Document:

PLEDGE AGREEMENT

      THIS PLEDGE AGREEMENT (this "Pledge Agreement"), dated as of August 29,
2000, is by and among the parties identified as "Pledgors" on the signature
pages hereto and such other parties as may become Pledgors hereunder after
the date hereof (individually a "Pledgor", and collectively the "Pledgors")
and BANK OF AMERICA, N.A., as collateral agent (in such capacity, the
"Collateral Agent") for the holders of the Secured Obligations referenced
below.

                             W I T N E S S E T H

      WHEREAS, a $125 million credit facility has been established in favor
of RehabCare Group, Inc., a Delaware corporation (the "Borrower"), pursuant
to the terms of that Credit Agreement dated as of the date hereof (as
amended, modified, increased, extended, renewed or replaced, the "Credit
Agreement") among the Borrower, the subsidiaries and affiliates identified
therein, as guarantors, the lenders identified therein and Bank of America,
N.A., as Administrative Agent;

      WHEREAS, this Pledge Agreement is required under the terms of the
Credit Agreement;

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

      1.    Definitions.  Terms used herein but not otherwise defined herein
shall have the meanings assigned to such terms in the Credit Agreement.  As
used herein:

            "Secured Obligations" means, without duplication, (i) all of the
      obligations of the Credit Parties to the Lenders and the Administrative
      Agent, whenever arising, under the Credit Agreement or any of the other
      Credit Documents (including, but not limited to, any interest accruing
      after the occurrence of a Bankruptcy Event with respect to any Credit
      Party, regardless of whether such interest is an allowed claim under
      the Bankruptcy Code), whether now existing or hereafter arising, due or
      to become due, direct or indirect, absolute or contingent, howsoever
      evidenced, held or acquired, as such obligations may be amended,
      modified, increased, extended, renewed or replaced from time to time,
      (ii) all obligations owing by the Credit Parties to the Lenders or any
      affiliate of a Lender, whenever arising, under any interest rate
      protection agreements, foreign currency exchange agreements or
      commodity purchase or option agreements to the extent permitted under
      the Credit Agreement, and (iii) all costs and expenses incurred in
      connection with enforcement and collection of the Secured Obligations,
      including reasonable attorneys' fees.

      2.    Pledge and Grant of Security Interest.  To secure the prompt
payment and performance in full when due, whether by lapse of time or
otherwise, of the Secured Obligations, each Pledgor hereby pledges and
assigns to the Collateral Agent, for the benefit of the holders of the
Secured Obligations, and grants to the Collateral Agent, for the benefit of
the holders of the Secured Obligations, a continuing security interest in any
and all right, title and interest of such Pledgor in and to the following,
whether now owned or existing or owned, acquired, or arising hereafter
(collectively, the "Pledged Collateral"):

            (a)   Pledged Shares.  (i) 100% (or, if less, the full amount
      owned by such Pledgor) of the issued and outstanding Capital Stock
      owned by such Pledgor of each Domestic Subsidiary set forth on Schedule
      2(a) attached hereto and (ii) 65% (or, if less, the full amount owned
      by such Pledgor) of the issued and outstanding shares of Capital Stock
      entitled to vote (within the meaning of Treas. Reg. Section
      1.956-2(c)(2)) ("Voting Equity") and 100% (or, if less, the full amount
      owned by such Pledgor) of the issued and outstanding Capital Stock not
      entitled to vote (within the meaning of Treas. Reg. Section
      1.956-2(c)(2)) ("Non-Voting Equity") owned by such Pledgor of each
      Foreign Subsidiary set forth on Schedule 2(a) attached hereto, in each
      case together with the certificates (or other agreements or
      instruments), if any, representing such Capital Stock, and all options
      and other rights, contractual or otherwise, with respect thereto
      (collectively, together with the Capital Stock described in Section
      2(b) and 2(c) below, the "Pledged Shares"), including, but not limited
      to, the following:

                  (A)   all shares, securities, membership interests or other
            equity interests representing a dividend on any of the Pledged
            Shares, or representing a distribution or return of capital upon
            or in respect of the Pledged Shares, or resulting from a stock
            split, revision, reclassification or other exchange therefor, and
            any subscriptions, warrants, rights or options issued to the
            holder of, or otherwise in respect of, the Pledged Shares; and

                  (B)   without affecting the obligations of the Pledgors
            under any provision prohibiting such action hereunder or under
            the Credit Agreement, in the event of any consolidation or merger
            involving the issuer of any Pledged Shares and in which such
            issuer is not the surviving entity, all Capital Stock of the
            successor entity formed by or resulting from such consolidation
            or merger.

            (b)   Additional Shares.  100% (or, if less, the full amount
      owned by such Pledgor) of the issued and outstanding Capital Stock
      owned by such Pledgor of any Person which hereafter becomes a Domestic
      Subsidiary and 65% (or, if less, the full amount owned by such Pledgor)
      of the Voting Equity and 100% (or, if less, the full amount owned by
      such Pledgor) of the Non-Voting Equity owned by such Pledgor of any
      Person which hereafter becomes a Foreign Subsidiary, including, without
      limitation, the certificates representing such Capital Stock.

            (c)   Proceeds.  All proceeds and products of the foregoing,
      however and whenever acquired and in whatever form.

      Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time
hereafter deliver additional Capital Stock to the Collateral Agent as
collateral security for the Secured Obligations.  Upon delivery to the
Collateral Agent, such additional Capital Stock shall be deemed to be part of
the Pledged Collateral of such Pledgor and shall be subject to the terms of
this Pledge Agreement whether or not Schedule 2(a) is amended to refer to
such additional Capital Stock.

      3.    Security for Secured Obligations.  The security interest created
hereby in the Pledged Collateral of each Pledgor constitutes continuing
collateral security for all of the obligations of the Credit Parties to the
holders of the Secured Obligations (including the Issuing Lender) and the
Collateral Agent, whenever arising, under the Credit Agreement, the
Collateral Documents or any of the other Credit Documents (including, but not
limited to, any interest accruing after the occurrence of a Bankruptcy Event
with respect to any Credit Party, regardless of whether such interest is an
allowed claim under the Bankruptcy Code), howsoever evidenced, created,
incurred or acquired, whether primary, secondary, direct, contingent, or
joint and several.

      4.    Delivery of the Pledged Collateral.  Each Pledgor hereby agrees
that:

            (a)   Each Pledgor shall deliver to the Collateral Agent (i)
      simultaneously with or prior to the execution and delivery of this
      Pledge Agreement, all certificates representing the Pledged Shares of
      such Pledgor and (ii) promptly upon the receipt thereof by or on behalf
      of a Pledgor, all other certificates and instruments constituting
      Pledged Collateral of a Pledgor.  Prior to delivery to the Collateral
      Agent, all such certificates and instruments constituting Pledged
      Collateral of a Pledgor shall be held in trust by such Pledgor for the
      benefit of the Collateral Agent pursuant hereto.  All such certificates
      shall be delivered in suitable form for transfer by delivery or shall
      be accompanied by duly executed instruments of transfer or assignment
      in blank, substantially in the form provided in Exhibit 4(a) attached
      hereto.

            (b)   Additional Securities.  If such Pledgor shall receive by
      virtue of its being or having been the owner of any Pledged Collateral,
      any (i) certificate, including without limitation, any certificate
      representing a dividend or distribution in connection with any increase
      or reduction of capital, reclassification, merger, consolidation, sale
      of assets, combination of shares or other equity interests, stock
      splits, spin-off or split-off, promissory notes or other instrument;
      (ii) option or right, whether as an addition to, substitution for, or
      an exchange for, any Pledged Collateral or otherwise; (iii) dividends
      payable in securities; or (iv) distributions of securities or other
      equity interests in connection with a partial or total liquidation,
      dissolution or reduction of capital, capital surplus or paid-in
      surplus, then such Pledgor shall receive such stock certificate,
      instrument, option, right or distribution in trust for the benefit of
      the Collateral Agent, shall segregate it from such Pledgor's other
      property and shall deliver it forthwith to the Collateral Agent in the
      exact form received together with any necessary endorsement and/or
      appropriate stock power duly executed in blank, substantially in the
      form provided in Exhibit 4(a), to be held by the Collateral Agent as
      Pledged Collateral and as further collateral security for the Secured
      Obligations.

            (c)   Financing Statements.  Each Pledgor shall execute and
      deliver to the Collateral Agent such UCC or other applicable financing
      statements as may be reasonably requested by the Collateral Agent in
      order to perfect and protect the security interest created hereby in
      the Pledged Collateral of such Pledgor.

      5.    Representations and Warranties.  Each Pledgor hereby represents
and warrants to the Collateral Agent, for the benefit of the holders of the
Secured Obligations, that so long as the Secured Obligations remain
outstanding and until all of the commitments relating thereto shall have been
terminated:

            (a)   Authorization of Pledged Shares.  The Pledged Shares are
      duly authorized and validly issued, are fully paid and nonassessable
      and are not subject to the preemptive rights of any Person.

            (b)   Title.  Each Pledgor has good and indefeasible title to the
      Pledged Collateral of such Pledgor and will at all times be the legal
      and beneficial owner of such Pledged Collateral free and clear of any
      Lien, other than Permitted Liens.  There exists no "adverse claim"
      within the meaning of Section 8-302 of the Uniform Commercial Code as
      in effect in the State of North Carolina as of the date hereof (the
      "UCC") with respect to the Pledged Shares of such Pledgor.

            (c)   Exercising of Rights.  The exercise by the Collateral Agent
      of its rights and remedies hereunder will not violate any law or
      governmental regulation or any material contractual restriction binding
      on or affecting a Pledgor or any of its property.

            (d)   Pledgor's Authority.  No authorization, approval or action
      by, and no notice or filing with any Governmental Authority or with the
      issuer of any Pledged Stock is required either (i) for the pledge made
      by a Pledgor or for the granting of the security interest by a Pledgor
      pursuant to this Pledge Agreement (except as have been already
      obtained) or (ii) for the exercise by the Collateral Agent or the
      holders of the Secured Obligations of their rights and remedies
      hereunder (except as may be required by laws affecting the offering and
      sale of securities).

            (e)   Security Interest/Priority.  This Pledge Agreement creates
      a valid security interest in favor of the Collateral Agent for the
      benefit of the holders of the Secured Obligations, in the Pledged
      Collateral.  The taking of possession by the Collateral Agent of the
      certificates representing the Pledged Shares and all other certificates
      and instruments constituting Pledged Collateral will perfect and
      establish the first priority of the Collateral Agent's security
      interest in the Pledged Shares and, when properly perfected by filing
      or registration, in all other Pledged Collateral represented by such
      Pledged Shares and instruments securing the Secured Obligations.
      Except as set forth in this Section 5(e), no action is necessary to
      perfect or otherwise protect such security interest.

            (f)   No Other Shares.  No Pledgor owns any Capital Stock in any
      Subsidiary other than as set forth on Schedule 2(a) attached hereto.

            (g)   Partnership and Membership Interests.  Except as previously
      disclosed to the Collateral Agent, none of the Pledged Shares
      consisting of partnership or limited liability company interests (i) is
      dealt in or traded on a securities exchange or in a securities market,
      (ii) by its terms expressly provides that it is a security governed by
      Article 8 of the UCC, (iii) is an investment company security, (iv) is
      held in a securities account or (v) constitutes a "security" or a
      "financial asset" as such terms are defined in Article 8 of the UCC.

      6.    Covenants.  Each Pledgor hereby covenants, that so long as the
Secured Obligations shall remain outstanding and until all of the commitments
relating thereto shall have been terminated, such Pledgor shall:

            (a)   Books and Records.  Mark its books and records (and shall
      cause the issuer of the Pledged Shares of such Pledgor to mark its
      books and records) to reflect the security interest granted to the
      Collateral Agent, for the benefit of the holders of the Secured
      Obligations, pursuant to this Pledge Agreement.

            (b)   Defense of Title.  Warrant and defend title to and
      ownership of the Pledged Collateral of such Pledgor at its own expense
      against the claims and demands of all other parties claiming an
      interest therein, keep the Pledged Collateral free from all Liens,
      except for Permitted Liens, and not sell, exchange, transfer, assign,
      lease or otherwise dispose of Pledged Collateral of such Pledgor or any
      interest therein, except as permitted under the Credit Agreement and
      the other Credit Documents.

            (c)   Further Assurances.  Promptly execute and deliver at its
      expense all further instruments and documents and take all further
      action that may be necessary and desirable or that the Collateral Agent
      may reasonably request in order to (i) perfect and protect the security
      interest created hereby in the Pledged Collateral of such Pledgor
      (including, without limitation, any and all action necessary to satisfy
      the Collateral Agent that the Collateral Agent has obtained a first
      priority perfected security interest in any Capital Stock); (ii) enable
      the Collateral Agent to exercise and enforce its rights and remedies
      hereunder in respect of the Pledged Collateral of such Pledgor; and
      (iii) otherwise effect the purposes of this Pledge Agreement,
      including, without limitation and if requested by the Collateral Agent,
      delivering to the Collateral Agent irrevocable proxies in respect of
      the Pledged Collateral of such Pledgor.

            (d)   Amendments.  Not make or consent to any amendment or other
      modification or waiver with respect to any of the Pledged Collateral of
      such Pledgor or enter into any agreement or allow to exist any
      restriction with respect to any of the Pledged Collateral of such
      Pledgor other than pursuant hereto or as may be permitted under the
      Credit Agreement.

            (e)   Compliance with Securities Laws.  File all reports and
      other information now or hereafter required to be filed by such Pledgor
      with the United States Securities and Exchange Commission and any other
      state, federal or foreign agency in connection with the ownership of
      the Pledged Collateral of such Pledgor.

            (f)   Issuance or Acquisition of Capital Stock.  Not, without
      executing and delivering, or causing to be executed and delivered, to
      the Collateral Agent such agreements, documents and instruments as the
      Collateral Agent may require, issue or acquire any Capital Stock
      consisting of an interest in a partnership or a limited liability
      company that (i) is dealt in or traded on a securities exchange or in a
      securities market, (ii) by its terms expressly provides that it is a
      security governed by Article 8 of the UCC, (iii) is an investment
      company security, (iv) is held in a securities account or (v)
      constitutes a "security" or a "financial asset" as such terms are
      defined in Article 8 of the UCC.

      7.    Advances by holders of the Secured Obligations.  On failure of
any Pledgor to perform any of the covenants and agreements contained herein,
the Collateral Agent may, at its sole option and in its sole discretion,
perform the same and in so doing may expend such sums as the Collateral Agent
may reasonably deem advisable in the performance thereof, including, without
limitation, the payment of any insurance premiums, the payment of any taxes,
a payment to obtain a release of a Lien or potential Lien, expenditures made
in defending against any adverse claim and all other expenditures which the
Collateral Agent or the holders of the Secured Obligations may make for the
protection of the security hereof or which may be compelled to make by
operation of law.  All such sums and amounts so expended shall be repayable
by the Pledgors on a joint and several basis promptly upon timely notice
thereof and demand therefor, shall constitute additional Secured Obligations
and shall bear interest from the date said amounts are expended at the
default rate specified in Section 3.1 of the Credit Agreement for Revolving
Loans that are Base Rate Loans.  No such performance of any covenant or
agreement by the Collateral Agent or the holders of the Secured Obligations
on behalf of any Pledgor, and no such advance or expenditure therefor, shall
relieve the Pledgors of any default under the terms of this Pledge Agreement,
the other Credit Documents or any other documents relating to the Secured
Obligations.  The holders of the Secured Obligations may make any payment
hereby authorized in accordance with any bill, statement or estimate procured
from the appropriate public office or holder of the claim to be discharged
without inquiry into the accuracy of such bill, statement or estimate or into
the validity of any tax assessment, sale, forfeiture, tax lien, title or
claim except to the extent such payment is being contested in good faith by a
Pledgor in appropriate proceedings and against which adequate reserves are
being maintained in accordance with GAAP.

      8.    Events of Default.  The occurrence of an event which under the
Credit Agreement would constitute an Event of Default shall be an Event of
Default hereunder (an "Event of Default").

      9.    Remedies.

            (a)   General Remedies.  Upon the occurrence of an Event of
      Default and during the continuation thereof, the Collateral Agent and
      the holders of the Secured Obligations shall have, in respect of the
      Pledged Collateral of any Pledgor, in addition to the rights and
      remedies provided herein, in the Credit Documents, in any other
      documents relating to the Secured Obligations, or by law, the rights
      and remedies of a secured party under the UCC or any other applicable
      law.

            (b)   Sale of Pledged Collateral.  Upon the occurrence of an
      Event of Default and during the continuation thereof, without limiting
      the generality of this Section and without notice, the Collateral Agent
      may, in its sole discretion, sell or otherwise dispose of or realize
      upon the Pledged Collateral, or any part thereof, in one or more
      parcels, at public or private sale, at any exchange or broker's board
      or elsewhere, at such price or prices and on such other terms as the
      Collateral Agent may deem commercially reasonable, for cash, credit or
      for future delivery or otherwise in accordance with applicable law.  To
      the extent permitted by law, any Lender may in such event, bid for the
      purchase of such securities.  Each Pledgor agrees that, to the extent
      notice of sale shall be required by law and has not been waived by such
      Pledgor, any requirement of reasonable notice shall be met if notice,
      specifying the place of any public sale or the time after which any
      private sale is to be made, is personally served on or mailed, postage
      prepaid, to such Pledgor, in accordance with the notice provisions of
      Section 11.1 of the Credit Agreement at least 10 days before the time
      of such sale.  The Collateral Agent shall not be obligated to make any
      sale of Pledged Collateral of such Pledgor regardless of notice of sale
      having been given.  The Collateral Agent may adjourn any public or
      private sale from time to time by announcement at the time and place
      fixed therefor, and such sale may, without further notice, be made at
      the time and place to which it was so adjourned.

            (c)   Private Sale.  Upon the occurrence of an Event of Default
      and during the continuation thereof, the Pledgors recognize that the
      Collateral Agent may deem it impracticable to effect a public sale of
      all or any part of the Pledged Shares or any of the securities
      constituting Pledged Collateral and that the Collateral Agent may,
      therefore, determine to make one or more private sales of any such
      securities to a restricted group of purchasers who will be obligated to
      agree, among other things, to acquire such securities for their own
      account, for investment and not with a view to the distribution or
      resale thereof.  Each Pledgor acknowledges that any such private sale
      may be at prices and on terms less favorable to the seller than the
      prices and other terms which might have been obtained at a public sale
      and, notwithstanding the foregoing, agrees that such private sale shall
      be deemed to have been made in a commercially reasonable manner and
      that the Collateral Agent shall have no obligation to delay sale of any
      such securities for the period of time necessary to permit the issuer
      of such securities to register such securities for public sale under
      the Securities Act.  Each Pledgor further acknowledges and agrees that
      any offer to sell such securities which has been (i) publicly
      advertised on a bona fide basis in a newspaper or other publication of
      general circulation in the financial community of New York, New York
      (to the extent that such offer may be advertised without prior
      registration under the Securities Act), or (ii) made privately in the
      manner described above shall be deemed to involve a "public sale" under
      the UCC, notwithstanding that such sale may not constitute a "public
      offering" under the Securities Act, and the Collateral Agent may, in
      such event, bid for the purchase of such securities.

            (d)   Retention of Pledged Collateral.  In addition to the rights
      and remedies hereunder, upon the occurrence of an Event of Default, the
      Collateral Agent may, after providing the notices required by Section
      9-505(2) of the UCC or otherwise complying with the requirements of
      applicable law of the relevant jurisdiction, retain all or any portion
      of the Pledged Collateral in satisfaction of the Secured Obligations.
      Unless and until the Collateral Agent shall have provided such notices,
      however, the Collateral Agent shall not be deemed to have retained any
      Pledged Collateral in satisfaction of any Secured Obligations for any
      reason.

            (e)   Deficiency.  In the event that the proceeds of any sale,
      collection or realization are insufficient to pay all amounts to which
      the Collateral Agent or the holders of the Secured Obligations are
      legally entitled, the Pledgors shall be jointly and severally liable
      for the deficiency, together with interest thereon at the default rate
      specified in Section 3.1 of the Credit Agreement for Revolving Loans
      that are Base Rate Loans, together with the costs of collection and the
      reasonable fees of any attorneys employed by the Collateral Agent to
      collect such deficiency.  Any surplus remaining after the full payment
      and satisfaction of the Secured Obligations shall be returned to the
      Pledgors or to whomsoever a court of competent jurisdiction shall
      determine to be entitled thereto.

      10.   Rights of the Collateral Agent.

            (a)   Power of Attorney.  In addition to other powers of attorney
      contained herein, each Pledgor hereby designates and appoints the
      Collateral Agent, on behalf of the holders of the Secured Obligations,
      and each of its designees or agents as attorney-in-fact of such
      Pledgor, irrevocably and with power of substitution, with authority to
      take any or all of the following actions upon the occurrence and during
      the continuance of an Event of Default:

                  (i)   to demand, collect, settle, compromise, adjust and
            give discharges and releases concerning the Pledged Collateral of
            such Pledgor, all as the Collateral Agent may reasonably
            determine;

                  (ii)  to commence and prosecute any actions at any court
            for the purposes of collecting any of the Pledged Collateral of
            such Pledgor and enforcing any other right in respect thereof;

                  (iii) to defend, settle or compromise any action brought
            and, in connection therewith, give such discharge or release as
            the Collateral Agent may deem reasonably appropriate;

                  (iv)  to pay or discharge taxes, liens, security interests,
            or other encumbrances levied or placed on or threatened against
            the Pledged Collateral of such Pledgor;

                  (v)   to direct any parties liable for any payment under
            any of the Pledged Collateral to make payment of any and all
            monies due and to become due thereunder directly to the
            Collateral Agent or as the Collateral Agent shall direct;

                  (vi)  to receive payment of and receipt for any and all
            monies, claims, and other amounts due and to become due at any
            time in respect of or arising out of any Pledged Collateral of
            such Pledgor;

                  (vii) to sign and endorse any drafts, assignments, proxies,
            stock powers, verifications, notices and other documents relating
            to the Pledged Collateral of such Pledgor;

                  (viii)      to settle, compromise or adjust any suit,
            action or proceeding described above and, in connection
            therewith, to give such discharges or releases as the Collateral
            Agent may deem reasonably appropriate;

                  (ix)  to execute and deliver all assignments, conveyances,
            statements, financing statements, renewal financing statements,
            pledge agreements, affidavits, notices and other agreements,
            instruments and documents that the Collateral Agent may determine
            necessary in order to perfect and maintain the security interests
            and liens granted in this Pledge Agreement and in  order to fully
            consummate all of the transactions contemplated therein;

                  (x)   to exchange any of the Pledged Collateral of such
            Pledgor or other property upon any merger, consolidation,
            reorganization, recapitalization or other readjustment of the
            issuer thereof and, in connection therewith, deposit any of the
            Pledged Collateral of such Pledgor with any committee,
            depository, transfer agent, registrar or other designated agency
            upon such terms as the Collateral Agent may determine;

                  (xi)  to vote for a shareholder resolution, or to sign an
            instrument in writing, sanctioning the transfer of any or all of
            the Pledged Shares of such Pledgor into the name of the
            Collateral Agent or one or more of the holders of the Secured
            Obligations or into the name of any transferee to whom the
            Pledged Shares of such Pledgor or any part thereof may be sold
            pursuant to Section 10 hereof; and

                  (xii) to do and perform all such other acts and things as
            the Collateral Agent may reasonably deem to be necessary, proper
            or convenient in connection with the Pledged Collateral of such
            Pledgor.

      This power of attorney is a power coupled with an interest and shall be
      irrevocable (i) for so long as any of the Secured Obligations remain
      outstanding, any Credit Document or any other documents relating to the
      Secured Obligations,  is in effect or any Letter of Credit shall remain
      outstanding and (ii) until all of the Commitments shall have been
      terminated.  The Collateral Agent shall be under no duty to exercise or
      withhold the exercise of any of the rights, powers, privileges and
      options expressly or implicitly granted to the Collateral Agent in this
      Pledge Agreement, and shall not be liable for any failure to do so or
      any delay in doing so.  The Collateral Agent shall not be liable for
      any act or omission or for any error of judgment or any mistake of fact
      or law in its individual capacity or its capacity as attorney-in-fact
      except acts or omissions resulting from its gross negligence or willful
      misconduct.  This power of attorney is conferred on the Collateral
      Agent solely to protect, preserve and realize upon its security
      interest in Pledged Collateral.

            (b)   Assignment by the Collateral Agent.  The Collateral Agent
      may from time to time assign the Secured Obligations and any portion
      thereof and/or the Pledged Collateral and any portion thereof, and the
      assignee shall be entitled to all of the rights and remedies of the
      Collateral Agent under this Pledge Agreement in relation thereto.

            (c)   The Collateral Agent's Duty of Care.  Other than the
      exercise of reasonable care to assure the safe custody of the Pledged
      Collateral while being held by the Collateral Agent hereunder, the
      Collateral Agent shall have no duty or liability to preserve rights
      pertaining thereto, it being understood and agreed that  Pledgors shall
      be responsible for preservation of all rights in the Pledged Collateral
      of such Pledgor, and the Collateral Agent shall be relieved of all
      responsibility for Pledged Collateral upon surrendering it or tendering
      the surrender of it to the Pledgors.  The Collateral Agent shall be
      deemed to have exercised reasonable care in the custody and
      preservation of the Pledged Collateral in its possession if such
      Pledged Collateral is accorded treatment substantially equal to that
      which the Collateral Agent accords its own property, which shall be no
      less than the treatment employed by a reasonable and prudent agent in
      the industry, it being understood that the Collateral Agent shall not
      have responsibility for (i) ascertaining or taking action with respect
      to calls, conversions, exchanges, maturities, tenders or other matters
      relating to any Pledged Collateral, whether or not the Collateral Agent
      has or is deemed to have knowledge of such matters; or (ii) taking any
      necessary steps to preserve rights against any parties with respect to
      any Pledged Collateral.

            (d)   Voting Rights in Respect of the Pledged Collateral.

                  (i)   So long as no Event of Default shall have occurred
            and be continuing, to the extent permitted by law, each Pledgor
            may exercise any and all voting and other consensual rights
            pertaining to the Pledged Collateral of such Pledgor or any part
            thereof for any purpose not inconsistent with the terms of this
            Pledge Agreement or the Credit Agreement; and

                  (ii)  Upon the occurrence and during the continuance of an
            Event of Default, at the election of the Collateral Agent, all
            rights of a Pledgor to exercise the voting and other consensual
            rights which it would otherwise be entitled to exercise pursuant
            to paragraph (i) of this subsection shall cease and all such
            rights shall thereupon become vested in the Collateral Agent
            which shall then have the sole right to exercise such voting and
            other consensual rights.

            (e)   Dividend Rights in Respect of the Pledged Collateral.

                  (i)   So long as no Event of Default shall have occurred
            and be continuing and subject to Section 4(b) hereof, each
            Pledgor may receive and retain any and all dividends (other than
            stock dividends and other dividends constituting Pledged
            Collateral which are addressed hereinabove) or interest paid in
            respect of the Pledged Collateral to the extent they are allowed
            under the Credit Agreement.

                  (ii)  Upon the occurrence and during the continuance of an
            Event of Default:

                        (A)   at the election of the Collateral Agent, all
                  rights of a Pledgor to receive the dividends and interest
                  payments which it would otherwise be authorized to receive
                  and retain pursuant to paragraph (i) of this Section shall
                  cease and all such rights shall thereupon be vested in the
                  Collateral Agent which shall then have the sole right to
                  receive and hold as Pledged Collateral such dividends and
                  interest payments; and

                        (B)   all dividends and interest payments which are
                  received by a Pledgor contrary to the provisions of
                  paragraph (A) of this Section shall be received in trust
                  for the benefit of the Collateral Agent, shall be
                  segregated from other property or funds of such Pledgor,
                  and shall be forthwith paid over to the Collateral Agent as
                  Pledged Collateral in the exact form received, to be held
                  by the Collateral Agent as Pledged Collateral and as
                  further collateral security for the Secured Obligations.

            (f)   Release of Pledged Collateral.  The Collateral Agent may
      release any of the Pledged Collateral from this Pledge Agreement or may
      substitute any of the Pledged Collateral for other Pledged Collateral
      without altering, varying or diminishing in any way the force, effect,
      lien, pledge or security interest of this Pledge Agreement as to any
      Pledged Collateral not expressly released or substituted, and this
      Pledge Agreement shall continue as a first priority lien on all Pledged
      Collateral not expressly released or substituted.

      11.   Rights of Required Lenders.  All rights of the Collateral Agent
hereunder, if not exercised by the Collateral Agent, may be exercised by the
Required Lenders.

      12.   Application of Proceeds.  Upon the occurrence and during the
continuance of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of any Pledged Collateral, when received by the
Collateral Agent or any of the holders of the Secured Obligations in cash or
its equivalent, will be applied in reduction of the Secured Obligations in
the order set forth in the Credit Agreement or other document relating to the
Secured Obligations, and each Pledgor irrevocably waives the right to direct
the application of such payments and proceeds and acknowledges and agrees
that the Collateral Agent shall have the continuing and exclusive right to
apply and reapply any and all such payments and proceeds in the Collateral
Agent's sole discretion, notwithstanding any entry to the contrary upon any
of its books and records.

      13.   Costs of Counsel.  At all times hereafter, the Pledgors agree to
promptly pay upon demand any and all reasonable costs and expenses of the
Collateral Agent or the holders of the Secured Obligations, (a) as required
under Section 11.5 of the Credit Agreement and (b) as necessary to protect
the Pledged Collateral or to exercise any rights or remedies under this
Pledge Agreement or with respect to any Pledged Collateral.  All of the
foregoing costs and expenses shall constitute Secured Obligations hereunder.

      14.   Continuing Agreement.

            (a)   This Pledge Agreement shall be a continuing agreement in
      every respect and shall remain in full force and effect so long as the
      Secured Obligations shall remain outstanding and until all of the
      commitments relating thereto shall have been terminated (other than any
      obligations with respect to the indemnities and the representations and
      warranties set forth in the Credit Documents).  Upon such payment and
      termination, this Pledge Agreement shall be automatically terminated
      and the Collateral Agent and the holders of the Secured Obligations
      shall, upon the request and at the expense of the Pledgors, forthwith
      release all of its liens and security interests hereunder and shall
      executed and deliver all UCC termination statements and/or other
      documents reasonably requested by the Pledgors evidencing such
      termination.  Notwithstanding the foregoing all releases and
      indemnities provided hereunder shall survive termination of this Pledge
      Agreement.

            (b)   This Pledge Agreement shall continue to be effective or be
      automatically reinstated, as the case may be, if at any time payment,
      in whole or in part, of any of the Secured Obligations is rescinded or
      must otherwise be restored or returned by the Collateral Agent or any
      holder of the Secured Obligations as a preference, fraudulent
      conveyance or otherwise under any bankruptcy, insolvency or similar
      law, all as though such payment had not been made; provided that in the
      event payment of all or any part of the Secured Obligations is
      rescinded or must be restored or returned, all reasonable costs and
      expenses (including without limitation any reasonable legal fees and
      disbursements) incurred by the Collateral Agent or any holder of the
      Secured Obligations in defending and enforcing such reinstatement shall
      be deemed to be included as a part of the Secured Obligations.

      15.   Amendments; Waivers; Modifications.  This Pledge Agreement and
the provisions hereof may not be amended, waived, modified, changed,
discharged or terminated except as set forth in Section 11.6 of the Credit
Agreement.

      16.   Successors in Interest.  This Pledge Agreement shall create a
continuing security interest in the Collateral and shall be binding upon each
Pledgor and its successors and assigns, and shall inure, together with the
rights and remedies of the Collateral Agent and the holders of the Secured
Obligations hereunder, to the benefit of the Collateral Agent and the holders
of the Secured Obligations and their successors and permitted assigns;
provided, however, that none of the Pledgors may assign its rights or
delegate its duties hereunder without the prior written consent of each
Lender or the Required Lenders, as required by the Credit Agreement.  To the
fullest extent permitted by law, each Pledgor hereby releases the Collateral
Agent and each Lender, and its successors and assigns, from any liability for
any act or omission relating to this Pledge Agreement or the Collateral,
except for any liability arising from the gross negligence or willful
misconduct of the Collateral Agent, or such Lender, or its officers,
employees or agents.

      17.   Notices.  All notices required or permitted to be given under
this Pledge Agreement shall be given as provided in the Credit Agreement.

      18.   Counterparts.  This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall
be an original, but all of which shall constitute one and the same
instrument.  It shall not be necessary in making proof of this Pledge
Agreement to produce or account for more than one such counterpart.

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

      20.   Governing Law; Submission to Jurisdiction; Venue.

            (a)   THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
      PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA.  Any legal
      action or proceeding with respect to this Pledge Agreement may be
      brought in the state or federal courts located in Charlotte, North
      Carolina, and, by execution and delivery of this Pledge Agreement, each
      Pledgor hereby irrevocably accepts for itself and in respect of its
      property, generally and unconditionally, the jurisdiction of such
      courts.  Each Pledgor further irrevocably consents to the service of
      process out of any of the aforementioned courts in any such action or
      proceeding by the mailing of copies thereof by registered or certified
      mail, postage prepaid, to it at the address for notices pursuant to
      Section 11.1 of the Credit Agreement, such service to become effective
      three days after such mailing.  Nothing herein shall affect the right
      of the Collateral Agent to serve process in any other manner permitted
      by law or to commence legal proceedings or to otherwise proceed against
      any Pledgor in any other jurisdiction.

            (b)   Each Pledgor hereby irrevocably waives any objection which
      it may now or hereafter have to the laying of venue of any of the
      aforesaid actions or proceedings arising out of or in connection with
      this Pledge Agreement brought in the courts referred to in subsection
      (a) hereof and hereby further irrevocably waives and agrees not to
      plead or claim in any such court that any such action or proceeding
      brought in any such court has been brought in an inconvenient forum.

      21.   Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY APPLICABLE LAW,
EACH OF THE PARTIES TO THIS PLEDGE AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

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

      23.   Entirety.  This Pledge Agreement, the other Credit Documents and
the other documents relating to the Secured Obligations represent the entire
agreement of the parties hereto and thereto, and supersede all prior
agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents, the
other documents relating to the Secured Obligations or the transactions
contemplated herein and therein.

      24.   Survival.  All representations and warranties of the Pledgors
hereunder shall survive the execution and delivery of this Security
Agreement, the other Credit Documents and the other documents relating to the
Secured Obligations, the delivery of the Notes and the extension of credit
thereunder or in connection therewith.

      25.   Other Security.  To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Pledged
Collateral (including, without limitation, real and other personal property
owned by a Pledgor), or by a guarantee, endorsement or property of any other
Person, then the Collateral Agent and the holders of the Secured Obligations
shall have the right to proceed against such other property, guarantee or
endorsement upon the occurrence of any Event of Default, and the Collateral
Agent and the holders of the Secured Obligations have the right, in their
sole discretion, to determine which rights, security, liens, security
interests or remedies the Collateral Agent and the holders of the Secured
Obligations shall at any time pursue, relinquish, subordinate, modify or take
with respect thereto, without in any way modifying or affecting any of them
or the Secured Obligations or any of the rights of the Collateral Agent and
the holders of the Secured Obligations under this Pledge Agreement, under any
other of the Credit Documents or any other document relating to the Secured
Obligations.

      26.   Joint and Several Obligations of Pledgors.

            (a)   Each of the Pledgors is accepting joint and several
      liability hereunder in consideration of the financial accommodation to
      be provided by the Lenders under the Credit Agreement, for the mutual
      benefit, directly and indirectly, of each of the Pledgors and in
      consideration of the undertakings of each of the Pledgors to accept
      joint and several liability for the obligations of each of them.

            (b)   Each of the Pledgors jointly and severally hereby
      irrevocably and unconditionally accepts, not merely as a surety but
      also as a co-debtor, joint and several liability with the other
      Pledgors with respect to the payment and performance of all of the
      Secured Obligations arising under this Pledge Agreement, the other
      Credit Documents and the other documents relating to the Secured
      Obligations, it being the intention of the parties hereto that all the
      Secured Obligations shall be the joint and several obligations of each
      of the Pledgors without preferences or distinction among them.

            (c)   Notwithstanding any provision to the contrary contained
      herein, in any other of the Credit Documents or in any other documents
      relating to the Secured Obligations, the obligations of each Guarantor
      under the Credit Agreement and the other Credit Documents shall be
      limited to an aggregate amount equal to the largest amount that would
      not render such obligations subject to avoidance under Section 548 of
      the Bankruptcy Code or any comparable provisions of any applicable
      state law.

      27.   Rights of Required Lenders.  All rights of the Collateral Agent
hereunder, if not exercised by the Collateral Agent, may be exercised by the
Required Lenders.

                 [remainder of page intentionally left blank]

<PAGE>

                              REHABCARE GROUP, INC.
                                PLEDGE AGREEMENT
      Each of the parties hereto has caused a counterpart of this Pledge
Agreement to be duly executed and delivered as of the date first above
written.

PLEDGORS:                     REHABCARE GROUP, INC.,
                              a Delaware Corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              REHABCARE GROUP THERAPY SERVICES, INC.,
                              a Missouri corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              SALT LAKE PHYSICAL THERAPY ASSOCIATES, INC.,
                              a Utah corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              ALLSTAFF, INC.,
                              an Iowa corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              WESLEY MEDICAL RESOURCES, INC.,
                              a California corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                          [Signature Pages Continue]

<PAGE>

                              HEALTHCARE STAFFING SOLUTIONS, INC.,
                              a Massachusetts corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              EAI HEALTHCARE STAFFING SOLUTIONS, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              REHABCARE GROUP EAST, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              REHABCARE GROUP MANAGEMENT SERVICES, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              REHABCARE TEXAS HOLDINGS, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              HEALTH TOUR MANAGEMENT, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President
                          [Signature Pages Continue]

<PAGE>

                              REHABCARE GROUP OF CALIFORNIA, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              STARMED HEALTH PERSONNEL, INC.,
                              a Delaware corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              THERAPEUTIC SYSTEMS, LTD.,
                              an Illinois corporation

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              STARMED MANAGEMENT, L.L.C.,
                              a Delaware limited liability company

                              By:   Healthcare Staffing Solutions, Inc.,
                                    a Massachusetts corporation, as its Member

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Vice President

                              REHABCARE GROUP OF TEXAS, L.P.,
                              a Texas limited liability company

                              By:   Rehabcare Group, Inc.,
                                    a Delaware corporation, as its General
Partner

                                    By: /s/ Gregory J. Eisenhauer
                                    Name:   Gregory J. Eisenhauer
                                    Title:  Senior Vice President, Finance

                          [Signature Pages Continue]

<PAGE>

Accepted and agreed to as of the date first above written.

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

By:
Name:
Title:

<PAGE>

                                Schedule 2(a)

                                      to

                               Pledge Agreement

                         dated as of August 29, 2000

                      in favor of Bank of America, N.A.

                             as Collateral Agent

                                PLEDGED STOCK

                                           Number of  Certificate  Percentage
       Pledgor               Issuer         Shares      Number     Ownership

RehabCare Group, Inc.

<PAGE>

                                 Exhibit 4(a)

                                      to

                               Pledge Agreement

                         dated as of August 29, 2000

                      in favor of Bank of America, N.A.

                             as Collateral Agent

                           Irrevocable Stock Power

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
to

the following shares of capital stock of _____________________, a
____________ corporation:

                  No. of Shares                       Certificate No.

and irrevocably appoints __________________________________ its agent and
attorney-in-fact to transfer all or any part of such capital stock and to
take all necessary and appropriate action to effect any such transfer.  The
agent and attorney-in-fact may substitute and appoint one or more persons to
act for him.  The effectiveness of a transfer pursuant to this stock power
shall be subject to any and all transfer restrictions referenced on the face
of the certificates evidencing such interest or in the certificate of
incorporation or bylaws of the subject corporation, to the extent they may
from time to time exist.

                                    _______________________________

                                    By:
                                    Name:
                                    Title:SECURITY AGREEMENT

      THIS SECURITY AGREEMENT (this "Security Agreement"), dated
as of August 29, 2000, is by and among the parties identified as
"Grantors" on the signature pages hereto and such other parties as
may become Grantors hereunder after the date hereof (individually
a "Grantor", and collectively the "Grantors") and BANK OF
AMERICA, N.A., as collateral agent (in such capacity, the
"Collateral Agent") for the holders of the Secured Obligations
referenced below.

                        W I T N E S S E T H

      WHEREAS, a $125 million credit facility has been established
in favor of RehabCare Group, Inc., a Delaware corporation (the
"Borrower"), pursuant to the terms of that Credit Agreement dated
as of the date hereof (as amended, modified, increased, extended,
renewed or replaced, the "Credit Agreement") among the Borrower,
the subsidiaries and affiliates identified therein, as
guarantors, the lenders identified therein and Bank of America,
N.A., as Administrative Agent;

      WHEREAS, this Security Agreement is required under the terms
of the Credit Agreement;

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

      1.   Definitions.  Terms used herein but not otherwise
defined herein shall have the meanings assigned to such terms in
the Credit Agreement.  In addition, the following terms which are
defined in the Uniform Commercial Code in effect on the date
hereof in the State of North Carolina are used herein as so
defined:  Accounts, Chattel Paper, Deposit Accounts, Documents,
Equipment, Farm Products, Fixtures, General Intangibles,
Instruments, Inventory, Investment Property and Proceeds.  As
used herein:

           "Copyright License" means any written agreement, naming
      any Grantor as licensor, granting any right under any
      Copyright including, without limitation, any thereof
      referred to in Schedule 1(b) hereto.

           "Copyrights" means (a) all registered United States
      copyrights in all Works, now existing or hereafter created
      or acquired, all registrations and recordings thereof, and
      all applications in connection therewith, including, without
      limitation, registrations, recordings and applications in
      the United States Copyright office including, without
      limitation, any thereof referred to in Schedule 1(b) hereto,
      and (b) all renewals thereof including, without limitation,
      any thereof referred to in Schedule 1(b) hereto.

           "Patent License" means any agreement, whether written
      or oral, providing for the grant by or to a Grantor of any
      right to manufacture, use or sell any invention covered by a
      Patent, including, without limitation, any thereof referred
      to in Schedule 1(b) hereto.

           "Patents" means (a) all letters patent of the United
      States or any other country and all reissues and extensions
      thereof, including, without limitation, any letters patent
      referred to in Schedule 1(b) hereto, and (b) all
      applications for letters patent of the United States or any
      other country and all divisions, continuations and
      continuations-in-part thereof, including, without
      limitation, any thereof referred to in Schedule 1(b) hereto.

           "Secured Obligations" means, without duplication, (i)
      all of the obligations of the Credit Parties to the Lenders
      and the Administrative Agent, whenever arising, under the
      Credit Agreement or any of the other Credit Documents
      (including, but not limited to, any interest accruing after
      the occurrence of a Bankruptcy Event with respect to any
      Credit Party, regardless of whether such interest is an
      allowed claim under the Bankruptcy Code), whether now
      existing or hereafter arising, due or to become due, direct
      or indirect, absolute or contingent, howsoever evidenced,
      held or acquired, as such obligations may be amended,
      modified, increased, extended, renewed or replaced from time
      to time, (ii) all of the obligations owing by the Credit
      Parties to the Lenders or any affiliate of a Lender,
      whenever arising, under any interest rate protection
      agreements, foreign currency exchange agreements or
      commodity purchase or option agreements to the extent
      permitted under the Credit Agreement, and (iii) all costs
      and expenses incurred in connection with enforcement and
      collection of the Secured Obligations, including reasonable
      attorneys' fees.

           "Trademark License" means any agreement, written or
      oral, providing for the grant by or to a Grantor of any
      right to use any Trademark, including, without limitation,
      any thereof referred to in Schedule 1(b) hereto.

           "Trademarks" means (a) all trademarks, trade names,
      corporate names, company names, business names, fictitious
      business names, trade styles, service marks, logos and other
      source or business identifiers, and the goodwill associated
      therewith, now existing or hereafter adopted or acquired,
      all registrations and recordings thereof, and all
      applications in connection therewith, whether in the United
      States Patent and Trademark Office or in any similar office
      or agency of the United States, any State thereof or any
      other country or any political subdivision thereof, or
      otherwise, including, without limitation, any thereof
      referred to in Schedule 1(b) hereto, and (b) all renewals
      thereof.

           "UCC" shall have the meaning assigned to such term in
Section 8(a) hereof.

           "Work" means any work that is subject to copyright
      protection pursuant to Title 17 of the United States Code.

      2.   Grant of Security Interest in the Collateral.  To
secure the prompt payment and performance in full when due,
whether by lapse of time, acceleration or otherwise, of the
Secured Obligations, each Grantor hereby grants to the Collateral
Agent, for the benefit of the holders of the Secured Obligations,
a continuing security interest in, and a right to set off
against, any and all right, title and interest of such Grantor in
and to the following, whether now owned or existing or owned,
acquired, or arising hereafter (collectively, the "Collateral"):

                (a)  all Accounts;

                (b)  all cash and Cash Equivalents maintained on
                deposit with the Collateral Agent;

                (c)  all Chattel Paper;

                (d)  all Copyrights;

                (e)  all Copyright Licenses;

                (f)  all Deposit Accounts;

                (g)  all Documents;

                (h)  all Equipment;

                (i)  all Fixtures;

                (j)  all General Intangibles;

                (k)  all Instruments;

                (l)  all Inventory;

                (m)  all Investment Property;

                (n)  all Patents;

                (o)  all Patent Licenses;

                (p)  all Trademarks;

                (q)  all Trademark Licenses;

                (r)  all books, records, ledger cards, files,
                correspondence, computer programs, tapes, disks,
                and related data processing software (owned by
                such Grantor or in which it has an interest) that
                at any time evidence or contain information
                relating to any Collateral or are otherwise
                necessary or helpful in the collection thereof or
                realization thereupon; and

                (s)  to the extent not otherwise included, all
                Proceeds and products of any and all of the
                foregoing.

      The Grantors and the Collateral Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree
that the security interest created hereby in the Collateral (i)
constitutes continuing collateral security for all of the Secured
Obligations, whether now existing or hereafter arising and (ii)
is not to be construed as an assignment of any Copyrights,
Copyright Licenses, Patents, Patent Licenses, Trademarks or
Trademark Licenses.

      3.   Provisions Relating to Accounts.

           (a)  Anything herein to the contrary notwithstanding,
      each of the Grantors shall remain liable under each of the
      Accounts to observe and perform all the conditions and
      obligations to be observed and performed by it thereunder,
      all in accordance with the terms of any agreement giving
      rise to each such Account.  Neither the Collateral Agent nor
      any holder of the Secured Obligations shall have any
      obligation or liability under any Account (or any agreement
      giving rise thereto) by reason of or arising out of this
      Security Agreement or the receipt by the Collateral Agent or
      any holder of the Secured Obligations of any payment
      relating to such Account pursuant hereto, nor shall the
      Collateral Agent or any holder of the Secured Obligations be
      obligated in any manner to perform any of the obligations of
      a Grantor under or pursuant to any Account (or any agreement
      giving rise thereto), to make any payment, to make any
      inquiry as to the nature or the sufficiency of any payment
      received by it or as to the sufficiency of any performance
      by any party under any Account (or any agreement giving rise
      thereto), to present or file any claim, to take any action
      to enforce any performance or to collect the payment of any
      amounts which may have been assigned to it or to which it
      may be entitled at any time or times.

           (b)  Once during each calendar year or at any time
      after the occurrence and during the continuation of an Event
      of Default, the Collateral Agent shall have the right, but
      not the obligation, to make test verifications of the
      Accounts in any manner and through any medium that it
      reasonably considers advisable, and the Grantors shall
      furnish all such assistance and information as the
      Collateral Agent may require in connection with such test
      verifications.  From time to time, upon the Collateral
      Agent's request, the Grantors shall furnish to the
      Collateral Agent reports showing reconciliations, aging and
      test verifications of, and trial balances for, the
      Accounts.  At any time after the occurrence and during the
      continuation of an Event of Default, the Collateral Agent in
      its own name or in the name of others may communicate with
      account debtors on the Accounts to verify with them to the
      Collateral Agent's satisfaction the existence, amount and
      terms of any Accounts.

      4.   Representations and Warranties.  Each Grantor hereby
represents and warrants to the Collateral Agent, for the benefit
of the holders of the Secured Obligations, that so long as the
Secured Obligations shall remain outstanding and until the
commitments relating thereto shall have been terminated:

           (a)  Chief Executive Office; Books & Records.  Each
      Grantor's chief executive office and chief place of business
      is (and for the prior four months have been) located at the
      locations set forth on Schedule 4(a) hereto, and each
      Grantor keeps its books and records at such locations.

           (b)  Location of Collateral.  The location of all
      Collateral owned by each Grantor is as shown on Schedule
      4(b) hereto.

           (c)  Ownership.  Each Grantor is the legal and
      beneficial owner of its Collateral and has the right to
      pledge, sell, assign or transfer the same.  Each Grantor's
      legal name is as shown in this Security Agreement and no
      Grantor has in the past four months changed its name, been
      party to a merger, consolidation or other change in
      structure or used any tradename except as set forth in
      Schedule 4(c) attached hereto.

           (d)  Security Interest/Priority.  This Security
      Agreement creates a valid security interest in favor of the
      Collateral Agent, for the benefit of the holders of the
      Secured Obligations, in the Collateral of such Grantor and,
      when properly perfected by filing, shall constitute a valid
      perfected security interest in such Collateral, to the
      extent such security interest can be perfected by filing
      under the UCC, free and clear of all Liens except for
      Permitted Liens.

           (e)  Farm Products.  None of the Collateral
      constitutes, or is the Proceeds of, Farm Products.

           (f)  Accounts.  (i) Each Account of the Grantors and
      the papers and documents relating thereto are genuine and in
      all material respects what they purport to be, (ii) each
      Account arises out of (A) a bona fide sale of goods sold and
      delivered by such Grantor (or is in the process of being
      delivered) or (B) services theretofore actually rendered by
      such Grantor to, the account debtor named therein, (iii) no
      Account of a Grantor is evidenced by any Instrument or
      Chattel Paper unless such Instrument or Chattel Paper has
      been theretofore endorsed over and delivered to the
      Collateral Agent and (iv) no surety bond was required or
      given in connection with any Account of a Grantor or the
      contracts or purchase orders out of which they arose.

           (g)  Inventory.  No Inventory is held by a Grantor
      pursuant to consignment, sale or return, sale on approval or
      similar arrangement.

           (h)  Copyrights, Patents and Trademarks.

                (i)  Schedule 1(b) hereto includes all Copyrights,
           Copyright Licenses, Patents, Patent Licenses,
           Trademarks and Trademark Licenses owned by the Grantors
           in their own names as of the date hereof.

                (ii) To the best of each Grantor's knowledge, each
           Copyright, Patent and Trademark of such Grantor is
           valid, subsisting, unexpired, enforceable and has not
           been abandoned.

                (iii)Except as set forth in Schedule 1(b) hereto,
           none of such Copyrights, Patents and Trademarks is the
           subject of any licensing or franchise agreement.

                (iv) To the best of each Grantor's knowledge, no
           holding, decision or judgment has been rendered by any
           Governmental Authority which would limit, cancel or
           question the validity of any Copyright, Patent or
           Trademark.

                (v)  No action or proceeding is pending seeking to
           limit, cancel or question the validity of any
           Copyright, Patent or Trademark, or which, if adversely
           determined, would have a material adverse effect on the
           value of any Copyright, Patent or Trademark.

                (vi) All applications pertaining to the
           Copyrights, Patents and Trademarks of each Grantor have
           been duly and properly filed, and all registrations or
           letters pertaining to such Copyrights, Patents and
           Trademarks have been duly and properly filed and
           issued, and all of such Copyrights, Patents and
           Trademarks are valid and enforceable.

                (vii)No Grantor has made any assignment or
           agreement in conflict with the security interest in the
           Copyrights, Patents or Trademarks of each Grantor
           hereunder.

      5.   Covenants.  Each Grantor covenants that, so long as the
Secured Obligations shall remain outstanding and until the
commitments relating thereto shall have been terminated, such
Grantor shall:

           (a)  Other Liens.  Defend the Collateral against the
      claims and demands of all other parties claiming an interest
      therein, keep the Collateral free from all Liens, except for
      Permitted Liens, and not sell, exchange, transfer, assign,
      lease or otherwise dispose of the Collateral or any interest
      therein, except as permitted under the Credit Agreement.

           (b)  Preservation of Collateral.  Keep the Collateral
      in good order, condition and repair and not use the
      Collateral in violation of the provisions of this Security
      Agreement or any other agreement relating to the Collateral
      or any policy insuring the Collateral or any applicable
      statute, law, bylaw, rule, regulation or ordinance.

           (c)  Instruments/Chattel Paper.  If any amount payable
      under or in connection with any of the Collateral shall be
      or become evidenced by any Instrument or Chattel Paper,
      immediately deliver such Instrument or Chattel Paper to the
      Collateral Agent, duly endorsed in a manner satisfactory to
      the Collateral Agent, to be held as Collateral pursuant to
      this Security Agreement.

           (d)  Change in Location.  Not, without providing 10
      days prior written notice to the Collateral Agent, (a)
      change the location of its chief executive office and chief
      place of business (as well as its books and records) from
      the locations set forth on Schedule 4(a) hereto, (b) change
      the location of its Collateral from the locations set forth
      for such Grantor on Schedule 4(b) hereto, or (c) change its
      name, be party to a merger, consolidation or other change in
      structure or use any tradename other than as set forth on
      Schedule 4(c) attached hereto.  Promptly upon the Collateral
      Agent's request, each Grantor shall execute such amendments
      to any previously filed financing statements as the
      Collateral Agent may require.

           (e)  Inspection.  Upon reasonable notice, and during
      reasonable hours, at all times allow the Collateral Agent or
      its representatives to visit and inspect the Collateral as
      set forth in Section 7.10 of the Credit Agreement.

           (f)  Perfection of Security Interest.  Execute and
      deliver to the Collateral Agent such agreements, assignments
      or instruments (including affidavits, notices,
      reaffirmations and amendments and restatements of existing
      documents, as the Collateral Agent may reasonably request)
      and do all such other things as the Collateral Agent may
      reasonably deem necessary or appropriate (i) to assure to
      the Collateral Agent its security interests hereunder,
      including (A) such financing statements (including renewal
      statements) or amendments thereof or supplements thereto or
      other instruments as the Collateral Agent may from time to
      time reasonably request in order to perfect and maintain the
      security interests granted hereunder in accordance with the
      UCC, (B) with regard to Copyrights, a Notice of Grant of
      Security Interest in Copyrights in the form of Schedule
      5(f)(i), (C) with regard to Patents, a Notice of Grant of
      Security Interest in Patents for filing with the United
      States Patent and Trademark Office in the form of Schedule
      5(f)(ii) attached hereto and (D) with regard to Trademarks,
      a Notice of Grant of Security Interest in Trademarks for
      filing with the United States Patent and Trademark Office in
      the form of Schedule 5(f)(iii) attached hereto, (ii) to
      consummate the transactions contemplated hereby and (iii) to
      otherwise protect and assure the Collateral Agent of its
      rights and interests hereunder.  To that end, each Grantor
      agrees that the Collateral Agent may file one or more
      financing statements disclosing the Collateral Agent's
      security interest in any or all of the Collateral of such
      Grantor without, to the extent permitted by law, such
      Grantor's signature thereon, and further each Grantor also
      hereby irrevocably makes, constitutes and appoints the
      Collateral Agent, its nominee or any other person whom the
      Collateral Agent may designate, as such Grantor's attorney
      in fact with full power and for the limited purpose to sign
      in the name of such Grantor any such financing statements,
      or amendments and supplements to financing statements,
      renewal financing statements, notices or any similar
      documents which in the Collateral Agent's reasonable
      discretion would be necessary, appropriate or convenient in
      order to perfect and maintain perfection of the security
      interests granted hereunder, such power, being coupled with
      an interest, being and remaining irrevocable so long as the
      Secured Obligations remain unpaid and until the commitments
      relating thereto shall have been terminated.  Each Grantor
      hereby agrees that a carbon, photographic or other
      reproduction of this Security Agreement or any such
      financing statement is sufficient for filing as a financing
      statement by the Collateral Agent without notice thereof to
      such Grantor wherever the Collateral Agent may in its sole
      discretion desire to file the same.  In the event for any
      reason the law of any jurisdiction other than North Carolina
      becomes or is applicable to the Collateral of any Grantor or
      any part thereof, or to any of the Secured Obligations, such
      Grantor agrees to execute and deliver all such instruments
      and to do all such other things as the Collateral Agent in
      its sole discretion reasonably deems necessary or
      appropriate to preserve, protect and enforce the security
      interests of the Collateral Agent under the law of such
      other jurisdiction (and, if a Grantor shall fail to do so
      promptly upon the request of the Collateral Agent, then the
      Collateral Agent may execute any and all such requested
      documents on behalf of such Grantor pursuant to the power of
      attorney granted hereinabove).  If any Collateral is in the
      possession or control of a Grantor's agents and the
      Collateral Agent so requests, such Grantor agrees to notify
      such agents in writing of the Collateral Agent's security
      interest therein and, upon the Collateral Agent's request,
      instruct them to hold all such Collateral for the account of
      the holders of the Secured Obligations and subject to the
      Collateral Agent's instructions.  Each Grantor agrees to
      mark its books and records to reflect the security interest
      of the Collateral Agent in the Collateral.

           (g)  Treatment of Accounts.  Not grant or extend the
      time for payment of any Account, or compromise or settle any
      Account for less than the full amount thereof, or release
      any person or property, in whole or in part, from payment
      thereof, or allow any credit or discount thereon, other than
      as normal and customary in the ordinary course of a
      Grantor's business or as required by law.

           (h)  Covenants Relating to Copyrights.

                (i)  Employ the Copyright for each Work with such
           notice of copyright as may be required by law to secure
           copyright protection.

                (ii) Not do any act or knowingly omit to do any
           act whereby any material Copyright may become
           invalidated and (A) not do any act, or knowingly omit
           to do any act, whereby any material Copyright may
           become injected into the public domain; (B) notify the
           Collateral Agent immediately if it knows that any
           material Copyright may become injected into the public
           domain or of any adverse determination or development
           (including, without limitation, the institution of, or
           any such determination or development in, any court or
           tribunal in the United States or any other country)
           regarding a Grantor's ownership of any such Copyright
           or its validity; (C) take all necessary steps as it
           shall deem appropriate under the circumstances, to
           maintain and pursue each application (and to obtain the
           relevant registration) and to maintain each
           registration of each material Copyright owned by a
           Grantor including, without limitation, filing of
           applications for renewal where necessary; and (D)
           promptly notify the Collateral Agent of any material
           infringement of any material Copyright of a Grantor of
           which it becomes aware and take such actions as it
           shall reasonably deem appropriate under the
           circumstances to protect such Copyright, including,
           where appropriate, the bringing of suit for
           infringement, seeking injunctive relief and seeking to
           recover any and all damages for such infringement.

                (iii)Not make any assignment or agreement in
           conflict with the security interest in the Copyrights
           of each Grantor hereunder.

           (i)  Covenants Relating to Patents and Trademarks.

                (i)  (A) Continue to use each Trademark on each
           and every trademark class of goods applicable to its
           current line as reflected in its current catalogs,
           brochures and price lists in order to maintain such
           Trademark in full force free from any claim of
           abandonment for non-use, (B) maintain as in the past
           the quality of products and services offered under such
           Trademark, (C) employ such Trademark with the
           appropriate notice of registration, (D) not adopt or
           use any mark which is confusingly similar or a
           colorable imitation of such Trademark unless the
           Collateral Agent, for the ratable benefit of the
           holders of the Secured Obligations, shall obtain a
           perfected security interest in such mark pursuant to
           this Security Agreement, and (E) not (and not permit
           any licensee or sublicensee thereof to) do any act or
           knowingly omit to do any act whereby any Trademark may
           become invalidated.

                (ii) Not do any act, or omit to do any act,
           whereby any Patent may become abandoned or dedicated.

                (iii)Notify the Collateral Agent and the holders
           of the Secured Obligations immediately if it knows that
           any application or registration relating to any Patent
           or Trademark may become abandoned or dedicated, or of
           any adverse determination or development (including,
           without limitation, the institution of, or any such
           determination or development in, any proceeding in the
           United States Patent and Trademark Office or any court
           or tribunal in any country) regarding a Grantor's
           ownership of any Patent or Trademark or its right to
           register the same or to keep and maintain the same.

                (iv) Whenever a Grantor, either by itself or
           through an agent, employee, licensee or designee, shall
           file an application for the registration of any Patent
           or Trademark with the United States Patent and
           Trademark Office or any similar office or agency in any
           other country or any political subdivision thereof, a
           Grantor shall report such filing to the Collateral
           Agent and the holders of the Secured Obligations within
           five Business Days after the last day of the fiscal
           quarter in which such filing occurs.  Upon request of
           the Collateral Agent, a Grantor shall execute and
           deliver any and all agreements, instruments, documents
           and papers as the Collateral Agent may reasonably
           request to evidence the security interest of the
           Collateral Agent and the holders of the Secured
           Obligations in any Patent or Trademark and the goodwill
           and general intangibles of a Grantor relating thereto
           or represented thereby.

                (v)  Take all reasonable and necessary steps,
           including, without limitation, in any proceeding before
           the United States Patent and Trademark Office, or any
           similar office or agency in any other country or any
           political subdivision thereof, to maintain and pursue
           each application (and to obtain the relevant
           registration) and to maintain each registration of the
           Patents and Trademarks, including, without limitation,
           filing of applications for renewal, affidavits of use
           and affidavits of incontestability.

                (vi) Promptly notify the Collateral Agent and the
           holders of the Secured Obligations after it learns that
           any Patent or Trademark included in the Collateral is
           infringed, misappropriated or diluted by a third party
           and promptly sue for infringement, misappropriation or
           dilution, to seek injunctive relief where appropriate
           and to recover any and all damages for such
           infringement, misappropriation or dilution, or take
           such other actions as it shall reasonably deem
           appropriate under the circumstances to protect such
           Patent or Trademark.

                (vii)Not make any assignment or agreement in
           conflict with the security interest in the Patents or
           Trademarks of each Grantor hereunder.

           (j)  New Patents, Copyrights and Trademarks.  Promptly
      provide the Collateral Agent with (i) a listing of all
      applications, if any, for new Copyrights, Patents or
      Trademarks (together with a listing of the issuance of
      registrations or letters on present applications), which new
      applications and issued registrations or letters shall be
      subject to the terms and conditions hereunder, and (ii) (A)
      with respect to Copyrights, a duly executed Notice of
      Security Interest in Copyrights, (B) with respect to
      Patents, a duly executed Notice of Security Interest in
      Patents, (C) with respect to Trademarks, a duly executed
      Notice of Security Interest in Trademarks or (D) such other
      duly executed documents as the Collateral Agent may
      reasonably request in a form acceptable to counsel for the
      Collateral Agent and suitable for recording to evidence the
      security interest in the Copyright, Patent or Trademark
      which is the subject of such new application.

           (k)  Insurance.  Insure, repair and replace the
      Collateral of such Grantor as set forth in the Credit
      Agreement.  All insurance proceeds shall be subject to the
      security interest of the Collateral Agent hereunder.

      6.   Advances by holders of the Secured Obligations.  On
failure of any Grantor to perform any of the covenants and
agreements contained herein, the Collateral Agent may, at its
sole option and in its sole discretion, perform the same and in
so doing may expend such sums as the Collateral Agent may
reasonably deem advisable in the performance thereof, including,
without limitation, the payment of any insurance premiums, the
payment of any taxes, a payment to obtain a release of a Lien or
potential Lien, expenditures made in defending against any
adverse claim and all other expenditures which the Collateral
Agent or the holders of the Secured Obligations may make for the
protection of the security hereof or which may be compelled to
make by operation of law.  All such sums and amounts so expended
shall be repayable by the Grantors on a joint and several basis
promptly upon timely notice thereof and demand therefor, shall
constitute additional Secured Obligations and shall bear interest
from the date said amounts are expended at the default rate
specified in Section 3.1 of the Credit Agreement for Revolving
Loans that are Base Rate Loans.  No such performance of any
covenant or agreement by the Collateral Agent or the holders of
the Secured Obligations on behalf of any Grantor, and no such
advance or expenditure therefor, shall relieve the Grantors of
any default under the terms of this Security Agreement, the other
Credit Documents or any other documents relating to the Secured
Obligations.  The holders of the Secured Obligations may make any
payment hereby authorized in accordance with any bill, statement
or estimate procured from the appropriate public office or holder
of the claim to be discharged without inquiry into the accuracy
of such bill, statement or estimate or into the validity of any
tax assessment, sale, forfeiture, tax lien, title or claim except
to the extent such payment is being contested in good faith by a
Grantor in appropriate proceedings and against which adequate
reserves are being maintained in accordance with GAAP.

      7.   Events of Default.

      The occurrence of an Event of Default (as defined in the
Credit Agreement) under the Credit Agreement shall be an Event of
Default hereunder (an "Event of Default").

      8.   Remedies.

           (a)  General Remedies.  Upon the occurrence of an Event
      of Default and during continuation thereof, the holders of
      the Secured Obligations shall have, in addition to the
      rights and remedies provided herein, in the Credit Documents
      or any other documents relating to the Secured Obligations,
      or by law (including, but not limited to, the rights and
      remedies set forth in the Uniform Commercial Code of the
      jurisdiction applicable to the affected Collateral (the
      "UCC")) and, further, the Collateral Agent may, with or
      without judicial process or the aid and assistance of
      others, (i) enter on any premises on which any of the
      Collateral may be located and, without resistance or
      interference by the Grantors, take possession of the
      Collateral, (ii)  dispose of any Collateral on any such
      premises, (iii) require the Grantors to assemble and make
      available to the Collateral Agent at the expense of the
      Grantors any Collateral at any place and time designated by
      the Collateral Agent which is reasonably convenient to both
      parties, (iv) remove any Collateral from any such premises
      for the purpose of effecting sale or other disposition
      thereof, and/or (v) without demand and without
      advertisement, notice, hearing or process of law, all of
      which each of the Grantors hereby waives to the fullest
      extent permitted by law, at any place and time or times,
      sell and deliver any or all Collateral held by or for it at
      public or private sale, by one or more contracts, in one or
      more parcels, for cash, upon credit or otherwise, at such
      prices and upon such terms as the Collateral Agent deems
      advisable, in its sole discretion (subject to any and all
      mandatory legal requirements).  In addition to all other
      sums due the Collateral Agent and the holders of the Secured
      Obligations with respect to the Secured Obligations, the
      Grantors shall pay the Collateral Agent and each of the
      holders of the Secured Obligations all reasonable documented
      costs and expenses incurred by the Collateral Agent or any
      such holder of the Secured Obligations, including, but not
      limited to, reasonable attorneys' fees and court costs, in
      obtaining or liquidating the Collateral, in enforcing
      payment of the Secured Obligations, or in the prosecution or
      defense of any action or proceeding by or against the
      Collateral Agent or the holders of the Secured Obligations
      or the Grantors concerning any matter arising out of or
      connected with this Security Agreement, any Collateral or
      the Secured Obligations, including, without limitation, any
      of the foregoing arising in, arising under or related to a
      case under the Bankruptcy Code.  To the extent the rights of
      notice cannot be legally waived hereunder, each Grantor
      agrees that any requirement of reasonable notice shall be
      met if such notice is personally served on or mailed,
      postage prepaid, to the Borrower in accordance with the
      notice provisions of Section 11.1 of the Credit Agreement at
      least 10 Business Days before the time of sale or other
      event giving rise to the requirement of such notice.  The
      Collateral Agent and the holders of the Secured Obligations
      shall not be obligated to make any sale or other disposition
      of the Collateral regardless of notice having been given.
      To the extent permitted by law, any holder of the Secured
      Obligations may be a purchaser at any such sale.  To the
      extent permitted by applicable law, each of the Grantors
      hereby waives all of its rights of redemption with respect
      to any such sale.  Subject to the provisions of applicable
      law, the Collateral Agent and the holders of the Secured
      Obligations may postpone or cause the postponement of the
      sale of all or any portion of the Collateral by announcement
      at the time and place of such sale, and such sale may,
      without further notice, to the extent permitted by law, be
      made at the time and place to which the sale was postponed,
      or the Collateral Agent and the holders of the Secured
      Obligations may further postpone such sale by announcement
      made at such time and place.

           (b)  Remedies relating to Accounts.  Upon the
      occurrence of an Event of Default and during the
      continuation thereof, whether or not the Collateral Agent
      has exercised any or all of its rights and remedies
      hereunder, each Grantor will promptly upon request of the
      Collateral Agent instruct all account debtors to remit all
      payments in respect of Accounts to a mailing location
      selected by the Collateral Agent.  In addition, the
      Collateral Agent or its designee may notify any Grantor's
      customers and account debtors that the Accounts of such
      Grantor have been assigned to the Collateral Agent or of the
      Collateral Agent's security interest therein, and may
      (either in its own name or in the name of a Grantor or both)
      demand, collect (including without limitation by way of a
      lockbox arrangement), receive, take receipt for, sell, sue
      for, compound, settle, compromise and give acquittance for
      any and all amounts due or to become due on any Account,
      and, in the Collateral Agent's discretion, file any claim or
      take any other action or proceeding to protect and realize
      upon the security interest of the holders of the Secured
      Obligations in the Accounts.  Each Grantor acknowledges and
      agrees that the Proceeds of its Accounts remitted to or on
      behalf of the Collateral Agent in accordance with the
      provisions hereof shall be solely for the Collateral Agent's
      own convenience and that such Grantor shall not have any
      right, title or interest in such Accounts or in any such
      other amounts except as expressly provided herein.  The
      Collateral Agent and the holders of the Secured Obligations
      shall have no liability or responsibility to any Grantor for
      acceptance of a check, draft or other order for payment of
      money bearing the legend "payment in full" or words of
      similar import or any other restrictive legend or
      endorsement or be responsible for determining the
      correctness of any remittance.  Each Grantor hereby agrees
      to indemnify the Collateral Agent and the holders of the
      Secured Obligations from and against all liabilities,
      damages, losses, actions, claims, judgments, costs,
      expenses, charges and reasonable attorneys' fees suffered or
      incurred by the Collateral Agent or the holders of the
      Secured Obligations (each, an "Indemnified Party") because
      of the maintenance of the foregoing arrangements except as
      relating to or arising out of the gross negligence or
      willful misconduct of an Indemnified Party or its officers,
      employees or agents.  In the case of any investigation,
      litigation or other proceeding, the foregoing indemnity
      shall be effective whether or not such investigation,
      litigation or proceeding is brought by a Grantor, its
      directors, shareholders or creditors or an Indemnified Party
      or any other Person or any other Indemnified Party is
      otherwise a party thereto.

           (c)  Access.  In addition to the rights and remedies
      hereunder, upon the occurrence of an Event of Default and
      during the continuance thereof, the Collateral Agent shall
      have the right to enter and remain upon the various premises
      of the Grantors without cost or charge to the Collateral
      Agent, and use the same, together with materials, supplies,
      books and records of the Grantors for the purpose of
      collecting and liquidating the Collateral, or for preparing
      for sale and conducting the sale of the Collateral, whether
      by foreclosure, auction or otherwise.  In addition, the
      Collateral Agent may remove Collateral, or any part thereof,
      from such premises and/or any records with respect thereto,
      in order to effectively collect or liquidate such Collateral.

           (d)  Nonexclusive Nature of Remedies.  Failure by the
      Collateral Agent or the holders of the Secured Obligations
      to exercise any right, remedy or option under this Security
      Agreement, any other Credit Document, any Other documents
      relating to the Secured Obligations, or as provided by law,
      or any delay by the Collateral Agent or the holders of the
      Secured Obligations in exercising the same, shall not
      operate as a waiver of any such right, remedy or option.  No
      waiver hereunder shall be effective unless it is in writing,
      signed by the party against whom such waiver is sought to be
      enforced and then only to the extent specifically stated,
      which in the case of the Collateral Agent or the holders of
      the Secured Obligations shall only be granted as provided
      herein.  To the extent permitted by law, neither the
      Collateral Agent, the holders of the Secured Obligations,
      nor any party acting as attorney for the Collateral Agent or
      the holders of the Secured Obligations, shall be liable
      hereunder for any acts or omissions or for any error of
      judgment or mistake of fact or law other than their gross
      negligence or willful misconduct hereunder.  The rights and
      remedies of the Collateral Agents and the holders of the
      Secured Obligations under this Security Agreement shall be
      cumulative and not exclusive of any other right or remedy
      which the Collateral Agent or the holders of the Secured
      Obligations may have.

           (e)  Retention of Collateral.  The Collateral Agent
      may, after providing the notices required by Section
      9-505(2) of the UCC or otherwise complying with the
      requirements of applicable law of the relevant jurisdiction,
      to the extent the Collateral Agent is in possession of any
      of the Collateral, retain the Collateral in satisfaction of
      the Secured Obligations.  Unless and until the Collateral
      Agent shall have provided such notices, however, the
      Collateral Agent shall not be deemed to have retained any
      Collateral in satisfaction of any Secured Obligations for
      any reason.

           (f)  Deficiency.  In the event that the proceeds of any
      sale, collection or realization are insufficient to pay all
      amounts to which the Collateral Agent or the holders of the
      Secured Obligations are legally entitled, the Grantors shall
      be jointly and severally liable for the deficiency, together
      with interest thereon at the default rate specified in
      Section 3.1 of the Credit Agreement for Revolving Loans that
      are Base Rate Loans, together with the costs of collection
      and the reasonable fees of any attorneys employed by the
      Collateral Agent to collect such deficiency.  Any surplus
      remaining after the full payment and satisfaction of the
      Secured Obligations shall be returned to the Grantors or to
      whomsoever a court of competent jurisdiction shall determine
      to be entitled thereto.

      9.   Rights of the Collateral Agent.

           (a)  Power of Attorney.  In addition to other powers of
      attorney contained herein, each Grantor hereby designates
      and appoints the Collateral Agent, on behalf of the holders
      of the Secured Obligations, and each of its designees or
      agents, as attorney-in-fact of such Grantor, irrevocably and
      with power of substitution, with authority to take any or
      all of the following actions upon the occurrence and during
      the continuance of an Event of Default:

                (i)  to demand, collect, settle, compromise,
           adjust, give discharges and releases, all as the
           Collateral Agent may reasonably determine;

                (ii) to commence and prosecute any actions at
           any court for the purposes of collecting any
           Collateral and enforcing any other right in
           respect thereof;

                (iii)to defend, settle or compromise any
           action brought and, in connection therewith, give
           such discharge or release as the Collateral Agent
           may deem reasonably appropriate;

                (iv) to receive, open and dispose of mail
           addressed to a Grantor and endorse checks, notes,
           drafts, acceptances, money orders, bills of
           lading, warehouse receipts or other instruments or
           documents evidencing payment, shipment or storage
           of the goods giving rise to the Collateral of such
           Grantor on behalf of and in the name of such
           Grantor, or securing, or relating to such
           Collateral;

                (v)  to sell, assign, transfer, make any
           agreement in respect of, or otherwise deal with or
           exercise rights in respect of, any Collateral or
           the goods or services which have given rise
           thereto, as fully and completely as though the
           Collateral Agent were the absolute owner thereof
           for all purposes;

                (vi) to adjust and settle claims under any
           insurance policy relating thereto;

                (vii)to execute and deliver all assignments,
           conveyances, statements, financing statements,
           renewal financing statements, security agreements,
           affidavits, notices and other agreements,
           instruments and documents that the Collateral
           Agent may determine necessary in order to perfect
           and maintain the security interests and liens
           granted in this Security Agreement and in order to
           fully consummate all of the transactions
           contemplated therein;

                (viii)    to institute any foreclosure
           proceedings that the Collateral Agent may deem
           appropriate; and

                (ix) to do and perform all such other acts
           and things as the Collateral Agent may reasonably
           deem to be necessary, proper or convenient in
           connection with the Collateral.

      This power of attorney is a power coupled with an interest
      and shall be irrevocable (i) for so long as any of the
      Secured Obligations remain outstanding, any Credit Document
      or any Other documents relating to the Secured Obligations,
      is in effect or any Letter of Credit shall remain
      outstanding and (ii) until all of the Commitments shall have
      been terminated.  The Collateral Agent shall be under no
      duty to exercise or withhold the exercise of any of the
      rights, powers, privileges and options expressly or
      implicitly granted to the Collateral Agent in this Security
      Agreement, and shall not be liable for any failure to do so
      or any delay in doing so.  The Collateral Agent shall not be
      liable for any act or omission or for any error of judgment
      or any mistake of fact or law in its individual capacity or
      its capacity as attorney-in-fact except acts or omissions
      resulting from its gross negligence or willful misconduct.
      This power of attorney is conferred on the Collateral Agent
      solely to protect, preserve and realize upon its security
      interest in the Collateral.

           (b)  Performance by the Collateral Agent of
      Obligations.  If any Grantor fails to perform any agreement
      or obligation contained herein, the Collateral Agent itself
      may perform, or cause performance of, such agreement or
      obligation, and the expenses of the Collateral Agent
      incurred in connection therewith shall be payable by the
      Grantors on a joint and several basis pursuant to Section 11
      hereof.

           (c)  Assignment by the Collateral Agent.  The
      Collateral Agent may from time to time assign the Secured
      Obligations and any portion thereof and/or the Collateral
      and any portion thereof, and the assignee shall be entitled
      to all of the rights and remedies of the Collateral Agent
      under this Security Agreement in relation thereto.

           (d)  The Collateral Agent's Duty of Care.  Other than
      the exercise of reasonable care to assure the safe custody
      of the Collateral while being held by the Collateral Agent
      hereunder, the Collateral Agent shall have no duty or
      liability to preserve rights pertaining thereto, it being
      understood and agreed that the Grantors shall be responsible
      for preservation of all rights in the Collateral, and the
      Collateral Agent shall be relieved of all responsibility for
      the Collateral upon surrendering it or tendering the
      surrender of it to the Grantors.  The Collateral Agent shall
      be deemed to have exercised reasonable care in the custody
      and preservation of the Collateral in its possession if the
      Collateral is accorded treatment substantially equal to that
      which the Collateral Agent accords its own property, which
      shall be no less than the treatment employed by a reasonable
      and prudent agent in the industry, it being understood that
      the Collateral Agent shall not have responsibility for
      taking any necessary steps to preserve rights against any
      parties with respect to any of the Collateral.

      10.  Application of Proceeds.  Upon the occurrence and
during the continuance of an Event of Default, any payments in
respect of the Secured Obligations and any proceeds of the
Collateral, when received by the Collateral Agent or any of the
holders of the Secured Obligations in cash or its equivalent,
will be applied in reduction of the Secured Obligations in the
order set forth in the Credit Agreement or other document
relating to the Secured Obligations, and each Grantor irrevocably
waives the right to direct the application of such payments and
proceeds and acknowledges and agrees that the Collateral Agent
shall have the continuing and exclusive right to apply and
reapply any and all such payments and proceeds in the Collateral
Agent's sole discretion, notwithstanding any entry to the
contrary upon any of its books and records.

      11.  Costs of Counsel.  If at any time hereafter, whether
upon the occurrence of an Event of Default or not, the Collateral
Agent employs counsel to prepare or consider amendments, waivers
or consents with respect to this Security Agreement, or to take
action or make a response in or with respect to any legal or
arbitral proceeding relating to this Security Agreement or
relating to the Collateral, or to protect the Collateral or
exercise any rights or remedies under this Security Agreement or
with respect to the Collateral, then the Grantors agree to
promptly pay upon demand any and all such reasonable documented
costs and expenses of the Collateral Agent or the holders of the
Secured Obligations, all of which costs and expenses shall
constitute Secured Obligations hereunder.

      12.  Continuing Agreement.

           (a)  This Security Agreement shall be a continuing
      agreement in every respect and shall remain in full force
      and effect so long as the Secured Obligations remain
      outstanding and until the commitments relating thereto shall
      have terminated (other than any obligations with respect to
      the indemnities and the representations and warranties set
      forth in the Credit Documents).  Upon such payment and
      termination, this Security Agreement shall be automatically
      terminated and the Collateral Agent and the holders of the
      Secured Obligations shall, upon the request and at the
      expense of the Grantors, forthwith release all of its liens
      and security interests hereunder and shall execute and
      deliver all UCC termination statements and/or other
      documents reasonably requested by the Grantors evidencing
      such termination.  Notwithstanding the foregoing all
      releases and indemnities provided hereunder shall survive
      termination of this Security Agreement.

           (b)  This Security Agreement shall continue to be
      effective or be automatically reinstated, as the case may
      be, if at any time payment, in whole or in part, of any of
      the Secured Obligations is rescinded or must otherwise be
      restored or returned by the Collateral Agent or any holder
      of the Secured Obligations as a preference, fraudulent
      conveyance or otherwise under any bankruptcy, insolvency or
      similar law, all as though such payment had not been made;
      provided that in the event payment of all or any part of the
      Secured Obligations is rescinded or must be restored or
      returned, all reasonable costs and expenses (including
      without limitation any reasonable legal fees and
      disbursements) incurred by the Collateral Agent or any
      holder of the Secured Obligations in defending and enforcing
      such reinstatement shall be deemed to be included as a part
      of the Secured Obligations.

      13.  Amendments; Waivers; Modifications.  This Security
Agreement and the provisions hereof may not be amended, waived,
modified, changed, discharged or terminated except as set forth
in Section 11.6 of the Credit Agreement.

      14.  Successors in Interest.  This Security Agreement shall
create a continuing security interest in the Collateral and shall
be binding upon each Grantor, its successors and assigns and
shall inure, together with the rights and remedies of the
Collateral Agent and the holders of the Secured Obligations
hereunder, to the benefit of the Collateral Agent and the holders
of the Secured Obligations and their successors and permitted
assigns; provided, however, that none of the Grantors may assign
its rights or delegate its duties hereunder without the prior
written consent of the requisite Lenders under the Credit
Agreement.  To the fullest extent permitted by law, each Grantor
hereby releases the Collateral Agent and each holder of the
Secured Obligations, and its successors and assigns, from any
liability for any act or omission relating to this Security
Agreement or the Collateral, except for any liability arising
from the gross negligence or willful misconduct of the Collateral
Agent, or such holder of the Secured Obligations, or its
officers, employees or agents.

      15.  Notices.  All notices required or permitted to be given
under this Security Agreement shall be given as provided in the
Credit Agreement.

      16.  Counterparts.  This Security Agreement may be executed
in any number of counterparts, each of which where so executed
and delivered shall be an original, but all of which shall
constitute one and the same instrument.  It shall not be
necessary in making proof of this Security Agreement to produce
or account for more than one such counterpart.

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

      18.  Governing Law; Submission to Jurisdiction; Venue.

           (a)  THIS SECURITY AGREEMENT AND THE RIGHTS AND
      OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED
      BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NORTH CAROLINA.  Any legal action
      or proceeding with respect to this Security Agreement
      may be brought in the state or federal courts located
      in Charlotte, North Carolina, and, by execution and
      delivery of this Security Agreement, each Grantor
      hereby irrevocably accepts for itself and in respect of
      its property, generally and unconditionally, the
      jurisdiction of such courts.  Each Grantor further
      irrevocably consents to the service of process out of
      any of the aforementioned courts in any such action or
      proceeding by the mailing of copies thereof by
      registered or certified mail, postage prepaid, to it at
      the address for notices pursuant to Section 11.1 of the
      Credit Agreement, such service to become effective
      three days after such mailing.  Nothing herein shall
      affect the right of the Collateral Agent to serve
      process in any other manner permitted by law or to
      commence legal proceedings or to otherwise proceed
      against any Grantor in any other jurisdiction.

           (b)  Each Grantor hereby irrevocably waives any
      objection which it may now or hereafter have to the
      laying of venue of any of the aforesaid actions or
      proceedings arising out of or in connection with this
      Security Agreement brought in the courts referred to in
      subsection (a) hereof and hereby further irrevocably
      waives and agrees not to plead or claim in any such
      court that any such action or proceeding brought in any
      such court has been brought in an inconvenient forum.

      19.  Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE PARTIES TO THIS SECURITY AGREEMENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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

      21.  Entirety.  This Security Agreement, the other Credit
Documents and the other documents relating to the Secured
Obligations represent the entire agreement of the parties hereto
and thereto, and supersede all prior agreements and
understandings, oral or written, if any, including any commitment
letters or correspondence relating to the Credit Documents, any
other documents relating to the Secured Obligations, or the
transactions contemplated herein and therein.

      22.  Survival.  All representations and warranties of the
Grantors hereunder shall survive the execution and delivery of
this Security Agreement, the other Credit Documents and the other
documents relating to the Secured Obligations, the delivery of
the Notes and the extension of credit thereunder or in connection
therewith.

      23.  Other Security.  To the extent that any of the Secured
Obligations are now or hereafter secured by property other than
the Collateral (including, without limitation, real property and
securities owned by a Grantor), or by a guarantee, endorsement or
property of any other Person, then the Collateral Agent and the
holders of the Secured Obligations shall have the right to
proceed against such other property, guarantee or endorsement
upon the occurrence of any Event of Default, and the Collateral
Agent and the holders of the Secured Obligations have the right,
in their sole discretion, to determine which rights, security,
liens, security interests or remedies the Collateral Agent and
the holders of the Secured Obligations shall at any time pursue,
relinquish, subordinate, modify or take with respect thereto,
without in any way modifying or affecting any of them or the
Secured Obligations or any of the rights of the Collateral Agent
or the holders of the Secured Obligations under this Security
Agreement, under any other of the Credit Documents or under any
other document relating to the Secured Obligations.

      24.  Joint and Several Obligations of Grantors.

           (a)  Each of the Grantors is accepting joint and
      several liability hereunder in consideration of the
      financial accommodation to be provided by the holders of the
      Secured Obligations, for the mutual benefit, directly and
      indirectly, of each of the Grantors and in consideration of
      the undertakings of each of the Grantors to accept joint and
      several liability for the obligations of each of them.

           (b)  Each of the Grantors jointly and severally hereby
      irrevocably and unconditionally accepts, not merely as a
      surety but also as a co-debtor, joint and several liability
      with the other Grantors with respect to the payment and
      performance of all of the Secured Obligations arising under
      this Security Agreement, the other Credit Documents and any
      other documents relating to the Secured Obligations, it
      being the intention of the parties hereto that all the
      Obligations shall be the joint and several obligations of
      each of the Grantors without preferences or distinction
      among them.

           (c)  Notwithstanding any provision to the contrary
      contained herein, in any other of the Credit Documents or in
      any other documents relating to the Secured Obligations, the
      obligations of each Guarantor under the Credit Agreement and
      the other Credit Documents shall be limited to an aggregate
      amount equal to the largest amount that would not render
      such obligations subject to avoidance under Section 548 of
      the Bankruptcy Code or any comparable provisions of any
      applicable state law.

      25.  Rights of Required Lenders.  All rights of the
Collateral Agent hereunder, if not exercised by the Collateral
Agent, may be exercised by the Required Lenders.

           [remainder of page intentionally left blank]

<PAGE>

                              REHABCARE GROUP, INC.
                               SECURITY AGREEMENT

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

GRANTORS:                 REHABCARE GROUP, INC.,
                          a Delaware Corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Senior Vice President, Finance

                          REHABCARE GROUP THERAPY SERVICES, INC.,
                          a Missouri corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          SALT LAKE PHYSICAL THERAPY ASSOCIATES, INC.,
                          a Utah corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          ALLSTAFF, INC.,
                          an Iowa corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          WESLEY MEDICAL RESOURCES, INC.,
                          a California corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                    [Signature Pages Continue]

<PAGE>

                          HEALTHCARE STAFFING SOLUTIONS, INC.,
                          a Massachusetts corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          EAI HEALTHCARE STAFFING SOLUTIONS, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          REHABCARE GROUP EAST, INC.,
                          a Delaware corporation

                                By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          REHABCARE GROUP MANAGEMENT SERVICES, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          REHABCARE TEXAS HOLDINGS, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          HEALTH TOUR MANAGEMENT, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                    [Signature Pages Continue]

<PAGE>

                          REHABCARE GROUP OF CALIFORNIA, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          STARMED HEALTH PERSONNEL, INC.,
                          a Delaware corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          THERAPEUTIC SYSTEMS, LTD.,
                          an Illinois corporation

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          STARMED MANAGEMENT, L.L.C.,
                          a Delaware limited liability company

                          By:  Healthcare Staffing Solutions, Inc.,
                               a Massachusetts corporation, as its
Member

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Vice President

                          REHABCARE GROUP OF TEXAS, L.P.,
                          a Texas limited liability company

                          By:  Rehabcare Group, Inc.,
                               a Delaware corporation, as its
General Partner

                               By:  /s/ Gregory J. Eisenhauer
                               Name:    Gregory J. Eisenhauer
                               Title:   Senior Vice President, Finance

                    [Signature Pages Continue]

<PAGE>

Accepted and agreed to as of the date first above written.

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

By:   /s/ Kristine D. Hyde
Name:     Kristine D. Hyde
Title:    Vice President

<PAGE>

                           SCHEDULE 1(b)

                       INTELLECTUAL PROPERTY

<PAGE>

                           SCHEDULE 4(a)

                      CHIEF EXECUTIVE OFFICES

<PAGE>

                           SCHEDULE 4(b)

                      LOCATIONS OF COLLATERAL

<PAGE>

                           SCHEDULE 4(c)

MERGERS, CONSOLIDATIONS, CHANGES IN STRUCTURE OR USE OF TRADENAMES

<PAGE>

                         SCHEDULE 5(f)(i)

                              NOTICE

                                OF

                    GRANT OF SECURITY INTEREST

                                IN

                            COPYRIGHTS

United States Copyright Office

Gentlemen:

      Please be advised that pursuant to the Security Agreement
dated as of August 29, 2000 (as the same may be amended,
modified, extended or restated from time to time, the "Security
Agreement") by and among the Grantors party thereto (each an
"Grantor" and collectively, the "Grantors") and Bank of America,
N.A., as Collateral Agent (the "Collateral Agent") for the
holders of the Secured Obligations referenced therein, the
undersigned Grantor has granted a continuing security interest in
and continuing lien upon, the copyrights and copyright
applications shown below to the Collateral Agent for the ratable
benefit of the holders of the Secured Obligations:

                            COPYRIGHTS

                                                     Date of
      Copyright No.    Description of Copyright     Copyright

                      COPYRIGHT APPLICATIONS

         Copyright           Description of Copyright      Date of Copyright
      Applications No.             Applied For               Applications

<PAGE>

      The Grantors and the Collateral Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree
that the security interest in the foregoing copyrights and
copyright applications (i) may only be terminated in accordance
with the terms of the Security Agreement and (ii) is not to be
construed as an assignment of any copyright or copyright
application.

                               Very truly yours,

                               __________________________________
                               [Grantor]

                               By:
                               Name:
                               Title:

Acknowledged and Accepted:

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

By:
Name:
Title:

<PAGE>

                         SCHEDULE 5(f)(ii)

                              NOTICE

                                OF

                    GRANT OF SECURITY INTEREST

                                IN

                              PATENTS

United States Patent and Trademark Office

Gentlemen:

      Please be advised that pursuant to the Security Agreement
dated as of August 29, 2000 (the "Security Agreement") by and
among the Grantors party thereto (each an "Grantor" and
collectively, the "Grantors") and Bank of America, N.A., as
Collateral Agent (the "Collateral Agent") for the holders of the
Secured Obligations referenced therein, the undersigned Grantor
has granted a continuing security interest in and continuing lien
upon, the patents and patent applications shown below to the
Collateral Agent for the ratable benefit of the holders of the
Secured Obligations:

                              PATENTS

                       Description of Patent               Date of
  Patent No.                   Item                        Patent

                        PATENT APPLICATIONS

  Patent               Description of Patent               Date of Patent
  Applications No.          Applied For                     Applications

<PAGE>

      The Grantors and the Collateral Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree
that the security interest in the foregoing patents and patent
applications (i) may only be terminated in accordance with the
terms of the Security Agreement and (ii) is not to be construed
as an assignment of any patent or patent application.

                               Very truly yours,

                               __________________________________
                               [Grantor]

                               By:
                               Name:
                               Title:

Acknowledged and Accepted:

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

By:
Name:
Title:

<PAGE>

                        SCHEDULE 5(f)(iii)

                              NOTICE

                                OF

                    GRANT OF SECURITY INTEREST

                                IN

                            TRADEMARKS

United States Patent and Trademark Office

Gentlemen:

      Please be advised that pursuant to the Security Agreement
dated as of August 29, 2000 (the "Security Agreement") by and
among the Grantors party thereto (each an "Grantor" and
collectively, the "Grantors") and Bank of America, N.A., as
Collateral Agent (the "Collateral Agent") for the holders of the
Secured Obligations referenced therein, the undersigned Grantor
has granted a continuing security interest in and continuing lien
upon, the trademarks and trademark applications shown below to
the Collateral Agent for the ratable benefit of the holders of
the Secured Obligations:

                            TRADEMARKS

                       Description of Trademark       Date of
Trademark No.                    Item                Trademark

                      TRADEMARK APPLICATIONS

Trademark              Description of Trademark       Date of Trademark
Applications No.              Applied For               Applications

<PAGE>

      The Grantors and the Collateral Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree
that the security interest in the foregoing trademarks and
trademark applications (i) may only be terminated in accordance
with the terms of the Security Agreement and (ii) is not to be
construed as an assignment of any trademark or trademark
application.

                               Very truly yours,

                               __________________________________
                               [Grantor]

                               By:
                               Name:
                               Title:

Acknowledged and Accepted:

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

By:
Name:
Title:

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