Document:

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                                 EXECUTION COPY

                                CREDIT AGREEMENT

                          Dated as of February 10, 2004

                                      among

                             RENAL CARE GROUP, INC.,
                                as the Borrower,

               THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN,
                               as the Guarantors,

                             BANK OF AMERICA, N.A.,
           as Administrative Agent, Swing Line Lender and L/C Issuer,

                                 SUNTRUST BANK,
                              as Syndication Agent,

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                    DEUTSCHE BANK TRUST COMPANY AMERICAS, and
                         KEY BANK NATIONAL ASSOCIATION,
                           as Co-Documentation Agents,

                                       and

                         THE OTHER LENDERS PARTY HERETO

                                  Arranged By:

                         BANC OF AMERICA SECURITIES LLC,

                   as Sole Lead Arranger and Sole Book Manager

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                      <C>
ARTICLE I  DEFINITIONS AND ACCOUNTING TERMS......................................................................         1
         1.01     Defined Terms..................................................................................         1
         1.02     Other Interpretive Provisions..................................................................        26
         1.03     Accounting Terms...............................................................................        26
         1.04     Rounding.......................................................................................        27
         1.05     References to Agreements and Laws..............................................................        27
         1.06     Times of Day...................................................................................        27
         1.07     Letter of Credit Amounts.......................................................................        27
ARTICLE II  THE COMMITMENTS AND CREDIT EXTENSIONS................................................................        27
         2.01     Revolving Loans, Term Loan and Incremental Term Loans..........................................        27
         2.02     Borrowings, Conversions and Continuations of Loans.............................................        29
         2.03     Letters of Credit..............................................................................        30
         2.04     Swing Line Loans...............................................................................        38
         2.05     Prepayments....................................................................................        40
         2.06     Termination or Reduction of Aggregate Revolving Commitments....................................        42
         2.07     Repayment of Loans.............................................................................        42
         2.08     Interest.......................................................................................        43
         2.09     Fees...........................................................................................        44
         2.10     Computation of Interest and Fees...............................................................        44
         2.11     Evidence of Debt...............................................................................        45
         2.12     Payments Generally.............................................................................        45
         2.13     Sharing of Payments............................................................................        47
ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY..............................................................        47
         3.01     Taxes..........................................................................................        47
         3.02     Illegality.....................................................................................        48
         3.03     Inability to Determine Rates...................................................................        49
         3.04     Increased Cost and Reduced Return; Capital Adequacy............................................        49
         3.05     Funding Losses.................................................................................        50
         3.06     Matters Applicable to all Requests for Compensation............................................        50
         3.07     Survival.......................................................................................        51
ARTICLE IV  GUARANTY.............................................................................................        51
         4.01     The Guaranty...................................................................................        51
         4.02     Obligations Unconditional......................................................................        51
         4.03     Reinstatement..................................................................................        52
         4.04     Certain Additional Waivers.....................................................................        52
         4.05     Remedies.......................................................................................        53
         4.06     Rights of Contribution.........................................................................        53
         4.07     Guarantee of Payment; Continuing Guarantee.....................................................        54
ARTICLE V  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS.............................................................        54
         5.01     Conditions of Initial Credit Extension.........................................................        54
         5.02     Conditions to all Credit Extensions............................................................        56
         5.03     Further Conditions to the Borrowing of Incremental Term Loans..................................        56
ARTICLE VI  REPRESENTATIONS AND WARRANTIES.......................................................................        57
</TABLE>

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<TABLE>
<S>                                                                                                                      <C>
         6.01     Existence, Qualification and Power.............................................................        57
         6.02     Authorization; No Contravention................................................................        57
         6.03     Governmental Authorization; Other Consents.....................................................        57
         6.04     Binding Effect.................................................................................        58
         6.05     Financial Statements; No Material Adverse Effect...............................................        58
         6.06     Litigation.....................................................................................        59
         6.07     No Default.....................................................................................        59
         6.08     Ownership of Property; Liens...................................................................        59
         6.09     Environmental Compliance.......................................................................        59
         6.10     Insurance......................................................................................        60
         6.11     Taxes..........................................................................................        60
         6.12     ERISA Compliance...............................................................................        60
         6.13     Subsidiaries...................................................................................        61
         6.14     Margin Regulations; Investment Company Act; Public Utility Holding Company Act.................        61
         6.15     Disclosure.....................................................................................        61
         6.16     Compliance with Laws...........................................................................        61
         6.17     Intellectual Property; Licenses, Etc...........................................................        62
         6.18     Solvency.......................................................................................        62
         6.19     Perfection of Security Interests in the Collateral.............................................        62
         6.20     Business Locations.............................................................................        62
         6.21     Brokers' Fees..................................................................................        62
         6.22     Labor Matters..................................................................................        62
         6.23     Compliance with Fraud and Abuse Laws...........................................................        62
         6.24     Licensing, Etc.................................................................................        63
ARTICLE VII  AFFIRMATIVE COVENANTS...............................................................................        63
         7.01     Financial Statements...........................................................................        63
         7.02     Certificates; Other Information................................................................        64
         7.03     Notices........................................................................................        65
         7.04     Payment of Obligations.........................................................................        66
         7.05     Preservation of Existence, Etc.................................................................        66
         7.06     Maintenance of Properties......................................................................        66
         7.07     Maintenance of Insurance.......................................................................        66
         7.08     Compliance with Laws...........................................................................        67
         7.09     Books and Records..............................................................................        67
         7.10     Inspection Rights..............................................................................        67
         7.11     Use of Proceeds................................................................................        67
         7.12     Additional Subsidiaries........................................................................        68
         7.13     ERISA Compliance...............................................................................        68
         7.14     Pledged Assets.................................................................................        68
         7.15     Opinions of Counsel............................................................................        69
ARTICLE VIII  NEGATIVE COVENANTS.................................................................................        69
         8.01     Liens..........................................................................................        69
         8.02     Investments....................................................................................        71
         8.03     Indebtedness...................................................................................        71
         8.04     Fundamental Changes............................................................................        72
</TABLE>

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<TABLE>
<S>                                                                                                                      <C>
         8.05     Dispositions...................................................................................        73
         8.06     Restricted Payments............................................................................        74
         8.07     Change in Nature of Business...................................................................        74
         8.08     Transactions with Affiliates and Insiders......................................................        74
         8.09     Burdensome Agreements..........................................................................        75
         8.10     Use of Proceeds................................................................................        75
         8.11     Financial Covenants............................................................................        76
         8.12     Prepayment of Other Indebtedness...............................................................        76
         8.13     Organization Documents; Fiscal Year; Legal Name, State of Formation and Form of Entity.........        76
         8.14     Preferred Stock................................................................................        77
         8.15     Sale Leasebacks................................................................................        77
         8.16     Interest Rate Protection Agreements............................................................        77
ARTICLE IX  EVENTS OF DEFAULT AND REMEDIES.......................................................................        77
         9.01     Events of Default..............................................................................        77
         9.02     Remedies Upon Event of Default.................................................................        80
         9.03     Application of Funds...........................................................................        80
ARTICLE X  ADMINISTRATIVE AGENT..................................................................................        81
         10.01    Appointment and Authorization of Administrative Agent..........................................        81
         10.02    Delegation of Duties...........................................................................        82
         10.03    Liability of Administrative Agent..............................................................        82
         10.04    Reliance by Administrative Agent...............................................................        82
         10.05    Notice of Default..............................................................................        83
         10.06    Credit Decision; Disclosure of Information by Administrative Agent.............................        83
         10.07    Indemnification of Administrative Agent........................................................        83
         10.08    Administrative Agent in its Individual Capacity................................................        84
         10.09    Successor Administrative Agent.................................................................        84
         10.10    Administrative Agent May File Proofs of Claim..................................................        85
         10.11    Collateral and Guaranty Matters................................................................        85
         10.12    Other Agents; Arrangers and Managers...........................................................        86
ARTICLE XI  MISCELLANEOUS........................................................................................        86
         11.01    Amendments, Etc................................................................................        86
         11.02    Notices and Other Communications; Facsimile Copies.............................................        88
         11.03    No Waiver; Cumulative Remedies.................................................................        89
         11.04    Attorney Costs, Expenses and Taxes.............................................................        89
         11.05    Indemnification by the Borrower................................................................        90
         11.06    Payments Set Aside.............................................................................        90
         11.07    Successors and Assigns.........................................................................        91
         11.08    Confidentiality................................................................................        93
         11.09    Set-off........................................................................................        94
         11.10    Interest Rate Limitation.......................................................................        94
         11.11    Counterparts...................................................................................        94
         11.12    Integration....................................................................................        95
         11.13    Survival of Representations and Warranties.....................................................        95
         11.14    Severability...................................................................................        95
         11.15    Tax Forms......................................................................................        95
</TABLE>

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<TABLE>
<S>      <C>                                                                                                             <C>
         11.16    Replacement of Lenders.........................................................................        97
         11.17    Governing Law..................................................................................        97
         11.18    Waiver of Right to Trial by Jury...............................................................        98
         11.19    USA PATRIOT Act Notice.........................................................................        98

</TABLE>

                                       iv
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SCHEDULES

         1.01     Existing Letters of Credit
         2.01     Commitments and Pro Rata Shares
         6.10     Insurance
         6.13     Subsidiaries
         6.20     Jurisdiction of Organization, Etc.
         8.01     Liens Existing on the Closing Date
         8.02     Investments Existing on the Closing Date
         8.03     Indebtedness Existing on the Closing Date
         11.02    Certain Addresses for Notices

EXHIBITS

         A        Form of Incremental Term Loan Commitment Agreement
         B        Form of Loan Notice
         C        Form of Swing Line Loan Notice
         D-1      Form of Revolving Note
         D-2      Form of Swing Line Note
         D-3      Form of Term Note
         D-4      Form of Incremental Term Note
         E        Form of Compliance Certificate
         F        Form of Assignment and Assumption
         G        Form of Joinder Agreement

                                        v

<PAGE>

                                CREDIT AGREEMENT

         This CREDIT AGREEMENT is entered into as of February 10, 2004 among
RENAL CARE GROUP, INC., a Delaware corporation (the "Borrower"), the Guarantors
(defined herein), the Lenders (defined herein) and BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and an L/C Issuer.

         The Borrower has requested that the Lenders provide $475,000,000 in
credit facilities for the purposes set forth herein, and the Lenders are willing
to do so on the terms and conditions set forth herein.

         In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

1.01 Defined Terms.

         As used in this Agreement, the following terms shall have the meanings
set forth below:

         "Acquisition", by any Person, means the acquisition by such Person, in
a single transaction or in a series of related transactions, of all or any
substantial portion of the Property of another Person or at least a majority of
the Voting Stock of another Person, in each case whether or not involving a
merger or consolidation with such other Person and whether for cash, property,
services, assumption of Indebtedness, securities or otherwise.

         "Additional Permitted Indebtedness" means the senior unsecured notes
and/or senior unsecured subordinated notes incurred and/or assumed in connection
with Permitted Acquisitions.

         "Additional Subordinated Indebtedness" means any Indebtedness of the
Borrower utilized solely to redeem or otherwise refinance any Additional
Permitted Indebtedness and which by its terms is expressly subordinated in right
of payment to the prior payment of the Obligations under this Agreement and the
other Loan Documents containing terms and conditions (including without
limitation the subordination provisions) reasonably satisfactory to the
Administrative Agent.

         "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

         "Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 11.02 or such
other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

         "Administrative Questionnaire" means an Administrative Questionnaire in
a form supplied by the Administrative Agent.

         "Affiliate" means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. "Control"
means the possession, directly or indirectly, of the power to direct or cause
the

<PAGE>

direction of the management or policies of a Person, whether through the ability
to exercise voting power, by contract or otherwise. "Controlling" and
"Controlled" have meanings correlative thereto. Without limiting the generality
of the foregoing, a Person shall be deemed to be Controlled by another Person if
such other Person possesses, directly or indirectly, power to vote 10% or more
of the securities having ordinary voting power for the election of directors,
managing general partners or the equivalent.

         "Agent-Related Persons" means the Administrative Agent, together with
its Affiliates (including, in the case of Bank of America in its capacity as the
Administrative Agent, BAS), and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and Affiliates.

         "Aggregate Revolving Commitments" means the Revolving Commitments of
all the Lenders. The initial amount of the Aggregate Revolving Commitments in
effect on the Closing Date is ONE HUNDRED AND FIFTY MILLION DOLLARS
($150,000,000).

         "Aggregate Term Loan Commitments" means the Term Loan Commitments of
all Lenders. The initial Amount of the Aggregate Term Loan Commitments in effect
on the Closing Date is THREE HUNDRED AND TWENTY FIVE MILLION DOLLARS
($325,000,000).

         "Agreement" means this Credit Agreement, as amended, modified,
supplemented and extended from time to time.

         "Applicable Rate" means (a) in the case of the Incremental Term Loans,
the percentage per annum determined on or prior to the applicable Incremental
Term Loan Borrowing Date as set forth in the applicable Incremental Term Loan
Commitment Agreement and (b) in the case of the Revolving Loans, the Letters of
Credit, the Swing Line Loans and the Term Loan, the following percentages per
annum, based upon the Consolidated Leverage Ratio as set forth in the most
recent Compliance Certificate received by the Administrative Agent pursuant to
Section 7.02(a):

<TABLE>
<CAPTION>
Pricing     Consolidated      Commitment
 Level     Leverage Ratio         Fee           Letters of Credit       Eurodollar Loans        Base Rate Loans
------     --------------     ----------        -----------------       ----------------        ---------------
<S>        <C>                <C>               <C>                     <C>                     <C>
   1       < or = 0.5:1.0        0.25%                0.75%                  0.75%                     0%

   2       > 0.5:1.0 but        0.275%               0.875%                 0.875%                     0%
           < or = 1.0:1.0

   3       >1.0:1.0 but         0.275%                1.00%                  1.00%                     0%
           < or = 1.5:1.0

   4        > 1.5:1.0 but        0.30%                1.50%                  1.50%                  0.50%
           < or =  2.0:1.0

   5          > 2.0:1.0          0.35%                1.75%                  1.75%                  0.75%
</TABLE>

Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is required to be
delivered pursuant to Section 7.02(a); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then
Pricing Level 5 shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered and shall
continue to apply until the first Business Day immediately following the date a
Compliance Certificate is delivered in accordance with Section 7.02(a),
whereupon the Applicable Rate shall be adjusted based upon the calculation of
the Consolidated Leverage Ratio contained in such Compliance Certificate.
Notwithstanding the foregoing (a) the Applicable Rate in effect from the Closing
Date through the first Business Day immediately following the date a Compliance
Certificate is required

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to be delivered pursuant to Section 7.02(a) for the fiscal year ending December
31, 2003 (the "Test Date") shall be determined based on Pricing Level 3, and (b)
the Applicable Rate in effect from the Test Date through the first Business Day
immediately following the date a Compliance Certificate is required to be
delivered pursuant to Section 7.02(a) for the fiscal quarter ending June 30,
2004 the Applicable Rate in effect shall not be lower than the rates identified
in Pricing Level 3; provided, however, that as of the first Business Day after
the date of the consummation of the Titan Acquisition, the Applicable Rate shall
be determined based upon the Consolidated Leverage Ratio after giving effect to
the Titan Acquisition on a Pro Forma Basis (as determined in that certain Pro
Forma Compliance Certificate delivered by the Borrower in connection with the
Titan Acquisition) and shall continue at such Applicable Rate until changed
pursuant to the provisions in the first sentence of this definition of
"Applicable Rate".

         "Assignment and Assumption" means an Assignment and Assumption
substantially in the form of Exhibit F.

         "Attorney Costs" means and includes all reasonable and actual fees,
expenses and disbursements of any law firm or other external counsel.

         "Attributable Indebtedness" means, on any date, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
(b) in respect of any Synthetic Lease, the capitalized amount of the remaining
lease payments under the relevant lease that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a Capital Lease, and (c) in respect of any Securitization
Transaction of any Person, the outstanding principal amount of such financing,
after taking into account reserve accounts and making appropriate adjustments,
determined by the Administrative Agent in its reasonable judgment.

         "Audited Financial Statements" means the audited consolidated balance
sheet of the Borrower and its Subsidiaries for the fiscal year ended December
31, 2002, and the related consolidated statements of income or operations,
stockholders' equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

         "Availability Period" means (a) with respect to the Revolving
Commitments, the period from and including the Closing Date to the earliest of
(i) the Maturity Date, (ii) the date of termination of the Aggregate Revolving
Commitments pursuant to Section 2.06, and (iii) the date of termination of the
commitment of each Lender to make Revolving Loans and of the obligation of the
L/C Issuers to make L/C Credit Extensions pursuant to Section 9.02, and (b) with
respect to the Term Loan Commitments, the period from and including the Closing
Date to the earlier of (i) May 31, 2004 and (ii) the date that the full amount
of the Term Loan available under the Aggregate Term Loan Commitments has been
funded to the Borrower.

         "Bank of America" means Bank of America, N.A. and its successors.

         "BAS" means Banc of America Securities LLC, in its capacity as sole
lead arranger and sole book manager.

         "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% (0.5%) and (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its "prime rate." The "prime rate" is a rate set by Bank of
America based upon various factors including Bank of America's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate. Any change in the "prime rate" announced by Bank of

                                       3
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America shall take effect at the opening of business on the day specified in the
public announcement of such change.

         "Base Rate Loan" means a Loan that bears interest based on the Base
Rate.

         "Borrower" has the meaning specified in the introductory paragraph
hereto.

         "Borrowing" means a borrowing consisting of simultaneous Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest
Period made by each of the Lenders pursuant to Section 2.01.

         "Business Day" means any day other than Saturday, Sunday or other day
on which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the state where the Administrative Agent's Office is located or,
with respect to a Letter of Credit, the state where the applicable L/C Issuer's
office is located and, if such day relates to any Eurodollar Rate Loan, means
any such day on which dealings in Dollar deposits are conducted by and between
banks in the London interbank eurodollar market.

         "Businesses" means, at any time, a collective reference to the
businesses operated by the Borrower and its Subsidiaries at such time.

         "Capital Lease" means, as applied to any Person, any lease of any
Property by that Person as lessee which, in accordance with GAAP, is required to
be accounted for as a capital lease on the balance sheet of that Person.

         "Capital Stock" means (i) in the case of a corporation, capital stock,
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock, (iii) in the case of a partnership, partnership interests
(whether general or limited), (iv) in the case of a limited liability company,
membership interests and (v) any other interest or participation right in an
issuing Person that confers on another Person the right to receive a share of
the profits and losses of, or distributions of assets of, the issuing Person.

         "Cash Collateralize" has the meaning specified in Section 2.03(g).

         "Cash Equivalents" means, as at any date, (a) securities issued or
directly and fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States is pledged in support thereof) having maturities of not more than twelve
months from the date of acquisition, (b) Dollar denominated time deposits and
certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of
recognized standing having capital and surplus in excess of $500,000,000 or
(iii) any bank whose short-term commercial paper rating from S&P is at least A-1
or the equivalent thereof or from Moody's is at least P-1 or the equivalent
thereof (any such bank being an "Approved Bank"), in each case with maturities
of not more than 270 days from the date of acquisition, (c) commercial paper and
variable or fixed rate notes issued by any Approved Bank (or by the parent
company thereof) or any variable rate notes issued by, or guaranteed by, any
domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or
P-1 (or the equivalent thereof) or better by Moody's and maturing within six
months of the date of acquisition, (d) repurchase agreements entered into by any
Person with a bank or trust company (including any of the Lenders) or recognized
securities dealer having capital and surplus in excess of $500,000,000 for
direct obligations issued by or fully guaranteed by the United States in which
such Person shall have a perfected first priority security interest (subject to
no other Liens) and having, on the date of purchase thereof, a fair market value
of at least 100% of the amount of the repurchase obligations, and (e)
Investments, classified in accordance with GAAP as current assets, in money
market investment programs

                                       4
<PAGE>

registered under the Investment Company Act of 1940, as amended, which are
administered by reputable financial institutions having capital of at least
$500,000,000 and the portfolios of which are limited to Investments of the
character described in the foregoing subdivisions (a) through (d).

         "Change of Control" means an event or series of events by which:

                  (a) any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
         excluding any employee benefit plan of such person or its subsidiaries,
         and any person or entity acting in its capacity as trustee, agent or
         other fiduciary or administrator of any such plan) becomes the
         "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
         Securities Exchange Act of 1934, except that a person or group shall be
         deemed to have "beneficial ownership" of all Capital Stock that such
         person or group has the right to acquire (such right, an "option
         right"), whether such right is exercisable immediately or only after
         the passage of time), directly or indirectly, of thirty percent (30%)
         of the Capital Stock of the Borrower entitled to vote for members of
         the board of directors or equivalent governing body of the Borrower on
         a fully diluted basis (and taking into account all such securities that
         such person or group has the right to acquire pursuant to any option
         right); or

                  (b) during any period of 24 consecutive months, a majority of
         the members of the board of directors or other equivalent governing
         body of the Borrower cease to be composed of individuals (i) who were
         members of that board or equivalent governing body on the first day of
         such period, (ii) whose election or nomination to that board or
         equivalent governing body was approved by individuals referred to in
         clause (i) above constituting at the time of such election or
         nomination at least a majority of that board or equivalent governing
         body, or (iii) whose election or nomination to that board or other
         equivalent governing body was approved by individuals referred to in
         clauses (i) and (ii) above constituting at the time of such election or
         nomination at least a majority of that board or equivalent governing
         body (excluding, in the case of both clause (ii) and clause (iii), any
         individual whose initial nomination for, or assumption of office as, a
         member of that board or equivalent governing body occurs as a result of
         an actual or threatened solicitation of proxies or consents for the
         election or removal of one or more directors by any person or group
         other than a solicitation for the election of one or more directors by
         or on behalf of the board of directors); or

                  (c) the occurrence of a "Change of Control" (or any comparable
         term) under, and as defined in the documentation evidencing the
         Additional Permitted Indebtedness (other than (if such Additional
         Permitted Indebtedness is assumed) any Change of Control resulting from
         the applicable Permitted Acquisition pursuant to which such Additional
         Permitted Indebtedness is assumed); or

                  (d) the occurrence of a "Change of Control" (or any comparable
         term) under, and as defined in the documentation evidencing the
         Additional Subordinated Indebtedness.

         "Closing Date" means the date hereof.

         "CMS" means the Centers for Medicare and Medicaid Services of HHS, any
successor thereof and any predecessor thereof, including the United States
Health Care Financing Administration.

         "Collateral" means a collective reference to all Property with respect
to which Liens in favor of the Administrative Agent are purported to be granted
pursuant to and in accordance with the terms of the Collateral Documents.

                                       5
<PAGE>

         "Collateral Documents" means a collective reference to the Pledge
Agreement and any other security documents that may be executed and delivered by
the Loan Parties pursuant to the terms of Section 7.14.

         "Commitment" means, as to each Lender, the Revolving Commitment of such
Lender, the Term Loan Commitment of such Lender and/or the Incremental Term Loan
Commitment of such Lender.

         "Compliance Certificate" means a certificate substantially in the form
of Exhibit E.

         "Consolidated Adjusted EBITDAR" means, for any period, for the Borrower
and its Subsidiaries on a consolidated basis, an amount equal to the sum of (i)
Consolidated EBITDA for such period plus rent and lease expense for such period,
minus (ii) Consolidated Capital Expenditures for such period, minus (iii)
Consolidated Cash Taxes for such period, all as determined in accordance with
GAAP.

         "Consolidated Capital Expenditures" means, for any period, for the
Borrower and its Subsidiaries on a consolidated basis, all capital expenditures,
as determined in accordance with GAAP; provided, however, that Consolidated
Capital Expenditures shall not include (a) expenditures made with proceeds of
any Involuntary Disposition to the extent such expenditures are used to purchase
Property that is the same as or similar to the Property subject to such
Involuntary Disposition and (b) Permitted Acquisitions.

         "Consolidated Cash Taxes" means, for any period, for the Borrower and
its Subsidiaries on a consolidated basis, the aggregate of all taxes paid by the
Borrower or any of its Subsidiaries in cash during such period.

         "Consolidated EBITDA" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income
for such period plus the following, without duplication, to the extent deducted
in calculating such Consolidated Net Income: (a) Consolidated Interest Charges
for such period, (b) the provision for federal, state, local and foreign income
taxes payable by the Borrower and its Subsidiaries for such period, (c) the
amount of depreciation and amortization expense for such period (d) all non-cash
charges for such period, provided that the amount of non-cash charges arising
from the write-off of current assets and non-cash charges that require an
accrual of or reserves for cash charges for any future period shall not be
included in this subclause (d), (e) the amount of the deduction from
Consolidated Net Income taken to reflect income attributed to minority interests
(to the extent distributions are not required to be made and are not made in
respect thereof), (f)(i) any tender or call premium paid in connection with the
redemption of any Additional Permitted Indebtedness to the extent such
redemption is permitted hereunder and (ii) transaction costs (cash or non-cash)
incurred in connection with the performance of any tender or redemption of any
Additional Permitted Indebtedness to the extent such tender or redemption is
permitted hereunder, and (g) any write off of debt issuance costs and other
non-cash charges related to the redemption of any Additional Permitted
Indebtedness to the extent such redemption is permitted hereunder, all as
determined in accordance with GAAP.

         "Consolidated Fixed Charge Coverage Ratio" means, as of any date of
determination, the ratio of (a) the sum of (i) Consolidated Adjusted EBITDAR for
the period of the four fiscal quarters most recently ended for which the
Borrower has delivered financial statements pursuant to Section 7.01(a) or (b)
plus (ii) for any four fiscal quarter period ending after December 31, 2007
only, the amount of cash and Cash Equivalents on the balance sheet of the
Borrower and its Domestic Subsidiaries as of the date of determination to (b) an
amount equal to the sum of (i) Consolidated Fixed Charges for the period of the
four fiscal quarters most recently ended for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b) plus (ii)(A) for the
four quarter period ending June 30, 2004, Permitted Stock Repurchases for the
six month period ending June 30, 2004, (B) for the four quarter period ending

                                       6
<PAGE>

September 30, 2004, Permitted Stock Repurchases for the nine month period ending
September 30, 2004, and (C) for the four fiscal quarter period ending December
31, 2004 and for each four fiscal quarter period thereafter, Permitted Stock
Repurchases for such period, provided, however, (x) the first $150 million of
Permitted Stock Repurchases subsequent to December 31, 2003 will not be counted
as Permitted Stock Repurchases for purposes of calculating the Consolidated
Fixed Charge Coverage Ratio and (y) the amount of Permitted Stock Repurchases
included in this subclause (b) shall be net of proceeds for the applicable
period received by the Borrower from the exercise of stock options up to an
amount of the Permitted Stock Repurchases made in such period.

         "Consolidated Fixed Charges" means, without duplication, for any
period, for the Borrower and its Subsidiaries on a consolidated basis, an amount
equal to the sum of (i) the cash portion of Consolidated Interest Charges for
such period, plus (ii) Consolidated Scheduled Funded Debt Payments for such
period, plus (iii) rent and lease expense for such period, plus (iv) Permitted
Dividends made to Persons other than a Loan Party for such period, plus (v)
Permitted Stock Purchases for such period all as determined in accordance with
GAAP.

         "Consolidated Funded Indebtedness" means Funded Indebtedness of the
Borrower and its Subsidiaries on a consolidated basis determined in accordance
with GAAP.

         "Consolidated Interest Charges" means, for any period, for the Borrower
and its Subsidiaries on a consolidated basis, an amount equal to the sum of (i)
all interest, premium payments, debt discount, fees, charges and related
expenses of the Borrower and its Subsidiaries in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase
price of assets, in each case to the extent treated as interest expense in
accordance with GAAP, plus (ii) the portion of rent expense of the Borrower and
its Subsidiaries with respect to such period under Capital Leases that is
treated as interest expense in accordance with GAAP.

         "Consolidated Leverage Ratio" means, as of any date of determination,
the ratio of (a) Consolidated Funded Indebtedness as of such date to (b)
Consolidated EBITDA for the period of the four fiscal quarters most recently
ended for which the Borrower has delivered financial statements pursuant to
Section 7.01(a) or (b).

         "Consolidated Net Income" means, for any period, for the Borrower and
its Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries (excluding extraordinary gains and losses) for that period, as
determined in accordance with GAAP.

         "Consolidated Net Worth" means, as of any date of determination,
consolidated stockholders' equity of the Borrower and its Subsidiaries as of
that date determined in accordance with GAAP.

         "Consolidated Scheduled Funded Debt Payments" means for any period, for
the Borrower and its Subsidiaries on a consolidated basis, the sum of all
scheduled payments of principal on Consolidated Funded Indebtedness. For
purposes of this definition, "scheduled payments of principal" (a) shall be
deemed to include the Attributable Indebtedness in respect of Capital Leases and
Synthetic Leases, and (b) shall not include any voluntary prepayments or
mandatory prepayments required pursuant to Section 2.05.

         "Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

         "Control" has the meaning specified in the definition of "Affiliate."

                                       7
<PAGE>

         "Credit Extension" means each of the following: (a) a Borrowing and (b)
an L/C Credit Extension.

         "Debt Issuance" means the issuance by the Borrower or any Subsidiary of
any Indebtedness other than Indebtedness permitted under Section 8.03(b).

         "Debtor Relief Laws" means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

         "Default" means any event or condition that constitutes an Event of
Default or that, with the giving of any notice, the passage of time, or both,
would be an Event of Default.

         "Default Rate" means (a) when used with respect to Obligations other
than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus
(ii) the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2%
per annum; provided, however, that with respect to a Eurodollar Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate) otherwise applicable to such Loan plus 2% per annum, and (b)
when used with respect to Letter of Credit Fees, a rate equal to the Applicable
Rate plus 2% per annum, in all cases to the fullest extent permitted by
applicable Laws.

         "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Loans, participations in L/C Obligations or participations in
Swing Line Loans required to be funded by it hereunder within one Business Day
of the date required to be funded by it hereunder, (b) has otherwise failed to
pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

         "Disposition" or "Dispose" means the sale, transfer, license, lease or
other disposition (including any Sale and Leaseback Transaction) of any Property
(including the Capital Stock of any Subsidiary) by the Borrower or any
Subsidiary, including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith, but excluding (i) the sale, lease, license, transfer or
other disposition of inventory in the ordinary course of the Businesses, (ii)
the sale, lease, license, transfer or other disposition of machinery and
equipment no longer used or useful in the conduct of the Businesses, (iii) any
sale, lease, license, transfer or other disposition of Property by the Borrower
or any Subsidiary to any Loan Party, provided that the Loan Parties shall cause
to be executed and delivered such documents, instruments and certificates as the
Administrative Agent may request so as to cause the Loan Parties to be in
compliance with the terms of Section 7.14 after giving effect to such
transaction, (iv) any Involuntary Disposition by the Borrower or any Subsidiary,
(v) any Disposition by the Borrower or any Subsidiary to the extent constituting
a Permitted Investment and (vi) any sale, lease, license, transfer or other
disposition of Property by any Foreign Subsidiary to another Foreign Subsidiary.

         "Dollar" and "$" mean lawful money of the United States.

         "Domestic Subsidiary" means any Subsidiary that is organized under the
laws of any political subdivision of the United States.

         "Earn Out Obligations" means, with respect to an Acquisition, all
obligations of the Borrower or any Subsidiary to make earn out or other
contingent payments pursuant to the documentation relating to

                                       8
<PAGE>

such Acquisition. The amount of any Earn Out Obligation shall be deemed to be
the aggregate liability in respect thereof as recorded on the balance sheet of
the Borrower and its Subsidiaries in accordance with GAAP.

         "Eligible Assets" means Property that is used or useful in the same or
a similar line of business as the Borrower and its Subsidiaries were engaged in
on the Closing Date (or any reasonable extensions or expansions thereof).

         "Eligible Assignee" has the meaning specified in Section 11.07(g).

         "Environmental Laws" means any and all federal, state, local, foreign
and other applicable statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements
or governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

         "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower, any other Loan Party or any of their
respective Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment, or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

         "Equity Issuance" means any issuance by the Borrower or any Subsidiary
to any Person of shares of its Capital Stock, other than (a) any issuance of
shares of its Capital Stock pursuant to the exercise of options or warrants, (b)
any issuance of shares of its Capital Stock pursuant to the conversion of any
debt securities to equity or the conversion of any class equity securities to
any other class of equity securities, (c) any issuance of options or warrants
relating to its Capital Stock, and (d) any issuance by the Borrower of shares of
its Capital Stock as consideration for a Permitted Acquisition. The term "Equity
Issuance" shall not be deemed to include any Disposition.

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

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o)
of the Internal Revenue Code for purposes of provisions relating to Section 412
of the Internal Revenue Code).

         "ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition that constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of

                                       9
<PAGE>

any liability to the PBGC under Title IV of ERISA, other than for PBGC premiums
due but not delinquent under Section 4007 of ERISA, upon the Borrower or any
ERISA Affiliate.

         "Eurodollar Base Rate" means, for any Interest Period with respect to a
Eurodollar Rate Loan:

                  (a) the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate that appears on the page of
         the Telerate screen (or any successor thereto) that displays an average
         British Bankers Association Interest Settlement Rate for deposits in
         Dollars (for delivery on the first day of such Interest Period) with a
         term equivalent to such Interest Period, determined as of approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                  (b) if the rate referenced in the preceding clause (a) does
         not appear on such page or service or such page or service shall not be
         available, the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate on such other page or other
         service that displays an average British Bankers Association Interest
         Settlement Rate for deposits in Dollars (for delivery on the first day
         of such Interest Period) with a term equivalent to such Interest
         Period, determined as of approximately 11:00 a.m. (London time) two
         Business Days prior to the first day of such Interest Period, or

                  (c) if the rates referenced in the preceding clauses (a) and
         (b) are not available, the rate per annum (rounded upward to the next
         1/100th of 1%) determined by the Administrative Agent as the rate of
         interest at which deposits in Dollars for delivery on the first day of
         such Interest Period in same day funds in the approximate amount of the
         Eurodollar Rate Loan being made, continued or converted by Bank of
         America and with a term equivalent to such Interest Period would be
         offered by Bank of America's London Branch to major banks in the London
         interbank eurodollar market at their request at approximately 4:00 p.m.
         (London time) two Business Days prior to the first day of such Interest
         Period.

         "Eurodollar Rate" means for any Interest Period with respect to any
Eurodollar Rate Loan, a rate per annum determined by the Administrative Agent to
be equal to the quotient obtained by dividing (a) the Eurodollar Base Rate for
such Eurodollar Loan for such Interest Period by (b) one minus the Eurodollar
Reserve Percentage for such Eurodollar Loan for such Interest Period.

         "Eurodollar Rate Loan" means a Loan that bears interest at a rate based
on the Eurodollar Rate.

         "Eurodollar Reserve Percentage" means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, carried out to five
decimal places) in effect on such day, whether or not applicable to any Lender,
under regulations issued from time to time by the FRB for determining the
maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurodollar funding (currently
referred to as "Eurocurrency liabilities"). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of the
effective date of any change in the Eurodollar Reserve Percentage.

         "Event of Default" has the meaning specified in Section 9.01.

         "Excluded Subsidiary" means each JV Subsidiary of the Borrower that
does not guarantee the Indebtedness of the Loan Parties hereunder.

         "Exclusion Event" means an event or events resulting in the exclusion
of any of the Borrower or any of its Subsidiaries from participation in
Medicare, Medicaid, TRICARE programs or any other health

                                       10
<PAGE>

care program operated by or financed in whole or in part by any foreign or
domestic federal, state or local government.

         "Existing Letters of Credit" means the letters of credit described by
date of issuance, letter of credit number, undrawn amount, name of beneficiary
and date of expiry on Schedule 1.01.

         "Facilities" means, at any time, a collective reference to the
facilities and real properties owned, leased or operated by the Borrower or any
Subsidiary.

         "Federal Funds Rate" means, for any day, the rate per annum equal to
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided that (a) if such day is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of
America on such day on such transactions as determined by the Administrative
Agent.

         "Fee Letter" means the letter agreement, dated January 28, 2004 among
the Borrower, the Administrative Agent and BAS.

         "Foreign Lender" has the meaning specified in Section 11.15(a)(i).

         "Foreign Subsidiary" means any Subsidiary that is not a Domestic
Subsidiary.

         "FRB" means the Board of Governors of the Federal Reserve System of the
United States.

         "Fraud and Abuse Laws" means Section 1128B(b) of the Social Security
Act (42 U.S.C. Section 1320a-7b(b)) (known as the "Anti-Kickback Statute") and
Section 1877 of the Social Security Act (42 U.S.C. Section 1395nn) (known as the
"Stark law"), as from time to time amended; any successor statute(s) thereto,
all rules and regulations promulgated thereunder; and any other Laws relating to
the referral of patients to medical facilities owned by providers of medical
services.

         "Funded Indebtedness" means, as to any Person at a particular time,
without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP:

                  (a) all obligations for borrowed money, whether current or
         long-term (including the Obligations) and all obligations of such
         Person evidenced by bonds, debentures, notes, loan agreements or other
         similar instruments;

                  (b) all purchase money Indebtedness;

                  (c) all obligations arising under letters of credit (including
         standby and commercial), bankers' acceptances, bank guaranties, surety
         bonds and similar instruments;

                  (d) all obligations in respect of the deferred purchase price
         of property or services (other than trade accounts payable in the
         ordinary course of business), including without limitation, any Earn
         Out Obligations;

                  (e) the Attributable Indebtedness of Capital Leases and
         Synthetic Leases;

                                       11
<PAGE>

                  (f) the Attributable Indebtedness of Securitization
         Transactions;

                  (g) all preferred stock or other equity interests providing
         for mandatory redemptions, sinking fund or like payments prior to the
         Maturity Date;

                  (h) all Guarantees with respect to Indebtedness of the types
         specified in clauses (a) through (g) above of another Person; and

                  (i) all Indebtedness of the types referred to in clauses (a)
         through (h) above of any partnership or joint venture (other than a
         joint venture that is itself a corporation or limited liability
         company) in which such Person is a general partner or joint venturer,
         to the extent such Indebtedness is recourse to such Person.

         For purposes hereof, (x) the amount of any direct obligation arising
         under letters of credit (including standby and commercial), bankers'
         acceptances, bank guaranties, surety bonds and similar instruments
         shall be the maximum amount available to be drawn thereunder and (y)
         the amount of any Guarantee shall be the amount of the Indebtedness
         subject to such Guarantee.

         "GAAP" means generally accepted accounting principles in the United
States set forth in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board, consistently
applied.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

         "Guarantee" means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation payable or performable by
another Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guaranteeing Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation of the primary obligor, (ii)
to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the
payment or performance of such Indebtedness or other obligation, (iii) to
maintain working capital, equity capital or any other financial statement
condition or liquidity or level of income or cash flow of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation,
or (iv) entered into for the purpose of assuring in any other manner the obligee
in respect of such Indebtedness or other obligation of the payment or
performance thereof or to protect such obligee against loss in respect thereof
(in whole or in part), or (b) any Lien on any assets of the guaranteeing Person
securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person. The amount
of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term "Guarantee" as a verb has a
corresponding meaning.

                                       12
<PAGE>

         "Guarantors" means each wholly-owned Domestic Subsidiary of the
Borrower and each other Person that joins as a Guarantor pursuant to Section
7.12, and, at the option of the Borrower, any other Subsidiary that joins as a
Guarantor, together with their successors and permitted assigns.

         "Guaranty" means the Guaranty made by the Guarantors in favor of the
Administrative Agent and the Lenders pursuant to Article IV hereof.

         "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos-containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

         "HHS" means the United States Department of Health and Human Services
and any successor thereof.

         "HIPAA" means the Health Insurance Portability and Accountability Act
of 1996, Pub. L. 104-191, Aug. 21, 1996, 110 Stat. 1936, and any and all final
rules and regulations issued thereunder, as such final rules and regulations
become effective in accordance with its or their terms, as the case may be.

         "Honor Date" has the meaning set forth in Section 2.03(c).

         "Incremental Term Loan" has the meaning set forth in Section 2.01(c).

         "Incremental Term Loan Borrowing Date" means any Business Day on which
Incremental Term Loans are incurred pursuant to Section 2.01(c), which dates
shall not occur after the Maturity Date.

         "Incremental Term Loan Commitment" means, as to each Lender, any
commitment to make Incremental Term Loans provided by such Lender pursuant to
Section 2.01(c), in such amount as agreed to by such Lender in the respective
Incremental Term Loan Commitment Agreement and as set forth opposite such
Lender's name in Schedule 2.01 (as modified from time to time in accordance with
Section 2.01(e)) directly below the column entitled "Incremental Term Loan
Commitment" as the same may be terminated or reduced from time to time pursuant
to Section 2.05.

         "Incremental Term Loan Commitment Agreement" means and includes each
Incremental Term Loan Commitment Agreement substantially in the form of Exhibit
D executed in accordance with Section 2.01(d).

         "Incremental Term Loan Lender" has the meaning specified in Section
2.01(e).

         "Incremental Term Note" has the meaning specified in Section 2.11(a).

         "Indebtedness" means, as to any Person at a particular time, without
duplication, all of the following, whether or not included as indebtedness or
liabilities in accordance with GAAP:

                  (a) all Funded Indebtedness;

                  (b) net obligations under any Swap Contract;

                  (c) all Guarantees with respect to outstanding Indebtedness of
         the types specified in clauses (a) and (b) above of any other Person;
         and

                                       13
<PAGE>

                  (d) all Indebtedness of the types referred to in clauses (a)
         through (c) above of any partnership or joint venture (other than a
         joint venture that is itself a corporation or limited liability
         company) in which the Borrower or a Subsidiary is a general partner or
         joint venturer, to the extent such Indebtedness is recourse to the
         Borrower or such Subsidiary.

         For purposes hereof (y) the amount of any net obligation under any Swap
         Contract on any date shall be deemed to be the Swap Termination Value
         thereof as of such date, and (z) the amount of any Guarantee shall be
         the amount of the Indebtedness subject to such Guarantee.

         "Indemnified Liabilities" has the meaning specified in Section 11.05.

         "Indemnitees" has the meaning specified in Section 11.05.

         "Interest Payment Date" means (a) as to any Loan other than a Base Rate
Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan),
the last Business Day of each March, June, September and December and the
Maturity Date.

         "Interest Period" means, as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan and ending on the date one, two, three, six
or, if available to all of the Lenders, twelve months thereafter, as selected by
the Borrower in its Loan Notice; provided that:

                           (i) any Interest Period that would otherwise end on a
                  day that is not a Business Day shall be extended to the next
                  succeeding Business Day unless such Business Day falls in
                  another calendar month, in which case such Interest Period
                  shall end on the next preceding Business Day;

                           (ii) any Interest Period that begins on the last
                  Business Day of a calendar month (or on a day for which there
                  is no numerically corresponding day in the calendar month at
                  the end of such Interest Period) shall end on the last
                  Business Day of the calendar month at the end of such Interest
                  Period; and

                           (iii) no Interest Period shall extend beyond the
                  Maturity Date.

         "Interim Financial Statements" has the meaning set forth in Section
5.01(c).

         "Internal Revenue Code" means the Internal Revenue Code of 1986, and
any successor statute(s).

         "Investment" means, as to any Person, any direct or indirect
acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition of Capital Stock of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person, or (c) an Acquisition. For purposes of covenant compliance, the
amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such
Investment.

         "Involuntary Disposition" means any loss of, damage to or destruction
of, or any condemnation or other taking for public use of, any Property of the
Borrower or any of its Subsidiaries.

                                       14
<PAGE>

         "IP Rights" has the meaning set forth in Section 6.17.

         "IRS" means the United States Internal Revenue Service, and any
successor thereof.

         "ISP" means, with respect to any standby Letter of Credit, the
"International Standby Practices 1998" published by the Institute of
International Banking Law & Practice (or such later version thereof as may be in
effect at the time of issuance).

         "Issuer Documents" means with respect to any Letter of Credit, the
Letter Credit Application and any other document, agreement and instrument
entered into by the applicable L/C Issuer and the Borrower or any Subsidiary) or
in favor of such L/C Issuer and relating to any such Letter of Credit.

         "Joinder Agreement" means a joinder agreement substantially in the form
of Exhibit G executed and delivered by a Domestic Subsidiary in accordance with
the provisions of Section 7.12.

         "JV Subsidiary" means a Subsidiary that is owned in part by any Person
other than the Borrower or a Wholly Owned Subsidiary of the Borrower.

         "Laws" means, collectively, all international, foreign, federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

         "L/C Advance" means, with respect to each Lender, such Lender's funding
of its participation in any L/C Borrowing in accordance with its Pro Rata Share.

         "L/C Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Borrowing of Revolving Loans.

         "L/C Credit Extension" means, with respect to any Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the increase of the
amount thereof.

         "L/C Issuers" means (a) Bank of America in its capacity as issuer of
Letters of Credit hereunder, (b) any other Lender holding a Revolving Commitment
hereunder who has been selected by the Borrower and who has agreed to be an L/C
Issuer hereunder in accordance with the terms hereof or (c) any successor issuer
of Letters of Credit hereunder, and "L/C Issuer" means any one of them.

         "L/C Obligations" means, as of any date of determination, the aggregate
undrawn amount of all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For all purposes of this
Agreement, if as of any date of determination a Letter of Credit has expired by
its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be
"outstanding" in the amount that remains available to be drawn.

         "Lenders" means each of the Persons identified as a "Lender" on the
signature pages hereto and their successors and assigns and, as the context
requires, includes the L/C Issuers and the Swing Line Lender.

                                       15
<PAGE>

         "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such in such Lender's Administrative Questionnaire, or such
other office or offices as a Lender may from time to time notify the Borrower
and the Administrative Agent.

         "Letter of Credit" means (a) any letter of credit issued hereunder and
(b) any Existing Letter of Credit. A Letter of Credit may be a commercial letter
of credit or a standby letter of credit.

         "Letter of Credit Application" means an application and agreement for
the issuance or amendment of a letter of credit in the form from time to time in
use by the applicable L/C Issuer.

         "Letter of Credit Expiration Date" means the day that is thirty days
prior to the Maturity Date then in effect (or, if such day is not a Business
Day, the next preceding Business Day).

         "Letter of Credit Fee" has the meaning specified in Section 2.03(i).

         "Letter of Credit Sublimit" means an amount equal to the lesser of (a)
the Aggregate Revolving Commitments and (b) $20,000,000. The Letter of Credit
Sublimit is part of, and not in addition to, the Aggregate Revolving
Commitments.

         "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference,
priority or other security interest or preferential arrangement in the nature of
a security interest of any kind or nature whatsoever (including any conditional
sale or other title retention agreement, and any financing lease having
substantially the same economic effect as any of the foregoing).

         "Loan" means an extension of credit by a Lender to the Borrower under
Article II in the form of a Revolving Loan, Swing Line Loan, Term Loan or
Incremental Term Loan.

         "Loan Documents" means this Agreement, each Note, each Letter of
Credit, each Letter of Credit Application, each Joinder Agreement, each
Incremental Term Loan Commitment Agreement, the Collateral Documents, each
Issuer Document, each Request for Credit Extension, each Compliance Certificate,
the Fee Letter and each other document, instrument or agreement from time to
time executed by the Borrower or any of its Subsidiaries or any Responsible
Officer thereof and delivered in connection with this Agreement.

         "Loan Notice" means a notice of (a) a Borrowing of Revolving Loans, the
Term Loan or Incremental Term Loans, (b) a conversion of Loans from one Type to
the other, or (c) a continuation of Eurodollar Rate Loans. Such notice will be
given as contemplated by Section 2.02(a), and, if in writing, shall be
substantially in the form of Exhibit B.

         "Loan Parties" means, collectively, the Borrower and each Guarantor.

         "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities
(actual or contingent), condition (financial or otherwise) or prospects of the
Borrower and its Subsidiaries taken as a whole; (b) an impairment of the ability
of any Loan Party to perform its material obligations under any Loan Document to
which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan
Document to which it is a party.

                                       16
<PAGE>

         "Maturity Date" means (a) with respect to all Loans other than the
Incremental Term Loans, February 10, 2009 and (b) with respect to any
Incremental Term Loan the maturity date for such Incremental Term Loan set forth
in the Incremental Term Loan Commitment Agreement relating thereto.

         "Medicaid" means that means-tested entitlement program under Title XIX
of the Social Security Act, which provides federal grants to states for medical
assistance based on specific eligibility criteria, as set forth at Section 1396,
et seq. of Title 42 of the United States Code, as amended, and any successor
statute thereto.

         "Medicaid Provider Agreement" means an agreement entered into between a
state agency or other entity administering the Medicaid program and a health
care provider or supplier, under which the health care provider or supplier
agrees to provide services for Medicaid patients in accordance with the terms of
the agreement and Medicaid Regulations.

         "Medicaid Regulations" means, collectively, (a) all federal statutes
(whether set forth in Title XIX of the Social Security Act or elsewhere)
affecting Medicaid and any successor statutes thereto; (b) all applicable
provisions of all federal rules, regulation manuals and orders of all
Governmental Authorities promulgated pursuant to or in connection with the
statutes described in clause (a) above and all federal administrative,
reimbursement and other guidelines of all Governmental Authorities having the
force of law promulgated pursuant to or in connection with the statutes
described in clause (a) above; (c) all state statutes and plans for medical
assistance enacted in connection with the statutes and provisions described in
clauses (a) and (b) above; and (d) all applicable provisions of all rules,
regulations, manuals and orders of all Governmental Authorities promulgated
pursuant to or in connection with the statutes described in clause (c) above and
all state administrative, reimbursement and other guidelines of all Governmental
Authorities having the force of law promulgated pursuant to or in connection
with the statutes described in clause (b) above, in each case as may be amended,
supplemented or otherwise modified from time to time.

         "Medical Reimbursement Programs" means a collective reference to the
Medicare, Medicaid and TRICARE programs and any other health care program
operated by or financed in whole or in part by any foreign or domestic federal,
state or local government and any other non-government funded third-party payor
programs.

         "Medicare" means that government-sponsored entitlement program under
Title XVIII of the Social Security Act, which provides for a health insurance
system for eligible elderly and disabled individuals, as set forth at Section
1395, et seq. of Title 42 of the United States Code, as amended, and any
successor statute thereto.

         "Medicare Provider Agreement" means an agreement entered into between
CMS (or an entity administering the Medicare program on behalf of the CMS) and a
health care provider or supplier, under which agreement the health care provider
or supplier agrees to provide services for Medicare patients in accordance with
the terms of the agreement and Medicare Regulations.

         "Medicare Regulations" means, collectively, all federal statutes
(whether set forth in Title XVIII of the Social Security Act or elsewhere)
affecting Medicare and any successor statutes thereto; together with all
applicable provisions of all rules, regulations, manuals and orders and
administrative, reimbursement and other guidelines having the force of law of
all Governmental Authorities (including CMS, the OIG, HHS, or any person
succeeding to the functions of any of the foregoing) promulgated pursuant to or
in connection with any of the foregoing having the force of law, as each may be
amended, supplemented or otherwise modified from time to time.

                                       17
<PAGE>

         "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

         "Multiemployer Plan" means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA
Affiliate makes or is obligated to make contributions, or during the preceding
five plan years, has made or been obligated to make contributions.

         "Net Cash Proceeds" means the aggregate proceeds received in cash or
Cash Equivalents by the Borrower or any Subsidiary in respect of any
Disposition, Debt Issuance, Equity Issuance or Involuntary Disposition, net of
(a) direct costs incurred in connection therewith (including, without
limitation, legal, accounting and investment banking fees, and sales
commissions, but only to the extent incurred by a Person that is not an
Affiliate of the Borrower), (b) taxes paid or payable as a result thereof, and
(c) in the case of any Disposition, the amount necessary to retire any
Indebtedness secured by a Permitted Lien (ranking senior to any Lien of the
Administrative Agent) on the related Property; it being understood that "Net
Cash Proceeds" shall include, without limitation, any cash or Cash Equivalents
received upon the sale or other disposition of any non-cash consideration
received by the Borrower or any Subsidiary in any Disposition, Debt Issuance or
Involuntary Disposition; provided, however, that if in connection with a
Disposition (other than any Sale and Leaseback Transaction) or Involuntary
Disposition (x) the Borrower shall deliver (A) a certificate of a Responsible
Officer to the Administrative Agent at the time of receipt thereof setting forth
the Borrower's intention to reinvest such proceeds in productive assets of a
kind then used or usable in the Businesses (including assets acquired in a
Permitted Acquisition) within 180 days of receipt of such proceeds and (y) no
Default or Event of Default shall have occurred and shall be continuing at the
time of such certificate or at the time such proceeds are contractually
committed to be used, such proceeds shall not constitute Net Cash Proceeds
except to the extent not so used or contractually committed to be used at the
end of such 180-day period, at which time such proceeds shall be deemed to be
Net Cash Proceeds.

         "Non-Opinion Subsidiaries" means those wholly owned Domestic
Subsidiaries of the Borrower for which the Administrative Agent has not received
a legal opinion (in form and substance reasonably satisfactory to the
Administrative Agent) from outside counsel to the Loan Parties, and "Non-Opinion
Subsidiary" means any one of them.

         "Note" or "Notes" means the Revolving Notes, the Swing Line Note, the
Term Notes and/or the Incremental Term Notes, individually or collectively, as
appropriate.

         "Obligations" means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against any
Loan Party of any proceeding under any Debtor Relief Laws naming such Person as
the debtor in such proceeding, regardless of whether such interest and fees are
allowed claims in such proceeding. Obligations shall also include any Swap
Contract between any Loan Party and any Lender or Affiliate of a Lender.

         "OIG" means the Office of Inspector General of the U.S. Department of
Health and Human Services or any other regulatory body succeeding to the
functions thereof.

         "Organization Documents" means, (a) with respect to any corporation,
the certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of

                                       18
<PAGE>

formation or organization and any agreement, instrument, filing or notice with
respect thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

         "Outstanding Amount" means (i) with respect to any Loans on any date,
the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of any Loans occurring on such date;
and (ii) with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in the
maximum amount available for drawing under Letters of Credit taking effect on
such date.

         "Participant" has the meaning specified in Section 11.07(d).

         "PBGC" means the Pension Benefit Guaranty Corporation.

         "Pension Plan" means any "employee pension benefit plan" (as such term
is defined in Section 3(2) of ERISA), that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which
the Borrower or any ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in
Section 4064(a) of ERISA, has made contributions at any time during the
immediately preceding five plan years, which plan is not a Multiemployer Plan.

         "Permitted Acquisition" means an Acquisition by any Loan Party,
provided that (i) the Property acquired (or the Property of the Person acquired)
in such Acquisition is used or useful in the same or a similar line of business
(or any reasonable extensions or expansions thereof) as the Borrower and its
Subsidiaries were engaged in on the Closing Date, (ii) no Default or Event of
Default shall exist immediately prior to or after giving effect to such
Acquisition, (iii) promptly, and in any event not later than thirty (30) days,
following the consummation of such Acquisition, the Administrative Agent shall
have received all items in respect of the Capital Stock acquired in such
Acquisition required to be delivered by the terms of Section 7.12 and/or Section
7.14, (iv) in the case of an Acquisition of the Capital Stock of another Person,
the board of directors (or other comparable governing body) of such other Person
shall have duly approved such Acquisition, (v) within fifteen (15) days after
the date of closing of any such Acquisition, the Borrower shall have delivered
to the Administrative Agent a Pro Forma Compliance Certificate demonstrating
that, upon giving effect to such Acquisition on a Pro Forma Basis (a) the
Consolidated Leverage Ratio would not exceed 2.25 to 1.0 and (b) the Loan
Parties would be in compliance with the financial covenants set forth in Section
8.11 as of the most recent fiscal quarter for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b), (vi) with respect to
any single Acquisition for which the cash and non-cash consideration (including
without limitation, any Indebtedness issued to finance any such Acquisition, any
Capital Stock issued to finance any such Acquisition and any assumption of
liabilities) exceeds $20,000,000, within fifteen (15) days after the date of
closing of such Acquisition, the Borrower shall provide the Lenders with (a) a
description of the operating profile of the target, (b) a description of the
terms of the Acquisition (including, but not limited to, the purchase price and
method and structure of payment thereof), and (c) historical financial
statements of the target for the most recent two fiscal years and for any
subsequent interim periods, (vii) the representations and warranties made by the
Loan Parties in any Loan Document shall be true and correct in all material
respects at and as if made as of the date of such Acquisition (after giving
effect thereto) except to the extent such representations and warranties
expressly relate to an earlier date, (viii) in the case of an Acquisition of the
Capital Stock of another Person that will become an Excluded

                                       19
<PAGE>

Subsidiary or will own directly or indirectly an Excluded Subsidiary, after
giving effect to such Acquisition on a Pro Forma Basis, the aggregate amount of
Consolidated EBITDA attributable to Excluded Subsidiaries that are created or
acquired (directly or indirectly) subsequent to the Closing Date shall not
exceed ten percent (10%) of Consolidated EBITDA and (ix) a Loan Party may only
incur and/or assume Indebtedness permitted under Section 8.03(f) hereof in
connection with such Acquisition. Notwithstanding the foregoing, the Borrower
may make Acquisitions, in addition to those permitted above, despite the fact
that the Consolidated Leverage Ratio would exceed 2.25 to 1.0 after giving
effect to such Acquisition on a Pro Forma Basis; provided that (x) after giving
effect to any such Acquisition, the aggregate consideration (including cash and
non-cash consideration, any assumption of Indebtedness, deferred purchase price
and any Earn Out Obligations) for all such Acquisitions in any fiscal year would
not exceed $50,000,000 in the aggregate, (y) the Loan Parties would be in
compliance with the financial covenants set forth in Section 8.11 as of the most
recent fiscal quarter for which the Borrower has delivered financial statements
pursuant to Section 7.01(a) or (b), as applicable, and (z) that the provisions
of clauses (i), (ii), (iii), (iv), (vi), (vii) and (viii) above are also
satisfied.

         "Permitted Dividends" means dividends or distributions by any
Subsidiary of the Borrower which is not a Wholly Owned Subsidiary to
shareholders, members or partners of such Subsidiary; provided, that, such
dividends or distributions are (a) made by such Subsidiary with cash on the
balance sheet of such Subsidiary or (b) made with proceeds received from the
sale of the Capital Stock of such Subsidiary or all or substantially all of the
assets of such Subsidiary in accordance with the terms of Section 8.05.

         "Permitted Equity Investment" means (a) any equity interest owned
directly by the Borrower or any Subsidiary of the Borrower in any Person that is
not a Subsidiary of the Borrower as of the Closing Date and (b) any capital
contribution, purchase or other acquisition of Capital Stock not constituting a
Permitted Acquisition by the Borrower or a Subsidiary of the Borrower in any
Person that is not the Borrower or a Subsidiary of the Borrower subsequent to
the Closing Date; provided, that in the case of this subclause (b), (i) such
Person is engaged only in activities included in the Borrower's line of business
and (ii) the aggregate capital contributions, purchases or other acquisitions of
Capital Stock not constituting a Permitted Acquisition made in any fiscal year,
by the Borrower or a Subsidiary of the Borrower in Persons that are not the
Borrower or a Subsidiary of the Borrower pursuant to this subclause (b) in such
fiscal year shall not exceed $25,000,000.

         "Permitted Investments" means, at any time, Investments by the Borrower
or any of its Subsidiaries permitted to exist at such time pursuant to the terms
of Section 8.02.

         "Permitted Liens" means, at any time, Liens in respect of Property of
the Borrower or any of its Subsidiaries permitted to exist at such time pursuant
to the terms of Section 8.01.

         "Permitted Stock Purchases" means (a) any purchase of the Capital Stock
of any Subsidiary of the Borrower which is not a Wholly Owned Subsidiary in an
aggregate amount not to exceed $25,000,000 in any fiscal year and (b) any
purchase of the Capital Stock of any Subsidiary which is not a Wholly Owned
Subsidiary of the Borrower; provided that (i) immediately after giving effect to
such purchase, such Subsidiary shall be a Wholly Owned Subsidiary of the
Borrower and (ii) the Borrower complies with the applicable terms of Section
7.12 and Section 7.14 with respect to such new Wholly Owned Subsidiary of the
Borrower.

         "Permitted Stock Repurchases" means those repurchases of Capital Stock
by the Borrower permitted by Section 8.06.

         "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

                                       20
<PAGE>

         "Plan" means any "employee benefit plan" (as such term is defined in
Section 3(3) of ERISA) established by the Borrower or, with respect to any such
plan that is subject to Section 412 of the Internal Revenue Code or Title IV of
ERISA, any ERISA Affiliate.

         "Pledge Agreement" means the pledge agreement dated as of the Closing
Date executed in favor of the Administrative Agent by each of the Loan Parties,
as amended, modified, restated or supplemented from time to time.

         "Practice" means a nephrology medical practice.

         "Pro Forma Basis" means, for purposes of calculating the financial
covenants set forth in Section 8.11 (including for purposes of determining the
Applicable Rate) or any applicable incurrence test hereunder, that any
Disposition, Involuntary Disposition, Acquisition or Investment in an Excluded
Subsidiary and the incurrence of any Incremental Term Loan or Additional
Permitted Indebtedness shall be deemed to have occurred as of the first day of
the most recent four fiscal quarter period preceding the date of such
transaction for which the Borrower has delivered financial statements pursuant
to Section 7.01(a) or (b). In connection with the foregoing, (a) with respect to
any Disposition or Involuntary Disposition, (i) income statement and cash flow
statement items (whether positive or negative) attributable to the Property
disposed of shall be excluded to the extent relating to any period occurring
prior to the date of such transaction and (ii) Indebtedness which is retired
shall be excluded and deemed to have been retired as of the first day of the
applicable period and (b) with respect to any Acquisition (i) income statement
items (whether positive or negative) attributable to the Person or Property
acquired shall be included to the extent relating to any period applicable in
such calculations to the extent (A) such items are not otherwise included in
such income statement items for the Borrower and its Subsidiaries in accordance
with GAAP or in accordance with any defined terms set forth in Section 1.01 and
(B) such items are supported by audited financial statements or other
information reasonably satisfactory to the Administrative Agent and (ii) any
Indebtedness incurred or assumed by the Borrower or any Subsidiary (including
the Person or Property acquired) in connection with such transaction and any
Indebtedness of the Person or Property acquired which is not retired in
connection with such transaction (A) shall be deemed to have been incurred as of
the first day of the applicable period and (B) if such Indebtedness has a
floating or formula rate, shall have an implied rate of interest for the
applicable period for purposes of this definition determined by utilizing the
rate which is or would be in effect with respect to such Indebtedness as at the
relevant date of determination. Furthermore, pro forma calculations of
Consolidated EBITDA shall not give effect to any add backs for cost savings
and/or increases to Consolidated EBITDA for any applicable period for all
Acquisitions, except (x) in cases where such add backs are made in accordance
with the requirements of Regulation S-X promulgated under the Securities Act of
1933, as amended and (y) for such add backs for cost savings and/or increases to
Consolidated EBITDA that are based on reasonable management estimates,
determined in good faith and supported by details satisfactory to the
Administrative Agent; provided that such add backs pursuant to this subclause
(y) shall not exceed $20 million in the aggregate during the term of this
Agreement.

         "Pro Forma Compliance Certificate" means a certificate of a Responsible
Officer of the Borrower containing reasonably detailed calculations of the
financial covenants set forth in Section 8.11 as of the most recent fiscal
quarter end for which the Borrower has delivered financial statements pursuant
to Section 7.01(a) or (b) after giving effect to the applicable transaction on a
Pro Forma Basis.

         "Pro Rata Share" means, as to each Lender at any time, (a) with respect
to such Lender's Revolving Commitment at any time, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the amount of the Revolving Commitment of such Lender at such time and the
denominator of which is the amount of the Aggregate Revolving Commitments at
such

                                       21
<PAGE>

time; provided that if the commitment of each Lender to make Revolving Loans and
the obligation of the L/C Issuers to make L/C Credit Extensions have been
terminated pursuant to Section 9.02, then the Pro Rata Share of each Lender
shall be determined based on the Pro Rata Share of such Lender immediately prior
to such termination and after giving effect to any subsequent assignments made
pursuant to the terms hereof, (b) with respect to such Lender's outstanding Term
Loan at any time, a fraction (expressed as a percentage, carried out to the
ninth decimal place), the numerator of which is the principal amount of the Term
Loan held by such Lender at such time and the denominator of which is the
aggregate principal amount of the Term Loan at such time, and (c) with respect
to such Lender's outstanding Incremental Term Loans at any time, a fraction
(expressed as a percentage carried out to the ninth decimal place), the
numerator of which is the principal amount of the Incremental Term Loans held by
such Lender at such time and the denominator of which is the aggregate
Incremental Term Loans at such time. The initial Pro Rata Share of each Lender
is set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable.

         "Property" means any interest of any kind in any property or asset,
whether real, personal or mixed, or tangible or intangible.

         "Provider" means a nephrologist who performs professional services
respecting a Practice that is either managed by a Loan Party or the assets of
which are owned by a Loan Party.

         "Register" has the meaning specified in Section 11.07(c).

         "Replacement Lender" has the meaning specified in Section 11.01.

         "Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the thirty-day notice period has been
waived.

         "Request for Credit Extension" means (a) with respect to a Borrowing,
conversion or continuation of Loans, a Loan Notice, (b) with respect to an L/C
Credit Extension, a Letter of Credit Application, and (c) with respect to a
Swing Line Loan, a Swing Line Loan Notice.

         "Required Lenders" means, at any time, Lenders holding in the aggregate
more than fifty percent (50%) of (a) the Revolving Commitments, the outstanding
Term Loan (and during the Availability Period with respect to Term Loans,
without duplication, the Term Loan Commitments, if any) and the outstanding
Incremental Term Loans, or (b) if the Revolving Commitments have been
terminated, the outstanding Loans, L/C Obligations, Swing Line Loans and
participations therein. The Revolving Commitments and Term Loan Commitments of,
and the outstanding Term Loan and Incremental Term Loan held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination
of Required Lenders.

         "Required Revolving Lenders" means, at any time, Lenders holding in the
aggregate more than fifty percent (50%) of (a) the sum of the Revolving
Commitments, or (b) if the Revolving Commitments have been terminated, the
outstanding Revolving Loans, L/C Obligations, Swing Line Loans and
participations therein. The Revolving Commitments of any Defaulting Lender shall
be excluded for purposes of making a determination of Required Revolving
Lenders.

         "Responsible Officer" means the chief executive officer, president or
chief financial officer of a Loan Party. Any document delivered hereunder that
is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed to have been authorized by all necessary corporate, partnership and/or
other action on the part of such Loan Party, and such Responsible Officer shall
be conclusively presumed to have acted on behalf of such Loan Party.

                                       22
<PAGE>

         "Restricted Payment" means any dividend or other distribution (whether
in cash, securities or other property) with respect to any Capital Stock of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Capital Stock or of any option, warrant or other right to acquire any
such Capital Stock.

         "Revolving Commitment" means, as to each Lender, its obligation to (a)
make Revolving Loans to the Borrower pursuant to Section 2.01, (b) purchase
participations in L/C Obligations, and (c) purchase participations in Swing Line
Loans, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender's name on Schedule 2.01 or in
the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

         "Revolving Loan" has the meaning specified in Section 2.01(a).

         "Revolving Note" has the meaning specified in Section 2.11(a).

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

         "Sale and Leaseback Transaction" means, with respect to the Borrower or
any Subsidiary, any arrangement, directly or indirectly, with any Person whereby
the Borrower or such Subsidiary shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property
being sold or transferred.

         "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

         "Securitization Transaction" means any financing transaction or series
of financing transactions (including factoring arrangements) pursuant to which
the Borrower or any Subsidiary may sell, convey or otherwise transfer, or grant
a security interest in, accounts, payments, receivables, rights to future lease
payments or residuals or similar rights to payment to a special purpose
subsidiary or affiliate of the Borrower.

         "Social Security Act" means the Social Security Act of 1965 as set
forth in Title 42 of the United States Code, as amended, and any successor
statute thereto, as interpreted by the rules and regulations issued thereunder,
in each case as in effect from time to time.

         "Solvent" or "Solvency" means, with respect to any Person as of a
particular date, that on such date (a) such Person is able to pay its debts and
other liabilities, contingent obligations and other commitments as they mature
in the ordinary course of business, (b) such Person does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature in their ordinary course,
(c) such Person is not engaged in a business or a transaction, and is not about
to engage in a business or a transaction, for which such Person's Property would
constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged or is to
engage, (d) the fair value of the Property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, and (e) the present fair salable value of the
assets of such Person is not less than the amount that will be required to pay
the probable liability of such Person on its debts as they become absolute and
matured. In computing the amount of contingent liabilities at any time, it is
intended that such liabilities will be computed at the amount which, in light of
all the facts

                                       23
<PAGE>

and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

         "Subsidiary" of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of Capital Stock having ordinary voting power for the election of
directors or other governing body (other than Capital Stock having such power
only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person. Unless
otherwise specified, all references herein to a "Subsidiary" or to
"Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

         "Swap Contract" means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options, forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, that are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a "Master Agreement"), including
any such obligations or liabilities under any Master Agreement.

         "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender).

         "Swing Line Lender" means Bank of America in its capacity as provider
of Swing Line Loans, or any successor swing line lender hereunder.

         "Swing Line Loan" has the meaning specified in Section 2.04(a).

         "Swing Line Loan Notice" means a notice of a Borrowing of Swing Line
Loans pursuant to Section 2.04(b), which notice, if in writing, shall be
substantially in the form of Exhibit C.

         "Swing Line Note" has the meaning specified in Section 2.11(a).

         "Swing Line Sublimit" means an amount equal to the lesser of (a)
$10,000,000 and (b) the Aggregate Revolving Commitments. The Swing Line Sublimit
is part of, and not in addition to, the Aggregate Revolving Commitments.

         "Synthetic Lease" means any synthetic lease, tax retention operating
lease, off-balance sheet loan or similar off-balance sheet financing arrangement
whereby the arrangement is considered borrowed

                                       24
<PAGE>

money indebtedness for tax purposes but is classified as an operating lease or
does not otherwise appear on the balance sheet under GAAP.

         "Term Loan" means collectively those Loans made to the Borrower
pursuant to Section 2.01(b).

         "Term Loan Commitment" means, as to each Lender, its obligation to make
its portion of the Term Loan to the Borrower pursuant to Section 2.01(b), in the
principal amount set forth opposite such Lender's name on Schedule 2.01. The
Term Loan Commitment of each Lender shall terminate at the end of the
Availability Period with respect to the Term Loan Commitments.

         "Term Note" has the meaning specified in Section 2.11(a).

         "Threshold Amount" means $10,000,000.

         "Titan Acquisition" means the purchase by the Borrower of all of the
Capital Stock of National Nephrology Associates, Inc., a Delaware corporation,
and its Subsidiaries (whether pursuant to a merger or otherwise), which purchase
must satisfy all of the provisions contained in the definition of "Permitted
Acquisition".

         "Total Incremental Term Loan Commitment" means, at any time, the sum of
the Incremental Term Loan Commitments of each of the Lenders.

         "Total Revolving Outstandings" means the aggregate Outstanding Amount
of all Revolving Loans, all Swing Line Loans and all L/C Obligations.

         "TRICARE" means the United States Department of Defense health care
program for service families (including TRICARE Prime, TRICARE Extra and TRICARE
Standard), and any successor or predecessor thereof.

         "Type" means, with respect to any Loan, its character as a Base Rate
Loan or a Eurodollar Rate Loan.

         "UCP" means, with respect to any commercial Letter of Credit, the
"Uniform Customs and Practice for Documentary Credits", as most recently
published by the International Chamber of Commerce.

         "Unfunded Pension Liability" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Pension Plan's assets, determined in accordance with the assumptions
used for funding the Pension Plan pursuant to Section 412 of the Internal
Revenue Code for the applicable plan year.

         "United States" and "U.S." mean the United States of America.

         "Unreimbursed Amount" has the meaning specified in Section 2.03(c)(i).

         "Voting Stock" means, with respect to any Person, Capital Stock issued
by such Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so to vote has
been suspended by the happening of such a contingency.

                                       25
<PAGE>

         "Wholly Owned Subsidiary" means any Person 100% of whose Capital Stock
is at the time owned by the Borrower directly or indirectly through other
Persons 100% of whose Capital Stock is at the time owned, directly or
indirectly, by the Borrower.

1.02 Other Interpretive Provisions.

         With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

                  (a) The meanings of defined terms are equally applicable to
         the singular and plural forms of the defined terms.

                  (b)      (i) The words "herein," "hereto," "hereof" and
                  "hereunder" and words of similar import when used in any Loan
                  Document shall refer to such Loan Document as a whole and not
                  to any particular provision thereof.

                           (ii) Article, Section, Exhibit and Schedule
                  references are to the Loan Document in which such reference
                  appears.

                           (iii) The term "including" is by way of example and
                  not limitation.

                           (iv) The term "documents" includes any and all
                  instruments, documents, agreements, certificates, notices,
                  reports, financial statements and other writings, however
                  evidenced, whether in physical or electronic form.

                  (c) In the computation of periods of time from a specified
         date to a later specified date, the word "from" means "from and
         including;" the words "to" and "until" each mean "to but excluding;"
         and the word "through" means "to and including."

                  (d) Section headings herein and in the other Loan Documents
         are included for convenience of reference only and shall not affect the
         interpretation of this Agreement or any other Loan Document.

1.03 Accounting Terms.

         (a) Except as otherwise specifically prescribed herein, all accounting
terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement
shall be prepared in conformity with, GAAP as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited Financial
Statements; provided, however, that calculations of Attributable Indebtedness
under any Synthetic Lease or the implied interest component of any Synthetic
Lease shall be made by the Borrower in accordance with accepted financial
practice and consistent with the terms of such Synthetic Lease.

         (b) The Borrower will provide a written summary of material changes in
GAAP and in the consistent application thereof with each annual and quarterly
Compliance Certificate delivered in accordance with Section 7.02(a). If at any
time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the
Borrower shall negotiate in good faith to amend such ratio or requirement to
preserve the original intent thereof in light of such change in GAAP (subject to
the approval of the Required Lenders); provided that, until so amended, (i) such
ratio or

                                       26
<PAGE>

requirement shall continue to be computed in accordance with GAAP prior to such
change therein, and (ii) the Borrower shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

         (c) Notwithstanding the above, the parties hereto acknowledge and agree
that all calculations of the financial covenants in Section 8.11 (including for
purposes of determining the Applicable Rate) shall be made on a Pro Forma Basis.

1.04 Rounding.

         Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be calculated by dividing the appropriate component by
the other component, carrying the result to one place more than the number of
places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding-up if there is no nearest number).

1.05 References to Agreements and Laws.

         Unless otherwise expressly provided herein, (a) references to
Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Law.

1.06 Times of Day.

         Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

1.07 Letter of Credit Amounts.

         Unless otherwise specified, all references herein to the amount of a
Letter of Credit at any time shall be deemed to mean the maximum face amount of
such Letter of Credit after giving effect to all increases thereof contemplated
by such Letter of Credit or the Issuer Document related thereto, whether or not
such maximum face amount is in effect at such time.

                                   ARTICLE II

                      THE COMMITMENTS AND CREDIT EXTENSIONS

2.01 Revolving Loans, Term Loan and Incremental Term Loans.

         (a) Revolving Loans. Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a "Revolving
Loan") to the Borrower in Dollars from time to time on any Business Day during
the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of such Lender's Revolving Commitment; provided, however,
that after giving effect to any Borrowing of Revolving Loans, (i) the Total
Revolving Outstandings shall not exceed the Aggregate Revolving Commitments, and
(ii) the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus
such Lender's Pro Rata Share of the Outstanding Amount of all L/C

                                       27
<PAGE>

Obligations, plus such Lender's Pro Rata Share of the Outstanding Amount of all
Swing Line Loans shall not exceed such Lender's Revolving Commitment. Within the
limits of each Lender's Revolving Commitment, and subject to the other terms and
conditions hereof, the Borrower may borrow under this Section 2.01(a), prepay
under Section 2.05, and reborrow under this Section 2.01(a). Revolving Loans may
be Base Rate Loans or Eurodollar Rate Loans, as further provided herein;
provided, however, all Borrowings made on the Closing Date shall be made as Base
Rate Loans.

         (b) Term Loan. Subject to the terms and conditions set forth herein,
each Lender severally agrees to make available to the Borrower on any Business
Day in no more than five (5) separate advances during the Availability Period, a
term loan in Dollars in an aggregate amount not to exceed such Lender's Term
Loan Commitment; provided, however, the Outstanding Amount of the Term Loan
shall not exceed the Aggregate Term Loan Commitments. Amounts repaid or prepaid
on the Term Loan may not be reborrowed. The Term Loan may be Base Rate Loans or
Eurodollar Loans, as further provided herein; provided, however, all Borrowings
made on the Closing Date shall be made as Base Rate Loans.

         (c) Incremental Term Loans. Subject to Section 2.01(d) and the other
terms and conditions set forth herein, each Lender with an Incremental Term Loan
Commitment severally agrees, at any time after the Closing Date and prior to the
Maturity Date, to make a term loan or term loans (each an "Incremental Term
Loan" and, collectively, the "Incremental Term Loans") to the Borrower in the
amount of such Lender's Incremental Term Loan Commitment, which Incremental Term
Loans (i) shall be incurred on an Incremental Term Loan Borrowing Date, (ii)
shall not exceed for any Lender, in initial aggregate principal amount, that
amount which equals the Incremental Term Loan Commitment of such Lender at the
time of incurrence thereof, (iii) shall not exceed for all Lenders, in initial
aggregate principal amount, that amount which equals the Total Incremental Term
Loan Commitment at the time of incurrence thereof, and (iv) shall be in an
amount of not less than $5,000,000 each. Amounts repaid on the Incremental Term
Loans may not be reborrowed. The Incremental Term Loans may consist of Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

         (d) Incremental Term Loan Commitments. So long as no Default or Event
of Default then exists or would result therefrom, the Borrower shall, in
consultation with the Administrative Agent, have the right to request on one or
more occasions after the Closing Date and prior to the Maturity Date that the
Lenders or other Persons qualifying as Eligible Assignees, provide Incremental
Term Loan Commitments and, subject to the terms and conditions contained in this
Agreement and the relevant Incremental Term Loan Commitment Agreement, make
Incremental Term Loans pursuant thereto. Notwithstanding the foregoing, the
parties understand and agree that (i) no Lender shall be obligated to provide an
Incremental Term Loan Commitment as a result of any request by the Borrower,
until such time, if any, as (x) such Lender has agreed in its sole discretion to
provide an Incremental Term Loan Commitment as evidenced by its execution of and
delivery to the Administrative Agent of an Incremental Term Loan Commitment
Agreement as provided in Section 2.01(e) and (y) the other conditions set forth
in Section 2.01(e) shall have been satisfied, (ii) any Lender or any other
Person that will qualify as an Eligible Assignee may provide an Incremental Term
Loan Commitment without the consent of any other Lender, (iii) each provision of
Incremental Term Loan Commitments pursuant to this Section 2.01(d) for any
Lender shall be in an amount of at least $1,000,000, (iv) the aggregate amount
of all Incremental Term Loan Commitments permitted to be provided hereunder and
the aggregate principal amount of all Incremental Term Loans permitted to be
made hereunder shall not, in either case, exceed FOUR HUNDRED MILLION DOLLARS
($400,000,000) minus the aggregate principal amount of the Term Loan funded to
consummate the Titan Acquisition, if any, (v) the Applicable Rate with respect
to any such Incremental Term Loan and the fees payable to any Lender providing
an Incremental Term Loan Commitment shall be as set forth in the relevant
Incremental Term Loan Commitment Agreement, (vi) in no event shall the Maturity
Date of such Incremental Term Loan be earlier than the Maturity Date of the
Revolving Loans, (vii) the scheduled principal payments with respect to the
Incremental Term Loans shall be as set forth in

                                       28
<PAGE>

the applicable Incremental Term Loan Commitment Agreement, provided that in no
event shall the weighted average life to maturity of such Incremental Term Loan
be less than three (3) years, (viii) the applicable Incremental Term Loan shall
only be permitted hereunder if after giving effect to such Incremental Term Loan
on a Pro Forma Basis, (a) the Consolidated Leverage Ratio calculated on a Pro
Forma Basis would not exceed 2.25 to 1.00, and (b) no Default or Event of
Default exists immediately after giving effect to such Incremental Term Loan,
and (ix) all actions taken by the Borrower pursuant to this Section 2.01(d) and
Section 2.01(e) shall be done in coordination with the Administrative Agent.

         (e) Incremental Term Loan Commitment Agreement. At the time of any
provision of Incremental Term Loan Commitments pursuant to this Section 2.01,
the Borrower, the Administrative Agent and each Lender or other Eligible
Assignee (each an "Incremental Term Loan Lender") that agrees to provide an
Incremental Term Loan Commitment shall execute and deliver to the Administrative
Agent an Incremental Term Loan Commitment Agreement (appropriately completed),
with the effectiveness of such Lender's Incremental Term Loan Commitment to
occur upon the date set forth in such Incremental Term Loan Commitment Agreement
(and subject to any conditions set forth therein not in contravention of the
terms hereof) following delivery thereof to the Administrative Agent and the
payment of any fees required in connection therewith. The Administrative Agent
shall promptly notify each Incremental Term Loan Lender as to the effectiveness
of each Incremental Term Loan Commitment Agreement, and at such time Schedule
2.01 shall be deemed modified to reflect the Incremental Term Loan Commitments
of such Lenders.

2.02 Borrowings, Conversions and Continuations of Loans.

         (a) Each Borrowing, each conversion of Loans from one Type to the
other, and each continuation of Eurodollar Rate Loans shall be made upon the
Borrower's irrevocable notice to the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Administrative Agent not
later than 11:00 a.m. (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of, Eurodollar Rate Loans or of any
conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) one Business
Day prior to the requested date of any Borrowing of Base Rate Loans. Each
telephonic notice by the Borrower pursuant to this Section 2.02(b) must be
confirmed promptly by delivery to the Administrative Agent of a written Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower. Each Borrowing of, conversion to or continuation of Eurodollar Rate
Loans that are Revolving Loans shall be in a principal amount of $1,000,000 or a
whole multiple of $500,000 in excess thereof. Except as provided in Sections
2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate Loans that are
Revolving Loans shall be in a principal amount of $500,000 or a whole multiple
of $100,000 in excess thereof. Each Borrowing of, conversion to or continuation
of a Term Loan or an Incremental Term Loan (whether Base Rate Loans or
Eurodollar Loans) shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof. Each Loan Notice (whether telephonic
or written) shall specify (i) whether the Borrower is requesting a Borrowing, a
conversion of Loans from one Type to another, or a continuation of Eurodollar
Rate Loans, (ii) the requested date of the Borrowing, conversion or
continuation, as the case may be (which shall be a Business Day), (iii) the
principal amount of Loans to be borrowed, converted or continued, (iv) the Type
of Loans to be borrowed or to which existing Loans are to be converted, and (v)
if applicable, the duration of the Interest Period with respect thereto. If the
Borrower fails to specify a Type of a Loan in a Loan Notice or if the Borrower
fails to give a timely notice requesting a conversion or continuation, then the
applicable Loans shall be made as, or converted to, Base Rate Loans. Any such
automatic conversion to Base Rate Loans shall be effective as of the last day of
the Interest Period then in effect with respect to the applicable Eurodollar
Rate Loans. If the Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in any Loan Notice, but fails to specify
an Interest Period, it will be deemed to have specified an Interest Period of
one month.

                                       29
<PAGE>

         (b) Following receipt of a Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount of its Pro Rata Share of the
applicable Loan(s), and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans as described in the
preceding subsection. In the case of a Borrowing, each Lender shall make the
amount of its Loan available to the Administrative Agent in immediately
available funds at the Administrative Agent's Office not later than 1:00 p.m. on
the Business Day specified in the applicable Loan Notice. Upon satisfaction of
the applicable conditions set forth in Section 5.02 (and, if such Borrowing is
the initial Credit Extension, Section 5.01), the Administrative Agent shall make
all funds so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds, or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date of a Borrowing of Revolving Loans, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing shall be applied,
first, to the payment in full of any such L/C Borrowings, and second, to the
Borrower as provided above.

         (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be
continued or converted only on the last day of the Interest Period for such
Eurodollar Rate Loan. During the existence of a Default or Event of Default, (i)
no Revolving Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Revolving Lenders, and the
Required Revolving Lenders may demand that any or all of the then outstanding
Revolving Loans that are Eurodollar Rate Loans be converted immediately to Base
Rate Loans, (ii) no Term Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Lenders (other than Defaulting
Lenders) holding in the aggregate at least a majority of the outstanding Term
Loans and unfunded Term Loan Commitments, if any, and such Lenders may demand
that any or all of the then outstanding Term Loans that are Eurodollar Rate
Loans be converted immediately to Base Rate Loans, and (iii) no Incremental Term
Loans may be requested as, converted to or continued as Eurodollar Rate Loans
without the consent of the Lenders (other than Defaulting Lenders) holding in
the aggregate at least a majority of the outstanding Incremental Term Loans, and
such Lenders may demand that any or all of the then outstanding Incremental Term
Loans that are Eurodollar Rate Loans be converted immediately to Base Rate
Loans.

         (d) The Administrative Agent shall promptly notify the Borrower and the
Lenders of the interest rate applicable to any Interest Period for Eurodollar
Rate Loans upon determination of such interest rate. The determination of the
Eurodollar Rate by the Administrative Agent shall be conclusive in the absence
of manifest error. At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Borrower and the Lenders of any change in
Bank of America's prime rate used in determining the Base Rate promptly
following the public announcement of such change.

         (e) After giving effect to all Borrowings, all conversions of Loans
from one Type to the other, and all continuations of Loans as the same Type,
there shall not be more than 8 Interest Periods in effect with respect to
Revolving Loans, 8 Interest Periods in effect with respect to the Term Loan and
8 Interest Periods in effect with respect to the Incremental Term Loans.

2.03 Letters of Credit.

         (a) The Letter of Credit Commitment.

                  (i) Subject to the terms and conditions set forth herein, (A)
         each L/C Issuer agrees, in reliance upon the agreements of the other
         Lenders with a Revolving Commitment set forth in

                                       30
<PAGE>

         this Section 2.03, (1) from time to time on any Business Day during the
         period from the Closing Date until the Letter of Credit Expiration
         Date, to issue Letters of Credit in Dollars for the account of the
         Borrower or any of its Subsidiaries, and to amend or extend Letters of
         Credit previously issued by it, each in accordance with subsection (b)
         below, and (2) to honor drawings under the Letters of Credit; and (B)
         the Lenders with a Revolving Commitment severally agree to participate
         in Letters of Credit issued for the account of the Borrower or its
         Subsidiaries and any drawings thereunder; provided that after giving
         effect to any L/C Credit Extension with respect to any Letter of
         Credit, (x) the Total Revolving Outstandings shall not exceed the
         Aggregate Revolving Commitments, (y) the aggregate Outstanding Amount
         of the Revolving Loans of any Lender, plus such Lender's Pro Rata Share
         of the Outstanding Amount of all L/C Obligations, plus such Lender's
         Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall
         not exceed such Lender's Revolving Commitment, or (z) the Outstanding
         Amount of the L/C Obligations shall not exceed the Letter of Credit
         Sublimit. Each request by the Borrower for the issuance or amendment of
         a Letter of Credit shall be deemed to be a representation by the
         Borrower that the L/C Credit Extension so requested complies with the
         conditions set forth in the proviso in the preceding sentence. Within
         the foregoing limits, and subject to the terms and conditions hereof,
         the Borrower's ability to obtain Letters of Credit shall be fully
         revolving, and accordingly the Borrower may, during the foregoing
         period, obtain Letters of Credit to replace Letters of Credit that have
         expired or that have been drawn upon and reimbursed. Furthermore, each
         Lender with a Revolving Commitment acknowledges and confirms that it
         has a participation interest in the liability of each L/C Issuer under
         each Existing Letter of Credit in a percentage equal to its Pro Rata
         Share of Revolving Loans. The Borrower's reimbursement obligations in
         respect of each Existing Letter of Credit, and each Lender's
         obligations in connection therewith, shall be governed by the terms of
         this Agreement.

                  (ii) No L/C Issuer shall issue any Letter of Credit if:

                           (A) subject to Section 2.03(b)(iii), the expiry date
                  of such requested Letter of Credit would occur more than
                  twelve months after the date of issuance or last renewal,
                  unless the Required Revolving Lenders have approved such
                  expiry date;

                           (B) the expiry date of such requested Letter of
                  Credit would occur after the Letter of Credit Expiration Date,
                  unless all the Lenders have approved such expiry date;

                  (iii) No L/C Issuer shall be under any obligation to issue any
         Letter of Credit if:

                           (A) any order, judgment or decree of any Governmental
                  Authority or arbitrator shall by its terms purport to enjoin
                  or restrain such L/C Issuer from issuing such Letter of
                  Credit, or any Law applicable to such L/C Issuer or any
                  request or directive (whether or not having the force of law)
                  from any Governmental Authority with jurisdiction over such
                  L/C Issuer shall prohibit, or request that such L/C Issuer
                  refrain from, the issuance of letters of credit generally or
                  such Letter of Credit in particular or shall impose upon such
                  L/C Issuer with respect to such Letter of Credit any
                  restriction, reserve or capital requirement (for which such
                  L/C Issuer is not otherwise compensated hereunder) not in
                  effect on the Closing Date, or shall impose upon such L/C
                  Issuer any unreimbursed loss, cost or expense which was not
                  applicable on the Closing Date and which such L/C Issuer in
                  good faith deems material to it;

                           (B) the issuance of such Letter of Credit would
                  violate any Laws or one or more policies of the applicable L/C
                  Issuer;

                                       31
<PAGE>

                           (C) except as otherwise agreed by the Administrative
                  Agent and the applicable L/C Issuer, such Letter of Credit is
                  in an initial amount less than $100,000; or

                           (D) such Letter of Credit is to be denominated in
                  currency other than Dollars;

                           (E) a default of any Lender's obligations to fund
                  under Section 2.03(c) exists or any Lender is at such time a
                  Defaulting Lender hereunder, unless the applicable L/C Issuer
                  has entered into satisfactory arrangements with the Borrower
                  or such Lender to eliminate such L/C Issuer's risk with
                  respect to such Lender

                  (iv) No L/C Issuer shall amend any Letter of Credit if such
         L/C Issuer would not be permitted at such time to issue such Letter of
         Credit in its amended form under the terms hereof.

                  (v) No L/C Issuer shall be under any obligation to amend any
         Letter of Credit if the beneficiary of such Letter of Credit does not
         accept the proposed amendment to such Letter of Credit.

                  (vi) No L/C Issuer shall be under any obligation to issue or
         amend any Letter of Credit if such L/C Issuer has received written
         notice from any Lender, the Administrative Agent or any Loan Party, on
         or prior to the Business Day prior to the requested date of issuance or
         amendment of such Letter of Credit, that one or more applicable
         conditions contained in Article V shall not then be satisfied.

         (b) Procedures for Issuance and Amendment of Letters of Credit;
Auto-Renewal Letters of Credit.

                  (i) Each Letter of Credit shall be issued or amended, as the
         case may be, upon the request of the Borrower delivered to the
         applicable L/C Issuer (with a copy to the Administrative Agent) in the
         form of a Letter of Credit Application, appropriately completed and
         signed by a Responsible Officer of the Borrower. Such Letter of Credit
         Application must be received by the applicable L/C Issuer and the
         Administrative Agent not later than 11:00 a.m. at least two (2)
         Business Days (or such later date and time as the Administrative Agent
         and such L/C Issuer may agree in a particular instance in its sole
         discretion) prior to the proposed issuance date or date of amendment,
         as the case may be. In the case of a request for an initial issuance of
         a Letter of Credit, such Letter of Credit Application shall specify in
         form and detail satisfactory to the applicable L/C Issuer: (A) the
         proposed issuance date of the requested Letter of Credit (which shall
         be a Business Day); (B) the amount thereof; (C) the expiry date
         thereof; (D) the name and address of the beneficiary thereof; (E) the
         documents to be presented by such beneficiary in case of any drawing
         thereunder; (F) the full text of any certificate to be presented by
         such beneficiary in case of any drawing thereunder; and (G) such other
         matters as the applicable L/C Issuer may require. In the case of a
         request for an amendment of any outstanding Letter of Credit, such
         Letter of Credit Application shall specify in form and detail
         satisfactory to the applicable L/C Issuer: (A) the Letter of Credit to
         be amended; (B) the proposed date of amendment thereof (which shall be
         a Business Day); (C) the nature of the proposed amendment; and (D) such
         other matters as the applicable L/C Issuer may require. Additionally,
         the Borrower shall furnish to the applicable L/C Issuer and the
         Administrative Agent such other documents and information pertaining to
         such requested Letter of Credit issuance or amendment, including any
         Issuer Documents, as the applicable L/C Issuer or the Administrative
         Agent may reasonably require.

                  (ii) Promptly after receipt of any Letter of Credit
         Application, the applicable L/C Issuer will confirm with the
         Administrative Agent (by telephone or in writing) that the

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<PAGE>

         Administrative Agent has received a copy of such Letter of Credit
         Application from the Borrower and, if not, such L/C Issuer will provide
         the Administrative Agent with a copy thereof. Unless the applicable L/C
         Issuer has received written notice from any Lender, the Administrative
         Agent or any Loan Party, at least one Business Day prior to the
         requested date of issuance or amendment of the applicable Letter of
         Credit, that one or more applicable conditions in Article V shall not
         then be satisfied, then, subject to the terms and conditions hereof,
         such L/C Issuer shall, on the requested date, issue a Letter of Credit
         for the account of the Borrower (or the applicable Subsidiary) or enter
         into the applicable amendment, as the case may be, in each case in
         accordance with such L/C Issuer's usual and customary business
         practices. Immediately upon the issuance of each Letter of Credit, each
         Lender with a Revolving Commitment shall be deemed to, and hereby
         irrevocably and unconditionally agrees to, purchase from the applicable
         L/C Issuer a participation interest in such Letter of Credit in an
         amount equal to the product of such Lender's Pro Rata Share times the
         amount of such Letter of Credit.

                  (iii) If the Borrower so requests in any applicable Letter of
         Credit Application, the applicable L/C Issuer may, in its sole and
         absolute discretion, agree to issue a Letter of Credit that has
         automatic extension provisions (each, an "Auto-Extension Letter of
         Credit"); provided that any such Auto-Extension Letter of Credit must
         permit the applicable L/C Issuer to prevent any such extension at least
         once in each twelve-month period (commencing with the date of issuance
         of such Letter of Credit) by giving prior notice to the beneficiary
         thereof not later than a day (the "Non-Extension Notice Date") in each
         such twelve-month period to be agreed upon at the time such Letter of
         Credit is issued. Unless otherwise directed by the applicable L/C
         Issuer, the Borrower shall not be required to make a specific request
         to the applicable L/C Issuer for any such extension. Once an
         Auto-Extension Letter of Credit has been issued, the Lenders shall be
         deemed to have authorized (but may not require) the applicable L/C
         Issuer to permit the extension of such Letter of Credit at any time to
         an expiry date not later than the Letter of Credit Expiration Date;
         provided, however, that the applicable L/C Issuer shall not permit any
         such extension if (A) such L/C Issuer has determined that it would not
         be permitted, or would have no obligation at such time to issue such
         Letter of Credit in its revised (as extended) form under the terms
         hereof (by reason of the provisions clause (ii) or (iii) of Section
         2.03(a) or otherwise), or (B) it has received notice (which may be by
         telephone or in writing) on or before the day that is five Business
         Days before the Non-Extension Notice Date from the Administrative
         Agent, any Lender or any Loan Party that one or more of the applicable
         conditions specified in Section 5.02 is not then satisfied, and in each
         such case directing such L/C Issuer not to permit such extension.

                  (iv) Promptly after its delivery of any Letter of Credit or
         any amendment to a Letter of Credit to an advising bank with respect
         thereto or to the beneficiary thereof, the applicable L/C Issuer will
         also deliver to the Borrower and the Administrative Agent a true and
         complete copy of such Letter of Credit or amendment.

         (c) Drawings and Reimbursements; Funding of Participations.

                  (i) Upon receipt from the beneficiary of any Letter of Credit
         of any notice of drawing under such Letter of Credit, the applicable
         L/C Issuer shall promptly notify the Borrower and the Administrative
         Agent thereof. Not later than 11:00 a.m. on the date of any payment by
         the applicable L/C Issuer under a Letter of Credit (or, if such payment
         by such L/C Issuer is made after 11:00 a.m., not later than 9:00 a.m.
         the next succeeding Business Day) (each such date, an "Honor Date"),
         the Borrower shall reimburse the applicable L/C Issuer through the
         Administrative Agent in an amount equal to the amount of such drawing.
         If the Borrower fails to so reimburse such L/C Issuer by such time, the
         Administrative Agent shall promptly notify each Lender with a Revolving
         Commitment of the Honor Date, the amount of the unreimbursed

                                       33
<PAGE>

         drawing (the "Unreimbursed Amount"), and the amount of such Lender's
         Pro Rata Share thereof. In such event, the Borrower shall be deemed to
         have requested a Borrowing of Base Rate Loans to be disbursed on the
         Honor Date in an amount equal to the Unreimbursed Amount, without
         regard to the minimum and multiples specified in Section 2.02 for the
         principal amount of Base Rate Loans, but subject to the amount of the
         unutilized portion of the Aggregate Revolving Commitments and the
         conditions set forth in Section 5.02 (other than the delivery of a Loan
         Notice). Any notice given by any L/C Issuer or the Administrative Agent
         pursuant to this Section 2.03(c)(i) may be given by telephone if
         immediately confirmed in writing; provided that the lack of such an
         immediate confirmation shall not affect the conclusiveness or binding
         effect of such notice.

                  (ii) Each Lender with a Revolving Commitment (including any
         Lender acting as an L/C Issuer) shall upon any notice pursuant to
         Section 2.03(c)(i) make funds available to the Administrative Agent for
         the account of the applicable L/C Issuer at the Administrative Agent's
         Office in an amount equal to its Pro Rata Share of the Unreimbursed
         Amount not later than 1:00 p.m. on the Business Day specified in such
         notice by the Administrative Agent, whereupon, subject to the
         provisions of Section 2.03(c)(iii), each Lender that so makes funds
         available shall be deemed to have made a Base Rate Loan to the Borrower
         in such amount. The Administrative Agent shall remit the funds so
         received to the applicable L/C Issuer.

                  (iii) With respect to any Unreimbursed Amount that is not
         fully refinanced by a Borrowing of Base Rate Loans because the
         conditions set forth in Section 5.02 cannot be satisfied or for any
         other reason, the Borrower shall be deemed to have incurred from the
         applicable L/C Issuer an L/C Borrowing in the amount of the
         Unreimbursed Amount that is not so refinanced, which L/C Borrowing
         shall be due and payable on demand (together with interest) and shall
         bear interest at the Default Rate. In such event, each Lender's payment
         to the Administrative Agent for the account of the applicable L/C
         Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in
         respect of its participation in such L/C Borrowing and shall constitute
         an L/C Advance from such Lender in satisfaction of its participation
         obligation under this Section 2.03.

                  (iv) Until each Lender funds its Revolving Loan or L/C Advance
         pursuant to this Section 2.03(c) to reimburse the applicable L/C Issuer
         for any amount drawn under any Letter of Credit, interest in respect of
         such Lender's Pro Rata Share of such amount shall be solely for the
         account of the applicable L/C Issuer.

                  (v) Each Lender's obligation to make Revolving Loans or L/C
         Advances to reimburse the applicable L/C Issuer for amounts drawn under
         Letters of Credit, as contemplated by this Section 2.03(c), shall be
         absolute and unconditional and shall not be affected by any
         circumstance, including (A) any set-off, counterclaim, recoupment,
         defense or other right which such Lender may have against the
         applicable L/C Issuer, the Borrower or any other Person for any reason
         whatsoever; (B) the occurrence or continuance of a Default; or (C) any
         other occurrence, event or condition, whether or not similar to any of
         the foregoing; provided, however, that each Lender's obligation to make
         Revolving Loans pursuant to this Section 2.03(c) is subject to the
         conditions set forth in Section 5.02 (other than delivery by the
         Borrower of a Loan Notice). No such making of an L/C Advance shall
         relieve or otherwise impair the obligation of the Borrower to reimburse
         the applicable L/C Issuer for the amount of any payment made by such
         L/C Issuer under any Letter of Credit, together with interest as
         provided herein.

                  (vi) If any Lender with a Revolving Commitment fails to make
         available to the Administrative Agent for the account of the applicable
         L/C Issuer any amount required to be paid by such Lender pursuant to
         the foregoing provisions of this Section 2.03(c) by the time specified

                                       34
<PAGE>

         in Section 2.03(c)(ii), the applicable L/C Issuer shall be entitled to
         recover from such Lender (acting through the Administrative Agent), on
         demand, such amount with interest thereon for the period from the date
         such payment is required to the date on which such payment is
         immediately available to such L/C Issuer at a rate per annum equal to
         the Federal Funds Rate from time to time in effect. A certificate of
         the applicable L/C Issuer submitted to any Lender (through the
         Administrative Agent) with respect to any amounts owing under this
         clause (vi) shall be conclusive absent manifest error.

         (d) Repayment of Participations.

                  (i) At any time after the applicable L/C Issuer has made a
         payment under any Letter of Credit and has received from any Lender
         such Lender's L/C Advance in respect of such payment in accordance with
         Section 2.03(c), if the Administrative Agent receives for the account
         of such L/C Issuer any payment in respect of the related Unreimbursed
         Amount or interest thereon (whether directly from the Borrower or
         otherwise, including proceeds of Cash Collateral applied thereto by the
         Administrative Agent), the Administrative Agent will distribute to such
         Lender its Pro Rata Share thereof (appropriately adjusted, in the case
         of interest payments, to reflect the period of time during which such
         Lender's L/C Advance was outstanding) in the same funds as those
         received by the Administrative Agent.

                  (ii) If any payment received by the Administrative Agent for
         the account of an L/C Issuer pursuant to Section 2.03(c)(i) is required
         to be returned under any of the circumstances described in Section
         11.06 (including pursuant to any settlement entered into by the
         applicable L/C Issuer in its discretion), each Lender with a Revolving
         Commitment shall pay to the Administrative Agent for the account of the
         applicable L/C Issuer its Pro Rata Share thereof on demand of the
         Administrative Agent, plus interest thereon from the date of such
         demand to the date such amount is returned by such Lender, at a rate
         per annum equal to the Federal Funds Rate from time to time in effect.

         (e) Obligations Absolute. The obligation of the Borrower to reimburse
the applicable L/C Issuer for each drawing under each Letter of Credit and to
repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

                  (i) any lack of validity or enforceability of such Letter of
         Credit, this Agreement, any other Loan Document or any other Loan
         Document;

                  (ii) the existence of any claim, counterclaim, set-off,
         defense or other right that the Borrower may have at any time against
         any beneficiary or any transferee of such Letter of Credit (or any
         Person for whom any such beneficiary or any such transferee may be
         acting), the applicable L/C Issuer or any other Person, whether in
         connection with this Agreement, the transactions contemplated hereby or
         by such Letter of Credit or any agreement or instrument relating
         thereto, or any unrelated transaction;

                  (iii) any draft, demand, certificate or other document
         presented under such Letter of Credit proving to be forged, fraudulent,
         invalid or insufficient in any respect or any statement therein being
         untrue or inaccurate in any respect; or any loss or delay in the
         transmission or otherwise of any document required in order to make a
         drawing under such Letter of Credit;

                  (iv) any payment by the applicable L/C Issuer under such
         Letter of Credit against presentation of a draft or certificate that
         does not strictly comply with the terms of such Letter of

                                       35
<PAGE>

         Credit; or any payment made by the applicable L/C Issuer under such
         Letter of Credit to any Person purporting to be a trustee in
         bankruptcy, debtor-in-possession, assignee for the benefit of
         creditors, liquidator, receiver or other representative of or successor
         to any beneficiary or any transferee of such Letter of Credit,
         including any arising in connection with any proceeding under any
         Debtor Relief Law; or

                  (v) any other circumstance or happening whatsoever, whether or
         not similar to any of the foregoing, including any other circumstance
         that might otherwise constitute a defense available to, or a discharge
         of, the Borrower or any Subsidiary.

         The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it; and, if there is any claim of
noncompliance with the Borrower's instructions or other irregularity, the
Borrower will immediately notify the applicable L/C Issuer. The Borrower shall
be conclusively deemed to have waived any such claim against such L/C Issuer and
its correspondents unless such notice is given as aforesaid.

         (f) Role of L/C Issuers. Each Lender and the Borrower agree that, in
paying any drawing under a Letter of Credit, the L/C Issuers shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the L/C Issuers,
any Agent-Related Person nor any of the respective correspondents, participants
or assignees of the L/C Issuers shall be liable to any Lender for (i) any action
taken or omitted in connection herewith at the request or with the approval of
the Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Letter of Credit Application. The
Borrower hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower's
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuers, any
Agent-Related Person, nor any of the respective correspondents, participants or
assignees of the L/C Issuers, shall be liable or responsible for any of the
matters described in clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding, the
Borrower may have a claim against an L/C Issuer, and the applicable L/C Issuer
may be liable to the Borrower, to the extent, but only to the extent, of any
direct, as opposed to consequential or exemplary, damages suffered by the
Borrower which the Borrower proves were caused by such L/C Issuer's willful
misconduct or gross negligence as determined by a final and nonappealable
judgment of a court of competent jurisdiction or such L/C Issuer's willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation
of the foregoing, each L/C Issuer may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary, and no L/C Issuer shall be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

         (g) Cash Collateral. Upon the request of the Administrative Agent, (i)
if an L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any Letter of Credit for any reason
remains outstanding and partially or wholly undrawn, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount determined as of the
date of such L/C Borrowing or the Letter of Credit Expiration Date, as the case
may

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<PAGE>

be). Section 2.05 and 9.02(c) set forth certain additional requirements to
deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section
2.05 and Section 9.02(c), "Cash Collateralize" means to pledge and deposit with
or deliver to the Administrative Agent, for the benefit of the applicable L/C
Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance satisfactory to
the Administrative Agent and the applicable L/C Issuer (which documents are
hereby consented to by the Lenders). Derivatives of the term Cash Collateralize
have corresponding meanings. The Borrower hereby grants to the Administrative
Agent, for the benefit of the applicable L/C Issuer and the Lenders, a security
interest in all such cash, deposit accounts and all balances therein pledged,
deposited with or delivered to the Administrative Agent and all proceeds of the
foregoing. Cash collateral shall be maintained in blocked, non-interest bearing
deposit accounts at Bank of America.

         (h) Applicability of ISP98 and UCP. Unless otherwise expressly agreed
by the applicable L/C Issuer and the Borrower when a Letter of Credit is issued
(including any such agreement applicable to an Existing Letter of Credit), (i)
the rules of the ISP shall apply to each standby Letter of Credit and (ii) the
rules of the UCP shall apply to each commercial Letter of Credit.

         (i) Letter of Credit Fees. The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share a
Letter of Credit fee (the "Letter of Credit Fee") for each Letter of Credit
equal to the Applicable Rate times the daily maximum amount available to be
drawn under such Letter of Credit (whether or not such maximum amount is then in
effect under such Letter of Credit). Letter of Credit Fees shall be (i) computed
on a quarterly basis in arrears and (ii) due and payable on the last Business
Day of each March, June, September and December, commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily maximum amount of each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect.
Notwithstanding anything to the contrary contained herein, while an Event of
Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

         (j) Fronting Fee and Documentary and Processing Charges Payable to
Applicable L/C Issuer. Other than with respect to the Existing Letters of
Credit, the Borrower shall pay directly to the applicable L/C Issuer for its own
account (i) a one time fronting fee for each commercial Letter of Credit equal
to 1/8 of 1% times the amount of such commercial Letter of Credit, due and
payable at the time of issuance and (ii) a fronting fee with respect to each
standby Letter of Credit in an amount equal to 1/8 of 1% per annum on the daily
maximum amount available to be drawn thereunder (whether or not such maximum
amount is then in effect under such Letter of Credit), due and payable quarterly
in arrears on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter
of Credit, and on the Letter of Credit Expiration Date. In addition, the
Borrower shall pay directly to the applicable L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges, of such L/C Issuer relating to letters of credit as
from time to time in effect. Such customary fees and standard costs and charges
are due and payable on demand and are nonrefundable.

         (k) Conflict with Letter of Credit Application. In the event of any
conflict between the terms hereof and the terms of any Letter of Credit
Application, the terms hereof shall control.

         (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Borrower shall be
obligated to reimburse the applicable L/C Issuer hereunder for any and all
drawings under such Letter of Credit. The Borrower hereby acknowledges that the
issuance of Letters of Credit for

                                       37
<PAGE>

the account of Subsidiaries inures to the benefit of the Borrower and that the
Borrower's business derives substantial benefits from the businesses of such
Subsidiaries.

2.04 Swing Line Loans.

         (a) Swing Line Facility. Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees to make loans (each such loan, a "Swing
Line Loan") to the Borrower in Dollars from time to time on any Business Day
during the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that
such Swing Line Loans, when aggregated with the Pro Rata Share of the
Outstanding Amount of Revolving Loans and L/C Obligations of the Swing Line
Lender in its capacity as a Lender of Revolving Loans, may exceed the amount of
such Lender's Revolving Commitment; provided, however, that after giving effect
to any Swing Line Loan, (i) the Total Revolving Outstandings shall not exceed
the Aggregate Revolving Commitments, and (ii) the aggregate Outstanding Amount
of the Revolving Loans of any Lender, plus such Lender's Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender's Pro Rata Share of
the Outstanding Amount of all Swing Line Loans shall not exceed such Lender's
Revolving Commitment, and provided, further, that the Borrower shall not use the
proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.
Within the foregoing limits, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.04, prepay under Section
2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall be a Base
Rate Loan. Immediately upon the making of a Swing Line Loan, each Lender with a
Revolving Commitment shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Swing Line Lender a participation
interest in such Swing Line Loan in an amount equal to the product of such
Lender's Pro Rata Share times the amount of such Swing Line Loan.

         (b) Borrowing Procedures. Each Borrowing of Swing Line Loans shall be
made upon the Borrower's irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to
be borrowed, which shall be a minimum principal amount of $100,000 and integral
multiples of $100,000 in excess thereof, and (ii) the requested borrowing date,
which shall be a Business Day. Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower. Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof. Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 2:00 p.m. on the date of the proposed
Borrowing of Swing Line Loans (A) directing the Swing Line Lender not to make
such Swing Line Loan as a result of the limitations set forth in the proviso to
the first sentence of Section 2.04(a), or (B) that one or more of the applicable
conditions specified in Article V is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Notice, make the
amount of its Swing Line Loan available to the Borrower.

         (c) Refinancing of Swing Line Loans.

                  (i) The Swing Line Lender at any time in its sole and absolute
         discretion may request, on behalf of the Borrower (which hereby
         irrevocably requests and authorizes the Swing Line Lender to so request
         on its behalf), that each Lender with a Revolving Commitment make a

                                       38
<PAGE>

         Base Rate Loan in an amount equal to such Lender's Pro Rata Share of
         the amount of Swing Line Loans then outstanding. Such request shall be
         made in writing (which written request shall be deemed to be a Loan
         Notice for purposes hereof) and in accordance with the requirements of
         Section 2.02, without regard to the minimum and multiples specified
         therein for the principal amount of Base Rate Loans, but subject to the
         unutilized portion of the Aggregate Revolving Commitments and the
         conditions set forth in Section 5.02. The Swing Line Lender shall
         furnish the Borrower with a copy of the applicable Loan Notice promptly
         after delivering such notice to the Administrative Agent. Each Lender
         with a Revolving Commitment shall make an amount equal to its Pro Rata
         Share of the amount specified in such Loan Notice available to the
         Administrative Agent in immediately available funds for the account of
         the Swing Line Lender at the Administrative Agent's Office not later
         than 1:00 p.m. on the day specified in such Loan Notice, whereupon,
         subject to Section 2.04(c)(ii), each Lender that so makes funds
         available shall be deemed to have made a Base Rate Loan to the Borrower
         in such amount. The Administrative Agent shall remit the funds so
         received to the Swing Line Lender.

                  (ii) If for any reason any Swing Line Loan cannot be
         refinanced by such a Borrowing of Revolving Loans in accordance with
         Section 2.04(c)(i), the request for Base Rate Loans submitted by the
         Swing Line Lender as set forth herein shall be deemed to be a request
         by the Swing Line Lender that each of the Lenders with a Revolving
         Commitment fund its participation interest in the relevant Swing Line
         Loan and each Lender's payment to the Administrative Agent for the
         account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall
         be deemed payment in respect of such participation.

                  (iii) If any Lender with a Revolving Commitment fails to make
         available to the Administrative Agent for the account of the Swing Line
         Lender any amount required to be paid by such Lender pursuant to the
         foregoing provisions of this Section 2.04(c) by the time specified in
         Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover
         from such Lender (acting through the Administrative Agent), on demand,
         such amount with interest thereon for the period from the date such
         payment is required to the date on which such payment is immediately
         available to the Swing Line Lender at a rate per annum equal to the
         Federal Funds Rate from time to time in effect. A certificate of the
         Swing Line Lender submitted to any Lender (through the Administrative
         Agent) with respect to any amounts owing under this clause (iii) shall
         be conclusive absent manifest error.

                  (iv) Each Lender's obligation to make Revolving Loans or to
         purchase and fund participation interests in Swing Line Loans pursuant
         to this Section 2.04(c) shall be absolute and unconditional and shall
         not be affected by any circumstance, including (A) any set-off,
         counterclaim, recoupment, defense or other right that such Lender may
         have against the Swing Line Lender, the Borrower or any other Person
         for any reason whatsoever, (B) the occurrence or continuance of a
         Default, or (C) any other occurrence, event or condition, whether or
         not similar to any of the foregoing; provided, however, that each
         Lender's obligation to make Revolving Loans pursuant to this Section
         2.04(c) is subject to the conditions set forth in Section 5.02. No such
         purchase or funding of participation interests shall relieve or
         otherwise impair the obligation of the Borrower to repay Swing Line
         Loans, together with interest as provided herein.

         (d) Repayment of Participations.

                  (i) At any time after any Lender has purchased and funded a
         participation interest in a Swing Line Loan, if the Swing Line Lender
         receives any payment on account of such Swing Line Loan, the Swing Line
         Lender will distribute to such Lender its Pro Rata Share of such
         payment (appropriately adjusted, in the case of interest payments, to
         reflect the period of time

                                       39
<PAGE>

         during which such Lender's participation interest was funded) in the
         same funds as those received by the Swing Line Lender.

                  (ii) If any payment received by the Swing Line Lender in
         respect of principal or interest on any Swing Line Loan is required to
         be returned by the Swing Line Lender under any of the circumstances
         described in Section 11.06 (including pursuant to any settlement
         entered into by the Swing Line Lender in its discretion), each Lender
         with a Revolving Commitment shall pay to the Swing Line Lender its Pro
         Rata Share thereof on demand of the Administrative Agent, plus interest
         thereon from the date of such demand to the date such amount is
         returned, at a rate per annum equal to the Federal Funds Rate. The
         Administrative Agent will make such demand upon the request of the
         Swing Line Lender.

         (e) Interest for Account of Swing Line Lender. The Swing Line Lender
shall be responsible for invoicing the Borrower for interest on the Swing Line
Loans. Until each Lender funds its Revolving Loans that are Base Rate Loans or
participation interests pursuant to this Section 2.04 to refinance such Lender's
Pro Rata Share of any Swing Line Loan, interest in respect of such Pro Rata
Share shall be solely for the account of the Swing Line Lender.

         (f) Payments Directly to Swing Line Lender. The Borrower shall make all
payments of principal and interest in respect of the Swing Line Loans directly
to the Swing Line Lender or, to the extent the Lenders have purchased and funded
participation interests in Swing Line Loans, to the Administrative Agent for
distribution to the funding Lenders.

2.05 Prepayments.

         (a) Voluntary Prepayments of Loans.

                  (i) Revolving Loans, Term Loan and Incremental Term Loans. The
         Borrower may, upon notice from the Borrower to the Administrative
         Agent, at any time or from time to time voluntarily prepay Revolving
         Loans, the Term Loan and the Incremental Term Loans in whole or in part
         without premium or penalty; provided that (A) such notice must be
         received by the Administrative Agent not later than 11:00 a.m. (1)
         three (3) Business Days prior to any date of prepayment of Eurodollar
         Rate Loans and (2) on the date of prepayment of Base Rate Loans; (B)
         any such prepayment of Eurodollar Rate Loans shall be in a principal
         amount of $1,000,000 or a whole multiple of $100,000 in excess thereof
         (or, if less, the entire principal amount thereof then outstanding);
         (C) any prepayment of Base Rate Loans shall be in a principal amount of
         $500,000 or a whole multiple of $100,000 in excess thereof (or, if
         less, the entire principal amount thereof then outstanding); and (D)
         any prepayment of the Term Loan or the Incremental Terms Loans shall be
         applied pro rata to the Term Loan and the Incremental Term Loans
         (applied to the remaining principal amortization payments thereof in
         inverse order of maturity). Each such notice shall specify the date and
         amount of such prepayment and the Type(s) of Loans to be prepaid. The
         Administrative Agent will promptly notify each Lender of its receipt of
         each such notice and of the amount of such Lender's Pro Rata Share of
         such prepayment. If such notice is given by the Borrower, the Borrower
         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 Eurodollar Rate Loan shall be accompanied by all
         accrued interest thereon, together with any additional amounts required
         pursuant to Section 3.05. Each such prepayment shall be applied to the
         Loans of the Lenders in accordance with their respective Pro Rata
         Shares.

                  (ii) Swing Line Loans. The Borrower may, upon notice to the
         Swing Line Lender (with a copy to the Administrative Agent), at any
         time or from time to time, voluntarily prepay

                                       40
<PAGE>

         Swing Line Loans in whole or in part without premium or penalty;
         provided that (i) such notice must be received by the Swing Line Lender
         and the Administrative Agent not later than 1:00 p.m. on the date of
         the prepayment, and (ii) any such prepayment shall be in a minimum
         principal amount of $100,000 or a whole multiple of $100,000 in excess
         thereof (or, if less, the entire principal thereof then outstanding).
         Each such notice shall specify the date and amount of such prepayment.
         If such notice is given by the Borrower, the Borrower shall make such
         prepayment, and the payment amount specified in such notice shall be
         due and payable on the date specified therein.

         (b) Mandatory Prepayments of Loans.

                  (i) Revolving Commitments. If for any reason the Total
         Revolving Outstandings at any time exceed the Aggregate Revolving
         Commitments then in effect, the Borrower shall immediately prepay
         Revolving Loans and/or the Swing Line Loans and/or Cash Collateralize
         the L/C Obligations in an aggregate amount equal to such excess;
         provided, however, that the Borrower shall not be required to Cash
         Collateralize the L/C Obligations pursuant to this Section 2.05(b)(i)
         unless after the prepayment in full of the Revolving Loans and Swing
         Line Loans the Total Revolving Outstandings exceed the Aggregate
         Revolving Commitments then in effect.

                  (ii) Dispositions and Involuntary Dispositions. (A) If as of
         the most recent fiscal quarter end the Consolidated Leverage Ratio is
         greater than 1.5 to 1.0, then the Borrower shall prepay the Term Loan
         and the Incremental Term Loans in an aggregate amount equal to 50% of
         the Net Cash Proceeds of all Dispositions (other than any Sale and
         Leaseback Transactions) and Involuntary Dispositions made during such
         fiscal quarter until the Consolidated Leverage Ratio as of the end of
         the most recent fiscal quarter on a Pro Forma Basis after giving effect
         to such prepayment is equal to or less than 1.5 to 1.0; provided
         however, no prepayment shall be required pursuant to this Section
         2.05(b)(ii)(A) with respect to the first $10 million of Net Cash
         Proceeds received during those fiscal quarters for which the
         Consolidated Leverage Ratio as of the end of such fiscal quarters is
         greater than 1.5 to 1.0 and (B) the Borrower shall prepay the Term Loan
         and the Incremental Term Loans in an aggregate amount equal to 50% of
         the Net Cash Proceeds of all Dispositions carried out in connection
         with Sale and Leaseback Transactions made during such fiscal quarter.
         Any prepayment pursuant to this clause (ii) shall be applied as set
         forth in clause (iv) below.

                  (iii) Debt Issuances. If as of the most recent fiscal quarter
         end the Consolidated Leverage Ratio is greater than 1.5 to 1.0, then
         the Borrower shall prepay the Term Loan and the Incremental Term Loans
         in an aggregate amount equal to 50% of such Net Cash Proceeds of all
         such Debt Issuances made during such fiscal quarter until the
         Consolidated Leverage Ratio as of the end of the most recent fiscal
         quarter on a Pro Forma Basis after giving effect to such prepayment is
         equal to or less than 1.5 to 1.0 (such prepayment to be applied as set
         forth in clause (iv) below).

                  (iv) Application of Mandatory Prepayments. All amounts
         required to be paid pursuant to this Section 2.05(b) shall be applied
         as follows:

                           (A) with respect to all amounts prepaid pursuant to
                  Section 2.05(b)(i), to Revolving Loans and Swing Line Loans
                  and (after all Revolving Loans and all Swing Line Loans have
                  been repaid) to Cash Collateralize L/C Obligations; and

                           (B) with respect to all amounts prepaid pursuant to
                  Sections 2.05(b)(ii) and (iii), pro rata to the Term Loan and
                  the Incremental Term Loans (applied to the remaining principal
                  amortization payments thereof in inverse order of maturity).

                                       41
<PAGE>

                  Within the parameters of the applications set forth above,
                  prepayments shall be applied first to Base Rate Loans and then
                  to Eurodollar Rate Loans in direct order of Interest Period
                  maturities. All prepayments under this Section 2.05(b) shall
                  be subject to Section 3.05, but otherwise without premium or
                  penalty, and shall be accompanied by interest on the principal
                  amount prepaid through the date of prepayment.

2.06 Termination or Reduction of Aggregate Revolving Commitments.

         The Borrower may, upon notice to the Administrative Agent, terminate
the Aggregate Revolving Commitments, or from time to time permanently reduce the
Aggregate Revolving Commitments to an amount not less than the Outstanding
Amount of Revolving Loans, Swing Line Loans and L/C Obligations; provided that
(i) any such notice shall be received by the Administrative Agent not later than
12:00 noon five (5) Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or
any whole multiple of $1,000,000 in excess thereof, and (iii) if, after giving
effect to any reduction of the Aggregate Revolving Commitments, the Letter of
Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate
Revolving Commitments, such sublimit shall be automatically reduced by the
amount of such excess. The Administrative Agent will promptly notify the Lenders
of any such notice of termination or reduction of the Aggregate Revolving
Commitments. Any reduction of the Aggregate Revolving Commitments shall be
applied to the Revolving Commitment of each Lender according to its Pro Rata
Share. All fees accrued with respect thereto until the effective date of any
termination of the Aggregate Revolving Commitments shall be paid on the
effective date of such termination.

2.07 Repayment of Loans.

         (a) Revolving Loans. The Borrower shall repay to the Lenders on the
Maturity Date the aggregate principal amount of all Revolving Loans outstanding
on such date.

         (b) Swing Line Loans. The Borrower shall repay each Swing Line Loan on
the earlier to occur of (i) demand by the Swing Line Lender, and (ii) the
Maturity Date.

         (c) Repayment of Term Loan. The Borrower shall repay the outstanding
principal amount of the Term Loan in installments on the dates and in the
amounts set forth in the table below, unless accelerated sooner pursuant to
Section 9.02:

                                       42
<PAGE>

<TABLE>
<CAPTION>
                                          Term Loan Principal
                                         Amortization Payment
                                           (% of Term Loan
                                        outstanding on the last
   Principal Amortization               day of the Availability
        Payment Dates                           Period)
   -----------------------              -----------------------
<S>                                     <C>
June 30, September 30, and
December 31, 2004 and
March 31, 2005                                    1.25%

June 30, September 30 and
December 31, 2005 and
March 31, 2006                                   1.875%

June 30, September 30 and
December 31, 2006 and
March 31, 2007                                    2.50%

June 30, September 30 and
December 31, 2007 and
March 31, 2008                                    5.00%

June 30, September 30 and
December 31, 2008 and
February 10, 2009                               14.375%

Maturity Date                             Outstanding Principal
                                          Balance of Term Loan
</TABLE>

         (d) The Borrower shall repay the outstanding principal amount of the
Incremental Term Loans in accordance with the terms of the applicable
Incremental Term Loan Commitment Agreement.

2.08 Interest.

         (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the sum of (A) the
Eurodollar Rate for such Interest Period plus (B) the Applicable Rate; (ii) each
Base Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate
plus the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate.

         (b) Upon the occurrence and during the continuation of an Event of
Default, the Borrower shall pay interest on the principal amount of all Loans
and all other outstanding Obligations at a

                                       43
<PAGE>

fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

         (c) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

2.09 Fees.

         In addition to the fees described in subsections (i) and (j) of Section
2.03:

                  (a) Commitment Fee. The Borrower shall pay to the
         Administrative Agent for the account of each Lender having a Revolving
         Commitment in accordance with its Pro Rata Share, a commitment fee
         equal to the product of (i) the Applicable Rate times (ii) the actual
         daily amount by which the Aggregate Revolving Commitments exceed the
         sum of (y) the Outstanding Amount of Revolving Loans and (z) the
         Outstanding Amount of L/C Obligations. The commitment fee shall accrue
         at all times during the Availability Period, including at any time
         during which one or more of the conditions in Article V is not met, and
         the commitment fee shall be due and payable quarterly in arrears on the
         last Business Day of each March, June, September and December,
         commencing with the first such date to occur after the Closing Date,
         and on the Maturity Date. The commitment fee shall be calculated
         quarterly in arrears, and if there is any change in the Applicable Rate
         during any quarter, the actual daily amount shall be computed and
         multiplied by the Applicable Rate separately for each period during
         such quarter that such Applicable Rate was in effect. For purposes of
         clarification, Swing Line Loans shall not be considered outstanding for
         purposes of determining the unused portion of the Aggregate Revolving
         Commitments.

                  (b) Term Loan Commitment Fee. The Borrower shall pay to the
         Administrative Agent for the account of each Lender having a Term Loan
         Commitment in accordance with its Pro Rata Share, a commitment fee
         equal to the product of (i) 0.30% times (ii) the actual daily amount by
         which the Aggregate Term Loan Commitments exceed the Outstanding Amount
         of the Term Loan. The commitment fee shall accrue at all times during
         the Availability Period, including at any time during which one or more
         of the conditions in Article V is not met, and shall be calculated for
         the applicable period and due and payable in arrears on March 30, 2004,
         on April 30, 2004 and on May 31, 2004.

                  (c) Fee Letter. The Borrower shall pay to BAS and the
         Administrative Agent for their own respective accounts fees in the
         amounts and at the times specified in the Fee Letter. Such fees shall
         be fully earned when paid and shall be non-refundable for any reason
         whatsoever.

2.10 Computation of Interest and Fees.

         All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America's "prime rate" shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion
is paid, provided that any Loan that is repaid on the same day on which it is
made shall, subject to Section 2.12(a), bear interest for one day.

                                       44
<PAGE>

2.11 Evidence of Debt.

         (a) The Credit Extensions made by each Lender shall be evidenced by one
or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by
the Administrative Agent and each Lender shall be conclusive absent manifest
error of the amount of the Credit Extensions made by the Lenders to the Borrower
and the interest and payments thereon. Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Obligations. In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error. Upon the request of any Lender made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a promissory note, which shall evidence such
Lender's Loans in addition to such accounts or records. Each such promissory
note shall (i) in the case of Revolving Loans, be in the form of Exhibit D-1 (a
"Revolving Note"), (ii) in the case of Swing Line Loans, be in the form of
Exhibit D-2 (a "Swing Line Note") (iii) in the case of the Term Loan, be in the
form of Exhibit D-3 (a "Term Note") and (iv) in the case of Incremental Term
Loans, be in the form of Exhibit D-4 (an "Incremental Term Note"). Each Lender
may attach schedules to its Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect thereto.

         (b) In addition to the accounts and records referred to in subsection
(a), each Lender and the Administrative Agent shall maintain in accordance with
its usual practice accounts or records evidencing the purchases and sales by
such Lender of participations in Letters of Credit and Swing Line Loans. In the
event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error.

2.12 Payments Generally.

         (a) All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 2:00 p.m. on
the date specified herein. The Administrative Agent will promptly distribute to
each Lender its Pro Rata Share (or other applicable share as provided herein) of
such payment in like funds as received by wire transfer to such Lender's Lending
Office. All payments received by the Administrative Agent after 2:00 p.m. shall
be deemed received on the next succeeding Business Day and any applicable
interest or fees shall continue to accrue.

         (b) Subject to the definition of "Interest Period", if any payment to
be made by the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

         (c) If at any time insufficient funds are received by and available to
the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first,
toward costs and expenses (including Attorney Costs and amounts payable under
Article III) incurred by the Administrative Agent and each Lender, (ii) second,
toward repayment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (iii) third, toward repayment of principal and

                                       45
<PAGE>

L/C Borrowings then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and L/C Borrowings then due to such
parties.

         (d) Unless the Borrower or any Lender has notified the Administrative
Agent, prior to the date any payment is required to be made by it to the
Administrative Agent hereunder, that the Borrower or such Lender, as the case
may be, will not make such payment, the Administrative Agent may assume that the
Borrower or such Lender, as the case may be, has timely made such payment and
may (but shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto. If and to the extent that
such payment was not in fact made to the Administrative Agent in immediately
available funds, then:

                  (i) if the Borrower failed to make such payment, each Lender
         shall forthwith on demand repay to the Administrative Agent the portion
         of such assumed payment that was made available to such Lender in
         immediately available funds, together with interest thereon in respect
         of each day from and including the date such amount was made available
         by the Administrative Agent to such Lender to the date such amount is
         repaid to the Administrative Agent in immediately available funds at
         the Federal Funds Rate from time to time in effect; and

                  (ii) if any Lender failed to make such payment, such Lender
         shall forthwith on demand pay to the Administrative Agent the amount
         thereof in immediately available funds, together with interest thereon
         for the period from the date such amount was made available by the
         Administrative Agent to the Borrower to the date such amount is
         recovered by the Administrative Agent (the "Compensation Period") at a
         rate per annum equal to the Federal Funds Rate from time to time in
         effect. If such Lender pays such amount to the Administrative Agent,
         then such amount shall constitute such Lender's Loan included in the
         applicable Borrowing. If such Lender does not pay such amount forthwith
         upon the Administrative Agent's demand therefor, the Administrative
         Agent may make a demand therefor upon the Borrower, and the Borrower
         shall pay such amount to the Administrative Agent, together with
         interest thereon for the Compensation Period at a rate per annum equal
         to the rate of interest applicable to the applicable Borrowing. Nothing
         herein shall be deemed to relieve any Lender from its obligation to
         fulfill its Commitment or to prejudice any rights which the
         Administrative Agent or the Borrower may have against any Lender as a
         result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender or the Borrower with
         respect to any amount owing under this subsection (c) shall be
         conclusive, absent manifest error.

         (e) If any Lender makes available to the Administrative Agent funds for
any Loan to be made by such Lender as provided in the foregoing provisions of
this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension
set forth in Article V are not satisfied or waived in accordance with the terms
hereof, the Administrative Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest.

         (f) The obligations of the Lenders hereunder to make Loans and to fund
participations in Letters of Credit and Swing Line Loans are several and not
joint. The failure of any Lender to make any Loan or to fund any such
participation on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan or purchase
its participation.

                                       46
<PAGE>

         (g) Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

2.13 Sharing of Payments.

         If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Loans made by it, or the participations in L/C
Obligations or in Swing Line Loans held by it (but not including any amounts
applied by the Swing Line Lender to outstanding Swing Line Loans), any payment
(whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) in excess of its ratable share (or other share contemplated
hereunder) thereof, such Lender shall immediately (a) notify the Administrative
Agent of such fact, and (b) purchase from the other Lenders such participations
in the Loans made by them and/or such subparticipations in the participations in
L/C Obligations or Swing Line Loans held by them, as the case may be, as shall
be necessary to cause such purchasing Lender to share the excess payment in
respect of such Loans or such participations, as the case may be, pro rata with
each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from the purchasing Lender under any of the
circumstances described in Section 11.06 (including pursuant to any settlement
entered into by the purchasing Lender in its discretion), such purchase shall to
that extent be rescinded, and each other Lender shall repay to the purchasing
Lender the purchase price paid therefor, together with an amount equal to such
paying Lender's ratable share (according to the proportion of (i) the amount of
such paying Lender's required repayment to (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered, without
further interest thereon. The Borrower agrees that any Lender so purchasing a
participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject
to Section 11.09) with respect to such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such participation.
The Administrative Agent will keep records (which shall be conclusive and
binding in the absence of manifest error) of participations purchased under this
Section and will in each case notify the Lenders following any such purchases or
repayments. Each Lender that purchases a participation pursuant to this Section
shall from and after such purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased.

                                   ARTICLE III

                     TAXES, YIELD PROTECTION AND ILLEGALITY

3.01 Taxes.

         (a) Any and all payments by any Loan Party to or for the account of the
Administrative Agent or any Lender under any Loan Document shall be made free
and clear of, and without deduction for, any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar charges,
and liabilities being hereinafter referred to as "Taxes"). If any Loan Party
shall be required by any Laws to deduct any Taxes from or in respect of any

                                       47
<PAGE>

sum payable under any Loan Document to the Administrative Agent or any Lender,
(i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section), each of the Administrative Agent and such Lender receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) such Loan Party shall make such deductions, (iii) such Loan Party
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable Laws, and (iv) within thirty days after
the date of such payment, such Loan Party shall furnish to the Administrative
Agent (which shall forward the same to such Lender) the original or a certified
copy of a receipt or other document evidencing payment thereof.

         (b) In addition, the Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

         (c) If the Borrower shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the
Administrative Agent or to such Lender, as the case may be, at the time interest
is paid, such additional amount that the Administrative Agent or such Lender
specifies is necessary to preserve the after-tax yield (after factoring in all
taxes, including taxes imposed on or measured by net income) that the
Administrative Agent or such Lender would have received if such Taxes or Other
Taxes had not been imposed.

         (d) The Borrower agrees to indemnify the Administrative Agent and each
Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section) paid by the Administrative Agent and such Lender, (ii) amounts
payable under Section 3.01(c) and (iii) any liability (including additions to
tax, penalties, interest and expenses, unless such penalties, interest or
expenses result solely from a delay by the Administrative Agent or such Lender
in notifying the Borrower of the existence of such initial liability) arising
therefrom or with respect thereto, in each case whether or not such Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. Payment under this subsection (d) shall be made within
thirty days after the date the Lender or the Administrative Agent makes a demand
therefor.

         Notwithstanding anything to the contrary contained herein, the Borrower
shall not be required to make any payments to any Lender pursuant to this
Section 3.01 relating to any Taxes or Other Taxes paid by a Lender more than 180
days prior to such Lender's request for any additional payment or compensation
pursuant to this Section 3.01.

3.02 Illegality.

         If any Lender reasonably determines that any Law has made it unlawful,
or that any Governmental Authority has asserted that it is unlawful, for any
Lender or its applicable Lending Office to make, maintain or fund Eurodollar
Rate Loans, or to determine or charge interest rates based upon the Eurodollar
Rate, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans,

                                       48
<PAGE>

either on the last day of the Interest Period therefor, if such Lender may
lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower
shall also pay accrued interest on the amount so prepaid or converted. Each
Lender agrees to designate a different Lending Office if such designation will
avoid the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.

3.03 Inability to Determine Rates.

         If the Administrative Agent reasonably determines that for any reason
adequate and reasonable means do not exist for determining the Eurodollar Base
Rate for any requested Interest Period with respect to a proposed Eurodollar
Rate Loan, or that the Eurodollar Base Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan does not adequately and fairly
reflect the cost to the Lenders of funding such Loan, the Administrative Agent
will promptly notify the Borrower and all Lenders. Thereafter, the obligation of
the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent revokes such notice. Upon receipt of such notice, the
Borrower may revoke any pending request for a Borrowing, conversion or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Borrowing of Base Rate Loans in the
amount specified therein.

3.04 Increased Cost and Reduced Return; Capital Adequacy.

         (a) If any Lender reasonably determines that as a result of the
introduction of or any change in or in the interpretation of any Law, or such
Lender's compliance therewith, there shall be any increase in the cost to such
Lender of agreeing to make or making, funding or maintaining Eurodollar Rate
Loans or (as the case may be) issuing or participating in Letters of Credit, or
a reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 3.01 shall govern), (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or
any foreign jurisdiction or any political subdivision of either thereof under
the Laws of which such Lender is organized or has its Lending Office, and (iii)
reserve requirements utilized, as to Eurodollar Rate Loans, in the determination
of the Eurodollar Rate), then from time to time upon demand of such Lender (with
a copy of such demand to the Administrative Agent), the Borrower shall pay to
such Lender such additional amounts as will compensate such Lender for such
increased cost or reduction.

         (b) If any Lender reasonably determines that the introduction of any
Law regarding capital adequacy or any change therein or in the interpretation
thereof, or compliance by such Lender (or its Lending Office) therewith, has the
effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of such Lender's
obligations hereunder (taking into consideration its policies with respect to
capital adequacy and such Lender's desired return on capital), then from time to
time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such reduction.

         (c) The Lenders agree to notify the Borrower of any event occurring
after the Closing Date entitling the Lender to compensation under any of the
preceding subsections of this Section 3.04 as promptly as practicable, provided,
however, that no Lender shall be entitled to claim any compensation under any of
the preceding subsections of this Section if such Lender fails to provide such
notice to the Borrower within 180 days of the date such Lender becomes aware of
the occurrence of the event giving rise to the claim for such compensation.

                                       49
<PAGE>

3.05 Funding Losses.

         Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any loss, cost or expense incurred by it as a
result of:

                  (a) any continuation, conversion, payment or prepayment of any
         Eurodollar Rate Loan on a day other than the last day of the Interest
         Period for such Loan (whether voluntary, mandatory, automatic, by
         reason of acceleration, or otherwise);

                  (b) any failure by the Borrower (for a reason other than the
         failure of such Lender to make a Loan) to prepay, borrow, continue or
         convert any Eurodollar Rate Loan on the date or in the amount notified
         by the Borrower; or

                  (c) any assignment of a Eurodollar Rate Loan on a day other
         than the last day of the Interest Period therefor as a result of:

                           (i) a request by the Borrower pursuant to Section
                  11.01 or Section 11.16; or

                           (ii) an assignment by Bank of America pursuant to
                  Section 11.07(b) as part of the primary syndication of the
                  Commitments and Loans during the 180-day period immediately
                  following the Closing Date, provided that Bank of America
                  agrees to use reasonable efforts to reduce the breakage costs
                  payable by the Borrower in connection therewith (including,
                  without limitation, to the extent reasonably practical,
                  closing such assignments at the end of Interest Periods of
                  outstanding Eurodollar Loans);

including any loss of anticipated profits and any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were obtained.
The Borrower shall also pay any customary administrative fees charged by such
Lender in connection with the foregoing.

         For purposes of calculating amounts payable by the Borrower to the
Lenders under this Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining
the Eurodollar Rate for such Loan by a matching deposit or other borrowing in
the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.

         Notwithstanding anything to the contrary contained herein, the Borrower
shall not be required to make any payments to any Lender pursuant to this
Section 3.05 relating to any loss, cost or expense incurred by a Lender more
than 180 days prior to such Lender's request for any additional payment or
compensation pursuant to this Section 3.05.

3.06 Matters Applicable to all Requests for Compensation.

         (a) A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods.

                                       50
<PAGE>

         (b) Upon any Lender's making a claim for compensation under Section
3.01 or 3.04, the Borrower may replace such Lender in accordance with Section
11.16.

3.07 Survival.

         All of the Borrower's obligations under this Article III shall survive
termination of the Aggregate Revolving Commitments and repayment of all other
Obligations hereunder.

                                   ARTICLE IV

                                    GUARANTY

4.01 The Guaranty.

         Each of the Guarantors hereby jointly and severally guarantees to each
Lender, each Affiliate of a Lender that enters into a Swap Contract, and the
Administrative Agent as hereinafter provided, as primary obligor and not as
surety, the prompt payment of the Obligations in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) strictly in accordance with the terms thereof.
The Guarantors hereby further agree that if any of the Obligations are not paid
in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise), the
Guarantors will, jointly and severally, promptly pay the same, without any
demand or notice whatsoever, and that in the case of any extension of time of
payment or renewal of any of the Obligations, the same will be promptly paid in
full when due (whether at extended maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) in accordance
with the terms of such extension or renewal.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Loan Documents or Swap Contracts, the obligations of each
Guarantor under this Agreement and the other Loan Documents shall be limited to
an aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under the Debtor Relief Laws or any comparable
provisions of any applicable state law.

4.02 Obligations Unconditional.

         The obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Loan Documents or Swap
Contracts, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor, it being the intent of this Section 4.02 that the obligations of the
Guarantors hereunder shall be absolute and unconditional under any and all
circumstances. Each Guarantor agrees that such Guarantor shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other Guarantor for amounts paid under this Article IV until such time as
the Obligations have been paid in full and the Commitments and Letters of Credit
have expired or terminated. Without limiting the generality of the foregoing, it
is agreed that, to the fullest extent permitted by law, the occurrence of any
one or more of the following shall not alter or impair the liability of any
Guarantor hereunder, which shall remain absolute and unconditional as described
above:

                                       51
<PAGE>

                  (a) at any time or from time to time, without notice to any
         Guarantor, the time for any performance of or compliance with any of
         the Obligations shall be extended, or such performance or compliance
         shall be waived;

                  (b) any of the acts mentioned in any of the provisions of any
         of the Loan Documents, any Swap Contract between any Loan Party and any
         Lender, or any Affiliate of a Lender, or any other agreement or
         instrument referred to in the Loan Documents or such Swap Contracts
         shall be done or omitted;

                  (c) the maturity of any of the Obligations shall be
         accelerated, or any of the Obligations shall be modified, supplemented
         or amended in any respect, or any right under any of the Loan
         Documents, any Swap Contract between any Loan Party and any Lender, or
         any Affiliate of a Lender, or any other agreement or instrument
         referred to in the Loan Documents or such Swap Contracts shall be
         waived or any other guarantee of any of the Obligations or any security
         therefor shall be released, impaired or exchanged in whole or in part
         or otherwise dealt with;

                  (d) any Lien granted to, or in favor of, the Administrative
         Agent or any Lender or Lenders as security for any of the Obligations
         shall fail to attach or be perfected; or

                  (e) any of the Obligations shall be determined to be void or
         voidable (including, without limitation, for the benefit of any
         creditor of any Guarantor) or shall be subordinated to the claims of
         any Person (including, without limitation, any creditor of any
         Guarantor).

         With respect to its obligations hereunder, each Guarantor hereby
expressly waives diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that the Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against any Person under
any of the Loan Documents, any Swap Contract between any Loan Party and any
Lender, or any Affiliate of a Lender, or any other agreement or instrument
referred to in the Loan Documents or such Swap Contracts, or against any other
Person under any other guarantee of, or security for, any of the Obligations.

4.03 Reinstatement.

         The obligations of the Guarantors under this Article IV shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result
of any proceedings in bankruptcy or reorganization or otherwise, and each
Guarantor agrees that it will indemnify the Administrative Agent and each Lender
on demand for all reasonable costs and expenses (including, without limitation,
fees and expenses of counsel) incurred by the Administrative Agent or such
Lender in connection with such rescission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

4.04 Certain Additional Waivers.

         Without limiting the generality of the provisions of this Article IV,
each Guarantor hereby specifically waives the benefits of N.C. Gen. Stat.
Sections 26-7 through 26-9, inclusive, to the extent applicable. Each Guarantor
further agrees that such Guarantor shall have no right of recourse to security
for the Obligations, except through the exercise of rights of subrogation
pursuant to Section 4.02 and through the exercise of rights of contribution
pursuant to Section 4.06.

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<PAGE>

4.05 Remedies.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Obligations may be declared to be forthwith due
and payable as provided in Section 9.02 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section
9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing the Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or the Obligations being deemed to have become
automatically due and payable), the Obligations (whether or not due and payable
by any other Person) shall forthwith become due and payable by the Guarantors
for purposes of Section 4.01. The Guarantors acknowledge and agree that their
obligations hereunder are secured in accordance with the terms of the Collateral
Documents and that the Lenders may exercise their remedies thereunder in
accordance with the terms thereof.

4.06 Rights of Contribution.

         The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment. The
payment obligations of any Guarantor under this Section 4.06 shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been paid in full and the Commitments have expired or
terminated, and none of the Guarantors shall exercise any right or remedy under
this Section 4.06 against any other Guarantor until such Obligations have been
paid in full and the Commitments have expired or terminated. For purposes of
this Section 4.06, (a) "Excess Payment" means the amount paid by any Guarantor
in excess of its Ratable Share of any Guaranteed Obligations; (b) "Ratable
Share" means, for any Guarantor in respect of any payment of Obligations, the
ratio (expressed as a percentage) as of the date of such payment of Guaranteed
Obligations of (i) the amount by which the aggregate present fair salable value
of all of its assets and properties exceeds the amount of all debts and
liabilities of such Guarantor (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of such Guarantor
hereunder) to (ii) the amount by which the aggregate present fair salable value
of all assets and other properties of all of the Loan Parties exceeds the amount
of all of the debts and liabilities (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of the
Loan Parties hereunder) of the Loan Parties; provided, however, that, for
purposes of calculating the Ratable Shares of the Guarantors in respect of any
payment of Obligations, any Guarantor that became a Guarantor subsequent to the
date of any such payment shall be deemed to have been a Guarantor on the date of
such payment and the financial information for such Guarantor as of the date
such Guarantor became a Guarantor shall be utilized for such Guarantor in
connection with such payment; (c) "Contribution Share" means, for any Guarantor
in respect of any Excess Payment made by any other Guarantor, the ratio
(expressed as a percentage) as of the date of such Excess Payment of (i) the
amount by which the aggregate present fair salable value of all of its assets
and properties exceeds the amount of all debts and liabilities of such Guarantor
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of such Guarantor hereunder) to (ii) the amount by
which the aggregate present fair salable value of all assets and other
properties of the Loan Parties other than the maker of such Excess Payment
exceeds the amount of all of the debts and liabilities (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of the Loan Parties) of the Loan Parties other than the maker of
such Excess Payment; provided, however, that, for purposes of calculating the
Contribution Shares of the Guarantors in respect of any Excess Payment, any
Guarantor that became a Guarantor subsequent to the date of any such Excess
Payment shall be deemed to have been a Guarantor on the date of such Excess
Payment and the financial information for such Guarantor as of the date such
Guarantor became a Guarantor shall be utilized for such Guarantor in connection
with such Excess Payment; and (d) "Guaranteed Obligations" means the Obligations
guaranteed by the Guarantors pursuant to this Article IV. This Section 4.06
shall not

                                       53
<PAGE>

be deemed to affect any right of subrogation, indemnity, reimbursement or
contribution that any Guarantor may have under Law against the Borrower in
respect of any payment of Guaranteed Obligations. Notwithstanding the foregoing,
all rights of contribution against any Guarantor shall terminate from and after
such time, if ever, that such Guarantor shall be relieved of its obligations in
accordance with Section 10.11.

4.07 Guarantee of Payment; Continuing Guarantee.

         The guarantee in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

                                    ARTICLE V

                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

5.01 Conditions of Initial Credit Extension.

         The obligation of each Lender to make its initial Credit Extension
hereunder is subject to satisfaction of the following conditions precedent:

                  (a) Loan Documents. Receipt by the Administrative Agent of
         executed counterparts of this Agreement and the other Loan Documents,
         each properly executed by a Responsible Officer of the signing Loan
         Party and, in the case of this Agreement, by each Lender.

                  (b) Opinions of Counsel. Receipt by the Administrative Agent
         of favorable opinions of legal counsel to the Loan Parties, addressed
         to the Administrative Agent and each Lender, dated as of the Closing
         Date, and in form and substance satisfactory to the Administrative
         Agent.

                  (c) Financial Statements. The Administrative Agent shall have
         received:

                           (i) consolidated financial statements of the Borrower
                  and its Subsidiaries for the fiscal years ended December 31,
                  2001 and December 31, 2002, including balance sheets and
                  income and cash flow statements, in each case, audited by
                  independent public accountants of recognized national standing
                  and prepared in conformity with GAAP; and

                           (ii) unaudited consolidated financial statements of
                  the Borrower and its Subsidiaries for the nine month period
                  ending September 30, 2003, including balance sheets and
                  statements of income or operations, shareholders' equity and
                  cash flows (the "Interim Financial Statements").

                  (d) No Material Adverse Change. There shall not have occurred
         a material adverse change since December 31, 2002 in the business,
         assets, properties, liabilities (actual or contingent), operations,
         condition (financial or otherwise) or prospects of the Borrower and its
         Subsidiaries taken as a whole.

                  (e) Litigation. There shall not exist any action, suit,
         investigation or proceeding pending or, to the knowledge of the
         Responsible Officers of the Borrower, threatened in any court or before
         an arbitrator or Governmental Authority that could reasonably be
         expected to have a Material Adverse Effect.

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<PAGE>

                  (f) Organization Documents, Resolutions, Etc. Receipt by the
         Administrative Agent of the following, each of which shall be originals
         or facsimiles (followed promptly by originals), in form and substance
         satisfactory to the Administrative Agent and its legal counsel:

                           (i) copies of the Organization Documents of each Loan
                  Party certified to be true and complete as of a recent date by
                  the appropriate Governmental Authority of the state or other
                  jurisdiction of its incorporation or organization, where
                  applicable, and certified by a secretary or assistant
                  secretary of such Loan Party to be true and correct as of the
                  Closing Date;

                           (ii) such certificates of resolutions or other
                  action, incumbency certificates and/or other certificates of
                  Responsible Officers of each Loan Party as the Administrative
                  Agent may require evidencing the identity, authority and
                  capacity of each Responsible Officer thereof authorized to act
                  as a Responsible Officer in connection with this Agreement and
                  the other Loan Documents to which such Loan Party is a party;
                  and

                           (iii) such documents and certifications as the
                  Administrative Agent may reasonably require to evidence that
                  each Loan Party is duly organized or formed, and is validly
                  existing, in good standing and qualified to engage in business
                  in its state of organization or formation, the state of its
                  principal place of business and each other jurisdiction where
                  its ownership, lease or operation of properties or the conduct
                  of its business requires such qualification, except to the
                  extent that failure to do so could not reasonably be expected
                  to have a Material Adverse Effect.

                  (g) Perfection and Priority of Liens. Receipt by the
         Administrative Agent of all certificates evidencing any certificated
         Capital Stock pledged to the Administrative Agent pursuant to the
         Pledge Agreement, together with duly executed in blank, undated stock
         powers attached thereto (unless, with respect to the pledged Capital
         Stock of any Foreign Subsidiary, such stock powers are deemed
         unnecessary by the Administrative Agent in its reasonable discretion
         under the law of the jurisdiction of incorporation of such Person).

                  (h) Repayment of Existing Credit Agreements. Receipt by the
         Administrative Agent of satisfactory evidence that all outstanding
         amounts under the Borrower's existing credit agreements dated July 1,
         2002 have been simultaneously repaid in full and the commitments
         thereunder have been terminated.

                  (i) Closing Certificate. Receipt by the Administrative Agent
         of a certificate signed by a Responsible Officer of the Borrower
         certifying that the conditions specified in Sections 5.01(d) and (e)
         and Sections 5.02(a), (b) and (c) have been satisfied.

                  (j) Fees. Receipt by the Administrative Agent and the Lenders
         of any fees required to be paid on or before the Closing Date.

                  (k) Attorney Costs. Unless waived by the Administrative Agent,
         the Borrower shall have paid all Attorney Costs of the Administrative
         Agent to the extent invoiced prior to or on the Closing Date, plus such
         additional amounts of Attorney Costs as shall constitute its reasonable
         estimate of Attorney Costs incurred or to be incurred by it through the
         closing proceedings (provided that such estimate shall not thereafter
         preclude a final settling of accounts between the Borrower and the
         Administrative Agent).

                                       55
<PAGE>

5.02 Conditions to all Credit Extensions.

         The obligation of each Lender to honor any Request for Credit Extension
(including making any Term Loan or Incremental Term Loan) is subject to the
following conditions precedent:

                  (a) The representations and warranties of the Borrower and
         each other Loan Party contained in Article VI or any other Loan
         Document shall be true and correct in all material respects on and as
         of the date of such Credit Extension, except to the extent that such
         representations and warranties specifically refer to an earlier date,
         in which case they shall be true and correct as of such earlier date,
         and except that for purposes of this Section 5.02, the representations
         and warranties contained in subsections (a) and (b) of Section 6.05
         shall be deemed to refer to the most recent statements furnished
         pursuant to clauses (a) and (b), respectively, of Section 7.01.

                  (b) No Default shall exist, or would result from such proposed
         Credit Extension.

                  (c) There shall not have been commenced against the Borrower
         or any Subsidiary an involuntary case under any applicable Debtor
         Relief Law, or any case, proceeding or other action for the appointment
         of a receiver, liquidator, assignee, custodian, trustee, sequestrator
         (or similar official) of such Person or for any substantial part of its
         Property or for the winding up or liquidation of its affairs, and such
         involuntary case or other case, proceeding or other action shall remain
         undismissed.

                  (d) The Administrative Agent and, if applicable, the
         applicable L/C Issuer or the Swing Line Lender shall have received a
         Request for Credit Extension in accordance with the requirements
         hereof.

                  (e) With respect to the funding of that portion of the Term
         Loan to be used to fund the Titan Acquisition, (i) receipt by the
         Administrative Agent of a Pro Forma Compliance Certificate from the
         Borrower demonstrating that, upon giving effect to the Titan
         Acquisition, (A) the Consolidated Leverage Ratio is less than or equal
         to 2.25 to 1.0 and (B) the Loan Parties are in compliance with the
         financial covenants set forth in Section 8.11 as of the most recent
         fiscal quarter for which the Borrower has delivered financial
         statements pursuant to Section 7.01(a) or (b), (ii) receipt by
         Administrative Agent of a representation from the Borrower that all of
         the provisions of clauses (i) through (viii) of the definition of
         "Permitted Acquisition" have been or will be satisfied by the Borrower
         within the time periods provided for in such clauses with respect to
         the Titan Acquisition and (iii) receipt by the Lenders of all fees
         required to be paid in connection with such funding.

         Each Request for Credit Extension submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in
Sections 5.02(a), (b) and (c) have been satisfied on and as of the date of the
applicable Credit Extension.

5.03 Further Conditions to the Borrowing of Incremental Term Loans.

         The obligation of any Lender to make an Incremental Term Loan is
subject to the satisfaction of the following conditions:

                  (a) Incremental Term Notes. On or prior to any Incremental
         Term Loan Borrowing Date, there shall have been delivered to the
         Administrative Agent for the account of each Lender making an
         Incremental Term Loan, an Incremental Term Note executed by the
         Borrower;

                                       56
<PAGE>

                  (b) Fees, etc. On any Incremental Term Loan Borrowing Date,
         all costs, fees and expenses and all other compensation (including,
         without limitation, Attorney Costs of the Administrative Agent to the
         extent invoiced prior to the applicable Incremental Term Loan Borrowing
         Date) payable to the Administrative Agent and the Lenders shall have
         been paid to the extent then due; and

                  (c) Certificate. Receipt from the Borrower of a calculation
         reasonably satisfactory to the Administrative Agent demonstrating that
         the Consolidated Leverage Ratio on a Pro Forma Basis is less than or
         equal to 2.25 to 1.0 in each case after giving effect to the applicable
         Incremental Term Loan as of the Incremental Term Loan Borrowing Date.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         The Loan Parties represent and warrant to the Administrative Agent and
the Lenders that:

6.01 Existence, Qualification and Power.

         Each Loan Party (a) is a corporation, partnership or limited liability
company duly organized or formed, validly existing and in good standing under
the Laws of the jurisdiction of its incorporation or organization, (b) has all
requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) own its assets and carry on its
business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and is licensed and
in good standing under the Laws of each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in clause (b)(i) or
(c), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

6.02 Authorization; No Contravention.

         The execution, delivery and performance by each Loan Party of each Loan
Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not (a) contravene
the terms of any of such Person's Organization Documents; (b) conflict with or
result in any breach or contravention of, or the creation of any Lien under (i)
any material Contractual Obligation to which such Person is a party or (ii) any
order, injunction, writ or decree of any Governmental Authority or any arbitral
award to which such Person or its property is subject; or (c) violate any Law
(including, without limitation, Regulation U or Regulation X issued by the FRB).

6.03 Governmental Authorization; Other Consents.

         No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority or any other Person is
necessary or required in connection with the execution, delivery or performance
by, or enforcement against, any Loan Party of this Agreement or any other Loan
Document other than (i) those that have already been obtained and are in full
force and effect and (ii) filings to perfect the Liens created by the Collateral
Documents.

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6.04 Binding Effect.

         This Agreement and each other Loan Document has been duly executed and
delivered by each Loan Party that is party thereto. This Agreement and each
other Loan Document constitutes a legal, valid and binding obligation of each
Loan Party that is party thereto, enforceable against each such Loan Party in
accordance with its terms; except as the same may be limited by bankruptcy,
insolvency, and other similar laws affecting the rights of creditors generally
and the availability of equitable remedies for the enforcement of certain
obligations contained herein or therein may be limited by equitable principles
generally.

6.05 Financial Statements; No Material Adverse Effect.

         (a) The Audited Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present in all material respects
the financial condition of the Borrower and its Subsidiaries as of the date
thereof and their results of operations for the period covered thereby in
accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; and (iii) show all material
indebtedness and other liabilities, direct or contingent, of the Borrower and
its Subsidiaries as of the date thereof, including liabilities for taxes,
commitments and Indebtedness in accordance with GAAP.

         (b) The Interim Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present in all material respects
the financial condition of the Borrower and its Subsidiaries as of the date
thereof and their results of operations for the period covered thereby, subject,
in the case of clauses (i) and (ii), to the absence of footnotes and to normal
year-end audit adjustments; and (iii) show all material indebtedness and other
liabilities, direct or contingent, of the Borrower and its Subsidiaries as of
the date thereof, including liabilities for taxes, material commitments and
Indebtedness in accordance with GAAP.

         (c) From the date of the Audited Financial Statements to and including
the Closing Date, there has been no Disposition by the Borrower or any
Subsidiary, or any Involuntary Disposition, of any material part of the business
or Property of the Borrower and its Subsidiaries, taken as a whole, and no
purchase or other acquisition by any of them of any business or property
(including any Capital Stock of any Person other than the Borrower or any of its
Subsidiaries) material in relation to the consolidated financial condition of
the Borrower and its Subsidiaries, taken as a whole, in each case, which is not
reflected in the foregoing financial statements or in the notes thereto or has
not otherwise been disclosed in writing to the Lenders on or prior to the
Closing Date.

         (d) The financial statements delivered pursuant to Section 7.01(a) and
(b) have been prepared in accordance with GAAP (except as may otherwise be
permitted under Section 7.01(a) and (b)) and present fairly in all material
respects (on the basis disclosed in the footnotes to such financial statements)
the consolidated financial condition, results of operations and cash flows of
the Borrower and its Subsidiaries as of the date of such financial statements
and for the periods covered thereby.

         (e) Since December 31, 2002, there has been no event or circumstance
that has had or could reasonably be expected to have a Material Adverse Effect.

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6.06 Litigation.

         There are no actions, suits, proceedings, claims or disputes pending
or, to the knowledge of the Responsible Officers of the Loan Parties, threatened
or contemplated, at law, in equity, in arbitration or before any Governmental
Authority, by or against the Borrower or any of its Subsidiaries or against any
of their properties or revenues that (a) purport to affect or pertain to this
Agreement or any other Loan Document, or any of the transactions contemplated
hereby or (b) could reasonably be expected to have a Material Adverse Effect.

6.07 No Default.

         (a) Neither the Borrower nor any Subsidiary is in default under or with
respect to any Contractual Obligation which default could reasonably be expected
to have a Material Adverse Effect.

         (b) No Default has occurred and is continuing.

6.08 Ownership of Property; Liens.

         Each of the Borrower and its Subsidiaries has good record and
marketable title in fee simple to, or valid leasehold interests in, all real
property necessary or used in the ordinary conduct of its business, except for
such defects in title as could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. The property of the Borrower and
its Subsidiaries is subject to no Liens, other than Permitted Liens.

6.09 Environmental Compliance.

         Except as could not reasonably be expected to have a Material Adverse
Effect:

                  (a) Each of the Facilities and all operations at the
         Facilities are in compliance with all applicable Environmental Laws,
         and there is no violation of any Environmental Law with respect to the
         Facilities or the Businesses, and there are no conditions relating to
         the Facilities or the Businesses that could give rise to liability
         under any applicable Environmental Laws.

                  (b) None of the Facilities contains, or has previously
         contained, any Hazardous Materials at, on or under the Facilities in
         amounts or concentrations that constitute or constituted a violation
         of, or could give rise to liability under, Environmental Laws.

                  (c) Neither the Borrower nor any Subsidiary has received any
         written or verbal notice of, or inquiry from any Governmental Authority
         regarding, any violation, alleged violation, non-compliance, liability
         or potential liability regarding environmental matters or compliance
         with Environmental Laws with regard to any of the Facilities or the
         Businesses, nor does any Responsible Officer of any Loan Party have
         knowledge or reason to believe that any such notice will be received or
         is being threatened.

                  (d) Hazardous Materials have not been transported or disposed
         of from the Facilities, or generated, treated, stored or disposed of
         at, on or under any of the Facilities or any other location, in each
         case by or on behalf the Borrower or any Subsidiary in violation of, or
         in a manner that would be reasonably likely to give rise to liability
         under, any applicable Environmental Law.

                  (e) No judicial proceeding or governmental or administrative
         action is pending or, to the knowledge of the Responsible Officers of
         the Loan Parties, threatened, under any

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<PAGE>

         Environmental Law to which the Borrower or any Subsidiary is or will be
         named as a party, nor are there any consent decrees or other decrees,
         consent orders, administrative orders or other orders, or other
         administrative or judicial requirements outstanding under any
         Environmental Law with respect to the Borrower, any Subsidiary, the
         Facilities or the Businesses.

                  (f) There has been no release or, to the knowledge of the
         Responsible Officers of the Loan Parties, threat of release of
         Hazardous Materials at or from the Facilities, or arising from or
         related to the operations (including, without limitation, disposal) of
         the Borrower or any Subsidiary in connection with the Facilities or
         otherwise in connection with the Businesses, in violation of, or in
         amounts or in a manner that could give rise to liability under
         Environmental Laws.

6.10 Insurance.

         The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where the Borrower or the applicable Subsidiary
operates. The insurance coverage of the Loan Parties as in effect on the Closing
Date is outlined as to carrier, policy number, expiration date, type, amount and
deductibles on Schedule 6.10.

6.11 Taxes.

         The Borrower and its Subsidiaries have filed all federal, state and
other material tax returns and reports required to be filed and have paid all
federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except for those that are being contested in
good faith by appropriate proceedings diligently conducted and for which
adequate reserves have been provided in accordance with GAAP. There is no
proposed tax assessment against the Borrower or any Subsidiary that would, if
made, have a Material Adverse Effect.

6.12 ERISA Compliance.

         (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Internal Revenue Code and other federal or
state Laws. Each Plan that is intended to qualify under Section 401(a) of the
Internal Revenue Code has received a favorable determination letter from the IRS
or an application for such a letter is currently being processed by the IRS with
respect thereto and, to the knowledge of the Responsible Officers of the Loan
Parties, nothing has occurred which would prevent, or cause the loss of, such
qualification. Each Loan Party and each ERISA Affiliate has made all required
contributions to each Plan subject to Section 412 of the Internal Revenue Code,
and no application for a funding waiver or an extension of any amortization
period pursuant to Section 412 of the Internal Revenue Code has been made with
respect to any Plan.

         (b) There are no pending or, to the knowledge of the Responsible
Officers of the Loan Parties, threatened claims, actions or lawsuits, or action
by any Governmental Authority, with respect to any Plan that could be reasonably
be expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan that has resulted or could reasonably be expected to result in a
Material Adverse Effect.

         (c) (i) No ERISA Event has occurred or is reasonably expected to occur;
(ii) no Pension Plan has any Unfunded Pension Liability; (iii) no Loan Party nor
any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA with respect to any Pension Plan (other

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than premiums due and not delinquent under Section 4007 of ERISA); (iv) no Loan
Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Sections 4201 or
4243 of ERISA with respect to a Multiemployer Plan; and (v) no Loan Party nor
any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

6.13 Subsidiaries.

         Set forth on Schedule 6.13 is a complete and accurate list as of the
Closing Date of each Subsidiary, together with (i) jurisdiction of formation,
(ii) number of shares of each class of Capital Stock outstanding, (iii) number
and percentage of outstanding shares of each class owned (directly or
indirectly) by the Borrower or any Subsidiary and (iv) number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Capital Stock of each Subsidiary is validly issued, fully paid and
non-assessable.

6.14 Margin Regulations; Investment Company Act; Public Utility Holding Company
Act.

         (a) The Borrower is not engaged and will not engage, principally or as
one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock.
Following the application of the proceeds of each Borrowing or drawing under
each Letter of Credit, not more than 25% of the value of the assets (either of
the Borrower only or of the Borrower and its Subsidiaries on a consolidated
basis) subject to the provisions of Section 8.01 or Section 8.05 or subject to
any restriction contained in any agreement or instrument between the Borrower
and any Lender or any Affiliate of any Lender relating to Indebtedness and
within the scope of Section 9.01(e) will be margin stock.

         (b) None of the Borrower, any Person Controlling the Borrower, or any
Subsidiary (i) is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, or (ii) is or is required to be registered as an "investment
company" under the Investment Company Act of 1940.

6.15 Disclosure.

         Each Loan Party has disclosed to the Administrative Agent and the
Lenders all agreements, instruments and corporate or other restrictions to which
it or any of its Subsidiaries is subject, and all other matters known to it,
that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. No report, financial statement, certificate or
other information furnished (whether in writing or orally) by or on behalf of
any Loan Party to the Administrative Agent or any Lender in connection with the
transactions contemplated hereby or delivered hereunder (as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the Loan Parties represent only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time.

6.16 Compliance with Laws.

         Each of the Borrower and each Subsidiary is in compliance with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its properties, except in such instances in

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which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted, or (b)
the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.

6.17 Intellectual Property; Licenses, Etc.

         The Borrower and its Subsidiaries own, or possess the legal right to
use, all of the trademarks, service marks, trade names, copyrights, patents,
patent rights, franchises, licenses and other intellectual property rights
(collectively, "IP Rights") that are reasonably necessary for the operation of
their respective businesses. Except for such claims and infringements that could
not reasonably be expected to have a Material Adverse Effect, no claim has been
asserted and is pending by any Person challenging or questioning the use of any
IP Rights or the validity or effectiveness of any IP Rights, and no Loan Party
knows of any such claim, and, to the knowledge of the Responsible Officers of
the Loan Parties, the use of any IP Rights by the Borrower or any Subsidiary or
the granting of a right or a license in respect of any IP Rights from the
Borrower or any Subsidiary does not infringe on the rights of any Person.

6.18 Solvency.

         The Loan Parties are Solvent on a consolidated basis.

6.19 Perfection of Security Interests in the Collateral.

         The Collateral Documents create valid security interests in, and Liens
on, the Collateral purported to be covered thereby, which security interests and
Liens are currently perfected security interests and Liens, prior to all other
Liens other than Permitted Liens.

6.20 Business Locations.

         Set forth on Schedule 6.20 is the jurisdiction of organization, tax
payer identification number and organizational identification number of each
Loan Party as of the Closing Date. The exact legal name and state of
organization of each Loan Party is as set forth on the signature pages hereto.

6.21 Brokers' Fees.

         Except as set out in the Fee Letter, neither the Borrower nor any
Subsidiary has any obligation to any Person in respect of any finder's,
broker's, investment banking or other similar fee in connection with any of the
transactions contemplated under the Loan Documents.

6.22 Labor Matters.

         There are no collective bargaining agreements or Multiemployer Plans
covering the employees of the Borrower or any Subsidiary as of the Closing Date,
and neither the Borrower nor any Subsidiary has suffered any strikes, walkouts,
work stoppages or other material labor difficulty within the last five years.

6.23 Compliance with Fraud and Abuse Laws.

         Without limiting any other provision of this Agreement, (a) to the
knowledge of the Responsible Officers of the Loan Parties, neither the Borrower
nor any of its Subsidiaries, nor any of their respective existing officers,
directors or employees is in violation of any applicable material provision of
the Social Security Act and the regulations promulgated thereunder, HIPPA or any
Fraud and Abuse Law, the violation of which would have a Material Adverse Effect
and (b) to the knowledge of the Responsible

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<PAGE>

Officers of the Loan Parties, no Provider is in violation of any applicable
material provision of the Social Security Act and the regulations promulgated
thereunder, HIPPA or any Fraud and Abuse Law, the violation of which would have
a Material Adverse Effect.

6.24 Licensing, Etc.

         Except to the extent it would not reasonably be expected to have a
Material Adverse Effect:

         (a) the Borrower and each of its Subsidiaries and, to the knowledge of
the Responsible Officers of the Loan Parties, each Provider, has, to the extent
applicable: (i) obtained (or been duly assigned) all required certificates of
need or determinations of need as required by the relevant state Governmental
Authority for the acquisition, construction, expansion of, investment in or
operation of its businesses as currently operated; (ii) obtained and maintains
in good standing all required licenses; (iii) to the extent prudent and
customary in the industry in which it is engaged, obtained and maintains
accreditation from all generally recognized accrediting agencies; and (iv)
entered into and maintains in good standing its status as a Medicare provider or
supplier and as a Medicaid provider or supplier; and

         (b) to the knowledge of the Responsible Officers of the Loan Parties,
each Provider is duly licensed by each state, state agency, commission or other
Governmental Authority having jurisdiction over the provision of such services
by such Person in the locations where the Borrower and each its Subsidiaries
conduct business, to the extent such licensing is required to enable such
Provider to provide the professional services provided by such Provider and
otherwise as is necessary to enable the Borrower and each of its Subsidiaries to
operate as currently operated and as contemplated to be operated.

                                   ARTICLE VII

                              AFFIRMATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, the Loan Parties shall and shall cause each
Subsidiary to:

7.01 Financial Statements.

         Deliver to the Administrative Agent (who will make available to the
Lenders), in form and detail reasonably satisfactory to the Administrative Agent
and the Required Lenders:

                  (a) as soon as available, but in any event within ninety days
         after the end of each fiscal year of the Borrower, a consolidated
         balance sheet of the Borrower and its Subsidiaries as at the end of
         such fiscal year, and the related consolidated statements of income or
         operations, stockholders' equity and cash flows for such fiscal year,
         setting forth in each case in comparative form the figures for the
         previous fiscal year, all in reasonable detail and prepared in
         accordance with GAAP, audited and accompanied by a report and opinion
         of Ernst & Young LLP or another independent certified public accountant
         of nationally recognized standing, which report and opinion shall be
         prepared in accordance with generally accepted auditing standards and
         shall not be subject to any "going concern" or like qualification or
         exception or any qualification or exception as to the scope of such
         audit;

                  (b) as soon as available, but in any event within forty-five
         days after the end of each of the first three fiscal quarters of each
         fiscal year of the Borrower, a consolidated balance sheet

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         of the Borrower and its Subsidiaries as at the end of such fiscal
         quarter, and the related consolidated statements of income or
         operations, and cash flows for such fiscal quarter and for the portion
         of the Borrower's fiscal year then ended, setting forth in each case in
         comparative form the figures for the corresponding fiscal quarter of
         the previous fiscal year and the corresponding portion of the previous
         fiscal year, all in reasonable detail and certified by a Responsible
         Officer of the Borrower as fairly presenting in all material respects
         the financial condition, results of operations, shareholders' equity
         and cash flows of the Borrower and its Subsidiaries in accordance with
         GAAP, subject only to normal year-end audit adjustments and the absence
         of footnotes; and

         As to any information contained in materials furnished pursuant to
         Section 7.02(c), the Borrower shall not be separately required to
         furnish such information under clause (a) or (b) above, but the
         foregoing shall not be in derogation of the obligation of the Borrower
         to furnish the information and materials described in subsections (a)
         and (b) above at the times specified therein.

7.02     Certificates; Other Information.

         Deliver to the Administrative Agent (who will provide to the Lenders),
in form and detail reasonably satisfactory to the Administrative Agent:

                  (a) concurrently with the delivery of the financial statements
         referred to in Sections 7.01(a) and (b), a duly completed Compliance
         Certificate signed by a Responsible Officer of the Borrower;

                  (b) as soon as available, and in any event within sixty (60)
         days after the beginning of each fiscal year, beginning with the fiscal
         year ending December 31, 2003, an annual budget and capital
         expenditures budget for the current fiscal year and income statement of
         the Borrower and its Subsidiaries;

                  (c) concurrently with the delivery of the financial statements
         referred to in Sections 7.01(a) and (b), a certificate of a Responsible
         Officer of the Borrower containing information regarding the amount of
         all Dispositions, Involuntary Dispositions, Debt Issuances, Equity
         Issuances and Acquisitions that occurred during the period covered by
         such financial statements;

                  (d) promptly after any request by the Administrative Agent or
         any Lender, copies of any management letters submitted to the board of
         directors (or the audit committee of the board of directors) of the
         Borrower by independent accountants in connection with the accounts or
         books of the Borrower or any Subsidiary, or any audit of any of them;

                  (e) promptly after the same are available, (i) copies of each
         annual report, proxy or financial statement or other report or
         communication sent to the stockholders of the Borrower, and copies of
         all annual, regular, periodic and special reports and registration
         statements which the Borrower may file or be required to file with the
         SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 or
         to a holder of any Indebtedness owed by the Borrower or any Subsidiary
         in its capacity as such a holder alleging the existence of a default
         under such Indebtedness and not otherwise required to be delivered to
         the Administrative Agent pursuant hereto and (ii) upon the reasonable
         request of the Administrative Agent, all material reports and written
         information to and from the United States Environmental Protection
         Agency, or any state or local agency responsible for environmental
         matters, the United States Occupational Health and Safety

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<PAGE>

         Administration, or any state or local agency responsible for health and
         safety matters, or any successor agencies or authorities concerning
         environmental, health or safety matters; and

                  (f) promptly, such additional information regarding the
         business, financial or corporate affairs of the Borrower or any
         Subsidiary, or compliance with the terms of the Loan Documents, as the
         Administrative Agent or any Lender may from time to time reasonably
         request.

         Documents required to be delivered pursuant to Section 7.01(a), (b) or
(c) or Section 7.02(c) (to the extent any such documents are included in
materials otherwise filed with the SEC) may be delivered electronically and if
so delivered, shall be deemed to have been delivered on the date (i) on which
the Borrower posts such documents, or provides a link thereto on the Borrower's
website on the Internet at the website address listed on Schedule 11.02; or (ii)
on which such documents are posted on the Borrower's behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each Lender
and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that: (i)
the Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify (which
may be by facsimile or electronic mail) the Administrative Agent of the posting
of any such documents and provide to the Administrative Agent by electronic mail
electronic versions (i.e., soft copies) of such documents. Notwithstanding
anything contained herein, in every instance the Borrower shall be required to
provide paper copies of the Compliance Certificates required by Section 7.02(a)
to the Administrative Agent (who will make such copies available to the
Lenders). Except for such Compliance Certificates, the Administrative Agent
shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to
monitor compliance by the Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

7.03 Notices.

         (a) Promptly notify the Administrative Agent of the occurrence of any
Default.

         (b) Promptly notify the Administrative Agent of any matter that has
resulted or could reasonably be expected to result in a Material Adverse Effect,
including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary
and any Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting the Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws.

         (c) Promptly notify the Administrative Agent of the occurrence of any
ERISA Event.

         (d) Promptly notify the Administrative Agent of any material change in
accounting policies or financial reporting practices by the Borrower or any
Subsidiary.

         (e) Promptly notify the Administrative Agent (i) upon the knowledge of
a Responsible Officer a Loan Party of the institution of any investigation,
review or proceeding against any Loan Party to suspend, revoke or terminate (or
that may result in the termination of) any Medicaid Provider Agreement or
Medicare Provider Agreement, or any such investigation or proceeding that may
result in an Exclusion Event or (ii) upon the Borrower's receipt of any notice
of loss or threatened loss of accreditation, loss of

                                       65
<PAGE>

participation under any Medical Reimbursement Program or loss of applicable
health care license, in each case, that would reasonably be expected to result
in a Material Adverse Effect.

         Each notice pursuant to this Section 7.03(a) through (e) shall be
accompanied by a statement of a Responsible Officer of the Borrower setting
forth reasonable details of the occurrence referred to therein and stating what
action, if any, the Borrower has taken and proposes to take with respect
thereto. Each notice pursuant to Section 7.03(a) shall describe with reasonable
particularity any and all provisions of this Agreement and any other Loan
Document that have been breached.

7.04 Payment of Obligations.

         Pay and discharge as they shall become due and payable, all its
obligations and liabilities, including (a) all material tax liabilities,
assessments and governmental charges or levies upon it or its properties or
assets, unless they are being contested in good faith by appropriate proceedings
diligently conducted and adequate reserves in accordance with GAAP are being
maintained by the Borrower or such Subsidiary, and (b) all material lawful
claims which, if unpaid, would by law become a Lien upon its property, unless
they are being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves in accordance with GAAP are being maintained by
Borrower or such Subsidiary.

7.05 Preservation of Existence, Etc.

         (a) (i) Preserve, renew and maintain in full force and effect its legal
existence under the Laws of the jurisdiction of its organization except in a
transaction permitted by Section 8.04 or 8.05 and (ii) maintain in full force
and effect its good standing under the Laws of the jurisdiction of its
organization except in a transaction permitted by Section 8.04 or 8.05.

         (b) Take all reasonable action to maintain all rights, privileges,
permits, licenses and franchises necessary or desirable in the normal conduct of
its business, except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

         (c) Preserve or renew all of its material registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

7.06 Maintenance of Properties.

         (a) Maintain, preserve and protect all of its material properties and
equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted.

         (b) Make all necessary repairs to all of its material properties and
equipment and renewals and replacements thereof, except where the failure to do
so could not reasonably be expected to have a Material Adverse Effect.

         (c) Use the standard of care typical in the industry in the operation
and maintenance of its facilities.

7.07 Maintenance of Insurance.

         Maintain in full force and effect insurance (including worker's
compensation insurance, liability insurance, casualty insurance and business
interruption insurance) with financially sound and reputable insurance companies
not Affiliates of the Borrower, in such amounts, with such deductibles and
covering

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such risks as are customarily carried by similarly sized companies engaged in
similar businesses and owning similar properties in localities where the
Borrower or the applicable Subsidiary operates; provided that the Borrower and
its Subsidiaries may reduce the amount of insurance required to be maintained
above to the extent the Borrower and its Subsidiaries establish a self-insurance
program providing insurance coverage in lieu of such insurance.

7.08 Compliance with Laws.

         Comply with the requirements of all Laws (including, but not limited
to, Fraud and Abuse Laws) and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted; or (b)
the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect. The Loan Parties shall further use commercially
reasonable efforts to assure the compliance by all Providers with all applicable
Laws, including, but not limited to, medical licensure and Fraud and Abuse Laws,
relating to their providing of professional services, except for those which, if
violated and full penalties were imposed for such violation, would not cause a
Material Adverse Effect.

7.09 Books and Records.

         (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied shall be made
of all financial transactions and matters involving the assets and business of
the Borrower or such Subsidiary, as the case may be.

         (b) Maintain such books of record and account in material conformity
with all applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Borrower or such Subsidiary, as the case may be.

7.10 Inspection Rights.

         Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its properties,
to examine its corporate, financial and operating records, and make copies
thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, at
such reasonable times during normal business hours and as often as may be
reasonably desired, upon reasonable advance notice to the Borrower; provided
however prior to the occurrence of an Event of Default, the Borrower shall only
be responsible for the expenses of the Administrative Agent in an amount up to
$10,000 in the aggregate; provided, further however, that when an Event of
Default exists, the Administrative Agent or any Lender (or any of their
respective representatives or independent contractors) may do any of the
foregoing at the expense of the Borrower at any time during normal business
hours and without advance notice.

7.11 Use of Proceeds.

         (a) Use the proceeds of the Credit Extensions (other than the
Incremental Term Loans and $175,000,000 of the Term Loan) to finance working
capital, capital expenditures, Permitted Acquisitions, the purchase by the
Borrower of its Capital Stock and other lawful corporate purposes, and (b) use
the proceeds of the Incremental Term Loans for Permitted Acquisitions, to
refinance or redeem Additional Permitted Indebtedness and for fees and expenses
related to the Incremental Term Loans, provided that in no event shall the
proceeds of the Credit Extensions be used in contravention of any Law or of any
Loan Document. The Loan Parties further agree that $175,000,000 of the proceeds
of the Term Loan shall only be used by the Borrower to finance the Titan
Acquisition and fees and expenses related thereto.

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7.12 Additional Subsidiaries.

         Promptly, and in any event, not later than thirty (30) days, after the
acquisition or formation of any Subsidiary:

                  (a) notify the Administrative Agent thereof in writing,
         together with (i) jurisdiction of formation, (ii) number of shares of
         each class of Capital Stock outstanding, (iii) number and percentage of
         outstanding shares of each class owned (directly or indirectly) by the
         Borrower or any Subsidiary and (iv) number and effect, if exercised, of
         all outstanding options, warrants, rights of conversion or purchase and
         all other similar rights with respect thereto; and

                  (b) if such Subsidiary is a wholly owned Domestic Subsidiary,
         cause such Person to (i) become a Guarantor by executing and delivering
         to the Administrative Agent a Joinder Agreement or such other documents
         as the Administrative Agent shall deem appropriate for such purpose,
         and (ii) deliver to the Administrative Agent documents of the types
         referred to in Sections 5.01(f) and (g) and, if required by Section
         7.15, favorable opinions of counsel to such Person (which shall cover,
         among other things, the legality, validity, binding effect and
         enforceability of the documentation referred to in clause (a)), all in
         form, content and scope reasonably satisfactory to the Administrative
         Agent.

         Notwithstanding the foregoing, the Borrower shall have ninety (90) days
         after the Titan Acquisition to satisfy the terms of this Section 7.12
         with respect to the wholly owned Domestic Subsidiaries acquired
         pursuant to the Titan Acquisition.

7.13 ERISA Compliance.

         Do, and cause each of its ERISA Affiliates to do, each of the
following: (a) maintain each Plan in compliance in all material respects with
the applicable provisions of ERISA, the Internal Revenue Code and other
applicable federal or state law; (b) cause each Plan that is qualified under
Section 401(a) of the Internal Revenue Code to maintain such qualification; and
(c) make all required contributions to any Plan subject to Section 412 of the
Internal Revenue Code.

7.14 Pledged Assets.

         Each Loan Party will cause (subject to the time periods permitted by
Section 7.12) (a) 100% of the issued and outstanding Capital Stock of each
Domestic Subsidiary and (b) 65% (or such greater percentage that, due to a
change in an applicable Law after the date hereof, (1) could not reasonably be
expected to cause the undistributed earnings of such Foreign Subsidiary as
determined for United States federal income tax purposes to be treated as a
deemed dividend to such Foreign Subsidiary's United States parent and (2) could
not reasonably be expected to cause any material adverse tax consequences) of
the issued and outstanding Capital Stock entitled to vote (within the meaning of
Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding
Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) in each Foreign Subsidiary directly owned by the Borrower or any
Domestic Subsidiary to be subject at all times to a first priority, perfected
Lien in favor of the Administrative Agent pursuant to the terms and conditions
of the Collateral Documents or such other security documents as the
Administrative Agent shall reasonably request.

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7.15 Opinions of Counsel.

         The Borrower agrees that the Administrative Agent may from time to
time, but not more frequently than once every calendar year absent a Default or
an Event of Default, request in writing a copy of the most recent letter of
in-house counsel and/or outside healthcare counsel issued to the Borrower's
auditors addressing any material loss contingencies as to which such counsel has
devoted substantive attention. Copies of such letters shall be delivered to the
Lenders within ten (10) days after request. Additionally, the Borrower shall,
within twenty (20) days after written request, respond to such questions that
may be raised by the Administrative Agent from time to time regarding the
Borrower and each of its Subsidiaries' compliance with Fraud and Abuse Laws, and
shall engage the assistance of the Borrower's healthcare counsel for the purpose
of responding to such questions if the Administrative Agent so requests.

         Furthermore, in the event the aggregate revenues attributable to the
Non-Opinion Subsidiaries for the four fiscal quarter period most recently ending
constitutes ten percent (10%) or more of the consolidated revenues of the
Borrower and its Subsidiaries for such four fiscal quarter period, the Borrower
agrees that it shall provide a legal opinion from outside counsel (in form and
substance consistent with the opinions delivered pursuant to Section 5.01 or
7.12(b) or otherwise reasonably satisfactory to the Administrative Agent) to the
Administrative Agent within 45 days of such fiscal quarter end with respect to
those Non-Opinion Subsidiaries necessary to cause the aggregate revenues
attributable to the Non-Opinion Subsidiaries for the four fiscal quarter period
most recently ending to be less than ten percent (10%) of the consolidated
revenues of the Borrower and its Subsidiaries for such four fiscal quarter
period. Such legal opinions shall cover, among other things, the legality,
validity, binding effect and enforceability of the Loan Documents with respect
to the applicable Subsidiaries.

                                  ARTICLE VIII

                               NEGATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, no Loan Party shall, nor shall it permit any
Subsidiary to, directly or indirectly:

8.01 Liens.

         Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, other
than the following:

                  (a) Liens pursuant to any Loan Document;

                  (b) Liens existing on the date hereof and listed on Schedule
         8.01 and any renewals or extensions thereof, provided that the property
         covered thereby is not increased and any renewal or extension of the
         obligations secured or benefited thereby is permitted by Section
         8.03(b);

                  (c) Liens (other than Liens imposed under ERISA) for taxes,
         assessments or governmental charges or levies not yet due or which are
         being contested in good faith and by appropriate proceedings diligently
         conducted, if adequate reserves with respect thereto are maintained on
         the books of the applicable Person in accordance with, and to the
         extent required under, GAAP;

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<PAGE>

                  (d) statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and suppliers and other Liens
         imposed by law or pursuant to customary reservations or retentions of
         title arising in the ordinary course of business, provided that such
         Liens secure only amounts not yet due and payable or, if due and
         payable, are unfiled and no other action has been taken to enforce the
         same or are being contested in good faith by appropriate proceedings
         for which adequate reserves determined in accordance with GAAP have
         been established;

                  (e) pledges or deposits in the ordinary course of business in
         connection with workers' compensation, unemployment insurance and other
         social security legislation, other than any Lien imposed by ERISA;

                  (f) deposits to secure the performance of bids, trade
         contracts and leases (other than Indebtedness), statutory obligations,
         surety bonds (other than bonds related to judgments or litigation
         unless permitted under clause (h) below), performance bonds and other
         obligations of a like nature incurred in the ordinary course of
         business;

                  (g) easements, rights-of-way, restrictions and other similar
         encumbrances affecting real property which, in the aggregate, are not
         substantial in amount, and which do not in any case materially detract
         from the value of the property subject thereto or materially interfere
         with the ordinary conduct of the business of the applicable Person;

                  (h) Liens securing judgments for the payment of money (or
         appeal or other surety bonds relating to such judgments) not in excess
         of the Threshold Amount (except to the extent covered by independent
         third-party insurance as to which the insurer does not dispute
         coverage), unless any such judgment remains undischarged for a period
         of more than thirty consecutive days during which execution is not
         effectively stayed;

                  (i) Liens securing Indebtedness permitted under Section
         8.03(e); provided that (i) such Liens do not at any time encumber any
         Property other than the Property (and proceeds thereof) financed by
         such Indebtedness, (ii) the Indebtedness secured thereby does not
         exceed the cost or fair market value, whichever is lower, of the
         Property being acquired on the date of acquisition, and (iii) such
         Liens attach to such Property concurrently with or within ninety days
         after the acquisition thereof;

                  (j) leases or subleases granted to others not interfering in
         any material respect with the business of the Borrower or any of its
         Subsidiaries;

                  (k) any interest of title of a lessor under, and Liens arising
         from UCC financing statements (or equivalent filings, registrations or
         agreements in foreign jurisdictions) relating to, leases permitted by
         this Agreement;

                  (l) Liens deemed to exist in connection with Investments in
         repurchase agreements permitted under Section 8.02;

                  (m) normal and customary rights of setoff upon deposits of
         cash in favor of banks or other depository institutions;

                  (n) Liens of a collection bank arising under Section 4-210 of
         the Uniform Commercial Code on items in the course of collection; and

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                  (o) Liens of sellers of goods to the Borrower and any of its
         Subsidiaries arising under Article 2 of the Uniform Commercial Code or
         similar provisions of applicable law in the ordinary course of
         business, covering only the goods sold and securing only the unpaid
         purchase price for such goods and related expenses.

8.02 Investments.

         Make any Investments, except:

                  (a) Investments held by the Borrower or such Subsidiary in the
         form of cash or Cash Equivalents;

                  (b) Investments existing as of the Closing Date and set forth
         in Schedule 8.02;

                  (c) Investments in any Person that is a Loan Party prior to
         giving effect to, or at the time of, such Investment;

                  (d) Investments consisting of extensions of credit in the
         nature of accounts receivable or notes receivable arising from the
         grant of trade credit in the ordinary course of business, and
         Investments received in satisfaction or partial satisfaction thereof
         from financially troubled account debtors to the extent reasonably
         necessary in order to prevent or limit loss;

                  (e) Guarantees permitted by Section 8.03;

                  (f) Permitted Acquisitions;

                  (g) Permitted Equity Investments;

                  (h) Investments subsequent to the Closing Date by the Loan
         Parties in Excluded Subsidiaries that are created or acquired (directly
         or indirectly) subsequent to the Closing Date; provided, that after
         giving effect to any such Investment on a Pro Forma Basis, the
         aggregate amount of Consolidated EBITDA attributable to such Excluded
         Subsidiaries shall not exceed ten percent (10%) of Consolidated EBITDA;

                  (i) Permitted Stock Purchases;

                  (j) loans advanced to employees of the Borrower and its
         Subsidiaries for reasonable travel and business expenses incurred in
         the ordinary course of business; and

                  (k) loans to nephrology physicians and nephrology physician
         practices not to exceed $5,000,000 in the aggregate at any one time
         outstanding.

8.03 Indebtedness.

         Create, incur, assume or suffer to exist any Indebtedness, except:

                  (a) Indebtedness under the Loan Documents;

                  (b) Indebtedness of the Borrower and its Subsidiaries set
         forth in Schedule 8.03 (and renewals, refinancings and extensions
         thereof on terms and conditions not materially less favorable to the
         applicable debtor(s));

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                  (c) intercompany Indebtedness permitted under Section 8.02;

                  (d) obligations (contingent or otherwise) of the Borrower or
         any Subsidiary existing or arising under any Swap Contract, provided
         that (i) such obligations are (or were) entered into by such Person in
         the ordinary course of business for the purpose of directly mitigating
         risks associated with liabilities, commitments, investments, assets, or
         property held or reasonably anticipated by such Person, or changes in
         the value of securities issued by such Person, and not for purposes of
         speculation or taking a "market view;" and (ii) such Swap Contract does
         not contain any provision exonerating the non-defaulting party from its
         obligation to make payments on outstanding transactions to the
         defaulting party;

                  (e) purchase money Indebtedness (including obligations in
         respect of Capital Leases or Synthetic Leases) hereafter incurred by
         the Borrower or any of its Subsidiaries to finance the purchase of
         fixed assets and renewals, refinancings and extensions thereof,
         provided that (i) the total of all such Indebtedness for all such
         Persons taken together shall not exceed an aggregate principal amount
         of $15,000,000 at any one time outstanding; (ii) such Indebtedness when
         incurred shall not exceed the purchase price of the asset(s) financed;
         and (iii) no such Indebtedness shall be refinanced for a principal
         amount in excess of the principal balance outstanding thereon at the
         time of such refinancing;

                  (f) Indebtedness (other than Earn Out Obligations) incurred
         and/or assumed in connection with Permitted Acquisitions provided that,
         (i) the Indebtedness (other than Earn Out Obligations) incurred and/or
         assumed to carry out such Permitted Acquisitions shall not exceed $400
         million in the aggregate during the term of this Agreement, (ii) such
         Indebtedness shall be in the form of the Loans or the Additional
         Permitted Indebtedness, (iii) the terms and conditions of the
         Additional Permitted Indebtedness (including without limitation the
         subordination provisions, if any), shall be reasonably acceptable to
         the Administrative Agent and (iv) the Borrower shall have demonstrated
         that after giving effect to any such Permitted Acquisition and the
         incurrence and/or assumption of the related Indebtedness on a Pro Forma
         Basis the Consolidated Leverage Ratio would not exceed 2.25 to 1.0;

                  (g) Earn Out Obligations incurred in connection with Permitted
         Acquisitions;

                  (h) other unsecured Indebtedness in an aggregate principal
         amount not to exceed $30,000,000 at any one time outstanding;

                  (i) the Additional Subordinated Indebtedness but only in an
         amount necessary to refinance or redeem in full the Additional
         Permitted Indebtedness; and

                  (j) Guarantees (which Guarantees in respect of any senior
         subordinated notes permitted under clause (f) and Additional
         Subordinated Indebtedness permitted under clause (i) shall be similarly
         subordinated) with respect to Indebtedness permitted under clauses (a)
         through (i) of this Section 8.03.

8.04 Fundamental Changes.

         Merge, dissolve, liquidate, consolidate with or into another Person, or
Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person; provided that, notwithstanding the foregoing provisions
of this Section 8.04 but subject to the terms of Sections 7.12 and 7.14, and
provided that, after giving effect to

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such transaction, no Default or Event of Default shall exist, (a) the Borrower
may merge or consolidate with any of its Subsidiaries provided that the Borrower
shall be the continuing or surviving corporation, (b) any Subsidiary may merge
or consolidate with any other Subsidiary provided that (i) if a Loan Party is
party thereto, a Loan Party shall be the continuing or surviving corporation,
and (ii) the Loan Parties shall cause to be executed and delivered such
documents, instruments and certificates as the Administrative Agent may
reasonably request in order to maintain the perfection and priority of the
Administrative Agent's liens on the Capital Stock of the Loan Parties, (c) any
Loan Party other than the Borrower may merge or consolidate with any other Loan
Party other than the Borrower provided that the Loan Parties shall cause to be
executed and delivered such documents, instruments and certificates as the
Administrative Agent may reasonably request in order to maintain the perfection
and priority of the Administrative Agent's liens on the Capital Stock of the
Loan Parties, (d) any Foreign Subsidiary may be merged or consolidated with or
into any Loan Party provided that such Loan Party shall be the continuing or
surviving corporation and the Loan Parties shall cause to be executed and
delivered such documents, instruments and certificates as the Administrative
Agent may reasonably request in order to maintain the perfection and priority of
the Administrative Agent's liens on the Capital Stock of the Loan Parties, (e)
any Foreign Subsidiary may be merged or consolidated with or into any other
Foreign Subsidiary, (f) any Subsidiary may wind up, liquidate or dissolve itself
so long as it transfers all or substantially all of its assets to a Loan Party
prior to such wind up, liquidation or dissolution and (g) the Borrower or any
Subsidiary of the Borrower may merge with any Person that is not a Loan Party in
connection with a Disposition permitted under Section 8.05 or a Permitted
Acquisition; provided, that in the case of a merger involving the Borrower, the
Borrower shall be the continuing or surviving corporation.

8.05 Dispositions.

         Make any Disposition unless (a) the consideration paid in connection
therewith shall be paid contemporaneously with consummation of the transaction
and shall be in an amount not less than the fair market value (as reasonably
determined by the board of directors of the applicable Person, in good faith) of
the Property disposed of, (b) if such transaction is a Sale and Leaseback
Transaction, such transaction is not prohibited by the terms of Section 8.16,
(c) such transaction does not involve a sale or other disposition of receivables
other than receivables owned by or attributable to other Property concurrently
being disposed of in a transaction otherwise permitted under this Section 8.05,
(d) the aggregate net book value of all of the assets sold or otherwise disposed
of by the Borrower and its Subsidiaries in all such transactions in any fiscal
year of the Borrower represent less than ten percent (10%) of each of (i) the
Borrower's total assets on a consolidated basis as reported to the Lenders for
the previous fiscal year, and (ii) Consolidated EBITDA determined on a rolling
four-quarter basis as reported for the previous fiscal year, and (e) with
respect to any single Disposition for which the cash and non-cash consideration
(including, without limitation, any Indebtedness issued to finance any such
Disposition, any Capital Stock issued to finance any such Disposition any
assumption of liabilities) exceeds $10,000,000, within fifteen (15) days after
the date of closing of such Disposition, the Borrower shall have delivered to
the Administrative Agent a Pro Forma Compliance Certificate demonstrating that,
upon giving effect to such Disposition on a Pro Forma Basis, the Borrower is in
compliance with all of the covenants set forth in Section 8.11.

         Provided no Event of Default exists or arises therefrom, upon the sale,
exchange, transfer or other disposition (by merger or otherwise) of all of the
Capital Stock of a Subsidiary that is a Guarantor and which sale, exchange,
transfer or other disposition is not otherwise prohibited by the terms of this
Agreement or any other Loan Document, (x) such Guarantor shall be deemed
automatically and unconditionally released and discharged from all obligations
under the Guaranty without any further action required on the part of the
Administrative Agent or any Lender and (y) the Lien granted pursuant to the
Pledge Agreement in any of the Capital Stock of such Guarantor shall
automatically be released from such Capital Stock simultaneously with such
release and discharge of such Subsidiary from the Guaranty.

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The Administrative Agent shall, promptly upon the Borrower's request and at the
Borrower's expense, deliver an appropriate instrument evidencing such release
and discharge.

8.06 Restricted Payments.

         Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, except that:

                  (a) each Subsidiary may make Restricted Payments (directly or
         indirectly) to any Loan Party;

                  (b) the Borrower and each Subsidiary may declare and make
         dividend payments or other distributions payable solely in the Capital
         Stock of such Person;

                  (c) the Borrower may purchase, redeem, acquire or retire
         shares of its Capital Stock of any class or any warrants or options to
         purchase any such shares of its Capital Stock so long as (i) no Default
         or Event of Default exists immediately prior to and after giving effect
         to any such dividend, purchase, redemption, acquisition or retirement
         and (ii) the total cash amount paid by the Borrower for all Capital
         Stock purchased, redeemed, acquired or retired from and after November
         1, 2002 does not exceed $450,000,000;

                  (d) after having utilized the full $450,000,000 basket
         provided by subclause (c) above, the Borrower may purchase, redeem,
         acquire or retire any of its Capital Stock and may pay dividends to its
         stockholders in respect of such Capital Stock so long as either (i)(x)
         no Default or Event of Default exists immediately prior to and after
         giving effect to any such purchase, redemption, acquisition, retirement
         or payment of dividends and (y) after giving effect to any such
         purchase, redemption, acquisition, retirement or payment of dividends
         on a Pro Forma Basis, the Consolidated Leverage Ratio does not exceed
         2.0 to 1.0 or (ii)(x) no Default or Event of Default exists immediately
         prior to and after giving effect to any such purchase, redemption,
         acquisition, retirement or payment of dividends and (y) the total cash
         amount paid by the Borrower for all Capital Stock purchased, redeemed,
         acquired or retired or dividends paid to its stockholders shall not
         exceed $50,000,000 in any fiscal year;

                  (e) so long as no Default or Event of Default exists prior to
         and after giving effect thereto, the Borrower and each Subsidiary may
         make Permitted Dividends; and

                  (f) so long as no Default or Event of Default exists prior to
         and after giving effect thereto, the Borrower and each Subsidiary may
         make Permitted Stock Purchases.

8.07 Change in Nature of Business.

         Engage in any material line of business substantially different from
those lines of business conducted by the Borrower and its Subsidiaries on the
Closing Date or any business substantially related or incidental thereto.

8.08 Transactions with Affiliates and Insiders.

         Enter into or permit to exist any transaction or series of transactions
with any officer, director or Affiliate of such Person or any with other Person
that possesses, directly or indirectly, the power to vote 5% or more of the
securities having ordinary voting power for the election of directors, managing
general partners or the equivalent of such Person other than (a) advances of
working capital to any Loan Party, (b)

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transfers of cash and assets to any Loan Party, (c) intercompany transactions
expressly permitted by Section 8.02, Section 8.03, Section 8.04, Section 8.05 or
Section 8.06, (d) normal and reasonable compensation and reimbursement of
expenses of officers and directors and (e) except as otherwise specifically
limited in this Agreement, other transactions which are entered into in the
ordinary course of such Person's business on terms and conditions no less
favorable to such Person as would be obtainable by it in a comparable
arms-length transaction with a Person other than an officer, director or
Affiliate.

8.09 Burdensome Agreements.

         (a) Enter into, or permit to exist, any Contractual Obligation that
encumbers or restricts on the ability of any such Person to (i) pay dividends or
make any other distributions to any Loan Party on its Capital Stock or with
respect to any other interest or participation in, or measured by, its profits,
(ii) pay any Indebtedness or other obligation owed to any Loan Party, (iii) make
loans or advances to any Loan Party, (iv) sell, lease or transfer any of its
Property to any Loan Party, (v) pledge its Property pursuant to the Loan
Documents or any renewals, refinancings, exchanges, refundings or extension
thereof or (vi) act as a Loan Party pursuant to the Loan Documents or any
renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (i)-(v) above) for (1) this
Agreement and the other Loan Documents, (2) any document or instrument governing
Indebtedness incurred pursuant to Section 8.03(e), provided that any such
restriction contained therein relates only to the asset or assets constructed or
acquired in connection therewith, (3) any Permitted Lien or any document or
instrument governing any Permitted Lien, provided that any such restriction
contained therein relates only to the asset or assets subject to such Permitted
Lien, (4) customary restrictions and conditions contained in any agreement
relating to the sale of any Property permitted under Section 8.05 pending the
consummation of such sale, (5) any document or instrument governing Additional
Permitted Indebtedness, or (6) in the case of any Excluded Subsidiary,
restrictions in such Person's organizational documents.

         (b) Enter into, or permit to exist, any Contractual Obligation that
prohibits or otherwise restricts the existence of any Lien upon any of its
Property in favor of the Administrative Agent (for the benefit of the Lenders)
for the purpose of securing the Obligations, whether now owned or hereafter
acquired, or requiring the grant of any security for any obligation if such
Property is given as security for the Obligations, except (i) any document or
instrument governing Indebtedness incurred pursuant to Section 8.03(e), provided
that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, (ii) in connection with any
Permitted Lien or any document or instrument governing any Permitted Lien,
provided that any such restriction contained therein relates only to the asset
or assets subject to such Permitted Lien, (iii) pursuant to customary
restrictions and conditions contained in any agreement relating to the sale of
any Property permitted under Section 8.05, pending the consummation of such sale
or (iv) any document or instrument governing Additional Permitted Indebtedness.

8.10 Use of Proceeds.

         Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or
carry margin stock (within the meaning of Regulation U of the FRB) in any manner
that would constitute a violation of Regulation U of the FRB or to extend credit
to others for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose.

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8.11 Financial Covenants.

         (a) Consolidated Net Worth. Permit Consolidated Net Worth at any time
to be less than the sum of 90% of Consolidated Net Worth as of December 31,
2003, (i) decreased by (x) the amount of Capital Stock of the Borrower
repurchased subsequent to the December 31, 2003 in accordance with Section 8.06
and (y) by the amount of tender or call premiums paid in connection with the
redemption of any Additional Permitted Indebtedness to the extent such
redemption is permitted hereunder, and (ii) increased on a cumulative basis as
of the end of each fiscal quarter of the Borrower, commencing with the fiscal
quarter ending March 31, 2004 by an amount equal to 75% of Consolidated Net
Income (to the extent positive) for the fiscal quarter then ended plus 100% of
the amount of Net Cash Proceeds of all Equity Issuances after the Closing Date
(other than those Equity Issuances to the Borrower or any of its Subsidiaries).

         (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio
as of the end of any fiscal quarter of the Borrower to be greater than 3.0:1.0.

         (c) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated
Fixed Charge Coverage Ratio as of the end of any fiscal quarter of the Borrower
to be less than (i) 1.05:1.0 for any fiscal quarter ending during the period
from June 30, 2004 to and including December 31, 2007 and (ii) 1.0:1.0 for any
fiscal quarter ending after December 31, 2007.

8.12 Prepayment of Other Indebtedness.

         (a) Amend or modify any of the terms of any Additional Permitted
Indebtedness or Additional Subordinated Indebtedness of the Borrower or any
Subsidiary if such amendment or modification would add or change any terms in a
manner adverse to the Borrower or any Subsidiary or the Lenders, or shorten the
final maturity or average life to maturity or require any payment to be made
sooner than originally scheduled or increase the interest rate applicable
thereto.

         (b) (i) If the Additional Permitted Indebtedness is subordinated to the
Obligations, (A) make or offer to make any principal payments with respect to
the Additional Permitted Indebtedness, (B) redeem or offer to redeem any of the
Additional Permitted Indebtedness unless such redemption is financed in full
with Additional Subordinated Indebtedness, Capital Stock issued by the Borrower,
the Revolving Loans or the Incremental Term Loans, or (C) deposit any funds
intended to discharge the Additional Permitted Indebtedness, and (ii) if the
Additional Subordinated Indebtedness is issued, (X) make or offer to make any
principal payments with respect to the Additional Subordinated Indebtedness, (Y)
redeem or offer to redeem any of the Additional Subordinated Indebtedness, or
(Z) deposit any funds intended to discharge the Additional Subordinated
Indebtedness.

         (c) (i) If the Additional Permitted Indebtedness is subordinated to the
Obligations, designate any Indebtedness of such Person, other than Indebtedness
arising under the Loan Documents, as "Designated Senior Debt" (or any like term)
under documentation or any indenture for such Additional Permitted Indebtedness,
or (ii) if the Additional Subordinated Indebtedness refinances the Additional
Permitted Indebtedness in accordance with Section 8.12(b), designate any
Indebtedness of such Person, other than Indebtedness arising under the Loan
Documents, as "Designated Senior Debt" (or any like term) under documentation or
any indenture for such Additional Subordinated Indebtedness.

8.13 Organization Documents; Fiscal Year; Legal Name, State of Formation and
Form of Entity.

         (a) Amend, modify or change its Organization Documents in a manner
adverse to the Lenders.

         (b) Change its fiscal year.

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         (c) Without providing ten (10) days prior written notice to the
Administrative Agent, change its name, state of formation or form of
organization.

8.14 Preferred Stock.

         (a) Notwithstanding any other provisions of this Agreement to the
contrary, (i) permit any Subsidiary of the Borrower to issue or have outstanding
any shares of preferred Capital Stock, or (ii) create, incur, assume or suffer
to exist any Lien on any Capital Stock of any Subsidiary of the Borrower, except
for Permitted Liens.

         (b) Permit any Excluded Subsidiary to guarantee or otherwise be
obligated as to any Indebtedness of a Loan Party unless such Excluded Subsidiary
also guarantees the Obligations pursuant to documentation consistent with
Section 7.12.

8.15 Sale Leasebacks.

         Enter into any Sale and Leaseback Transactions in an amount in excess
of $150,000,000 in the aggregate during the term of this Agreement.

8.16     Interest Rate Protection Agreements.

         In the event that the Consolidated Leverage Ratio is ever greater than
2.25 to 1.00, then, within 90 days following the date a Compliance Certificate
is first delivered pursuant to Section 7.02(a) evidencing that the Consolidated
Leverage Ratio is greater than 2.25 to 1.00, the Borrower shall hedge the
floating interest expense of the Loans for a period of at least 2 years in an
aggregate notional amount equal to at least 50% of the then Outstanding Amount
of the Loans at such time.

                                   ARTICLE IX

                         EVENTS OF DEFAULT AND REMEDIES

9.01 Events of Default.

         Any of the following shall constitute an Event of Default:

                  (a) Non-Payment. The Borrower or any other Loan Party fails to
         pay (i) when and as required to be paid herein, any amount of principal
         of any Loan or any L/C Obligation, or (ii) within three Business Days
         after the same becomes due, any interest on any Loan or on any L/C
         Obligation, or any commitment fee or other fee due hereunder, or (iii)
         within five Business Days after the same becomes due, any other amount
         payable hereunder or under any other Loan Document; or

                  (b) Specific Covenants. The Borrower fails to perform or
         observe any term, covenant or agreement contained in any of Section
         7.05(a)(i), 7.11, 7.12 or 7.14 or Article VIII; or

                  (c) Other Covenants. The Borrower fails to perform or observe
         any term, covenant or agreement contained in any of Section 7.01 or
         7.02(a), (b) or (c), and such failure continues for

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         5 Business Days after the earlier of a Responsible Officer of a Loan
         Party becoming aware of such failure or notice thereof by the
         Administrative Agent; or

                  (d) Other Defaults. Any Loan Party fails to perform or observe
         any other covenant or agreement (not specified in subsection (a), (b)
         or (c) above) contained in any Loan Document on its part to be
         performed or observed and such failure continues for thirty days after
         the earlier of a Responsible Officer of a Loan Party becoming aware of
         such failure or notice thereof by the Administrative Agent; or

                  (e) Representations and Warranties. Any representation,
         warranty, certification or statement of fact made or deemed made by or
         on behalf of the Borrower or any other Loan Party herein, in any other
         Loan Document, or in any document delivered in connection herewith or
         therewith shall be incorrect or misleading in any material respect when
         made or deemed made; or

                  (f) Cross-Default. (i) The Borrower or any Subsidiary (A)
         fails to make any payment when due (whether by scheduled maturity,
         required prepayment, acceleration, demand, or otherwise and after
         giving effect to any grace or cure periods) in respect of any
         Indebtedness or Guarantee of Indebtedness (other than Indebtedness
         hereunder and Indebtedness under Swap Contracts) having an aggregate
         principal amount (including undrawn committed or available amounts and
         including amounts owing to all creditors under any combined or
         syndicated credit arrangement) of more than the Threshold Amount, or
         (B) fails to observe or perform any other agreement or condition
         relating to any such Indebtedness or Guarantee or contained in any
         instrument or agreement evidencing, securing or relating thereto, or
         any other event occurs, the effect of which default or other event is
         to cause, or to permit the holder or holders of such Indebtedness or
         the beneficiary or beneficiaries of such Guarantee (or a trustee or
         agent on behalf of such holder or holders or beneficiary or
         beneficiaries) to cause, with the giving of notice if required and
         after giving effect to the expiration of any grace or cure periods,
         such Indebtedness to be demanded or to become due or to be repurchased,
         prepaid, defeased or redeemed (automatically or otherwise), or an offer
         to repurchase, prepay, defease or redeem such Indebtedness to be made,
         prior to its stated maturity, or such Guarantee to become payable or
         cash collateral in respect thereof to be demanded; or (ii) there occurs
         under any Swap Contract an Early Termination Date (as defined in such
         Swap Contract) resulting from (A) any event of default under such Swap
         Contract as to which the Borrower or any Subsidiary is the Defaulting
         Party (as defined in such Swap Contract) or (B) any Termination Event
         (as so defined) under such Swap Contract as to which the Borrower or
         any Subsidiary is an Affected Party (as so defined) and, in either
         event, the Swap Termination Value owed by the Borrower or such
         Subsidiary as a result thereof is greater than the Threshold Amount; or

                  (g) Insolvency Proceedings, Etc. Any Loan Party or any of its
         Subsidiaries institutes or consents to the institution of any
         proceeding under any Debtor Relief Law, or makes an assignment for the
         benefit of creditors; or applies for or consents to the appointment of
         any receiver, trustee, custodian, conservator, liquidator,
         rehabilitator or similar officer for it or for all or any material part
         of its property; or any receiver, trustee, custodian, conservator,
         liquidator, rehabilitator or similar officer is appointed without the
         application or consent of such Person; or any proceeding under any
         Debtor Relief Law relating to any such Person or to all or any material
         part of its property is instituted without the consent of such Person
         and continues undismissed or unstayed for sixty calendar days, or an
         order for relief is entered in any such proceeding; or

                  (h) Inability to Pay Debts; Attachment. (i) The Borrower or
         any Subsidiary becomes unable or admits in writing its inability or
         fails generally to pay its debts as they become due, or (ii) any writ
         or warrant of attachment or execution or similar process is issued or
         levied against all

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         or any material part of the property of any such Person and is not
         released, vacated or fully bonded within thirty days after its issue or
         levy; or

                  (i) Judgments. There is entered against the Borrower or any
         Subsidiary (i) one or more final judgments or orders for the payment of
         money in an aggregate amount exceeding the Threshold Amount (to the
         extent not covered by independent third-party insurance as to which the
         insurer does not dispute coverage), or (ii) any one or more
         non-monetary final judgments that have, or could reasonably be expected
         to have, individually or in the aggregate, a Material Adverse Effect
         and, in either case, (A) enforcement proceedings are commenced by any
         creditor upon such judgment or order, or (B) there is a period of
         thirty (30) consecutive days during which a stay of enforcement of such
         judgment, by reason of a pending appeal posting of bond or otherwise,
         is not in effect; or

                  (j) ERISA. (i) An ERISA Event occurs with respect to a Pension
         Plan or Multiemployer Plan which has resulted or could reasonably be
         expected to result in liability of the Borrower under Title IV of ERISA
         to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
         amount in excess of the Threshold Amount, or (ii) the Borrower or any
         ERISA Affiliate fails to pay when due, after the expiration of any
         applicable grace period, any installment payment with respect to its
         withdrawal liability under Section 4201 of ERISA under a Multiemployer
         Plan in an aggregate amount in excess of the Threshold Amount; or

                  (k) Invalidity of Loan Documents. Any Loan Document, at any
         time after its execution and delivery and for any reason other than as
         expressly permitted hereunder or satisfaction in full of all the
         Obligations, ceases to be in full force and effect or fails to give the
         Administrative Agent and/or the Lenders the Liens, rights, powers and
         privileges purported to be created by the Loan Documents and such
         failure is material to the rights of the Lenders hereunder; or any Loan
         Party or any other Person contests in any manner the validity or
         enforceability of any Loan Document; or any Loan Party denies that it
         has any or further liability or obligation under any Loan Document, or
         purports to revoke, terminate or rescind any Loan Document; or

                  (l) Change of Control. There occurs any Change of Control; or

                  (m) Fraud and Abuse Laws. Receipt by any Loan Party of a
         notice from a Governmental Authority that it intends (i) to disallow
         requested reimbursements, demand adjustment or repayment of past
         reimbursements in excess of five percent (5%) of Consolidated EBITDA
         for the previous fiscal year respecting amounts submitted for
         reimbursement or collected by a Loan Party or a Provider, (ii) to
         impose civil money penalties in excess of five percent (5%) of
         Consolidated EBITDA for the previous fiscal year, or (iii) to seek to
         exclude any Loan Party or a Provider from participation in the Medicare
         or Medicaid programs due to a failure to comply with Fraud and Abuse
         Laws, if the consolidated gross revenues to the Loan Parties arising
         from the affected Loan Party or Provider exceed five percent (5%) of
         Consolidated EBITDA for the previous fiscal year; or

                  (n) Additional Permitted Indebtedness. There occurs a
         "Default" or "Event of Default" (or any comparable terms) under, and as
         defined in the documentation evidencing the Additional Permitted
         Indebtedness; or

                  (o) Additional Subordinated Indebtedness. There shall occur a
         "Default or "Event of Default" (or any comparable term) under, and as
         defined in, the documentation evidencing the Additional Subordinated
         Indebtedness; or

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                  (p) Exclusion Event. There shall occur an Exclusion Event that
         would result in a Material Adverse Effect.

9.02 Remedies Upon Event of Default.

         If any Event of Default occurs and is continuing, the Administrative
Agent shall, at the request of, or may, with the consent of, the Required
Lenders, take any or all of the following actions:

                  (a) declare the commitment of each Lender to make Loans and
         any obligation of the L/C Issuers to make L/C Credit Extensions to be
         terminated, whereupon such commitments and obligation shall be
         terminated;

                  (b) declare the unpaid principal amount of all outstanding
         Loans, all interest accrued and unpaid thereon, and all other amounts
         owing or payable hereunder or under any other Loan Document to be
         immediately due and payable, without presentment, demand, protest or
         other notice of any kind, all of which are hereby expressly waived by
         the Borrower;

                  (c) require that the Borrower Cash Collateralize the L/C
         Obligations (in an amount equal to the then Outstanding Amount
         thereof); and

                  (d) exercise on behalf of itself and the Lenders all rights
         and remedies available to it and the Lenders under the Loan Documents
         or applicable law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any of the Loan Parties under the Bankruptcy
Code of the United States, the obligation of each Lender to make Loans and any
obligation of the L/C Issuers to make L/C Credit Extensions shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all interest
and other amounts as aforesaid shall automatically become due and payable, and
the obligation of the Loan Parties to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further act
of the Administrative Agent or any Lender.

9.03 Application of Funds.

         After the exercise of remedies provided for in Section 9.02 (or after
the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 9.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following order:

         First, to payment of that portion of the Obligations constituting fees,
         indemnities, expenses and other amounts (including Attorney Costs and
         amounts payable under Article III) payable to the Administrative Agent
         in its capacity as such;

         Second, to payment of that portion of the Obligations constituting
         fees, indemnities and other amounts (other than principal and interest)
         payable to the Lenders (including Attorney Costs and amounts payable
         under Article III), ratably among them in proportion to the amounts
         described in this clause Second payable to them;

         Third, to payment of that portion of the Obligations constituting
         accrued and unpaid interest on the Loans and L/C Borrowings and fees,
         premiums and scheduled periodic payments, and any interest accrued
         thereon, due under any Swap Contract between any Loan Party and any
         Lender,

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         or any Affiliate of a Lender, to the extent such Swap Contract is
         permitted by Section 8.03(d), ratably among the Lenders (and, in the
         case of such Swap Contracts, Affiliates of Lenders) in proportion to
         the respective amounts described in this clause Third held by them;

         Fourth, to payment of that portion of the Obligations constituting
         unpaid principal of the Loans and L/C Borrowings and breakage,
         termination or other payments, and any interest accrued thereon, due
         under any Swap Contract between any Credit Party and any Lender, or any
         Affiliate of a Lender, to the extent such Swap Contract is permitted by
         Section 8.03(d), and to Cash Collateralize that portion of L/C
         Obligations comprised of the aggregate undrawn amount of Letters of
         Credit, ratably among the Lenders (and, in the case of such Swap
         Contracts, Affiliates of Lenders) in proportion to the respective
         amounts described in this clause Fourth held by them; and

         Last, the balance, if any, after all of the Obligations have been
         indefeasibly paid in full, to the Borrower or as otherwise required by
         Law.

         Subject to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above
shall be applied to satisfy drawings under such Letters of Credit if and as they
occur. If any amount remains on deposit as Cash Collateral after all Letters of
Credit have either been fully drawn or expired, such remaining amount shall be
applied in the order set forth above.

                                    ARTICLE X

                              ADMINISTRATIVE AGENT

10.01 Appointment and Authorization of Administrative Agent.

         (a) Each Lender hereby irrevocably appoints, designates and authorizes
the Administrative Agent to take such action on its behalf under the provisions
of this Agreement and each other Loan Document and to exercise such powers and
perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent. Without limiting the generality of the foregoing sentence,
the use of the term "agent" herein and in the other Loan Documents with
reference to the Administrative Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any
applicable Law. Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.

         (b) Each L/C Issuer shall act on behalf of the Lenders with respect to
any Letters of Credit issued by it and the documents associated therewith, and
each L/C Issuer shall have all of the benefits and immunities (i) provided to
the Administrative Agent in this Article X with respect to any acts taken or
omissions suffered by such L/C Issuer in connection with Letters of Credit
issued by it or proposed to be issued by it and the applications and agreements
for letters of credit pertaining to such Letters of Credit as fully as if the
term "Administrative Agent" as used in this Article X and in the definition of
"Agent-

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Related Person" included such L/C Issuer with respect to such acts or omissions,
and (ii) as additionally provided herein with respect to the L/C Issuers.

10.02 Delegation of Duties.

         The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

10.03 Liability of Administrative Agent.

         No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or
any other Loan Document or the transactions contemplated hereby (except for its
own gross negligence or willful misconduct in connection with its duties
expressly set forth herein), or (b) be responsible in any manner to any Lender
or participant for any recital, statement, representation or warranty made by
any Loan Party or any officer thereof, contained herein or in any other Loan
Document, or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Loan Document, or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document, or for any failure of any Loan Party or any other party
to any Loan Document to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Lender or participant
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party or
any Affiliate thereof.

10.04 Reliance by Administrative Agent.

         (a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail message,
statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel to any Loan
Party), independent accountants and other experts selected by the Administrative
Agent. The Administrative Agent shall be fully justified in failing or refusing
to take any action under any Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate and, if it
so requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or
consent of the Required Lenders (or such greater number of Lenders as may be
expressly required hereby in any instance) and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders.

         (b) For purposes of determining compliance with the conditions
specified in Section 5.01, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

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10.05 Notice of Default.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Borrower referring
to this Agreement, describing such Default and stating that such notice is a
"notice of default." The Administrative Agent will notify the Lenders of its
receipt of any such notice. The Administrative Agent shall take such action with
respect to such Default as may be directed by the Required Lenders in accordance
with Article IX; provided, however, that unless and until the Administrative
Agent has received any such direction, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable or in the best interest of
the Lenders.

10.06 Credit Decision; Disclosure of Information by Administrative Agent.

         Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of any Loan Party or any Affiliate thereof, shall be
deemed to constitute any representation or warranty by any Agent-Related Person
to any Lender as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession. Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their respective Subsidiaries, and all
applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower hereunder. Each Lender also represents that it
will, independently and without reliance upon any Agent-Related Person and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Borrower and the other Loan Parties. Except for notices,
reports and other documents expressly required to be furnished to the Lenders by
the Administrative Agent herein, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of any of the Loan Parties or any of
their respective Affiliates which may come into the possession of any
Agent-Related Person.

10.07 Indemnification of Administrative Agent.

         Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent
not reimbursed by or on behalf of any Loan Party and without limiting the
obligation of any Loan Party to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related
Person's own gross negligence or willful misconduct; provided, however, that no
action taken in accordance with the directions of the requisite Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of this
Section. Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand

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for its ratable share of any costs or out-of-pocket expenses (including Attorney
Costs) incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the
extent that the Administrative Agent is not reimbursed for such expenses by or
on behalf of the Borrower. The undertaking in this Section shall survive
termination of the Commitments, the payment of all other Obligations and the
resignation of the Administrative Agent; provided further, however, to the
extent an L/C Issuer is entitled to indemnification under this Section 10.07, to
the extent such indemnification relates solely to such L/C Issuer's acting in
such capacity, the indemnification provided for in this Section 10.07 will be
the obligations solely of the Lenders with Revolving Commitments.

10.08 Administrative Agent in its Individual Capacity.

         Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Loan Parties and their respective Affiliates
as though Bank of America were not the Administrative Agent or an L/C Issuer
hereunder and without notice to or consent of the Lenders. The Lenders
acknowledge that, pursuant to such activities, Bank of America or its Affiliates
may receive information regarding any Loan Party or its Affiliates (including
information that may be subject to confidentiality obligations in favor of such
Loan Party or such Affiliate) and acknowledge that the Administrative Agent
shall be under no obligation to provide such information to them. With respect
to its Loans, Bank of America shall have the same rights and powers under this
Agreement as any other Lender and may exercise such rights and powers as though
it were not the Administrative Agent or an L/C Issuer, and the terms "Lender"
and "Lenders" include Bank of America in its individual capacity.

10.09 Successor Administrative Agent.

         The Administrative Agent may resign as Administrative Agent upon thirty
days' notice to the Lenders; provided that any such resignation by Bank of
America shall also constitute its resignation as an L/C Issuer and Swing Line
Lender. If the Administrative Agent resigns under this Agreement, the Required
Lenders shall appoint from among the Lenders a successor administrative agent
for the Lenders, which successor administrative agent shall be consented to by
the Borrower at all times other than during the existence of an Event of Default
(which consent of the Borrower shall not be unreasonably withheld or delayed).
If no successor administrative agent is appointed prior to the effective date of
the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders and the Borrower, a successor
administrative agent from among the Lenders. Upon the acceptance of its
appointment as successor administrative agent hereunder, the Person acting as
such successor administrative agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent, L/C Issuer and Swing Line Lender
and the respective terms "Administrative Agent", "L/C Issuer" and "Swing Line
Lender" shall mean such successor administrative agent, Letter of Credit issuer
and swing line lender, and the retiring Administrative Agent's appointment,
powers and duties in such capacities shall be terminated without any other
further act or deed on its behalf. After any retiring Administrative Agent's
resignation hereunder as Administrative Agent, the provisions of this Article X
and Sections 11.04 and 11.05 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor administrative agent has accepted appointment as
Administrative Agent by the date thirty days following a retiring Administrative
Agent's notice of resignation, the retiring Administrative Agent's resignation
shall nevertheless thereupon become effective and the Lenders shall perform all
of the duties of the Administrative Agent hereunder until such time, if any, as
the Required Lenders appoint a successor agent as provided for above.

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10.10 Administrative Agent May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then
be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

                  (a) to file and prove a claim for the whole amount of the
         principal and interest owing and unpaid in respect of the Loans, L/C
         Obligations and all other Obligations that are owing and unpaid and to
         file such other documents as may be necessary or advisable in order to
         have the claims of the Lenders and the Administrative Agent (including
         any claim for the reasonable compensation, expenses, disbursements and
         advances of the Lenders and the Administrative Agent and their
         respective agents and counsel and all other amounts due the Lenders and
         the Administrative Agent under Sections 2.03(i) and (j), 2.09 and
         11.04) allowed in such judicial proceeding; and

                  (b) to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.09 and 11.04.

         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

10.11 Collateral and Guaranty Matters.

         The Lenders irrevocably authorize the Administrative Agent, at its
option and in its discretion,

                  (a) to release any Lien on any Collateral granted to or held
         by the Administrative Agent under any Loan Document (i) upon
         termination of the Aggregate Revolving Commitments and payment in full
         of all Obligations (other than contingent indemnification obligations)
         and the expiration or termination of all Letters of Credit, (ii) that
         is transferred or to be transferred as part of or in connection with
         any Disposition permitted hereunder or under any other Loan Document or
         any Involuntary Disposition, or (iii) as approved in accordance with
         Section 11.01;

                  (b) to subordinate any Lien on any Property granted to or held
         by the Administrative Agent under any Loan Document to the holder of
         any Lien on such Property that is permitted by Section 8.01(i); and

                  (c) to release any Guarantor from its obligations under the
         Guaranty if such Person ceases to be a Subsidiary as a result of a
         transaction permitted hereunder.

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         Upon request by the Administrative Agent at any time, the Required
         Lenders will confirm in writing the Administrative Agent's authority to
         release or subordinate its interest in particular types or items of
         Property, or to release any Guarantor from its obligations under the
         Guaranty, pursuant to this Section 10.11.

10.12 Other Agents; Arrangers and Managers.

         None of the Lenders or other Persons identified on the facing page or
signature pages of this Agreement as a "syndication agent," "documentation
agent," "co-agent," "book manager," "lead manager," "arranger," "lead arranger"
or "co-arranger" shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

                                   ARTICLE XI

                                  MISCELLANEOUS

11.01 Amendments, Etc.

         No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Borrower or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or consent shall:

                  (a) extend or increase the Commitment of any Lender (or
         reinstate any Commitment terminated pursuant to Section 9.02) without
         the written consent of such Lender (it being understood and agreed that
         a waiver of any condition precedent set forth in Section 5.02 or of any
         Default or Event of Default or a mandatory reduction in Commitments is
         not considered an extension or increase in Commitments of any Lender);

                  (b) change Section 2.13 or Section 9.03 in a manner that would
         alter the pro rata sharing of payments or the order of application of
         payments required thereby without the written consent of each Lender
         directly affected thereby;

                  (c) postpone any date fixed by this Agreement or any other
         Loan Document for any payment of principal (excluding mandatory
         prepayments), interest, fees or other amounts due to the Lenders (or
         any of them) hereunder or under any other Loan Document without the
         written consent of each Lender directly affected thereby;

                  (d) reduce the principal of, or the rate of interest specified
         herein on, any Loan or L/C Borrowing, or any fees or other amounts
         payable hereunder or under any other Loan Document without the written
         consent of each Lender directly affected thereby; provided, however,
         that only the consent of the Required Lenders shall be necessary to
         amend the definition of "Default Rate" or to waive any obligation of
         the Borrower to pay interest at the Default Rate;

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                  (e) change any provision of this Section or the definition of
         "Required Lenders" or any other provision hereof specifying the number
         or percentage of Lenders required to amend, waive or otherwise modify
         any rights hereunder or make any determination or grant any consent
         hereunder without the written consent of each Lender directly affected
         thereby;

                  (f) release the Borrower or, except in connection with a
         merger or consolidation permitted under Section 8.04 or a Disposition
         permitted under Section 8.05, all or substantially all of the
         Guarantors, from its or their obligations under the Loan Documents
         without the written consent of each Lender directly affected thereby;

                  (g) except in connection with a Disposition permitted under
         Section 8.05, release all or substantially all of the Collateral
         without the written consent of each Lender directly affected thereby;

                  (h) without the consent of the Required Revolving Lenders, (i)
         waive any Default or Event of Default for purposes of Section 5.02 for
         purposes of any Revolving Loan borrowing or L/C Credit Extension and
         (ii) amend, change, waive, discharge or terminate Section 2.01(a),
         2.02, 2.03, 2.05(b)(i) or 2.06 or any term, covenant or agreement
         contained in Article VIII or Article IX; or

                  (i) without the consent of Lenders (other than Defaulting
         Lenders) holding in the aggregate at least a majority of the
         outstanding Term Loan (and during the Availability Period with respect
         to the Term Loans, without duplication, the Term Loan Commitments, if
         any) and at least a majority of the outstanding Incremental Term Loans
         (and participations therein), amend, change, waive, discharge or
         terminate Section 2.05(b)(iv) so as to alter the manner of application
         of proceeds of any mandatory prepayment required by Section 2.05(b)(ii)
         or (iii) hereof;

         and, provided further, that (i) no amendment, waiver or consent shall,
unless in writing and signed by the L/C Issuers in addition to the Lenders
required above, affect the rights or duties of the L/C Issuers under this
Agreement or any Letter of Credit Application relating to any Letter of Credit
issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the Swing Line Lender in addition to the Lenders
required above, affect the rights or duties of the Swing Line Lender under this
Agreement; (iii) no amendment, waiver or consent shall, unless in writing and
signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this Agreement or
any other Loan Document; and (iv) the Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have
any right to approve or disapprove any amendment, waiver or consent hereunder,
except that the Commitment of such Lender may not be increased or extended
without the consent of such Lender.

If, in connection with any proposed amendment, waiver, discharge or termination
to any of the provisions of this Agreement as contemplated by clauses (a)
through (i), inclusive, of the first proviso to this Section 11.01, the consent
of the Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained, then the Borrower shall have
the right, upon notice to such Lender or Lenders and the Administrative Agent,
to replace each such non-consenting Lender or Lenders with one or more Eligible
Assignee or Eligible Assignees procured by the Borrower, none of whom shall
constitute a Defaulting Lender at the time of such replacement (the "Replacement
Lender") by causing such Lender to assign its Commitment and outstanding Loans
(with the assignment fee to be paid by the Borrower in such instance) pursuant
to Section 11.07(b) so long as at the time of such replacement, each such
Replacement Lender consents to the proposed amendment, waiver, discharge

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or termination. The Borrower shall (x) pay in full all principal, interest, fees
and other amounts owing to such Lender through the date of replacement, (y)
provide appropriate assurances and indemnities (which may include letters of
credit) to the L/C Issuers and the Swing Line Lender as each may reasonably
require with respect to any continuing obligation to fund participation
interests in any L/C Obligations or any Swing Line Loans then outstanding, and
(z) release such Lender from its obligations under the Loan Documents. Any
Lender being replaced shall execute and deliver an Assignment and Assumption
with respect to such Lender's Commitment and outstanding Loans and
participations in L/C Obligations and Swing Line Loans.

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans, and each Lender acknowledges that the provisions of Section 1126(c) of
the Bankruptcy Code supersedes the unanimous consent provisions set forth herein
and (y) the Required Lenders shall determine whether or not to allow a Loan
Party to use cash collateral in the context of a bankruptcy or insolvency
proceeding and such determination shall be binding on all of the Lenders.

11.02 Notices and Other Communications; Facsimile Copies.

         (a) General. Unless otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
by facsimile transmission). All such written notices shall be mailed certified
or registered mail, faxed or delivered to the applicable address, facsimile
number or (subject to subsection (b) below) electronic mail address, and all
notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

                  (i) if to the Borrower, the Administrative Agent, an L/C
         Issuer or the Swing Line Lender, to the address, facsimile number,
         electronic mail address or telephone number specified for such Person
         on Schedule 11.02 or to such other address, facsimile number,
         electronic mail address or telephone number as shall be designated by
         such party in a notice to the other parties; and

                  (ii) if to any other Lender, to the address, facsimile number,
         electronic mail address or telephone number specified in its
         Administrative Questionnaire (which address shall be provided to the
         Borrower on or before the Closing Date) or to such other address,
         facsimile number, electronic mail address or telephone number as shall
         be designated by such party in a notice to the Borrower, the
         Administrative Agent, the L/C Issuers and the Swing Line Lender.

Notices sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent
by facsimile shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).

         (b) Electronic Communications. Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Administrative Agent, provided that the foregoing shall not
apply to notices to any Lender pursuant to Article II if such Lender has
notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices

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and other communications to it hereunder by electronic communications pursuant
to procedures approved by it, provided that approval of such procedures may be
limited to particular notices or communications.

         (c) Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually signed originals and shall be binding on all Loan
Parties, the Administrative Agent and the Lenders. The Administrative Agent may
also require that any such documents and signatures be confirmed by a manually
signed original thereof; provided, however, that the failure to request or
deliver the same shall not limit the effectiveness of any facsimile document or
signature.

         (d) Reliance by Administrative Agent and Lenders. The Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices and Swing Line Loan Notices) given by a
Responsible Officer of the Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any
other form of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof. The Borrower shall
indemnify each Agent-Related Person and each Lender from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each
notice given by a Responsible Officer of the Borrower. All telephonic notices to
and other communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

11.03 No Waiver; Cumulative Remedies.

         No failure by any Lender or the Administrative Agent to exercise, and
no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

11.04 Attorney Costs, Expenses and Taxes.

         The Borrower agrees (a) to pay or reimburse the Administrative Agent
for all reasonable costs and expenses actually incurred in connection with the
development, preparation, negotiation and execution of this Agreement and the
other Loan Documents and any amendment, waiver, consent or other modification of
the provisions hereof and thereof (whether or not the transactions contemplated
hereby or thereby are consummated), and the consummation and administration of
the transactions contemplated hereby and thereby, including all Attorney Costs
and costs and expenses in connection with the use of Intralinks, Inc. or other
similar information transmission systems in connection with this Agreement, and
(b) to pay or reimburse the Administrative Agent and each Lender for all costs
and expenses actually incurred in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or
the other Loan Documents (including all such costs and expenses incurred during
any "workout" or restructuring in respect of the Obligations and during any
legal proceeding, including any proceeding under any Debtor Relief Law),
including all Attorney Costs. The foregoing costs and expenses shall include all
search, filing, recording, and appraisal charges and fees and taxes related
thereto, and other out-of-pocket expenses incurred by the Administrative Agent
and the cost of independent public accountants and other outside experts
retained by the Administrative Agent or any Lender. All amounts due under this
Section 11.04 shall be payable within ten Business Days after demand therefor.
The agreements in this Section shall survive the termination of the Aggregate
Revolving Commitments and repayment of all other Obligations.

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11.05 Indemnification by the Borrower.

         Whether or not the transactions contemplated hereby are consummated,
the Borrower agrees to indemnify and hold harmless each Agent-Related Person,
each Lender and their respective Affiliates, directors, officers, employees,
counsel, trustees, advisors, agents and attorneys-in-fact (collectively the
"Indemnitees") from and against any and all liabilities, obligations, losses,
damages, penalties, claims, demands, actions, judgments, suits, costs, expenses
and disbursements (including Attorney Costs) of any kind or nature whatsoever
which may at any time be imposed on, or incurred by any such Indemnitee in any
way relating to or arising out of or in connection with (a) the execution,
delivery, enforcement, performance or administration of any Loan Document or any
other agreement, letter or instrument delivered in connection with the
transactions contemplated thereby or the consummation of the transactions
contemplated thereby, (b) any Commitment, Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by any L/C Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (c) any actual or alleged presence or release of
Hazardous Materials on or from any property currently or formerly owned or
operated by the Borrower, any Subsidiary or any other Loan Party, or any
Environmental Liability related in any way to the Borrower, any Subsidiary or
any other Loan Party, or (d) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory (including any investigation of, preparation for, or defense of any
pending or threatened claim, investigation, litigation or proceeding) and
regardless of whether any Indemnitee is a party thereto (all the foregoing,
collectively, the "Indemnified Liabilities"); provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, costs, expenses or disbursements (i) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee, or (ii) arise out
of a dispute solely between two or more Indemnitees not caused by or involving
in any way the Borrower or any Subsidiary. Neither the Borrower nor any
Indemnitee shall be liable for any damages arising from the use by others of any
information or other materials obtained through IntraLinks or other similar
information transmission systems in connection with this Agreement, nor shall
any Indemnitee have any liability for any indirect or consequential damages
relating to this Agreement or any other Loan Document or arising out of its
activities in connection herewith or therewith (whether before or after the
Closing Date). All amounts due under this Section 11.05 shall be payable within
ten Business Days after demand therefor. The agreements in this Section shall
survive the resignation of the Administrative Agent, the replacement of any
Lender, the termination of the Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

11.06 Payments Set Aside.

         To the extent that any payment by or on behalf of any Loan Party is
made to the Administrative Agent or any Lender, or the Administrative Agent or
any Lender exercises its right of set-off, and such payment or the proceeds of
such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

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11.07 Successors and Assigns.

         (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section or (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or transfer
by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to
the extent expressly contemplated hereby, the Indemnitees) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

         (b) Any Lender may at any time assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans (including for purposes of this
subsection (b), participations in L/C Obligations and in Swing Line Loans) at
the time owing to it); provided that (i) except in the case of an assignment of
the entire remaining amount of the assigning Lender's Commitment and the Loans
at the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund (as defined in subsection (g) of this
Section) with respect to a Lender, the aggregate amount of the Commitment (which
for this purpose includes Loans outstanding thereunder) subject to each such
assignment, determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent or, if "Trade Date"
is specified in the Assignment and Assumption, as of the Trade Date, shall not
be less than $2,500,000 in the case of an assignment of Revolving Loans or Term
Loan Commitments and $1,000,000 in the case of an assignment of the Term Loan or
Incremental Term Loans unless the Administrative Agent and, so long as no Event
of Default has occurred and is continuing, the Borrower, otherwise consents
(each such consent not to be unreasonably withheld or delayed); (ii) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender's Loans and Commitments, and rights and obligations with
respect thereto, assigned, except that this clause (ii) shall not apply to
rights in respect of Swing Line Loans; (iii) any assignment of a Revolving
Commitment must be approved by the Administrative Agent, the L/C Issuers and the
Swing Line Lender unless the Person that is the proposed assignee is itself a
Lender (whether or not the proposed assignee would otherwise qualify as an
Eligible Assignee); and (iv) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee of $3,500. Subject to acceptance and recording
thereof by the Administrative Agent pursuant to subsection (c) of this Section,
from and after the effective date specified in each Assignment and Assumption,
the Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, 11.04 and 11.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment). Upon request, the
Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

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         (c) The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the "Register"). The entries in
the Register shall be conclusive, and the Borrower, the Administrative Agent and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender at any reasonable time
and from time to time upon reasonable prior notice.

         (d) Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower's Affiliates
or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's
rights and/or obligations under this Agreement (including all or a portion of
its Commitment and/or the Loans (including such Lender's participations in L/C
Obligations and/or Swing Line Loans) owing to it); provided that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in clauses (a) through
(g) of the first proviso to Section 11.01 that directly affects such
Participant. Subject to subsection (e) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and
3.05 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 11.09
as though it were a Lender, provided such Participant agrees to be subject to
Section 2.13 as though it were a Lender.

         (e) A Participant shall not be entitled to receive any greater payment
under Section 3.01 or 3.04 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower's
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 11.15 as though
it were a Lender.

         (f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement (including under its Note,
if any) to secure obligations of such Lender, including any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

         (g) As used herein, the following terms have the following meanings:

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; (c) an Approved Fund; and (d) any other Person (other than a
         natural person) approved by (i) the Administrative Agent (and in the
         case of an assignment of a Revolving Commitment, the L/C Issuers and
         the

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         Swing Line Lender), and (ii) with respect to Revolving Loans, unless an
         Event of Default has occurred and is continuing, the Borrower (each
         such approval not to be unreasonably withheld or delayed); provided
         that notwithstanding the foregoing, "Eligible Assignee" shall not
         include the Borrower or any of the Borrower's Affiliates or
         Subsidiaries.

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

         (h) Notwithstanding anything to the contrary contained herein, if at
any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon thirty days' notice to the
Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon thirty days'
notice to the Borrower, resign as Swing Line Lender. In the event of any such
resignation as an L/C Issuer or Swing Line Lender, the Borrower shall be
entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line
Lender hereunder; provided, however, that no failure by the Borrower to appoint
any such successor shall affect the resignation of Bank of America as an L/C
Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as
an L/C Issuer, it shall retain all the rights and obligations of an L/C Issuer
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as an L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Loans or
fund participation interests in Unreimbursed Amounts pursuant to Section
2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all
the rights of the Swing Line Lender provided for hereunder with respect to Swing
Line Loans made by it and outstanding as of the effective date of such
resignation, including the right to require the Lenders to make Base Rate Loans
or fund participation interests in outstanding Swing Line Loans pursuant to
Section 2.04(c).

11.08 Confidentiality.

         Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates' respective
partners, directors, officers, employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential and that the Administrative Agent, any L/C Issuer
or any Lender, as applicable, shall be responsible for any violation of this
Section 11.08 by such Person); (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it; (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process; (d)
to any other party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder; (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any Eligible
Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii)
any direct or indirect contractual counterparty or prospective counterparty (or
such contractual counterparty's or prospective counterparty's professional
advisor) to any credit derivative transaction relating to obligations of the
Loan Parties; (g) with the consent of the Borrower; (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Administrative Agent or any Lender
on a nonconfidential basis from a source other than the Borrower; or (i) to the
National Association of Insurance Commissioners or any other similar
organization or any nationally

                                       93
<PAGE>

recognized rating agency that requires access to information about a Lender's or
its Affiliates' investment portfolio in connection with ratings issued with
respect to such Lender or its Affiliates. In addition, the Administrative Agent
and the Lenders may disclose the existence of this Agreement and information
about this Agreement to market data collectors, similar service providers to the
lending industry, and service providers to the Administrative Agent and the
Lenders in connection with the administration and management of this Agreement,
the other Loan Documents, the Commitments, and the Credit Extensions. For the
purposes of this Section, "Information" means all information received from the
Borrower or any of its Subsidiaries relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis
prior to disclosure by the Borrower or any Subsidiary. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

11.09 Set-off.

         In addition to any rights and remedies of the Lenders provided by law,
upon the occurrence and during the continuance of any Event of Default, each
Lender and any Affiliate of any Lender is authorized at any time and from time
to time, without prior notice to the Borrower or any other Loan Party, any such
notice being waived by the Borrower (on its own behalf and on behalf of each
Loan Party) to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender to or for
the credit or the account of the respective Loan Parties against any and all
Obligations owing to such Lender hereunder or under any other Loan Document, now
or hereafter existing, irrespective of whether or not the Administrative Agent
or such Lender shall have made demand under this Agreement or any other Loan
Document and although such Obligations may be contingent or unmatured or
denominated in a currency different from that of the applicable deposit or
indebtedness. Each Lender agrees promptly to notify the Borrower and the
Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

11.10 Interest Rate Limitation.

         Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall
not exceed the maximum rate of non-usurious interest permitted by applicable Law
(the "Maximum Rate"). If the Administrative Agent or any Lender shall receive
interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Loans or, if it exceeds such unpaid
principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable
Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b) exclude voluntary prepayments and the effects
thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal
parts the total amount of interest throughout the contemplated term of the
Obligations hereunder.

11.11 Counterparts.

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

                                       94
<PAGE>

11.12 Integration.

         This Agreement, together with the other Loan Documents, comprises the
complete and integrated agreement of the parties on the subject matter hereof
and thereof and supersedes all prior agreements, written or oral, on such
subject matter. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement
shall control; provided that the inclusion of supplemental rights or remedies in
favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was
drafted with the joint participation of the respective parties thereto and shall
be construed neither against nor in favor of any party, but rather in accordance
with the fair meaning thereof.

11.13 Survival of Representations and Warranties.

         All representations and warranties made hereunder and in any other Loan
Document or other document delivered pursuant hereto or thereto or in connection
herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

11.14 Severability.

         If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

11.15 Tax Forms.

                  (a) (i) Each Lender that is not a "United States person"
         within the meaning of Section 7701(a)(30) of the Internal Revenue Code
         (a "Foreign Lender") shall deliver to the Administrative Agent and the
         Borrower, prior to receipt of any payment subject to withholding under
         the Internal Revenue Code (or upon accepting an assignment of an
         interest herein), two duly signed completed copies of either IRS Form
         W-8BEN or any successor thereto (relating to such Foreign Lender and
         entitling it to an exemption from, or reduction of, withholding tax on
         all payments to be made to such Foreign Lender by the Borrower pursuant
         to this Agreement) or IRS Form W-8ECI or any successor thereto
         (relating to all payments to be made to such Foreign Lender by the
         Borrower pursuant to this Agreement) or such other evidence
         satisfactory to the Borrower and the Administrative Agent that such
         Foreign Lender is entitled to an exemption from, or reduction of, U.S.
         withholding tax, including any exemption pursuant to Section 881(c) of
         the Internal Revenue Code. Thereafter and from time to time, each such
         Foreign Lender shall (A) promptly submit to the Administrative Agent
         and the Borrower such additional duly completed and signed copies of
         one of such forms (or such successor forms as shall be adopted from
         time to time by the relevant United States taxing authorities) as may
         then be available under then current United States laws and regulations
         to avoid, or such evidence as is satisfactory to the Borrower and the
         Administrative Agent of any available exemption from or reduction of,
         United

                                       95
<PAGE>

         States withholding taxes in respect of all payments to be made to such
         Foreign Lender by the Borrower pursuant to this Agreement, (B) promptly
         notify the Administrative Agent and the Borrower of any change in
         circumstances which would modify or render invalid any claimed
         exemption or reduction, and (C) take such steps as shall not be
         materially disadvantageous to it, in the reasonable judgment of such
         Lender, and as may be reasonably necessary (including the
         re-designation of its Lending Office) to avoid any requirement of
         applicable Laws that the Borrower make any deduction or withholding for
         taxes from amounts payable to such Foreign Lender.

                  (ii) Each Foreign Lender, to the extent it does not act or
         ceases to act for its own account with respect to any portion of any
         sums paid or payable to such Lender under any of the Loan Documents
         (for example, in the case of a typical participation by such Lender),
         shall deliver to the Administrative Agent and the Borrower on the date
         when such Foreign Lender ceases to act for its own account with respect
         to any portion of any such sums paid or payable, and at such other
         times as may be necessary in the determination of the Administrative
         Agent (in the reasonable exercise of its discretion), (A) two duly
         signed completed copies of the forms or statements required to be
         provided by such Lender as set forth above, to establish the portion of
         any such sums paid or payable with respect to which such Lender acts
         for its own account that is not subject to U.S. withholding tax, and
         (B) two duly signed completed copies of IRS Form W-8IMY (or any
         successor thereto), together with any information such Lender chooses
         to transmit with such form, and any other certificate or statement of
         exemption required under the Internal Revenue Code, to establish that
         such Lender is not acting for its own account with respect to a portion
         of any such sums payable to such Lender.

                  (iii) The Borrower shall not be required to pay any additional
         amount to any Foreign Lender under Section 3.01 (A) with respect to any
         Taxes required to be deducted or withheld on the basis of the
         information, certificates or statements of exemption such Lender
         transmits with an IRS Form W-8IMY pursuant to this Section 11.15(a) or
         (B) if such Lender shall have failed to satisfy the foregoing
         provisions of this Section 11.15(a); provided that if such Lender shall
         have satisfied the requirement of this Section 11.15(a) on the date
         such Lender became a Lender or ceased to act for its own account with
         respect to any payment under any of the Loan Documents, nothing in this
         Section 11.15(a) shall relieve the Borrower of its obligation to pay
         any amounts pursuant to Section 3.01 in the event that, as a result of
         any change in any applicable law, treaty or governmental rule,
         regulation or order, or any change in the interpretation,
         administration or application thereof, such Lender is no longer
         properly entitled to deliver forms, certificates or other evidence at a
         subsequent date establishing the fact that such Lender or other Person
         for the account of which such Lender receives any sums payable under
         any of the Loan Documents is not subject to withholding or is subject
         to withholding at a reduced rate.

                  (iv) The Administrative Agent may, without reduction, withhold
         any Taxes required to be deducted and withheld from any payment under
         any of the Loan Documents with respect to which the Borrower is not
         required to pay additional amounts under this Section 11.15(a).

                  (b) Upon the request of the Administrative Agent, each Lender
         that is a "United States person" within the meaning of Section
         7701(a)(30) of the Internal Revenue Code shall deliver to the
         Administrative Agent two duly signed completed copies of IRS Form W-9.
         If such Lender fails to deliver such forms, then the Administrative
         Agent may withhold from any interest payment to such Lender an amount
         equivalent to the applicable back-up withholding tax imposed by the
         Internal Revenue Code, without reduction.

                  (c) If any Governmental Authority asserts that the
         Administrative Agent did not properly withhold or backup withhold, as
         the case may be, any tax or other amount from

                                       96
<PAGE>

         payments made to or for the account of any Lender, such Lender shall
         indemnify the Administrative Agent therefor, including all penalties
         and interest, any taxes imposed by any jurisdiction on the amounts
         payable to the Administrative Agent under this Section, and costs and
         expenses (including Attorney Costs) of the Administrative Agent. The
         obligation of the Lenders under this Section shall survive the
         termination of the Aggregate Revolving Commitments, repayment of all
         other Obligations hereunder and the resignation of the Administrative
         Agent.

11.16 Replacement of Lenders.

                  Under any circumstances set forth herein providing that the
         Borrower shall have the right to replace a Lender as a party to this
         Agreement, the Borrower may, upon notice to such Lender and the
         Administrative Agent, replace such Lender by causing such Lender to
         assign its Commitment and outstanding Loans (with the assignment fee to
         be paid by the Borrower in such instance) pursuant to Section 11.07(b)
         to one or more other Lenders or Eligible Assignees procured by the
         Borrower; provided, however, that if the Borrower elects to exercise
         such right with respect to any Lender pursuant to Section 3.06(b), it
         shall be obligated to replace all Lenders that have made similar
         requests for compensation pursuant to Section 3.01 or 3.04. The
         Borrower shall (x) pay in full all principal, interest, fees and other
         amounts owing to such Lender through the date of replacement (including
         any amounts payable pursuant to Section 3.05), (y) provide appropriate
         assurances and indemnities (which may include letters of credit) to the
         L/C Issuers and the Swing Line Lender as each may reasonably require
         with respect to any continuing obligation to fund participation
         interests in any L/C Obligations or any Swing Line Loans then
         outstanding, and (z) release such Lender from its obligations under the
         Loan Documents. Any Lender being replaced shall execute and deliver an
         Assignment and Assumption with respect to such Lender's Commitment and
         outstanding Loans and participations in L/C Obligations and Swing Line
         Loans.

11.17 Governing Law.

         (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, the LAW OF THE STATE OF NORTH CAROLINA applicable to agreements made and
to be performed entirely within such State; PROVIDED THAT THE ADMINISTRATIVE
Agent AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

         (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NORTH
CAROLINA SITTING IN CHARLOTTE, NORTH CAROLINA OR OF THE UNITED STATES FOR THE
WESTERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH PARTY HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PARTY HERETO IRREVOCABLY WAIVES
ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH PARTY HERETO WAIVES PERSONAL
SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY
OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

                                       97
<PAGE>

11.18 Waiver of Right to Trial by Jury.

         EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

11.19 USA PATRIOT Act Notice.

         Each Lender and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrowers that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the "Act"), it is required to obtain, verify and record information that
identifies the Loan Parties, which information includes the name and address of
each Loan Party and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify such Loan Party in accordance
with the Act.

                            [SIGNATURE PAGES FOLLOW]

                                       98
<PAGE>

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

BORROWER:                           RENAL CARE GROUP, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Executive Vice President

GUARANTORS:                         RENAL CARE GROUP EAST, INC.,
                                    a Pennsylvania corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP MICHIGAN, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    MICHIGAN HOME DIALYSIS CENTER,
                                    INC.,
                                    a Michigan corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP OF THE MIDWEST,
                                    INC.,
                                    a Kansas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    FOUR STATE REGIONAL DIALYSIS
                                    CENTER, INC.,
                                    a Missouri corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    FORT SCOTT REGIONAL DIALYSIS
                                    CENTER, INC.,
                                    a Missouri corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    MIAMI REGIONAL DIALYSIS CENTER,
                                    INC.,
                                    a Missouri corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RCG MISSISSIPPI, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP OF THE
                                    SOUTHEAST, INC.,
                                    a Florida corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    NORTHEAST ALABAMA KIDNEY CLINIC,
                                    INC.,
                                    an Alabama corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP TEXAS, INC.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    DIALYSIS MANAGEMENT
                                    CORPORATION,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RCG PA MERGER CORP.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    STAT DIALYSIS CORPORATION,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    ANGLETON DIALYSIS, INC.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    BRAZORIA KIDNEY CENTER, INC.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    FONDREN DIALYSIS CLINIC, INC.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    WHARTON DIALYSIS, INC.,
                                    a Texas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    JEFFERSON COUNTY DIALYSIS, INC.,
                                    an Arkansas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    KDCO, INC.,
                                    a Missouri corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    LAWTON DIALYSIS, INC.,
                                    an Arkansas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    LITTLE ROCK DIALYSIS, INC.,
                                    an Arkansas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    NORTHWEST DIALYSIS, INC.,
                                    an Arkansas corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENALAB, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RCG FINANCE, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    RENALPARTNERS, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENALNET, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    WOUND CARE GROUP, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    DIABETES CARE GROUP, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP ARIZONA, INC.,
                                    an Arizona corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP NORTHWEST, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENALNET, ARIZONA, INC.,
                                    an Arizona corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    RCG UNIVERSITY DIVISION, INC.,
                                    a Tennessee corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    R.C.G. SUPPLY COMPANY,
                                    a Tennessee corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP ALASKA, INC.,
                                    an Alaska corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP SOUTHWEST
                                    HOLDINGS, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    DIALYSIS CENTERS OF AMERICA -
                                    ILLINOIS, INC.,
                                    an Illinois corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    SSKG, INC.,
                                    an Illinois corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP OHIO, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

                                    PHYSICIANS DIALYSIS COMPANY, INC.,
                                    a Pennsylvania corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    DIALYSIS LICENSING CORP.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RCGIH, INC.,
                                    a Delaware corporation

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP SOUTHWEST, L.P.,
                                    a Delaware limited partnership

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RCG INDIANA, L.L.C.,
                                    a Delaware limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Executive Vice President

                                    KIDNEY DISEASE CENTER OF THE
                                    OZARKS, L.L.C.,
                                    a Missouri limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Executive Vice President

                                    STUTTGART DIALYSIS, LLC,
                                    an Arkansas limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Executive Vice President

<PAGE>

                                    RCG REST HEALTH SUPPLY, L.C.,
                                    an Arizona limited company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    KENTUCKY RENAL CARE GROUP, LLC,
                                    a Delaware limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    ARIZONA RENAL INVESTMENTS, LLC,
                                    a Delaware limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP TEXAS, LP,
                                    a Delaware limited partnership

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

                                    RENAL CARE GROUP WESTLAKE, LLC,
                                    a Delaware limited liability company

                                    By: /s/ David M. Dill
                                        ------------------------------------
                                    Name: David M. Dill
                                    Title: Vice President

<PAGE>

ADMINISTRATIVE
AGENT:                             BANK OF AMERICA, N.A.,
                                   as Administrative Agent

                                   By: /s/ Angela Lau
                                       -----------------------------------
                                   Name: Angela Lau
                                   Title: Assistant Vice President

LENDERS:                           BANK OF AMERICA, N.A.,
                                   as a Lender, L/C Issuer and Swing Line Lender

                                   By: /s/ Philip S. Durand
                                       -----------------------------------
                                   Name: Philip S. Durand
                                   Title: Managing Director

                                   SUNTRUST BANK

                                   By: /s/ William D. Priester
                                       -----------------------------------
                                   Name: William D. Priester
                                   Title: Director

                                   WACHOVIA BANK, NATIONAL ASSOCIATION

                                   By: /s/ Lise Hinton
                                       -----------------------------------
                                   Name: Lise Hinton
                                   Title: Vice President

                                   DEUTSCHE BANK TRUST COMPANY AMERICAS

                                   By: /s/ Diane F. Rolfe
                                       -----------------------------------
                                   Name: Diane F. Rolfe
                                   Title: Vice President

                                   AMSOUTH BANK

                                   By: /s/ Bill Beccell
                                       -----------------------------------
                                   Name: Bill Beccell
                                   Title: Vice President

                                   KEY BANK NATIONAL ASSOCIATION

                                   By: /s/ James A. Taylor
                                       -----------------------------------
                                   Name: James A. Taylor
                                   Title: Vice President

<PAGE>

                                    BANK FUR ARBEIT UND WIRTCHAFT
                                    AKTIENGESESLLSCHAFT

                                    By: /s/ Dr. Harald Raffy
                                        -----------------------------------
                                    Name: Dr. Harald Raffy
                                    Title: Senior VP

                                    By: /s/ Ever Weitz
                                        -----------------------------------
                                    Name: Ever Weitz
                                    Title: Vice President

                                    COMMERZBANK AG, NEW YORK AND GRAND CAYMAN
                                    BRANCHES

                                    By: /s/ Harry P. Yergey
                                        -----------------------------------
                                    Name: Harry P. Yergey
                                    Title: Senior Vice President & Manager

                                    U.S. BANK, NATIONAL ASSOCIATION

                                    By: /s/ S. Walker Choppin
                                        -----------------------------------
                                    Name: S. Walker Choppin
                                    Title: Senior Vice President

                                    CREDIT LYONNAIS NEW YORK BRANCH

                                    By: /s/ Charles Heidsieck
                                        -----------------------------------
                                    Name: Charles Heidsieck
                                    Title: Senior Vice President

                                    NATIONAL CITY BANK OF KENTUCKY

                                    By: /s/ Deroy Scott
                                        -----------------------------------
                                    Name: Deroy Scott
                                    Title: Senior Vice President

                                    WELLS FARGO BANK ARIZONA, N.A.

                                    By: /s/ Donna R. Parker
                                        -----------------------------------
                                    Name: Donna R. Parker
                                    Title: Vice President

                                    HARRIS TRUST AND SAVINGS BANK

                                    By: /s/ Gloria Compean-Endicott
                                        -----------------------------------
                                    Name: Gloria Compean-Endicott
                                    Title: Managing Director

                                    COMMERZBANK AG, NEW YORK
                                    AND GRAND CAYMAN BRANCHES

                                    By: /s/ Subash R. Viswanathan
                                        -----------------------------------
                                    Name: Subash R. Viswanathan
                                    Title: Senior Vice President
<PAGE>

                                    UNION PLANTERS BANK, N.A.

                                    By: /s/ Craig E. Gardella
                                        -----------------------------------
                                    Name: Craig E. Gardella
                                    Title: Senior Vice President

                                    WASHINGTON MUTUAL BANK

                                    By: /s/ Richard J. Ameny, Jr.
                                        -----------------------------------
                                    Name: Richard J. Ameny, Jr.
                                    Title: Vice President

                                    MIZUHO CORPORATE BANK, LTD.

                                    By: /s/ Greg Botshon
                                        -----------------------------------
                                    Name: Greg Botshon
                                    Title:

                                    UFJ BANK, LIMITED

                                    By: /s/ Russell Bohner
                                        -----------------------------------
                                    Name: Russell Bohner
                                    Title: Vice President

                                    BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                    By: /s/ Spencer Hughes
                                        -----------------------------------
                                    Name: Spencer Hughes
                                    Title: Vice President

                                    FIFTH THIRD BANK

                                    By: /s/ Sandy Hamrick
                                        -----------------------------------
                                    Name: Sandy Hamrick
                                    Title: Vice President<PAGE>

                                                                  EXHIBIT 10.106

                               AMENDMENT NO. 1 TO
                              EMPLOYMENT AGREEMENT

         THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT ("Amendment") is entered
into as of the 17th day of July, 2003, by and between TIMCO AVIATION SERVICES,
INC., a Delaware corporation ("Company"), and ROY T. RIMMER, JR. ("Employee")

                             PRELIMINARY STATEMENTS

         A. The parties have previously entered into that certain Employment
Agreement dated March 20, 2002 (the "Agreement"). Unless otherwise defined,
capitalized terms used herein shall have the meanings given to them in the
Agreement.

         B. The parties wish to amend the Agreement to reflect the terms set
forth below.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises, the mutual covenants
set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

         1. Section 1(b) of the Agreement is hereby amended by deleting all of
its text and replacing it with the following text:

                  (b) Employment Period. Subject to the terms and conditions set
                  forth herein and unless sooner terminated as hereinafter
                  provided, Company shall employ Employee and Employee agrees to
                  serve as an employee of Company for the period commencing on
                  March 20, 2002 and ending on December 31, 2006, which initial
                  term shall automatically renew for consecutive one year
                  periods, unless terminated by either party by twelve (12)
                  months notice prior to the expiration of the initial term or
                  any renewal term (the "Employment Term"). For purposes of this
                  Agreement, the Employment Term and any renewal term thereof
                  are collectively referred to herein as the "Employment
                  Period."

         2. Except as amended hereby, the Agreement shall remain in full force
and effect.

                            [Signatures on Next Page]

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the date first above written.

                                            TIMCO AVIATION SERVICES, INC., a
                                            Delaware corporation

                                            By: /s/ C. Robert Campbell
                                                --------------------------------
                                                C. Robert Campbell
                                                Executive Vice President and CFO

                                            EMPLOYEE:

                                            /s/ Roy T. Rimmer, Jr.
                                            ------------------------------------
                                            ROY T. RIMMER, JR.

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