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                                                                    EXHIBIT 10.7

                              AMENDED AND RESTATED

                             STEINER LEISURE LIMITED

                          NON-EMPLOYEE DIRECTORS' SHARE
                                   OPTION PLAN

                                 APRIL 27, 2000

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                             STEINER LEISURE LIMITED
                    NON-EMPLOYEE DIRECTORS' SHARE OPTION PLAN

         1.       INTRODUCTION.

         This plan shall be known as the "Steiner Leisure Limited Non-Employee
Directors' Share Option Plan" (this "Plan"). This Plan sets forth the terms of
grants of options (each, an ""ption") to purchase the common shares (the
"Shares") of Steiner Leisure Limited (the "Company") to Non-Employee Directors
(as defined below) of the Company. The purpose of this Plan is to advance the
interests of Company and its shareholders by promoting an identity of interest
between the Company's non-employee directors and its shareholders, providing
non-employee directors with a proprietary stake in the Company's success and
strengthening the Company's ability to attract and retain qualified non-employee
directors by affording such persons an opportunity to share in the future
success of the Company.

         2.       DEFINITIONS.

                  (a) ACT means the Securities Act of 1933, as amended.

                  (b) BOARD means the Board of Directors of the Company.

                  (c) COMPANY means Steiner Leisure Limited.

                  (d) DATE OF GRANT means the date as of which an Option is
granted to a Non-Employee Director pursuant to Section 5 of this Plan.

                  (e) EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended.

                  (f) FAIR MARKET VALUE means, on the date in question, or if
the prices described in clauses (i) and (ii), below, are not available on such
date, on the latest date preceding the date in question on which such prices are
available, (i) the closing sales price per share of the Shares underlying an
Option on the Nasdaq Stock Market ("Nasdaq") or, if the Shares are not then
traded on Nasdaq, on any national securities exchange, or (ii) if the Shares are
not then traded on Nasdaq or such exchange, and are then traded on an
over-the-counter market, the average of the closing bid and asked prices for the
Shares in such over-the-counter market or (iii) if the Shares are then not
listed on Nasdaq or such exchange, or traded in an over-the-counter market, such
value as the Board may determine.

                  (g) NON-EMPLOYEE DIRECTOR means a member of the Board of
Directors of the Company who is not an employee of the Company or any subsidiary
(as defined under Rule 12b-2 under the Exchange Act) of the Company on a date in
question.

                  (h) OPTIONS means the options to purchase Shares granted
pursuant to this Plan.

                  (i) PLAN means this Steiner Leisure Limited Directors' Share
Option Plan.

                  (j) SHARES means the common shares of the Company, par value
(U.S.) $.01 per share.

         3.       ADMINISTRATION.

         This Plan shall be administered by the Board or a committee of the
Board so designated by the Board to administer this Plan. Where the context so
requires, references to the Board herein shall refer to any such committee.
Subject to the provisions of this Plan, the Board shall be authorized to
interpret this Plan, to establish, amend and rescind any rules and regulations
relating to this Plan and to make all other determinations necessary or
advisable for the administration of this Plan; provided, however, that the Board
shall have no discretion with respect to the selection of directors to receive
Options, the number of Shares to be received upon exercise of Options or the
timing of grants of Options, all of which shall be determined in accordance with

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the provisions of this Plan. Notwithstanding the foregoing, the Board may amend
this Plan pursuant to Section 8, below. The determinations of the Board in the
administration of this Plan, as described herein, shall be final and conclusive.
The Chairman of the Board and the Chief Operating Officer of the Company, and
either of them, shall be authorized to implement this Plan in accordance with
its terms and to take such actions of a ministerial nature as shall be necessary
to effectuate the intent and purposes thereof. Except as otherwise provided
herein, the validity, construction and effect of this Plan and any rules and
regulations relating to this Plan shall be determined in accordance with the
laws of the Commonwealth of the Bahamas subject to any applicable requirements
under United States federal or state securities laws.

         4.       ELIGIBILITY; OPTION AGREEMENT.

         Only Non-Employee Directors shall be eligible to receive Options under
this Plan. Options shall be evidenced by written option agreements in such form
as the Board shall approve.

         5.       GRANTS OF OPTIONS.

         Options shall be granted to Non-Employee Directors, subject to Section
5(o), below, and the limitation on the number of Shares that may be issued under
this Plan as described in Section 6, below, as follows:

                  (a) GRANTS TO INITIAL DIRECTORS. Each of the initial four
Non-Employee Directors (the "Initial Directors") shall be granted, on the
effective date of the appointment or election of such Initial Director (the
"Initial Effective Date") without the need for further action by the Board, an
Option to purchase that number of Shares equal to 2,813 (which reflects
adjustment for splits of the Shares after the grant thereof) multiplied by a
fraction, the numerator of which is the number of days from the Initial
Effective Date until the scheduled date of the then next annual meeting of
Shareholders of the Company ("Annual Meeting") (or, if such date has not yet
been scheduled, a date approximating the date of the next Annual Meeting as
determined in good faith by the Board), and the denominator of which is 365.

                  (b) ANNUAL GRANTS. Commencing with the 2001 Annual Meeting, on
the date of each Annual Meeting during the term of this Plan (an "Annual Meeting
Date") each individual elected or re-elected as a Non-Employee Director at such
meeting or continuing as a Non-Employee Director shall be granted, without the
need for further action by the Board, an Option to purchase 5,000 Shares. In
addition, any Non-Employee Director who serves as Chairman of a committee of the
Board shall be granted on each Annual Meeting Date an Option to purchase an
additional 1,250 Shares for each such Chairmanship held.

                  (c) OTHER GRANTS. Any new Non-Employee Director who is
appointed by the Board to fill a vacancy on the Board, or who is otherwise
appointed or elected to the Board otherwise than at an Annual Meeting shall be
granted, on the effective date of such appointment or election (the "Effective
Date"), without the need for further action by the Board, an Option to purchase
that number of Shares equal to 5,000 (plus any additional Shares as may be
required by the last sentence of Section 5(b), above) multiplied by a fraction,
the numerator of which is the number of days from the Effective Date until the
scheduled date of the then next Annual meeting (or, if such date has not yet
been scheduled, the anniversary date of the then immediately preceding Annual
Meeting or, in the absence of such date, a date approximating the date of the
next Annual Meeting as determined in good faith by the Board), and the
denominator of which is 365.

                  (d) EXTRAORDINARY GRANTS. On April 27, 2000, each Non-Employee
Director shall receive Options to purchase 10,000 Shares. In addition, the
Non-Employee Director who serves as Chairman of each committee of the Board
shall receive, on April 27, 2000, an Option to purchase an additional 1,250
Shares for each such Chairmanship held.

                  (e) EXERCISE PRICE. The exercise price of each Option shall be
the Fair Market Value of the Shares on the Date of Grant.

                  (f) DURATION OF OPTIONS. Except as otherwise provided herein
or in the option agreement with respect to an Option grant, the latest date on
which an Option may be exercised (the "Final Exercise Date") shall be the date
which is ten years from the Date of Grant.

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                  (g) EXERCISE OF OPTIONS. Except as otherwise provided herein
or in the option agreement with respect to an Option grant, an Option shall
become exercisable one year after the Date of Grant. An Option may be exercised
by giving written notice to the Secretary of the Company specifying the number
of Shares to be purchased, accompanied by the full purchase price for the Shares
to be purchased. An Option may not be exercised for a fraction of a Share.

                  (h) PAYMENT FOR SHARES. Shares purchased pursuant to the
exercise of an Option granted under this Plan shall be paid for as follows: (i)
in cash or by certified check, bank draft or money order payable to the order of
the Company, (ii) through the delivery of Shares having a Fair Market Value on
the last business day preceding the date of exercise equal to the purchase
price, provided that, in the case of Shares acquired directly from the Company,
such Shares have been held for at least six months, or (iii) by a combination of
cash and Shares, as provided in clauses (i) and (ii), above.

                  (i) WITHHOLDING TAXES. Prior to issuance of the Shares upon
exercise of an Option, the Option holder shall pay or make adequate provision
for any applicable United States federal or state, or other tax withholding
obligations of the Company. Where approved by the Board in its sole discretion,
the Option holder may provide for the payment of withholding taxes upon exercise
of the Option by requesting that the Company retain Shares with a Fair Market
Value equal to the amount of taxes required to be withheld. In such case, the
Company shall issue the net number of Shares to the Option holder by deducting
the Shares retained from the Shares with respect to which the Option was
exercised. The Fair Market Value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be
determined. All elections by Option holders to have Shares withheld for this
purpose shall be made in writing in form acceptable to the Board.

                  (j) DELIVERY OF SHARE CERTIFICATES. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the certificate evidencing the
Shares underlying an Option, an Option holder shall not have any rights as a
shareholder of the Company. A certificate for the number of Shares purchased
pursuant to the exercise of an Option shall be issued as soon as practicable
after exercise of the Option. However, the Company shall not be obligated to
deliver a certificate evidencing Shares issuble under an Option (i) until, in
the opinion of the Company's counsel, all applicable Bahamas and United States
federal and state laws and regulations have been complied with and any
applicable taxes have been paid, (ii) if the Shares are at the time traded on
Nasdaq or any national securities exchange, until the Shares represented by the
certificate to be delivered have been listed or are authorized to be listed on
Nasdaq or such exchange, and (iii) until all other legal matters in connection
with the issuance and delivery of such certificate have been approved by the
Company's counsel. If the sale of Shares has not been registered under the Act,
the Company may require, as a condition to exercise of the Option, such
representations or agreements as counsel for the Company may consider
appropriate to avoid violation of the Act and may require that the certificate
evidencing such Shares bear an appropriate legend restricting transfer. The
inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company's counsel to be necessary
to the lawful issuance and sale of any Shares hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such Shares.

                  (k) ASSIGNMENT OR TRANSFER. Except as set forth in this
Section 5(j), no Option may be transferred other than by will or by the laws of
descent and distribution, and during a Non-Employee Director's lifetime an
Option may be exercised only by the Non-Employee Director to whom it was
granted. An Option may be transferred to a (i) Non-Employee Director's spouse,
children or grandchildren (referred to herein as "Family Members"), (ii) a trust
or trusts for the exclusive benefit of Family Members or (iii) a partnership in
which Family Members are the only partners. Any transfer pursuant to this
Section 5 (j) shall be subject to the following: (i) there shall be no
consideration for such transfer, (ii) there may be no subsequent transfers
without the approval of the Board and (iii) all transfers shall be made so that
no liability under Section 16(b) of the Exchange Act arises as a result of such
transfer. Following any transfer, an Option shall continue to be subject to the
same terms and conditions as were applicable to the Non-Employee Director
immediately prior to transfer, with the transferee being deemed to be the
Non-Employee Director for such purposes, except that the events of death and
termination of service described in Sections 5(k) and 5(l), below, shall
continue to apply with respect to the Non-Employee Director.

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                  (l) DEATH. Upon the death of a Non-Employee Director, all
Options held by such Non-Employee Director that are not then exercisable shall
immediately become exercisable. All Options held by such Non-Employee Director
immediately prior to death may be exercised by his or her executor or
administrator, or by the person or persons to whom the Option is transferred by
will or the applicable laws of descent and distribution, at any time within the
three years following the date of death (but not later than the Final Exercise
Date); provided, however, that the Company shall be under no obligation to
deliver a certificate representing Shares that may be issued pursuant to such
exercise until the Company is satisfied as to the authority of the person or
persons exercising the Option.

                  (m) OTHER TERMINATION OF STATUS OF NON-EMPLOYEE DIRECTOR. If a
Non-Employee Director ceases to be a member of the Board for any reason other
than death, all Options held by such Non-Employee Director that are not then
exercisable shall terminate three years following the date they first become
exercisable. Options that are exercisable on the date of such termination shall
continue to be exercisable for a period of three years following the date of
termination (or until the Final Exercise Date, if earlier). Notwithstanding the
foregoing, all Options held by a Non-Employee Director shall terminate
immediately upon the termination of such Non-Employee Director's membership on
the Board if such termination was based on the misconduct of such Non-Employee
Director. After completion of the aforesaid three-year periods, such Options
shall terminate to the extent not previously exercised, expired or terminated.

                  (n) CHANGE IN CONTROL. In the event of a Change in Control (as
defined below) of the Company, any Options outstanding as of the date of such
Change in Control is determined to have occurred that are not yet exercisable on
such date shall become fully exercisable. For purposes of this Section 5(m) a
"Change in Control" means the happening of any of the following:

                         (i)     any transaction as a result of which a change
                                 in control of the Company would be required to
                                 be reported in response to Item 1(a) of the
                                 Current Report on Form 8-K as in effect on the
                                 date hereof, pursuant to Sections 13 or 15(d)
                                 of the Exchange Act, whether or not the Company
                                 is then subject to such reporting requirement,
                                 otherwise than through an arrangement or
                                 arrangements consummated with the prior
                                 approval of the Board;

                         (ii)    any "person" or "group" within the meaning of
                                 Sections 13(d) and 14(d)(2) of the Exchange Act
                                 (a) becomes the "beneficial owner," as defined
                                 in Rule 13d-3 under the Exchange Act, of more
                                 than 20% of the then outstanding voting
                                 securities of the Company, otherwise than
                                 through a transaction or transactions arranged
                                 by, or consummated with the prior approval of,
                                 the Board or (b) acquires by proxy or otherwise
                                 the right to vote for the election of
                                 directors, for any merger or consolidation of
                                 the Company or for any other matter or
                                 question, more than 20% of the then outstanding
                                 voting securities of the Company, otherwise
                                 than through an arrangement or arrangements
                                 consummated with the prior approval of the
                                 Board;

                         (iii)   during any period of 24 consecutive months (not
                                 including any period prior to the adoption of
                                 this Plan), Present Directors and/or New
                                 Directors cease for any reason to constitute a
                                 majority of the Board. For purposes of the
                                 preceding sentence, "Present Directors" shall
                                 mean individuals who, at the beginning of such
                                 consecutive 24 month period, were members of
                                 the Board and "New Directors" shall mean any
                                 director whose election by the Board or whose
                                 nomination for election by the Company's
                                 shareholders was approved by a vote of at least
                                 two-thirds of the Directors then still in
                                 office who were Present Directors or New
                                 Directors; or

                         (iv)    any "person" or "group" within the meaning of
                                 Sections 13(d) and 14(d)(2) of the Exchange Act
                                 that is the "beneficial owner" as defined in
                                 Rule 13d-3 under the Exchange Act of 20% or
                                 more of the then outstanding voting securities
                                 of the Company commences soliciting proxies.

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                  (n) RULE 16B-3. Options granted hereunder are required to
comply with the applicable provisions of Rule 16b-3 under the Exchange Act and
the award thereof shall contain such additional conditions or restrictions as
may be required thereunder to qualify to the maximum extent for the exemption
from Section 16(b) of the Exchange Act available pursuant to Rule 16b-3.

         6.       SHARES AUTHORIZED.

                  (a) Subject to adjustment as provided below, the aggregate
number of Shares that may be issued pursuant to Options granted under this Plan
is 185,625. Such Shares may be authorized, but unissued Shares, or may be Shares
reacquired by the Company and held in treasury. If any Option granted under this
Plan terminates without being exercised in full, the number of Shares as to
which such Option was not exercised shall be available for future grants within
the limits set forth in this Section 6(a).

                  (b) Subject to any required action by the shareholders of the
Company in the event of any reorganization, recapitalization, share split, share
dividend, combination of shares, issuance of rights or any other change in the
capital or corporate structure of the Company, the number of Shares covered by
each outstanding Option and the number of Shares available for issuance under
this Plan, but as to which Options have not been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as
the exercise price per Share under outstanding Options, shall be adjusted
equitably to reflect the occurrence of such event; provided, however, that no
adjustments shall be made except as shall be necessary to preserve, rather than
enlarge or reduce the value of awards under this Plan. Any such adjustment shall
be made by the Board.

         7.       EFFECT AND DISCONTINUANCE.

         Neither adoption of this Plan nor the grant of Options to a
Non-Employee Director hereunder shall confer upon any person any right to
continued status as a director of the Company or affect in any way the right of
the Company to terminate a director at any time. The Board may at any time
discontinue granting Options under this Plan.

         8.       EFFECTIVE DATE; TERMINATION AND AMENDMENT OF PLAN.

                  (a) The effective date of this Plan shall be the date of its
adoption by the Board of Directors and shareholders of the Company as indicated
on the cover page of this Plan. The final award under this Plan shall be made on
the date of the Annual Meeting in 2006, but the pertinent terms of this Plan
shall continue thereafter while previously awarded Options remain outstanding.

                  (b) The Board may terminate or amend this Plan as it shall
deem advisable or to conform to any change in any law or regulation applicable
thereto; provided, however, that the Board may not make any amendment that would
reduce any award previously made under this Plan.

         9.       GENERAL PROVISIONS.

                  (a) Nothing in this Plan is intended to be a substitute for,
or shall preclude or limit the establishment or continuation of, any other plan,
practice or arrangement for the payment of compensation or benefits to
Non-Employee Directors that the Company now has or may hereafter put into
effect.

                  (b) Options awarded hereunder and Shares underlying such
Options shall be held by the Non-Employee Director for such period of time
required so as to avoid liability under Section 16(b) of the Exchange Act.

                  (c) Headings are given to sections of this Plan solely as a
convenience to facilitate reference and are not intended to affect the meaning
of any provision hereof. The references herein to any statute, regulation or
other provision of law shall be construed to refer to any amendment or successor
to such provisions.

                                      -5-<PAGE>   1

                                                                 Exhibit 10.7.1

                 FIRST AMENDMENT TO THREE-YEAR CREDIT AGREEMENT

         This FIRST AMENDMENT TO THREE-YEAR CREDIT AGREEMENT (this
"Amendment"), dated as of June 20, 2000, is by and among LINCARE HOLDINGS INC.,
a Delaware corporation (the "Borrower"), each of the Borrower's Subsidiaries
(individually a "Guarantor" and collectively the "Guarantors"; together with
the Borrower, individually a "Credit Party", and collectively the "Credit
Parties"), the Required Lenders signatory hereto and BANK OF AMERICA, N. A., as
Agent for the Lenders (in such capacity, the "Agent").

         W I T N E S S E T H

         WHEREAS, the Credit Parties, the Lenders and the Agent have entered
into that certain Three-Year Credit Agreement dated as of August 23, 1999 (the
"Existing Credit Agreement");

         WHEREAS, the Borrower has requested, and the Lenders have agreed, to
amend certain provisions of the Existing Credit Agreement as more fully set
forth below.

         NOW, THEREFORE, in consideration of the agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

                                     PART I
                                  DEFINITIONS

         SUBPART 1.1       Certain Definitions. Unless otherwise defined herein
or the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

                  "Amended Credit Agreement" means the Existing Credit
         Agreement as amended hereby.

                  "Amendment No. 1 Effective Date" is defined in Subpart 4.1.

         SUBPART 1.2       Other Definitions. Unless otherwise defined herein
or the context otherwise requires, terms used in this Amendment, including its
preamble and recitals, have the meanings provided in the Existing Credit
Agreement.

<PAGE>   2

                                    PART II
                    AMENDMENTS TO EXISTING CREDIT AGREEMENT

         Effective on (and subject to the occurrence of) the Amendment No. 1
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part 2.

         SUBPART 2.1       Amendments to Section 1.1. Section 1.1 of the
Existing Credit Agreement is hereby amended in the following respects:

                  (a)      The definition of "Change of Control" is hereby
         amended in its entirety to read as follows:

                           "Change of Control" means the occurrence of any of
                  the following events: (i) any Person or two or more Persons
                  acting in concert (other than Persons owning 30% or more of
                  the Voting Stock of the Borrower on the Closing Date) shall
                  have acquired beneficial ownership, directly or indirectly,
                  of, or shall have acquired by contract or otherwise, or shall
                  have entered into a contract or arrangement that, upon
                  consummation, will result in its or their acquisition of,
                  control over, Voting Stock of the Borrower (or other
                  securities convertible into such Voting Stock) representing
                  30% or more of the combined voting power of all Voting Stock
                  of the Borrower, (ii) any Person or two or more Persons
                  acting in concert (other than Persons owning 30% or more of
                  the Voting Stock of the Borrower on the Closing Date) has the
                  ability directly or indirectly, to elect a majority of the
                  board of directors of the Borrower, (iii) during any period
                  of up to 12 consecutive months, commencing on the Closing
                  Date, individuals who at the beginning of such 12-month
                  period were directors of the Borrower shall cease for any
                  reason (other than the death, disability or retirement of an
                  officer of the Borrower that is serving as a director at such
                  time so long as another officer of the Borrower replaces such
                  Person as a director) to constitute a majority of the board
                  of directors of the Borrower; provided, however to the extent
                  there exist vacancies on the Board of Directors as of the
                  Closing Date or if after the Closing Date, the existing Board
                  of Directors increases the number of directors on the Board
                  of Directors by an amount not more than three, the
                  individuals named to fill such vacancies, if selected by a
                  majority of directors sitting as of the Closing Date, shall
                  be deemed for purposes of this clause (iii) to have been
                  appointed prior to the Closing Date or (iv) the occurrence of
                  a "Change of Control" under the Senior Note Purchase
                  Agreements, the Senior Notes, or other documents evidencing
                  the Senior Notes.

                  (b)      The definition of "Permitted Acquisition" is hereby
         amended in its entirety to read as follows:

                           "Permitted Acquisition" means an Acquisition by the
                  Borrower or any Subsidiary of the Borrower for the fair
                  market value of the Capital Stock or Property acquired,
                  provided that (i) the Capital Stock or Property acquired in
                  such

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                  Acquisition relates to a line of business similar to the
                  business of the Borrower or any of its Subsidiaries, (ii) in
                  the case of an Acquisition of Capital Stock of another
                  Person, (A) the board of directors (or other comparable
                  governing body) of such other Person shall have duly approved
                  such Acquisition and (B) such Person shall become a
                  wholly-owned direct or indirect Subsidiary of the Borrower,
                  (iii) the representations and warranties made by the Credit
                  Parties in any Credit 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 and no Default or Event of Default exists
                  as of the date of such Acquisition (after giving effect
                  thereto) and (iv)(A) if the aggregate consideration for such
                  Acquisition, exceeds $25,000,000 but is less than
                  $35,000,000, the Borrower shall have delivered to the Agent a
                  Pro Forma Compliance Certificate demonstrating that, upon
                  giving effect to the Acquisition on a Pro Forma Basis, the
                  Borrower will be in compliance with all of the financial
                  covenants set forth in Section 7.11 or (B) if the aggregate
                  consideration (including cash and non-cash consideration and
                  any assumption of Indebtedness) for such Acquisition exceeds
                  $35,000,000 or if any such Acquisition would cause the
                  aggregate consideration for all Acquisitions in any fiscal
                  year to exceed $150,000,000, the Borrower shall have received
                  the approval of the Required Lenders, which approval shall be
                  given in the Required Lenders' sole discretion; provided,
                  however, that with respect to clause (B) above for fiscal
                  year 2000 only, if the aggregate consideration (including
                  cash and non-cash consideration and any assumption of
                  Indebtedness) for any Acquisition consummated after the
                  consummation of the United Medical Acquisition exceeds
                  $35,000,000 or if any such additional Acquisition would cause
                  the aggregate consideration for all Acquisitions consummated
                  after the consummation of the United Medical Acquisition to
                  exceed $50,000,000, the Borrower shall have received the
                  approval of the Required Lenders.

                  (c)      The definition of "Pledge Agreement" is hereby
         amended in its entirety to read as follows:

                           "Pledge Agreement" means (i) prior to the first date
                  on which the Borrower has issued any Senior Notes, the pledge
                  agreement dated as of the Closing Date in the form of Exhibit
                  1.1(a), as amended, modified, restated or supplemented from
                  time to time and (ii) thereafter, the "New Pledge Agreement"
                  described in Subpart 3.2(b) of Amendment No. 1, as amended,
                  modified, restated or supplemented from time to time.

                  (d)      The following new definitions are added to
         Section 1.1 of the Existing Credit Agreement in appropriate
         alphabetical order:

                           "Amendment No. 1" means that certain First Amendment
                  to Three-Year Credit Agreement dated as of June 20, 2000 by
                  and among the Borrower, the Guarantors, the Required Lenders
                  signatory hereto and the Agent.

                                       3
<PAGE>   4

                           "Intercreditor Agreement" means an intercreditor
                  agreement dated as of a date on or before July 31, 2000 and
                  in form and substance reasonably satisfactory to the Agent,
                  defining the relationship between the Agent and the Lenders,
                  on the one hand, and the Noteholders, on the other hand, with
                  respect to the relative rights and priorities with respect to
                  the Pledged Collateral and providing for the sharing of any
                  amounts recovered pursuant to the obligations of the
                  Guarantors under Section 4 and the guaranties of the Senior
                  Notes permitted under Section 8.1(j).

                           "Senior Note Purchase Agreements" means a collective
                  reference to note purchase agreements, dated as of a date on
                  or before July 31, 2000 and in form and substance reasonably
                  satisfactory to the Agent, among the Borrower and each of the
                  Senior Noteholders.

                           "Senior Noteholders" means a collective reference to
                  the holders from time to time of the Senior Notes and "Senior
                  Noteholder" means any one of them.

                           "Senior Notes" means a collective reference to
                  senior notes in an aggregate principal amount of up to
                  $150,000,000, and in form and substance reasonably
                  satisfactory to the Agent, to be issued by the Borrower on or
                  before July 31, 2000 pursuant to the Senior Note Purchase
                  Agreements, as such Senior Notes may be amended, modified,
                  restated or supplemented and in effect from time to time in
                  accordance with the terms thereof. The Senior Notes shall
                  rank pari passu with the Credit Party Obligations in priority
                  of payment and shall be secured by a lien on the Pledged
                  Collateral ranking pari passu with the lien of the Agent
                  therein.

                           "United Medical Acquisition" means the Acquisition
                  by the Borrower, on or prior to June 30, 2000, of
                  substantially all of the assets of United Medical, Inc., an
                  Arkansas corporation, for aggregate consideration of
                  approximately $123,000,000.

         SUBPART 2.2       Amendments to Section 8.1. Clauses (h) and (i) of
Section 8.1 of the Existing Credit Agreement are hereby amended in their
entireties to read as follows and the following new clauses (j) and (k) are
added to such Section immediately thereafter:

                  8.1      INDEBTEDNESS.

                  The Credit Parties will not permit any Consolidated Party to
         contract, create, incur, assume or permit to exist any Indebtedness,
         except:

                                ****************

                           (h)      Indebtedness owing by one Credit Party to
                  another Credit Party;

                                       4
<PAGE>   5

                           (i)      other Indebtedness hereafter incurred by
                  the Borrower not exceeding $10,000,000 in aggregate principal
                  amount at any time outstanding;

                           (j)      Indebtedness of the Borrower arising under
                  the Senior Note Purchase Agreements and the Senior Notes in
                  an aggregate principal amount of up to $150,000,000; provided
                  that (i) the final maturity date of such Senior Notes occurs
                  after the Maturity Date and (ii) such Senior Note Purchase
                  Agreements and Senior Notes do not contain terms and
                  conditions which, when taken as a whole, are more restrictive
                  that the terms and conditions of the Credit Agreement; and

                           (k)      Guaranty Obligations of any Guarantor with
                  respect to the Indebtedness of the Borrower permitted under
                  Section 8.1(j).

         SUBPART 2.3       Amendments to Section 8.11. Section 8.11 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

                  8.11     LIMITATION ON RESTRICTED ACTIONS.

                  The Credit Parties will not permit any Consolidated Party to,
         directly or indirectly, create or otherwise cause or suffer to exist
         or become effective any encumbrance or restriction on the ability of
         any such Person to (a) pay dividends or make any other distributions
         to any Credit Party on its Capital Stock or with respect to any other
         interest or participation in, or measured by, its profits, (b) pay any
         Indebtedness or other obligation owed to any Credit Party, (c) make
         loans or advances to any Credit Party, (d) sell, lease or transfer any
         of its properties or assets to any Credit Party, (e) grant a lien on
         its properties or assets whether now owned or hereafter acquired or
         (f) act as a Guarantor and pledge its assets pursuant to the Credit
         Documents or any renewals, refinancings, exchanges, refundings or
         extension thereof, except (in respect of any of the matters referred
         to in clauses (a)-(d) above) for such encumbrances or restrictions
         existing under or by reason of (i) this Credit Agreement and the other
         Credit Documents, (ii) the Senior Note Purchase Agreements and the
         Senior Notes or (iii) applicable law.

         SUBPART 2.4       Amendments to Section 8.14. Section 8.14 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

                  8.14     NO FURTHER NEGATIVE PLEDGES.

                  Except (a) pursuant to this Credit Agreement and the other
         Credit Documents, (b) pursuant to the Senior Note Purchase Agreements
         and the Senior Notes and (c) pursuant to any document or instrument
         governing Indebtedness incurred pursuant to Section 8.1(c), provided
         that any such restriction contained therein relates only to the asset
         or assets constructed or acquired in connection therewith, the Credit
         Parties will not permit any Consolidated Party to enter into, assume
         or become subject to any agreement prohibiting or otherwise
         restricting the creation or assumption of any Lien upon its properties
         or assets, whether now owned or hereafter acquired, or requiring the
         grant of any security for such obligation if security is given for
         some other obligation.

                                       5
<PAGE>   6

                                    PART III
                          CONSENT, AUTHORIZATION, ETC.

         SUBPART 3.1       United Medical Acquisition. The Required Lenders
hereby consent to the United Medical Acquisition.

         SUBPART 3.2       Execution of Intercreditor Agreement and Restated
Pledge Agreement; Indemnification of Collateral Agent.

                  (a)      The Required Lenders hereby authorize and direct the
         Agent, on behalf of the Lenders, at such time as any Senior Notes
         shall be issued by the Borrower, to execute and deliver (i) the
         Intercreditor Agreement and (ii) a pledge agreement (the "New Pledge
         Agreement") amending and restating the Pledge Agreement for the
         purpose of providing that the Pledged Collateral shall be held by Bank
         of America as a collateral agent for the ratable benefit of the
         Lenders and the Senior Noteholders (in such capacity, the "Collateral
         Agent").

                  (b)      The Credit Parties agree that, at such time as the
         Intercreditor Agreement and the New Pledge Agreement shall have become
         effective:

                           (i)      to pay to the Collateral Agent all of its
                  out-of-pocket expenses in connection with the preparation,
                  execution and delivery of the Intercreditor Agreement and the
                  New Pledge Agreement and the transactions contemplated
                  thereby, including but not limited to the reasonable charges
                  and disbursements of counsel;

                           (ii)     to pay to the Collateral Agent from time to
                  time reasonable compensation for all services rendered by it
                  under the Intercreditor Agreement and the New Pledge
                  Agreement;

                           (iii)    to reimburse the Collateral Agent upon its
                  request for all reasonable expenses, disbursements and
                  advances incurred or made by the Collateral Agent in
                  accordance with any provision of the Intercreditor Agreement
                  or the New Pledge Agreement (including the reasonable
                  compensation and the expenses and disbursements of its agents
                  and counsel); and

                           (iv)     to indemnify the Collateral Agent for, and
                  to hold it harmless against, any loss, liability or expense
                  incurred without gross negligence or willful misconduct on
                  the part of the Collateral Agent, arising out of or in
                  connection with the Intercreditor Agreement or the New Pledge
                  Agreement or any action taken or omitted by it thereunder or
                  in connection therewith, including, but not limited to, the
                  costs and expenses of defending itself against any claim or
                  liability in connection with the exercise or performance of
                  any of its powers or duties hereunder, and any loss,
                  liability, expense or claim arising out of its possession,
                  management, control, use or operation of the Pledged
                  Collateral.

                                       6
<PAGE>   7

                  (c)      At such time as the Intercreditor Agreement and the
         New Pledge Agreement shall have become effective, the Lenders shall be
         required to indemnify the Collateral Agent (to the extent not
         reimbursed by the Credit Parties), ratably with the Senior
         Noteholders, for any and all liabilities, obligations, losses,
         damages, penalties, actions, judgments, suits, costs, expenses or
         disbursements of any kind and nature whatsoever that may be imposed
         on, incurred by or asserted against the Collateral Agent, without
         gross negligence or willful misconduct on the part of the Collateral
         Agent, arising out of the actions of the Collateral Agent under the
         Intercreditor Agreement or the New Pledge Agreement or the
         transactions contemplated thereby or the enforcement of any of the
         terms thereof. The Lenders shall be subrogated to the rights of the
         Collateral Agent with respect to all amounts paid by it pursuant to
         this clause (b), and all such amounts shall constitute Credit Party
         Obligations.

                                    PART IV
                          CONDITIONS TO EFFECTIVENESS

         SUBPART 4.1       Amendment No. 1 Effective Date. This Amendment shall
be and become effective as of June 20, 2000 (the "Amendment No. 1 Effective
Date") when all of the conditions set forth in this Part 4 shall have been
satisfied, and thereafter this Amendment shall be known, and may be referred
to, as "Amendment No. 1."

         SUBPART 4.2       Execution of Counterparts of Amendment. The Agent
shall have received counterparts of this Amendment, which collectively shall
have been duly executed on behalf of each of the Borrower, the Guarantors and
the Lenders.

         SUBPART 4.3       Other Items. The Agent shall have received such
other documents, agreements or information which may be reasonably requested by
the Agent.

                                     PART V
                                 MISCELLANEOUS

         SUBPART 5.1       Representations and Warranties. The Borrower hereby
represents and warrants to the Agent and the Lenders that, after giving effect
to this Amendment, (a) no Default or Event of Default exists under the Credit
Agreement or any of the other Credit Documents and (b) the representations and
warranties set forth in Section 6 of the Existing Credit Agreement are, subject
to the limitations set forth therein, true and correct in all material respects
as of the date hereof (except for those which expressly relate to an earlier
date).

         SUBPART 5.2       Reaffirmation of Credit Party Obligations. Each
Credit Party hereby ratifies the Credit Agreement and acknowledges and
reaffirms (a) that it is bound by all terms of the Credit Agreement applicable
to it and (b) that it is responsible for the observance and full performance of
its respective Credit Party Obligations.

                                       7
<PAGE>   8

         SUBPART 5.3       Cross-References. References in this Amendment to
any Part or Subpart are, unless otherwise specified, to such Part or Subpart of
this Amendment.

         SUBPART 5.4       Instrument Pursuant to Existing Credit Agreement.
This Amendment is a Credit Document executed pursuant to the Existing Credit
Agreement and shall (unless otherwise expressly indicated therein) be
construed, administered and applied in accordance with the terms and provisions
of the Existing Credit Agreement.

         SUBPART 5.5       References in Other Credit Documents. At such time
as this Amendment No. 1 shall become effective pursuant to the terms of Subpart
4.1, all references in the Credit Documents to the "Credit Agreement" shall be
deemed to refer to the Credit Agreement as amended by this Amendment No. 1.

         SUBPART 5.6       Counterparts/Telecopy. This Amendment may be
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement. Delivery of executed counterparts of the Amendment by
telecopy shall be effective as an original and shall constitute a
representation that an original shall be delivered.

         SUBPART 5.7       Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE
A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
NEW YORK.

         SUBPART 5.8       Successors and Assigns. This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

         SUBPART 5.9       General. Except as amended hereby, the Existing
Credit Agreement and all other Credit Documents shall continue in full force
and effect.

                                       8
<PAGE>   9

         IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Amendment to be duly executed and delivered as of the date
first above written.

BORROWER:                           LINCARE HOLDINGS INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

GUARANTORS:                         LINCARE INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    LINCARE PROCUREMENT INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    LINCARE ASSET MANAGEMENT LP,
                                    a Nevada limited partnership
                                             BY: LINCARE HOLDINGS INC., A
                                             DELAWARE CORPORATION, ITS GENERAL
                                             PARTNER

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    LINCARE OF NEW YORK INC.,
                                    a New York corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

<PAGE>   10

                                    LINCARE PHARMACY SERVICES INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    LINCARE LICENSING INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    CONVACARE SERVICES INC.,
                                    an Indiana corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    LINCARE TRAVEL INC.,
                                    a Delaware corporation

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

<PAGE>   11

LENDERS:                            BANK OF AMERICA, N. A.,
                                    individually in its capacity as a
                                    Lender and in its capacity as Agent

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    BANKATLANTIC

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    BANK LEUMI LE - ISRAEL B.M.,
                                    MIAMI AGENCY

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    COMERICA BANK

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    BANKERS TRUST COMPANY

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    FLEET NATIONAL BANK

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

<PAGE>   12

                                    THE FUJI BANK, LIMITED

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    THE INDUSTRIAL BANK OF JAPAN
                                    LIMITED

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    MICHIGAN NATIONAL BANK

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    SCOTIABANC INC.

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    CREDIT LYONNAIS NEW YORK BRANCH

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

                                    U.S. BANK NATIONAL ASSOCIATION

                                    By:
                                          -------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                          -------------------------------------

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