Document:

Exhibit 4.1

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                        ADVANCED MARKETING SERVICES, INC.

                                       and

                     AMERICAN STOCK TRANSFER & TRUST COMPANY
                                  Rights Agent

                                RIGHTS AGREEMENT

                           Dated as of August 9, 2005

<PAGE>

     Section 1.  Certain Definitions...........................................1
     Section 2.  Appointment of Rights Agent...................................5
     Section 3.  Issuance of Right Certificates................................5
     Section 4.  Form of Right Certificates....................................6
     Section 5.  Countersignature and Registration.............................7
     Section 6.  Transfer, Split Up, Combination and Exchange of Right
                 Certificates; Mutilated, Destroyed, Lost or Stolen Right
                 Certificates..................................................8
     Section 7.  Exercise of Rights; Purchase Price; Expiration Date of
                 Rights........................................................9
     Section 8.  Cancellation and Destruction of Right Certificates...........11
     Section 9.  Reservation and Availability of Shares; Registration.........11
     Section 10. Record Date..................................................12
     Section 11. Adjustment of Purchase Price, Number of Shares or Number of
                 Rights.......................................................12
     Section 12. Certification of Adjusted Purchase Price or Number of
                 Shares.......................................................19
     Section 13. Consolidation, Merger or Sale or Transfer of Assets or
                 Earning Power................................................19
     Section 14. Fractional Rights and Fractional Shares......................22
     Section 15. Rights of Action.............................................23
     Section 16. Agreement of Right Holders...................................23
     Section 17. Right Certificate Holder Not Deemed a Stockholder............23
     Section 18. Concerning the Rights Agent..................................24
     Section 19. Merger or Consolidation or Change of Name of Rights Agent....24
     Section 20. Duties of Rights Agent.......................................25
     Section 21. Change of Rights Agent.......................................27
     Section 22. Issuance of New Right Certificates...........................28
     Section 23. Redemption...................................................28
     Section 24. Notice of Proposed Actions...................................28
     Section 25. Notices......................................................29
     Section 26. Supplements and Amendments...................................29
     Section 27. Exchange.....................................................30
     Section 28. Successors...................................................31
     Section 29. Determination and Actions Taken by the Board of Directors....31
     Section 30. Benefits of this Agreement...................................31
     Section 31. Governing Law................................................31
     Section 32. Counterparts.................................................32
     Section 33. Section Headings.............................................32
     Section 34. Severability.................................................32

                                      -i-
<PAGE>

                                RIGHTS AGREEMENT
                                ----------------

     AGREEMENT, dated as of August 9, 2005, between Advanced Marketing Services,
Inc., a Delaware corporation (the "Company"), and American Stock Transfer &
Trust Company as Rights Agent.

                               W I T N E S S E T H

     WHEREAS, the Board of Directors of the Company has authorized and declared
the distribution of one right for (i) each share of Common Stock of the Company
("Common Stock") outstanding at the Close of Business (as hereinafter defined)
on August 22, 2005 (the "Rights Record Date"), each right representing the right
to purchase one Unit consisting, initially, of one one-tenth share of Common
Stock, and (ii) each additional share of Common Stock which shall become
outstanding between the Rights Record Date and the earliest of the Distribution
Date, the Expiration Date (as such terms are hereinafter defined) and the date,
if any, on which such rights are redeemed, all upon the terms and subject to the
conditions hereinafter set forth (each such right being hereinafter referred to
as a "Right");

     NOW, THEREFORE, the parties agree as follows:

     Section 1. Certain Definitions.

     (a) For purposes of this Agreement, the following terms have the meanings
indicated:

          "Acquiring Person" shall mean any Person other than an Exempt Person
     who or which, alone or together with all Affiliates and Associates of such
     Person, shall be the Beneficial Owner (within the meaning of Section 1(b))
     of a Substantial Block of Voting Stock; provided that no person shall
     become an Acquiring Person solely as a result of a reduction in the number
     of shares of Voting Stock outstanding, unless and until such Person shall
     thereafter become the Beneficial Owner of additional shares constituting 1%
     or more of the general voting power of the Company. Notwithstanding the
     foregoing, no Person who, alone or together with all Affiliates and
     Associates of such Person, was, at the time of the public announcement by
     the Company on August 9, 2005 of the declaration by the Board of Directors
     of the distribution of the Rights, the Beneficial Owner of 15% or more of
     the Common Stock of the Company then outstanding shall be deemed to have
     become an Acquiring Person unless and until such time as such Person or any
     Affiliate or Associate of such Person thereafter becomes the Beneficial
     Owner of any additional Common Stock of the Company (other than as a result
     of a stock dividend, stock split or similar transaction effected by the
     Company in which all holders of Common Stock of the Company are treated
     equally). If the Directors determine in good faith that a Person who would
     otherwise be an Acquiring Person has become such inadvertently, and such
     Person divests as promptly as practicable a sufficient number of shares so
     that such Person would no longer be an Acquiring Person as herein defined,
     then such Person shall not be deemed to be an Acquiring Person unless and
     until such Person shall become the Beneficial Owner of additional shares
     constituting 1% or more of the general voting power of the Company.

<PAGE>

          "Affiliate" and "Associate" shall have the respective meanings
     ascribed to such terms in Rule 12b-2 of the General Rules and Regulations
     under the Exchange Act, as in effect as of the date hereof.

          "Business Day" shall mean any day other than a Saturday, Sunday or day
     on which banking institutions in the States of New York or New Jersey are
     authorized or obligated by law or executive order to close.

          "Close of Business" on any given date shall mean 5:00 p.m., Los
     Angeles time, on such date; provided, however, that if such date is not a
     Business Day it shall mean 5:00 p.m., Los Angeles time, on the next
     succeeding Business Day.

          "Common Stock" shall have the meaning assigned to it in the preamble;
     and "common stock" when used with reference to Persons other than the
     Company shall mean: (i) in the case of Persons organized in corporate form,
     the capital stock or equity security with the greatest voting power of such
     Person or, if such Person is a Subsidiary of another Person, of the Person
     or Persons which ultimately control such first-mentioned Person; and (ii)
     in the case of Persons not organized in corporate form, the units of
     beneficial interest which (A) represent the right to participate generally
     in the profits and losses of such Person (including without limitation any
     flow-through tax benefits resulting from an ownership interest in such
     Person) and (B) are entitled to exercise the greatest voting power of such
     Person or, in the case of a limited partnership, shall have the power to
     remove the general partner or partners.

          "Distribution Date" shall have the meaning assigned to it in Section
     3(a).

          "Equivalent Stock" shall have the meaning assigned to it in Section
     7(a).

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended from time to time.

          "Exempt Person" shall mean (i) the Company, any Subsidiary of the
     Company and any employee benefit plan or employee stock plan of the Company
     or of any Subsidiary of the Company, or any trust or other entity
     organized, established or holding shares of Common Stock by, for or
     pursuant to, the terms of any such plan; (ii) any person designated by the
     Board of Directors as an Exempt Person, unless and until such Person shall
     thereafter become the Beneficial Owner of additional shares constituting 1%
     or more of the general voting power of the Company otherwise than in a
     transaction or series of transactions approved by the Board of Directors;
     or (iii) any Person who or which acquires voting stock in connection with a
     transaction or series of transactions approved prior to such transaction or
     transactions by the Board of Directors, unless and until such person shall
     thereafter become the Beneficial Owner of additional shares constituting 1%
     or more of the general voting power of the Company otherwise than in a
     transaction or transactions so approved.

                                       2
<PAGE>

          "Expiration Date" shall have the meaning assigned to it in Section
     7(a).

          "Offer Date" shall have the meaning assigned to it in Section 3(a).

          "Person" shall mean any individual, firm, corporation, partnership,
     limited liability company, trust or other entity and shall include any
     successor by merger (or otherwise) of any of the foregoing.

          "Principal Party" shall have the meaning assigned to it in Section
     13(b).

          "Purchase Price" shall mean the price payable for one Unit upon
     exercise of a Right.

          "Qualified Offer" shall mean a tender or exchange offer for all
     outstanding Common Stock at a price and on terms determined to be adequate
     and otherwise in the best interests of the Company and its shareholders
     (other than the Person or an Affiliate or Associate thereof on whose behalf
     the offer is made) by at least a majority of the Directors who are not
     representatives of or affiliated with the Person making such offer or any
     Affiliate or Associate of such Person.

          "Redemption Price" shall have the meaning assigned to it in Section
     23(a).

          "Right" shall have the meaning assigned to it in the preamble.

          "Rights Record Date" shall have the meaning assigned to it in the
     preamble.

          "Stock Acquisition Date" shall mean the date of the first public
     announcement by the Company or an Acquiring Person that an Acquiring Person
     has become such.

          "Subject Shares" shall mean the class or series of shares then
     issuable on exercise of the Rights.

          "Subsidiary" of any Person shall mean a corporation or other entity of
     which a majority of the securities or other ownership interests having
     ordinary voting power sufficient to elect a majority of the board of
     directors or other persons performing similar functions are at the time
     directly or indirectly owned by such Person or any Affiliate of such
     Person.

                                       3
<PAGE>

          "Substantial Block" shall mean a number of shares of Voting Stock
     having in the aggregate 15% or more of the general voting power.

          "Trading Day" shall have the meaning assigned to it in Section 11(d).

          "Unit" shall mean the shares or other securities issuable upon
     exercise of one Right, initially one one-tenth share of Common Stock of the
     Company, before any adjustment pursuant to Section 11(a)(ii) or Section 13.

          "Voting Stock" shall mean shares of the Company's capital stock the
     holders of which have general voting power.

     (b) For purposes of this Agreement, a Person shall be deemed the
"Beneficial Owner" of any securities:

          (i) which such Person or any of such Person's Affiliates or Associates
     beneficially owns, directly or indirectly;

          (ii) which such Person or any of such Person's Affiliates or
     Associates has (A) the right to acquire (whether such right is exercisable
     immediately or only after the passage of time) pursuant to any agreement,
     arrangement or understanding, (whether or not in writing) or upon the
     exercise of any conversion, exchange or purchase rights (other than the
     Rights), warrants or options, or otherwise; provided, however, that a
     Person shall not be deemed the "Beneficial Owner" of securities tendered
     pursuant to a tender or exchange offer made by or on behalf of such Person
     or any of such Person's Affiliates or Associates until such tendered
     securities are accepted for payment or exchange; or (B) the right to vote
     or to direct the voting of, pursuant to any agreement, arrangement or
     understanding (whether or not in writing); or (C) the right to dispose or
     to direct the disposition of, pursuant to any agreement, arrangement or
     understanding (whether or not in writing); or

          (iii) which are beneficially owned, directly or indirectly, by any
     other Person with which such Person or any of such Person's Affiliates or
     Associates has any agreement, arrangement or understanding for the purpose
     of acquiring, holding, voting or disposing of any securities of the
     Company;

provided, however, that a Person shall not be deemed the Beneficial Owner of, or
to Beneficially Own, any security if the agreement, arrangement or understanding
to vote such security (1) arises solely from the grant of a revocable proxy or
consent given to such Person in connection with a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules and
regulations under the Exchange Act, and (2) is not also then reportable on
Schedule 13D (or any comparable or successor report) under the Exchange Act;
provided, further, that a Person engaged in business as an underwriter of
securities shall not be deemed the "Beneficial Owner" of securities acquired
through such person's participation in good faith in a firm commitment
underwriting until the expiration of the 40-day period immediately following the
date of such acquisition.

                                       4
<PAGE>

     Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such Co-Rights Agent or Agents as it may
deem necessary or desirable and determine the respective duties of the Rights
Agent and the Co-Rights Agents; provided, however, no such appointment or
allocation of duties shall change or increase the Rights Agent's duties,
liabilities or obligations. The Rights Agent shall have no duty to supervise,
and in no event shall be liable for, the acts or omissions of any such Co-Rights
Agent. Contemporaneously with such appointment, if any, the Company shall notify
the Rights Agent thereof.

     Section 3. Issuance of Right Certificates.

     (a) Until the Close of Business on the earlier of (i) the tenth Business
Day after a Stock Acquisition Date or (ii) the tenth Business Day (or such later
date as the Company's Board of Directors shall determine) after the date of the
commencement by any Person (other than an Exempt Person) of, or the date of the
first public announcement (such commencement date or announcement date being
herein referred to as the "Offer Date") of the intent of any Person (other than
an Exempt Person) to commence, a tender or exchange offer (other than a
Qualified Offer) upon the successful consummation of which such Person, together
with its Affiliates and Associates, would be the Beneficial Owner of 15% or more
of the then outstanding Voting Stock (irrespective of whether any shares are
actually purchased pursuant to such offer) (the tenth Business Day after the
first to occur of a Stock Acquisition Date or an Offer Date being herein
referred to as the "Distribution Date"),

          (i) the Rights will automatically attach to, and be evidenced by, the
     certificates for Common Stock registered in the names of the holders of
     Common Stock (which certificates for Common Stock shall be deemed also to
     be Right Certificates) and not by separate Right Certificates, and

          (ii) each Right will be transferable only in connection with the
     transfer of the underlying shares of Common Stock.

     Upon the occurrence of a Distribution Date, the Company shall promptly
notify the Rights Agent and request a stockholder list from the Company's
transfer agent. As soon as practicable after the Rights Agent receives such
notice and stockholder list, the Rights Agent will mail, by first-class,
insured, postage prepaid mail, to each record holder of Common Stock as of the
Close of Business on the Distribution Date, as shown by the records of the
Company at the Close of Business on the Distribution Date, at the address of
such holder shown on such records, a Right Certificate, in substantially the
form of Exhibit A hereto, evidencing one Right for each share of Common Stock so
held.

                                       5
<PAGE>

          (b) As soon as practicable after the Rights Record Date, the Company
     will send a copy of a Summary of Rights, in substantially the form attached
     hereto as Exhibit B, by first-class mail, postage prepaid, to each record
     holder of Common Stock as of the Close of Business on the Rights Record
     Date, at the address of such holder shown on the records of the Company.

          (c) The Company will cause certificates for Common Stock issued after
     the Rights Record Date (including replacement certificates for shares of
     Common Stock outstanding on or prior to the Rights Record Date), but prior
     to the earliest of (i) the Distribution Date, (ii) the Expiration Date and
     (iii) the date, if any, on which the Rights may be redeemed, to have
     impressed on, printed on, written on or otherwise affixed to them the
     following legend:

          This certificate also entitles the holder hereof to certain Rights as
          set forth in the Rights Agreement between the Company and American
          Stock Transfer & Trust Company as Rights Agent as the same shall be
          amended from time to time (the "Rights Agreement"), the terms of which
          are hereby incorporated herein by reference and a copy of which is on
          file at the principal executive offices of the Company. Under certain
          circumstances, as set forth in the Rights Agreement, such Rights will
          be evidenced by separate certificates and will no longer be evidenced
          by this certificate. The Company will mail to the holder of this
          certificate a copy of the Rights Agreement without charge after
          receipt of a written request therefor. Under certain circumstances set
          forth in the Rights Agreement, Rights issued to, or held by, any
          Person who is, was or becomes an Acquiring Person or any Affiliate or
          Associate thereof (as such terms are defined in the Rights Agreement)
          or certain transferees of any thereof, whether currently held by or on
          behalf of such Person or by any subsequent holder, may be limited as
          provided in Section 7(f) of the Rights Agreement.

With respect to such certificates containing the foregoing legend, until the
Distribution Date, the Rights associated with Common Stock represented by such
certificates shall be evidenced by such certificates alone, and the surrender
for transfer of any such certificates shall also constitute the transfer of the
Rights associated with the Common Stock represented by such certificate.

          (d) Until the Distribution Date, the surrender for transfer of any of
     the certificates for Common Stock outstanding on or after the Rights Record
     Date, with or without a copy of the Summary of Rights attached thereto and
     with or without the legend set forth in subsection (c) above, shall also
     constitute the transfer of the Rights associated with such Common Stock.
     After the Distribution Date, the Rights will be evidenced solely by the
     Right Certificates.

     Section 4. Form of Right Certificates.

          (a) The Right Certificates (and the forms of assignment and
     certification and of election to purchase shares to be printed on the
     reverse thereof) shall be in substantially the form of Exhibit A hereto and
     may have such marks of identification or designation and such legends,
     summaries or endorsements printed thereon as the Company may deem
     appropriate (which do not affect the duties or responsibilities of the
     Rights Agent) and as are not inconsistent with the provisions of this
     Agreement, or as may be required to comply with any law or with any rule or
     regulation made pursuant thereto or with any rule or regulation of any
     stock exchange on which the Rights may from time to time be listed, or to
     conform to usage.

                                       6
<PAGE>

          (b) Any Right Certificate issued pursuant to Section 3(a) or Section
     22 that represents Rights Beneficially Owned by: (i) an Acquiring Person or
     any Associate or Affiliate of any Acquiring Person, (ii) a transferee of an
     Acquiring Person (or of any such Associate or Affiliate) who becomes a
     transferee after the Acquiring Person becomes such, or (iii) a transferee
     of an Acquiring Person (or of any such Associate or Affiliate) who becomes
     a transferee prior to or concurrently with the Acquiring Person becoming
     such and receives such Rights pursuant to either (A) a transfer (whether or
     not for consideration) from the Acquiring Person to holders of equity
     interests in such Acquiring Person or to any Person with whom such
     Acquiring Person has any continuing agreement, arrangement or understanding
     regarding the transferred Rights, or (B) a transfer which the Board of
     Directors of the Company has determined is part of a plan, arrangement or
     understanding which has as a primary purpose or effect avoidance of Section
     7(f), and any Right Certificate issued pursuant to Section 6 or Section 11
     upon transfer, exchange, replacement or adjustment of any other Right
     Certificate referred to in this sentence, shall contain (to the extent
     feasible and reasonably identifiable as such) the following legend:

          The Rights represented by this Right Certificate are or were
          beneficially owned by a Person who was or became an Acquiring Person
          or an Affiliate or Associate of an Acquiring Person (as such terms are
          defined in the Rights Agreement) or certain transferees thereof.
          Accordingly, under certain circumstances as provided in the Rights
          Agreement, this Right Certificate and the Rights represented hereby
          may be limited as provided in Section 7(f) of such Agreement.

     Section 5. Countersignature and Registration.

          (a) The Right Certificates shall be executed on behalf of the Company
     by its Chairman of the Board, its President or any of its Vice Presidents,
     either manually or by facsimile signature, and have affixed thereto the
     Company's seal or a facsimile thereof which shall be attested by the
     Secretary or an Assistant Secretary of the Company, either manually or by
     facsimile signature. The Right Certificates shall be manually countersigned
     by the Rights Agent and shall not be valid for any purpose unless so
     countersigned. In case any officer of the Company who shall have signed any
     of the Right Certificates shall cease to be such officer of the Company
     before countersignature by the Rights Agent and issuance and delivery by
     the Company, such Right Certificates, nevertheless, may be countersigned by
     the Rights Agent, issued and delivered with the same force and effect as
     though the person who signed such Right Certificates had not ceased to be
     such officer of the Company; and any Right Certificate may be signed on
     behalf of the Company by any person who, at the actual date of the
     execution of such Right Certificate, shall be a proper officer (as
     specified above) of the Company to sign such Right Certificate, although at
     the date of the execution of this Rights Agreement any such person was not
     such an officer.

                                       7
<PAGE>

          (b) Following the Distribution Date and receipt by the Rights Agent of
     the notice and list of record holders referred to in Section 3(a) above,
     the Rights Agent will keep or cause to be kept books for registration and
     transfer of the Right Certificates issued hereunder. Such books shall show
     the names and addresses of the respective holders of the Right
     Certificates, the number of Rights evidenced on its face by each Right
     Certificate, the date of each Right Certificate and the number of each
     Right Certificate.

     Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.

          (a) Subject to the provisions of Section 4(b), Section 7(f) and
     Section 14, at any time after the Close of Business on the Distribution
     Date, and prior to the Close of Business on the Expiration Date or the day
     prior to the day, if any, on which the Rights are to be redeemed pursuant
     to Section 23, any Right Certificate or Certificates may be transferred,
     split up, combined or exchanged for another Right Certificate or Right
     Certificates, entitling the registered holder to purchase such number of
     Units as the Right Certificate or Right Certificates surrendered then
     entitled such holder to purchase. Any registered holder desiring to
     transfer, split up, combine or exchange any Right Certificate shall make
     such request in writing delivered to the Rights Agent, and shall surrender
     the Right Certificate(s) to be transferred, split up, combined or
     exchanged, with the form of assignment on the reverse side(s) thereof duly
     completed and executed, at the office of the Rights Agent designated
     pursuant to Section 25 hereof. Thereupon the Rights Agent shall countersign
     and deliver to the persons entitled thereto the Right Certificate(s)
     requested. The Company may require payment of a sum sufficient to cover any
     tax or governmental charge that may be imposed in connection with any
     transfer, split up, combination or exchange of Right Certificates. The
     Rights Agent may delay the processing of such transaction until it receives
     evidence that all applicable taxes and governmental charges have been paid.
     Notwithstanding the foregoing, neither the Rights Agent nor the Company
     shall be obligated to take any action whatsoever with respect to the
     transfer of any such surrendered Right Certificate unless and until the
     registered holder shall have completed and signed the certificate contained
     in the form of assignment on the reverse side of such Right Certificate and
     shall have provided such additional evidence of the identity of the
     Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
     thereof as the Company shall reasonably request.

          (b) Upon receipt by the Company and the Rights Agent of evidence
     satisfactory to them of the loss, theft, destruction or mutilation of a
     Right Certificate, and, in case of loss, theft or destruction, of indemnity
     or security satisfactory to them, and reimbursement to the Company and the
     Rights Agent of all reasonable expenses incidental thereto, and upon
     surrender to the Rights Agent and cancellation of the Right Certificate, if
     mutilated, the Company will execute and deliver a new Right Certificate of
     like tenor to the Rights Agent for delivery to the registered owner in lieu
     of the Right Certificate so lost, stolen, destroyed or mutilated.

                                       8
<PAGE>

     Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights.

          (a) Subject to Section 7(f), and unless earlier redeemed as provided
     in Section 23, the registered holder of any Right Certificate may exercise
     the Rights evidenced thereby in whole or in part at any time after the
     Distribution Date upon surrender of the Right Certificate, with the form of
     election to purchase on the reverse side thereof duly completed and
     executed, to the Rights Agent at the office of the Rights Agent, together
     with payment of the Purchase Price for each Unit as to which the Rights are
     exercised, at or prior to the Close of Business on the third anniversary of
     the Rights Record Date or such other date to which the Rights may be
     extended as provided in this Agreement (the latest of such dates being
     herein referred to as the "Expiration Date"). If at any time after the
     Distribution Date but prior to the Expiration Date the Company is unable,
     under its Certificate of Incorporation, to issue the number and class of
     shares required to be issued upon the exercise of all of the outstanding
     Rights, the Company may issue upon exercise of any of the Rights shares of
     capital stock or other securities of the Company of equivalent value to the
     shares so required to be issued ("Equivalent Stock"), as determined by the
     Board of Directors.

          (b) The Purchase Price for each Unit pursuant to the exercise of a
     Right shall initially be $3.00, shall be subject to adjustment from time to
     time as provided in Sections 11 and 13 and shall be payable in lawful money
     of the United States of America.

          (c) Upon receipt of a Right Certificate, with the form of election to
     purchase duly executed, accompanied by payment of the Purchase Price for
     the Units to be purchased and an amount equal to any applicable tax or
     governmental charge in cash, or by certified check, bank draft or money
     order payable to the order of the Company, the Rights Agent shall thereupon
     promptly (i) requisition from the Company or any transfer agent of the
     Company a certificate for the number of shares to be purchased and the
     Company will comply, and hereby irrevocably authorizes its transfer agent
     to comply, with all such requests, (ii) requisition from the Company the
     amount of cash to be paid in lieu of issuance of a fractional share, when
     appropriate, in accordance with Section 14, and (iii) promptly after
     receipt of such certificate from any such transfer agent, cause the same to
     be delivered to or upon the order of the registered holder of such Right
     Certificate, registered in such name or names as may be designated by such
     holder, and, when appropriate, after receipt promptly deliver such cash in
     lieu of a fractional share to or upon the order of the registered holder of
     such Right Certificate; provided, however, that in the case of the
     purchase, in connection with the exercise of a Right, of securities other
     than shares of stock, the Rights Agent shall promptly take the appropriate
     actions with respect thereto as shall as nearly as practicable correspond
     to the actions described in the foregoing clauses (i) through (iii).

          (d) The Company shall not be required to pay any transfer tax which
     may be payable in respect of any transfer involved in the transfer or
     delivery of Right Certificates, or the issuance or delivery of certificates
     in a name other than that of the registered holder of the Right Certificate
     evidencing Rights surrendered for exercise, or to issue or deliver any
     certificates upon the exercise of any Rights, until any such tax shall have
     been paid (any such tax being payable by the holder of such Right
     Certificate at the time of surrender) or until it has been established to
     the Company's satisfaction that no such tax is due.

                                       9
<PAGE>

          (e) In case the registered holder of any Right Certificate shall
     exercise less than all the Rights evidenced thereby, a new Right
     Certificate evidencing Rights equivalent to the Rights remaining
     unexercised shall be issued by the Rights Agent to the registered holder of
     such Right Certificate or to his duly authorized assigns, subject to the
     provisions of Section 14.

          (f) Notwithstanding any provision of this Agreement to the contrary,
     upon the occurrence of any of the events described in any of clauses (A),
     (B), (C) or (D) of Section 11(a)(ii), the adjustment provided for under
     Section 11(a)(ii) shall not apply with respect to any Rights that are at
     the time of the occurrence of such event Beneficially Owned by (i) an
     Acquiring Person or by any Associate or Affiliate of such Acquiring Person
     (which Acquiring Person or Affiliate or Associate engages in, or realizes
     the benefit of, one or more of the transactions described in clause (A) or
     clause (B) of Section 11(a)(ii), realizes the benefits set forth in clause
     (C) of Section 11(a)(ii) or, alone or together, become the Beneficial
     Owner(s) of a number of shares of Voting Stock which equals or exceeds the
     percentage of the general voting power as provided in clause (D) of Section
     11(a)(ii), as the case may be), or (ii) a transferee of an Acquiring Person
     or of any Associate or Affiliate of such Acquiring Person (which Acquiring
     Person or Associate or Affiliate engages in, or realizes the benefit of,
     one or more of the transactions described in clause (A) or clause (B) of
     Section 11(a)(ii), realizes the benefits set forth in clause (C) of Section
     11(a)(ii) or, alone or together with such Acquiring Person or any such
     Associate or Affiliate, become the Beneficial Owner(s) of a number of
     shares of Voting Stock which equals or exceeds the percentage of the
     general voting power as provided in clause (D) of Section 11(a)(ii), as the
     case may be) (A) who becomes a transferee after the Acquiring Person
     becomes such, or (B) who becomes a transferee prior to or concurrently with
     the Acquiring Person becoming such and receives such Rights pursuant to
     either (1) a transfer (whether or not for consideration) from the Acquiring
     Person to holders of equity interests in such Acquiring Person or to any
     Person with whom such Acquiring Person has any continuing agreement,
     arrangement or understanding regarding the transferred Rights or (2) a
     transfer which the Board of Directors of the Company has determined is part
     of a plan, arrangement or understanding which has as a primary purpose or
     effect the avoidance of this Section 7(f). Upon the exercise of such
     Rights, the holders thereof shall be entitled to receive, upon payment of
     the Purchase Price, the number of Units issuable upon exercise of such
     Rights without giving effect to the adjustment provided for under Section
     11(a)(ii). The Company shall use all reasonable efforts to insure that the
     provisions of this Section 7(f) and Section 4(b) are complied with, but
     shall have no liability to any holder of Right Certificates or other Person
     as a result of its making or failing to make any determinations with
     respect to an Acquiring Person or its Affiliates, Associates or transferees
     hereunder.

          (g) Notwithstanding anything in this Agreement to the contrary,
     neither the Rights Agent nor the Company shall be obligated to undertake
     any action with respect to a registered holder upon the occurrence of any
     purported exercise as set forth in this Section 7 unless such registered
     holder shall have (i) properly completed and signed the certificate
     contained in the form of election to purchase set forth on the reverse side
     of the Right Certificate surrendered for such exercise, and (ii) provided
     such additional evidence of the identity of the Beneficial Owner (or former
     Beneficial Owner) or Affiliates or Associates thereof as the Company or the
     Rights Agent shall reasonably request.

                                       10
<PAGE>

     Section 8. Cancellation and Destruction of Right Certificates. All Right
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in cancelled form,
or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
this Agreement. The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and retire, any other Right
Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all cancelled Right
Certificates to the Company, or shall, at the written request of the Company,
destroy such cancelled Right Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company.

     Section 9. Reservation and Availability of Shares; Registration.

     (a) The Company covenants and agrees that it shall (i) on or prior to the
Rights Record Date, take all such action as shall be necessary to cause to be
reserved and kept available out of its authorized and unissued capital stock,
the number, class and series of shares that will be sufficient to permit the
exercise in full of all Rights to be outstanding as of the Rights Record Date,
(ii) no later than promptly following the Distribution Date, take all such
action as shall be necessary to cause to be reserved and kept available out of
its authorized and unissued capital stock, or its authorized and issued shares
held in its treasury, the number of additional shares that will, from time to
time, be sufficient to permit the exercise in full of all Rights from time to
time outstanding, (iii) take all such action as may be necessary to insure that
all shares delivered upon exercise of Rights shall, at the time of delivery of
the certificates for such shares (subject to payment of the Purchase Price), be
duly and validly authorized and issued and fully paid and nonassessable, and
(iv) pay when due and payable any and all federal and state transfer taxes and
charges which may be payable in respect of the issuance or delivery of the Right
Certificates or of any shares upon the exercise of Rights (except as otherwise
provided in Section 7(d)).

     (b) The Company agrees to take all such action, from and after the
Distribution Date, as may be necessary or appropriate to permit the issuance of
shares in connection with the exercise of the Rights, including any required
registration under (i) the Securities Act of 1933, as amended from time to time
(the "Securities Act"), and (ii) the securities or "blue sky" laws of the
various states. The Company may temporarily suspend, for a period of time not to
exceed 90 days, the exercisability of the Rights in order to prepare and file a
registration statement or statements for the purpose of effecting any such
registration and permit such statement(s) to become effective. At the
commencement and termination of any such suspension, the Company shall issue a
public announcement and shall provide written notice to the Rights Agent,
stating that the exercisability of the Rights has been temporarily suspended, or
that such suspension has terminated, as the case may be.

                                       11
<PAGE>

     (c) If and so long as the stock issuable upon the exercise of Rights is
listed on any national securities exchange, the Company shall use its reasonable
efforts to cause all shares reserved for issuance upon exercise of Rights to be
listed on such exchange upon official notice of issuance upon such exercise.

     Section 10. Record Date. Each Person in whose name any stock certificate is
issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares represented thereby on, and such
certificate shall be dated, the date upon which the Right Certificate evidencing
such Rights was duly surrendered and payment of the Purchase Price (and any
applicable transfer taxes and other governmental charges) was made. Prior to the
exercise of the Rights evidenced thereby, the holder of a Right Certificate
shall not be entitled to any rights of a stockholder of the Company with respect
to shares for which the Rights shall be exercisable, including without
limitation the right to vote or to receive dividends or other distributions, and
such holder shall not be entitled to receive any notice of any proceedings of
the Company, except as provided herein.

     Section 11. Adjustment of Purchase Price, Number of Shares or Number of
Rights. The Purchase Price, the number and kind of shares or other securities
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

     (a) (i) In the event the Company shall at any time after the date of this
Agreement (A) declare and pay a dividend on the shares which are subject to the
Rights ("Subject Shares") payable in shares of stock of the Company, (B)
subdivide or split the Subject Shares, (C) combine or consolidate the Subject
Shares into a smaller number of shares or effect a reverse stock split of the
Subject Shares or (D) issue any shares of its capital stock in a
reclassification of the Subject Shares (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), then, and in each such event, except as otherwise
provided in this Section 11(a), the Purchase Price in effect at the time of the
record date for such dividend or of the effective date of such subdivision,
split, reverse split, combination, consolidation or reclassification, and the
number and kind of shares of capital stock issuable on such date, shall be
proportionately adjusted so that the holder of any Right exercised after such
time shall be entitled to receive the aggregate number and kind of shares of
capital stock which, if such Right had been exercised immediately prior to such
date and at a time when the transfer books of the Company were open, he would
have received upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, split, reverse split, combination, consolidation or
reclassification. If an event occurs which would require an adjustment under
both this Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in
this Section 11(a)(i) shall be in addition to, and shall be made prior to, any
adjustment required pursuant to Section 11(a)(ii).

     (ii) In the event that at any time after the date of this Agreement

                                       12
<PAGE>

          (A) any Acquiring Person, or any Associate or Affiliate of any
     Acquiring Person, directly or indirectly (1) shall merge into the Company
     or any of its Subsidiaries or otherwise combine with the Company or any of
     its Subsidiaries and the Company or such Subsidiary shall be the continuing
     or surviving corporation of such merger or combination and the Common Stock
     shall remain outstanding and the outstanding shares thereof shall not be
     changed into or exchanged for stock or other securities of the Company or
     of any other Person or cash or any other property, or (2) shall sell or
     otherwise transfer in one or more transactions, assets to the Company or
     any of its Subsidiaries in exchange for 25 percent or more of the shares of
     any class of capital stock of the Company or any of its Subsidiaries, and
     the Common Stock shall remain outstanding and unchanged, or

          (B) directly or indirectly, any Acquiring Person, or any Associate or
     Affiliate of any Acquiring Person, shall (1) in one or more transactions,
     transfer any assets to the Company or any of its Subsidiaries in exchange
     (in whole or in part) for shares of any class of capital stock of the
     Company or any of its Subsidiaries or for securities exercisable for or
     convertible into shares of any class of capital stock of the Company or any
     of its Subsidiaries or otherwise obtain from the Company or any of its
     Subsidiaries, with or without consideration, any additional shares of any
     class of capital stock of the Company or any of its Subsidiaries or other
     securities exercisable for or convertible into shares of any class of
     capital stock of the Company or any of its Subsidiaries (other than as part
     of a pro rata distribution by the Company or such Subsidiary to all holders
     of Common Stock), (2) sell, purchase, lease, exchange, mortgage, pledge,
     transfer or otherwise dispose (in one or more transactions), to, from or
     with, as the case may be, the Company or any of its Subsidiaries, assets on
     terms and conditions less favorable to the Company or such Subsidiary than
     the Company or such Subsidiary would be able to obtain in arm's-length
     negotiation with an unaffiliated third party, (3) receive any compensation
     from the Company or any of the Company's Subsidiaries other than
     compensation for full-time employment as a regular employee, or fees for
     serving as director, at rates in accordance with the Company's (or its
     Subsidiaries') past practices, or (4) receive the benefit, directly or
     indirectly (except proportionately as a stockholder), of any loans,
     advances, guarantees, pledges or other financial assistance provided by the
     Company or any of its Subsidiaries, on terms and conditions less favorable
     to the Company or such Subsidiary than the Company or such Subsidiary would
     be able to obtain in arm's-length negotiation with an unaffiliated third
     party, or

          (C) during any such time as there is an Acquiring Person, there shall
     be any reclassification of securities (including any reverse stock split),
     or recapitalization of the Company, or any merger or consolidation of the
     Company with any of its Subsidiaries or any other similar transaction or
     series of transactions involving the Company or any of its Subsidiaries
     (whether or not with or into or otherwise involving an Acquiring Person or
     any Affiliate or Associate of such Acquiring Person) which has the effect,
     directly or indirectly, of increasing by more than one percent the
     proportionate share of the outstanding shares of any class of equity
     securities, or of securities exercisable for or convertible into equity
     securities, of the Company or any of its Subsidiaries which is directly or
     indirectly owned by any Acquiring Person or any Associate or Affiliate of
     any Acquiring Person, or

                                       13
<PAGE>

          (D) any Person shall become an Acquiring Person otherwise than
     pursuant to a Qualified Offer,

then, and in each such case, but subject to the provisions of Section 27, proper
provision shall be made so that each holder of a Right, except as provided below
and in Section 7(f), shall, on and after the later of (I) the date of the
occurrence of an event described in clause (A), (B), (C) or (D) of this Section
11(a)(ii), or (II) the date of the expiration of the period within which the
Rights may be redeemed pursuant to Section 23 (as the same may have been amended
as provided in Section 26), have the right to receive, upon exercise thereof and
payment of ten times the then current Purchase Price, such number of shares of
Common Stock as shall equal the result obtained by (x) multiplying by ten the
product of the then current Purchase Price and the then number of Units for
which a Right is then exercisable and dividing that product by (y) 50 percent of
the current market price per share of Common Stock (determined in accordance
with Section 11(d)) on the date of the occurrence of the relevant event listed
above in clause (A), (B), (C) or (D) of this subparagraph (ii); provided,
however, that if the transaction that would otherwise give rise to the foregoing
adjustment is also subject to the provisions of Section 13, then only the
provisions of Section 13 shall apply and no adjustment shall be made pursuant to
this Section 11(a)(ii). The Company shall not consummate any such merger,
combination, transfer or transaction referred to in any of such clauses (A), (B)
and (C) unless prior thereto there shall be sufficient authorized but unissued
Common Stock to permit the exercise in full of the Rights in accordance with the
foregoing sentence, unless the Board of Directors has determined to issue
Equivalent Stock in accordance with Section 7(a); provided, however, that in no
case may the Company consummate any such merger, combination, transfer or
transaction if at the time of or immediately after such transaction there are
any rights, warrants or other instruments or securities outstanding or
agreements in effect which would substantially diminish or otherwise eliminate
the benefits intended to be afforded by the Rights.

     In the event that the Company issues Equivalent Stock upon the exercise of
any Rights pursuant to the immediately preceding paragraph, then, upon any such
exercise, proper provision shall be made so that the holder of a Right (except
as provided in Section 7(f)) shall have the right to receive, upon such exercise
at the then current Purchase Price, such number of shares or other units of
Equivalent Stock of the Company as shall equal the result obtained by (x)
multiplying the then current Purchase Price by the number of Units for which a
Right is then exercisable and dividing that product by (y) 50 percent of the
current market price per share or other unit of the Equivalent Stock of the
Company (determined on substantially the same basis as is prescribed by Section
11(d) with respect to the valuation of Common Stock) on the date of occurrence
of the relevant event listed above in clause (A), (B), (C) or (D) of this
subparagraph (ii). In the event that at any time the Company should be
prohibited by law, by any provision of its Certificate of Incorporation, or by
any instrument or agreement to which the Company is a party or by which it is
bound, from issuing, or should be unable under its Certificate of Incorporation
to issue, sufficient Equivalent Stock to permit the exercise of all outstanding
Rights in accordance with the foregoing sentence, then, in lieu of issuing such
Equivalent Stock upon such exercise, the Company shall pay to each holder of a
Right (except as provided in Section 7(f)) upon surrender of the Right as
provided herein but without payment of the Purchase Price, an amount in cash for
each Right equal to the Purchase Price.

                                       14
<PAGE>

     (b) In case the Company shall at any time after the Rights Record Date fix
a record date for the issuance of rights or warrants to all holders of Common
Stock or Subject Shares entitling them (for a period expiring within 45 calendar
days after such record date) to subscribe for or purchase Common Stock or
Subject Shares or securities convertible into Common Stock or Subject Shares at
a price per share (or having a conversion price per share, if a security
convertible into Common Stock) less than the current market price per share
(determined in accordance with Section 11(d)) on such record date, the Purchase
Price to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a
fraction, of which the numerator shall be the total number of shares of Common
Stock and Subject Shares outstanding on such record date plus the number of
shares of Common Stock which the aggregate offering price of the total number of
shares so to be offered (and/or the aggregate initial conversion price of the
convertible securities so to be offered) would purchase at such current market
price and of which the denominator shall be the total number of shares of Common
Stock and Subject Shares outstanding on such record date plus the number of
additional shares to be offered for subscription or purchase (or into which the
convertible securities to be offered are initially convertible). In case such
subscription or purchase price may be paid, in whole or in part, in a form other
than cash, the value of such consideration shall be as determined in good faith
by the Board of Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent. Shares owned by or held for the
account of the Company shall not be deemed outstanding for the purpose of any
such computation. Such adjustment shall be made successively whenever such a
record date is fixed, and in the event that such rights or warrants are not so
issued, the Purchase Price shall be adjusted to be the Purchase Price which
would then be in effect if such record date had not been fixed.

     (c) In case the Company shall at any time after the Rights Record Date fix
a record date for the making of a distribution on the shares of Common Stock or
the Subject Shares, whether by way of a dividend, distribution, reclassification
of stock, recapitalization, reorganization or partial liquidation of the Company
or otherwise (and including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing corporation), of
subscription rights or warrants (excluding those referred to in Section 11(b)),
evidences of indebtedness or other assets (other than (i) regular periodic cash
dividends, (ii) a dividend payable in Common Stock or (iii) a distribution which
is part of or is made in connection with a transaction to which Section
11(a)(ii) or Section 13 applies), the Purchase Price to be in effect after such
record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, of which the numerator
shall be the current market price per share of Common Stock (determined in
accordance with Section 11(d)) on such record date, less the fair market value
applicable to one share of Common Stock (as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent) of such assets or evidences of
indebtedness or of such subscription rights or warrants so to be distributed,
and of which the denominator shall be such current market price per share of
Common Stock. Such adjustments shall be made successively whenever such a record
date is fixed; and in the event that such distribution is not so made, the
Purchase Price shall again be adjusted to be the Purchase Price which would then
be in effect if such record date had not been fixed.

                                       15
<PAGE>

     (d) For the purpose of any computation hereunder, the "current market
price" per share of Common Stock on any date shall be deemed to be the average
of the daily closing prices per share of such Common Stock for the 30
consecutive Trading Days immediately prior to such date; provided, however, that
in the event that the current market price per share of Common Stock is
determined during a period following the announcement by the issuer of such
Common Stock of a dividend or distribution on such Common Stock payable in
shares of such Common Stock or securities convertible into shares of Common
Stock (other than the Rights), and prior to the expiration of 30 Trading Days
after the ex-dividend date for such dividend or distribution, then, and in each
such case, the current market price shall be appropriately adjusted to reflect
the current market price per share of Common Stock in connection with
ex-dividend trading. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange or,
if the shares of Common Stock are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the shares of Common Stock are listed or admitted
to trading or, if the shares of Common Stock are not listed or admitted to
trading on any national securities exchange, the average of the high bid and low
asked prices in the over-the-counter market, as reported by the National
Association of Securities Dealers, Inc., Automated Quotation System ("NASDAQ").
If on any such date the shares of Common Stock are not quoted by any such
organization, the fair market value of such shares on such date as determined in
good faith by the Board of Directors of the issuer of such Common Stock shall be
used. Any such determination of current market price shall be described in a
statement filed with the Rights Agent.

     For the purpose of any computation hereunder, the "current market price" of
a Unit shall be deemed to be equal to the current market price per share of
Common Stock, and the "current market price" of a Subject Share shall be deemed
to be equal to the current market price per share of Common Stock divided by the
number of Subject Shares which comprise a Unit.

     For purposes of this Agreement, the term "Trading Day" shall mean a day on
which the principal national securities exchange on which the shares of Common
Stock are listed or admitted to trading is open for the transaction of business
or, if the shares of Common Stock are not listed or admitted to trading on any
national securities exchange, a Business Day.

                                       16
<PAGE>

     (e) No adjustment in the Purchase Price shall be required unless such
adjustment would require an increase or decrease of at least one percent in such
Price; provided, however, that any adjustments which by reason of this Section
11(e) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 11
shall be made to the nearest cent or to the nearest one-hundredth of a share, as
the case may be. Notwithstanding the proviso to the first sentence of this
Section 11(e), any adjustment required by this Section 11 shall be made no later
than the earlier of (i) three years from the date of the transaction which gives
rise to such adjustment or (ii) the date of the expiration of the right to
exercise any Rights.

     (f) In the event that at any time, as a result of an adjustment made
pursuant to Section 11(a), the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than
shares of Common Stock, thereafter the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions, with
respect to such shares, contained in Sections 11(a) through (c), inclusive, and
the provisions of Sections 7, 9, 10, 13 and 14 with respect to the shares of
Common Stock shall apply on like terms to any such other shares.

     (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall represent the right to
purchase, at the adjusted Purchase Price, the number of shares purchasable from
time to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein.

     (h) Unless the Company shall have exercised its election as provided in
Section 11(i), upon each adjustment of the Purchase Price as a result of the
calculations made in Sections 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Purchase Price, that number of shares (calculated to
the nearest one-hundredth) obtained by (i) multiplying (x) the number of shares
covered by a Right immediately prior to such adjustment by (y) the Purchase
Price in effect immediately prior to such adjustment of the Purchase Price and
(ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

     (i) The Company may elect (and shall provide the Rights Agent with notice
of such election) on or after the date of any adjustment of the Purchase Price
to adjust the number of Rights, in substitution for any adjustment in the number
of shares purchasable upon the exercise of each Right. Each of the Rights
outstanding after such adjustment of the number of Rights shall be exercisable
for the number of Units for which a Right was exercisable immediately prior to
such adjustment. Each Right held of record prior to such adjustment of the
number of Rights shall become that number of Rights (calculated to the nearest
one-hundredth) obtained by dividing the Purchase Price in effect immediately
prior to adjustment of the Purchase Price by the Purchase Price in effect
immediately after adjustment of the Purchase Price. The Company shall make a
public announcement of its election to adjust the number of Rights, indicating
the record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Right Certificates have
been issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(i) the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to
Section 14, the additional Rights to which such holders shall be entitled as a
result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Right Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Purchase Price) and shall be registered in the
names of the holders of record of Right Certificates on the record date
specified in the public announcement.

                                       17
<PAGE>

     (j) Irrespective of any adjustment or change in the Purchase Price or the
number of shares issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the
Purchase Price per share and the number of shares which were expressed in the
initial Right Certificates issued hereunder.

     (k) In any case in which this Section 11 requires that an adjustment in the
Purchase Price be made effective as of the record date for a specified event,
the Company may elect to defer until the occurrence of such event the issuance
to the holder of any Right exercised after such record date of the additional
shares or securities of the Company, if any, issuable as a consequence of such
adjustment; provided, however, that the Company shall deliver to such holder a
due bill or other appropriate instrument evidencing such holder's right to
receive such additional shares or securities upon the occurrence of such event.

     (l) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such adjustments in the number of shares which
may be acquired upon exercise of the Rights, and such adjustments in the
Purchase Price, in addition to those adjustments expressly required by the other
subsections of this Section 11, as and to the extent that the Company, in its
sole discretion, shall determine to be advisable, in order that, in the event of
(i) any reclassification, consolidation or subdivision of the Common Stock, (ii)
any reorganization or partial liquidation of the Company or similar transaction,
(iii) any issuance wholly for cash of any Common Stock at less than the current
market price, (iv) any issuance wholly for cash of Common Stock or securities
which by their terms are convertible into or exchangeable for Common Stock, (v)
any stock dividends or (vi) any issuance of rights, options or warrants,
hereafter made by the Company to holders of its Common Stock as provided
herein-above in this Section 11, (x) the holders of the Rights in any such event
shall be treated equitably and in accordance with the purpose and intent of this
Agreement, and (y) to the extent reasonably possible, such event shall not, in
the opinion of counsel for the Company, result in the stockholders of the
Company being subject to any United States federal income tax liability by
reason thereof.

                                       18
<PAGE>

     Section 12. Certification of Adjusted Purchase Price or Number of Shares.
Whenever an adjustment is made as provided in Section 11 or 13, the Company
shall (i) promptly prepare a certificate setting forth such adjustment, and a
brief, reasonably detailed statement of the facts, computations and methodology
accounting for such adjustment, (ii) promptly file with the Rights Agent and
with each transfer agent for the Common Stock a copy of such certificate, and
(iii) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25. Notwithstanding the foregoing sentence, the failure
of the Company to give such notice shall not affect the validity of, or the
force or effect of, the requirement for such adjustment.

     Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning
Power.

     (a) In the event that, at any time after an Acquiring Person has become
such,

          (i) the Company shall consolidate with, or merge with and into, any
     other Person and the Company shall not be the continuing or surviving
     corporation of such consolidation or merger,

          (ii) any other Person(s) shall consolidate or merge with and into the
     Company, the Company shall be the continuing or surviving corporation of
     such merger and, in connection with such consolidation or merger, all or
     part of the Common Stock shall be changed into or exchanged for stock or
     other securities of the Company or of any other Person or cash or any other
     property, or

          (iii) the Company shall sell or otherwise transfer (or one or more of
     its Subsidiaries shall sell or otherwise transfer), in one or more
     transactions, assets or earning power aggregating more than 50 percent of
     the assets or earning power of the Company and its Subsidiaries (taken as a
     whole) to any other Person, (other than a pro rata distribution by the
     Company of assets (including securities) of the Company or any of its
     Subsidiaries to all holders of the Company's Common Stock),

then, on and after the later of (I) the date of the occurrence of an event
described in clause (i), (ii) or (iii) of this Section 13(a), or (II) the date
of the expiration of the period within which the Rights may be redeemed pursuant
to Section 23 (as the same may have been amended as provided in Section 26):

               (A) proper provision shall be made so that each holder of a Right
          shall thereafter have the right to receive, upon the exercise thereof
          at the then current Purchase Price, such number of shares of common
          stock of the Principal Party as shall be equal to the result obtained
          by (x) multiplying the then current Purchase Price by the number of
          Units for which a Right is then exercisable and dividing that product
          by (y) 50 percent of the current market price per share of the common
          stock of the Principal Party (determined in the same manner as the
          current market price of Common Stock is determined under Section
          11(d)) on the date of consummation of such consolidation, merger, sale
          or transfer;

                                       19
<PAGE>

               (B) the Principal Party shall thereafter be liable for, and shall
          assume, by virtue of such consolidation, merger, sale or transfer, all
          the obligations and duties of the Company pursuant to this Agreement,
          and proper provision shall be made for the foregoing, provided that
          the Principal Party shall, prior to the first occurrence of an event
          described in clause (i), (ii) or (iii) of this Section 13(a), have
          caused to be reserved out of its authorized and unissued shares of
          common stock (or its authorized and issued shares of common stock held
          in its treasury), for issuance pursuant to this Agreement, the number
          of shares of common stock that will be sufficient to permit the
          exercise in full of the Rights after the occurrence of such event;

               (C) the term "Company" wherever used in this Agreement shall
          thereafter be deemed to refer to such Principal Party; and

               (D) the Principal Party shall, in addition to the reservation of
          shares of its common stock as provided in the proviso to clause (B)
          above, take such steps (including without limitation compliance with
          the Company's other obligations as set forth in Section 9) in
          connection with such consummation as may be necessary to assure that
          the provisions hereof shall thereafter be applicable, as nearly as
          reasonably may be, in relation to the shares of its Common Stock
          thereafter deliverable upon the exercise of the Rights; provided,
          however, that, upon the subsequent occurrence of any merger,
          consolidation, sale of all or substantially all assets,
          recapitalization, reclassification of shares, reorganization or other
          extraordinary transaction in respect of such Principal Party, each
          holder of a Right shall thereupon be entitled to receive, upon
          exercise of a Right and payment of the Purchase Price, such cash,
          shares, rights, warrants and other property which such holder would
          have been entitled to receive had such holder, at the time of such
          transaction, owned the shares of common stock of the Principal Party
          purchasable upon the exercise of a Right, and such Principal Party
          shall take such steps (including, but not limited to, reservation of
          shares of stock) as may be necessary to permit the subsequent exercise
          of the Rights in accordance with the terms hereof for such cash,
          shares, rights, warrants and other property.

     (b) For purposes of this Agreement, "Principal Party" shall mean

          (i) in the case of any transaction described in clause (i) or (ii) of
     Section 13(a), (A) the Person that is the issuer of the securities into
     which shares of Common Stock are converted in such merger or consolidation,
     or, if there is more than one such issuer, the issuer the common stock of
     which has the greatest market value, or (B) if no securities are so issued,
     (x) the Person that is the other party to the merger or consolidation and
     that survives said merger or consolidation, or, if there is more than one
     such Person, the Person the common stock of which has the greatest market
     value or (y) if the Person that is the other party to the merger or
     consolidation does not survive the merger or consolidation, the Person that
     does so survive (including the Company if it survives); and

                                       20
<PAGE>

          (ii) in the case of any transaction described in clause (iii) of
     Section 13(a), the Person that is the party receiving the greatest portion
     of the assets or earning power transferred pursuant to such transaction or
     transactions, or, if each Person that is a party to such transaction or
     transactions receives the same portion of the assets or earning power so
     transferred or if the Person receiving the greatest portion of the assets
     or earning power cannot be determined, whichever of such Persons is the
     issuer of common stock having the greatest market value of shares
     outstanding;

provided, however, that in any such case, (1) if the common stock of such Person
is not at such time and has not been continuously over the preceding 12-month
period registered under Section 12 of the Exchange Act, and such Person is a
direct or indirect Subsidiary of another corporation the common stock of which
is and has been so registered, "Principal Party" shall refer to such other
corporation; (2) if the common stock of such Person is not and has not been so
registered and such Person is not a direct or indirect Subsidiary of another
corporation the common stock of which is and has been so registered, "Principal
Party" shall refer to the corporation which ultimately controls such Person; (3)
in case such Person is a Subsidiary, directly or indirectly, of more than one
corporation, the common stocks of all of which are and have been so registered,
"Principal Party" shall refer to whichever of such corporations is the issuer of
common stock having the greatest market value of shares held by the public; and
(4) if the common stock of such Person is not and has not been so registered and
such Person is owned, directly or indirectly, by a joint venture formed by two
or more Persons that are not owned, directly or indirectly, by the same Person,
the rules set forth in clauses (1), (2) and (3) above shall apply to each of the
chains of ownership having an interest in such joint venture as if such Person
were a "Subsidiary" of both or all of such joint venturers and the Principal
Party in each such chain shall bear the obligations set forth in this Section 13
in the same ratio as its direct or indirect interests in such Person bear to the
total of such interests.

     (c) The Company shall not consummate any such consolidation, merger, sale
or transfer unless prior thereto the Company and the Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement making valid
provision for the results described in clause (A) of Section 13(a) and
confirming that the Principal Party will perform its obligations under this
Section 13; provided, however, that in no case may the Company consummate any
such consolidation, merger, sale or transfer if (i) at the time of or
immediately after such transaction there are any rights, warrants or other
instruments or securities outstanding or agreements in effect which would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights or (ii) prior to, simultaneously with or immediately
after such transaction, the shareholders of the Person which constitutes, or
would constitute, the Principal Party for purposes of this Section 13 shall have
received a distribution of Rights previously owned by such Person or any of its
Affiliates and Associates.

                                       21
<PAGE>

     (d) The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. This Section 13 shall not
be applicable to a transaction described in Subparagraphs (i), (ii) or (iii) of
Subsection (a) of this Section if (i) such transaction is consummated with a
Person or Persons who acquired Common Stock pursuant to a Qualified Offer (or a
wholly owned subsidiary of any such Person or Persons), (ii) the price per share
of Common Stock offered in such transaction or distributable to shareholders
upon conclusion of such transaction is not less than the price per share of
Common Stock paid to all holders of Common Stock whose shares were purchased
pursuant to such Qualified Offer and (iii) the form of consideration being
offered to the remaining holders of Common Stock pursuant to such transaction or
distributable to shareholders upon conclusion of such transaction is the same as
the form of consideration paid pursuant to such Qualified Offer. Upon conclusion
of any transaction described in the foregoing sentence, all Rights shall expire.

     Section 14. Fractional Rights and Fractional Shares.

     (a) The Company shall not be required to issue fractions of Rights or to
distribute Right Certificates which evidence fractional Rights. If the Company
shall elect not to issue such fractional Rights, in lieu of such fractional
Rights, there shall be paid to the registered holders of the Right Certificates
with regard to which such Fractional Rights would otherwise be issuable an
amount in cash equal to the same fraction of the current market value of a whole
Right. For the purposes of this Section 14(a), the current market value of a
whole Right shall be the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights would have been
otherwise issuable. The closing price for any day shall be the last sale price,
regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Rights
are not listed or admitted to trading on the New York Stock Exchange, as
reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or
admitted to trading on any national securities exchange, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ.
If on any such date the Rights are not quoted by any such organization, the fair
value of the Rights on such date as determined in good faith by the Board of
Directors of the Company shall be used. Any such determination of current market
value shall be described in a statement filed with the Rights Agent.

     (b) The Company shall not be required to issue fractions of shares upon
exercise of a Right or to distribute certificates which evidence fractional
shares. In lieu of fractional shares, the Company shall pay to the registered
holders of Right Certificates at the time such Right Certificates are exercised
as herein provided an amount in cash equal to the same fraction of the current
market value of a share of Common Stock. For purposes of this Section 14, the
current market value of a share of Common Stock shall be the closing price of a
share of Common Stock (as determined pursuant to the second sentence of Section
11(d)) for the Trading Day immediately prior to the date of such exercise.

                                       22
<PAGE>

     (c) The holder of a Right by the acceptance thereof expressly waives his
right to receive any fractional Rights or any fractional shares upon exercise of
a Right.

     Section 15. Rights of Action. All rights of action in respect of this
Agreement are vested in the respective registered holders of the Right
Certificates (and prior to the Distribution Date, the registered holders of the
Common Stock), and any registered holder of any Right Certificate (or, prior to
the Distribution Date, any registered holder of the Common Stock), without the
consent of the Rights Agent or of the holder of any other Right Certificate (or,
prior to the Distribution Date, any other registered holder of the Common
Stock), may, on his own behalf and for his own benefit, enforce, and may
institute and maintain, any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations
of the obligations of any Person subject to, this Agreement.

     Section 16. Agreement of Right Holders. Every holder of a Right by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

     (a) prior to the Distribution Date, the Rights will be transferable only in
connection with the transfer of Common Stock;

     (b) on and after the Distribution Date, the Right Certificates will be
transferable only on the registry books of the Rights Agent if surrendered at
the designated office of the Rights Agent, duly endorsed or accompanied by a
proper instrument of transfer; and

     (c) the Company and the Rights Agent may deem and treat the Person in whose
name the Right Certificate (or, prior to the Distribution Date, the associated
Common Stock certificate) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing
on the Right Certificates or the associated Common Stock certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent shall be affected by any notice to
the contrary.

     Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder,
as such, of any Right Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of Common Stock or any other securities
of the Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Right
Certificate be construed to confer upon the holder of any Right Certificate, as
such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in Section 24), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by such Right Certificate shall
have been exercised in accordance with the provisions hereof.

                                       23
<PAGE>

     Section 18. Concerning the Rights Agent.

     (a) The Company agrees to pay to the Rights Agent reasonable compensation
for all services rendered by it hereunder and, from time to time, on demand of
the Rights Agent, its reasonable expenses and counsel fees and other
disbursements incurred in the preparation, delivery, amendment, administration
and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability, damage, judgement, fine, penalty,
claim, demand, settlement, cost or expense incurred without gross negligence,
bad faith or willful misconduct on the part of the Rights Agent as determined by
a court of competent jurisdiction for any action taken, suffered or omitted by
the Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of
liability in the premises. The indemnity provided herein shall survive the
termination of this Agreement and the termination, redemption or expiration of
the Rights. The costs and expenses incurred in enforcing this right of
indemnification shall be paid by the Company.

     (b) The Rights Agent shall be authorized and protected and shall incur no
liability for or in respect of any action taken, suffered or omitted by it in
connection with its administration of this Agreement in reliance upon any Right
Certificate or Certificate for Common Stock or for other securities of the
Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement, or other
paper or document believed by it, acting with reasonable care, to be genuine and
to be signed, executed and, where necessary, verified or acknowledged, by the
proper person or persons.

     If and for so long as the Rights are listed on the New York Stock Exchange
or the American Stock Exchange, the Rights Agent, if its principal offices are
located outside New York City, shall maintain in the New York City area
facilities for the servicing of the Rights in the area of Manhattan located
south of Chambers Street. Such facilities may consist of either an office or
agency where transactions in the Rights are serviced directly or a "drop" where
Common Stock certificates, Right Certificates, and other instruments relating to
transactions in Rights may be received for redelivery to an office or agency
outside New York City, all in accordance with the applicable rules of the stock
exchange on which the Rights are listed.

     Section 19. Merger or Consolidation or Change of Name of Rights Agent.

     (a) Any Person into which the Rights Agent or any successor Rights Agent
may be merged or with which it may be consolidated, or any Person resulting from
any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any Person succeeding to the shareholder services
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
provided that such Person would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21. In case at the time such
successor Rights Agent shall succeed to the agency created by this Agreement any
of the Right Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor
Rights Agent and deliver such Right Certificates so countersigned, and in case
at that time any of the Right Certificates shall not have been countersigned,
any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

                                       24
<PAGE>

     (b) In case at any time the name of the Rights Agent shall be changed and
at such time any of the Right Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Right Certificates so countersigned, and in case at that time any of
the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name, and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

     Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties
and obligations, and only the duties and obligations, expressly imposed by this
Agreement (and no implied duties and obligations) upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

     (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the advice or opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent with respect
to, and the Rights Agent shall incur no liability for or in respect of, any
action taken, suffered or omitted by it in good faith and in accordance with
such advice or opinion.

     (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking, suffering or omitting any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the President,
any Vice President, or the Secretary of the Company and delivered to the Rights
Agent, and such certificate shall be full authorization and protection to the
Rights Agent and the Rights Agent shall incur no liability for or in respect of
any action taken, suffered or omitted in good faith by it under the provisions
of this Agreement in reliance upon such certificate.

     (c) The Rights Agent shall be liable hereunder only for its own gross
negligence, bad faith or willful misconduct as determined by a court of
competent jurisdiction. In no event shall the Rights Agent be liable for
special, indirect, punitive, incidental or consequential loss or damages of any
kind whatsoever (including without limitation lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage. Any liability
of the Rights Agent under this Agreement shall be limited to the amount of fees
paid by the Company to the Rights Agent.

                                       25
<PAGE>

     (d) The Rights Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

     (e) The Rights Agent shall not be under any liability or responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Right Certificate (except its countersignature
thereof), nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate,
nor shall it be responsible for any adjustment required under the provisions of
Section 11 or 13 or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any
such adjustment (except with respect to the exercise of Rights evidenced by
Right Certificates after actual notice of any such adjustment), nor shall it by
any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of stock to be issued pursuant to
this Agreement or any Right Certificate or as to whether any shares of stock
will, when issued, be validly authorized and issued, fully paid and
nonassessable.

     (f) The Company agrees that it will perform, execute, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performance by the Rights Agent of
the provisions of this Agreement.

     (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the President, any Vice President or the Secretary of the
Company, and to apply to such officers for advice or instructions in connection
with its duties, such instructions shall be full authorization and protection to
the Rights Agent and the Rights Agent shall incur no liability for or in respect
of any action taken or suffered to be taken by it in good faith in accordance
with instructions of any such officer. The Rights Agent may conclusively rely on
the most recent instructions given by any such officer.

     (h) The Rights Agent and any shareholder, affiliate, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

                                       26
<PAGE>

     (i) The Rights Agent may execute and exercise any of the rights or powers
hereby vested in it or perform any duty hereunder either itself or by or through
its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company or any other Person resulting from any
such act, default, neglect or misconduct, absent gross negligence, bad faith or
willful misconduct in the selection and continued employment thereof.

     (j) If, with respect to any Right Certificate surrendered to the Rights
Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has either not
been completed or indicates an affirmative response to clause 1 and/or 2
thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first obtaining the Company's approval.

     Section 21. Change of Rights Agent. Unless the Company and the Rights Agent
agree to a shorter time period, the Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon 15 days'
notice in writing mailed to the Company and to each transfer agent of Common
Stock by registered or certified mail, and to the holders of the Right
Certificates by first-class mail. Unless the Company and the Rights Agent agree
to a shorter time period, the Company may remove the Rights Agent or any
successor Rights Agent upon 15 days' notice in writing, mailed to the Rights
Agent or successor Rights Agent, as the case may be, and to each transfer agent
of Common Stock by registered or certified mail, and to the holders of the Right
Certificates by first-class mail. If the Rights Agent shall resign or be removed
or shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 15 days after such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (who shall,
with such notice, submit his Right Certificate for inspection by the Company),
then the registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be a
corporation (including a limited liability company) organized and doing business
under the laws of the United States or of the State of California or the State
of New York (or of any other state so long as such corporation is authorized to
do business in California or New York) in good standing, which is authorized
under such laws to exercise stock transfer powers and is subject to supervision
or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least
$50,000,000. After appointment, the successor Rights Agent shall be vested with
the same powers, rights, duties and responsibilities as if it had been
originally named as Rights Agent without further act or deed, but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
Common Stock and mail a notice thereof in writing to the registered holders of
the Right Certificates. Failure to give any notice provided for in this Section
21, however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

                                       27
<PAGE>

     Section 22. Issuance of New Right Certificates. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Right Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Expiration Date, the Purchase Price per share or the number or kind or class
of shares of stock or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement.

     Section 23. Redemption.

     (a) The Board of Directors of the Company may, at its option and as
provided herein, and notwithstanding the provisions of Sections 11 and 13 of
this Agreement, elect to redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.001 per Right, appropriately
adjusted to reflect any stock split, stock dividend, reclassification or similar
transaction occurring after the date hereof (such redemption price being herein
referred to as the "Redemption Price") at any time up to the Close of Business
on the tenth Business Day after a Stock Acquisition Date.

     (b) Immediately upon the action of the Board of Directors of the Company
electing to redeem the Rights, the Company shall make a public announcement
thereof, and from and after the date of such announcement, without any further
action and without any further notice, the right to exercise the Rights will
terminate and the only right thereafter of the holders of Rights shall be to
receive the Redemption Price. The Rights Agent shall be notified immediately of
such Board action. As soon as practicable after the election of the Board of
Directors to redeem the Rights, the Company shall give notice of such redemption
to the holders of the then outstanding Rights by mailing such notice to all such
holders at their last addresses as they appear upon the registry books of the
Rights Agent. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price
will be made.

     Section 24. Notice of Proposed Actions. In case the Company, after the
Rights become exercisable, shall propose (i) to pay any dividend payable in
stock of any class to the holders of its Common Stock or the Subject Shares or
to make any other distribution to the holders of its Common Stock or Subject
Shares (other than a regular periodic cash dividend), or (ii) to offer to the
holders of its Common Stock or Subject Shares rights or warrants to subscribe
for or to purchase any additional shares of Common Stock or shares of stock of
any class or any other securities, rights or options, or (iii) to effect any
reclassification of its Common Stock or Subject Shares (other than a
reclassification involving only the subdivision of outstanding shares of Common
Stock) or any recapitalization or reorganization of the Company, or (iv) to
effect any consolidation or merger into or with, or to effect any sale or other
transfer (or to permit one or more of its Subsidiaries to effect any sale or
other transfer), in one or more transactions, of more than 50 percent of the
assets or earning power of the Company and its Subsidiaries (taken as a whole)
to, any other Person, or (v) to effect the liquidation, dissolution or winding
up of the Company, then, in each such case, the Company shall give to the Rights
Agent and to each holder of a Right, in accordance with Section 25, a notice of
such proposed action, which shall specify the record date for the purposes of
such dividend, distribution of rights or warrants, or the date on which such
reclassification, recapitalization, reorganization, consolidation, merger, sale,
transfer, liquidation, dissolution or winding up is to take place and the date
of participation therein by the holders of Common Stock and/or Subject Shares,
if any such date is to be fixed, and such notice shall be so given in the case
of any action covered by clause (i) or (ii) above at least twenty days prior to
the record date for determining holders of the Common Stock and/or Subject
Shares for purposes of such action, and in the case of any such other action, at
least twenty days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of Common Stock and/or Subject
Shares, whichever shall be the earlier. The failure to give notice required by
this Section 24 or any defect thereon shall not affect the legality or validity
of the action taken by the Company or the vote upon any such action.

                                       28
<PAGE>

     Section 25. Notices. Notices or demands authorized by this Agreement to be
given or made by the Rights Agent or by the holder of any Right Certificate to
or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                 Advanced Marketing Services, Inc.
                 5880 Oberlin Drive
                 San Diego, California 92121
                 Attention: Bruce C. Myers
                            President and Chief Executive Officer

     Subject to the provisions of Section 21, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Right
Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Company) as follows:

                 American Stock Transfer & Trust Company
                 59 Maiden Lane
                 New York, New York 10038
                 Attention: Corporate Trust Department

     Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to or on the holder of any Right Certificate shall
be sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company.

     Section 26. Supplements and Amendments. Prior to the Distribution Date and
subject to the penultimate sentence of this Section 26, the Company and the
Rights Agent shall, if the Company so directs, supplement or amend any provision
of this Agreement without the approval of any holders of certificates
representing shares of Common Stock. From and after the Distribution Date and
subject to the penultimate sentence of this Section 26, the Company and the
Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Right Certificates in order (i)
to cure any ambiguity, (ii) to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
(iii) to shorten or lengthen any time period hereunder, or (iv) to change or
supplement the provisions hereof in any manner which the Company may deem
necessary or desirable and which shall not adversely affect the interests of the
holders of Right Certificates; provided, however, this Agreement may not be
supplemented or amended to lengthen, pursuant to clause (iii) of this sentence,
(A) a time period relating to when the Rights may be redeemed at such time as
the Rights are not then redeemable, or (B) any other time period, unless such
lengthening is for the purpose of protecting, enhancing or clarifying the rights
of, and/or the benefits to, the holders of Rights. Upon the delivery of a
certificate from an appropriate officer of the Company which states that the
proposed supplement or amendment is in compliance with the terms of this Section
26, the Rights Agent shall execute such supplement or amendment. Notwithstanding
anything contained in this Agreement to the contrary: (1) no supplement or
amendment shall be made which changes the Redemption Price, the Purchase Price
or the number of shares or Units for which a Right is exercisable; and (2) the
duration of the Rights may not be shortened without the written consent of the
registered holders thereof (other than by a redemption of the Rights pursuant to
Section 23). Prior to the Distribution Date, the interests of the holders of
Rights shall be deemed coincident with the interests of the holders of Common
Stock.

                                       29
<PAGE>

     Section 27. Exchange.

     (a) The Board of Directors of the Company may, at its option, at any time
after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights that have
become subject to the provisions of Section 7(f) hereof) for Common Stock at an
exchange ratio of one share of Common Stock per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after
the date hereof (such exchange ratio being hereinafter referred to as the
"Exchange Ratio").

     (b) Immediately upon the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to subsection (a) of this Section
and without any further action and without any notice, the right to exercise
such Rights shall terminate and the only right thereafter of a holder of such
Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The
Company shall promptly give public notice and written notice to the Rights Agent
of any such exchange; provided, however, that the failure to give, or any defect
in, such notice shall not affect the validity of such exchange. The Company
promptly shall mail a notice of any such exchange to all of the holders of such
Rights at their last addresses as they appear upon the registry books of the
Rights Agent. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
exchange will state the method by which the exchange of the Common Stock for
Rights will be effected and, in the event of any partial exchange, the number of
Rights which will be exchanged. Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights which have become subject to
the provisions of Section 7(f) hereof) held by each holder of Rights.

                                       30
<PAGE>

     (c) In the event that there shall not be sufficient authorized Common Stock
to permit an exchange of Rights as contemplated in accordance with this Section,
the Company shall take all such action as may be necessary to authorize
additional Common Stock or Equivalent Stock for issuance upon exchange of the
Rights.

     Section 28. Successors. All the covenants and provisions of this Agreement
by or for the benefit of the Company or the Rights Agent shall bind and inure to
the benefit of their respective successors and assigns hereunder.

     Section 29. Determination and Actions Taken by the Board of Directors. For
all purposes of this Agreement, any calculation of the number of shares of
Common Stock (or other applicable securities hereunder) outstanding at any
particular time, including for purposes of determining the particular percentage
of such outstanding shares of Common Stock (or other securities) of which any
Person is the Beneficial Owner, shall be made in accordance with the last
sentence of Rule 13d-3(d)(1)(i) (as in effect on the date of this Agreement) of
the General Rules and Regulations under the Exchange Act. The Board of Directors
of the Company shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to such
Board or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including without limitation the right and
power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to
amend the Agreement). All such actions, calculations, interpretations and
determinations (including, for purposes of clause (B) below, all omissions with
respect to the foregoing) which are done or made by the Board in good faith,
shall (A) be final, conclusive and binding on the Company, the Rights Agent, the
holders of the Rights and all other parties, and (B) not subject the Board to
any liability to the holders of the Rights.

     Section 30. Benefits of this Agreement. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution
Date, the holders of Common Stock) any legal or equitable right, remedy or claim
under this Agreement. This Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the holders of Common Stock).

     Section 31. Governing Law. This Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts made and to be performed
entirely within such State. The rights and obligations of the Rights Agent under
this Agreement shall be governed by and construed in accordance with the laws of
the State of New York applicable to contracts made and to be performed within
such State.

                                       31
<PAGE>

     Section 32. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

     Section 33. Section Headings. Descriptive headings of the several Sections
of this Agreement are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.

     Section 34. Severability. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, illegal, or unenforceable, (i) such invalid, illegal or
unenforceable term, provision, covenant or restriction shall nevertheless be
valid, legal and enforceable to the extent, if any, provided by such court or
authority, and (ii) the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

     THE COMPANY:

                                        By: /s/ Gary Lloyd
                                            ------------------------------------
                                            Name:  Gary Lloyd
                                            Title: Executive Vice President,
                                                   General Counsel and Secretary

     THE RIGHTS AGENT:

                                        By: /s/ Herbert J. Lemmer
                                            ------------------------------------
                                            Name:  Herbert J. Lemmer
                                            Title: Vice President

                                       32
<PAGE>

                                    Exhibit A
                                    ---------

                           [Form of Right Certificate]

                         Certificate No. R-_____ Rights

                  NOT EXERCISABLE AFTER PUBLIC ANNOUNCEMENT OF
                  REDEMPTION IS MADE. THE RIGHTS ARE SUBJECT TO
                  REDEMPTION, AT THE OPTION OF THE COMPANY, AT
                 $0.001 PER RIGHT ON THE TERMS SET FORTH IN THE
                     AGREEMENT. IN THE EVENT THAT THE RIGHTS
                  REPRESENTED BY THIS CERTIFICATE ARE ISSUED TO
               A PERSON WHO IS AN ACQUIRING PERSON OR AN ASSOCIATE
                 OR AFFILIATE THEREOF (AS SUCH TERMS ARE DEFINED
                 IN THE RIGHTS AGREEMENT) OR CERTAIN TRANSFEREES
                 THEREOF, THIS RIGHT CERTIFICATE AND THE RIGHTS
                  REPRESENTED HEREBY MAY BE SUBJECT TO CERTAIN
                  LIMITATIONS IN THE CIRCUMSTANCES SPECIFIED IN
                       SECTION 7 OF THE RIGHTS AGREEMENT.

                                RIGHT CERTIFICATE

     This certifies that _______________, or registered assigns, is the
registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Rights
Agreement, dated as of August 9, 2005 (the "Rights Agreement"), between Advanced
Marketing Services, Inc., (the "Company"), and American Stock Transfer & Trust
Company (the "Rights Agent"), to purchase from the Company, unless the Rights
have been previously redeemed, at any time after the Distribution Date (as such
term is defined in the Rights Agreement) and prior to the Expiration Date (as
such term is defined in the Rights Agreement), or the date, if any, on which the
Rights evidenced by this Certificate may be redeemed, at the designated office
of the Rights Agent, or its successors as Rights Agent, one one-tenth fully paid
and nonassessable share of Common Stock at a purchase price of $3.00 (the
"Purchase Price"), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly completed and executed. The number of
Rights evidenced by this Right Certificate as set forth above (and the number of
shares which may be purchased upon exercise thereof), and the Purchase Price set
forth above, are the number and Purchase Price as of the date of the Rights
Agreement based on the shares of Common Stock of the Company as constituted at
such date.

                                       1
<PAGE>

     Upon the occurrence of an event described in clause (A), (B), (C) or (D) of
Section 11(a)(ii) of the Rights Agreement, the holder of any Rights that are, or
were, beneficially owned by an Acquiring Person or an Associate or Affiliate
thereof (as such terms are defined in the Rights Agreement) or certain
transferees thereof which engaged in, or realized the benefit of, an event or
transaction or transactions described in clause (A), (B), (C) or (D) of such
Section 11(a)(ii), shall not be entitled to the benefit of the adjustment
described in such Section 11(a)(ii).

     As provided in the Rights Agreement, the Purchase Price and the number and
class of shares which may be purchased upon the exercise of the Rights evidenced
by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

     This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights under specific circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the office of the Rights Agent and
at the principal office of the Company.

     This Right Certificate, with or without other Right Certificates, upon
surrender at the office of the Rights Agent set forth hereon, may be exchanged
for another Right Certificate or Right Certificates of like tenor and date
evidencing Rights entitling the holder to purchase such number of shares as the
Rights evidenced by the Right Certificate or Right Certificates surrendered
shall have entitled such holder to purchase. If this Right Certificate shall be
exercised in part, the holder shall be entitled to receive upon surrender hereof
another Right Certificate or Right Certificates for the number of whole Rights
not exercised.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate may be redeemed by the Company at its option at a redemption
price of $0.001 per Right.

     No fractional shares will be issued upon the exercise of any Rights
evidenced hereby, but in lieu thereof a cash payment may be made, as provided in
the Rights Agreement.

     No holder of this Right Certificate shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of shares or of any other
securities of the Company which may at any time be issuable on the exercise
hereof, nor shall anything contained in the Rights Agreement or herein be
construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Right Certificate shall have been
exercised as provided in the Rights Agreement.

                                       2
<PAGE>

     This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

     WITNESS the facsimile signatures of the proper officers of the Company.
Dated as of ____________, 20__.

     Attest:

__________________________                        By: _________________________
     Secretary                                        Title:

     Countersigned:

__________________________ as Rights Agent
                              [Designated Office]

By:  ____________________

     Authorized Signature

                                       3
<PAGE>

                   [Form of Reverse Side of Right Certificate]

                               FORM OF ASSIGNMENT
                               ------------------
                (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate.)

     FOR VALUE RECEIVED ______________________________ hereby sells, assigns and
transfers unto____________________
____________________________________________________________________
                  (Please print name and address of transferee)
this Right Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint ____________________ Attorney to
transfer the within Right Certificate on the books of the within-named
Corporation, with full power of substitution.

Dated:  ____________, 20__ ______________________________
                                    Signature

Signature Guaranteed:

                                   CERTIFICATE
                                   -----------

     The undersigned hereby certifies (after due inquiry and to the best
knowledge of the undersigned) by checking the appropriate boxes that:
     (1) this Right Certificate [ ] is [ ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the
Rights Agreement);
     (2) the undersigned [ ] did [ ] did not acquire the Rights evidenced by
this Right Certificate from any Person who is, was or subsequently became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

Date:______________, 20__    ______________________________
                                      Signature

Signature Guaranteed:

                                     NOTICE
                                     ------

     The signature to the foregoing Assignment and Certificate must correspond
to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

                                       4
<PAGE>

                          FORM OF ELECTION TO PURCHASE
                          ----------------------------

                      (To be executed if holder desires to
                        exercise the Right Certificate.)

                      To the Company and the Rights Agent:

     The undersigned hereby irrevocably elects to exercise _________________
Rights represented by this Right Certificate and to purchase the shares issuable
upon the exercise of such Rights and requests that certificates for such shares
be issued in the name of: Please insert social security or other identifying
number: _____________________________

___________________________________________________________
                  (Please print name and address)
____________________________________________________________ If such number of
Rights shall not be all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights shall be registered
in the name of and delivered to:

Please insert social security
or other identifying number:  _____________________________

________________________________________________________________
                           (Please print name and address)

________________________________________________________________

Dated: ______________, 20__

                                 Signature: ____________________
                                (Signature must conform in all respects to name
                                of holder as specified on the face of this Right
                                Certificate)

Signature Guaranteed:

                                       5
<PAGE>

                                   CERTIFICATE
                                   -----------

     The undersigned hereby certifies (after due inquiry and to the best
knowledge of the undersigned) by checking the appropriate boxes that:

     (1) the Rights evidenced by this Right Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate or Associate of an Acquiring Person (as such terms are defined in
the Rights Agreement);

     (2) the undersigned [ ] did [ ] did not acquire the Rights evidenced by
this Right Certificate from any person who is, was or subsequently became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

Date: ______________, 20__         ______________________________
                                               Signature

     Signature Guaranteed:

                                     NOTICE
                                     ------

     The signature to the foregoing Election to Purchase and Certificate must
correspond to the name as written upon the face of this Right Certificate in
every particular, without alteration or enlargement or any change whatsoever.

                                       6Exhibit 10.1

                              AMENDED AND RESTATED
                                 LOAN AGREEMENT

                              BANK OF AMERICA, N.A.

                      $5,000,000 REVOLVING CREDIT FACILITY

                $20,000,000 ACQUISITION REVOLVING CREDIT FACILITY

                                       and

                         $20,000,000 TERM LOAN FACILITY

                                   PROVIDED TO

                           NATIONAL DENTEX CORPORATION

                                       and

                         GREEN DENTAL LABORATORIES, INC.

                                 August 9, 2005

<PAGE>

<TABLE>
<CAPTION>

                                                                                                                 PAGE

<S>                                                                                                              <C>
1.       The Credit Facility; Advances............................................................................2
         (a)      The Credit Facility.............................................................................2
         (b)      Advances........................................................................................2

2.       Interest; Payments; Fees; Borrowing......................................................................3
         (a)      Interest........................................................................................3
         (b)      Payments........................................................................................4
         (c)      Additional Payments.............................................................................5
         (d)      Notice of Borrowing.............................................................................5
         (e)      Special Provisions Governing Loans..............................................................6
         (f)      Increased Capital Costs........................................................................12
         (g)      Taxes..........................................................................................12

3.       Letters of Credit.......................................................................................13
         (a)      Issuance.......................................................................................13
         (b)      Notice of Proposed Issuance....................................................................13
         (c)      Conditions to Issuance.........................................................................14
         (d)      Expiry Dates...................................................................................14
         (e)      Drawings.......................................................................................14
         (f)      Reimbursement by the Borrowers.................................................................14
         (g)      Exculpatory Provisions.........................................................................15
         (h)      Indemnification by Borrowers...................................................................15

4.       Definitions.............................................................................................16

5.       Representations and Warranties..........................................................................23
         (a)      Organization...................................................................................23
         (b)      Authority......................................................................................23
         (c)      Approvals; Compliance with Statutes, Etc.......................................................24
         (d)      Valid Obligations..............................................................................24
         (e)      Assets.........................................................................................25
         (f)      Agreements.....................................................................................25
         (g)      Insurance......................................................................................25
         (h)      Litigation and Other Proceedings...............................................................25
         (i)      Labor Matters..................................................................................26
         (j)      ERISA..........................................................................................26
         (k)      Financial Statements...........................................................................26
         (l)      Projections....................................................................................27
         (m)      Taxes..........................................................................................27
         (n)      Investments....................................................................................27
         (o)      Investment Company.............................................................................27
         (p)      Equity Structure...............................................................................28
         (q)      Consolidated Total Funded Debt.................................................................28
         (r)      Patents, Copyrights and Trademarks.............................................................28
         (s)      Representations Accurate.......................................................................28
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                                             <C>
6.       Covenants...............................................................................................29
         (a)      Payments.......................................................................................29
         (b)      Intentionally omitted..........................................................................29
         (c)      Financial Report...............................................................................29
         (d)      Other Financial Reports  Dentex will also furnish, or cause to be furnished, to the Bank:......30
         (e)      Maintain Rights  Each Borrower shall:..........................................................30
         (f)      No Transfers...................................................................................31
         (g)      No Mergers.....................................................................................32
         (h)      Payment of Taxes...............................................................................32
         (i)      Guaranties.....................................................................................32
         (j)      Agreements.....................................................................................32
         (k)      Investments....................................................................................33
         (l)      Property.......................................................................................33
         (m)      Books and Records..............................................................................33
         (n)      Notices........................................................................................34
         (o)      Liens..........................................................................................35
         (p)      Modifications..................................................................................36
         (q)      Additional Indebtedness........................................................................36
         (r)      Payments to Affiliated Persons.................................................................36
         (s)      Minimum Consolidated Net Worth.................................................................37
         (t)      Fixed Charge Coverage Ratio....................................................................37
         (u)      Maximum Consolidated Total Funded Debt to Consolidated EBITDA..................................37
         (v)      Minimum Consolidated EBITDA....................................................................37
         (w)      Bank Accounts..................................................................................37
         (x)      Further Assurances.............................................................................38

7.       Conditions of Closing...................................................................................38
         (a)      Amended and Restated Line of Credit Notes; Term Note...........................................38
         (b)      Warranties and Covenants.......................................................................38
         (c)      Closing Certificate............................................................................38
         (d)      Financial Statements...........................................................................39
         (e)      Annual Report..................................................................................39
         (f)      Valuation Report...............................................................................39
         (g)      No Adverse Change..............................................................................39
         (h)      Closing Fees and Legal Expenses................................................................39
         (i)      Legal Opinions.................................................................................40
         (j)      Projections....................................................................................40
         (k)      Approvals......................................................................................40
         (l)      Legality of Transactions.......................................................................40
         (m)      Proof of Corporate Action; Good Standing.......................................................40
         (n)      Payoff and Release Confirmation................................................................41
         (o)      Organizational and Capital Structure...........................................................41
         (p)      Lien Searches..................................................................................41
         (q)      Other Searches.................................................................................41
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                                                                                                             <C>
8.       Conditions of Making Subsequent Advances................................................................41
         (a)      Representations and Warranties.................................................................42
         (b)      Performance....................................................................................42
         (c)      Acquisitions...................................................................................42

9.       Events of Default.......................................................................................43
         (a)      Representations and Warranties.................................................................43
         (b)      Covenants......................................................................................44
         (c)      Acceleration...................................................................................44
         (d)      Loan Documents.................................................................................44
         (e)      Voluntary Bankruptcy...........................................................................44
         (f)      Involuntary Bankruptcy.........................................................................45
         (g)      Seizure of Assets..............................................................................45
         (h)      Judgments......................................................................................45
         (i)      Liens..........................................................................................45
         (j)      Casualty Loss..................................................................................45
         (k)      Qualified Audit Report.........................................................................46
         (l)      Change of Control..............................................................................46
         (m)      ERISA..........................................................................................46

10.      Remedies................................................................................................47

11.      Joint and Several Liability.............................................................................48

12.      Miscellaneous...........................................................................................49
         (a)      Waivers........................................................................................49
         (b)      Delays.........................................................................................49
         (c)      Notices........................................................................................50
         (d)      Set-Off........................................................................................50
         (e)      Jurisdiction; Waiver of Jury Trial.............................................................50
         (f)      Usury..........................................................................................51
         (g)      Execution......................................................................................52
         (h)      Governing Law..................................................................................52
         (i)      Fees; Indemnification..........................................................................52
         (j)      Binding Nature.................................................................................52
         (k)      Assignment; Participations; Pledge to Federal Reserve..........................................52
         (l)      Under Seal.....................................................................................53
         (m)      Use of Proceeds................................................................................54
         (n)      Confidentiality................................................................................54

</TABLE>

                                     -iii-

<PAGE>

                                    EXHIBITS

----------------- ---------------------------------------------
    EXHIBIT                           FORM
----------------- ---------------------------------------------
       A          Form of Amended and Restated First Line of
                  Credit Note
----------------- ---------------------------------------------
       B          Form of Amended and Restated Second Line of
                  Credit Note
----------------- ---------------------------------------------
       C          Form of Term Note
----------------- ---------------------------------------------
       D          Form of Compliance Certificate
----------------- ---------------------------------------------
       E          Form of Joinder Agreement
----------------- ---------------------------------------------

                                      -iv-
<PAGE>

                                    SCHEDULES

Schedule 5(a)          Jurisdictions of Business Qualification of the Borrowers

Schedule 5(b)          Authority

Schedule 5(c)          Approvals

Schedule 5(e)          Assets and Properties; Liens

Schedule 5(g)          Insurance

Schedule 5(h)          Litigation and Other Proceedings

Schedule 5(i)          Labor Matters

Schedule 5(m)          Taxes

Schedule 5(n)          Investments

Schedule 5(p)          Equity Structure of Borrowers

Schedule 5(q)          Funded Debt

Schedule 5(r)          Patents and Trademarks

Schedule 6(v)          Bank Accounts

                                      -v-

<PAGE>

                              BANK OF AMERICA, N.A.
                               100 Federal Street
                           Boston, Massachusetts 02110

                                 August 9, 2005

David L. Brown, President and
   Chief Executive Officer
National Dentex Corporation
526 Boston Post Road
Wayland, MA 01778

          Re:     LOAN AGREEMENT

Dear Mr. Brown:

         This Amended and Restated Loan Agreement (the  "AGREEMENT")  is made as
of  August  9,  2005,  by  and  among  (a)(i)  National  Dentex  Corporation,  a
Massachusetts  corporation ("DENTEX") and (ii) Green Dental Laboratories,  Inc.,
an  Arkansas   corporation   ("GREEN"  and,   collectively   with  Dentex,   the
"BORROWERS"),  and (b) Bank of America,  N.A.,  organized and existing under the
laws of the United States (the "Bank").

         WHEREAS,  Dentex and the Bank are party to that certain Loan  Agreement
dated as of June 30,  2004  (the  "EXISTING  LOAN  Agreement")  consisting  of a
$5,000,000  revolving  credit facility and a $20,000,000  acquisition  revolving
credit facility;

         WHEREAS,  Dentex requested the Bank's consent to draw $20,000,000 under
the acquisition  revolving credit facility to finance in part Dentex's  purchase
of all of the issued and outstanding capital stock of Green;

         WHEREAS,  the  Bank  consented  to  Dentex's  use  of  the  acquisition
revolving  credit  facility to finance in part the purchase of all of the issued
and outstanding capital stock of Green; and

         WHEREAS,  the Bank,  Dentex and Greeen have agreed to amend and restate
the Existing  Loan  Agreement  to, among other  things:  (a) add a new term loan
facility in the aggregate principal amount of $20,000,000;  (b) use the proceeds
of such term loan to repay the acquisition  revolving credit  facility;  and (c)
include Green as a borrower thereunder.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby  acknowledged  (these  recitals being an integral
part of this Loan  Agreement)  the parties hereto hereby agree that the Existing
Loan Agreement is amended and restated in its entirety as follows:

                                      -1-
<PAGE>

1. THE CREDIT FACILITY; ADVANCES.

         (a) THE CREDIT  FACILITY.  The  Credit  Facility  shall  consist of the
following:(i)  a  revolving  line of credit  (the  "FIRST LINE OF CREDIT") in an
amount  equal to  $5,000,000,  available  until the day  prior  to,  and due and
payable on, the Lines of Credit Termination Date (as hereinafter  defined);  the
First Line of Credit shall include a sublimit for the issuance, on the terms and
conditions set forth in this Agreement,  of letters of credit for the Borrowers'
account,  PROVIDED that the Bank's LC Exposure (as  hereinafter  defined) at any
time shall not exceed $1,500,000. Advances under the First Line of Credit may be
used by the  Borrowers  for  their  general  corporate  purposes,  to  refinance
existing indebtedness and for the issuance of Letters of Credit.

                  (ii) a revolving  line of credit (the "SECOND LINE OF CREDIT")
in an amount equal to $20,000,000, available until the day prior to, and due and
payable on, the Lines of Credit  Termination  Date (The First Line of Credit and
the Second  Line of Credit may  collectively  hereinafter  be referred to as the
"LINES OF CREDIT").  Advances under the Second Line of Credit may be used by the
Borrowers  solely to fund  acquisitions  by the  Borrowers  in  accordance  with
Section 8 and the other terms and conditions hereof.

                  (iii) a term loan in the principal  amount of $20,000,000 (the
"TERM  LOAN") to be  funded  by the Bank on the  Closing  Date.  The  Borrowers,
jointly and  severally,  promise to pay to the Bank the principal  amount of the
Term Loan in consecutive installments on the last day of each calendar month, in
an amount  calculated  on the basis of a seven (7) year  amortization  schedule,
commencing on August 9, 2005, with a final payment on the Term Loan  Termination
Date in an amount equal to the unpaid  balance of the Term Loan. The proceeds of
the Term Loan shall be applied on the Closing  Date solely to the  repayment  of
the Second Line of Credit. No amount repaid with respect to the Term Loan may be
reborrowed.

         (b) ADVANCES

After the Closing,  advances under the Lines of Credit may be made, from time to
time,  until  the day prior to the Lines of  Credit  Termination  Date,  in such
amounts as the  Borrowers  may request;  PROVIDED  that in the case of the First
Line of  Credit  the  aggregate  principal  amount of all  advances  at any time
outstanding  under the First Line of Credit  (after giving effect to all amounts
requested)  PLUS the  aggregate  LC  Exposure  at such  time,  shall not  exceed
$5,000,000;  and in the  case  of the  Second  Line  of  Credit,  the  aggregate
principal amount of all advances at any time  outstanding  under the Second Line
of Credit  (after  giving  effect to all  amounts  requested)  shall not  exceed
$20,000,000, provided that any such advances under the Second Line of Credit are
subject  to the  provisions  set  forth in  Section  8(c) and 6(k)  hereof;  and
PROVIDED,  FURTHER,  that at the time the Borrowers request an advance under the
Lines of Credit and after  giving  effect to the making  thereof,  no Default or
Event of Default has  occurred and is  continuing.  Subject to the terms of this
Agreement,  advances  under  the  First  Line of  Credit,  once  repaid,  may be
reborrowed;  advances  under the Second  Line of  Credit,  once  repaid,  may be
reborrowed, subject to the provisions set forth in Section 8(c) and 6(k) hereof.
If at any time the outstanding  principal amount of the advances under a Line of
Credit exceeds the amount determined by reference to the limits set forth in the
first sentence of this Section 1(b), the Borrowers  shall promptly pay an amount
equal to such excess to the Bank.

                                      -2-
<PAGE>

         2. INTEREST; PAYMENTS; FEES; BORROWING.

         (a)  INTEREST.  Each advance,  from time to time,  under either Line of
Credit,  and the Term Loan or any  portion  thereof  as  applicable  shall  bear
interest (i) at an annual rate equal to the Prime Rate (as hereinafter  defined)
plus the Applicable  Margin with respect  thereto as in effect from time to time
(in which  case such  advance or Term Loan or portion  thereof,  as  applicable,
shall  be  designated  as a  "PRIME  RATE  LOAN"),  (ii)  at the  option  of the
Borrowers, at the LIBOR Lending Rate for the applicable Interest Period plus the
Applicable  Margin with respect thereto as in effect from time to time (in which
case such  advance  or Term Loan or portion  thereof,  as  applicable,  shall be
designated as a "LIBOR RATE LOAN"), (iii) at the option of the Borrowers, at the
Cost of Funds Rate for the applicable Interest Period plus the Applicable Margin
with respect  thereto as in effect from time to time (in which case such advance
or Term Loan or portion thereof,  as applicable,  shall be designated as a "COST
OF FUNDS RATE LOAN");  or (iv) at the option of the  Borrowers,  at a fixed rate
equal to the rate  announced  by the Bank on the date of the Notice of Borrowing
or on the date of any  conversion  of a Loan to such  fixed  rate (in which case
such advance or Term Loan or portion thereof, as applicable, shall be designated
as a "FIXED RATE LOAN").  If any such interest  rate is unlawful,  then the rate
shall be the highest rate  permitted  under  applicable  law.  Interest shall be
payable (i) in the case of Prime Rate Loans and Fixed Rate Loans,  in arrears on
the first (1st) Business Day of each month, (ii) in the case of LIBOR Rate Loans
and Cost of Funds Rate Loans, on the Interest Payment Dates applicable  thereto,
and (iii) in the case of any advance, when such advance shall be due (whether at
maturity,  by reason of prepayment or  acceleration  or otherwise) or converted,
but only to the extent  then  accrued on the  amount so due or  converted.  Each
change in the rate of interest payable on the Prime Rate Loans shall take effect
simultaneously  with the  corresponding  change  in the  Prime  Rate.  After the
occurrence and during the continuance of a Default or Event of Default and until
such Default or Event of Default has been cured, remedied or waived by the Bank,
the  principal  amount  of the  Lines of Credit  and the Term  Loan  shall  bear
interest  at the annual rate of two  percent  (2%) above the Prime Rate,  or, if
such rate is unlawful,  the highest rate  permitted  under  applicable  law (the
"POST-DEFAULT  RATE").  Any  amounts  overdue  under this  Agreement  shall bear
interest at the Post-Default  Rate.  Interest at the Post-Default  Rate shall be
payable on demand.  (b) PAYMENTS.  All payments received by the Bank from any of
the Borrowers,  except for the payments  referred to in Subsection (c) below and
regularly  scheduled  payments of the Term Loan under Section  1(a)(iii) hereof,
shall be applied first to expenses due hereunder,  then to accrued  interest and
then to principal. Upon the occurrence and during the continuance of an Event of
Default hereunder,  however,  payments may be applied in such manner as the Bank
may, in its sole  discretion,  determine.  All computations of interest shall be
made on the basis of a 360-day year. Advances under the Lines of Credit shall be
evidenced by this Agreement, the records of the Bank and, (i)(A) with respect to
the First Line of Credit, a promissory note in the form of Exhibit A hereto (the
"AMENDED AND RESTATED FIRST LINE OF CREDIT  NOTE"),  and (B) with respect to the
Second Line of Credit,  a  promissory  note in the form of Exhibit B hereto (the
"AMENDED AND  RESTATED  SECOND LINE OF CREDIT  NOTE"),  each due on the Lines of
Credit  Termination  Date (references in this Agreement to the term "Amended and
Restated Line of Credit Note" shall, except where the context does not otherwise
permit, be deemed to apply to both the Amended and Restated First Line of Credit
Note and the Amended and  Restated  Second Line of Credit  Note);  and (ii) with
respect to the Term Loan, a promissory note in the form of Exhibit C hereto (the
"TERM  NOTE"),  dated  as of  the  Closing  Date  and  due on  the  fifth  (5th)
anniversary  of the Closing  Date.  The LC  Reimbursement  Obligations  shall be
evidenced by this Agreement,  the records of the Bank and the Letters of Credit.
The records of the Bank shall be prima facie evidence of the advances hereunder,
the  aggregate  unpaid  amount  of  the  Term  Loan  and  the  LC  Reimbursement
Obligations  and, in each case, of accrued  interest thereon and of all payments
made in respect thereof.

                                      -3-
<PAGE>

         All payments due to the Bank hereunder,  under the Amended and Restated
Line of  Credit  Notes  or the  Term  Note  shall  be made  in U.S.  Dollars  in
immediately  available  funds at Bank of  America,  N.A.,  100  Federal  Street,
Boston, MA 02110 or at such other address as the Bank may designate by notice to
the  Borrowers.  A payment  to the Bank shall not be deemed to have been made on
any day unless  such  payment  shall  have been  received  by the Bank,  at such
address,  in U.S.  Dollars in immediately  available  funds, no later than 12:00
noon (Boston time) on such day.

         If any payment  under this  Agreement  becomes due and payable on a day
that is not a Business Day and this  Agreement  does not  otherwise  provide for
such contingency,  the maturity thereof shall be extended to the next succeeding
Business  Day, and with respect to any payment of  principal,  interest  thereon
shall be payable at the then applicable rate during any such extension.

         (c) ADDITIONAL  PAYMENTS.  In addition to the amounts  specified above,
the Borrowers  shall pay to the Bank the following in connection with the Credit
Facility:(i)  an unused facility fee equal to 1/8 of 1% per annum of the average
unborrowed  portion  of  the  First  Line  of  Credit  (giving  effect,  without
duplication, to the Bank's LC Exposure thereunder),  such average to be computed
for the  three-month  period  preceding  each  Payment Date on which such unused
facility  fee is payable (or such longer or shorter  period as has elapsed  from
the Closing  Date to the first of such  Payment  Dates),  payable  quarterly  in
arrears on the last Payment Dates specified herein, commencing on the first such
date following the Closing Date and on each Payment Date thereafter  through the
Lines of Credit Termination Date (with the last such fee payable on the Lines of
Credit Termination Date);

                                      -4-
<PAGE>

(ii) a  facility  fee of  $10,000.00  per annum for the  Second  Line of Credit,
payable annually in advance on the last day of June in each year,  commencing on
June 30, 2004;

                  (iii) a  Letter  of  Credit  issuance  fee  equal to 1% of the
original face amount of each Letter of Credit issued  hereunder,  payable at the
time of issuance of such Letter of Credit; and

                  (iv) an  audit  fee of  $1,000  for  each  field  audit of the
Borrower's books and records performed by the Bank, up to a maximum of $1,000 in
audit fees for each 12-month period.

         (d) VOLUNTARY PREPAYMENTS OF COST OF FUNDS RATE LOANS, FIXED RATE LOANS
AND PRIME RATE LOANS.

                           The  Borrowers  may,  upon notice to the Bank, at any
time or from time to time voluntarily prepay any Loan in
whole or in part without premium or penalty;  PROVIDED that (i) such notice must
be received  by the Bank not later than 1:00 p.m.  (A) three (3)  Business  Days
prior to any date of  prepayment  of a Cost of Funds  Rate Loan or a Fixed  Rate
Loan and (B) on the date of prepayment of a Prime Rate Loan; (ii) any prepayment
of a Cost of Funds Rate Loan shall be in an integral multiple of (x) $500,000 in
the case of Cost of Funds  Rate Loans  advanced  under the First Line of Credit,
(y) $1,000,000 in the case of Cost of Funds Rate Loans advanced under the Second
Line of Credit,  and (z)  $1,000,000  in the case of Cost of Funds Rate Loans of
any portion of the Term Loan; and (iii) any prepayment of a Prime Rate Loan or a
Fixed Rate Loan shall be in a principal  amount of $500,000 or a whole  multiple
of $100,000 in excess thereof,  or, in each case, if less, the entire  principal
amount  thereof then  outstanding.  Each such notice shall  specify the date and
amount of such  prepayment  and the  type(s) of Loan(s) to be  prepaid.  If such
notice is given by the Borrowers,  the Borrowers  shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date
specified therein.  Any prepayment of a Loan shall be accompanied by all accrued
interest  thereon.  Any  prepayment of a Fixed Rate Loan shall be accompanied by
such accrued interest, together with any Redeployment Costs required pursuant to
Section 2(g).

         (e) NOTICE OF BORROWING. Whenever the Borrowers elect to obtain a LIBOR
Rate Loan or Cost of Funds  Rate Loan or Fixed  Rate  Loan  under  either of the
Lines of Credit or in respect of the Term Loan or any portion thereof,  they may
request that the Bank provide  quotes as of any  specified  date as to the LIBOR
Lending  Rate or Cost of  Funds  Rate  Loan or  Fixed  Rate  Loan for any or all
Interest Periods, and the Bank shall promptly provide such quotes. The Borrowers
shall give the Bank prior telecopied or telephone notice, on a Business Day, (i)
not later than 10:00 a.m.  (Boston  time) on the day of any advance with respect
to a Prime  Rate  Loan or Fixed  Rate Loan and (ii) not later  than  10:00  a.m.
(Boston  time) at least two (2)  Business  Days prior to the day of any  advance
with  respect to a LIBOR Rate Loan or Cost of Funds Rate Loan.  Each such notice
shall be  irrevocable  once given and shall specify the principal  amount of the
advance to be made,  the date of the advance  (which  shall be a Business  Day),
whether each  advance is to be  maintained  as a Prime Rate Loan,  Cost of Funds
Rate Loan,  LIBOR Rate Loan, or Fixed Rate Loan, and in the case of a LIBOR Rate
Loan, Cost of Funds Rate Loan or Fixed Rate Loan, the Interest Period applicable
thereto. If such notice is given by telephone, it shall be immediately confirmed
in writing.  In the event that the  Borrowers at any time fail in such notice to
specify  any of the  information  required by this  subsection  to be given with
respect to a LIBOR Rate Loan,  Cost of Funds Rate Loan, or Fixed Rate Loan, then
the Borrowers  shall be deemed to have requested that the Bank make a Prime Rate
Loan. All advances hereunder shall be disbursed by the Bank not later than 12:00
noon  (Boston  time)  on  the  requested  date  therefor,  in  U.S.  Dollars  in
immediately  available funds, by credit to the Borrowers' operating account with
the Bank.

                                      -5-
<PAGE>

         (f) SPECIAL PROVISIONS GOVERNING LOANS

         Notwithstanding any other provisions of this Agreement to the contrary,
the  following  provisions  shall govern with respect to any LIBOR Rate Loans or
Cost of Funds Rate Loans (as applicable):

                  (i) REPAYMENT,  CONTINUATION  AND CONVERSION.  Each LIBOR Rate
Loan or Cost of Funds Rate Loan shall  mature  and,  with  respect to such Loans
under  the  Lines  of  Credit,  become  payable  in full on the  last day of the
Interest Period relating  thereto.  Upon maturity,  a LIBOR Rate Loan or Cost of
Funds Rate Loan may be continued  for an  additional  Interest  Period or may be
converted to a Prime Rate Loan as provided in clause (ii) below.

                  (ii)  CONTINUATION  AND CONVERSION  ELECTIONS.  Subject to the
provisions  hereof,  the  Borrowers  shall have the option (A) to convert at any
time one or more integral  multiples of $500,000 of its  outstanding  Prime Rate
Loans under the First Line of Credit into one or more LIBOR Rate Loans,  Cost of
Funds  Rate Loans or Fixed  Rate  Loans,  (B) to convert at any time one or more
integral  multiples of $1,000,0000 of its outstanding Prime Rate Loans under the
Second  Line of Credit  into one or more  LIBOR Rate  Loans,  Cost of Funds Rate
Loans or Fixed  Rate  Loans,  (C) to  convert  at any time one or more  integral
multiples of $1,000,000 of its outstanding  Prime Rate Loans under the Term Loan
into one or more  LIBOR Rate  Loans,  Cost of Funds  Rate  Loans,  or Fixed Rate
Loans,  (D) effective on and as of the expiration date of the Interest Period of
a LIBOR Rate Loan or Cost of Funds Rate Loan,  to continue  such loan LIBOR Rate
Loan or Cost of Funds Rate Loan,  respectively,  as such,  with an equivalent or
different  Interest Period, or (E) effective on and as of the expiration date of
the Interest  Period of a LIBOR Rate Loan or Cost of Funds Rate Loan, to convert
such loan to a Prime Rate Loan; PROVIDED, HOWEVER, that (x) a LIBOR Rate Loan or
Cost of Funds Rate Loans may only be  continued  pursuant to clause (D) above if
the outstanding  principal amount of such loan equals or exceeds $500,000 in the
case a LIBOR Rate Loan or Cost of Funds Rate Loan advanced  under the First Line
of  Credit,  $1,000,000  in the case of a LIBOR  Rate Loan or Cost of Funds Rate
Loans  advanced  under the Second Line of Credit,  or  $1,000,000 in the case of
LIBOR Rate Loan or Cost of Funds Rate Loans under the Term Loan;  (y) no portion
of the  outstanding  principal  amount of any  advance may be  converted  to, or
continued  as, a LIBOR Rate Loan or Cost of Funds Rate Loan when any  Default or
Event of  Default  has  occurred  and is  continuing;  and (z) no portion of the
outstanding  principal  amount of any LIBOR Rate Loan or Cost of Funds Rate Loan
may be converted to a LIBOR Rate Loan or Cost of Funds Rate Loan,  respectively,
of a  different  duration  if such  LIBOR  Rate Loan or Cost of Funds  Rate Loan
relates to any Hedging  Obligations  unless the maturity of the relevant Hedging
Obligations  has been  appropriately  adjusted in a manner  satisfactory  to the
Bank.

                                      -6-
<PAGE>

                                    The  Borrowers  shall  deliver  a notice  of
conversion/continuation to the Bank, on a Business Day, no later than 10:00 a.m.
(Boston  time)  at  least  two (2)  Business  Days in  advance  of the  proposed
conversion/continuation date for a LIBOR Rate Loan or a Cost of Funds Rate Loan.
A notice of  conversion/continuation  shall,  in the case of a conversion to, or
continuation  of, a LIBOR Rate Loan or a Cost of Funds Rate Loan, be irrevocable
and   shall  be  given  by  the   Borrowers   to   specify   (i)  the   proposed
conversion/continuation  date (which shall be a Business Day),  (ii) whether the
Loan to be  converted/continued  is a First Line of Credit Loan,  Second Line of
Credit Loan or the Term Loan or a portion thereof, (iii) the amount of the First
or Second  Line of Credit  Loan or the Term Loan,  or a portion  thereof,  to be
converted/continued, (iv) (A) whether the First or Second Line of Credit Loan or
portion of the Term Loan to be converted/continued is a Prime Rate Loan, Cost of
Funds Rate Loan,  LIBOR Rate Loan, or Fixed Rate Loan, and (B) whether the First
or Second  Line of Credit Loan or portion of the Term Loan into which such First
or Second Line of Credit Loan is converted/continued is to be a Prime Rate Loan,
Cost of Funds Rate Loan LIBOR Rate Loan, or Fixed Rate Loan, and (v) in the case
of a  conversion  to, or a  continuation  of, a LIBOR Rate Loan or Cost of Funds
Rate Loan, the requested Interest Period.

                                    In lieu of  delivering  the  above-described
notice,  the Borrowers may give the Bank telephonic  notice by the required time
of any  proposed  conversion/continuation;  PROVIDED  that such notice  shall be
immediately confirmed in writing.

                                    If the  Borrowers  fail to give such  notice
with  respect  to a LIBOR  Rate Loan or Cost of Funds Rate Loan at least two (2)
Business  Days  before the last day of the then  current  Interest  Period  with
respect  thereto,  the Borrowers shall be deemed to have delivered to the Bank a
notice to convert such Loan into a Prime Rate Loan and such loan shall,  on such
last  day,  automatically  convert  into  a  Prime  Rate  Loan.  Any  notice  of
conversion/continuation  given pursuant to this subsection  shall be irrevocable
on and after the date of delivery  thereof to the Bank, and the Borrowers  shall
be bound to convert or continue in accordance therewith.

                           (iii) DETERMINATION AND NOTICE OF LIBOR LENDING RATE,
COST OF FUNDS RATE OR FIXED  RATE.  Promptly  after  receipt of notice  from the
Borrowers that they wish to elect a LIBOR Rate Loan, Cost of Funds Rate Loan, or
Fixed Rate Loan, the Bank shall determine  (which  determination  shall,  absent
manifest  error,  be  final,  conclusive  and  binding  upon  all  parties)  the
applicable LIBOR Lending Rate, Cost of Funds Rate, or Fixed Rate, as applicable,
which rate shall  apply to the LIBOR Rate Loans,  Cost of Funds Rate  Loans,  or
Fixed  Rate  Loans,  as  applicable,  for which an  interest  rate is then being
determined for the applicable  Interest  Period,  and shall promptly give notice
thereof (in writing or by telephone and confirmed in writing) to the Borrowers.

                                      -7-
<PAGE>

                           (iv) Basis for Determining  Interest Rate Inadequate.
If the Bank shall have determined that:

                                   (A)  U.S.  Dollar  deposits  in the  relevant
amount and for the relevant Interest Period are not available to the Bank in the
London interbank market,

                                   (B) by reason of circumstances  affecting the
Bank  in  the  London  interbank  market,   adequate  means  do  not  exist  for
ascertaining the LIBOR Lending Rate applicable  hereunder to LIBOR Rate Loans of
any duration, or

                                   (C)  the   LIBOR   Lending   Rate  no  longer
adequately reflects the Bank's cost of funding LIBOR Rate Loans of any duration,
then, upon notice from the Bank to the Borrowers and until the Bank shall notify
the Borrowers that the  circumstances  causing such  suspension no longer exist,
(1) the  obligations  of the Bank under this  Agreement  to make or continue any
Loans as, or to convert any Loans into,  LIBOR Rate Loans of such duration shall
forthwith be suspended and (2) each affected  outstanding  LIBOR Rate Loan shall
be converted into a Prime Rate Loan on the last day of the then current Interest
Period applicable thereto.

                  (v) LIBOR RATE LENDING  UNLAWFUL.  If the Bank shall determine
(which determination shall, upon notice thereof to the Borrowers,  be conclusive
and binding on the Borrowers, absent manifest error) that the introduction of or
any change in or in the interpretation of any law, rule, regulation or guideline
(whether or not having the force of law) makes it unlawful,  or any central bank
or other  governmental  authority  asserts that it is unlawful,  for the Bank to
make,  continue or maintain any LIBOR Rate Loan as, or to convert any loan into,
a LIBOR Rate Loan of a certain  duration,  the  obligations of the Bank to make,
continue,  maintain or convert into any such LIBOR Rate Loans  shall,  upon such
determination,  forthwith be suspended until the Bank shall notify the Borrowers
that the  circumstances  causing such suspension no longer exist,  and all LIBOR
Rate Loans of such type shall automatically convert into Prime Rate Loans on the
last day of the then current Interest Periods  applicable  thereto or sooner, if
required by such law or assertion.

                  (vi)  VOLUNTARY  PREPAYMENT  OF LIBOR RATE  LOANS.  LIBOR Rate
Loans  in  connection  with  which  the  Borrowers  have  entered  into  Hedging
Obligations  with the Bank may not be  prepaid;  other  LIBOR  Rate Loans may be
prepaid only upon the terms and conditions set forth herein. The Borrowers shall
give the Bank,  no later  than  10:00  a.m.  (Boston  time),  at least  four (4)
Business  Days'  notice of any  proposed  prepayment  of any LIBOR  Rate  Loans,
specifying  the  proposed  date of payment of such  LIBOR  Rate  Loans,  and the
principal amount to be paid. Each partial  prepayment of the principal amount of
LIBOR Rate Loans shall be in an integral multiple of (x) $500,000 in the case of
LIBOR Rate Loans advanced under the First Line of Credit,  (y) $1,000,000 in the
case of LIBOR  Rate Loans  advanced  under the  Second  Line of Credit,  and (z)
$1,000,000 in the case of LIBOR Rate Loans of any portion of the Term Loan,  and
accompanied  by the payment of all charges  outstanding on such LIBOR Rate Loans
and of all accrued interest on the principal repaid to the date of payment.

                                      -8-
<PAGE>

         Borrowers  acknowledge  that prepayment or acceleration of a LIBOR Rate
Loan during an Interest  Period  shall result in the Bank  incurring  additional
costs,  expenses  and/or  liabilities  and that it is  extremely  difficult  and
impractical to ascertain the extent of such costs,  expenses and/or liabilities.
Therefore,  all  full or  partial  prepayments  of  LIBOR  Rate  Loans  shall be
accompanied by, and the Borrowers  hereby jointly and severally  promise to pay,
on each date a LIBOR Rate Loan is prepaid or the date all sums payable hereunder
become due and payable,  by acceleration or otherwise,  in addition to all other
sums then owing, an amount (the "LIBOR  PREPAYMENT  FEE") determined by the Bank
pursuant to the following formula:

                                    (1)     the  then   current  rate  for  U.S.
                                            Treasury   securities  (bills  on  a
                                            discounted  basis shall be converted
                                            to  a   bond   equivalent)   with  a
                                            maturity  date closest to the end of
                                            the  Interest  Period  as  to  which
                                            prepayment is made, SUBTRACTED FROM

                                    (2)     the LIBOR Lending Rate applicable to
                                            the LIBOR Rate Loan  being  prepaid,
                                            PLUS 1.5%.

                  If the  result  of this  calculation  is  zero  or a  negative
                  number,  then there shall be no LIBOR  Prepayment  Fee. If the
                  result of this  calculation  is a  positive  number,  then the
                  resulting percentage shall be multiplied by:

                                    (3)     the amount of the LIBOR Rate Loan
                                            being  prepaid.

                  The resulting amount shall be divided by:

                                    (4)     360

                   and multiplied by:

                                    (5)     the number of days  remaining in the
                                            Interest Period as to which the
                                            prepayment  is being made.

                   Said amount shall be reduced to present  value  calculated by
                   using the referenced  U.S.  Treasury  securities rate and the
                   number of days remaining on the Interest Period for the LIBOR
                   Rate Loan being prepaid.

         The  resulting  amount  of  these   calculations  shall  be  the  LIBOR
Prepayment Fee.

                                      -9-
<PAGE>

                           (vii)   INDEMNITIES.   In   addition   to  the  LIBOR
Prepayment Fee, the Borrowers agree to reimburse the Bank
(without  duplication) for any increase in the cost to the Bank, or reduction in
the amount of any sum receivable by the Bank, in respect, or as a result of:

                                   (A) any conversion or repayment or prepayment
of the  principal  amount  of any  LIBOR  Rate  Loan on a date  other  than  the
scheduled last day of the Interest Period applicable  thereto,  whether pursuant
to Section 2(e)(vi) or otherwise;

                                   (B) any Loan not being  made as a LIBOR  Rate
Loan in accordance with the borrowing request therefor;

                                   (C) any LIBOR  Rate Loan not being  continued
as,  or   converted   into,   a  LIBOR   Rate  Loan  in   accordance   with  the
continuation/conversion notice therefor; or

                                   (D) any  costs  associated  with  marking  to
market any Hedging Obligations that (in the
reasonable  determination of the Bank) are required to be terminated as a result
of any conversion,  repayment or prepayment of the principal amount of any LIBOR
Rate Loan on a date other than the  scheduled  last day of the  Interest  Period
applicable thereto, whether pursuant to Section 2(e)(vi) or otherwise.

         The  Bank  shall  promptly  notify  the  Borrowers  in  writing  of the
occurrence of any such event,  such notice to state, in reasonable  detail,  the
reasons therefor and the additional amount required fully to compensate the Bank
for such  increased cost or reduced  amount.  Such  additional  amounts shall be
payable by the Borrowers to the Bank within five (5) days of its receipt of such
notice,  and such notice shall,  in the absence of manifest error, be conclusive
and binding on the Borrowers.  The Borrowers  understand,  agree and acknowledge
the  following:  (i) the Bank does not have any  obligation  to  purchase,  sell
and/or match funds in  connection  with the use of the LIBOR Rate as a basis for
calculating  the rate of interest on a LIBOR Rate Loan;  (ii) the LIBOR Rate may
be used merely as a reference in determining  such rate; and (iii) the Borrowers
have accepted the LIBOR Rate as a reasonable and fair basis for calculating such
rate, the LIBOR  Prepayment  Fee, and other funding losses incurred by the Bank.
Borrowers  further  agree to pay the  LIBOR  Prepayment  Fee and  other  funding
losses,  if any,  whether or not the Bank elects to purchase,  sell and/or match
funds.

                           (viii)  INCREASED  COSTS.  If on or  after  the  date
hereof the  adoption of any  applicable  law,  rule or  regulation  or guideline
(whether or not having the force of law), or any change  therein,  or any change
in the interpretation or administration  thereof by any governmental  authority,
central  bank  or  comparable   agency  charged  with  the   interpretation   or
administration  thereof, or compliance by the Bank with any request or directive
(whether or not having the force of law) of any such authority,  central bank or
comparable agency:

                                      -10-
<PAGE>

                                   (A) shall  subject the Bank to any tax,  duty
or other charge with respect to its LIBOR Rate Loans or Letters of Credit issued
by it or its obligation to make LIBOR Rate Loans or issue Letters of Credit,  or
shall  change the basis of taxation of payments to the Bank of the  principal of
or  interest  on its LIBOR  Rate  Loans or any  other  amounts  due  under  this
Agreement  in respect  of its LIBOR  Rate Loans or the  Letters of Credit or its
obligation to make LIBOR Rate Loans or issue  Letters of Credit  (except for the
introduction  of, or change in the rate of, tax on the overall net income of the
Bank  or  franchise  taxes,  imposed  by  the  jurisdiction  (or  any  political
subdivision  or taxing  authority  thereof)  under the laws of which the Bank is
organized or in which the Bank's principal executive office is located); or

                                   (B) shall impose,  modify or deem  applicable
any  reserve,  special  deposit  or  similar  requirement  (including,   without
limitation,  any such  requirement  imposed  by the  Board of  Governors  of the
Federal Reserve System of the United States) against assets of, deposits with or
for the account of, or credit  extended by, the Bank or shall impose on the Bank
or on the London interbank  market any other condition  affecting its LIBOR Rate
Loans or Letters  or Credit  issued by it or its  obligation  to make LIBOR Rate
Loans or issue Letters of Credit;

and the result of any of the  foregoing  is to increase  the cost to the Bank of
making or maintaining any LIBOR Rate Loan or issuing any Letter of Credit, or to
reduce  the  amount of any sum  received  or  receivable  by the Bank under this
Agreement with respect thereto,  by an amount deemed by the Bank to be material,
then,  within 15 days after demand by the Bank,  the Borrowers  shall pay to the
Bank such  additional  amount or  amounts as will  compensate  the Bank for such
increased cost or reduction.  A statement of the Bank as to any such  additional
amount or amounts (including  calculations  thereof in reasonable detail) shall,
in the absence of manifest error, be conclusive and binding on the Borrowers. In
determining  such  amount,  the  Bank  may  use  any  method  of  averaging  and
attribution that it (in its sole and absolute discretion) shall deem applicable.

         (g) VOLUNTARY PREPAYMENT OF FIXED RATE LOANS.

         Borrowers acknowledge that prepayment of a Fixed Rate Loan prior to the
end of the  applicable  Interest  Period  shall  result  in the  Bank  incurring
additional costs, expenses and/or liabilities and that it is extremely difficult
and  impractical  to  ascertain  the  extent  of  such  costs,  expenses  and/or
liabilities.  Therefore,  all full or  partial  prepayments  of Fixed Rate Loans
shall be accompanied by, and the Borrowers hereby jointly and severally  promise
to pay, on each date a Fixed Rate Loan is prepaid, in addition to all other sums
then owing,  the Bank's (i) cost of obtaining funds for the Fixed Rate Loan that
is the  subject  of  such  prepayment  for  the  period  from  the  date of such
prepayment to the last day of the Interest  Period in effect (or that would have
been in effect) for such Fixed Rate Loan over (ii) the amount of interest likely
to be realized by the Bank in redeploying  the funds released or not utilized by
reason of such  prepayment  for such period.  A certificate  of the Bank setting
forth any amount or amounts  which the Bank is entitled  to receive  pursuant to
this Section shall be delivered to the Borrowers and shall be conclusive  absent
manifest error.

                                      -11-
<PAGE>

         (h) INCREASED  CAPITAL  COSTS.  If any change in, or the  introduction,
adoption,  effectiveness,  interpretation,  reinterpretation or phase-in of, any
law or regulation,  directive,  guideline,  decision or request  (whether or not
having  the  force  of law) of any  court,  central  bank,  regulator  or  other
governmental authority affects or would affect the amount of capital required or
expected to be maintained by the Bank, or person  controlling  the Bank, and the
Bank determines (in its sole and absolute discretion) that the rate of return on
its or such controlling  person's capital as a consequence of its commitments or
the Loans  made or  Letters  of Credit  issued by the Bank is reduced to a level
below that which the Bank or such controlling person could have achieved but for
the occurrence of any such circumstance, then, in any such case upon notice from
time to time by the Bank to the Borrowers,  the Borrowers shall  immediately pay
directly to the Bank  additional  amounts  sufficient to compensate  the Bank or
such controlling person for such reduction in rate of return. A statement of the
Bank as to any such additional amount or amounts (including calculations thereof
in reasonable detail) shall, in the absence of manifest error, be conclusive and
binding on the  Borrowers.  In  determining  such  amount,  the Bank may use any
method of averaging and attribution that it (in its reasonable discretion) shall
deem  applicable.(i)  TAXES.  All payments by the Borrowers of principal of, and
interest on, the Loans and all other  amounts  payable  hereunder  shall be made
free and clear of and  without  deduction  for any  present  or  future  income,
excise, stamp or franchise taxes and other taxes, fees, duties,  withholdings or
other  charges of any nature  whatsoever  imposed by any taxing  authority,  but
excluding  franchise  taxes and taxes  imposed on or  measured by the Bank's net
income or receipts (such non-excluded items being called "TAXES").  In the event
that any  withholding  or deduction from any payment to be made by the Borrowers
hereunder is required in respect of any Taxes  pursuant to any  applicable  law,
rule or  regulation,  then the  Borrowers  will:(i) pay directly to the relevant
authority the full amount required to be so withheld or deducted;

                  (ii) promptly forward to the Bank an official receipt or other
documentation   satisfactory  to  the  Bank  evidencing  such  payment  to  such
authority; and

                  (iii) pay to the Bank such additional amount or amounts as are
necessary to ensure that the net amount actually received by the Bank will equal
the  full  amount  the Bank  would  have  received  had no such  withholding  or
deduction been required.

         Moreover,  if any Taxes are  directly  asserted  against  the Bank with
respect to any  payment  received by the Bank  hereunder,  the Bank may pay such
Taxes and the Borrowers will promptly pay such additional  amount (including any
penalties,  interest or  expenses)  as is necessary in order that the net amount
received  by the Bank after the  payment of such Taxes  (including  any Taxes on
such additional  amount) shall equal the amount the Bank would have received had
such Taxes not been asserted.

         If the  Borrowers  fail to pay any  Taxes  when due to the  appropriate
taxing  authority  or fail to remit to the Bank the  required  receipts or other
required  documentary  evidence,  the Borrowers shall indemnify the Bank for any
incremental Taxes,  interest or penalties that may become payable by the Bank as
a result of any such failure.

                                      -12-
<PAGE>

         3. LETTERS OF CREDIT.

         (a) ISSUANCE. The Bank agrees, on the terms and conditions set forth in
this Agreement,  to issue standby letters of credit hereunder (each a "LETTER OF
CREDIT")  at the  request of the  Borrowers  from time to time prior to the date
that is 30 days  before the Lines of Credit  Termination  Date;  provided  that,
immediately  after  each such  Letter of Credit is issued,  (i) the LC  Exposure
shall  not  exceed  $1,500,000,  and (ii) the sum of the  outstanding  principal
amount of all First Line of Credit  Loans plus the LC Exposure  shall not exceed
$5,000,000. All Letters of Credit issued and outstanding under the Existing Loan
Agreement,  on and  as of the  Closing  Date  shall  become  Letters  of  Credit
hereunder.(b)  NOTICE OF  PROPOSED  ISSUANCE.  With  respect  to each  Letter of
Credit,  the Borrowers shall give the Bank at least two (2) Business Days' prior
notice (i)  specifying  the date such  Letter of Credit is to be issued and (ii)
describing  the  proposed  terms of such  Letter of Credit and the nature of the
transactions to be supported thereby.(c)  CONDITIONS TO ISSUANCE. The Bank shall
not  issue  any  Letter  of Credit  unless:(i)  such  Letter of Credit  shall be
reasonably satisfactory in form and substance to the Bank,

                  (ii) the  Borrowers  shall have  executed and  delivered  such
other  instruments and agreements  relating to such Letter of Credit as the Bank
shall have reasonably requested, and

                  (iii) the  conditions  specified  in  Sections  7 and 8 hereof
shall have been satisfied at or prior to the time such Letter of Credit is to be
issued.

         (d) EXPIRY  DATES.  No Letter of Credit shall have an expiry date later
than the fifth (5th) Business Day before the Lines of Credit  Termination  Date.
Subject to the preceding sentence,  each Letter of Credit issued hereunder shall
expire on or before the anniversary of the date of such issuance;  provided that
the expiry date of any Letter of Credit may be extended from time to time at the
Borrowers'  request and with the Bank's  consent for a period not  exceeding one
year.

         (e)  DRAWINGS.  If the Bank  receives  a demand for  payment  under any
Letter of Credit issued by it and determines that such demand should be honored,
the Bank shall (i) make such payment in accordance with the terms of such Letter
of Credit and (ii)  reasonably  promptly  notify the  Borrowers as to the amount
paid by the Bank as a result of such demand and the date of such payment (an "LC
PAYMENT DATE").

         (f)  REIMBURSEMENT  BY THE BORROWERS.  If any amount is drawn under any
Letter  of  Credit,  the  Borrowers  irrevocably  and  unconditionally  agree to
reimburse the Bank for such amount together with any and all reasonable  charges
and  expenses  which the Bank may pay or incur  relative to such  drawing.  Such
reimbursement  shall be due and payable on the  relevant LC Payment  Date or the
date on which the Bank  notifies  the  Borrowers of such  drawing,  whichever is
later;  provided that, if such notice is given after 12:00 noon (Boston time) on
the later of such dates, such reimbursement shall be due and payable on the next
following  Business  Day (the date on which it is due and  payable  being an "LC
REIMBURSEMENT DUE DATE").

                                      -13-
<PAGE>

         In  addition,  the  Borrowers  agree  to  pay,  on  the  applicable  LC
Reimbursement Due Date,  interest on each amount drawn under a Letter of Credit,
for each day from and  including  the date such amount is drawn to but excluding
such LC  Reimbursement  Due Date,  at a rate per annum  equal to the  Applicable
Margin  with  respect  to the LIBOR  Rate  Loans as in  effect on such day.  The
Borrowers  also  agree  to  pay,  on  demand,  interest  on any  overdue  amount
(including any overdue interest) payable under this subsection (f), for each day
from and  including  the date when such amount  becomes due to but excluding the
date such  amount is paid in full,  at a rate per annum  equal to the sum of the
Prime Rate for such day PLUS 2.0% (or,  if such rate is  unlawful,  the  highest
rate permitted under applicable law).

         (g) EXCULPATORY PROVISIONS. The obligations of the Borrowers under this
Section 3 shall be absolute and  unconditional  under any and all  circumstances
and  irrespective  of any setoff,  counterclaim  or defense to payment which the
Borrowers may have or have had against the Bank,  any  beneficiary of any Letter
of Credit or any other  person.  The  Borrowers  assume all risks of the acts or
omissions of any  beneficiary of any Letter of Credit with respect to the use of
such  Letter  of  Credit by such  beneficiary.  Neither  the Bank nor any of its
officers,  directors,  employees  and agents shall be  responsible  for, and the
obligations of the Borrowers to reimburse the Bank for drawings pursuant to this
Section 3 (other than obligations  resulting solely from the gross negligence or
willful misconduct of the Bank) shall not be excused or affected by, among other
things,  (i) the use  which  may be made of any  Letter of Credit or any acts or
omissions of any  beneficiary  or transferee in connection  therewith;  (ii) the
validity,  sufficiency or genuineness of documents presented under any Letter of
Credit or of any  endorsements  thereon,  even if such documents  should in fact
prove to be in any or all respects invalid, insufficient,  fraudulent or forged;
(iii) payment by the Bank against  presentation  of documents to it which do not
comply  with the terms of the  relevant  Letter of Credit;  or (iv) any  dispute
between or among the Borrowers,  any  beneficiary of any Letter of Credit or any
other person or any claims or defenses  whatsoever of the Borrowers or any other
person against any  beneficiary  of any Letter of Credit.  The Bank shall not be
liable for any error, omission, interruption or delay in transmission,  dispatch
or delivery of any message or advice,  however  transmitted,  in connection with
any Letter of Credit. Any action taken or omitted by the Bank in connection with
any  Letter of Credit and the  related  drafts and  documents,  if done  without
willful  misconduct or gross  negligence,  shall be binding on the Borrowers and
shall not place the Bank under any liability to the Borrowers.

         (h)  INDEMNIFICATION  BY  BORROWERS.  Each of the  Borrowers  agrees to
indemnify  and hold  harmless  the Bank  from and  against  any and all  claims,
damages, losses, liabilities,  costs or expenses (including, without limitation,
the reasonable fees and  disbursements of counsel) which the Bank may reasonably
incur (or which may be claimed  against  the Bank by any person  whatsoever)  by
reason of or in  connection  with any  execution and delivery or transfer of, or
payment or failure to pay under,  any Letter of Credit or any actual or proposed
use of any Letter of Credit;  provided that the Borrowers  shall not be required
to indemnify the Bank for any claims,  damages,  losses,  liabilities,  costs or
expenses  to the  extent,  but only to the  extent,  caused  by (i) the  willful
misconduct  or gross  negligence  of the Bank in  determining  whether a request
presented  under any Letter of Credit  issued by it  complied  with the terms of
such  Letter of Credit or (ii) the  Bank's  failure  to pay under any  Letter of
Credit issued by it after the presentation to it of a request strictly complying
with the  terms  and  conditions  of such  Letter  of  Credit.  Nothing  in this
subsection is intended to limit the obligations of the Borrowers under any other
provision of this Section 3.

                                      -14-
<PAGE>

         4. DEFINITIONS.  All defined terms used in this Agreement which are not
otherwise defined herein shall have the respective  meanings assigned to them in
the Loan  Documents.  For purposes of this Agreement and of the Loan  Documents,
the following additional definitions shall apply:

         (a) The term  "AFFILIATED  PERSON"  shall  mean any  person  or  entity
controlling, controlled by or under common control with any of the Borrowers.

         (b) The term  "ANTI-TERRORISM  ORDER"  shall mean  Executive  Order No.
13,224 66 Fed Reg. 49,079 (2001) issued by the President of the United States of
America  (Executive Order Blocking  Property and Prohibiting  Transactions  with
Persons Who Commit, Threaten to Commit, or Support Terrorism).

         (c) The term "APPLICABLE MARGIN" shall mean, for any Type of Loans, the
percentage determined in accordance with the following table:

<TABLE>
<CAPTION>

---------------------------- -------------------------- -------------------------- --------------------------
RATIO OF CONSOLIDATED        PRIME RATE LOANS           LIBOR RATE LOANS           COST OF FUNDS RATE LOANS
TOTAL FUNDED DEBT TO
CONSOLIDATED EBITDA
---------------------------- -------------------------- -------------------------- --------------------------
<S>                          <C>                        <C>                        <C>
Greater  than  1.5:1.0  but  0%                         2.25%                      2.25%
less   than  or   equal  to
2.0:1.0
---------------------------- -------------------------- -------------------------- --------------------------
Greater  than  1.0:1.0  but  0%                         1.75%                      1.75%
less   than  or   equal  to
1.5:1.0
---------------------------- -------------------------- -------------------------- --------------------------
Less   than  or   equal  to  0%                         1.25%                      1.25%
1.0:1.0
---------------------------- -------------------------- -------------------------- --------------------------
</TABLE>

For purposes of determining  the Applicable  Margin,  the Ratio of  Consolidated
Total Funded Debt to Consolidated  EBITDA (calculated for the period of four (4)
consecutive  fiscal quarters  ending on the date of calculation)  will be tested
quarterly,  commencing with the fiscal quarter of the Borrowers  ending June 30,
2005, based on the Compliance  Certificate  required to be delivered pursuant to
Section 6(d) hereof with  respect to such fiscal  quarter.  Notwithstanding  the
foregoing,  from the  Closing  Date  through  the date on which  the  Compliance
Certificate  for the fiscal  quarter  ending  June 30,  2005 is  required  to be
delivered  pursuant to Section 6(d), the Applicable  Margin shall be equal to 0%
for Prime Rate Loans and 2.25% for LIBOR Rate Loans and Cost of Funds Loans. For
purposes of determining the Applicable Margin, any interest rate change shall be
effective on the first (1st) Business Day of the fiscal month following delivery
of the Compliance  Certificate required to be delivered pursuant to Section 6(d)
hereof is delivered to the Bank, together with a notice to the Bank (which shall
be verified by the Bank) specifying any change in the Applicable  Margin, and if
the Borrowers have failed to deliver the Compliance  Certificate  required to be
delivered  pursuant to Section 6(d)  hereof,  the  Applicable  Margin that would
otherwise be in effect shall  automatically  be increased to the highest  margin
until such Compliance Certificate is delivered.

                                      -15-
<PAGE>

         (d) The term "BUSINESS DAY" shall mean:

                  (i) any day which is neither a Saturday  or Sunday nor a legal
holiday on which  commercial  banks are  authorized  or required to be closed in
Boston, Massachusetts;

                  (ii)  when  such  term is used to  describe  a day on  which a
borrowing, payment, prepaying, or repaying is to be made in respect of any LIBOR
Rate  Loan,  any day which is:  (i)  neither a  Saturday  or Sunday  nor a legal
holiday on which commercial banks are authorized or required to be closed in New
York City; and (ii) a London Banking Day; and

                  (iii)  when  such term is used to  describe  a day on which an
interest rate determination is to be made in respect of any LIBOR Rate Loan, any
day which is a London Banking Day.

         (e) The term  "CAPITAL  EXPENDITURE"  shall  mean any  payment  made or
required to be made,  directly or indirectly,  by any of the Borrowers or any of
their  subsidiaries  for the purpose of acquiring or constructing  fixed assets,
real property or equipment  which, in accordance with GAAP,  would be added as a
debit to the fixed asset account of the Borrowers or any of their  subsidiaries,
including,  without  limitation,  amounts paid or payable under any  conditional
sale or other title  retention  agreement  or under any lease or other  periodic
payment  agreement  which is of such a nature that  payment  obligations  of the
Borrowers  thereunder  would be required by GAAP to be capitalized  and shown as
liabilities  on the  consolidated  balance  sheet  of the  Borrowers  and  their
subsidiaries.

         (f) The  term  "CLOSING"  shall  mean a  closing  at which  the  Credit
Facility is to be entered into as reflected herein.

         (g) The term "CLOSING DATE" shall mean August 9, 2005.

         (h)  The  term  "CONSOLIDATED"  or  "CONSOLIDATED"   shall  mean,  with
reference  to any term defined  herein,  that term as applied to the accounts of
the Borrowers and their subsidiaries consolidated in accordance with GAAP.

                                      -16-
<PAGE>

         (i) The term "CONSOLIDATED ADJUSTED EBITDA" for any fiscal period shall
mean an amount equal to Consolidated EBITDA for such fiscal period MINUS the sum
of any amounts  attributable to any of the following for such fiscal period: (i)
income tax  expense,  (ii) cash  dividends  or  distributions  in respect of the
Borrowers'  capital  stock,  (iii)  payments by the  Borrowers in respect of any
repurchase,  redemption, conversion or other retirement of any of the Borrowers'
capital stock, and (iv) payments due by the Borrowers in respect of the deferred
purchase price of assets pursuant to acquisitions permitted by Sections 8(c) and
6(k)  hereunder,  all as  determined  in  accordance  with  GAAP  to the  extent
applicable.  For the  avoidance of  confusion,  whenever  Consolidated  Adjusted
EBITDA  is  calculated,  it  shall  be  calculated  for the  period  of four (4)
consecutive fiscal quarters ending on the date of such calculation.

         (j) The term "CONSOLIDATED  EBITDA" for any fiscal period shall mean an
amount equal to  Consolidated  Net Income for such fiscal  period,  PLUS, to the
extent deducted in determining  Consolidated  Net Income for such fiscal period,
interest  expense,  income tax expense,  depreciation  expense and  amortization
expense  incurred by the Borrowers  and their  subsidiaries,  on a  consolidated
basis,  for such fiscal period,  all as determined in accordance  with GAAP. For
purposes  of  determining   Consolidated  EBITDA  for  a  division  or  separate
operation,  there shall be taken into account all income and  expenses  properly
allocable  to  such  division  or  operation,   including   corporate  overhead,
administrative  costs,  taxes and  interest.  For the  avoidance  of  confusion,
whenever  Consolidated  EBITDA is  calculated,  it shall be  calculated  for the
period  of four  (4)  consecutive  fiscal  quarters  ending  on the date of such
calculation.

         (k) The term "CONSOLIDATED NET INCOME" for any fiscal period shall mean
the net income or net loss,  after deduction of or credit for applicable  income
taxes, of the Borrowers and their  subsidiaries,  as such net income or net loss
would be set forth on a  consolidated  income  statement  for such fiscal period
prepared in  accordance  with GAAP;  PROVIDED  that there shall be excluded  any
items of gain which (i) are not  ordinary by GAAP  definition  or (ii) are not a
result of ordinary operations, as determined in the Bank's sole discretion.

         (l) The term  "CONSOLIDATED  NET WORTH" on any date shall mean, for the
Borrowers and their subsidiaries on a consolidated basis,  Shareholders'  Equity
on such date.

         (m) The term  "CONSOLIDATED  TOTAL FUNDED  DEBT" shall mean,  as of any
date  of  determination,   for  the  Borrowers  and  their   subsidiaries  on  a
consolidated basis, (i) all outstanding Indebtedness, current or funded, secured
or unsecured,  incurred in connection with borrowings or the making available of
credit or funds, (ii) all Indebtedness issued, incurred or assumed in respect of
the purchase price of property,  except for trade accounts  payable  incurred in
the ordinary course of the Borrowers' or their subsidiaries' business consistent
with the policies of the Borrowers or their  subsidiaries  on which  interest is
not being accrued and which are payable  within 90 days of the statement date of
such trade accounts payable,  and which have not been outstanding longer than 90
days  from  the  statement  date of  such  trade  accounts  payable,  (iii)  all
capitalized  lease  obligations  (as  defined  by  GAAP),  and (iv)  all  direct
obligations  arising under letters of credit (including standby and commercial),
bankers' acceptances, bank guaranties, surety bonds and similar instruments.

                                      -17-
<PAGE>

         (n) The term "COST OF FUNDS  RATE" means the per annum rate of interest
which Bank is required to pay, or is offering to pay, for wholesale  liabilities
of like tenor,  adjusted for reserve requirements and such other requirements as
may be imposed by federal, state or local government and regulatory agencies, as
determined by Bank.

         (o) The term "DEFAULT" shall mean any condition or event that, with the
giving of notice  or lapse of time,  or both,  would,  unless  cured or  waived,
become an Event of Default.

         (p) The term "FIXED CHARGE  COVERAGE RATIO" shall mean as of the end of
any fiscal quarter of the Borrowers the ratio of (x) Consolidated EBITDA for the
period of four  consecutive  fiscal  quarters  ending with such fiscal  quarter,
determined in accordance  with GAAP, to (y) the sum of (A) the aggregate  amount
of  principal  payments  of  Indebtedness  of the  Borrowers  or  any  of  their
subsidiaries  scheduled  to have  been  made  during  such  period  PLUS (B) the
aggregate  amount  of  interest  expense  of  the  Borrowers  or  any  of  their
subsidiaries for such period.

         (q) The term "FIXED RATE" shall mean the rate of interest quoted by the
Bank from time to time in Boston as its "fixed rate",  which is not  necessarily
the Bank's lowest rate of interest.

         (r) The term "GAAP" shall mean generally accepted accounting principles
in the United States of America as in effect from time to time.

         (s) The term "HEDGING  OBLIGATION"  shall mean all  liabilities  of the
Borrowers  to the  Bank  under  interest  rate  swap  agreements  or  any  other
agreements  or   arrangements   designed  to  protect  the   Borrowers   against
fluctuations in interest rates or currency exchange rates.

         (t) The term "INDEBTEDNESS" shall mean, with respect to any person, (i)
all  indebtedness or other  obligations of such person for borrowed money or for
the deferred  purchase price of property or services,  (ii) all  indebtedness or
other  obligations  of any other person for  borrowed  money or for the deferred
purchase  price of  property  or  services  in respect  of which such  person is
liable,  contingently  or  otherwise,  to pay or advance  money or  property  as
guarantor,  endorser or  otherwise  (except as endorser  for  collection  in the
ordinary  course of  business),  or which such  person has agreed to purchase or
otherwise  acquire,  and (iii) all lease  obligations  of such person  which are
required, in accordance with GAAP, to be capitalized on the books of the lessee.

         (u) The term "INSOLVENT"  shall mean, with respect to any person,  when
any of the  following  events  shall have  occurred  in respect of such  person:
death,  dissolution,  termination of existence,  business  failure,  insolvency,
appointment of a receiver for any part of the property of, an assignment for the
benefit  of  creditors  by,  or a  commencement  of any  proceedings  under  any
bankruptcy  or  insolvency  law or any law  relating  to the relief of  debtors,
readjustment  of  indebtedness,  reorganization,  composition or extension by or
against, such person.

                                      -18-
<PAGE>

         (v) The term  "INTEREST  PERIOD"  shall mean,  with  respect to any (1)
LIBOR Rate Loan:

                           (i)   initially,   the  period   beginning   on  (and
including)  the date on which such LIBOR Rate Loan is made or  continued  as, or
converted  into, a LIBOR Rate Loan pursuant to Section 2(e) or Section  2(f)(ii)
and ending on (but excluding) the day which numerically corresponds to such date
30, 60, 90, or 180 days thereafter,  in each case as the Borrowers may select in
their notice pursuant to Section 2(d) or Section 2(f)(ii); and

                           (ii) thereafter,  each period  commencing on the last
day of the next preceding Interest Period applicable to such LIBOR Rate Loan and
ending 30, 60, 90, or 180 days  thereafter,  as  selected  by the  Borrowers  by
irrevocable  notice to the Bank not less than two (2) Business Days prior to the
last day of the then current Interest Period with respect thereto;

PROVIDED, HOWEVER, that:
--------  -------

                                   (A) the  Borrowers  shall not be permitted to
select  Interest  Periods to be in effect at any one time which have  expiration
dates occurring on more than five (5) different dates;

                                   (B) Interest  Periods  commencing on the same
date for  LIBOR  Rate  Loans  comprising  part of the same  advance  under  this
Agreement shall be of the same duration;

                                   (C) Interest  Periods for LIBOR Rate Loans in
connection with which the Borrowers have entered into a Hedging  Obligation with
the Bank shall be of the same  duration as the  relevant  periods set under such
Hedging Obligation;

                                   (D) if such Interest  Period would  otherwise
end on a day which is not a Business Day, such Interest  Period shall end on the
next following Business Day unless such day falls in the next calendar month, in
which case such Interest Period shall end on the first preceding Business Day;

                                   (E) no Interest Period may end later than the
Termination Date; and

                                   (F) no Interest Period may be selected when a
Default or an Event of Default has occurred and is continuing;

                                      -19-
<PAGE>

         (2) with respect to any Cost of Funds Rate Loan:

                           (i)   initially,   the  period   beginning   on  (and
including)  the date on which such Cost of Funds Rate Loan is made or  continued
as, or  converted  into,  a Cost of Funds Rate Loan  pursuant to Section 2(e) or
Section  2(f)(ii) and ending on (but excluding) the day that is seven (7), 14 or
30 days  thereafter (or, if such day is not a Business Day, such Interest Period
shall end on the next  following  Business Day unless such day falls in the next
calendar  month,  in which  case  such  Interest  Period  shall end on the first
preceding  Business  Day),  in each case as the  Borrowers  may  select in their
notice pursuant to Section 2(e) or Section 2(f)(ii); and

                           (ii) thereafter,  each period  commencing on the last
day of the next preceding  Interest Period applicable to such Cost of Funds Rate
Loan  and  ending  seven  (7),  14 or 30 days  thereafter,  as  selected  by the
Borrowers by irrevocable  notice to the Bank not less than two (2) Business Days
prior to the last day of the then current Interest Period with respect thereto.

         (3) with respect to any Fixed Rate Loan:

                           (i) the period  beginning on (and including) the date
on which  such  Fixed Rate Loan is made,  or  converted  into a Fixed Rate Loan,
pursuant  to  Section  2(e) and  ending on the date  specified  in the Notice of
Borrowing.

         (w) The term  "INTEREST  PAYMENT DATE" shall mean,  with respect to (1)
any LIBOR  Rate  Loan  having an  Interest  Period of 90 days or less,  the last
Business Day of such  Interest  Period,  and as to any LIBOR Rate Loan having an
Interest  Period  longer than 90 days,  each Business Day which is 90 days, or a
whole multiple thereof, after the first day of such Interest Period and the last
day of such Interest  Period,  and (2) any Cost of Funds Rate Loan or Fixed Rate
Loan, the last Business Day of the Interest Period applicable thereto.

         (x) The term "LC EXPOSURE"  shall mean, at any time,  the sum,  without
duplication,  of (i) the  aggregate  amount that is (or may  thereafter  become)
available for drawing under all Letters of Credit  outstanding at such time PLUS
(ii) the aggregate  unpaid amount of all LC  Reimbursement  Obligations  at such
time.

         (y) The term "LC  REIMBURSEMENT  OBLIGATIONS"  shall mean, at any time,
all  obligations  of the Borrowers to reimburse the Bank for amounts paid by the
Bank in respect of drawings under Letters of Credit.

         (z) The term  "LETTER OF CREDIT"  shall have the  meaning  set forth in
Section 3(a) hereof.

         (aa) The term "LIBOR  RATE" shall mean,  with  respect to any  Interest
Period for any LIBOR Rate Loan, the offered rate for deposits of U.S. Dollars in
an amount approximately equal to the amount of the requested LIBOR Rate Loan for
a term  coextensive  with the  designated  Interest  Period  which  the  British
Bankers'  Association  fixes as its LIBOR rate and which appears on the Telerate
Page  3750 as of 11:00  a.m.  London  time on the day  which  is two (2)  London
Banking Days prior to the beginning of such Interest Period.

                                      -20-
<PAGE>

         (bb) The term "LIBOR  LENDING  RATE"  means,  with respect to any LIBOR
Rate Loan to be made,  continued or  maintained  as, or converted  into, a LIBOR
Rate Loan for any Interest  Period,  a rate per annum for such  Interest  Period
determined  pursuant to the following  formula:

                  LIBOR Lending Rate =    LIBOR RATE
                                         ------------------------------------
                                         (1.00 - LIBOR Reserve Percentage)

         (cc) The term "LIBOR RESERVE  PERCENTAGE"  shall mean,  with respect to
any day of any  Interest  Period for LIBOR Rate  Loans,  the  maximum  aggregate
(without  duplication) of the rates (expressed as a decimal fraction) of reserve
requirements (including all basic, emergency,  supplemental,  marginal and other
reserves and taking into account any transitional adjustments or other scheduled
changes in reserve requirements) under any regulations of the Board of Governors
of the Federal  Reserve  System (the  "Board") or other  governmental  authority
having  jurisdiction  with respect  thereto as issued from time to time and then
applicable to assets or liabilities consisting of "Eurocurrency Liabilities," as
currently  defined in  Regulation  D of the Board,  having a term  approximately
equal or comparable to such Interest Period.

         (dd) The  term  "LINES  OF  CREDIT  TERMINATION  DATE"  shall  mean the
maturity date of the Lines of Credit,  June 30, 2007.

         (ee) The term "LOAN"  shall mean an  extension of credit by the Bank to
the Borrowers,  in the form of an advance under either of the Lines of Credit, a
Letter of Credit issued under the First Line of Credit, or the Term Loan.

         (ff) The term "LOAN DOCUMENTS" shall mean (i) this Agreement, including
the Exhibits and  Schedules  attached  hereto,  the Amended and Restated Line of
Credit Notes and the Term Note,  (ii) any  agreement or  agreements  between the
Borrowers and the Bank which give rise to any Hedging  Obligations and (iii) all
other agreements,  documents and instruments  relating to, arising out of, or in
any way connected with any of the foregoing  referred to in clauses (i) and (ii)
above.

         (gg) The term "LONDON  BANKING DAY" shall mean a day on which  dealings
in U.S. Dollar deposits are transacted in the London interbank market.

         (hh) The term  "NOTES"  shall  refer  to,  together,  the  Amended  and
Restated  First Line of Credit  Note,  the Amended and  Restated  Second Line of
Credit Note, and the Term Note.

         (ii) The term  "PATRIOT ACT" shall mean Public Law 107-56 of the United
States of America,  United and  Strengthening  America by Providing  Appropriate
Tools  Required to  Intercept  and Obstruct  Terrorism  (USA PATRIOT Act) Act of
2001.

         (jj) The term  "PAYMENT  DATE" shall mean the last Business Day of each
April, July, October and January from and after the Closing Date.

                                      -21-
<PAGE>

         (kk) The term "PRIME  RATE"  shall mean the rate of interest  quoted by
the  Bank  from  time  to time in  Boston  as its  "Prime  Rate,"  which  is not
necessarily the Bank's lowest rate of interest.

         (ll)  The  term   "SHAREHOLDERS'   EQUITY"   on  any  date  shall  mean
stockholders' equity determined in accordance with GAAP.

         (mm) The term "TERM LOAN TERMINATION DATE" shall mean the maturity date
of the Term Loan, August 9, 2005.

         (nn) The term "TERMINATION DATE" shall mean, as applicable, each of the
Lines of Credit Termination Date and the Term Loan Termination Date.

5. REPRESENTATIONS AND WARRANTIES. The Borrowers jointly and severally represent
and warrant as follows (with the following  representations and warranties being
deemed to apply to each subsidiary of a Borrower on the same basis as which such
representations and warranties expressly apply to such Borrower):

         (a)  ORGANIZATION.   Each  of  the  Borrowers  is  a  corporation  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of its
jurisdiction  of  organization;  is duly  qualified  to do business  and in good
standing  in each  jurisdiction  in the  United  States of  America  where  such
qualification is required,  except those  jurisdictions  where the failure to so
qualify  will not have a material  adverse  effect on the  Borrowers'  business,
prospects or financial condition,  taken as a whole (a list of the jurisdictions
where the Borrowers  are so qualified  being set forth on Schedule 5(a) hereto);
and has all requisite  corporate  power and authority to conduct its business as
presently  being conducted and as proposed to be conducted after the Closing and
to own its properties  now and after the Closing;  and each of the Borrowers has
all  requisite  corporate  power and  authority to execute and  deliver,  and to
perform  all of its  obligations  under,  this  Agreement  and  the  other  Loan
Documents.

         (b) AUTHORITY.  The execution,  delivery and performance by each of the
Borrowers of this  Agreement and the other Loan Documents to which it is a party
have  been  duly  authorized  by  all  necessary  corporate  action  and  do not
contravene  any provision of any of the  Borrower's  charter or by-laws;  do not
require any  consents or approvals  which have not been  obtained (a list of any
required  consents and approvals is set forth on Schedule  5(b) hereto);  do not
violate  any  provision  of any  law,  rule  or  regulation  (including  without
limitation  Regulations  T, U and X of the  Board of  Governors  of the  Federal
Reserve System) or any  determination  or award; do not and will not result in a
breach or constitute a default under any agreement to which any of the Borrowers
is a party or by which its properties are bound, including,  without limitation,
any indenture, loan or credit agreement,  lease, debt instrument or mortgage; or
result in or require the creation or imposition of any mortgage,  deed of trust,
pledge,  lien,  security  interest or other charge or  encumbrance of any nature
upon  or with  respect  to any of the  Borrowers'  properties;  and  none of the
Borrowers is in material default under any law, rule or regulation, order, writ,
judgment,  injunction,  decree, determination,  award, indenture, loan or credit
agreement,  lease,  debt instrument or mortgage referred to above or will not be
in any such material default by virtue of the transactions to be entered into at
the Closing.

                                      -22-
<PAGE>

         (c) APPROVALS;  COMPLIANCE  WITH STATUTES,  ETC. (i) No  authorization,
consent,  approval,  license or exemption of, or filing a registration with, any
court or  governmental  department  or  commission,  board,  bureau,  agency  or
instrumentality,  domestic or  foreign,  is or will be  necessary  for the valid
execution,  delivery or  performance  by each of the Borrowers of this Agreement
and the other Loan  Documents to which it is a party,  other than filings  which
have already been made and approvals which have already been received, a list of
which is set forth on Schedule 5(c) hereto.  Each of the Borrowers is the lawful
holder of all licenses,  permits,  certificates and governmental  authorizations
required for the conduct of its  business,  except where the failure to hold any
such licenses, permits,  certificates or authorizations,  individually or in the
aggregate, would not have a material adverse effect on the business,  prospects,
property or financial  condition of any of the Borrowers and their subsidiaries,
taken  as a  whole.  No such  material  license,  permit,  certificate  or other
governmental  authorization has been revoked,  cancelled,  rescinded,  modified,
denied or lost and not reissued or reinstated, and none of the Borrowers has any
reason to believe that any such material license,  permit,  certificate or other
governmental authorization will be revoked,  cancelled,  rescinded,  modified or
lost.

                  (ii)  Each  of  the  Borrowers  and  each  of  the  Borrowers'
subsidiaries  is in  compliance  with  all  applicable  laws,  statutes,  rules,
regulations  and orders  of, and all  applicable  restrictions  imposed  by, all
governmental  bodies,  domestic  or  foreign,  in respect of the  conduct of its
business and the ownership of its property,  except for such  non-compliances as
could not  reasonably  be  expected  to have a  material  adverse  effect on the
Borrowers  and  their  business,  taken as a whole.  Without  limitation  of the
foregoing, each of the Borrowers and each of their subsidiaries is in compliance
with,  and neither the  entering  into of the Loan  Documents  or the use of the
proceeds of the Loans will  violate:  any law,  rule or  regulation  relating to
anti-terrorism  or money  laundering,  including the  Anti-Terrorism  Order, the
Patriot Act,  the Trading with the Enemy Act, as amended,  or any of the foreign
assets  control  regulations of the United States  Treasury  Department (31 CFR,
Subtitle B,  Chapter V, as amended) or any  enabling  legislation  or  executive
order relating thereto.

         (d) VALID  OBLIGATIONS.  This Agreement and the other Loan Documents to
which each of the  Borrowers is a party have been duly executed and delivered by
each of the Borrowers and  constitute  legal,  valid and binding  obligations of
each of the Borrowers, enforceable in accordance with their respective terms.

                                      -23-
<PAGE>

         (e) ASSETS. Except as noted on Schedule 5(e), each of the Borrowers has
good and clear  marketable,  record and insurable title to all of its assets and
properties,  in  each  case  subject  to  no  mortgage,   pledge,  lien,  lease,
encumbrance, charge, easement, restriction or encroachment.

         (f)  AGREEMENTS.  None of the  Borrowers  is in  default  under or with
respect to any contractual  obligation in any respect which could  reasonably be
expected  to be  materially  adverse to the  business,  operations,  property or
financial condition of the Borrowers and their  subsidiaries,  taken as a whole,
or which could  materially  adversely affect the ability of any of the Borrowers
to  perform  its  obligations  under  this  Agreement  or any of the other  Loan
Documents.

         (g)  INSURANCE.  Attached  hereto as  Schedule  5(g) is a complete  and
accurate  list of all insurance  policies of each of the Borrowers  covering its
properties  and  assets  as of  the  date  hereof.  Each  of the  Borrowers  has
previously  delivered  or, at the  request  of the Bank,  shall  deliver  on the
Closing Date complete and accurate  copies of all insurance  policies  listed on
Schedule 5(g). Upon issuance of any insurance  policy listed on Schedule 5(g) as
applied for, each of the Borrowers shall deliver,  at the request of the Bank, a
complete and accurate copy of such policy to the Bank; provided,  however,  that
any policy so listed shall be delivered to the Bank within 60 days following the
Closing Date.  Except  policies  listed as applied for, all  insurance  policies
listed on Schedule  5(g) are in full force and  effect,  with the  premiums  due
thereon  paid,  and each of the  Borrowers is not in default with respect to any
such policy.  In addition,  all such policies satisfy the requirements set forth
in Section 6(l) hereof.

         (h) LITIGATION AND OTHER  PROCEEDINGS.  Except as set forth on Schedule
5(h) hereto,  there are no actions,  suits or proceedings  pending or threatened
against any of the Borrowers  before any court or any  governmental  department,
commission,  board, bureau, agency or instrumentality,  and none of the actions,
suits or proceedings  listed on Schedule 5(h) could reasonably be expected to be
materially adverse,  either  individually or in the aggregate,  to the business,
properties,  financial  condition or prospects of any of the Borrowers and their
subsidiaries, taken as a whole.

         (i) LABOR MATTERS. Except as set forth on Schedule 5(i) hereto, none of
the Borrowers is a party to any collective  bargaining or similar  agreement and
each of the Borrowers has complied in all material  respects with all applicable
state and federal laws respecting employment and employment practices, terms and
conditions of  employment,  wages and hours and other laws related to employment
of employees of any such Borrower or its agents, and there are no arrears in the
payment of wages,  withholding or social security taxes,  unemployment insurance
premiums or other similar  obligations of any of the Borrowers other than in the
ordinary course of business.

                                      -24-
<PAGE>

         (j)  ERISA.  No  "prohibited   transaction"  or  "accumulated   funding
deficiency"  or  "reportable  event" has  occurred  with  respect to any "single
employer  plan" of any of the Borrowers  that could subject any of the Borrowers
to a tax,  penalty  or  liability  in an amount in excess of  $500,000  per such
occurrence.  None of the Borrowers,  any  predecessor to any of the Borrowers or
any  "commonly  controlled  entity" has ever been  included in a  "multiemployer
plan" as to which any of the Borrowers or any "commonly controlled entity" would
have liability if any of the Borrowers or any "commonly  controlled entity" were
to  withdraw  therefrom  (as each of the quoted  terms is defined or used in the
Employee  Retirement Income Security Act of 1974, as amended ("ERISA"),  and the
Internal Revenue Code of 1986, as amended (the "CODE")).

         (k)  FINANCIAL  STATEMENTS.  Dentex  has  delivered  to  the  Bank  (i)
consolidated   financial  statements  of  such  Borrower  and  its  consolidated
subsidiaries,  including  consolidated balance sheets,  statements of income and
retained earnings and statements of changes in financial position (collectively,
the "2004 FINANCIAL  STATEMENTS") for and as of the end of the fiscal year ended
December 31, 2004, and (ii) unaudited consolidated balance sheets and statements
of income of Dentex and its  consolidated  subsidiaries for and as of the end of
the fiscal  quarter ended March 31, 2005  (collectively,  together with the 2004
Financial Statements, the "FINANCIAL STATEMENTS"). The 2004 Financial Statements
have been audited by  PriceWaterhouseCooper,  certified public accountants.  The
Financial  Statements  present fairly in all material  respects the consolidated
financial  condition and  performance  and results of operation of the Borrowers
and  their  consolidated  subsidiaries  for  and  as of the  end of the  periods
presented, in accordance with GAAP consistently applied (subject, in the case of
the unaudited Financial Statements, to normal year-end audit adjustments and the
omission of footnotes).  Since  December 31, 2004,  (i) the physical  assets and
properties owned or leased by the Borrowers and their  subsidiaries,  taken as a
whole,  have not suffered  any material  destruction  or damage,  regardless  of
whether or not any such loss was insured,  (ii) neither any of the Borrowers nor
any of their  subsidiaries has incurred any Indebtedness or liabilities,  fixed,
contingent  or  otherwise,  other than in the ordinary  course of business,  and
(iii) there has not been a material adverse change in the business or operations
of the Borrowers and their subsidiaries, taken as a whole.

         (l)  PROJECTIONS.  Dentex has  delivered to the Bank certain  unaudited
projections of Dentex and its  subsidiaries on a consolidated  basis,  including
projected balance sheets,  projected results of operations,  including projected
profit and loss statements,  and projected cash flow statements,  each as of the
end of each fiscal year through  December 31, 2010.  The  projections  have been
prepared in  accordance  with GAAP  consistently  applied with those used in the
preparation of the Financial  Statements  (subject to the addition of notes and,
in the case of interim  projections,  to recurring  year-end  adjustments).  The
financial projections have been prepared using assumptions which Dentex believes
in good faith to be  reasonable,  having a reasonable  factual  basis;  and such
financial  projections  represent the good faith  judgment of the  management of
Dentex as to the  future  financial  results  and  condition  of Dentex  and its
subsidiaries.

                                      -25-
<PAGE>

         (m) TAXES.  Except as set forth on Schedule 5(m), each of the Borrowers
has filed all federal and state tax returns  which are  required to be filed and
has paid all taxes shown on such returns and on all assessments  received by it,
to the extent  that such taxes have  become  due.  All of such tax  returns  are
accurate  and  complete.  All other  taxes and  assessments  of any nature  with
respect to which any of the Borrowers is obligated and which have become due are
being paid or adequate accruals have been set up therefor.

         (n)  INVESTMENTS.  Except as set forth on Schedule 5(n), and except for
subsidiaries  of any of the  Borrowers  acquired  by such  Borrower  pursuant to
acquisitions that either (i) are funded by one or more advances under the Second
Line of Credit  pursuant to Section 8 hereof or (ii) are permitted under Section
6(k) hereof,  none of the Borrowers  own any  securities or other equity or debt
interests in any corporation,  partnership or other business entity.  All of the
Affiliated Persons of each of the Borrowers are set forth on Schedule 5(n).

         (o)  INVESTMENT  COMPANY.  None  of  the  Borrowers  is an  "investment
company" or a company  "controlled"  by an "investment  company" (as each of the
quoted  terms is  defined  or used in the  Investment  Company  Act of 1940,  as
amended).

         (p)  EQUITY   STRUCTURE.   The  equity  structure  of  Dentex  and  its
subsidiaries,  including each class of their capital stock and other securities,
is set forth on Schedule 5(p). Each of Dentex's  subsidiaries  is  wholly-owned,
directly or indirectly through one or more subsidiaries, by Dentex.

         (q) CONSOLIDATED TOTAL FUNDED DEBT. Attached as Schedule 5(q) hereto is
a list of the Consolidated  Total Funded Debt,  indicating,  as applicable,  the
original  principal  amount of each  borrowing or debt,  the current  amount due
thereon,  the terms and  schedule  for  payments  in  respect  thereof,  and the
security, if any, given therefor or in connection  therewith.  Other than as set
forth on Schedule 5(q) hereto,  none of such  Consolidated  Total Funded Debt is
secured by any lien, encumbrance,  mortgage,  pledge, or security interest given
by any of the Borrowers or any of their subsidiaries.

         (r) PATENTS, COPYRIGHTS AND TRADEMARKS. Except as set forth on Schedule
5(r), none of the Borrowers own any trademarks,  copyrights or patents which are
material in the ordinary  course of business as each of the Borrowers'  business
is currently  conducted or as such business is  contemplated  to be conducted in
the future.

                                      -26-
<PAGE>

         (s) REPRESENTATIONS ACCURATE. No representation or warranty made by any
of the Borrowers  herein, in any other Loan Document or in any other certificate
furnished from time to time in connection herewith or therewith contains or will
contain any  misrepresentation of a material fact or omits or will omit to state
any material fact necessary to make the statements herein or therein (taken as a
whole in conjunction with all such documents) not misleading when made. There is
no condition  specific to the business of any of the Borrowers which  materially
adversely affects, or which would in the future materially adversely affect, the
business,  operations,  property or financial  condition of any of the Borrowers
and their subsidiaries, taken as a whole.

         6.  COVENANTS.  Each of the  Borrowers  incorporates  herein all of the
affirmative and negative  covenants  contained in the other Loan  Documents.  In
addition,  each of the Borrowers represents,  warrants,  covenants and agrees as
follows (and shall cause each of its  subsidiaries  to comply with the following
representations, warranties, covenants and agreements on the same basis as which
such  representations,  warranties,  covenants and agreements expressly apply to
each of the Borrowers):

         (a) PAYMENTS Each Borrower shall duly and punctually  make, or cause to
be made, the payments  required under this  Agreement,  the Amended and Restated
Line of Credit Notes and the Term Note and shall  perform and observe all of its
other obligations under the Loan Documents.

         (b) INTENTIONALLY OMITTED.

         (c) FINANCIAL REPORT.  Dentex shall furnish,  or cause to be furnished,
to the Bank:

                  (i) as soon as  available,  but in any event  within  120 days
after the end of each fiscal year of Dentex, a copy of the audited  consolidated
balance sheet of Dentex and its consolidated  subsidiaries as at the end of such
fiscal  year  and  the  related  audited  consolidated   statements  of  income,
stockholders'  equity and changes in financial position for such fiscal year, in
each case setting forth in  comparative  form the figures for the previous year,
reported on without a "going  concern" or like  qualification  or  exception  or
qualification  as to the scope of the audit,  by  independent  certified  public
accountants  of nationally  recognized  standing,  together with any letter from
Dentex's management prepared in connection with Dentex's annual audit report;

                  (ii) as soon as  available,  but in any  event  within 60 days
after the end of each fiscal  quarter end in each fiscal year of Dentex,  copies
of the  unaudited  consolidated  balance  sheets of Dentex and its  consolidated
subsidiaries as at the end of such quarterly  period,  together with the related
unaudited  consolidated  statements of income for such quarterly  period and for
the portion of the fiscal year of Dentex through such quarterly  period, in each
case certified by the Chief Financial  Officer of Dentex as presenting fairly in
all material  respects the  financial  condition  and results of  operations  of
Dentex and its  consolidated  subsidiaries,  in conformity with GAAP (subject to
normal year-end audit adjustments and to the fact that such financial statements
may be condensed and may not include footnotes);  all such financial  statements
to be complete and correct in all material  respects and prepared in  reasonable
detail and in conformity with GAAP applied  consistently  throughout the periods
reflected therein; and

                                      -27-
<PAGE>

                  (iii) as soon as available,  but in any event not less than 14
days prior to the end of each fiscal year of Dentex, a projected  balance sheet,
projected cash flow statement  (including  proposed  Capital  Expenditures)  and
projected profit and loss statement of Dentex and its consolidated  subsidiaries
for the  forthcoming  fiscal year,  in all cases  setting  forth such  financial
information  on a fiscal  quarter by fiscal  quarter basis for such  forthcoming
fiscal year;  PROVIDED THAT, in the event Dentex shall begin,  after the Closing
Date,  to prepare such  projections  for a period  greater than the  forthcoming
fiscal year, Dentex shall furnish the same to Bank pursuant to the terms of this
Section 6(c)(iii).

         (d) OTHER  FINANCIAL  REPORTS Dentex will also furnish,  or cause to be
furnished, to the Bank:

                  (i)  concurrently  with  the  delivery  of  each  set  of  the
financial  statements  referred to in paragraphs (i) and (ii) of Section 6(c), a
certificate of the President and Chief  Financial  Officer of Dentex in the form
of EXHIBIT D attached hereto (a "COMPLIANCE  CERTIFICATE")  (i) stating that, to
the best of such person's  knowledge,  during the period  covered by such set of
financial  statements,  the Borrowers have observed or performed in all respects
all of its covenants and other agreements and satisfied in all material respects
every  condition  contained in this Agreement and the other Loan Documents to be
observed,  performed or satisfied by it, and that,  to the best of such person's
knowledge,  no Default or Event of Default  exists  (except as specified in such
certificate),  (ii) showing in detail the calculations supporting such statement
in respect of the  covenants  set forth in Sections  6(s) through 6(u) and (iii)
stating that such financial  statements  present fairly in all material respects
the financial condition and results of operations of Dentex and its consolidated
subsidiaries,  in  conformity  with GAAP  (subject,  with  respect to  quarterly
financial statements,  to normal year-end audit adjustments and to the fact that
such financial statements may be condensed and may not include footnotes);

                  (ii) promptly after the same are sent and received,  copies of
all financial  statements,  reports and notices which Dentex sends to holders of
all  classes  of  capital  stock of Dentex or which  Dentex  receives  from such
holders;

                  (iii)   promptly,   such   additional   financial   and  other
information as the Bank may from time to time reasonably request; and

                                      -28-
<PAGE>

                  (iv) as  soon  as  available,  a copy  of  each  other  report
submitted to such Borrower by its  certified  public  accountants  in connection
with any  annual,  interim  or  special  audit made by them of the books of such
Borrower.

         (e) MAINTAIN RIGHTS Each Borrower shall:

                  (i) keep in full force and effect its corporate  existence and
all material rights, licenses, leases and franchises reasonably necessary to the
conduct of its business;

                  (ii) duly  observe  and  conform  to all  applicable  material
requirements  of all  governmental  authorities in any way relating to it or the
conduct of its business,  all applicable material laws and regulations  wherever
its business is conducted, and all applicable decrees, orders and judgments;

                  (iii) perform or comply with the terms and  conditions of each
material  contract,  agreement  or  obligation  to which it is a party,  and the
provisions of its charter documents;

                  (iv) keep true records and books of account;

                  (v)  not  engage  in  any  business   other  than  the  dental
laboratory business in which it is now engaged and businesses reasonably related
thereto;

                  (vi) not  establish any  subsidiaries,  other than pursuant to
acquisitions that either (A) are funded by one or more advances under the Second
Line of Credit pursuant to Section 8 hereof,  or (B) are permitted under Section
6(k) hereunder. All subsidiaries established or acquired by such Borrower or any
of its subsidiaries shall be wholly-owned, either directly or indirectly through
one or more other subsidiaries,  by such Borrower.  If such subsidiaries are not
consolidated or merged with such Borrower within 45 days of their acquisition or
establishment,  then any such subsidiaries  shall become a borrower or guarantor
hereunder,  at the  Bank's  sole  discretion.  Upon  forming  or  acquiring  any
subsidiary,  at the Bank's  discretion  such  subsidiary and such Borrower shall
execute and  deliver to the Bank (a) a joinder  agreement  substantially  in the
form of EXHIBIT E attached hereto and the documents  referred to therein and (b)
such other documents  reasonably requested by the Bank consistent with the terms
of this Agreement which provide that such  subsidiary  shall become bound by all
of the terms,  covenants and agreements  contained in the Loan  Documents.  Upon
satisfaction of the conditions set forth in this Section 6(e), each newly-formed
or acquired  subsidiary shall become a Borrower or guarantor hereunder and under
the other Loan  Documents  to the same extent as if such  subsidiary  had been a
party hereto and thereto on the Closing Date; and

                                      -29-
<PAGE>

                  (vii) (A) with respect to Dentex, maintain its chief executive
office at 526 Boston Post Road,  Wayland,  MA 01778,  (B) with respect to Green,
maintain  its  chief  executive  office at 1099  Wilburn  Road,  Heber  Springs,
Arkansas  72543 or at such other  place in the United  States of America as such
Borrower  shall  designate  upon  written  notice  to the Bank,  where  notices,
presentations  and  demands  to or upon such  Borrower  in  respect  of the Loan
Documents may be given or made.

         (f) NO  TRANSFERS.  otherwise  dispose of any assets  necessary for the
effective or efficient  operation or proper maintenance of its business,  except
for (i) sales of obsolete equipment in the ordinary course of business, and (ii)
sales of equipment in the ordinary  course of business not to exceed  $50,000 in
any fiscal year.

         (g) NO MERGERS.  of merger or consolidation,  or liquidate,  wind up or
dissolve itself (or suffer any  liquidation or  dissolution),  or convey,  sell,
lease,  transfer  or  otherwise  dispose of, in one  transaction  or a series of
transactions,  all or any material part of its business, property or tangible or
intangible  assets,  whether now owned or  hereafter  acquired,  or acquire,  by
purchase or otherwise,  all or  substantially  all of the business,  property or
fixed  assets of, or stock or other  evidence of  beneficial  ownership  of, any
person or entity  other than  pursuant to (i)  acquisitions  that either (A) are
funded by one or more advances under a Second Line of Credit pursuant to Section
8 hereof,  or (B) are permitted  under Section 6(k) hereunder or (ii) so long as
no Default has occurred and is  continuing  both before and after giving  effect
thereto,  mergers  between any  subsidiary of any of the Borrowers with and into
any of the Borrowers or any other  subsidiary of any of the Borrowers,  provided
that if any Borrower is a  constituent  party to any such merger it shall be the
surviving corporation of such merger.

         (h) PAYMENT OF TAXES. discharge all taxes, assessments and governmental
charges  or  levies  imposed  upon it or upon its  income  or profit or upon any
property, real, personal or mixed, belonging to it; provided, however, that such
Borrower shall not be required to pay any such tax,  assessment,  charge or levy
if the same shall not at the time be due and  payable or can be paid  thereafter
without penalty or if the validity  thereof shall currently be contested in good
faith by appropriate  proceedings  and if such Borrower shall have made adequate
provision on its books for the payment of such tax, assessment,  charge or levy;
and provided  further,  that such tax or other sum shall be paid before it gives
rise to a lien against the property of such Borrower.

         (i)  GUARANTIES.  None of the  Borrowers  shall  become or be liable in
respect  of  any  guaranty,   except  for  guaranties  in  conjunction  with  an
acquisition  that  either (i) is funded by an advance  under the Second  Line of
Credit  pursuant to Section 8 hereof or (ii) is  permitted  under  Section  6(k)
hereunder,  and endorsements by such Borrower in the ordinary course of business
of negotiable instruments for deposit or collection.

         (j) AGREEMENTS. None of the Borrowers shall enter into any agreement of
any  nature  whatsoever,   including  without  limitation  any  agreement  which
constitutes  or effects a material  modification  of any agreement to which such
Borrower is a party as of the date hereof,  other than in the ordinary course of
its business;  provided,  that, any such agreement which is entered into with an
Affiliated  Person (i) shall be subject to the restriction on  compensation  set
forth in Section 6(r) hereof,  (ii) shall be on an arms-length  basis, and (iii)
shall be on terms and  conditions no more  favorable  than such  Borrower  could
obtain from an unrelated third party.

                                      -30-
<PAGE>

         (k)  INVESTMENTS.  None of the Borrowers  shall make or permit to exist
any  investments,  directly or  indirectly  (in the form of any  acquisition  of
assets  other  than  in the  ordinary  course  of  business  or  other  than  an
acquisition of the assets of an entity engaged in a dental laboratory  business;
or in  the  form  of any  acquisition  of  stock,  securities,  indebtedness  or
obligation  of,  or any loan,  advance,  capital  contribution  or  transfer  of
property  to, or any  guarantee  or other  commitment  on behalf of, any person,
other than  pursuant  to an  acquisition  of the stock or  business of an entity
engaged in a dental laboratory business; or otherwise), other than in (i) United
States Treasury  securities,  (ii) readily  marketable direct obligations of the
United  States of America or any  agency  thereof,  backed by the full faith and
credit of the United States,  (iii)  certificates  of deposit,  time deposits or
banker's acceptances with a limit of $5,000,000 per institution issued by any of
the top 50  financial  institutions  in the  United  States  of  America  or its
territories,  each having total  assets and surplus of at least  $4,000,000,000,
(iv)   commercial   paper   rated   A1/P1  or  better  by   Standard   &  Poor's
Corporation/Moody's  Investors  Service,  Inc., (v) repurchase  agreements  made
against securities which meet the qualifications  stated herein, (vi) tax-exempt
securities,  including without limitation,  municipal bonds or notes, rated A or
better by Moody's Investors  Service,  Inc, or (vii)  acquisitions in accordance
with the requirements of Section 8(c) hereof.

         (l)  PROPERTY.  Each of the  Borrowers  will  keep all of its  property
reasonably necessary for the continued operation of its business in good working
order and condition,  reasonable wear and tear and, subject to Section 9 hereof,
damage by fire and other casualty excepted,  and maintain with financially sound
and reputable insurance companies insurance thereon in at least such amounts and
with such deductibles and against at least such risks (including  hazard) as are
usually  insured  against in the same general  area by companies  engaged in the
same or similar businesses;  and each of the Borrowers will furnish to the Bank,
upon its  written  request,  full  information  with  respect  to any  insurance
carried.

         (m) BOOKS AND RECORDS. Each of the Borrowers will (i) keep proper books
of record and account in which full, true and correct entries in conformity with
GAAP and all  requirements of law shall be made of all dealings and transactions
in relation to its business and activities,  and (ii) permit  representatives of
the Bank to visit and  inspect  any of its  properties  and to examine  and make
abstracts from any of its books and records at any reasonable  time and as often
as  may  reasonably  be  desired,  and  to  discuss  the  business,  operations,
properties  and  financial  condition  of such  Borrower  with its  officers and
employees and with its independent certified public accountants.

                                      -31-
<PAGE>

         (n) NOTICES.  Each of the  Borrowers  will give,  or cause to be given,
notice to the Bank, within five (5) days of knowledge thereof, of:

                  (i) the  occurrence  of any Default or Event of Default  under
this Agreement;

                  (ii)  any  default  or  event  of  default   under  any  other
contractual  obligation of such Borrower  which, if not paid or remedied by such
Borrower or waived by the obligee  thereon,  could  result in  liability to such
Borrower  in excess of  $500,000 in any single  instance  or  $1,000,000  in the
aggregate;

                  (iii) any  litigation,  investigation  or  proceeding of which
such  Borrower has  knowledge  which may exist at any time between such Borrower
and any  governmental  authority which may have a material adverse effect on the
business,  operations,  property or financial  condition of such  Borrower,  any
litigation  or  proceeding  affecting  such  Borrower  which may have a material
adverse  effect upon such  Borrower,  or any  material  adverse  development  in
previously disclosed litigation;

                  (iv) the  following  events,  as soon as  possible  and in any
event within 15 days after such Borrower  knows  thereof:  (x) the occurrence of
any "reportable  event" with respect to any "single  employer plan" which in the
reasonable  judgment  of such  Borrower  could be  expected  to have a  material
adverse  affect  on  such  Borrower  or its  business,  (y) the  institution  of
proceedings  or the  taking  or  expected  taking  of any  other  action by such
Borrower or any "commonly  controlled  entity" to terminate any "single employer
plan" with respect to which there exists any vested unfunded pension liabilities
at the time of such termination,  or (z) the "reorganization" or "insolvency" of
any  "multiemployer  plan" which may  reasonably  be expected to have a material
adverse affect on the business,  operations,  property or financial condition of
such  Borrower  (as each of the quoted  terms is defined or used in ERISA or the
Code);

                  (v) a material  adverse  change in the  business,  operations,
property or financial condition of such Borrower and its subsidiaries,  taken as
a whole; and

                  (vi) the revocation, expiration or loss of any license, permit
or other governmental  authorization of such Borrower material to the conduct of
the business of such Borrower and its subsidiaries, taken as a whole;

each notice  pursuant to paragraphs  (i) through (vi) of this Section 6(n) to be
accompanied by a statement of the President or Chief Financial Officer of Dentex
setting  forth  details of the  occurrence  referred to therein and stating what
action, if any, such Borrower proposes to take with respect thereto.

         (o) LIENS. None of the Borrowers will create,  incur,  assume or suffer
to exist any  lien,  mortgage  or other  encumbrance  upon any of its  property,
assets or revenues, whether now owned or hereafter acquired, except for:

                                      -32-
<PAGE>

                  (i)  carriers',  warehousemen's,   mechanics',  materialmen's,
repairmen's,  or other like liens arising in the ordinary  course of business in
respect of  obligations  not  overdue for a period of more than 60 days or which
are being contested in good faith by appropriate proceedings;

                  (ii) easements,  rights-of-way,  restrictions, license rights,
leases  and  other  similar  encumbrances  incurred  in the  ordinary  course of
business  which  do not in any case  materially  detract  from the  value of the
property  subject thereto or interfere with the ordinary conduct of the business
of such Borrower;

                  (iii)  pledges  or  deposits  in   connection   with  workers'
compensation,  unemployment  insurance and other social security legislation and
deposits  securing   liability  to  insurance   carriers  under   self-insurance
arrangements;

                  (iv)  deposits  to  secure  the  performance  of  bids,  trade
contracts (other than for borrowed money), leases, statutory obligations, surety
and appeal  bonds,  performance  bonds and other  obligations  of a like  nature
incurred in the ordinary course of business;

                  (v)  liens  existing  on the  assets  or  properties  of  such
Borrower and identified on SCHEDULE 5(E) attached hereto;

                  (vi) purchase  money liens  securing  additional  Indebtedness
permitted under Section 6(q) hereof;

                  (vii)  liens  securing  such  Borrower's   obligations   under
operating leases; and

                  (viii)  liens upon assets  acquired  after the Closing Date in
connection with any  acquisition  permitted under the terms of Sections 6(k) and
8(c)  hereof  PROVIDED  that such  liens  shall not  secure  Indebtedness  in an
aggregate amount in excess of $500,000.

         In  addition,  none  of  the  Borrowers  shall,  nor  shall  any of the
Borrowers  permit  any  subsidiary  to,  enter  into  or  permit  to  exist  any
arrangement or agreement which directly or indirectly prohibits such Borrower or
any such  subsidiary from creating or incurring any lien or encumbrance in favor
of the Bank under the Loan Documents.

         (p)   MODIFICATIONS.   None  of  the  Borrowers  will  not  permit  the
modification  or waiver  of or any  change in any  provisions  of any  agreement
relating to Indebtedness of such Borrower if such modification, waiver or change
could have a material  adverse effect on the ability of such Borrower to perform
its obligations under this Agreement or the other Loan Documents (such effect to
be determined by the Bank in its sole discretion).

                                      -33-
<PAGE>

         (q) ADDITIONAL INDEBTEDNESS. None of the Borrowers shall create, incur,
assume,  agree to  purchase  or  repurchase  or  provide  funds in respect of or
otherwise  become or be or remain liable with respect to any Indebtedness of any
type whatsoever owed to any person,  except (i) with respect to any Indebtedness
incurred pursuant to the terms of this Agreement  (including in conjunction with
an  acquisition  that is either  funded by an advance  under the Second  Line of
Credit  pursuant to Section 8 hereof or permitted  under Section 6(k) hereof) or
outstanding  on the date  hereof  and  listed  on  Schedule  5(q)  hereto;  (ii)
obligations  to  make  payments  of  money  pursuant  to  so-called   "earn-out"
agreements  or other  similar  arrangements  providing  for the  payment by such
Borrower of contingent  consideration  in connection with the acquisition of one
or more businesses;  (iii) trade indebtedness incurred in the ordinary course of
such  Borrower's   business;   and  (iv)  Indebtedness  in  respect  of  Capital
Expenditures  not  exceeding  $1,000,000  in the  aggregate  during any 12-month
period.

         (r) PAYMENTS TO AFFILIATED  PERSONS.  None of the Borrowers  shall make
any payment,  compensation or distribution,  directly or indirectly,  whether in
cash or in property  and whether in respect of stock  ownership  or  employment,
management,  consulting or other services or for any other reason whatsoever, to
any  Affiliated  Person,  except  that  (i)  each of the  Borrowers  may (A) pay
compensation  in the form of  salary,  fringe  benefits  and  reimbursement  for
reasonable business expenses to Affiliated Persons who are directors or officers
of such Borrower in the ordinary  course of business and in a manner  consistent
with  past  practice,  (B)  pay  bonuses  to  such  Affiliated  Persons  and (C)
repurchase shares of such Borrower's  capital stock from such Affiliated Persons
and  (ii)  any   subsidiary   of  such  Borrower  may  pay  dividends  and  make
distributions  to such Borrower;  provided that  immediately  prior to and after
giving  effect to any such bonus  payment or stock  repurchase  there  exists no
Default or Event of Default  hereunder,  and the Bank receives a certificate  to
such effect signed by the President or Chief Financial Officer of such Borrower.

         (s) MINIMUM  CONSOLIDATED  NET WORTH.  The  Borrowers  shall not permit
Consolidated Net Worth at any time to be less than $68,000,000.

         (t) FIXED CHARGE  COVERAGE  RATIO.  The Borrowers  shall not permit the
Fixed Charge  Coverage Ratio as of the end of any fiscal quarter to be less than
1.5:1.0.

         (u) MAXIMUM  CONSOLIDATED TOTAL FUNDED DEBT TO CONSOLIDATED  EBITDA. As
at the end of any fiscal  quarter,  the ratio of (a)  Consolidated  Total Funded
Debt as of such  date to (b)  Consolidated  EBITDA  for the  period  of four (4)
consecutive  fiscal  quarters ending on the date of calculation (i) prior to and
including  December 31, 2005,  shall not exceed  2.20:  1.0 and (ii)  thereafter
shall not exceed 2.00:1.0.

                                      -34-
<PAGE>

         (v) MINIMUM CONSOLIDATED EBITDA. For the period of four (4) consecutive
fiscal quarters then ended, the Borrowers shall not permit  Consolidated  EBITDA
to be less than (i) $11,500,000 on June 30, 2005, (ii)  $13,000,000 on September
30, 2005, (iii)  $14,800,000 on December 31, 2005, (iv) $15,500,000 on March 31,
2006, (v) $15,900,000 on June 30, 2006, (vi)  $16,400,000 on September 30, 2006,
(vii)  $16,900,000 on December 31, 2006,  (viii)  $17,200,000 on March 31, 2007,
(ix)  $17,500,000 on June 30, 2007, and (x)  $17,800,000 on the last day of each
fiscal quarter thereafter.

         (w) BANK ACCOUNTS.  Dentex shall maintain its primary operating account
with  the  Bank.  As of the  Closing  Date,  none  of the  Borrowers  and  their
subsidiaries  maintain  any bank  accounts  other than as set forth on  Schedule
6(v).  For the avoidance of any doubt,  it is hereby  acknowledged  that for the
purposes of this Section 6(v),  "maintain its primary  operating  account" means
that Dentex shall maintain all of its cash  management  activities with the Bank
and, with respect to bank accounts  established  after the Closing Date,  Dentex
shall use best efforts to establish such bank accounts with the Bank.

         (x)  FURTHER  ASSURANCES  At any time and from time to time each of the
Borrowers  shall,  and shall  cause each of its  subsidiaries  to,  execute  and
deliver such further  instruments and take such further action as may reasonably
be requested by the Bank to effect the purposes of this  Agreement and the other
Loan  Documents.  Without  limitation  of  the  foregoing,  upon  receipt  of an
affidavit  of an  officer  of the Bank as to the  loss,  theft,  destruction  or
mutilation  of any of the  Notes,  and,  in the  case of any such  loss,  theft,
destruction or mutilation, upon cancellation of such Note, each of the Borrowers
will issue,  in lieu thereof,  a replacement  Note in the same principal  amount
thereof and otherwise of like tenor.

         7.  CONDITIONS  OF  CLOSING  The  obligation  of the  Bank to make  any
advances  under a Line of Credit,  to issue any new Letter of Credit and to fund
the Term Loan is subject to the satisfaction of all of the following  conditions
on or prior to the Closing:

         (a) AMENDED AND RESTATED LINE OF CREDIT NOTES; TERM NOTE The Bank shall
have received each of the Amended and Restated Line of Credit Notes and the Term
Note, duly executed and delivered by the Borrowers, each in form satisfactory to
the Bank and its  special  counsel.  Upon  receipt of the  Notes,  the Bank will
cancel the notes executed in connection with the Existing Loan Agreement,  stamp
such notes as  "cancelled",  and return such cancelled  notes to Dentex,  at the
address on the first page of this Agreement.

                                      -35-
<PAGE>

         (b) WARRANTIES AND COVENANTS All warranties and representations of each
of the Borrowers  and their  subsidiaries  in this  Agreement and the other Loan
Documents shall be true on the date of the Closing as if then given, each of the
Borrowers  and their  subsidiaries  shall have  performed or observed all of the
terms, covenants,  conditions and obligations under this Agreement and the other
Loan Documents  which are required to be performed or observed by it on or prior
to such date,  and on such date there shall exist no Default or Event of Default
hereunder.

         (c) CLOSING  CERTIFICATE  The Bank shall have  received a  certificate,
dated as of the Closing and executed by the  President  and the Chief  Financial
Officer of Dentex,  in form and content  satisfactory  to the Bank,  stating the
substance of the foregoing clause (b).

         (d) FINANCIAL STATEMENTS The Bank shall have received copies of (i) the
2004 Financial  Statements,  together with the management  letter for the fiscal
year ending  December  31, 2004 for each of the  Borrowers,  (ii) the  unaudited
consolidated  balance sheets of Dentex and its  consolidated  subsidiaries as of
March 31, 2005, together with the related unaudited  consolidated  statements of
income for such period and for the  portion of the fiscal year of the  Borrowers
through such period,  (iii) the opening pro forma balance sheet of the Borrowers
as of the date of Dentex's  acquisition of Green (after giving effect  thereto),
(iv) the pro forma income  statement of the  Borrowers as of December,  31 2004,
(v) five year projections for Dentex and its consolidated subsidiaries, and (vi)
audited  financial  statements of Green for the three fiscal years preceding the
Closing Date, in the case of (ii), (iii) and (iv) above,  certified by the Chief
Financial  Officer of Dentex as presenting  fairly in all material  respects the
financial  condition and results of operations as of such date of Dentex and its
consolidated subsidiaries or each Borrower and its consolidated subsidiaries, as
applicable,   in  conformity   with  GAAP  (subject  to  normal  year-end  audit
adjustments and to the fact that such financial  statements may be condensed and
may not include  footnotes),  and Bank shall be  satisfied  with the  foregoing.
There shall have been no material  misstatements  in, or  omissions  from,  such
financial statements and any other documentation furnished to the Bank.

         (e) ANNUAL REPORT The Bank shall have  received  copies of (i) Dentex's
Annual Report on Form 10-K for the fiscal year ended  December 31, 2004 and (ii)
Dentex's  Quarterly  Report on Form 10-Q for the fiscal  quarter ended March 31,
2005.

         (f)  VALUATION  REPORT  The  Bank  shall  have  received  a copy of the
valuation  report  prepared  by  Deloitte & Touche  LLP,  in form and  substance
satisfactory to the Bank.

         (g) NO ADVERSE  CHANGE  There shall have  occurred no material  adverse
change in (i) the  business,  prospects,  operations,  properties  or  condition
(financial or otherwise) of the Borrowers and any of their  subsidiaries,  taken
as a whole, since the date of the March 31, 2005 financial  statements,  or (ii)
the  ability of any of the  Borrowers  or any of their  subsidiaries  to perform
their obligations under the Loan Documents.

                                      -36-
<PAGE>

         (h) CLOSING  FEES AND LEGAL  EXPENSES At or prior to the  Closing,  the
Borrowers  shall  have  paid to the Bank (i) the  annual  $10,000  facility  fee
referenced  in  Section  2(c)(ii)  hereof,  and  (ii)  all  costs  and  expenses
(including legal fees) referred to in Section 12(h).

         (i) LEGAL OPINIONS.  All legal matters incident to this Agreement shall
be satisfactory to Goulston & Storrs,  special counsel to the Bank, and the Bank
shall have received at the Closing the legal  opinion of Posternak  Blankstein &
Lund LLP,  counsel to the Borrowers,  and Gill Elrod Ragon Owen & Sherman,  P.A,
special  counsel to Green,  such opinions in form and substance  satisfactory to
the Bank and its special counsel.

         (j)  PROJECTIONS  The Bank shall have received copies of Dentex and its
consolidated   subsidiaries'   base  line  fiscal   quarter  by  fiscal  quarter
projections for fiscal year 2005, including profit and loss, balance sheet, cash
flow and schedules reflecting branch profit and losses.

         (k) APPROVALS  All  necessary  consents,  approvals  and/or  waivers in
connection with the  consummation of the  transactions  contemplated by the Loan
Documents  shall have been obtained by each of the Borrowers and copies  thereof
shall have been delivered to the Bank.

         (l) LEGALITY OF  TRANSACTIONS No change in applicable law or regulation
shall have occurred as a consequence  of which it shall have become and continue
to be unlawful (i) for the Bank to perform any of its  respective  agreements or
obligations under any of the Loan Documents, or (ii) for any of the Borrowers or
any of their  subsidiaries  to perform any of their  agreements  or  obligations
under any of the Loan Documents.

         (m) PROOF OF  CORPORATE  ACTION;  GOOD  STANDING  The Bank  shall  have
received  from each of the  Borrowers  and  their  subsidiaries  a  certificate,
certified by a duly authorized officer of each Borrower or subsidiary to be true
and  complete  on the  Closing  Date,  (i)  attaching  a copy of  records of all
corporate  action taken by such Borrower or such subsidiary to authorize (a) its
execution  and  delivery of each of the Loan  Documents  to which it is or is to
become a party,  (b) its  performance of all of its  agreements and  obligations
under each of such  documents,  and (c) any  borrowings  and other  transactions
contemplated  by this  Agreement,  (ii)  certifying  as to its  charter or other
organizational  documents and its by-laws, and (iii) giving the name and bearing
a specimen  signature of each individual who shall be authorized to sign, in the
name and on behalf of such  Borrower,  each of the Loan Documents to which it is
or is to  become a party,  to make  application  for the Loans  and  Letters  of
Credit,  and to give  notices and to take other  action on its behalf  under the
Loan Documents.

                                      -37-
<PAGE>

         (n)  PAYOFF AND  RELEASE  CONFIRMATION  The Bank shall have  received a
payoff and release  letter with respect to all of Green's  obligations  to Heber
Springs  State  Bank   (including   termination   of  all  liens  securing  such
obligations, if any).

         (o) ORGANIZATIONAL AND CAPITAL STRUCTURE The organizational and capital
structure  of each of the  Borrowers  and any of  their  subsidiaries  shall  be
reasonably satisfactory to the Bank.

         (p) LIEN  SEARCHES The Bank shall have  received from the Borrowers the
results of lien searches (UCC, state tax, federal tax, judgment,  litigation and
bankruptcy)  with  respect to Green,  in the State of  Arkansas,  from a service
company reasonably  satisfactory to the Bank, indicating no liens,  mortgages or
other encumbrances on any of the Borrowers' property,  assets or revenues, other
than liens  permitted  under  Section  6(o)  hereof,  and  otherwise in form and
substance satisfactory to the Bank.

         (q) OTHER  SEARCHES.  The Bank shall have received all other  documents
and  assurances  which  it  requires  or  which  it may  reasonably  request  in
connection  with  the  transactions  contemplated  by this  Agreement,  and such
documents shall be certified,  when  appropriate,  by the proper  authorities or
corporate  officers.  All  such  documents  and all  proceedings  to be taken in
connection with such transactions shall be satisfactory in form and substance to
the Bank and its special counsel.

         8. CONDITIONS OF MAKING SUBSEQUENT ADVANCES. The obligation of the Bank
to make any  advance  under a Line of Credit or to issue any Letter of Credit is
subject to the satisfaction of the following  conditions  precedent on or before
the date of each such subsequent  advance or issuance of a Letter of Credit (the
"BORROWING DATE"):

         (a)  REPRESENTATIONS  AND WARRANTIES The representations and warranties
contained in Section 5 hereof and  otherwise  made by each of the  Borrowers and
their  subsidiaries in the Loan Documents shall have been correct as of the date
on which made and shall also be  correct at and as of such  Borrowing  Date with
the same  effect  as if made at and as of such  time,  except  as may have  been
disclosed  to the Bank by any  applicable  Borrower  and to  which  the Bank has
consented and to the extent that the facts upon which such  representations  and
warranties are based may in the ordinary  course be changed by the  transactions
permitted or contemplated hereby.

                                      -38-
<PAGE>

         (b) PERFORMANCE Each of the Borrowers and their subsidiaries shall have
performed and complied  with all terms,  conditions,  covenants and  obligations
under this  Agreement and the other Loan  Documents  required to be performed or
complied with by it prior to or on such  Borrowing  Date,  and on such Borrowing
Date there shall exist no Default or Event of Default hereunder.

         Each  request by the  Borrowers  for an advance  under a Line of Credit
shall  constitute  certification  by each of the Borrowers  that the  conditions
specified in Sections  8(a) and 8(b) will be duly  satisfied on the date of such
advance.

         (c)  ACQUISITIONS  If the Borrowers  desire to make a drawing under the
Second  Line of  Credit,  the  proceeds  of  which  may  only be used to fund an
acquisition  by a  Borrower,  then the  obligation  of the Bank to make any such
advance is subject to the satisfaction of the following  conditions precedent on
or before the Borrowing Date for such advance:

                  (i) The  entity  whose  business,  assets  or  stock  is to be
acquired by a Borrower with funds from the  requested  advance must be primarily
engaged in the dental laboratory business or a business closely related thereto;

                  (ii)  Such  Borrower  shall  have  provided,  or  cause  to be
provided,  to the Bank, a projected  consolidated  pro forma  balance  sheet,  a
projected consolidated pro forma cash flow statement (including proposed Capital
Expenditures)  and a projected  consolidated pro forma profit and loss statement
of Dentex  and its  subsidiaries  for the  period  ending on the last day of the
first full fiscal year following the date of the requested advance, in all cases
setting forth such  financial  information on a fiscal quarter by fiscal quarter
basis for such period and giving effect to such acquisition;

                  (iii)  Such  Borrower  shall  have  provided,  or  cause to be
provided,  to the Bank, (1) historical  financial statements of the entity whose
business,  assets or stock is to be acquired,  as may be requested by Bank,  and
(2) evidence  satisfactory  to the Bank in its sole  discretion  that the entity
whose  business,  assets or stock is to be acquired by such  Borrower with funds
from the requested advance has historically generated recast positive cash flow;
for purposes of this  provision,  positive  cash flow that is "recast"  shall be
determined  by  calculating  the acquired  entity's net income by adjusting  the
amount of depreciation and amortization  incurred,  any other non-cash  charges,
non-recurring  expenses,  or excessive salaries incurred,  and the manufacturing
costs to the level that the  acquired  entity  would have  incurred  had it been
operated by such Borrower during such period;

                  (iv)  immediately  prior to, and after giving  effect to, such
acquisition, no Default or Event of Default shall exist, and the Borrowers shall
have provided the Bank with evidence  satisfactory to the Bank demonstrating the
Borrowers'  compliance  with all of their  covenants and  agreements  under this
Agreement  (including,  but not limited to, the financial covenants set forth in
Sections  6(s) through (u), as evidenced by Borrowers'  Compliance  Certificate)
both prior to such  acquisition  and on a pro forma basis after giving effect to
such acquisition;

                                      -39-
<PAGE>

                  (v) upon consummation of such acquisition,  any corporation or
business  entity  acquired  which  remains  a  separate  legal  entity  from the
Borrowers  shall be a party to such of the Loan  Documents as is required by the
Bank, as more fully described in Section 6(e)(vi) hereof; and

                  (vi) such  Borrower  shall  have  obtained  the prior  written
consent (such consent not to be  unreasonably  withheld) of the Bank for (1) any
single  acquisition  with a  purchase  price,  whether  payable in cash or other
consideration,  that exceeds  $4,000,000,  and (2) in any event, at such time as
the  aggregate  purchase  price  for  acquisitions  after  the  Closing  exceeds
$10,000,000,  for any single acquisition with a purchase price,  whether payable
in cash or other consideration,  that exceeds $2,000,000.  Bank shall respond to
Borrower's  request for  consent  within five (5)  Business  Days of  Borrowers'
providing  Bank with the  information  and  documents  in  accordance  with this
Section 8(c).

         9. EVENTS OF DEFAULT.  Each of the following shall  constitute an event
of default  (an  "EVENT OF  DEFAULT")  under this  Agreement,  the  Amended  and
Restated Line of Credit Notes, the Term Note and the other Loan Documents:

         (a)  REPRESENTATIONS AND WARRANTIES Any representation or warranty made
by any of the Borrowers or any of their  subsidiaries  in this  Agreement or any
other Loan Document shall prove to have been  incorrect in any material  respect
when made, or any information furnished in writing, whether in this Agreement or
any other Loan Document, shall prove to be untrue in any material respect on the
date on which it is or was given.

         (b) COVENANTS Any of the Borrowers or any of their  subsidiaries  shall
fail to perform or observe any covenant or condition contained or referred to in
this  Agreement,  any Amended and Restated Line of Credit Note or the Term Note,
including  without  limitation  the failure to make any payment of  principal or
interest on an Amended and Restated Line of Credit Note,  the Term Note or other
amounts when due or any payment of any fee hereunder;  provided,  however,  that
failure to make any  payment of  interest  on an Amended  and  Restated  Line of
Credit Note or of principal or interest on the Term Note shall not constitute an
Event of Default under this  Agreement  until such failure shall have  continued
for five (5) days after the same became due and payable;  provided  further that
any failure to perform under Sections  6(b),  (c), (d), (l) and (m) hereof shall
not constitute an Event of Default under this Agreement until such failure shall
have continued uncured for 10 days.

                                      -40-
<PAGE>

         (c) ACCELERATION Any event occurs which permits the acceleration of the
maturity  of  any  Indebtedness  of  any  of  the  Borrowers  or  any  of  their
subsidiaries in excess of $500,000 under any mortgage,  deed of trust,  security
or loan  agreement,  indenture,  note or other  undertaking;  or any  demand for
payment is made with respect to any  Indebtedness of any of the Borrowers or any
of their subsidiaries.

         (d) LOAN  DOCUMENTS.  Any default or event of default shall occur under
any of the Loan  Documents  (other  than a default or event of  default  that is
elsewhere specifically dealt with in this Section 9).

         (e)  VOLUNTARY  BANKRUPTCY.  Any of  the  Borrowers  or  any  of  their
subsidiaries  shall  commence  a  voluntary  case or  other  proceeding  seeking
liquidation,  reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the  appointment  of a trustee,  receiver,  liquidator,  custodian or
other similar official of it or any substantial  part of its property,  or shall
consent to any such relief or to the appointment of or taking  possession by any
such official in an involuntary case or other proceeding  commenced  against it,
or shall make a general  assignment for the benefit of creditors,  or shall fail
generally  to pay its debts as they  become  due,  or shall  take any  corporate
action to authorize any of the foregoing;

         (f) INVOLUNTARY  BANKRUPTCY.  An involuntary  case or other  proceeding
shall be commenced  against any of the  Borrowers  or any of their  subsidiaries
seeking  liquidation,  reorganization  or other relief with respect to it or its
debts under any bankruptcy,  insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator,  custodian
or other similar  official of it or any  substantial  part of its property,  and
such involuntary case or other proceeding shall remain  undismissed and unstayed
for a period of 60 days; or an order for relief shall be entered  against any of
the Borrowers or any of their  subsidiaries under the federal bankruptcy laws as
now or hereafter in effect;

         (g)  SEIZURE OF  ASSETS.  There  shall  occur any  seizure,  vesting or
intervention by or under the authority of a governmental  unit by which Dentex's
management  is  displaced  or its  authority  in the conduct of its  business is
materially curtailed.

         (h)  JUDGMENTS.  Any  judgment,  order or writ in excess of $500,000 is
rendered or entered  against any of the  Borrowers or any of their  subsidiaries
and not paid,  satisfied or otherwise discharged within 60 days of the date such
judgment, order or writ becomes final and non-appealable.

                                      -41-
<PAGE>

         (i) LIENS.  A notice of lien,  levy or  assessment is filed or recorded
with  respect  to any  material  part of the assets of the  Borrowers  and their
subsidiaries taken as a whole by the United States, or any department, agency or
instrumentality  thereof,  or  by  any  state,  county,  municipality  or  other
governmental  agency,  or any taxes or debts owing at any time  hereafter to any
one of them  become a lien upon a material  part of the assets of the  Borrowers
and their subsidiaries taken as a whole.

         (j) CASUALTY  LOSS.  There shall occur any material  casualty loss with
respect  to  a  material  part  of  any  of  the  Borrowers'  or  any  of  their
subsidiaries' assets, taken as a whole.

         (k)  QUALIFIED  AUDIT  REPORT.  Any audit report  required  pursuant to
Section  6  is  not  an  unqualified   audit  report,   unless  the  reason  for
qualification  is not  material,  as  determined in the Bank's sole and absolute
discretion.

         (l) CHANGE OF  CONTROL.  (i) (A) any person or group of persons  acting
together (within the meaning of Section 13 or 14 of the Securities  Exchange Act
of 1934,  as  amended)  shall have  acquired  at any time after the date  hereof
"beneficial  ownership"  (within  the meaning of Rule 13d-3  promulgated  by the
Securities and Exchange  Commission  under said Act) of more than thirty percent
(30%) of the common stock or other capital  securities of Dentex  outstanding at
such time and (B) such person or group of persons  (including  any  designees or
appointees of such person or group or person) shall hold or control  (whether by
acting as a Director,  by any voting  agreement  or  arrangement  or  otherwise)
one-third  (1/3) or more of the votes  eligible to be cast by  Directors  at any
duly called meeting of the Board of Dentex;  or (ii) Dentex shall fail to be the
beneficial  owner of 100% of the  capital  stock or other  ownership  or  profit
interests  (whether  voting or  non-voting,  and  including all of the warrants,
options or other  rights for the  purchase or  acquisition  of shares of capital
stock or other ownership or profit interests) of Green and any other of Dentex's
subsidiaries;  provided,  however,  that Dentex and any of its  subsidiaries may
transfer  all or any portion of its  ownership  interests in any  subsidiary  to
another direct or indirect subsidiary of Dentex; or (iii) Green shall fail to be
the beneficial  owner of 100% of the capital stock or other  ownership or profit
interests  (whether  voting or  non-voting,  and  including all of the warrants,
options or other  rights for the  purchase or  acquisition  of shares of capital
stock  or other  ownership  or  profit  interests)  of any of its  subsidiaries;
PROVIDED HOWEVER,  that Green may transfer such capital stock or other ownership
interests in its  subsidiaries to Dentex or any direct or indirect  subsidiaries
of Dentex.

         (m) ERISA. The occurrence of any of the following:  (a) Any "prohibited
transaction"  or  "accumulated  funding  deficiency"  shall have  occurred  with
respect to any  "single  employer  plan" of the  Borrowers  to the  extent  such
occurrence  would cause liability to the Borrowers or any of their  subsidiaries
in an amount in excess of $500,000 per occurrence;  (b) any  "reportable  event"
shall have occurred with respect to any "single  employer plan" of the Borrowers
which in the  reasonable  judgment of the Borrowers  could be expected to have a
material  adverse effect on the Borrowers or their  business,  taken as a whole;
(c) the  Borrowers,  any  predecessor  to any of the  Borrowers or any "commonly
controlled  entity"  shall have been  included in a  "multiemployer  plan" as to
which such Borrower or any "commonly  controlled  entity" has liability  because
such  Borrower or any "commonly  controlled  entity"  withdrew  therefrom to the
extent such  occurrence  would cause  liability  to such  Borrower or any of its
subsidiaries  in an  amount  in  excess  of  $500,000  per  occurrence;  (d) the
institution of proceedings or the taking of any other action by the Borrowers or
any "commonly  controlled  entity" to terminate any "single  employer plan" with
respect to which there exists any vested  unfunded  pension  liabilities  at the
time of such  termination to the extent such occurrence would cause liability to
the  Borrowers or any of their  subsidiaries  in an amount in excess of $500,000
per   occurrence;   or  (e)  the   "reorganization"   or   "insolvency"  of  any
"multiemployer plan" which may reasonably be expected to have a material adverse
effect on the  business,  operations,  property or financial  conditions  of the
Borrowers,  taken as a whole (as each of the quoted  terms is defined or used in
ERISA or the Code).

                                      -42-
<PAGE>

         10. REMEDIES.

         (a) Upon the  occurrence  and  during the  continuation  of an Event of
Default  under  this  Agreement,  the Bank may  exercise  any one or more of the
following rights and remedies (all of which shall be cumulative):

                  (i)  declare  all or any part of the  Loans  or other  amounts
outstanding  hereunder,  under the Amended and Restated  Line of Credit Notes or
under the Term Note and the other  Loan  Documents,  together  with all  accrued
interest thereon and all fees and expenses related thereto,  to be forthwith due
and payable,  whereupon the same shall become forthwith due and payable, without
presentment,  demand,  protest  or other  notice of any  kind,  all of which are
expressly waived by each of the Borrowers;

                  (ii) terminate the Lines of Credit,  the Bank's obligations to
issue Letters of Credit  hereunder,  and any other financial  accommodations  or
commitments  of the  Bank  provided  for by this  Agreement  or the  other  Loan
Documents;

                  (iii) not extend the expiry date of any outstanding  Letter of
Credit;

                  (iv)  proceed with every remedy that is provided for herein or
in the other Loan Documents, or that the Bank may have under applicable law;

PROVIDED that, if any Event of Default specified in clause (e) or (f) of Section
9 occurs,  then  without any notice to any of the  Borrowers or any other act by
the Bank, the Lines of Credit, the Bank's obligations to issue Letters of Credit
hereunder, and any other financial accommodations or commitments provided for in
this Agreement or the other Loan  Documents  shall  thereupon  terminate and all
Loans and other amounts outstanding  hereunder or under the Amended and Restated
Line of Credit  Notes or the other Loan  Documents,  together  with all  accrued
interest  thereon  and all  fees  and  expenses  related  thereto  shall  become
immediately due and payable,  without presentment,  demand, protest or notice of
any kind, all of which are hereby waived by each of the Borrowers.

                                      -43-
<PAGE>

         (b) Without limitation of any other right or remedy of the Bank, (i) if
an Event of Default  shall have  occurred  and the Bank shall have  demanded  or
accelerated  the Loans  outstanding  under the Credit  Facility  or (ii) if this
Agreement  and/or the Credit  Facility  described  herein  shall have expired or
shall have been earlier  terminated  by either the Bank or the Borrowers for any
reason,  the  Borrowers  shall,  promptly  after they receive a request from the
Bank, deposit with the Bank in cash a sum equal to the total of all then undrawn
amounts  under all  outstanding  Letters  of  Credit  issued by the Bank for the
account of the Borrowers,  such cash deposit to serve as cash collateral for the
Borrowers'  reimbursement  obligations in respect of such undrawn  amounts under
such  Letters of Credit;  PROVIDED  that,  if any Event of Default  specified in
clause (e) or (f) of Section 9 occurs,  the Borrowers  shall deposit such amount
with the Bank  forthwith  without  any  notice or demand or any other act by the
Bank.

         11.  JOINT AND SEVERAL  LIABILITY  Each of the  Borrowers  is accepting
joint and several  liability  for all of the  obligations  arising  hereunder or
under  any of  the  other  Loan  Documents  in  consideration  of the  financial
accommodations  to be provided by the Bank under this Agreement,  for the mutual
benefit,  directly and indirectly, of each of the Borrowers and in consideration
of the undertakings of each other Borrower to accept joint and several liability
for the Borrowers'  obligations arising hereunder or under any of the other Loan
Documents.

         (c) Each of the Borrowers,  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 Borrower with respect to the payment
and performance of all of the Borrowers'  obligations arising hereunder or under
any of the other Loan Documents (including,  without limitation, any obligations
arising  under this  Section 11), it being the  intention of the parties  hereto
that all of the  obligations  arising  hereunder  or under any of the other Loan
Documents  shall be the joint and several  obligations  of each of the Borrowers
without preferences or distinction among them.

         (d) If and to the extent that any of the  Borrowers  shall fail to make
any payment with respect to any of the  obligations  arising  hereunder or under
any of the  other  Loan  Documents  as and  when  due or to  perform  any of the
obligations  arising  hereunder  or under any of the  other  Loan  Documents  in
accordance  with the terms  thereof,  then in each such event the other Borrower
will make such payment with respect to, or perform, such obligation.

         (e) The  obligations  arising  hereunder or under any of the other Loan
Documents  of each of the  Borrowers  under the  provisions  of this  Section 11
constitute full recourse  obligations of each such Borrower  enforceable against
each such  Borrower to the full  extent of its  properties  and  assets,  to the
fullest  extent  permitted by  applicable  law,  irrespective  of the  validity,
regularity or  enforceability  of this Loan Agreement against any other Borrower
or any other circumstance whatsoever.

                                      -44-
<PAGE>

         (f) Each of the Borrowers hereby agrees that it will not enforce any of
its rights of  contribution  or  subrogation  against  the other  Borrower  with
respect to any liability incurred by it hereunder or under any of the other Loan
Documents,  any  payments  made by it to the  Bank  with  respect  to any of the
obligations  hereunder or under any of the other Loan Documents  until such time
as all of the  obligations  hereunder  or under any of the other Loan  Documents
have been  irrevocably  paid in full in cash.  Any claim which any  Borrower may
have  against  any other  Borrower  with  respect  to any  payments  to the Bank
hereunder or under any other Loan Document are hereby expressly made subordinate
and junior in right of payment,  without  limitation  as to any increases in the
obligations arising hereunder or thereunder, to the prior payment in full of the
obligations hereunder or under any of the other Loan Documents and, in the event
of any insolvency,  bankruptcy,  receivership,  liquidation,  reorganization  or
other  similar  proceeding  under the laws of any  jurisdiction  relating to any
Borrower,  its debts or its assets,  whether voluntary or involuntary,  all such
obligations  arising hereunder or under any of the other Loan Documents shall be
paid in full before any payment or  distribution  of any  character,  whether in
cash,  securities  or  other  property,  shall  be  made to any  other  Borrower
therefor.

         12. MISCELLANEOUS.

         (a) WAIVERS  This  Agreement  and the other Loan  Documents  may not be
changed, waived,  discharged or terminated orally or in writing, except that any
term of this  Agreement  or any  other  Loan  Document  may be  amended  and the
performance  or observance by the Borrowers of any term of this Agreement or any
other Loan Document may be waived (either generally or in a particular  instance
and either  retroactively  or  prospectively)  with,  but only  with,  the prior
written consent of the Bank.

         (b)  DELAYS No delay on the part of the Bank in  exercising  any right,
power or privilege  hereunder shall operate as a waiver  thereof,  nor shall any
partial  exercise or waiver of any  privilege  or right  hereunder  preclude any
further  exercise of such privilege or right or the exercise of any other right,
power or privilege.  The rights and remedies  expressed in this Agreement and in
the other Loan Documents are cumulative and not exclusive of any right or remedy
which the Bank may otherwise  have. To the extent the Bank holds any  collateral
as security  for payment or any of the other  obligations  arising  hereunder or
under  any of the other  Loan  Documents,  the Bank may  release  or  surrender,
exchange or substitute any real estate or personal  property,  or both, or other
collateral  security  now or  hereafter  held as security for the payment of the
Amended  and  Restated  Line of  Credit  Notes  or the  Term  Note or any  other
obligations  of the Borrowers to the Bank under this Agreement or the other Loan
Documents  or  however  arising.  The Bank may  extend  the time for  payment or
otherwise  modify the terms of  payment of any part or the whole of the  Amended
and Restated Line of Credit Notes or the Term Note.

         (c) NOTICES Any notices,  consents or other  communications to be given
under this Agreement or under the other Loan  Documents  shall be in writing and
shall be deemed given when mailed to the respective parties by overnight courier
or by  registered  mail  addressed  as set  forth  on the  first  page  of  this
Agreement,  with all such notices, consents and other communications to the Bank
to be sent to the  attention  of Elise M. Russo,  or to such other  addresses as
either party may from time to time  designate for that  purpose.  A copy of each
notice to the Bank shall also by sent to the Bank's special counsel,  Goulston &
Storrs, 400 Atlantic Avenue, Boston, Massachusetts 02110-3333, Attention: Philip
A. Herman, Esquire. A copy of each notice to the Borrowers shall also be sent to
the Borrowers'  counsel,  Posternak  Blankstein & Lund LLP, 800 Boylston Street,
Prudential Tower, Boston, Massachusetts 02199-8004, Attention: Donald H. Siegel,
P.C.  Section  headings and defined  terms in this  Agreement and the other Loan
Documents  are included for  convenience  only and are not intended to modify or
define any term or provision of any such instrument.

                                      -45-
<PAGE>

         (d)  SET-OFF.  Regardless  of  the  adequacy  of  any  collateral,  any
deposits,  balances  or  other  sums  credited  by or due  from  the Bank to the
Borrowers  or any of their  subsidiaries  may, at any time or from time to time,
without  notice  to any of  the  Borrowers  or  any  of  their  subsidiaries  or
compliance  with any other  condition  precedent  now or  hereafter  imposed  by
statute, rule of law or otherwise (all of which are hereby expressly waived), be
set  off,  appropriated  and  applied  by the  Bank  against  any  or  all  such
obligations in such manner as the Bank in its sole discretion may determine.

         (e)  JURISDICTION;  WAIVER OF JURY TRIAL.  Each of the  Borrowers,  for
itself and its  subsidiaries,  irrevocably  submits to the  jurisdiction  of the
courts of the Commonwealth of Massachusetts and the United States District Court
for the District of Massachusetts  for the purpose of any suit,  action or other
proceeding  brought by the Bank arising out of or relating to this  Agreement or
any  other  Loan  Document,  and  each  of the  Borrowers,  for  itself  and its
subsidiaries,  waives and agrees not to assert by way of motion, as a defense or
otherwise in any such suit,  action or proceeding,  any claim that such Borrower
or any of its subsidiaries is not personally  subject to the jurisdiction of the
courts of the  Commonwealth of Massachusetts or the United States District Court
for the District of  Massachusetts  or that the property of such Borrower or any
of its  subsidiaries  is exempt or immune from execution or  attachment,  either
prior to judgment or in aid of execution, that the suit, action or proceeding is
brought  in an  inconvenient  forum or that the  venue of the  suit,  action  or
proceeding is improper, or that this Agreement or any other Loan Document or the
subject  matter hereof or thereof may not be enforced in or by such court.  EACH
OF THE  BORROWERS  AND THE  BANK  HEREBY  MUTUALLY  KNOWINGLY,  VOLUNTARILY  AND
INTENTIONALLY  WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM  BASED
HEREON,  ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENTS  CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF ANY PARTY,  AND AGREE THAT NO PARTY WILL SEEK TO CONSOLIDATE  ANY SUCH ACTION
WITH ANY OTHER  ACTION IN WHICH A JURY TRIAL  CANNOT BE OR HAS NOT BEEN  WAIVED.
EACH PARTY HERETO  CERTIFIES  THAT NO  REPRESENTATIVE,  AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF  LITIGATION,  SEEK TO ENFORCE THE  FOREGOING  WAIVER.  THIS
WAIVER CONSTITUTES A MATERIAL  INDUCEMENT FOR BANK TO EXECUTE THIS AGREEMENT AND
MAKE THE LOANS AND EXTEND CREDIT TO BORROWERS.

                                      -46-
<PAGE>

         (f) USURY. All agreements between the Borrowers and the Bank are hereby
expressly  limited so that in no  contingency  or event  whatsoever,  whether by
reason of  acceleration  of maturity  of the  indebtedness  evidenced  hereby or
otherwise, shall the amount paid or agreed to be paid to Bank for the use or the
forbearance of the indebtedness  evidenced hereby exceed the maximum permissible
under  applicable law. As used herein,  the term "applicable law" shall mean the
law in effect as of the date hereof; provided,  however, that in the event there
is a change in the law which results in a higher  permissible  rate of interest,
then the Amended and  Restated  Line of Credit  Notes and the Term Note shall be
governed  by such  new law as of its  effective  date.  In  this  regard,  it is
expressly  agreed that it is the intent of Borrowers and Bank in the  execution,
delivery and acceptance of the Amended and Restated Line of Credit Notes and the
Term Note to contract in strict  compliance with the laws of the Commonwealth of
Massachusetts  from time to time in effect.  If, under or from any circumstances
whatsoever,  fulfillment of any provision hereof or of any of the Loan Documents
at the  time of  performance  of such  provision  shall  be due,  shall  involve
transcending  the limit of such validity  prescribed by applicable law, then the
obligation to be fulfilled shall  automatically be reduced to the limits of such
validity,  and if under or from any  circumstances  whatsoever  Bank should ever
receive as interest an amount which would exceed the highest  lawful rate,  such
amount which would be excessive  interest  shall be applied to the  reduction of
the principal balance evidenced hereby and not to the payment of interest.  This
provision  shall control  every other  provision of all  agreements  between the
Borrowers and the Bank.

         (g)  EXECUTION.   This  Agreement  may  be  signed  in  any  number  of
counterparts, which together will be one and the same instrument. This Agreement
shall become  effective  whenever each party shall have signed at least one such
counterpart.

         (h) GOVERNING LAW. This Agreement  shall be governed by the laws of the
Commonwealth  of  Massachusetts  and for all  purposes  shall  be  construed  in
accordance with the laws of such Commonwealth.

         (i) FEES;  INDEMNIFICATION.  Whether  or not any  funds  are  disbursed
hereunder,  each of the Borrowers shall pay all of the Bank's  reasonable  costs
and expenses in connection with the preparation,  execution,  delivery,  review,
administration  and  enforcement of this Agreement and the other Loan Documents,
including reasonable legal fees and disbursements.  Each of the Borrowers hereby
agrees to  indemnify  and hold  harmless  the Bank from and  against any and all
claims,  damages,  losses,  liabilities,  costs or expenses (including,  without
limitation, the reasonable fees and disbursements of counsel) which the Bank may
reasonably  incur  (or  which  may be  claimed  against  the Bank by any  person
whatsoever)  by reason  of, in  connection  with or in any way  related  to this
Agreement and the other Loan Documents or any of the  transactions  contemplated
hereby  or  thereby;  provided  that the  Borrowers  shall  not be  required  to
indemnify  the Bank  for any  claims,  damages,  losses,  liabilities,  costs or
expenses to the extent,  but only to the extent  caused by gross  negligence  or
willful misconduct of the Bank.

                                      -47-
<PAGE>

         (j) BINDING  NATURE.  This  Agreement  shall be binding  upon and shall
inure to the benefit of the parties hereto and their  respective  successors and
assigns; provided that the rights and obligations under this Agreement and under
any of the other Loan  Documents  may not be  assigned  by any of the  Borrowers
without the written consent of the Bank.

         (k) ASSIGNMENT; PARTICIPATIONS; PLEDGE TO FEDERAL RESERVE. (i) The Bank
shall have the unrestricted  right at any time or from time to time, and without
any of the  Borrowers'  consent,  to assign all or any portion of its rights and
obligations  hereunder  to one or more  banks  or other  financial  institutions
(each,  an  "ASSIGNEE"),  after giving at least 15 Business  Days prior  written
notice of such  assignment to the  Borrowers,  and the  Borrowers  agree that it
shall  execute,  or cause to be  executed,  such  documents,  including  without
limitation, amendments to this Agreement and to any other documents, instruments
and agreements  executed in connection  herewith as Bank shall deem necessary to
effect the foregoing. In addition, at the request of Bank and any such Assignee,
the Borrowers shall issue one or more new promissory  notes,  as applicable,  to
any such  Assignee  and, if Bank has retained any of its rights and  obligations
hereunder  following such assignment,  to Bank, which new promissory notes shall
be issued in replacement of, but not in discharge of, the liability evidenced by
the promissory  note held by Bank prior to such assignment and shall reflect the
amount of the  respective  commitments  and Loans held by such Assignee and Bank
after  giving  effect to such  assignment.  Upon the  execution  and delivery of
appropriate  assignment  documentation,  amendments and any other  documentation
required by Bank in connection with such assignment, and the payment by Assignee
of the purchase price agreed to by Bank and such  Assignee,  such Assignee shall
be a party to this Agreement and shall have all of the rights and obligations of
Bank hereunder (and under any and all other guaranties,  documents,  instruments
and agreements  executed in connection  herewith) to the extent that such rights
and  obligations   have  been  assigned  by  Bank  pursuant  to  the  assignment
documentation  between Bank and such  Assignee,  and Bank shall be released from
its obligations hereunder and thereunder to a corresponding extent.

                                      -48-
<PAGE>

                           (ii) Bank  shall have the  unrestricted  right at any
time and from time to time,  and without  the  consent of any of the  Borrowers,
after giving at least 15 Business Days prior written notice of such grant to the
Borrowers,  to grant to one or more banks or other financial institutions (each,
a  "PARTICIPANT")  participating  interests  in the  Bank's  obligation  to lend
hereunder and/or any or all of the Loans held by Bank hereunder. In the event of
any such grant by Bank of a  participating  interest to a Participant,  the Bank
shall remain  responsible for the  performance of its obligations  hereunder and
the Borrowers shall continue to deal solely and directly with Bank in connection
with Bank's rights and obligations hereunder.

                           (iii) The Bank may furnish any information concerning
the Borrowers in its possession  from time to time to  prospective  Assignees or
Participants, provided that the Bank shall require any such prospective Assignee
or  Participant  to agree in writing to  maintain  the  confidentiality  of such
information.

                           (iv)  Notwithstanding any of the foregoing,  the Bank
may at any time pledge or assign all or any portion of its rights under the Loan
Documents including any portion of the Amended and Restated Line of Credit Notes
or the Term Note to any of the twelve (12) Federal Reserve Banks organized under
Section 4 of the Federal  Reserve Act, 12 U.S.C.  Section 341. No such pledge or
assignment or  enforcement  thereof shall release the Bank from its  obligations
under any of the Loan Documents.

         (l) UNDER  SEAL.  This  Agreement  shall be deemed to be an  instrument
under  seal  and  shall  continue  in  full  force  and  effect  so  long as any
indebtedness of any of the Borrowers to the Bank remains unpaid.

         (m) USE OF PROCEEDS.  Borrowers (i) for working capital purposes of the
Borrower, (ii) to refinance existing Indebtedness of the Borrowers, (iii) in the
case of the Second Line of Credit, to fund acquisitions by the Borrower,  to the
extent  permitted  herein,  and (iv) in the case of the  Term  Loan,  to pay the
outstanding  balance  under the Second  Line of Credit on the Closing  Date.  No
portion of the proceeds of any loans shall be used, and no portion of any Letter
of Credit is to be obtained,  in whole or in part, for the purpose of purchasing
or carrying any "margin  security"  or "margin  stock" as such terms are used in
Regulations U, T or X of the Board of Governors of the Federal Reserve System.

         (n)  CONFIDENTIALITY.  Notwithstanding any  confidentiality  provisions
contained  herein,  and in accordance  with Section  1.6011-4(b)(3)(iii)  of the
Treasury  Regulations,   each  party  to  this  Agreement  (and  each  employee,
representative,  or  other  agent of each  party)  may  disclose  to any and all
persons,  without limitation of any kind, the tax treatment and tax structure of
the  transactions  contemplated  by this Agreement and all materials of any kind
(including  opinions  or other tax  analyses)  that are  provided  to such party
relating to such tax  treatment  and tax  structure;  provided,  however,  that,
pursuant  to  Section  1.6011-4(b)(3)(ii)  of  the  Treasury  Regulations,  such
disclosure  shall not be permitted to the extent,  but only to the extent,  such
disclosure would  reasonably be considered to result in  noncompliance  with the
securities laws of any applicable jurisdiction.  For the avoidance of doubt, the
parties  acknowledge  and agree that the tax  treatment and tax structure of any
transaction  does not  include  the name of any  party to a  transaction  or any
sensitive  business  information   (including,   without  limitation,   specific
information about any party's intellectual property or other proprietary assets)
unless such  information  may be related or relevant to the purported or claimed
federal income tax treatment of the transaction.

                                      -49-
<PAGE>

         If you agree with the terms of this  Agreement,  including the Exhibits
attached  hereto and the other documents  referred to herein,  please sign below
where indicated in your capacity as President and Chief Executive Officer of the
Borrower.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      -50-
<PAGE>

                           Agreement  BANK OF
                           AMERICA, N.A.

                           By: /S/ ELISE M. RUSSO
                               -----------------------
                                Name: Elise M. Russo
                                Title: SVP

ACCEPTED AND AGREED TO:

NATIONAL DENTEX CORPORATION

By: /S/RICHARD F. BECKER
    -----------------------------------------
     Name: Richard F. Becker
     Title: Executive V.P., Treasurer & CFO

GREEN DENTAL LABORATORIES, INC.

By: /S/ RICHARD F. BECKER
    -----------------------------------------
     Name: Richard F. Becker
     Title: Assistant Treasurer

                   Signature Page to Amended and Restated Loan

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