Term Note issued after the Sixth
Amendment Effective Date, in an amount equal to the unpaid principal amount of
such Lender's Tranche B Term Loan), (v) bear interest in accordance with the
provisions of SECTION 2.8, as the same may be applicable from time to time to
the Tranche B Term Loan made by such Lender, and (vi) be entitled to all of the
benefits of this Agreement and the other Credit Documents and subject to the
provisions hereof and thereof.

          2A.4 Termination of Tranche B Term Loan Commitments.  The Tranche B
Term Loan Commitments shall be automatically and permanently terminated on the
Sixth Amendment Effective Date (or, if earlier, on July 31, 2001), unless the
Tranche B Term Loans have been made in full on or prior to such date.

          2A.5 Scheduled Repayments.
          (a)  Except to the extent due or paid sooner pursuant to the
provisions of this Agreement, Matria will repay the aggregate outstanding
principal of the Tranche B Term Loans in the amounts and on the dates set forth
below:

<TABLE>
<CAPTION>
          Date                               Payment Amount
          ----                               --------------
<S>                                            <C>
     October 1, 2001                           $  864,406
     January 1, 2002                           $  864,406
      April 1, 2002                            $  864,406
      July 1, 2002                             $  864,406
     October 1, 2002                           $  864,406
     January 1, 2003                           $  864,407
      April 1, 2003                            $  864,407
      July 1, 2003                             $1,237,289
     October 1, 2003                           $1,237,289
     January 1, 2004                           $1,237,289
     March 31, 2004                            $1,237,289
</TABLE>

          (b)  Except to the extent due or paid sooner pursuant to the
provisions of this Agreement, the aggregate outstanding principal of the Tranche
B Term Loans shall be due and payable in full on the Tranche B Maturity Date.

          2A.6 Use of Proceeds.  The proceeds of the Tranche B Term Loans shall
 be used solely to finance all or a portion of the purchase price of the Gainor
 Securities Purchase."

 1.10     Leverage Ratio.  Section 7.1 of the Credit Agreement is hereby
amended and restated in its entirety as follows:

                                       8

<PAGE>   9
          "7.1    Leverage Ratio. Matria will not permit the Leverage Ratio as
     of the last day of any fiscal quarter, beginning with the fiscal quarter
     ending June 30, 2001, to be greater than 2.75 : 1.0."

     1.11    Senior Leverage Ratio. Section 7.2 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

          "7.2    Senior Leverage Ratio. Matria will not permit the Senior
     Leverage Ratio as of the last day of any fiscal quarter, beginning with the
     fiscal quarter ending June 30, 2001, to be greater than 2.35 : 1.0."

     1.12    Restricted Payments. Clause (iv) of Section 8.6(a) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

          "(iv)    Matria (A) may consummate the Gainor Securities Purchase and
     (B) may additionally redeem (y) shares of the Series A Preferred Stock
     pursuant to the provisions of paragraph 6(b) of paragraph A of the
     Certificate of Designations for the Series A Preferred Stock or (z) shares
     of the Series B Preferred Stock pursuant to the provisions of paragraph
     6(b) of paragraph A of the Certificate of Designations for the Series B
     Preferred Stock, but in either case under this clause (B) only so long as
     (1) not less than thirty (30) days prior to the proposed redemption date,
     the Administrative Agent shall have received written notice from Matria
     stating that an event has occurred that requires such redemption and
     describing such event, and (2) the Required Lenders (or the Administrative
     Agent on their behalf) shall have delivered to Matria a written instrument
     consenting to their sole discretion to the event giving rise to such
     redemption requirement and waiving any rights under this Agreement arising
     therefrom;

     1.13    General. Notwithstanding the revised definitions of "Tranche A
Maturity Date" and "Tranche A Term Loans" set forth in Section 1.2 above:

     (a)    The references to "Term Loan Maturity Date" in Section 12.6(a) and
12.7(d) of the Credit Agreement shall be deemed references to either or both the
Tranche A Maturity Date and the Tranche B Maturity Date, as the context
requires; and

     (b)    The references to "Term Loans" in the definition of "Consolidated
Fixed Charges" and in Sections 2.2(a)(i), 2.3(b), 2.5(b), 2.6(h) (second
sentence), 2.7(a), 2.10(opening paragraph), 12.7(a) and 12.7(c) shall be deemed
references to either or both the Tranche A Term Loans and the Tranche B Term
Loans, as the context requires.

     2.    Representations and Warranties. To induce the Administrative Agent
and the Lenders to enter into this Amendment and to induce the Tranche B Lenders
to make the Tranche B Term Loans, Matria represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a)    Organization and Power. Each of Matria and its Subsidiaries (i) is a
corporation or limited liability company duly organized, validly existing and in
good standing under the laws

                                       9

<PAGE>   10
of the jurisdiction of its organization, (ii) has the full corporate or limited
liability company power and authority to execute, deliver and perform this
Amendment and the other Credit Documents contemplated thereby (collectively,
the "Sixth Amendment Credit Documents") to which it is or will be a party, to
own and hold its property and to engage in its business as presently conducted,
and (iii) is duly qualified to do business as a foreign corporation or limited
liability company and is in good standing in each jurisdiction where the nature
of its business or the ownership of its properties requires it to be so
qualified, except where the failure to be so qualified would not, individually
or in the aggregate, be reasonably likely to have a Material Adverse Effect.

     (b)  Authorization; Enforceability. Each of Matria and its Subsidiaries
has taken, or on the Sixth Amendment Effective Date will have taken, all
necessary corporate or limited liability company action to execute, deliver and
perform each of the Sixth Amendment Credit Documents to which it is or will be
a party, and has, or on the Sixth Amendment Effective Date (or any later date
of execution and delivery) will have, validly executed and delivered each of
the Sixth Amendment Credit Documents to which it is or will be a party. Each of
the Credit Agreement (after giving effect to this Amendment) and this Amendment
constitutes, and each of the other Sixth Amendment Credit Documents upon
execution and delivery will constitute, the legal, valid and binding obligation
of each of Matria and its Subsidiaries that is a party hereto or thereto,
enforceable against it in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors' rights generally, by general equitable
principles or by principles of good faith and fair dealing.

     (c)  No Violation. The execution, delivery and performance by each of
Matria and its Subsidiaries of this Amendment and each of the other Sixth
Amendment Credit Documents to which it is or will be a party, and compliance by
it with the terms hereof and thereof, do not and will not (i) violate any
provision of its articles or certificate of incorporation or organization,
bylaws or operating agreement or contravene any other Requirement of Law
applicable to it, (ii) conflict with, result in a breach of or constitute (with
notice, lapse of time or both) a default under any indenture, agreement or other
instrument to which it is a party, by which it or any of its properties is bound
or to which it is subject, (iii) result in a Limitation on any Licenses
applicable to the business, operations or properties of Matria or any of its
Subsidiaries or adversely affect the ability of Matria or any of its
Subsidiaries to participate in any Third Party Payor Arrangement, of (iv) except
for the Liens granted in favor of the Administrative Agent pursuant to the
Security Documents, result in or require the creation or imposition of any Lien
upon any of its properties or assets.

     (d)  Governmental and Third-Party Authorization. No consent, approval,
authorization or other action by, notice to, or registration or filing with, any
Governmental Authority or other Person is or will be required as a condition to
or otherwise in connection with the due execution, delivery and performance by
each of Matria and its Subsidiaries of this Amendment or any of the other Sixth
Amendment Credit Documents to which it is or will be a party or the legality,
validity or enforceability hereof or thereof.

     (e)  Litigation. There are no actions, investigations, suits or proceedings
pending or, to the knowledge of Matria, threatened, at law, in equity or in
arbitration, before any court, other

                                       10

<PAGE>   11
Governmental Authority or other Person, (i) against or affecting Matria, any of
its Subsidiaries or any of their respective properties that would, if adversely
determined, be reasonably likely to have a Material Adverse Effect, or (ii)
with respect to this Amendment or any of the other Credit Documents.

     (f) Subsidiaries. SCHEDULE B sets forth a list, as of the Sixth Amendment
Effective Date, of all of the Subsidiaries of Matria and, as to each such
Subsidiary, the percentage ownership (direct and indirect) of Matria in each
class of its capital stock and each direct owner thereof, and separately
identifies each such Subsidiary that is an Inactive Subsidiary. Except for the
shares of capital stock expressly indicated on SCHEDULE B, there are no shares
of capital stock, warrants, rights, options or other equity securities, or
other Capital Stock of any Subsidiary of Matria outstanding or reserved for any
purpose. All outstanding shares of capital stock of each Subsidiary of Matria
are duly and validly issued, fully paid and nonassessable. Except as set forth
on SCHEDULE B, as of the Sixth Amendment Effective Date, neither Matria nor any
Subsidiary is engaged in any joint venture, partnership or similar arrangement
with any other Person. As of the Sixth Amendment Effective Date, the aggregate
face amount of all accounts receivable owned by Inactive Subsidiaries does
not exceed $500,000.

     (g) Solvency. Each of Matria and its Subsidiaries, after giving effect to
the consummation of the transactions contemplated by this Amendment, (i) has
capital sufficient to carry on its businesses as conducted and as proposed to
be conducted, (ii) has assets with a fair saleable value, determined on a going
concern basis, (y) not less than the amount required to pay the probable
liability on its existing debts as they become absolute and matured and (z)
greater than the total amount of its liabilities (including identified
contingent liabilities, valued at the amount that can reasonably be expected to
become absolute and matured), and (iii) does not intend to, and does not believe
that it will, incur debts or liabilities beyond its ability to pay such debts
and liabilities as they mature.

     (h) No Material Adverse Change. There has been no Material Adverse Change
since December 31, 2000, and there exists no event, condition or state of facts
that could reasonably be expected to result in a Material Adverse Change.

     (i) Other Representations and Warranties. Each of the representations and
warranties contained in the Credit Agreement and in the other Credit Documents
is true and correct on and as of the date hereof with the same effect as if made
on and as of the date hereof (except to the extent any such representation or
warranty is expressly stated to have been made as of a specific date, in which
case such representation or warranty is true and correct as of such date).

     (j) No Default. No Default or Event of Default has occurred and is
continuing.

     3. Conditions of Effectiveness, Borrowing. The effectiveness of this
Amendment and the obligation of each Tranche B Lender to make Tranche B Term
Loans on the Sixth Amendment Effective Date are subject to the satisfaction of
the following conditions precedent:

     (a) The Administrative Agent shall have received the following, each dated
as of the Sixth Amendment Effective Date (unless otherwise specified):

                                       11
<PAGE>   12
               (i)   a Tranche B Term Note for each Tranche B Lender, in the
          amount of such Lender's Tranche B Term Loan Commitment, duly completed
          in accordance with the relevant provisions of SECTION 2A.3 of the
          Credit Agreement and executed by Matria;

               (ii)  a Confirmation of Credit Documents, in substantially the
          form of EXHIBIT C hereto, duly completed and executed by Matria and
          each of its Domestic Subsidiaries (other than Foreign Subsidiaries and
          Inactive Subsidiaries, but including Q Liquidation Corp.("QLC")); and

               (iii) the favorable opinions of (A) Troutman Sanders LLP, special
          counsel to Matria, and (B) Roberta L. McCaw, general counsel of
          Matria, in each case addressed to the Administrative Agent and the
          Lenders, addressing such matters as the Administrative Agent or any
          Lender may reasonably request and in form and substance satisfactory
          to the Administrative Agent and each Lender.

     (b)  The Administrative Agent shall have received a certificate, signed by
the president, the chief executive officer or the chief financial officer of
Matria, in form and substance satisfactory to the Administrative Agent,
certifying that (i) all representations and warranties of Matria contained in
this Amendment and the other Credit Documents are true and correct as of the
Sixth Amendment Effective Date, both immediately before and after giving effect
to the consummation of the transactions contemplated hereby, the making of the
Loans on the Sixth Amendment Effective Date and the application of the proceeds
thereof, (ii) no Default or Event of Default has occurred and is continuing,
both immediately before and after giving effect to the consummation of the
transactions contemplated hereby, the making of the Loans on the Sixth Amendment
Effective Date and the application of the proceeds thereof, (iii) both
immediately before and after giving effect to the consummation of the
transactions contemplated hereby, the making of the Loans on the Sixth Amendment
Effective Date and the application of the proceeds thereof, no Material Adverse
Change has occurred since December 31, 2000, and there exists no event,
condition or state of facts that could reasonably be expected to result in a
Material Adverse Change, and (iv) all conditions to the effectiveness of this
Amendment, and to the extensions of credit hereunder and under the Credit
Agreement on the Sixth Amendment Effective Date, set forth in this Section and
in SECTION 4.2 of the Credit Agreement have been satisfied or waived as required
hereunder and thereunder.

     (c)  The Administrative Agent shall have received a certificate of the
secretary or an assistant secretary of each of Matria and its Subsidiaries
(other than Foreign Subsidiaries and Inactive Subsidiaries, but including QLC),
in form and substance satisfactory to the Administrative Agent, certifying as
follows:

               (i)   in the case of Matria, (x) that attached thereto is a true
          and complete copy of its certificate of incorporation and all
          amendments thereto, certified as of a recent date by the Secretary of
          State of Delaware, and that the same has not been amended since the
          date of such certification, (ii) that attached thereto is a true and
          complete copy of its bylaws as then in effect and as in effect at all
          times from the date on which the resolutions referred to in clause
          (iii) below were adopted to and including the date of such
          certificate, and (iii) that attached

                                       12
<PAGE>   13
          thereto is a true and complete copy of resolutions adopted by its
          board of directors authorizing the execution, delivery and performance
          of this Amendment and the other Sixth Amendment Credit Documents to
          which it is a party, and as to the incumbency and genuineness of the
          signature of each officer of Matria executing this Amendment or any of
          such other Credit Documents, and attaching all such copies of the
          documents described above; and

               (ii) in the case of each such Subsidiary of Matria, (x) that
          since the Closing Date, there has been no amendment to or restatement
          of its articles of certificate of incorporation or organization as
          certified and delivered to the Administrative Agent on the Closing
          Date, (ii) that since the Closing Date, there has been no amendment to
          its bylaws or operating agreement as certified and delivered to the
          Administrative Agent on the Closing Date, and (iii) that attached
          thereto is a true and complete copy of resolutions adopted by its
          board of directors (or the board of directors of its managing member),
          as the case may be, authorizing the execution, delivery and
          performance of the Sixth Amendment Credit Documents to which it is a
          party, and as to the incumbency and genuineness of the signature of
          each officer of such Subsidiary (or its managing member), as the case
          may be, executing any of such Credit Documents, and attaching a copy
          of such resolutions.

     (d)  The Administrative Agent shall have received (i) a certificate as of
a recent date of the good standing of each of Matria and its Subsidiaries
(other than Foreign Subsidiaries and Inactive Subsidiaries, but including QLC)
under the laws of its jurisdiction of organization, from the Secretary of State
(or comparable Governmental Authority) of such jurisdiction, and (ii) a
certificate as of a recent date of the qualification of Matria to conduct
business as a foreign corporation in the State of Georgia, from the Secretary
of State of Georgia.

     (e)  All aspects of the structure and documentation of the Gainor
Securities Purchase (including the Gainor Securities Purchase Agreement), all
legal matters and documentation relating to the credit facilities provided for
hereby, and all corporate or other proceedings incident to the transactions
contemplated hereby, shall be satisfactory in form and substance to the
Administrative Agent.

     (f)  All approvals, permits and consents of any Governmental Authorities
or other Persons required in connection with the execution and delivery of this
Amendment and the other Sixth Amendment Credit Documents and the consummation
of the transactions contemplated hereby shall have been obtained, without the
imposition of conditions that are not acceptable to the Administrative Agent,
and all related filings, if any, shall have been made, and all such approvals,
permits, consents and filings shall be in full force and effect and the
Administrative Agent shall have received such copies thereof as it shall have
requested; all applicable waiting periods shall have expired without any
adverse action being taken by any Governmental Authority having jurisdiction;
and no action, proceeding, investigation, regulation or legislation shall have
been instituted, threatened or proposed before, and no order, injunction or
decree shall have been entered by, any court or other Governmental Authority,
in each case to enjoin, restrain or prohibit, to obtain substantial damages in
respect of, or that is otherwise related to or arises out of, this Amendment,
any of the other Credit Documents or the consummation of the transactions

                                       13

<PAGE>   14
contemplated hereby, or that, in the opinion of the Administrative Agent, could
reasonably be expected to have a Material Adverse Effect.

     (g)  Since the date thereof, the Gainor Securities Purchase Agreement
shall not have been amended, modified or supplemented, nor any condition or
provision thereof waived, other than as approved by the Administrative Agent
and shall be in full force and effect; Matria shall have duly complied with and
performed all of its agreements and conditions set forth in the Gainor
Securities Purchase Agreement required to be complied with or performed by it
on or prior to the closing date thereunder (unless such compliance is waived or
deferred by the parties thereto and approved by the Administrative Agent); and
the Administrative Agent shall have received evidence satisfactory to it that,
concurrently with the making of the Loans hereunder on the Sixth Amendment
Effective Date, the Gainor Securities Purchase shall be consummated in
accordance with the terms of the Gainor Securities Purchase Agreement and in
compliance with all applicable Requirements of Law.

     (h)  The Administrative Agent shall have received evidence in form and
substance satisfactory to it that all filings, recordings, registrations and
other actions (including, without limitation, the filing of duly completed and
executed UCC-1 financing statements in each jurisdiction listed on Annex A to
the Security Agreement) necessary or, in the reasonable opinion of the
Administrative Agent, desirable to perfect the Liens created by the Security
Documents (including in compliance with Revised Article 9 of the Uniform
Commercial Code, whether or not then effective in all applicable jurisdictions)
shall have been completed, or arrangements satisfactory to the Administrative
Agent for the completion thereof shall have been made.

     (i)  Since December 31, 2000, both immediately before and after giving
effect to the consummation of the transactions contemplated by this Amendment,
there shall not have occurred any Material Adverse Change or any event,
condition or state of facts that could reasonably be expected to result in a
Material Adverse Change.

     (j)  Matria shall have paid all fees and expenses of the Administrative
Agent, the Arranger and the Lenders required hereunder, under the Fee Letter or
under any other Credit Document to be paid on or prior to the Sixth Amendment
Effective Date (including fees and expenses of counsel) in connection with this
Amendment and the transactions contemplated hereby.

     (k)  The Administrative Agent shall have received certificates of
insurance evidencing the insurance coverages required under the Security
Agreement and naming the Administrative Agent as loss payee or additional
insured, as its interests may appear.

     (l)  The Administrative Agent shall have received written instructions
from an Authorized Officer, including wire transfer information, directing the
payment of the proceeds of the Loans to be made on the Sixth Amendment
Effective Date.

     (m)  The conditions precedent to the making of the Loans on the Sixth
Amendment Effective Date set forth in SECTION 4.2 of the Credit Agreement shall
have been satisfied or waived as required thereunder.

                                       14

<PAGE>   15
     (n)  The Administrative Agent and each Lender shall have received such
other documents, certificates, opinions and instruments in connection with the
transactions contemplated hereby as it shall have reasonably requested.

     4.   Tranche A Term Notes. In the event that any portion of the Tranche A
Term Loans remains outstanding on July 15, 2001, Matria will thereupon execute
and deliver to each Lender holding outstanding Tranche A Term Loans a new
Tranche A Term Note appropriately completed in substantially the form of EXHIBIT
A hereto.

     5.   Effect of Amendment. From and after the date hereof, all references to
the Credit Agreement set forth in any other Credit Document or other agreement
or instrument shall, unless otherwise specifically provided, be references to
the Credit Agreement as amended by this Amendment and as may be further amended,
modified, restated or supplemented from time to time. This Amendment is limited
as specified and shall not constitute or be deemed to constitute an amendment,
modification or waiver of any provision of the Credit Agreement except as
expressly set forth herein. Except as expressly amended hereby, the Credit
Agreement shall remain in full force and effect in accordance with its terms.

     6.   Governing Law. This Amendment shall be governed by and construed and
enforced in accordance with the laws of the State of Georgia (without regard to
the conflicts of law provisions thereof).

     7.   Severability. To the extent any provision of this Amendment is
prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or
invalidity and only in any such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining
provisions of this Amendment in any jurisdiction.

     8.   Successors and Assigns. This Amendment shall be binding upon, inure to
the benefit of and be enforceable by the respective successors and assigns of
the parties hereto.

     9.   Construction. The headings of the various sections and subsections of
this Amendment have been inserted for convenience only and shall not in any way
affect the meaning or construction of any of the provisions hereof.

     10.  Counterparts. This Amendment may be executed in any number of counter-
parts and by different parties hereto on separate counterparts, each of which
when so executed and delivered shall be an original, but all of which shall
together constitute one and the same instrument.

                                       15

<PAGE>   16
     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers as of the date first above written.

                                        /s/ MATRIA HEALTHCARE, INC.

                                        /s/ FIRST UNION NATIONAL BANK, as
                                            Administrative Agent and as Lender

                                        /s/ HARRIS TRUST AND SAVINGS BANK,
                                            as Co-Agent and as Lender

                                       /s/ BANKERS TRUST COMPANY

                                        /s/ FINOVA CAPITAL CORPORATION

                             (signatures continued)

                                       16
<PAGE>   17
                                           /s/ LASALLE BANK NATIONAL ASSOCIATION

                                       17

<PAGE>   18
                                   Schedule A

                        Tranche B Term Loan Commitments

First Union National Bank               $5,500,000.00

Harris Trust and Savings Bank           $5,500,000.00

<PAGE>   19
                                   Exhibit A

                                  EXHIBIT A-1

                              Borrower's Taxpayer Identification No. 58-2205984

                                    FORM OF
                              TRANCHE A TERM NOTE

$__________                                                   ___________,20___
                                                      Charlotte, North Carolina

     FOR VALUE RECEIVED, MATRIA HEALTHCARE, INC., a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of

     ______________________________ (the "Lender"), at the offices of First
Union National Bank (the "Administrative Agent") located at One First Union
Center, 301 South College Street, Charlotte, North Carolina (or at such other
place or places as the Administrative Agent may designate), at the times and in
the manner provided in the Credit Agreement, dated as of January 19, 1999 (as
amended, modified or supplemented from time to time, the "Credit Agreement"),
among the Borrower, the other borrowers from time to time parties thereto, the
Lenders from time to time parties thereto, and First Union National Bank, as
Administrative Agent, the principal sum of

     ______________________________ DOLLARS ($_________), under the terms and
conditions of this promissory note (this "Tranche A Term Note") and the Credit
Agreement. The defined terms in the Credit Agreement are used herein with the
same meaning. The Borrower also unconditionally promises to pay interest on the
aggregate unpaid principal amount of this Tranche A Term Note at the rates
applicable thereto from time to time as provided in the Credit Agreement.

     This Tranche A Term Note is one of a series of Tranche A Term Notes
referred to in the Credit Agreement and is issued to evidence the Tranche A
Term Loans made by the Lender pursuant to the Credit Agreement. All of the
terms, conditions and covenants of the Credit Agreement are expressly made a
part of this Tranche A Term Note by reference in the same manner and with the
same effect as if set forth herein at length, and any holder of this Tranche A
Term Note is entitled to the benefits of and remedies provided in the Credit
Agreement and the other Credit Documents. Reference is made to the Credit
Agreement for provisions relating to the interest rate, maturity, payment,
prepayment and acceleration of this Tranche A Term Note. This Tranche A Term
Note is hereby substituted for and replaces, as to the Lender, the Term Note
dated _____________ from the Borrower to the Lender in the original principal
amount of

<PAGE>   20
$__________ (the "Replaced Note"); provided, however, that the Borrower
acknowledges and agrees that, except as expressly provided by the terms of this
Tranche A Term Note (including the original principal amount hereof), the
substitution for and replacement of the Replaced Note by this Tranche A Term
Note shall not extinguish, discharge, operate as a novation of, or otherwise
affect any of the Borrower's obligations to the Lender under the Credit
Agreement, whether or not evidenced by the Replaced Note, including, without
limitation, the Borrower's obligation to pay interest accrued prior to the date
hereof under the Replaced Note.

     In the event of an acceleration of the maturity of this Tranche A Term
Note, this Tranche A Term Note shall become immediately due and payable,
without presentation, demand, protest or notice of any kind, all of which are
hereby waived by the Borrower.

     In the event this Tranche A Term Note is not paid when due at any stated
or accelerated maturity, the Borrower agrees to pay, in addition to the
principal and interest, all costs of collection, including reasonable
attorneys' fees to the extent actually incurred.

     This Tranche A Term Note shall be governed by and construed in accordance
with the internal laws and judicial decisions of the State of Georgia. The
Borrower hereby submits to the nonexclusive jurisdiction and venue of the
federal and state courts located in Cobb County, Georgia and in Fulton County,
Georgia, although the Lender shall not be limited to bringing an action in such
courts.

     In WITNESS WHEREOF, the Borrower has caused this Tranche A Term Note to be
executed under seal by its duly authorized corporate officer as of the day and
year first above written.

                                   MATRIA HEALTHCARE, INC.

                                   By: __________________________________

                                   Title: _______________________________
<PAGE>   21
                                   Exhibit B

               Borrower's Taxpayer Identification No. 58-2205984

                                    FORM OF
                              TRANCHE B TERM NOTE

$ ____________                                           _________________, 20__
                                                       Charlotte, North Carolina

     FOR VALUE RECEIVED, MATRIA HEALTHCARE, INC., a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of

     __________________ (the "Lender"), at the offices of First Union National
Bank (the "Administrative Agent") located at One First Union Center, 301 South
College Street, Charlotte, North Carolina (or at such other place or places as
the Administrative Agent may designate), at the times and in the manner
provided in the Credit Agreement, dated as of January 19, 1999 (as amended,
modified or supplemented from time to time, the "Credit Agreement"), among the
Borrower, the other borrowers from time to time parties thereto, the Lenders
from time to time parties thereto, and First Union National Bank, as
Administrative Agent, the principal sum of

     __________________ DOLLARS ($ __________), under the terms and conditions
of this promissory note (this "Tranche B Term Note") and the Credit Agreement.
The defined terms in the Credit Agreement are used herein with the same
meaning. The Borrower also unconditionally promises to pay interest on the
aggregate unpaid principal amount of this Tranche B Term Note at the rates
applicable thereto from time to time as provided in the Credit Agreement.

     This Tranche B Term Note is one of a series of Tranche B Term Notes
referred to in the Credit Agreement and is issued to evidence the Tranche B
Term Loans made by the Lender pursuant to the Credit Agreement. All of the
terms, conditions and covenants of the Credit Agreement are expressly made a
part of this Tranche B Term Note by reference in the same manner and with the
same effect as if set forth herein at length, and any holder of this Tranche B
Term Note is entitled to the benefits of and remedies provided in the Credit
Agreement and the other Credit Documents. Reference is made to the Credit
Agreement for provisions relating to the interest rate, maturity, payment,
prepayment and acceleration of this Tranche B Term Note.

     In the event of an acceleration of the maturity of this Tranche B Term
Note, this Tranche B Term Note shall become immediately due and payable,
without presentation, demand, protest or notice of any kind, all of which are
hereby waived by the Borrower.

<PAGE>   22
     In the event this Tranche B Term Note is not paid when due at any stated
or accelerated maturity, the Borrower agrees to pay, in addition to the
principal and interest, all costs of collection, including reasonable
attorneys' fees to the extent actually incurred.

     This Tranche B Term Note shall be governed by and construed in accordance
with the internal laws and judicial decisions of the State of Georgia. The
Borrower hereby submits to the nonexclusive jurisdiction and venue of the
federal and state courts located in Cobb County, Georgia and in Fulton County,
Georgia, although the Lender shall not be limited to bringing an action in such
courts.

     IN WITNESS WHEREOF, the Borrower has caused this Tranche B Term Note to be
executed under seal by its duly authorized corporate officer as of the day and
year first above written.

                                   MATRIA HEALTHCARE, INC.

                                   By: ___________________________________

                                   Title: ________________________________

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