Document:

EXHIBIT
      10.2

     

    

    NEITHER
      THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE
      HAVE
      BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
      ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT
      UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH
      RULE 144 UNDER SUCH ACT OR THE ISSUER RECEIVES AN OPINION OF COUNSEL FOR THE
      HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE ISSUER, STATING THAT
      SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
      AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACTS.

     

    DEBT
      RESOLVE, INC.

    

    WARRANT
      TO PURCHASE COMMON STOCK

    

    Warrant
      No. __Dated:
      __________, 2007

    

    Debt
      Resolve, Inc., a Delaware corporation (the “Company”),
      hereby certifies that, for value received, ________________[Name of Holder]
      or
      its registered assigns (the “Holder”),
      is
      entitled to purchase from the Company up to a total of _____ shares of common
      stock, par value $.001 per share (the “Common
      Stock”),
      of
      the Company (each such share, a “Warrant
      Share”
and
      all
      such shares issuable under the warrants, the “Warrant
      Shares”)
      at an
      exercise price equal to $2.00 per share (as adjusted from time to time as
      provided in Section 9, the “Exercise
      Price”),
      at
      any time and from the date hereof and through and including the date that is
      five (5) years from the date of issuance hereof (the “Expiration
      Date”),
      and
      subject to the following terms and conditions. This Warrant (“Warrant”)
      is one
      of a series of similar warrants issued pursuant to that certain Securities
      Purchase Agreement, dated as of August 22, 2007, by and among the Company and
      the Investors identified therein (the “Purchase
      Agreement”).
      All
      such warrants are referred to herein, collectively, as the “Warrants”
and
      the
      holders thereof along with the Holder named herein, the “Holders.”

     

    1. Definitions.
      In
      addition to the terms defined elsewhere in this Warrant, capitalized terms
      that
      are not otherwise defined herein have the meanings given to such terms in the
      Purchase Agreement.

     

    2. Registration
      of Warrant.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    3. Registration
      of Transfers.
      The
      Company shall register the transfer of any portion of this Warrant in the
      Warrant Register, upon surrender of this Warrant, with the Form of Assignment
      attached hereto duly completed and signed, to the Transfer Agent or to the
      Company at its address specified herein. Upon any such registration or transfer,
      a new warrant to purchase Common Stock, in substantially the form of this
      Warrant (any such new warrant, a “New
      Warrant”),
      evidencing the portion of this Warrant so transferred shall be issued to the
      transferee and a New Warrant evidencing the remaining portion of this Warrant
      not so transferred, if any, shall be issued to the transferring Holder. The
      acceptance of the New Warrant by the transferee thereof shall be deemed the
      acceptance by such transferee of all of the rights and obligations of a holder
      of a Warrant.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4. Exercise
      and Duration of Warrants.

     

    (a) This
      Warrant shall be exercisable by the registered Holder at any time and from
      time
      to time on or after the date hereof to and including the Expiration Date. At
      6:30 p.m. (New York City time) on the Expiration Date, the portion of this
      Warrant not exercised prior thereto shall be and become void and of no
      value.

     

    (b) A
      Holder
      may exercise this Warrant by delivering to the Company (i) an exercise notice,
      in the form attached hereto (the “Exercise
      Notice”),
      appropriately completed and duly signed, and (ii) payment of the Exercise Price
      for the number of Warrant Shares as to which this Warrant is being exercised,
      and the date such items are delivered to the Company (as determined in
      accordance with the notice provisions hereof) is an “Exercise
      Date.”
The
      Holder shall not be required to deliver the original Warrant in order to effect
      an exercise hereunder. Execution and delivery of the Exercise Notice shall
      have
      the same effect as cancellation of the original Warrant and issuance of a New
      Warrant evidencing the right to purchase the remaining number of Warrant
      Shares.

     

    (c) Exercise
      Disputes.
      In the
      case of any dispute with respect to the number of shares to be issued upon
      exercise of this Warrant, the Company shall promptly issue such number of shares
      of Common Stock that is not disputed and shall submit the disputed
      determinations or arithmetic calculations to the Holder via facsimile within
      two
      (2) Business Days of receipt of the Holder’s election to purchase Warrant
      Shares. If the Holder and the Company are unable to agree as to the
      determination of the Purchase Price within two (2) Business Days of such
      disputed determination or arithmetic calculation being submitted to the Holder,
      then the Company shall in accordance with this Section 4, submit via facsimile
      the disputed determination to an independent reputable accounting firm of
      national standing, selected jointly by the Company and the Holder. The Company
      shall cause such accounting firm to perform the determinations or calculations
      and notify the Company and the Holder of the results within forty-eight (48)
      hours from the time it receives the disputed determinations of calculations.
      Such accounting firm’s determination shall be binding upon all parties absent
      manifest error. The Company shall then on the next Business Day issue
      certificate(s) representing the appropriate number of Warrant Shares of Common
      Stock in accordance with such accounting firm’s determination and this Section.
      The prevailing party shall be entitled to reimbursement of all fees and expenses
      of such determination and calculation.

     

    5. Delivery
      of Warrant Shares.
      

     

    (a) Upon
      exercise of this Warrant, the Company shall promptly (but in no event later
      than
      three Trading Days after the Exercise Date) issue or cause to be issued and
      cause to be delivered to or upon the written order of the Holder and in such
      name or names as the Holder may designate, a certificate for the Warrant Shares
      issuable upon such exercise, free of restrictive legends unless a registration
      statement covering the resale of the Warrant Shares and naming the Holder as
      a
      selling stockholder thereunder is not then effective and the Warrant Shares
      are
      not freely transferable without volume restrictions pursuant to Rule 144 under
      the Securities Act of 1933, as amended. The Holder, or any Person so designated
      by the Holder to receive Warrant Shares, shall be deemed to have become holder
      of record of such Warrant Shares as of the Exercise Date. The Company shall,
      upon request of the Holder, use its best efforts to deliver Warrant Shares
      hereunder electronically through the Depository Trust Corporation or another
      established clearing corporation performing similar functions.

     

    (b) This
      Warrant is exercisable, either in its entirety or, from time to time, for a
      portion of the number of Warrant Shares. Upon surrender of this Warrant
      following one or more partial exercises, the Company shall issue or cause to
      be
      issued, at its expense, a New Warrant evidencing the right to purchase the
      remaining number of Warrant Shares.

     

    
      
         

      

      
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    (c) In
      addition to any other rights available to a Holder, if the Company fails to
      deliver to the Holder a certificate representing Warrant Shares by the third
      Trading Day after the date on which delivery of such certificate is required
      by
      this Warrant, and if after such third Trading Day the Holder purchases (in
      an
      open market transaction or otherwise) shares of Common Stock to deliver in
      satisfaction of a sale by the Holder of the Warrant Shares that the Holder
      anticipated receiving from the Company (a “Buy-In”),
      then
      the Company shall, within three Trading Days after the Holder’s request and in
      the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to
      the Holder’s total purchase price (including brokerage commissions, if any) for
      the shares of Common Stock so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such Common Stock) shall terminate, or (ii) promptly honor its obligation to
      deliver to the Holder a certificate or certificates representing such Common
      Stock and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of shares of Common Stock,
      times (B) the Closing Price on the date of the event giving rise to the
      Company’s obligation to deliver such certificate.

     

    (d) The
      Company’s obligations to issue and deliver Warrant Shares in accordance with the
      terms hereof are absolute and unconditional, irrespective of any action or
      inaction by the Holder to enforce the same, any waiver or consent with respect
      to any provision hereof, the recovery of any judgment against any Person or
      any
      action to enforce the same, or any setoff, counterclaim, recoupment, limitation
      or termination, or any breach or alleged breach by the Holder or any other
      Person of any obligation to the Company or any violation or alleged violation
      of
      law by the Holder or any other Person, and irrespective of any other
      circumstance which might otherwise limit such obligation of the Company to
      the
      Holder in connection with the issuance of Warrant Shares. Nothing herein shall
      limit a Holder’s right to pursue any other remedies available to it hereunder,
      at law or in equity including, without limitation, a decree of specific
      performance and/or injunctive relief with respect to the Company’s failure to
      timely deliver certificates representing shares of Common Stock upon exercise
      of
      the Warrant as required pursuant to the terms hereof.

     

    6. Charges,
      Taxes and Expenses.
      Issuance and delivery of certificates for shares of Common Stock upon exercise
      of this Warrant shall be made without charge to the Holder for any issue or
      transfer tax, withholding tax, transfer agent fee or other incidental tax or
      expense in respect of the issuance of such certificates, all of which taxes
      and
      expenses shall be paid by the Company; provided,
      however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer involved in the registration of any certificates for Warrant
      Shares or Warrants in a name other than that of the Holder. The Holder shall
      be
      responsible for all other tax liability that may arise as a result of holding
      or
      transferring this Warrant or receiving Warrant Shares upon exercise
      hereof.

     

    7. Replacement
      of Warrant.
      If this
      Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or
      cause to be issued in exchange and substitution for and upon cancellation
      hereof, or in lieu of and substitution for this Warrant, a New Warrant, but
      only
      upon receipt of evidence reasonably satisfactory to the Company of such loss,
      theft or destruction and customary and reasonable bond or indemnity, if
      requested. Applicants for a New Warrant under such circumstances shall also
      comply with such other reasonable regulations and procedures and pay such other
      reasonable third-party costs as the Company may prescribe.

     

    8. Reservation
      of Warrant Shares.
      The
      Company covenants that it will at all times reserve and keep available out
      of
      the aggregate of its authorized but unissued and otherwise unreserved Common
      Stock, solely for the purpose of enabling it to issue Warrant Shares upon
      exercise of this Warrant as herein provided, 100% of the number of Warrant
      Shares which are then issuable and deliverable upon the exercise of this entire
      Warrant, free from preemptive rights or any other contingent purchase rights
      of
      persons other than the Holder (after giving effect to the adjustments and
      restrictions of Section 9, if any). The Company covenants that all Warrant
      Shares so issuable and deliverable shall, upon issuance and the payment of
      the
      applicable Exercise Price in accordance with the terms hereof, be duly and
      validly authorized, issued and fully paid and nonassessable. The Company will
      take all such action as may be necessary to assure that such shares of Common
      Stock may be issued as provided herein without violation of any applicable
      law
      or regulation, or of any requirements of any securities exchange or automated
      quotation system upon which the Common Stock may be listed.

     

    
      
         

      

      
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    9. Certain
      Adjustments.
      The
      Exercise Price and number of Warrant Shares issuable upon exercise of this
      Warrant are subject to adjustment from time to time as set forth in this Section
      9.

     

    (a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding, (i) pays a stock
      dividend on its Common Stock or otherwise makes a distribution on any class
      of
      capital stock that is payable in shares of Common Stock, (ii) subdivides
      outstanding shares of Common Stock into a larger number of shares, or (iii)
      combines outstanding shares of Common Stock into a smaller number of shares,
      then in each such case the Exercise Price shall be multiplied by a fraction
      of
      which the numerator shall be the number of shares of Common Stock outstanding
      immediately before such event and of which the denominator shall be the number
      of shares of Common Stock outstanding immediately after such event. Any
      adjustment made pursuant to clause (i) of this paragraph shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution, and any adjustment pursuant to clause
      (ii) or (iii) of this paragraph shall become effective immediately after the
      effective date of such subdivision or combination.

     

    (b) Distributions
      Made Prior to Exercise.
      If the
      Company, at any time while this Warrant is outstanding, distributes to holders
      of Common Stock (i) evidences of its indebtedness, (ii) any security (other
      than
      a distribution of Common Stock covered by Section 9(a)), (iii) rights or
      warrants to subscribe for or purchase any security, or (iv) any other asset
      (in
      each case, a “Distribution”),
      then
      in each such case any Exercise Price in effect immediately prior to the close
      of
      business on the record date fixed for the determination of holders of Common
      Stock entitled to receive the Distribution shall be reduced, effective as of
      the
      close of business on such record date, to a price determined by multiplying
      such
      Exercise Price by a fraction of which (i) the numerator shall be the Weighted
      Average Price1of
      the
      Common Stock on the Trading Day immediately preceding such record date minus
      the
      value of the Distribution (as determined in good faith by the Company’s Board of
      Directors) applicable to one share of Common Stock, and (ii) the denominator
      shall be the Weighted Average Price of the Common Stock on the Trading Day
      immediately preceding such record date.

     

    (c) Notwithstanding
      the provisions set forth in Section 9(b) above, if the Company, at any time
      while this Warrant is outstanding, makes a Distribution to the holders of Common
      Stock, then in each such case the Holder shall have the option to receive such
      Distribution which would have been made to the Holder had such Holder been
      the
      holder of such Warrant Shares on the record date for the determination of
      stockholders entitled to such Distribution; provided,
      however,
      if the
      Holder elects to receive such Distribution, it will not be entitled to receive
      the adjustment to the Exercise Price specified in clause (b) above.

     

    1
      “Weighted
      Average Price” means, for any security as of any date, the dollar
      volume-weighted average price for such security on the American Stock Exchange
      during the period beginning at 9:30:01 a.m., New York Time (or such other time
      as the American Stock Exchange publicly announces is the official open of
      trading), and ending at 4:00:00 p.m., New York Time (or such other time as
      the
      American Stock Exchange publicly announces is the official close of trading)
      as
      reported by Bloomberg (means Bloomberg Financial Markets) through its “Volume at
      Price” functions, or, if the foregoing does not apply, the dollar
      volume-weighted average price of such security in the over-the-counter market
      on
      the OTC Bulletin Board for such security during the period beginning at 9:30:01
      a.m., New York Time (or such other time as such Principal Market publicly
      announces is the official open of trading), and ending at 4:00:00 p.m., New
      York
      Time (or such other time as such market publicly announces is the official
      close
      of trading) as reported by Bloomberg, if no dollar volume-weighted average
      price
      is reported for such security by Bloomberg for such hours, the average of the
      highest closing bid price and the lowest closing ask price of any of the market
      makers for such security as reported in the “pink sheets” by Pink Sheets LLC
      (formerly the National Quotation Bureau, Inc.). If the Weighted Average Price
      cannot be calculated for a security on a particular date on any of the foregoing
      bases, the Weighted Average Price of such security on such date shall be the
      fair market value as mutually determined by the Company in good faith. All
      such
      determinations shall be appropriately adjusted for any share dividend, share
      split, share combination or other similar transaction during the applicable
      calculation period.

     

    
      
         

      

      
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    (d) Fundamental
      Transactions.
      (1) If,
      at any time while this Warrant is outstanding, (i) the Company effects any
      merger or consolidation of the Company with or into (whether or not the Company
      is the surviving corporation) another Person, (ii) the Company effects any
      sale,
      assignment, transfer, conveyance or other disposition of all or substantially
      all of its assets in one or a series of related transactions; provided,
      however,
      that
      for avoidance of doubt, the granting of a lien on all or substantially all
      of
      the Company’s assets as collateral shall not be deemed a Fundamental Transaction
      hereunder, (iii) allow another Person to make a purchase, tender or exchange
      offer that is accepted by the holders of more than the 50% of either the
      outstanding shares of Common Stock (not including any shares of Common Stock
      held by the Person or Persons making or party to, or associated or affiliated
      with the Persons making or party to, such purchase, tender or exchange offer),
      (iv) consummate a stock purchase agreement or other business combination
      (including, without limitation, a reorganization, recapitalization, spin-off
      or
      scheme of arrangement) with another Person whereby such other Person acquires
      more than the 50% of the outstanding shares of Common Stock (not including
      any
      shares of Common Stock held by the other Person or other Persons making or
      party
      to, or associated or affiliated with the other Persons making or party to,
      such
      stock purchase agreement or other business combination), or (v) the Company
      effects any reclassification of the Common Stock or any compulsory share
      exchange pursuant to which the Common Stock is effectively converted into or
      exchanged for other securities, cash or property (other than as a result of
      a
      subdivision or combination of shares of Common Stock covered by Section 9(a)
      above) (in any such case, a “Fundamental
      Transaction”),
      then
      the Holder shall have the right thereafter to receive, upon exercise of this
      Warrant, the same amount and kind of securities, cash or property as it would
      have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of the number of Warrant Shares then issuable upon exercise in full
      of this Warrant (the “Alternate
      Consideration”).
      The
      aggregate Exercise Price for this Warrant will not be affected by any such
      Fundamental Transaction, but the Company shall apportion such aggregate Exercise
      Price among the Alternate Consideration in a reasonable manner reflecting the
      relative value of any different components of the Alternate Consideration.
      If
      holders of Common Stock are given any choice as to the securities, cash or
      property to be received in a Fundamental Transaction, then the Holder shall
      be
      given the same choice as to the Alternate Consideration it receives upon any
      exercise of this Warrant following such Fundamental Transaction. At the Holder’s
      request, any successor to the Company or surviving entity in such Fundamental
      Transaction shall issue to the Holder a new warrant consistent with the
      foregoing provisions and evidencing the Holder’s right to purchase the Alternate
      Consideration for the aggregate Exercise Price upon exercise thereof. The terms
      of any agreement pursuant to which a Fundamental Transaction is effected shall
      include terms requiring any such successor or surviving entity to comply with
      the provisions of this paragraph (d) and insuring that the Warrant (or any
      such
      replacement security) will be similarly adjusted upon any subsequent transaction
      analogous to a Fundamental Transaction. 

     

    (2) Notwithstanding
      the foregoing and the provisions of Section 4(b) above, in the event of a
      Fundamental Transaction in which (i) the surviving entity in the Fundamental
      Transaction is not a publicly traded company and (ii) the consideration to
      be
      delivered to the holders of Common Stock upon the occurrence of such Fundamental
      Transaction does not consist solely of publicly traded securities, if the Holder
      has not exercised the Warrant in full prior to the consummation of such
      Fundamental Transaction, then
      the
      Holder shall have the right to require any successor to the Company or surviving
      entity in such Fundamental Transaction to purchase this Warrant from the Holder
      by paying to the Holder, simultaneously with the consummation of such
      Fundamental Transaction and
      in lieu
      of the warrant referred to in Section 9(d)(1), cash in an amount equal to the
      value of the remaining unexercised portion of this Warrant on the date of such
      consummation, which value shall be determined by use of the Black and Scholes
      Option Pricing Model reflecting (i) a risk-free interest rate corresponding
      to
      the U.S. Treasury rate for a period equal to the remaining term of this Warrant
      as of such date of request and (ii) an expected volatility equal to the lesser
      of 60% and the 100 day volatility obtained from the HVT function on
      Bloomberg.

     

    
      
         

      

      
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    (e) Number
      of Warrant Shares.
      Simultaneously with any adjustment to the Exercise Price pursuant to paragraph
      (a) of this Section 9, the number of Warrant Shares that may be purchased upon
      exercise of this Warrant shall be increased or decreased proportionately, as
      applicable, so that after such adjustment the aggregate Exercise Price payable
      hereunder for the increased or decreased, as applicable, number of Warrant
      Shares shall be the same as the aggregate Exercise Price in effect immediately
      prior to such adjustment.

     

    (f) Calculations.
      All
      calculations under this Section 9 shall be made to the nearest cent or the
      nearest 1/100th of a share, as applicable. The number of shares of Common Stock
      outstanding at any given time shall not include shares owned or held by or
      for
      the account of the Company, and the disposition of any such shares shall be
      considered an issue or sale of Common Stock.

     

    (g) Notice
      of Adjustments.
      Upon
      the occurrence of each adjustment pursuant to this Section 9, the Company at
      its
      expense will promptly compute such adjustment in accordance with the terms
      of
      this Warrant and prepare a certificate setting forth such adjustment, including
      a statement of the adjusted Exercise Price and adjusted number or type of
      Warrant Shares or other securities issuable upon exercise of this Warrant (as
      applicable), describing the transactions giving rise to such adjustments and
      showing in detail the facts upon which such adjustment is based. Upon written
      request, the Company will promptly deliver a copy of each such certificate
      to
      the Holder and to the Company’s Transfer Agent.

     

    (h) Notice
      of Corporate Events.
      If the
      Company (i) declares a dividend or any other distribution of cash, securities
      or
      other property in respect of its Common Stock, including without limitation
      any
      granting of rights or warrants to subscribe for or purchase any capital stock
      of
      the Company or any Subsidiary, (ii) authorizes or approves, enters into any
      agreement contemplating or solicits stockholder approval for any Fundamental
      Transaction or (iii) authorizes the voluntary dissolution, liquidation or
      winding up of the affairs of the Company, then the Company shall deliver to
      the
      Holder a notice describing the material terms and conditions of such
      transaction, at least ten calendar days prior to the applicable record or
      effective date on which a Person would need to hold Common Stock in order to
      participate in or vote with respect to such transaction, and the Company will
      take all steps reasonably necessary in order to insure that the Holder is given
      the practical opportunity to exercise this Warrant prior to such time so as
      to
      participate in or vote with respect to such transaction; provided,
      however,
      that
      the failure to deliver such notice or any defect therein shall not affect the
      validity of the corporate action required to be described in such notice.

     

    10. Payment
      of Exercise Price.
      The
      Holder shall pay the Exercise Price in immediately available funds.

     

    11. Limitation
      on Exercise.2 

     

    2
      This provision is
      available for Investors, and the percentage may be modified at the Investor’s
      request.

     

    
      
         

      

      
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    (a) Notwithstanding
      anything to the contrary contained herein, the number of shares of Common Stock
      that may be acquired by the Holder upon any exercise of this Warrant (or
      otherwise in respect hereof) shall be limited to the extent necessary to insure
      that, following such exercise (or other issuance), the total number of shares
      of
      Common Stock then beneficially owned by such Holder and its Affiliates and
      any
      other Persons whose beneficial ownership of Common Stock would be aggregated
      with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not
      exceed 9.999% (the “Maximum
      Percentage”)
      of the
      total number of issued and outstanding shares of Common Stock (including for
      such purpose the shares of Common Stock issuable upon such exercise). For such
      purposes, beneficial ownership shall be determined in accordance with Section
      13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
      The Company’s obligation to issue shares of Common Stock in excess of the
      limitation referred to in this Section shall be suspended (and shall not
      terminate or expire notwithstanding any contrary provisions hereof) until such
      time, if any, as such shares of Common Stock may be issued in compliance with
      such limitation, but in no event later than the Expiration Date. By written
      notice to the Company, the Holder may waive the provisions of this Section
      or
      increase or decrease the Maximum Percentage to any other percentage specified
      in
      such notice, but (i) any such waiver or increase will not be effective until
      the
      61st day after such notice is delivered to the Company, and (ii) any such waiver
      or increase or decrease will apply only to the Holder and not to any other
      holder of Warrants.

     

    12. Fractional
      Shares.
      The
      Company shall not be required to issue or cause to be issued fractional Warrant
      Shares on the exercise of this Warrant. If any fraction of a Warrant Share
      would, except for the provisions of this Section, be issuable upon exercise
      of
      this Warrant, the number of Warrant Shares to be issued will be rounded up
      to
      the nearest whole share.

     

    13. Notices.
      Any and
      all notices or other communications or deliveries hereunder (including without
      limitation any Exercise Notice) shall be in writing and shall be deemed given
      and effective on the earliest of (i) the date of transmission, if such notice
      or
      communication is delivered via facsimile at the facsimile number specified
      in
      the Purchase Agreement prior to 6:30 p.m. (New York City time) on a Trading
      Day,
      (ii) the next Trading Day after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number specified
      in
      the Purchase Agreement on a day that is not a Trading Day or later than 6:30
      p.m. (New York City time) on any Trading Day, (iii) the Trading Day following
      the date of mailing, if sent by nationally recognized overnight courier service,
      or (iv) upon actual receipt by the party to whom such notice is required to
      be
      given. The address for such notices or communications shall be as set forth
      in
      the Purchase Agreement.

     

    14. Warrant
      Agent.
      The
      Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to
      the Holder, the Company may appoint a new warrant agent. Any corporation into
      which the Company or any new warrant agent may be merged or any corporation
      resulting from any consolidation to which the Company or any new warrant agent
      shall be a party or any corporation to which the Company or any new warrant
      agent transfers substantially all of its corporate trust or stockholders
      services business shall be a successor warrant agent under this Warrant without
      any further act. Any such successor warrant agent shall promptly cause notice
      of
      its succession as warrant agent to be mailed (by first class mail, postage
      prepaid) to the Holder at the Holder’s last address as shown on the Warrant
      Register.

     

    15. Most
      Favored Nations and Registration Rights Provisions.
      The
      Exercise Price of this Warrant shall be entitled to most favored nations price
      adjustment, and the Warrant Shares shall be entitled to registration rights,
      each as set forth in the Purchase Agreement pursuant to which this Warrant
      was
      issued.

     

    16. Miscellaneous.

     

    (a) Subject
      to the restrictions on transfer set forth on the first page hereof, this Warrant
      may be assigned by the Holder. This Warrant may not be assigned by the Company,
      except to a successor in the event of a Fundamental Transaction. This Warrant
      shall be binding on and inure to the benefit of the parties hereto and their
      respective successors and assigns. Subject to the preceding sentence, nothing
      in
      this Warrant shall be construed to give to any Person other than the Company
      and
      the Holder any legal or equitable right, remedy or cause of action under this
      Warrant. 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) The
      Company will not, by amendment of its governing documents or through any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities or any other voluntary action, seek to call or redeem this
      Warrant or avoid or seek to avoid the observance or performance of any of the
      terms of this Warrant, but will at all times in good faith assist in the
      carrying out of all such terms and in the taking of all such action as may
      be
      necessary or appropriate in order to protect the rights of the Holder against
      dilution or other impairment. Without limiting the generality of the foregoing,
      the Company (i) will not increase the par value of any Warrant Shares above
      the
      amount payable therefor on such exercise, (ii) will take all such action as
      may
      be reasonably necessary or appropriate in order that the Company may validly
      and
      legally issue fully paid and nonassessable Warrant Shares, free from all taxes,
      liens, security interests, encumbrances, preemptive or similar rights and
      charges of stockholders (other than those imposed by the Investors), on the
      exercise of the Warrant, and (iii) will not close its stockholder books or
      records in any manner which interferes with the timely exercise of this
      Warrant.

     

    (c) Remedies;
      Specific Performance.
      The
      Company acknowledges and agrees that there would be no adequate remedy at law
      to
      the Holder of this Warrant in the event of any default or threatened default
      by
      the Company in the performance of or compliance with any of the terms of this
      Warrant and accordingly, the Company agrees that, in addition to any other
      remedy to which the Holder may be entitled at law or in equity, the Holder
      shall
      be entitled to seek to compel specific performance of the obligations of the
      Company under this Warrant, without the posting of any bond, in accordance
      with
      the terms and conditions of this Warrant in any court of the United States
      or
      any State thereof having jurisdiction, and if any action should be brought
      in
      equity to enforce any of the provisions of this Warrant, the Company shall
      not
      raise the defense that there is an adequate remedy at law. Except as otherwise
      provided by law, a delay or omission by the Holder hereof in exercising any
      right or remedy accruing upon any such breach shall not impair the right or
      remedy or constitute a waiver of or acquiescence in any such breach. No remedy
      shall be exclusive of any other remedy. All available remedies shall be
      cumulative.

     

    (d) Amendments
      and Waivers.
      The
      Company may, without the consent of the Holders, by supplemental agreement
      or
      otherwise, (i) make any changes or corrections in this Agreement that are
      required to cure any ambiguity or to correct or supplement any provision herein
      which may be defective or inconsistent with any other provision herein or (ii)
      add to the covenants and agreements of the Company for the benefit of the
      Holders (including, without limitation, reduce the Exercise Price or extend
      the
      Expiration Date), or surrender any rights or power reserved to or conferred
      upon
      the Company in this Agreement; provided that, in the case of (i) or (ii), such
      changes or corrections shall not adversely affect the interests of Holders
      of
      then outstanding Warrants in any material respect. This Warrant may also be
      amended or waived with the consent of the Company and the Holder. Further,
      the
      Company may, with the consent, in writing or at a meeting, of the Holders (the
      “Required
      Holders”)
      of the
      then outstanding Warrants exercisable for two-thirds (2/3) or greater of the
      Common Stock eligible under such Warrants, amend in any way, by supplemental
      agreement or otherwise, this Warrant and/or all of the outstanding Warrants;
      provided,
      however,
      that
      (i) no such amendment by its express terms shall adversely affect any Holder
      differently than it affects all other Holders, unless such Holder consents
      thereto, and (ii) no such amendment concerning the number of Warrant Shares
      or
      Exercise Price shall be made unless any Holder who will be affected by such
      amendment consents thereto. If a new warrant agent is appointed by the Company,
      it shall at the request of the Company, and without need of independent inquiry
      as to whether such supplemental agreement is permitted by the terms of this
      Section 16(d), join with the Company in the execution and delivery of any such
      supplemental agreements, but shall not be required to join in such execution
      and
      delivery for such supplemental agreement to become effective. 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (e) GOVERNING
      LAW; VENUE; WAIVER OF JURY TRIAL.
      THE
      CORPORATE LAWS OF THE STATE OF NEW YORK SHALL GOVERN ALL ISSUES CONCERNING
      THE
      RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL QUESTIONS CONCERNING
      THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK. THE COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT
      TO
      THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY
      OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT
      BY
      THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY
      TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN, AND HEREBY IRREVOCABLY
      WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY
      THE
      COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
      JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS
      IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS
      AND
      CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
      MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY
      (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES
      TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
      AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
      SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER
      PERMITTED BY LAW. THE COMPANY AND INVESTORS HEREBY WAIVE ALL RIGHTS TO A TRIAL
      BY JURY.

     

    (f) The
      headings herein are for convenience only, do not constitute a part of this
      Warrant and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    (g) In
      case
      any one or more of the provisions of this Warrant shall be invalid or
      unenforceable in any respect, the validity and enforceability of the remaining
      terms and provisions of this Warrant shall not in any way be affected or
      impaired thereby and the parties will attempt in good faith to agree upon a
      valid and enforceable provision which shall be a commercially reasonable
      substitute therefor, and upon so agreeing, shall incorporate such substitute
      provision in this Warrant.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK,

    SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      its
      authorized officer as of the date first indicated above.

     

    
      	 
	
              DEBT
                RESOLVE, INC.

            
	 
	 
	
              By: 

            
	
              Name: 

            
	
              Title: 

            

    

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    FORM
      OF EXERCISE NOTICE

    

    (To
      be
      executed by the Holder to exercise the right to purchase shares of Common Stock
      under the foregoing Warrant)

     

    To:
      DEBT
      RESOLVE, INC.

     

    The
      undersigned is the Holder of Warrant No. _______ (the “Warrant”) issued by Debt
      Resolve, Inc., a Delaware corporation (the “Company”). Capitalized terms used
      herein and not otherwise defined have the respective meanings set forth in
      the
      Warrant.

     

    (a) The
      Warrant is currently exercisable to purchase a total of ______________ Warrant
      Shares.

     

    (b)The
      undersigned Holder hereby exercises its right to purchase _________________
      Warrant Shares pursuant to the Warrant.

     

    (c)The
      holder shall pay the sum of $____________ to the Company in accordance with
      the
      terms of the Warrant.

     

    (d)Pursuant
      to this exercise, the Company shall deliver to the holder _______________
      Warrant Shares in accordance with the terms of the Warrant.

     

    (e)Following
      this exercise, the Warrant shall be exercisable to purchase a total of
      ______________ Warrant Shares.

     

    (f)Notwithstanding
      anything to the contrary contained herein, this Exercise Notice shall constitute
      a representation by the Holder that, after giving effect to the exercise
      provided for in this Exercise Notice, the Holder (together with its affiliates)
      will not have beneficial ownership (together with the beneficial ownership
      of
      such Person’s affiliates) of a number of shares of Common Stock which exceeds
      the Maximum Percentage of the total outstanding shares of Common Stock as
      determined pursuant to the provisions of Section 11(a) of the
      Warrant.

     

    
      	
              Dated:    

            	 	
              Name
                of Holder:

            
	 	 	 
	 	 	
              (Print)
                

            
	 	 	 
	 	 	
              By:

            
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Warrant)

            

    

    

    
      
        
           

        

         

      

      
        11

        
          

        

      

      
         

        
          

        

      

    

    FORM
      OF ASSIGNMENT

    

    [To
      be
      completed and signed only upon transfer of Warrant]

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      ________________________________ the right represented by the within Warrant
      to
      purchase ____________ shares of Common Stock of Debt Resolve, Inc., to which
      the
      within Warrant relates and appoints ________________ attorney to transfer said
      right on the books of Debt Resolve, Inc. with full power of substitution in
      the
      premises.

     

    
      	 	 
	 	 
	
              Dated:  

            	 
	 	 
	 	 
	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Warrant)

            
	 	 
	 	 
	 	
              Address
                of Transferee

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	
              In
                the presence of:Exhibit 10.1

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

                                CREDIT AGREEMENT

                           Dated as of August 27, 2007

                                      among

                          U.S. PHYSICAL THERAPY, INC.,
                                as the Borrower,

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

                                       and

                         The Other Lenders Party Hereto

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

<PAGE>

                                                            TABLE OF CONTENTS

<TABLE>
<CAPTION>

Section                                                                                                        Page

<S>      <C>         <C>                                                                                        <C>
ARTICLE I            DEFINITIONS AND ACCOUNTING TERMS.............................................................1
         1.01        Defined Terms................................................................................1
         1.02        Other Interpretive Provisions...............................................................20
         1.03        Accounting Terms............................................................................21
         1.04        Rounding....................................................................................21
         1.05        Times of Day................................................................................21
         1.06        Letter of Credit Amounts....................................................................21

ARTICLE II           THE COMMITMENTS AND CREDIT EXTENSIONS.......................................................22
         2.01        Committed Loans.............................................................................22
         2.02        Borrowings, Conversions and Continuations of Committed Loans................................22
         2.03        Letters of Credit...........................................................................24
         2.04        Swing Line Loans............................................................................32
         2.05        Prepayments.................................................................................35
         2.06        Termination or Reduction of Commitments.....................................................36
         2.07        Repayment of Loans..........................................................................36
         2.08        Interest....................................................................................36
         2.09        Fees........................................................................................37
         2.10        Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate................38
         2.11        Evidence of Debt............................................................................38
         2.12        Payments Generally; Administrative Agent's Clawback.........................................39
         2.13        Sharing of Payments by Lenders..............................................................41
         2.14        Increase in Commitments.....................................................................42

ARTICLE III          TAXES, YIELD PROTECTION AND ILLEGALITY......................................................43
         3.01        Taxes.......................................................................................43
         3.02        Illegality..................................................................................45
         3.03        Inability to Determine Rates................................................................45
         3.04        Increased Costs; Reserves on Eurodollar Rate Loans..........................................46
         3.05        Compensation for Losses.....................................................................47
         3.06        Mitigation Obligations; Replacement of Lenders..............................................48
         3.07        Survival....................................................................................48

ARTICLE IV           CONDITIONS PRECEDENT TO CREDIT EXTENSIONS...................................................49
         4.01        Conditions of Initial Credit Extension......................................................49
         4.02        Conditions to all Credit Extensions.........................................................50

ARTICLE V            REPRESENTATIONS AND WARRANTIES..............................................................51
         5.01        Existence, Qualification and Power..........................................................51
         5.02        Authorization; No Contravention.............................................................51
         5.03        Governmental Authorization; Other Consents..................................................51
         5.04        Binding Effect..............................................................................52
         5.05        Financial Statements; No Material Adverse Effect............................................52
         5.06        Litigation..................................................................................52
         5.07        No Default..................................................................................53
         5.08        Ownership of Property; Liens................................................................53
         5.09        Environmental Compliance....................................................................53
         5.10        Insurance...................................................................................53

                                      -i-
<PAGE>

         5.11        Taxes.......................................................................................53
         5.12        ERISA Compliance............................................................................53
         5.13        Subsidiaries; Equity Interests..............................................................54
         5.14        Margin Regulations; Investment Company Act..................................................54
         5.15        Disclosure..................................................................................54
         5.16        Compliance with Laws........................................................................55
         5.17        Taxpayer Identification Number..............................................................55
         5.18        Intellectual Property; Licenses, Etc........................................................55

ARTICLE VI           AFFIRMATIVE COVENANTS.......................................................................55
         6.01        Financial Statements........................................................................56
         6.02        Certificates; Other Information.............................................................57
         6.03        Notices.....................................................................................58
         6.04        Payment of Obligations......................................................................59
         6.05        Preservation of Existence, Etc..............................................................59
         6.06        Maintenance of Properties...................................................................59
         6.07        Maintenance of Insurance....................................................................59
         6.08        Compliance with Laws........................................................................59
         6.09        Books and Records...........................................................................59
         6.10        Inspection Rights...........................................................................60
         6.11        Use of Proceeds.............................................................................60

ARTICLE VII          NEGATIVE COVENANTS..........................................................................60
         7.01        Liens.......................................................................................60
         7.02        Investments.................................................................................61
         7.03        Indebtedness................................................................................64
         7.04        Fundamental Changes.........................................................................65
         7.05        Dispositions................................................................................66
         7.06        Restricted Payments.........................................................................66
         7.07        Change in Nature of Business................................................................67
         7.08        Transactions with Affiliates................................................................67
         7.09        Burdensome Agreements.......................................................................67
         7.10        Use of Proceeds.............................................................................67
         7.11        Financial Covenants.........................................................................67

ARTICLE VIII         EVENTS OF DEFAULT AND REMEDIES..............................................................68
         8.01        Events of Default...........................................................................68
         8.02        Remedies Upon Event of Default..............................................................70
         8.03        Application of Funds........................................................................71

ARTICLE IX           ADMINISTRATIVE AGENT........................................................................71
         9.01        Appointment and Authority...................................................................71
         9.02        Rights as a Lender..........................................................................72
         9.03        Exculpatory Provisions......................................................................72
         9.04        Reliance by Administrative Agent............................................................73
         9.05        Delegation of Duties........................................................................73
         9.06        Resignation of Administrative Agent.........................................................73
         9.07        Non-Reliance on Administrative Agent and Other Lenders......................................74
         9.08        Administrative Agent May File Proofs of Claim...............................................74

ARTICLE X            MISCELLANEOUS...............................................................................75
         10.01       Amendments, Etc.............................................................................75
         10.02       Notices; Effectiveness; Electronic Communication............................................76

                                      -ii-
<PAGE>

         10.03       No Waiver; Cumulative Remedies..............................................................79
         10.04       Expenses; Indemnity; Damage Waiver..........................................................79
         10.05       Payments Set Aside..........................................................................81
         10.06       Successors and Assigns......................................................................81
         10.07       Treatment of Certain Information; Confidentiality...........................................85
         10.08       Right of Setoff.............................................................................86
         10.09       Interest Rate Limitation....................................................................87
         10.10       Counterparts; Integration; Effectiveness....................................................87
         10.11       Survival of Representations and Warranties..................................................87
         10.12       Severability................................................................................87
         10.13       Replacement of Lenders......................................................................88
         10.14       Governing Law; Jurisdiction; Etc............................................................88
         10.15       Waiver of Jury Trial........................................................................89
         10.16       No Advisory or Fiduciary Responsibility.....................................................90
         10.17       USA PATRIOT Act Notice......................................................................90
         10.18       ENTIRE AGREEMENT............................................................................90

         SIGNATURES.............................................................................................S-1

</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>

SCHEDULES

<S>               <C>
         2.01     Commitments and Applicable Percentages
         5.05     Supplement to Interim Financial Statements
         5.06     Litigation
         5.09     Environmental Matters
         5.13     Subsidiaries; Other Equity Investments; Equity Interests in the Borrower
         5.18     Intellectual Property Matters
         7.01     Existing Liens
         7.03     Existing Indebtedness
         10.02    Administrative Agent's Office; Certain Addresses for Notices

EXHIBITS

                  Form of

         A        Committed Loan Notice
         B        Swing Line Loan Notice
         C        Note
         D        Compliance Certificate
         E        Assignment and Assumption
         F        Opinion Matters

</TABLE>

                                      -iv-

<PAGE>

                                CREDIT AGREEMENT

         This CREDIT  AGREEMENT  ("Agreement")  is entered into as of August 27,
2007, among U.S. PHYSICAL THERAPY,  INC., a Nevada corporation (the "Borrower"),
each lender from time to time party  hereto  (collectively,  the  "Lenders"  and
individually,  a "Lender"),  and BANK OF AMERICA, N.A., as Administrative Agent,
Swing Line Lender and L/C Issuer.

         The Borrower has requested that the Lenders provide a revolving  credit
facility,  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:

         "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  10.02,  or such
other  address  or  account  as the  Administrative  Agent may from time to time
notify to 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.

         "Aggregate Commitments" means the Commitments of all the Lenders.

         "Agreement" means this Credit Agreement.

         "Applicable  Percentage"  means with respect to any Lender at any time,
the  percentage  (carried  out to the  ninth  decimal  place)  of the  Aggregate
Commitments  represented  by  such  Lender's  Commitment  at such  time.  If the
commitment of each Lender to make Loans and the  obligation of the L/C Issuer to
make L/C Credit  Extensions have been terminated  pursuant to Section 8.02 or if
the Aggregate  Commitments have expired,  then the Applicable Percentage of each
Lender shall be  determined  based on the  Applicable  Percentage of such Lender
most  recently  in effect,  giving  effect to any  subsequent  assignments.  The
initial  Applicable  Percentage 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.

CREDIT AGREEMENT Page 1

<PAGE>

         "Applicable Rate" means,  from time to time, 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 6.02(a):

                                 Applicable Rate
                                                    Eurodollar
                                                    Rate and
 Pricing       Consolidated        Commitment        Letters
  Level       Leverage Ratio          Fee           of Credit       Base Rate
---------- --------------------- --------------- ---------------- -------------
    1             <1.00              .10%             .50%           (2.25%)
    2        <1.00 but <1.50         .15%             .625%          (2.125%)
              -
    3        <1.50 but <2.00         .20%             .75%           (2.00%)
              -
    4              <2.00             .25%             1.50%          (1.25%)
                     -

         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
delivered pursuant to Section 6.02(a);  provided,  however, that if a Compliance
Certificate  is not  delivered  when due in accordance  with such Section,  then
Pricing Level 4 shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered.  The Applicable
Rate in effect  from the  Closing  Date  through  the date the first  Compliance
Certificate is delivered  pursuant to Section 6.02(a) shall be determined  based
upon Pricing Level 1.

         Notwithstanding   anything  to  the  contrary   contained  herein,  the
Commitment Fee due and payable by the Borrower with respect to any date shall be
increased  by an  additional  .10% for each  level in the  event  that the Total
Outstandings  on such date are less than fifty  percent  (50%) of the  Aggregate
Commitments on such date.

         Notwithstanding  anything to the contrary contained in this definition,
the  determination of the Applicable Rate for any period shall be subject to the
provisions of Section 2.10(b).

         "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.

         "Assignee  Group"  means  two  or  more  Eligible  Assignees  that  are
Affiliates  of one  another or two or more  Approved  Funds  managed by the same
investment advisor.

         "Assignment and Assumption" means an assignment and assumption  entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section  10.06(b)),  and accepted by the  Administrative  Agent,  in
substantially  the  form  of  Exhibit  E or  any  other  form  approved  by  the
Administrative Agent.

         "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,
and (b) in respect of any Synthetic Lease Obligation,  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.

CREDIT AGREEMENT Page 2

<PAGE>

         "Audited Financial  Statements" means the audited  consolidated balance
sheet of the Borrower and its  Subsidiaries  for the fiscal year ended  December
31, 2006, and the related consolidated  statements of net income,  shareholders'
equity and cash flows for such fiscal year of the Borrower and its Subsidiaries,
including the notes thereto.

         "Availability  Period"  means the period from and including the Closing
Date to the earliest of (a) the Maturity  Date,  (b) the date of  termination of
the  Aggregate  Commitments  pursuant  to  Section  2.06,  and (c)  the  date of
termination of the commitment of each Lender to make Loans and of the obligation
of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

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

         "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% 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 such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public  announcement of such
change.

         "Base Rate  Committed  Loan" means a Committed Loan that is a Base Rate
         Loan.

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

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

         "Borrower Materials" has the meaning specified in Section 6.02.

         "Borrowing" means a Committed  Borrowing or a Swing Line Borrowing,  as
the context may require.

         "Business Day" means any day other than a 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
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.

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

         "Cash Equivalents" means any of the following types of Investments,  to
the extent  owned by the Borrower or any of its  Subsidiaries  free and clear of
all Liens (other than Liens permitted hereunder):

CREDIT AGREEMENT Page 3

<PAGE>

                  (a) readily  marketable  obligations  issued or  directly  and
         fully  guaranteed  or insured  by the  United  States of America or any
         agency or  instrumentality  thereof having  maturities of not more than
         360 days from the date of acquisition  thereof;  provided that the full
         faith and credit of the United  States of America is pledged in support
         thereof;

                  (b) time deposits with, or insured  certificates of deposit or
         bankers'  acceptances  of, any commercial bank that (i) (A) is a Lender
         or (B) is organized under the Laws of the United States of America, any
         state thereof or the District of Columbia or is the  principal  banking
         subsidiary of a bank holding  company  organized  under the Laws of the
         United  States  of  America,  any  state  thereof  or the  District  of
         Columbia,  and is a member of the Federal Reserve  System,  (ii) issues
         (or the parent of which issues)  commercial paper rated as described in
         clause  (c) of this  definition  and (iii)  has  combined  capital  and
         surplus of at least  $500,000,000,  in each case with maturities of not
         more than 180 days from the date of acquisition thereof;

                  (c) commercial  paper issued by any Person organized under the
         Laws of any state of the United  States of  America  and rated at least
         "Prime-1" (or the then  equivalent  grade) by Moody's or at least "A-1"
         (or the then equivalent  grade) by S&P, in each case with maturities of
         not more than 180 days from the date of acquisition thereof;

                  (d) fully collateralized  repurchase agreements with a term of
         not more than 30 days for securities  described in clause (a) above and
         entered  into with a  financial  institution  satisfying  the  criteria
         described in clause (b) above; and

                  (e) Investments, classified in accordance with GAAP as current
         assets of the Borrower or any of its Subsidiaries,  in (i) mutual funds
         or  (ii)  money  market  investment   programs   registered  under  the
         Investment  Company Act of 1940,  which are  administered  by financial
         institutions  that  have the  highest  rating  obtainable  from  either
         Moody's  or S&P,  and the  portfolios  of which are  limited  solely to
         Investments of the character, quality and maturity described in clauses
         (a), (b) and (c) of this definition.

         "Cash  Management  Agreement"  means  any  agreement  to  provide  cash
management services, including treasury, depository,  overdraft, credit or debit
card, electronic funds transfer and other cash management arrangements.

         "Cash  Management  Bank" means any Person  that,  at the time it enters
into a Cash Management  Agreement,  is a Lender or an Affiliate of a Lender,  in
its capacity as a party to such Cash Management Agreement.

         "Change in Law" means the occurrence, after the date of this Agreement,
of any of the  following:  (a) the adoption or taking  effect of any law,  rule,
regulation or treaty,  (b) any change in any law, rule,  regulation or treaty or
in the administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any  request,  guideline or directive
(whether or not having the force of law) by any Governmental Authority.

CREDIT AGREEMENT Page 4

<PAGE>

         "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  securities  that such
         person  or  group  has the  right to  acquire,  whether  such  right is
         exercisable  immediately or only after the passage of time (such right,
         an "option right")),  directly or indirectly,  of a majority or more of
         the equity  securities 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);

                  (b) during any period of 12 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) any Person or two or more Persons  acting in concert shall
         have  acquired by  contract or  otherwise,  directly or  indirectly,  a
         controlling  influence over the management or policies of the Borrower,
         or control over the equity  securities 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)  representing  a majority or more of the combined
         voting power of such securities.

         "Closing  Date" means the first date all the  conditions  precedent  in
Section 4.01 are satisfied or waived in accordance with Section 10.01.

         "Code" means the Internal Revenue Code of 1986.

         "Commitment"  means,  as to each  Lender,  its  obligation  to (a) make
Committed  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.

CREDIT AGREEMENT Page 5

<PAGE>

         "Committed  Borrowing"  means a borrowing  consisting  of  simultaneous
Committed  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.

         "Committed Loan" has the meaning specified in Section 2.01.

         "Committed  Loan Notice"  means a notice of (a) a Committed  Borrowing,
(b) a  conversion  of  Committed  Loans  from  one Type to the  other,  or (c) a
continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

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

         "Consolidated  EBITDA" means, for any period,  for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income
(which shall take into account any  provision for minority  interests)  for such
period  plus (a) the  following  to the  extent  deducted  in  calculating  such
Consolidated Net Income: (i) Consolidated Interest Charges for such period, (ii)
the provision for Federal,  state, local and foreign income taxes payable by the
Borrower  and  its  Subsidiaries  for  such  period,   (iii)   depreciation  and
amortization expense, (iv) other non-recurring  expenses of the Borrower and its
Subsidiaries reducing such Consolidated Net Income which do not represent a cash
item in such period or any future period,  (v)  extraordinary  or unusual losses
and (vi) non cash  stock  based  compensation  expenses  related  to  Borrower's
employees and minus (b) the following to the extent included in calculating such
Consolidated  Net Income:  (i)  Federal,  state,  local and  foreign  income tax
credits of the Borrower and its Subsidiaries for such period,  (ii) all non-cash
items increasing Consolidated Net Income for such period and (iii) extraordinary
or unusual gains. Consolidated EBITDA for any period shall include "EBITDA" on a
pro forma basis for such period of each Person (or  business  unit,  division or
group of such Person) acquired by a Borrower during such period,  provided that,
in respect of any  acquisition,  the pro forma  information  shall  include  the
historical   financial  results  of  the  acquired  Person  based  on  financial
statements  provided by the seller of such entity  being  acquired  (adjusted if
necessary to comply with GAAP) on a pro forma trailing 12 month basis, and shall
assume  that  the   consummation  of  such   acquisition  (and  the  incurrence,
refinancing,   or  assumption  of  any  Indebtedness  in  connection  with  such
acquisition) occurred on the first day of the trailing 12 month period.

         "Consolidated  Fixed Charge  Coverage  Ratio" means,  as of any date of
determination,  for the Borrower and its  Subsidiaries on a consolidated  basis,
the ratio of (a) Consolidated EBITDA plus (i) rent and lease expense during such
period  less (ii) an amount  equal to  Capital  Expenditures  made  during  such
period,  (iii) federal,  state,  local and foreign income taxes paid during such
period,  and (iv)  dividends,  distributions  and stock  purchases  (other  than
dividends, distributions, and stock purchases paid or made with capital stock of
the  Borrower) to (b) the sum of (i)  Consolidated  Interest  Charges,  (ii) the
aggregate  principal amount of all regularly scheduled principal payments during
such period, (iii) rent and lease expense during such period, (iv) the amount of
payment in respect of Attributable  Indebtedness that is not otherwise  included
in  Consolidated  Interest  Charges  during  such  period  and (v) any  earn-out
payments made during such period.

CREDIT AGREEMENT Page 6

<PAGE>

         "Consolidated   Funded   Indebtedness"   means,   as  of  any  date  of
determination,  for the Borrower and its  Subsidiaries on a consolidated  basis,
the sum of (a) the  outstanding  principal  amount of all  obligations,  whether
current or long-term,  for borrowed money (including  Obligations hereunder) and
all obligations evidenced by bonds, debentures,  notes, loan agreements or other
similar  instruments,  (b) all  purchase  money  Indebtedness,  (c)  all  direct
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),
(e)  Attributable  Indebtedness in respect of capital leases and Synthetic Lease
Obligations, (f) without duplication, all Guarantees with respect to outstanding
Indebtedness  of the types specified in clauses (a) through (e) above of Persons
other than the Borrower or any Subsidiary, and (g) all Indebtedness of the types
referred to in clauses (a) through (f) 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,  unless  such  Indebtedness  is  expressly  made  non-recourse  to the
Borrower or such Subsidiary.

         "Consolidated Interest Charges" means, for any period, for the Borrower
and its  Subsidiaries  on a  consolidated  basis,  the sum of (a) 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 in accordance with GAAP,
and (b) the portion of rent expense of the Borrower  and its  Subsidiaries  with
respect to such  period  under  capital  leases  that is treated as  interest 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.

         "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 extraordinary losses) for that
period.

         "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" means the possession, directly or indirectly, of the power to
direct or cause the 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.

CREDIT AGREEMENT Page 7

<PAGE>

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

         "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.

         "Defaulting  Lender"  means any Lender  that (a) has failed to fund any
portion  of  the  Committed   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  unless such
failure  has  been  cured,   (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 unless such  failure  has been  cured,  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
by any Person, 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.

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

         "Eligible  Assignee" means any Person that meets the requirements to be
an assignee under Section 10.06(b)(iii), (v) and (vi) (subject to such consents,
if any, as may be required under Section 10.06(b)(iii)).

         "Environmental  Laws"  means any and all  Federal,  state,  local,  and
foreign 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.

CREDIT AGREEMENT Page 8

<PAGE>

         "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 Interests" means, with respect to any Person, all of the shares
of capital stock of (or other ownership or profit interests in) such Person, all
of the warrants,  options or other rights for the purchase or  acquisition  from
such  Person  of  shares  of  capital  stock of (or  other  ownership  or profit
interests  in)  such  Person,   all  of  the  securities   convertible  into  or
exchangeable  for  shares  of  capital  stock of (or other  ownership  or profit
interests  in) such Person or  warrants,  rights or options for the  purchase or
acquisition from such Person of such shares (or such other  interests),  and all
of  the  other  ownership  or  profit   interests  in  such  Person   (including
partnership,  member or trust interests  therein),  whether voting or nonvoting,
and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination.

         "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 Code (and Sections  414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the 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 Section 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 which 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 any  liability  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  Rate"  means,  for any  Interest  Period with respect to a
Eurodollar  Rate  Loan,  the  rate  per  annum  equal  to  the  British  Bankers
Association  LIBOR  Rate  ("BBA  LIBOR"),  as  published  by  Reuters  (or other
commercially available source providing quotations of BBA LIBOR as designated by
the Administrative  Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest  Period,  for
Dollar  deposits (for delivery on the first day of such Interest  Period) with a
term equivalent to such Interest  Period.  If such rate is not available at such
time for any reason,  then the "Eurodollar  Rate" for such Interest Period shall
be the rate per annum determined by the  Administrative  Agent to be the rate 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   11:00  a.m.  (London  time)  two  Business  Days  prior  to  the
commencement of such Interest Period.

CREDIT AGREEMENT Page 9

<PAGE>

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

         "Event of Default" has the meaning specified in Section 8.01.

         "Excluded Taxes" means, with respect to the  Administrative  Agent, any
Lender, the L/C Issuer or any other recipient of any payment to be made by or on
account of any  obligation  of the Borrower  hereunder,  (a) taxes imposed on or
measured by its overall net income  (however  denominated),  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  such  recipient  is
organized  or in which its  principal  office is located  or, in the case of any
Lender,  in which its  applicable  Lending  Office is  located,  (b) any  branch
profits  taxes  imposed by the United  States or any  similar tax imposed by any
other  jurisdiction  in which the  Borrower  is located and (c) in the case of a
Foreign  Lender  (other than an assignee  pursuant to a request by the  Borrower
under Section 10.13),  any withholding tax that is imposed on amounts payable to
such Foreign  Lender at the time such Foreign  Lender becomes a party hereto (or
designates a new Lending  Office) or is  attributable  to such Foreign  Lender's
failure or inability  (other than as a result of a Change in Law) to comply with
Section 3.01(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled,  at the time of  designation  of a new Lending  Office (or
assignment),  to receive  additional  amounts from the Borrower  with respect to
such withholding tax pursuant to Section 3.01(a).

         "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 August 27, 2007 among
the Borrower and the Administrative Agent.

         "Foreign Lender" means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is resident for tax purposes.
For purposes of this definition,  the United States,  each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

CREDIT AGREEMENT Page 10

<PAGE>

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

         "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 activities.

         "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 or such other
principles  as  may be  approved  by a  significant  segment  of the  accounting
profession in the United States,  that are applicable to the circumstances as of
the date of determination, consistently applied.

         "Governmental  Authority"  means the government of the United States or
any other nation,  or of any  political  subdivision  thereof,  whether state or
local,  and any agency,  authority,  instrumentality,  regulatory  body,  court,
central  bank or  other  entity  exercising  executive,  legislative,  judicial,
taxing,  regulatory  or  administrative  powers or functions of or pertaining to
government  (including any  supra-national  bodies such as the European Union or
the European Central Bank).

         "Guarantee" means, as to any Person, any (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 such 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,  (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 such Person  securing  any  Indebtedness  or other
obligation  of any  other  Person,  whether  or not such  Indebtedness  or other
obligation is assumed by such Person (or any right,  contingent or otherwise, of
any  holder of such  Indebtedness  to obtain any such  Lien).  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.

CREDIT AGREEMENT Page 11

<PAGE>

         "Guarantors"  means,  at any time,  any Person that, at such time,  has
executed a Guaranty in favor of the Administrative  Agent for the benefit of the
Lenders guaranteeing  payment of some or all of the Obligations.  As of the date
of this Agreement, the parties acknowledge that there are no Guarantors.

         "Guaranty"  means any guaranty  agreement made by the  Guarantor(s)  in
favor  of the  Administrative  Agent  and  the  Lender.  As of the  date of this
Agreement, the parties acknowledge that there are no Guaranties.

         "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.

         "Honor Date" has the meaning given to such term as in Section 2.03(c).

         "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 of such Person for borrowed money and all
         obligations of such Person evidenced by bonds, debentures,  notes, loan
         agreements or other similar instruments;

                  (b) all  direct  or  contingent  obligations  of  such  Person
         arising under  letters of credit  (including  standby and  commercial),
         bankers'  acceptances,   bank  guaranties,  surety  bonds  and  similar
         instruments;

                  (c) net obligations of such Person under any Swap Contract;

                  (d)  all  obligations  of  such  Person  to pay  the  deferred
         purchase  price of  property or  services  (other  than trade  accounts
         payable in the ordinary  course of business and, in each case, not past
         due for more  than 90 days  after  the due date of such  trade  account
         payable  or if past  due  more  than 90 days  after  such  date,  being
         contested in good faith by appropriate proceedings);

                  (e) indebtedness  (excluding prepaid interest thereon) secured
         by a  Lien  on  property  owned  or  being  purchased  by  such  Person
         (including  indebtedness arising under conditional sales or other title
         retention agreements), whether or not such indebtedness shall have been
         assumed by such Person or is limited in recourse;

                  (f) capital leases and Synthetic Lease Obligations;

                  (g)  all  obligations  of such  Person  to  purchase,  redeem,
         retire,  defease or otherwise make any payment in respect of any Equity
         Interest in such Person or any other Person,  valued,  in the case of a
         redeemable  preferred  interest,  at the  greater of its  voluntary  or
         involuntary  liquidation  preference plus accrued and unpaid  dividends
         (provided,   however,  for  the  avoidance  of  doubt,  the  contingent
         obligation of the Borrower to repurchase Equity Interests in the future
         of another  Person in  accordance  with the terms of any  agreement  of
         limited  partnership  or  similar  agreement  shall not be deemed to be
         Indebtedness   unless  and  until  such  obligation   shall  exist  and
         accordingly be treated as a liability pursuant to GAAP); and

CREDIT AGREEMENT Page 12

<PAGE>

                  (h) all  Guarantees  of such  Person in  respect of any of the
         foregoing.

         For all purposes  hereof,  the Indebtedness of any Person shall include
the Indebtedness 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 a joint venturer,  unless such Indebtedness is expressly
made  non-recourse  to such Person.  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.  The amount of any  capital  lease or  Synthetic  Lease
Obligation  as of any date  shall be  deemed to be the  amount  of  Attributable
Indebtedness in respect thereof as of such date.

         "Indemnified Taxes" means Taxes other than Excluded Taxes.

         "Indemnitees" has the meaning specified in Section 10.04(b).

         "Information" has the meaning specified in Section 10.07.

         "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 or
six months thereafter, as selected by the Borrower in its Committed Loan Notice;
provided that:

                           (a) 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;

                           (b) 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

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

         "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 or other securities 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  and any  arrangement  pursuant  to  which  the  investor
Guarantees  Indebtedness  of such other  Person,  or (c) the  purchase  or other
acquisition  (in one  transaction  or a series  of  transactions)  of  assets of
another  Person  that  constitute  a business  unit.  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.

CREDIT AGREEMENT Page 13

<PAGE>

         "IP Rights" has the meaning specified in Section 5.18.

         "IRS" means the United States Internal Revenue Service.

         "ISP" means, with respect to any Letter of Credit,  the  "International
Standby Practices 1998" published by the Institute of International  Banking Law
& Practice,  Inc. (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 of Credit Application,  and any other document,  agreement and instrument
entered into by the L/C Issuer and the Borrower (or any  Subsidiary) or in favor
of the L/C Issuer and relating to such Letter of Credit.

         "Laws" means,  collectively,  all  applicable  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,  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  Applicable
Percentage.

         "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 Committed Borrowing.

         "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 Issuer" means Bank of America in its capacity as issuer of Letters
of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

         "L/C Obligations" means, as at any date of determination, the aggregate
amount  available to be drawn under all  outstanding  Letters of Credit plus the
aggregate  of all  Unreimbursed  Amounts,  including  all  L/C  Borrowings.  For
purposes  of  computing  the amount  available  to be drawn  under any Letter of
Credit,  the amount of such Letter of Credit shall be  determined  in accordance
with  Section  1.06.  For all  purposes  of this  Agreement,  if on 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 so
remaining available to be drawn.

CREDIT AGREEMENT Page 14

<PAGE>

         "Lender" has the meaning specified in the introductory paragraph hereto
and, as the context requires, includes the Swing Line Lender.

         "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 any standby letter of credit issued hereunder.

         "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 L/C Issuer.

         "Letter  of Credit  Expiration  Date"  means the day that is seven 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 $3,000,000.  The
Letter of Credit  Sublimit  is part of, and not in  addition  to, the  Aggregate
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,  any easement,  right of way or other
encumbrance  on  title  to  real  property,   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 Committed Loan or a Swing Line Loan.

         "Loan  Documents" means this Agreement,  each Note, any Guaranty,  each
Issuer  Document,  and the Fee  Letter,  each  SWAP  Contract,  Cash  Management
Agreement,  and each other  instrument,  document,  and  agreement  executed  in
connection  therewith;  provided  that for the  purposes  of the  definition  of
"Material Adverse Effect" and Articles IV through IX, "Loan Documents" shall not
include SWAP Contracts and Cash Management Agreements.

         "Loan Parties" means the Borrower.

         "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 or the Borrower and its  Subsidiaries  taken as a whole; (b) a material
impairment of the ability of any Loan Party to perform its 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.

CREDIT AGREEMENT Page 15

<PAGE>

         "Maturity Date" means August 31, 2011; provided, however, that, if such
date is not a  Business  Day,  the  Maturity  Date  shall be the next  preceding
Business Day.

         "Medicaid" means that  government-sponsored  entitlement  program under
Title XIX, P.L. 89-97 of the Social Security Act, which provides  federal grants
to states for medical assistance based on specific eligibility  criteria, as set
forth on Section 1396, et seq. of Title 42 of the United States Codes.

         "Medicare"  means that  government-sponsored  insurance  program  under
Title XVIII, P.L. 89-97, 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.

         "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.

         "Note"  means a  promissory  note  made by the  Borrower  in favor of a
Lender  evidencing  Loans  made by such  Lender,  substantially  in the  form of
Exhibit C.

         "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 or any Affiliate  thereof 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.

         "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  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.

         "Other Taxes" means all present or future stamp or documentary taxes or
any other excise or property  taxes,  charges or similar levies arising from any
payment made  hereunder or under any other Loan Document or from the  execution,
delivery or enforcement  of, or otherwise with respect to, this Agreement or any
other Loan Document.

         "Outstanding  Amount"  means (a) with  respect to  Committed  Loans and
Swing Line Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of Committed
Loans and Swing Line Loans, as the case may be,  occurring on such date; and (b)
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 by the
Borrower of Unreimbursed Amounts.

CREDIT AGREEMENT Page 16

<PAGE>

         "Participant" has the meaning specified in Section 10.06(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),  other than a Multiemployer  Plan, 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.

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

         "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 Code or Title IV of ERISA,  any ERISA
Affiliate.

         "Platform" has the meaning specified in Section 6.02.

         "Public Lender" has the meaning specified in Section 6.02.

         "Register" has the meaning specified in Section 10.06(c).

         "Related  Parties"  means,  with respect to any Person,  such  Person's
Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person's Affiliates.

         "Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the 30 day notice period has been waived.

         "Request for Credit  Extension"  means (a) with respect to a Borrowing,
conversion or continuation of Committed Loans, a Committed 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, as of any date of determination,  (a) Lenders
having more than 50% of the Aggregate  Commitments  or, (b) if the commitment of
each  Lender to make  Loans  and the  obligation  of the L/C  Issuer to make L/C
Credit Extensions have been terminated pursuant to Section 8.02, Lenders holding
in the  aggregate  more than 50% of the Total  Outstandings  (with the aggregate
amount of each  Lender's  risk  participation  and funded  participation  in L/C
Obligations and Swing Line Loans being deemed "held" by such Lender for purposes
of this  definition);  provided that the  Commitment  of, and the portion of the
Total  Outstandings  held or deemed  held by,  any  Defaulting  Lender  shall be
excluded for purposes of making a determination of Required  Lenders,  provided,
however,  in the event that there are more than one Lender under this  Agreement
at any one time, "Required Lenders" shall mean, as of any date of determination,
at least two of the Lenders.

CREDIT AGREEMENT Page 17

<PAGE>

         "Responsible  Officer" means the chief  executive  officer,  president,
chief financial officer, treasurer,  assistant treasurer or controller 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.

         "Restricted Payment" means any dividend or other distribution  (whether
in cash,  securities  or other  property)  with respect to any capital  stock or
other Equity Interest 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 other Equity  Interest,
or on account of any return of capital to the Borrower's stockholders,  partners
or members (or the equivalent Person thereof).

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

         "Social Security Act" means the Social Security Act of 1965.

         "Star Acquisition" means the acquisition by the Borrower or one or more
of its Subsidiaries of (i) a 69% interest in Star Physical Therapy, LP, which in
connection  with the acquisition  transaction  will become the successor to Star
Physical Therapy,  LLC, which operates 52 outpatient physical therapy clinics in
Tennessee and Indiana and a 100% interest in SPT  Management  GP, LLC which will
own the entire 1% general partner interest in Star Physical Therapy, LP and (ii)
the  rights to  operate  other  clinics in  Kentucky,  for a  purchase  price of
approximately  $23.1 million (including cash, a seller note and Equity Interests
of the Borrower), subject to adjustment for changes in working capital.

         "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 securities or other interests  having ordinary voting power for
the election of  directors or other  governing  body (other than  securities  or
interests  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 or 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,  which 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.

CREDIT AGREEMENT Page 18

<PAGE>

         "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 Borrowing"  means a borrowing of a Swing Line Loan pursuant
to Section 2.04.

         "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 Swing  Line  Borrowing
pursuant to Section 2.04(b), which, if in writing, shall be substantially in the
form of Exhibit B.

         "Swing  Line  Sublimit"  means an  amount  equal to the  lesser  of (a)
$3,000,000  and (b) the Aggregate  Commitments.  The Swing Line Sublimit is part
of, and not in addition to, the Aggregate Commitments.

         "Synthetic Lease Obligation" means the monetary  obligation of a Person
under (a) a so-called  synthetic,  off-balance  sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

         "Taxes" means all present or future  taxes,  levies,  imposts,  duties,
deductions,  withholdings,  assessments,  fees or other  charges  imposed by any
Governmental  Authority,  including any interest,  additions to tax or penalties
applicable thereto.

CREDIT AGREEMENT Page 19

<PAGE>

         "Threshold Amount" means $1,000,000.

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

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

         "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 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).

         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 definitions of terms herein shall apply equally to the
         singular  and plural forms of the terms  defined.  Whenever the context
         may require,  any pronoun  shall include the  corresponding  masculine,
         feminine  and  neuter  forms.  The  words  "include,"   "includes"  and
         "including"  shall be  deemed to be  followed  by the  phrase  "without
         limitation."  The  word  "will"  shall  be  construed  to have the same
         meaning and effect as the word  "shall."  Unless the  context  requires
         otherwise,  (i)  any  definition  of or  reference  to  any  agreement,
         instrument or other  document  (including  any  Organization  Document)
         shall be construed as referring to such agreement,  instrument or other
         document  as from  time  to time  amended,  supplemented  or  otherwise
         modified  (subject to any restrictions on such amendments,  supplements
         or modifications set forth herein or in any other Loan Document),  (ii)
         any  reference  herein to any Person shall be construed to include such
         Person's successors and assigns, (iii) the words "herein," "hereof" and
         "hereunder,"  and  words  of  similar  import  when  used  in any  Loan
         Document,  shall be  construed  to refer to such Loan  Document  in its
         entirety  and  not  to  any  particular  provision  thereof,  (iv)  all
         references  in a Loan  Document to  Articles,  Sections,  Exhibits  and
         Schedules  shall be construed to refer to Articles and Sections of, and
         Exhibits and Schedules  to, the Loan Document in which such  references
         appear,  (v) any  reference to any law shall  include all statutory and
         regulatory   provisions   consolidating,    amending,    replacing   or
         interpreting such law and any reference to any law or regulation shall,
         unless otherwise specified, refer to such law or regulation as amended,
         modified or supplemented  from time to time, and (vi) the words "asset"
         and  "property"  shall be construed to have the same meaning and effect
         and to  refer  to any  and  all  tangible  and  intangible  assets  and
         properties, including cash, securities, accounts and contract rights.

                  (b) 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."

CREDIT AGREEMENT Page 20

<PAGE>

                  (c) 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)  Generally.  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 applied on a consistent  basis, as
         in effect from time to time,  applied in a manner  consistent with that
         used in preparing the Audited Financial Statements, except as otherwise
         specifically prescribed herein.

                  (b)  Changes in GAAP.  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 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)   Consolidation  of  Variable   Interest   Entities.   All
         references herein to consolidated  financial statements of the Borrower
         and its  Subsidiaries  or to the  determination  of any  amount for the
         Borrower and its  Subsidiaries  on a consolidated  basis or any similar
         reference  shall,  in each  case,  be deemed to include  each  variable
         interest  entity that the Borrower is required to consolidate  pursuant
         to FASB  Interpretation  No. 46 -  Consolidation  of Variable  Interest
         Entities:  an  interpretation  of ARB No. 51 (January  2003) as if such
         variable interest entity were a Subsidiary as defined herein.

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

         1.06 Letter of Credit Amounts.  Unless otherwise  specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the stated amount
of such  Letter of Credit in effect at such time  (less any  amounts  previously
drawn under such Letters of Credit); provided, however, that with respect to any
Letter of Credit that, by its terms or the terms of any Issuer Document  related
thereto,  provides  for one or more  automatic  increases  in the stated  amount
thereof,  the amount of such Letter of Credit  shall be deemed to be the maximum
stated  amount  of such  Letter  of  Credit  after  giving  effect  to all  such
increases, whether or not such maximum stated amount is in effect at such time.

CREDIT AGREEMENT Page 21

<PAGE>

                                   ARTICLE II

                      THE COMMITMENTS AND CREDIT EXTENSIONS
                      -------------------------------------

         2.01  Committed  Loans.  Subject to the terms and  conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a "Committed
Loan") to the  Borrower  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  Commitment;  provided,  however,  that
after giving effect to any Committed Borrowing, (a) the Total Outstandings shall
not exceed the Aggregate  Commitments,  and (b) the aggregate Outstanding Amount
of the Committed Loans of any Lender, plus such Lender's  Applicable  Percentage
of the Outstanding Amount of all L/C Obligations,  plus such Lender's Applicable
Percentage  of the  Outstanding  Amount of all Swing Line Loans shall not exceed
such Lender's  Commitment.  Within the limits of each Lender's  Commitment,  and
subject to the other terms and conditions  hereof, the Borrower may borrow under
this Section 2.01,  prepay under Section 2.05,  and reborrow  under this Section
2.01.  Committed  Loans may be Base Rate  Loans or  Eurodollar  Rate  Loans,  as
further provided herein.

         2.02 Borrowings, Conversions and Continuations of Committed Loans.

                  (a) Each  Committed  Borrowing,  each  conversion of Committed
         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 12:00 noon
         (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 Committed  Loans,  and
         (ii) on the  requested  date of any  Borrowing  of Base Rate  Committed
         Loans.  Each telephonic notice by the Borrower pursuant to this Section
         2.02(a)  must be confirmed  promptly by delivery to the  Administrative
         Agent of a written Committed Loan Notice,  appropriately  completed and
         signed by a  Responsible  Officer of the Borrower.  Each  Borrowing of,
         conversion to or  continuation  of Eurodollar  Rate 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  Committed  Loans shall be
         in a principal  amount of  $500,000 or a whole  multiple of $100,000 in
         excess  thereof.  Each  Committed  Loan Notice  (whether  telephonic or
         written)  shall  specify  (i)  whether the  Borrower  is  requesting  a
         Committed  Borrowing,  a conversion of Committed Loans from one Type to
         the  other,  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 Committed  Loans to be borrowed,  converted or  continued,  (iv) the
         Type of Committed  Loans to be borrowed or to which existing  Committed
         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 Committed  Loan in a Committed Loan Notice or if the Borrower
         fails to give a timely notice  requesting a conversion or continuation,
         then the applicable  Committed 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 such Committed  Loan Notice,  but fails to specify an
         Interest Period, it will be deemed to have specified an Interest Period
         of one month.

CREDIT AGREEMENT Page 22

<PAGE>

                  (b)  Following  receipt  of  a  Committed  Loan  Notice,   the
         Administrative Agent shall promptly notify each Lender of the amount of
         its Applicable  Percentage of the applicable Committed Loans, 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 described in the
         preceding subsection. In the case of a Committed Borrowing, each Lender
         shall  make  the  amount  of  its  Committed   Loan  available  to  the
         Administrative   Agent   in   immediately   available   funds   at  the
         Administrative  Agent's Office not later than 2:00 p.m. on the Business
         Day  specified  in  the   applicable   Committed   Loan  Notice.   Upon
         satisfaction  of the  applicable  conditions  set forth in Section 4.02
         (and, if such Borrowing is the initial Credit Extension, Section 4.01),
         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 the Committed Loan
         Notice with respect to such  Borrowing is given by the Borrower,  there
         are L/C Borrowings  outstanding,  then the proceeds of such  Borrowing,
         first,  shall  be  applied  to the  payment  in  full of any  such  L/C
         Borrowings,  and second,  shall be made  available  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 an Interest
         Period  for such  Eurodollar  Rate  Loan.  During  the  existence  of a
         Default,  no Loans may be  requested  as,  converted to or continued as
         Eurodollar Rate Loans without the consent of the Required Lenders.

                  (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. 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  Committed  Borrowings,  all
         conversions  of  Committed  Loans from one Type to the  other,  and all
         continuations  of Committed Loans as the same Type,  there shall not be
         more than six  Interest  Periods in effect  with  respect to  Committed
         Loans.

CREDIT AGREEMENT Page 23

<PAGE>

         2.03 Letters of Credit.

                  (a) The Letter of Credit Commitment.

                           (i)  Subject  to the terms and  conditions  set forth
                  herein,  (A) the L/C  Issuer  agrees,  in  reliance  upon  the
                  agreements of the Lenders set forth in 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 for the  account of the  Borrower,
                  and to amend  Letters  of Credit  previously  issued by it, in
                  accordance  with  subsection  (b)  below,  and  (2)  to  honor
                  drawings  under the  Letters  of Credit;  and (B) the  Lenders
                  severally agree to participate in Letters of Credit issued for
                  the  account  of the  Borrower  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
                  Outstandings shall not exceed the Aggregate  Commitments,  (y)
                  the aggregate Outstanding Amount of the Committed Loans of any
                  Lender,  plus  such  Lender's  Applicable  Percentage  of  the
                  Outstanding Amount of all L/C Obligations,  plus such Lender's
                  Applicable  Percentage of the Outstanding  Amount of all Swing
                  Line Loans shall not exceed such Lender's Commitment,  and (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 to 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.

                           (ii) The L/C  Issuer  shall not  issue any  Letter of
                  Credit, if:

                                (A) the expiry date of such requested  Letter of
                           Credit would occur more than twelve  months after the
                           date of issuance,  unless the  Required  Lenders have
                           approved such expiry date; or

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

CREDIT AGREEMENT Page 24

<PAGE>

                                (B) the  issuance of such Letter of Credit would
                           violate  one  or  more  policies  of the  L/C  Issuer
                           applicable to letters of credit generally;

                                (C)   except   as   otherwise   agreed   by  the
                           Administrative  Agent and the L/C Issuer, such Letter
                           of Credit is in an initial  stated  amount  less than
                           $50,000;

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

                                (E)  such   Letter   of  Credit   contains   any
                           provisions for automatic  reinstatement of the stated
                           amount after any drawing thereunder; or

                                (F) 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
                           L/C Issuer has entered into satisfactory arrangements
                           with the Borrower or such Lender to eliminate the L/C
                           Issuer's risk with respect to such Lender.

                           (iv) The L/C  Issuer  shall not  amend any  Letter of
                  Credit if the 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) The L/C Issuer  shall be under no  obligation  to
                  amend any Letter of Credit if (A) the L/C Issuer would have no
                  obligation  at such time to issue such Letter of Credit in its
                  amended form under the terms hereof, or (B) the beneficiary of
                  such Letter of Credit does not accept the  proposed  amendment
                  to such Letter of Credit.

                           (vi)  The  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 the L/C Issuer shall
                  have all of the  benefits and  immunities  (A) provided to the
                  Administrative  Agent in Article  IX with  respect to any acts
                  taken or  omissions  suffered by the L/C Issuer in  connection
                  with  Letters of Credit  issued by it or proposed to be issued
                  by it and  Issuer  Documents  pertaining  to such  Letters  of
                  Credit as fully as if the term "Administrative  Agent" as used
                  in Article IX  included  the L/C Issuer  with  respect to such
                  acts or omissions,  and (B) as  additionally  provided  herein
                  with respect to the L/C Issuer.

CREDIT AGREEMENT Page 25
<PAGE>

                  (b)  Procedures  for  Issuance  and  Amendment  of  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 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 L/C
                  Issuer and the Administrative  Agent not later than 11:00 a.m.
                  at least two Business Days (or such later date and time as the
                  Administrative  Agent  and  the  L/C  Issuer  may  agree  in a
                  particular  instance  in their 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 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;  (G) the purpose and nature of
                  the requested Letter of Credit;  and (H) such other matters as
                  the 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 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 L/C Issuer may
                  require.  Additionally,  the Borrower shall furnish to the 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
                  L/C Issuer or the Administrative Agent may require.

                           (ii)  Promptly  after receipt of any Letter of Credit
                  Application,   the  L/C   Issuer   will   confirm   with   the
                  Administrative  Agent (by  telephone  or in writing)  that the
                  Administrative  Agent has  received  a copy of such  Letter of
                  Credit  Application  from the  Borrower  and, if not,  the L/C
                  Issuer  will  provide  the  Administrative  Agent  with a copy
                  thereof.  Unless the 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  contained  in  Article IV
                  shall not then be  satisfied,  then,  subject to the terms and
                  conditions  hereof,  the L/C Issuer  shall,  on the  requested
                  date, issue a Letter of Credit for the account of the Borrower
                  or enter into the applicable amendment, as the case may be, in
                  each  case in  accordance  with  the L/C  Issuer's  usual  and
                  customary business practices. Immediately upon the issuance of
                  each  Letter of Credit,  each  Lender  shall be deemed to, and
                  hereby  irrevocably  and  unconditionally  agrees to, purchase
                  from the L/C  Issuer a risk  participation  in such  Letter of
                  Credit  in an amount  equal to the  product  of such  Lender's
                  Applicable  Percentage  times  the  amount  of such  Letter of
                  Credit.

CREDIT AGREEMENT Page 26

<PAGE>

                           (iii)  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
                  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 a  drawing  under  such  Letter of
                  Credit,  the L/C  Issuer  shall  notify the  Borrower  and the
                  Administrative Agent thereof. Not later than 11:00 a.m. on the
                  date of any payment by the L/C Issuer under a Letter of Credit
                  (each  such  date,  an  "Honor  Date"),   the  Borrower  shall
                  reimburse the L/C Issuer through the  Administrative  Agent in
                  an amount equal to the amount of such drawing. If the Borrower
                  fails  to so  reimburse  the  L/C  Issuer  by such  time,  the
                  Administrative  Agent shall promptly notify each Lender of the
                  Honor  Date,  the  amount  of the  unreimbursed  drawing  (the
                  "Unreimbursed  Amount"),  and  the  amount  of  such  Lender's
                  Applicable  Percentage  thereof.  In such event,  the Borrower
                  shall be deemed to have  requested  a Committed  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 Commitments and the
                  conditions  set forth in Section 4.02 (other than the delivery
                  of a  Committed  Loan  Notice).  Any  notice  given by the 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  shall upon any notice  pursuant to
                  Section  2.03(c)(i) make funds available to the Administrative
                  Agent for the account of the L/C Issuer at the  Administrative
                  Agent's Office in an amount equal to its Applicable Percentage
                  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  Committed  Loan to the
                  Borrower in such amount. The Administrative  Agent shall remit
                  the funds so received to the L/C Issuer.

                           (iii) With respect to any Unreimbursed Amount that is
                  not fully  refinanced  by a Committed  Borrowing  of Base Rate
                  Loans because the  conditions set forth in Section 4.02 cannot
                  be satisfied or for any other  reason,  the Borrower  shall be
                  deemed to have  incurred  from the 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  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.

CREDIT AGREEMENT Page 27

<PAGE>

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

                           (v) Each Lender's  obligation to make Committed Loans
                  or L/C Advances to reimburse  the 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  setoff,
                  counterclaim,  recoupment,  defense or other  right which such
                  Lender may have  against the 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
                  Committed Loans pursuant to this Section 2.03(c) is subject to
                  the  conditions set forth in Section 4.02 (other than delivery
                  by the Borrower of a Committed Loan Notice). No such making of
                  an  L/C  Advance  shall   relieve  or  otherwise   impair  the
                  obligation of the Borrower to reimburse the L/C Issuer for the
                  amount of any payment  made by the L/C Issuer under any Letter
                  of Credit, together with interest as provided herein.

                           (vi) If any  Lender  fails to make  available  to the
                  Administrative  Agent for the  account  of the 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  in Section  2.03(c)(ii),  the 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
                  the L/C Issuer at a rate per annum equal to the greater of the
                  Federal Funds Rate and a rate  determined by the L/C Issuer in
                  accordance   with   banking   industry   rules  on   interbank
                  compensation,  plus any administrative,  processing or similar
                  fees customarily  charged by the L/C Issuer in connection with
                  the foregoing.  If such Lender pays such amount (with interest
                  and fees as  aforesaid),  the amount so paid shall  constitute
                  such  Lender's   Committed   Loan  included  in  the  relevant
                  Committed  Borrowing or L/C Advance in respect of the relevant
                  L/C  Borrowing,  as the case may be. A certificate  of the 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.

CREDIT AGREEMENT Page 28

<PAGE>

                  (d) Repayment of Participations.

                           (i) At any  time  after  the 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 the 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 Applicable Percentage thereof in
                  the same funds as those received by the Administrative Agent.

                           (ii) If any payment  received  by the  Administrative
                  Agent for the  account of the L/C Issuer  pursuant  to Section
                  2.03(c)(i)  is  required  to be  returned  under  any  of  the
                  circumstances  described in Section 10.05 (including  pursuant
                  to any  settlement  entered  into  by the  L/C  Issuer  in its
                  discretion), each Lender shall pay to the Administrative Agent
                  for the  account of the L/C Issuer its  Applicable  Percentage
                  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.   The
                  obligations of the Lenders under this clause shall survive the
                  payment in full of the Obligations and the termination of this
                  Agreement.

                  (e)  Obligations  Absolute.  The obligation of the Borrower to
         reimburse  the 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, or any other Loan Document;

                           (ii)  the  existence  of  any  claim,   counterclaim,
                  setoff,  defense  or  other  right  that the  Borrower  or any
                  Subsidiary 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 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 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
                  Credit;  or any  payment  made by the 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

CREDIT AGREEMENT Page 29

<PAGE>

                           (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, in the
         event of any claim of noncompliance with the Borrower's instructions or
         other  irregularity,  the  Borrower  will  immediately  notify  the L/C
         Issuer.  The Borrower shall be  conclusively  deemed to have waived any
         such claim  against the L/C Issuer and its  correspondents  unless such
         notice is given as aforesaid.

                  (f) Role of L/C  Issuer.  Each Lender and the  Borrower  agree
         that,  in paying any drawing  under a Letter of Credit,  the L/C Issuer
         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  Issuer,  the
         Administrative  Agent, any of their respective  Related Parties nor any
         correspondent,  participant  or  assignee  of the L/C  Issuer  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 Issuer  Document.  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 Issuer, the Administrative Agent, any
         of their respective Related Parties nor any correspondent,  participant
         or assignee of the L/C Issuer 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 the L/C Issuer,
         and the 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 the L/C Issuer's willful  misconduct or gross negligence
         or the 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,  the 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 the L/C
         Issuer shall not 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.

CREDIT AGREEMENT Page 30

<PAGE>

                  (g) Cash  Collateral.  Upon the request of the  Administrative
         Agent,  (i) if the 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 L/C  Obligation for any reason  remains  outstanding,  the Borrower
         shall,  in  each  case,   immediately  Cash   Collateralize   the  then
         Outstanding  Amount of all L/C  Obligations.  Sections 2.05 and 8.02(c)
         set forth certain  additional  requirements  to deliver Cash Collateral
         hereunder.  For purposes of this Section 2.03, Section 2.05 and Section
         8.02(c),  "Cash  Collateralize"  means to pledge  and  deposit  with or
         deliver to the Administrative  Agent, for the benefit of the 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 L/C  Issuer  (which
         documents are hereby consented to by the Lenders).  Derivatives of such
         term have  corresponding  meanings.  The Borrower  hereby grants to the
         Administrative  Agent,  for  the  benefit  of the  L/C  Issuer  and the
         Lenders, a security interest in all such cash, deposit accounts and all
         balances  therein 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 ISP and UCP. Unless otherwise  expressly
         agreed by the L/C  Issuer and the  Borrower  when a Letter of Credit is
         issued,  (i) the rules of the ISP shall apply to each standby Letter of
         Credit,  and (ii) the rules of the  Uniform  Customs and  Practice  for
         Documentary  Credits,  as most recently  published by the International
         Chamber  of  Commerce  at the  time of  issuance  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 Applicable Percentage a Letter of Credit fee (the "Letter of Credit
         Fee") for each standby  Letter of Credit equal to the  Applicable  Rate
         times the daily  amount  available  to be drawn  under  such  Letter of
         Credit.  For  purposes of computing  the daily  amount  available to be
         drawn  under any Letter of Credit,  the amount of such Letter of Credit
         shall be determined in accordance  with Section 1.06.  Letter of Credit
         Fees shall be (i) due and payable on the first  Business  Day after the
         end 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 and
         (ii) computed on a quarterly  basis in arrears.  If there is any change
         in the Applicable Rate during any quarter,  the daily amount  available
         to be drawn under each  standby  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,  upon the request of the
         Required  Lenders,  while any Event of  Default  exists,  all Letter of
         Credit Fees shall accrue at the Default Rate.

CREDIT AGREEMENT Page 31

<PAGE>

                  (j)  Fronting  Fee  and  Documentary  and  Processing  Charges
         Payable to L/C  Issuer.  The  Borrower  shall pay  directly  to the L/C
         Issuer for its own account a fronting  fee with respect to each standby
         Letter of Credit,  at the rate per annum  specified  in the Fee Letter,
         computed on the daily amount available to be drawn under such Letter of
         Credit on a quarterly basis in arrears.  Such fronting fee shall be due
         and  payable  on the tenth  Business  Day after the end of each  March,
         June,  September  and  December  in respect of the most  recently-ended
         quarterly  period  (or  portion  thereof,  in the  case  of  the  first
         payment),  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.  For purposes of  computing  the daily
         amount available to be drawn under any Letter of Credit,  the amount of
         such Letter of Credit shall be determined  in  accordance  with Section
         1.06.  In addition,  the Borrower  shall pay directly to the L/C Issuer
         for its own account the customary issuance, presentation, amendment and
         other processing fees, and other standard costs and charges, of the 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  Issuer  Documents.  In the  event  of any
         conflict between the terms hereof and the terms of any Issuer Document,
         the terms hereof shall control.

         2.04 Swing Line Loans.

                  (a) The Swing Line.  Subject to the terms and  conditions  set
         forth  herein,  the Swing Line  Lender  agrees,  in  reliance  upon the
         agreements of the other Lenders set forth in this Section 2.04, to make
         loans (each such loan, a "Swing Line Loan") to the  Borrower  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  Applicable   Percentage  of  the
         Outstanding Amount of Committed Loans and L/C Obligations of the Lender
         acting as Swing Line  Lender,  may  exceed the amount of such  Lender's
         Commitment;  provided,  however,  that after giving effect to any Swing
         Line Loan,  (i) the Total  Outstandings  shall not exceed the Aggregate
         Commitments, and (ii) the aggregate Outstanding Amount of the Committed
         Loans of any Lender,  plus such Lender's  Applicable  Percentage of the
         Outstanding   Amount  of  all  L/C  Obligations,   plus  such  Lender's
         Applicable Percentage of the Outstanding Amount of all Swing Line Loans
         shall not exceed such Lender's 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
         shall be deemed to, and hereby irrevocably and  unconditionally  agrees
         to,  purchase from the Swing Line Lender a risk  participation  in such
         Swing  Line Loan in an amount  equal to the  product  of such  Lender's
         Applicable Percentage times the amount of such Swing Line Loan.

CREDIT AGREEMENT Page 32

<PAGE>

                  (b) Borrowing  Procedures.  Each Swing Line Borrowing 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 of $100,000,  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 1:00 p.m. on
         the date of the proposed  Swing Line  Borrowing (A) directing the Swing
         Line  Lender  not to make  such  Swing  Line  Loan as a  result  of the
         limitations  set forth in the first  proviso to the first  sentence  of
         Section 2.04(a),  or (B) that one or more of the applicable  conditions
         specified  in Article IV is not then  satisfied,  then,  subject to the
         terms and conditions hereof, the Swing Line Lender will, not later than
         2:00 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 at its office by crediting  the account of the Borrower on the
         books of the Swing Line Lender in immediately available funds.

                  (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  authorizes the Swing Line Lender to
                  so request on its  behalf),  that each Lender make a Base Rate
                  Committed Loan in an amount equal to such Lender's  Applicable
                  Percentage 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  Committed  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 Commitments
                  and the  conditions  set forth in Section 4.02. The Swing Line
                  Lender  shall   furnish  the  Borrower  with  a  copy  of  the
                  applicable  Committed Loan Notice  promptly  after  delivering
                  such notice to the  Administrative  Agent.  Each Lender  shall
                  make an  amount  equal  to its  Applicable  Percentage  of the
                  amount  specified in such Committed  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 Committed 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  Committed  Loan to the
                  Borrower in such amount. The Administrative  Agent shall remit
                  the funds so received to the Swing Line Lender.

CREDIT AGREEMENT Page 33

<PAGE>

                           (ii) If for any reason any Swing Line Loan  cannot be
                  refinanced by such a Committed  Borrowing in  accordance  with
                  Section 2.04(c)(i),  the request for Base Rate Committed 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  fund its risk  participation  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  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 greater
                  of the Federal  Funds Rate and a rate  determined by the Swing
                  Line  Lender in  accordance  with  banking  industry  rules on
                  interbank compensation, plus any administrative, processing or
                  similar fees  customarily  charged by the Swing Line Lender in
                  connection with the foregoing. If such Lender pays such amount
                  (with  interest  and fees as  aforesaid),  the  amount so paid
                  shall constitute such Lender's  Committed Loan included in the
                  relevant  Committed  Borrowing or funded  participation in the
                  relevant Swing Line Loan, as the case may be. 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 Committed Loans
                  or to  purchase  and fund risk  participations  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 setoff, counterclaim, recoupment, defense or
                  other right which 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 Committed  Loans pursuant to this
                  Section  2.04(c)  is subject  to the  conditions  set forth in
                  Section  4.02.  No such funding of risk  participations  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 risk participation 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
                  Applicable  Percentage  thereof  in the  same  funds  as those
                  received by the Swing Line Lender.

CREDIT AGREEMENT Page 34

<PAGE>

                           (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  10.05  (including
                  pursuant  to any  settlement  entered  into by the Swing  Line
                  Lender in its discretion),  each Lender shall pay to the Swing
                  Line Lender its Applicable Percentage 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. The obligations of the Lenders under this clause shall
                  survive  the  payment  in  full  of the  Obligations  and  the
                  termination of this Agreement.

                  (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 Base Rate  Committed
         Loan or risk  participation  pursuant to this Section 2.04 to refinance
         such Lender's Applicable Percentage of any Swing Line Loan, interest in
         respect of such Applicable  Percentage  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.

         2.05 Prepayments.

                  (a) The Borrower may, upon notice to the Administrative Agent,
         at any time or from time to time voluntarily  prepay Committed Loans in
         whole or in part  without  premium or penalty;  provided  that (i) such
         notice  must be  received  by the  Administrative  Agent not later than
         10:00 a.m. (A) three  Business  Days prior to any date of prepayment of
         Eurodollar  Rate Loans and (B) on the date of  prepayment  of Base Rate
         Committed Loans;  (ii) any prepayment of Eurodollar Rate Loans shall be
         in a principal  amount of  $500,000 or a whole  multiple of $100,000 in
         excess  thereof;  and (iii) any prepayment of Base Rate Committed Loans
         shall be in a  principal  amount of  $500,000  or a whole  multiple  of
         $100,000  in excess  thereof  or, in each  case,  if less,  the  entire
         principal  amount  thereof  then  outstanding.  Each such notice  shall
         specify  the date and  amount of such  prepayment  and the  Type(s)  of
         Committed  Loans to be prepaid and, if Eurodollar  Rate Loans are to be
         prepaid, the Interest Period(s) of such Loans. The Administrative Agent
         will  promptly  notify each Lender of its receipt of each such  notice,
         and of the  amount  of  such  Lender's  Applicable  Percentage  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
         on the amount prepaid,  together with any additional  amounts  required
         pursuant to Section 3.05. Each such prepayment  shall be applied to the
         Committed  Loans of the  Lenders in  accordance  with their  respective
         Applicable Percentages.

CREDIT AGREEMENT Page 35

<PAGE>

                  (b) 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 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.  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.

                  (c) If for any  reason  the  Total  Outstandings  at any  time
         exceed the Aggregate  Commitments  then in effect,  the Borrower  shall
         immediately  prepay 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(c)  unless  after  the
         prepayment  in full of the  Loans  the Total  Outstandings  exceed  the
         Aggregate Commitments then in effect.

         2.06  Termination or Reduction of  Commitments.  The Borrower may, upon
notice to the Administrative Agent, terminate the Aggregate Commitments, or from
time to time permanently reduce the Aggregate Commitments; provided that (a) any
such notice shall be received by the  Administrative  Agent not later than 10:00
a.m. five Business Days prior to the date of termination  or reduction,  (b) 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,  (c) the Borrower  shall not
terminate or reduce the Aggregate  Commitments  if, after giving effect  thereto
and to any concurrent prepayments hereunder, the Total Outstandings would exceed
the Aggregate  Commitments,  and (d) if, after giving effect to any reduction of
the  Aggregate  Commitments,  the  Letter of Credit  Sublimit  or the Swing Line
Sublimit exceeds the amount of the Aggregate 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  Commitments.  Any reduction of the Aggregate Commitments shall
be  applied  to the  Commitment  of  each  Lender  according  to its  Applicable
Percentage.  All fees accrued until the effective date of any termination of the
Aggregate Commitments shall be paid on the effective date of such termination.

         2.07 Repayment of Loans.

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

                  (b) The  Borrower  shall  repay  each  Swing  Line Loan on the
         earlier to occur of (i) the date ten  Business  Days after such Loan is
         made and (ii) the Maturity Date.

         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  Eurodollar  Rate  for  such  Interest  Period  plus  the
         Applicable Rate; (ii) each Base Rate Committed 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.

CREDIT AGREEMENT Page 36

<PAGE>

                  (b)      (i) If any  amount  of  principal  of any Loan is not
                  paid  when  due  (without  regard  to  any  applicable   grace
                  periods),  whether  at stated  maturity,  by  acceleration  or
                  otherwise,  such amount shall  thereafter  bear  interest at a
                  fluctuating  interest rate per annum at all times equal to the
                  Default Rate to the fullest  extent  permitted  by  applicable
                  Laws.

                           (ii) If any amount (other than principal of any Loan)
                  payable by the  Borrower  under any Loan  Document is not paid
                  when due (without  regard to any  applicable  grace  periods),
                  whether at stated maturity, by acceleration or otherwise, then
                  upon the request of the  Required  Lenders,  such amount shall
                  thereafter  bear interest at a  fluctuating  interest rate per
                  annum at all times  equal to the  Default  Rate to the fullest
                  extent permitted by applicable Laws.

                           (iii) Upon the request of the Required Lenders, while
                  any Event of Default  exists,  the Borrower shall pay interest
                  on  the  principal  amount  of  all  outstanding   Obligations
                  hereunder  at a  fluctuating  interest  rate per  annum at all
                  times  equal  to  the  Default  Rate  to  the  fullest  extent
                  permitted by applicable Laws.

                           (iv) Accrued and unpaid  interest on past due amounts
                  (including  interest  on past due  interest)  shall be due and
                  payable upon demand.

                  (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 certain 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 in accordance with
         its  Applicable  Percentage,  a commitment  fee equal to the Applicable
         Rate times the actual daily amount by which the  Aggregate  Commitments
         exceed the sum of (i) the  Outstanding  Amount of  Committed  Loans and
         (ii) 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 IV is
         not met, and 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
         last  day of the  Availability  Period.  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.

CREDIT AGREEMENT Page 37

<PAGE>

                  (b) Other Fees. (i) The Borrower shall pay the  Administrative
         Agent  for  its  own  account  fees  in the  amounts  and at the  times
         specified in the Fee Letter.  Such fees shall be fully earned when paid
         and shall not be refundable for any reason whatsoever.

                           (ii) The Borrower  shall pay to the Lenders such fees
                  as shall have been  separately  agreed  upon in writing in the
                  amounts  and at the times so  specified.  Such  fees  shall be
                  fully  earned  when paid and shall not be  refundable  for any
                  reason whatsoever.

         2.10  Computation  of Interest  and Fees;  Retroactive  Adjustments  of
Applicable  Rate. (a) 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. Each determination by the  Administrative  Agent of an interest rate or fee
hereunder  shall be  conclusive  and binding for all purposes,  absent  manifest
error.

                  (b) If, as a result of any restatement of or other  adjustment
         to the  financial  statements  of the Borrower or for any other reason,
         the  Borrower  or the  Lenders  determine  that  (i)  the  Consolidated
         Leverage Ratio as calculated by the Borrower as of any applicable  date
         was  inaccurate  and  (ii) a  proper  calculation  of the  Consolidated
         Leverage  Ratio would have resulted in higher  pricing for such period,
         the Borrower shall immediately and retroactively be obligated to pay to
         the  Administrative  Agent for the account of the  applicable  Lenders,
         promptly  on  demand  by  the  Administrative   Agent  (or,  after  the
         occurrence  of an actual or deemed  entry of an order for  relief  with
         respect to the Borrower under the Bankruptcy Code of the United States,
         automatically and without further action by the  Administrative  Agent,
         any  Lender or the L/C  Issuer),  an amount  equal to the excess of the
         amount of interest  and fees that should have been paid for such period
         over the amount of interest  and fees  actually  paid for such  period.
         This paragraph shall not limit the rights of the Administrative  Agent,
         any  Lender  or the L/C  Issuer,  as the  case  may be,  under  Section
         2.03(c)(iii),  2.03(i) or 2.08(b) or under Article VIII. The Borrower's
         obligations  under this paragraph  shall survive the termination of the
         Aggregate  Commitments  and  the  repayment  of all  other  Obligations
         hereunder.

         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 Note, which shall evidence
         such  Lender's  Loans in  addition to such  accounts  or records.  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.

CREDIT AGREEMENT Page 38

<PAGE>

                  (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; Administrative Agent's Clawback.

                  (a) General.  All payments to be made by the Borrower shall be
         made  without  condition  or deduction  for any  counterclaim,  defense
         (other than the defense of payment),  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
         Applicable Percentage (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 fee shall  continue  to
         accrue.  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.

                  (b) (i)  Funding by  Lenders;  Presumption  by  Administrative
         Agent. Unless the Administrative  Agent shall have received notice from
         a Lender  prior to the  proposed  date of any  Committed  Borrowing  of
         Eurodollar  Rate Loans (or, in the case of any  Committed  Borrowing of
         Base  Rate  Loans,  prior to 12:00  noon on the date of such  Committed
         Borrowing)   that  such   Lender  will  not  make   available   to  the
         Administrative  Agent such Lender's share of such Committed  Borrowing,
         the  Administrative  Agent may  assume  that such  Lender has made such
         share  available on such date in  accordance  with Section 2.02 (or, in
         the case of a Committed  Borrowing of Base Rate Loans, that such Lender
         has  made  such  share  available  in  accordance  with and at the time
         required by Section  2.02) and may, in reliance  upon such  assumption,
         make available to the Borrower a corresponding  amount.  In such event,
         if a Lender has not in fact made its share of the applicable  Committed
         Borrowing  available to the  Administrative  Agent, then the applicable
         Lender and the Borrower  severally  agree to pay to the  Administrative
         Agent  forthwith  on demand such  corresponding  amount in  immediately
         available funds with interest thereon,  for each day from and including
         the date such amount is made available to the Borrower to but excluding
         the date of payment to the Administrative  Agent, at (A) in the case of
         a payment to be made by such Lender,  the greater of the Federal  Funds
         Rate and a rate  determined by the  Administrative  Agent in accordance
         with  banking  industry  rules  on  interbank  compensation,  plus  any
         administrative,  processing or similar fees customarily  charged by the
         Administrative  Agent in connection with the foregoing,  and (B) in the
         case of a  payment  to be  made  by the  Borrower,  the  interest  rate
         applicable  to Base Rate Loans.  If the  Borrower and such Lender shall
         pay  such  interest  to the  Administrative  Agent  for the  same or an
         overlapping  period, the  Administrative  Agent shall promptly remit to
         the Borrower the amount of such  interest paid by the Borrower for such
         period.  If such  Lender  pays its  share of the  applicable  Committed
         Borrowing to the  Administrative  Agent,  then the amount so paid shall
         constitute  such Lender's  Committed  Loan  included in such  Committed
         Borrowing.  Any payment by the Borrower  shall be without  prejudice to
         any claim the Borrower may have against a Lender that shall have failed
         to make such payment to the Administrative Agent.

CREDIT AGREEMENT Page 39

<PAGE>

                           (ii)   Payments   by   Borrower;    Presumptions   by
                  Administrative  Agent.  Unless the Administrative  Agent shall
                  have  received  notice from the Borrower  prior to the date on
                  which any payment is due to the  Administrative  Agent for the
                  account of the  Lenders or the L/C Issuer  hereunder  that the
                  Borrower will not make such payment,  the Administrative Agent
                  may assume  that the  Borrower  has made such  payment on such
                  date in  accordance  herewith  and may, in reliance  upon such
                  assumption,  distribute  to the Lenders or the L/C Issuer,  as
                  the  case  may be,  the  amount  due.  In such  event,  if the
                  Borrower has not in fact made such  payment,  then each of the
                  Lenders  or the L/C  Issuer,  as the  case  may be,  severally
                  agrees  to  repay to the  Administrative  Agent  forthwith  on
                  demand the  amount so  distributed  to such  Lender or the L/C
                  Issuer, in immediately  available funds with interest thereon,
                  for each  day from and  including  the  date  such  amount  is
                  distributed  to it to but excluding the date of payment to the
                  Administrative Agent, at the greater of the Federal Funds Rate
                  and  a  rate  determined  by  the   Administrative   Agent  in
                  accordance   with   banking   industry   rules  on   interbank
                  compensation.

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

                  (c)  Failure to Satisfy  Conditions  Precedent.  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 IV 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.

CREDIT AGREEMENT Page 40

<PAGE>

                  (d)  Obligations of Lenders  Several.  The  obligations of the
         Lenders  hereunder to make Committed Loans, to fund  participations  in
         Letters of Credit and Swing Line Loans and to make payments pursuant to
         Section  10.04(c) are several and not joint.  The failure of any Lender
         to make any Committed Loan, to fund any such  participation  or to make
         any payment under Section 10.04(c) 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   Committed   Loan,  to  purchase  its
         participation or to make its payment under Section 10.04(c).

                  (e) Funding Source. 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 by Lenders. If any Lender shall, by exercising
any right of setoff or counterclaim  or otherwise,  obtain payment in respect of
any  principal of or interest on any of the  Committed  Loans made by it, or the
participations in L/C Obligations or in Swing Line Loans held by it resulting in
such Lender's  receiving payment of a proportion of the aggregate amount of such
Committed Loans or participations  and accrued interest thereon greater than its
pro rata share  thereof as  provided  herein,  then the  Lender  receiving  such
greater proportion shall (a) notify the  Administrative  Agent of such fact, and
(b) purchase (for cash at face value)  participations in the Committed Loans and
subparticipations  in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of all
such  payments  shall be shared by the Lenders  ratably in  accordance  with the
aggregate  amount of  principal  of and  accrued  interest  on their  respective
Committed Loans and other amounts owing them, provided that:

                           (i) if any such  participations or  subparticipations
                  are  purchased  and all or any portion of the  payment  giving
                  rise   thereto   is   recovered,    such   participations   or
                  subparticipations  shall be rescinded  and the purchase  price
                  restored to the extent of such recovery, without interest; and

                           (ii) the  provisions  of this  Section  shall  not be
                  construed  to apply to (x) any  payment  made by the  Borrower
                  pursuant to and in  accordance  with the express terms of this
                  Agreement  or  (y)  any  payment   obtained  by  a  Lender  as
                  consideration for the assignment of or sale of a participation
                  in any of its  Committed  Loans  or  subparticipations  in L/C
                  Obligations   or  Swing   Line  Loans  to  any   assignee   or
                  participant,  other  than to the  Borrower  or any  Subsidiary
                  thereof  (as to which the  provisions  of this  Section  shall
                  apply).

         The Borrower consents to the foregoing and agrees, to the extent it may
effectively  do  so  under   applicable   law,  that  any  Lender   acquiring  a
participation  pursuant to the foregoing  arrangements  may exercise against the
Borrower rights of setoff and counterclaim with respect to such participation as
fully as if such Lender were a direct  creditor of the Borrower in the amount of
such participation.

CREDIT AGREEMENT Page 41

<PAGE>

         2.14 Increase in Commitments.

                  (a) Request for  Increase.  Provided  there exists no Default,
         upon notice to the  Administrative  Agent (which shall promptly  notify
         the Lenders),  the Borrower may from time to time,  request an increase
         in the Aggregate  Commitments  by an amount (for all such requests) not
         exceeding  $20,000,000;  provided  that  (i) any  such  request  for an
         increase  shall be in a  minimum  amount  of  $5,000,000,  and (ii) the
         Borrower  may make a  maximum  of four  such  requests.  At the time of
         sending  such  notice,   the   Borrower  (in   consultation   with  the
         Administrative  Agent) shall  specify the time period within which each
         Lender is  requested  to respond  (which shall in no event be less than
         ten  Business  Days  from the date of  delivery  of such  notice to the
         Lenders).

                  (b) Lender Elections to Increase. Each Lender shall notify the
         Administrative  Agent within such time period  whether or not it agrees
         to increase its  Commitment  and, if so, whether by an amount equal to,
         greater than, or less than its Applicable  Percentage of such requested
         increase.  Any Lender not  responding  within such time period shall be
         deemed to have declined to increase its Commitment.

                  (c) Notification by Administrative Agent;  Additional Lenders.
         The  Administrative  Agent shall notify the Borrower and each Lender of
         the Lenders' responses to each request made hereunder.

                  (d)  Effective   Date  and   Allocations.   If  the  Aggregate
         Commitments  are  increased  in  accordance  with  this  Section,   the
         Administrative  Agent and the Borrower  shall  determine  the effective
         date (the "Increase  Effective  Date") and the final allocation of such
         increase.  In the event that there is a shortfall between the amount of
         the  requested  increase  and the amount  the  Lenders  are  willing to
         increase their  Commitments,  Bank of America,  N.A. agrees to increase
         its Commitment in an amount equal to such shortfall. The Administrative
         Agent shall  promptly  notify the Borrower and the Lenders of the final
         allocation of such increase and the Increase Effective Date.

                  (e) Conditions to  Effectiveness  of Increase.  As a condition
         precedent  to  such  increase,   the  Borrower  shall  deliver  to  the
         Administrative  Agent a certificate  of each Loan Party dated as of the
         Increase  Effective Date (in sufficient  copies for each Lender) signed
         by a  Responsible  Officer  of  such  Loan  Party  (i)  certifying  and
         attaching  the  resolutions  adopted  by such Loan Party  approving  or
         consenting  to such  increase,  and (ii) in the  case of the  Borrower,
         certifying that,  before and after giving effect to such increase,  (A)
         the representations and warranties contained in Article V and the other
         Loan Documents are true and correct on and as of the Increase Effective
         Date,  except to the extent that such  representations  and  warranties
         specifically  refer to an earlier date, in which case they are true and
         correct as of such earlier  date,  and except that for purposes of this
         Section  2.14,  the   representations   and  warranties   contained  in
         subsections (a) and (b) of Section 5.05 shall be deemed to refer to the
         most  recent  statements  furnished  pursuant  to clauses  (a) and (b),
         respectively,  of Section 6.01, and (B) no Default exists. The Borrower
         shall prepay any Committed Loans outstanding on the Increase  Effective
         Date (and pay any additional amounts required pursuant to Section 3.05)
         to the extent necessary to keep the outstanding Committed Loans ratable
         with any revised  Applicable  Percentages  arising from any  nonratable
         increase in the Commitments under this Section.

CREDIT AGREEMENT Page 42

<PAGE>

                  (f) Conflicting  Provisions.  This Section shall supersede any
         provisions in Section 2.13 or 10.01 to the contrary.

                                  ARTICLE III

                     TAXES, YIELD PROTECTION AND ILLEGALITY
                     --------------------------------------

         3.01 Taxes.

                  (a)  Payments  Free of Taxes.  Any and all  payments  by or on
         account of any obligation of the Borrower  hereunder or under any other
         Loan Document shall be made free and clear of and without  reduction or
         withholding for any Indemnified Taxes or Other Taxes,  provided that if
         the  Borrower  shall  be  required  by  applicable  law to  deduct  any
         Indemnified Taxes (including any Other Taxes) from such payments,  then
         (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) the  Administrative  Agent,
         Lender or L/C Issuer,  as the case may be,  receives an amount equal to
         the sum it would have received had no such  deductions  been made, (ii)
         the Borrower  shall make such  deductions  and (iii) the Borrower shall
         timely  pay the  full  amount  deducted  to the  relevant  Governmental
         Authority in accordance with applicable law.

                  (b) Payment of Other Taxes by the Borrower.  Without  limiting
         the provisions of subsection  (a) above,  the Borrower shall timely pay
         any Other Taxes to the relevant  Governmental  Authority in  accordance
         with applicable law.

                  (c)  Indemnification  by  the  Borrower.  The  Borrower  shall
         indemnify  the  Administrative  Agent,  each Lender and the L/C Issuer,
         within  10 days  after  demand  therefor,  for the full  amount  of any
         Indemnified Taxes or Other Taxes (including  Indemnified Taxes or Other
         Taxes imposed or asserted on or  attributable  to amounts payable under
         this Section) paid by the Administrative  Agent, such Lender or the L/C
         Issuer, as the case may be, and any penalties,  interest and reasonable
         expenses arising therefrom or with respect thereto, whether or not such
         Indemnified  Taxes or Other Taxes were correctly or legally  imposed or
         asserted by the relevant  Governmental  Authority.  A certificate as to
         the amount of such payment or liability  delivered to the Borrower by a
         Lender or the L/C Issuer (with a copy to the Administrative  Agent), or
         by the Administrative  Agent on its own behalf or on behalf of a Lender
         or the L/C Issuer, shall be conclusive absent manifest error.

                  (d) Evidence of  Payments.  As soon as  practicable  after any
         payment  of  Indemnified  Taxes or Other  Taxes  by the  Borrower  to a
         Governmental   Authority,   the   Borrower   shall   deliver   to   the
         Administrative  Agent the  original  or a  certified  copy of a receipt
         issued by such Governmental  Authority  evidencing such payment, a copy
         of the return  reporting such payment or other evidence of such payment
         reasonably satisfactory to the Administrative Agent.

CREDIT AGREEMENT Page 43

<PAGE>

                  (e) Status of Lenders.  Any Foreign Lender that is entitled to
         an exemption from or reduction of withholding  tax under the law of the
         jurisdiction in which the Borrower is resident for tax purposes, or any
         treaty to which such  jurisdiction is a party, with respect to payments
         hereunder  or under  any  other  Loan  Document  shall  deliver  to the
         Borrower  (with a copy to the  Administrative  Agent),  at the  time or
         times  prescribed  by  applicable  law or  reasonably  requested by the
         Borrower or the  Administrative  Agent,  such  properly  completed  and
         executed documentation prescribed by applicable law as will permit such
         payments  to be  made  without  withholding  or at a  reduced  rate  of
         withholding.  In addition,  any Lender, if requested by the Borrower or
         the  Administrative  Agent,  shall  deliver  such  other  documentation
         prescribed by applicable law or reasonably requested by the Borrower or
         the   Administrative   Agent  as  will  enable  the   Borrower  or  the
         Administrative Agent to determine whether or not such Lender is subject
         to backup withholding or information reporting requirements.

                  Without limiting the generality of the foregoing, in the event
         that the Borrower is resident  for tax  purposes in the United  States,
         any Foreign Lender shall deliver to the Borrower and the Administrative
         Agent (in such number of copies as shall be requested by the recipient)
         on or prior to the date on which such Foreign  Lender  becomes a Lender
         under this Agreement (and from time to time thereafter upon the request
         of the Borrower or the  Administrative  Agent, but only if such Foreign
         Lender is legally  entitled to do so),  whichever  of the  following is
         applicable:

                           (i) duly completed copies of Internal Revenue Service
                  Form W-8BEN claiming eligibility for benefits of an income tax
                  treaty to which the United States is a party,

                           (ii)  duly  completed   copies  of  Internal  Revenue
                  Service Form W-8ECI,

                           (iii) in the case of a Foreign  Lender  claiming  the
                  benefits of the exemption for portfolio interest under section
                  881(c) of the Code,  (x) a certificate to the effect that such
                  Foreign  Lender  is not (A) a "bank"  within  the  meaning  of
                  section   881(c)(3)(A)   of  the  Code,   (B)  a  "10  percent
                  shareholder"  of the  Borrower  within the  meaning of section
                  881(c)(3)(B)  of  the  Code,  or  (C)  a  "controlled  foreign
                  corporation" described in section 881(c)(3)(C) of the Code and
                  (y) duly  completed  copies of Internal  Revenue  Service Form
                  W-8BEN, or

                           (iv) any other form prescribed by applicable law as a
                  basis for  claiming  exemption  from or a reduction  in United
                  States Federal  withholding  tax duly completed  together with
                  such  supplementary  documentation  as  may be  prescribed  by
                  applicable  law  to  permit  the  Borrower  to  determine  the
                  withholding or deduction required to be made.

CREDIT AGREEMENT Page 44

<PAGE>

                  (f) Treatment of Certain Refunds. If the Administrative Agent,
         any Lender or the L/C Issuer determines,  in its sole discretion,  that
         it has received a refund of any Taxes or Other Taxes as to which it has
         been  indemnified by the Borrower or with respect to which the Borrower
         has paid additional  amounts pursuant to this Section,  it shall pay to
         the  Borrower an amount equal to such refund (but only to the extent of
         indemnity  payments  made, or additional  amounts paid, by the Borrower
         under this Section with respect to the Taxes or Other Taxes giving rise
         to  such   refund),   net  of  all   out-of-pocket   expenses   of  the
         Administrative  Agent,  such Lender or the L/C Issuer,  as the case may
         be, and without  interest (other than any interest paid by the relevant
         Governmental Authority with respect to such refund),  provided that the
         Borrower,  upon the request of the Administrative Agent, such Lender or
         the L/C Issuer,  agrees to repay the amount  paid over to the  Borrower
         (plus any penalties,  interest or other charges imposed by the relevant
         Governmental Authority) to the Administrative Agent, such Lender or the
         L/C Issuer in the event the  Administrative  Agent,  such Lender or the
         L/C  Issuer is  required  to repay  such  refund  to such  Governmental
         Authority.  This  subsection  shall not be  construed  to  require  the
         Administrative  Agent,  any Lender or the L/C Issuer to make  available
         its tax returns (or any other information relating to its taxes that it
         deems confidential) to the Borrower or any other Person.

         3.02  Illegality.  If any  Lender  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, or any Governmental Authority has imposed material restrictions
on the  authority  of such Lender to purchase or sell,  or to take  deposits of,
Dollars in the London interbank  market,  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  Committed
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,  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.

         3.03 Inability to Determine  Rates. If the Required  Lenders  determine
that for any reason in connection with any request for a Eurodollar Rate Loan or
a conversion to or  continuation  thereof that (a) Dollar deposits are not being
offered to banks in the London  interbank  eurodollar  market for the applicable
amount and  Interest  Period of such  Eurodollar  Rate Loan,  (b)  adequate  and
reasonable  means do not  exist  for  determining  the  Eurodollar  Rate for any
requested  Interest Period with respect to a proposed  Eurodollar Rate Loan , or
(c) the  Eurodollar  Rate for any  requested  Interest  Period with respect to a
proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan,  the  Administrative  Agent will  promptly so
notify the Borrower and each Lender.  Thereafter,  the obligation of the Lenders
to make  or  maintain  Eurodollar  Rate  Loans  shall  be  suspended  until  the
Administrative Agent (upon the instruction of the Required Lenders) revokes such
notice. Upon receipt of such notice, the Borrower may revoke any pending request
for a Borrowing of,  conversion to or  continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for a
Committed Borrowing of Base Rate Loans in the amount specified therein.

CREDIT AGREEMENT Page 45

<PAGE>

         3.04 Increased Costs; Reserves on Eurodollar Rate Loans.

                  (a) Increased Costs Generally. If any Change in Law shall:

                           (i) impose,  modify or deem  applicable  any reserve,
                  special deposit,  compulsory loan, insurance charge or similar
                  requirement  against  assets  of,  deposits  with  or for  the
                  account  of, or credit  extended  or  participated  in by, any
                  Lender (except any reserve requirement contemplated by Section
                  3.04(e)) or the L/C Issuer;

                           (ii)  subject any Lender or the L/C Issuer to any tax
                  of any kind  whatsoever  with respect to this  Agreement,  any
                  Letter of Credit,  any  participation in a Letter of Credit or
                  any  Eurodollar  Rate Loan made by it, or change  the basis of
                  taxation  of  payments  to such  Lender  or the L/C  Issuer in
                  respect thereof  (except for Indemnified  Taxes or Other Taxes
                  covered by Section 3.01 and the  imposition  of, or any change
                  in the rate of, any Excluded Tax payable by such Lender or the
                  L/C Issuer); or

                           (iii)  impose on any  Lender or the L/C Issuer or the
                  London interbank  market any other condition,  cost or expense
                  affecting this Agreement or Eurodollar Rate Loans made by such
                  Lender or any Letter of Credit or participation therein;

         and the result of any of the foregoing shall be to increase the cost to
         such Lender of making or maintaining  any  Eurodollar  Rate Loan (or of
         maintaining  its obligation to make any such Loan),  or to increase the
         cost to such Lender or the L/C Issuer of  participating  in, issuing or
         maintaining  any Letter of Credit (or of maintaining  its obligation to
         participate  in or to issue any  Letter of  Credit),  or to reduce  the
         amount of any sum  received  or  receivable  by such  Lender or the L/C
         Issuer hereunder  (whether of principal,  interest or any other amount)
         then, upon request of such Lender or the L/C Issuer,  the Borrower will
         pay to such  Lender  or the  L/C  Issuer,  as the  case  may  be,  such
         additional  amount or amounts as will compensate such Lender or the L/C
         Issuer,  as the case may be,  for such  additional  costs  incurred  or
         reduction suffered.

                  (b)  Capital  Requirements.  If any  Lender or the L/C  Issuer
         determines  that any  Change in Law  affecting  such  Lender or the L/C
         Issuer or any Lending Office of such Lender or such Lender's or the L/C
         Issuer's holding company, if any, regarding capital requirements has or
         would have the effect of reducing  the rate of return on such  Lender's
         or the L/C Issuer's  capital or on the capital of such  Lender's or the
         L/C  Issuer's  holding  company,  if  any,  as a  consequence  of  this
         Agreement,  the  Commitments  of such  Lender or the Loans  made by, or
         participations  in  Letters  of Credit  held by,  such  Lender,  or the
         Letters of Credit issued by the L/C Issuer, to a level below that which
         such  Lender or the L/C  Issuer or such  Lender's  or the L/C  Issuer's
         holding  company could have achieved but for such Change in Law (taking
         into  consideration  such Lender's or the L/C Issuer's policies and the
         policies of such  Lender's or the L/C  Issuer's  holding  company  with
         respect to capital adequacy),  then from time to time the Borrower will
         pay to such  Lender  or the  L/C  Issuer,  as the  case  may  be,  such
         additional  amount or amounts as will compensate such Lender or the L/C
         Issuer or such  Lender's or the L/C  Issuer's  holding  company for any
         such reduction suffered.

CREDIT AGREEMENT Page 46

<PAGE>

                  (c) Certificates for Reimbursement.  A certificate of a Lender
         or the L/C Issuer  setting  forth the amount or  amounts  necessary  to
         compensate such Lender or the L/C Issuer or its holding company, as the
         case may be, as specified in subsection  (a) or (b) of this Section and
         delivered to the Borrower shall be conclusive  absent  manifest  error.
         The Borrower  shall pay such Lender or the L/C Issuer,  as the case may
         be,  the  amount  shown as due on any such  certificate  within 10 days
         after receipt thereof.

                  (d)  Delay in  Requests.  Failure  or delay on the part of any
         Lender  or the  L/C  Issuer  to  demand  compensation  pursuant  to the
         foregoing  provisions of this Section shall not  constitute a waiver of
         such  Lender's or the L/C Issuer's  right to demand such  compensation,
         provided that the Borrower shall not be required to compensate a Lender
         or the L/C Issuer pursuant to the foregoing  provisions of this Section
         for any increased costs incurred or reductions  suffered more than nine
         months  prior to the date that such  Lender or the L/C  Issuer,  as the
         case may be,  notifies the Borrower of the Change in Law giving rise to
         such  increased  costs or  reductions  and of such  Lender's or the L/C
         Issuer's intention to claim compensation  therefor (except that, if the
         Change in Law giving  rise to such  increased  costs or  reductions  is
         retroactive,  then the  nine-month  period  referred  to above shall be
         extended to include the period of retroactive effect thereof).

                  (e) Reserves on Eurodollar Rate Loans.  The Borrower shall pay
         to each  Lender,  as long as such Lender  shall be required to maintain
         reserves  with  respect  to  liabilities  or  assets  consisting  of or
         including   Eurocurrency   funds  or  deposits   (currently   known  as
         "Eurocurrency   liabilities"),   additional   interest  on  the  unpaid
         principal amount of each Eurodollar Rate Loan equal to the actual costs
         of such reserves  allocated to such Loan by such Lender (as  determined
         by such Lender in good faith, which determination shall be conclusive),
         which  shall  be due and  payable  on each  date on which  interest  is
         payable on such Loan,  provided  the  Borrower  shall have  received at
         least 10 days' prior notice (with a copy to the  Administrative  Agent)
         of such additional interest from such Lender. If a Lender fails to give
         notice  10 days  prior to the  relevant  Interest  Payment  Date,  such
         additional  interest  shall be due and payable 10 days from  receipt of
         such notice.

         3.05 Compensation for 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
         Loan  other  than a Base 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);

CREDIT AGREEMENT Page 47

<PAGE>

                  (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 Loan  other  than a Base  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 a
         request by the Borrower pursuant to Section 10.13;

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 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.

         3.06 Mitigation Obligations; Replacement of Lenders.

                  (a) Designation of a Different  Lending Office.  If any Lender
         requests  compensation  under Section 3.04, or the Borrower is required
         to pay  any  additional  amount  to  any  Lender  or  any  Governmental
         Authority for the account of any Lender pursuant to Section 3.01, or if
         any Lender gives a notice  pursuant to Section  3.02,  then such Lender
         shall use  reasonable  efforts to designate a different  Lending Office
         for funding or booking its Loans  hereunder or to assign its rights and
         obligations   hereunder  to  another  of  its   offices,   branches  or
         affiliates,  if, in the judgment of such Lender,  such  designation  or
         assignment (i) would  eliminate or reduce amounts  payable  pursuant to
         Section 3.01 or 3.04,  as the case may be, in the future,  or eliminate
         the need for the notice  pursuant to Section 3.02, as  applicable,  and
         (ii) in each case,  would not subject  such Lender to any  unreimbursed
         cost or expense  and would not  otherwise  be  disadvantageous  to such
         Lender.  The Borrower  hereby  agrees to pay all  reasonable  costs and
         expenses incurred by any Lender in connection with any such designation
         or assignment.

                  (b)   Replacement   of   Lenders.   If  any  Lender   requests
         compensation  under Section 3.04, or if the Borrower is required to pay
         any additional  amount to any Lender or any Governmental  Authority for
         the account of any Lender  pursuant to Section  3.01,  the Borrower may
         replace such Lender in accordance with Section 10.13.

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

CREDIT AGREEMENT Page 48

<PAGE>

                                   ARTICLE IV

                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
                    -----------------------------------------

         4.01 Conditions of Initial Credit Extension.  The obligation of the L/C
Issuer and each Lender to make its initial Credit Extension hereunder is subject
to satisfaction of the following conditions precedent:

                  (a) The Administrative Agent's receipt of the following,  each
         of  which  shall be  originals  or  telecopies  (followed  promptly  by
         originals)  unless  otherwise  specified,  each properly  executed by a
         Responsible  Officer of the signing Loan Party,  each dated the Closing
         Date (or, in the case of  certificates  of  governmental  officials,  a
         recent  date before the  Closing  Date) and each in form and  substance
         satisfactory to the Administrative Agent and each of the Lenders:

                           (i)   executed   counterparts   of  this   Agreement,
                  sufficient in number for  distribution  to the  Administrative
                  Agent, each Lender and the Borrower;

                           (ii) a Note executed by the Borrower in favor of each
                  Lender requesting a Note;

                           (iii)  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;

                           (iv)  such  documents  and   certifications   as  the
                  Administrative  Agent may reasonably  require to evidence that
                  each Loan Party is duly organized or formed, and that the each
                  Loan Party is validly existing, in good standing and qualified
                  to  engage  in  business  in  each   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;

                           (v) a  favorable  opinion  of  Porter &  Hedges  LLP,
                  counsel to the Loan Parties,  addressed to the  Administrative
                  Agent and each Lender,  as to the matters set forth in Exhibit
                  F and such other matters  concerning  the Loan Parties and the
                  Loan Documents as the Required Lenders may reasonably request;

                           (vi) a certificate  of a Responsible  Officer of each
                  Loan  Party  either  (A)  attaching  copies  of all  consents,
                  licenses  and  approvals   required  in  connection  with  the
                  execution, delivery and performance by such Loan Party and the
                  validity  against  such Loan  Party of the Loan  Documents  to
                  which it is a party, and such consents, licenses and approvals
                  shall be in full force and effect, or (B) stating that no such
                  consents, licenses or approvals are so required;

CREDIT AGREEMENT Page 49

<PAGE>

                           (vii) a certificate  signed by a Responsible  Officer
                  of the Borrower  certifying (A) that the conditions  specified
                  in Sections 4.02(a) and (b) have been satisfied,  and (B) that
                  there has been no event or circumstance  since the date of the
                  Audited  Financial   Statements  that  has  had  or  could  be
                  reasonably  expected to have,  either  individually  or in the
                  aggregate, a Material Adverse Effect; and (C) a calculation of
                  the  Consolidated  Leverage  Ratio  as of the  last day of the
                  fiscal  quarter of the Borrower most  recently  ended prior to
                  the Closing Date;

                           (viii) a duly completed Compliance  Certificate as of
                  the last day of the fiscal  quarter of the  Borrower  ended on
                  June  30,  2007,  signed  by  a  Responsible  Officer  of  the
                  Borrower;

                           (ix)  evidence  that  all  insurance  required  to be
                  maintained  pursuant to the Loan  Documents  has been obtained
                  and is in effect;

                           (x) such other assurances,  certificates,  documents,
                  consents  or  opinions as the  Administrative  Agent,  the L/C
                  Issuer,   the  Swing  Line  Lender  or  the  Required  Lenders
                  reasonably may require.

                  (b) Any fees  required  to be paid on or  before  the  Closing
         Date,  including those fees included in the Fee Letter, shall have been
         paid.

                  (c) Unless waived by the  Administrative  Agent,  the Borrower
         shall have paid all fees,  charges and  disbursements of counsel to the
         Administrative  Agent  (directly  to such  counsel if  requested by the
         Administrative Agent) to the extent invoiced prior to or on the Closing
         Date,  plus  such  additional   amounts  of  such  fees,   charges  and
         disbursements as shall constitute its reasonable estimate of such fees,
         charges and disbursements  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).

Without  limiting the  generality  of the  provisions  of the last  paragraph of
Section  9.03,  for  purposes  of  determining  compliance  with the  conditions
specified in this Section 4.01, 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.

         4.02 Conditions to all Credit Extensions. The obligation of each Lender
to honor any Request for Credit  Extension  (other than a Committed  Loan Notice
requesting  only a  conversion  of  Committed  Loans  to the  other  Type,  or a
continuation  of Eurodollar  Rate Loans) is subject to the following  conditions
precedent:

                  (a) The  representations  and  warranties  of the Borrower and
         each  other  Loan  Party  contained  in  Article  V or any  other  Loan
         Document,  or which are contained in any document furnished at any time
         under or in connection herewith or therewith, shall be true and correct
         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  4.02,  the
         representations and warranties  contained in subsections (a) and (b) of
         Section  5.05  shall be deemed to refer to the most  recent  statements
         furnished  pursuant  to clauses (a) and (b),  respectively,  of Section
         6.01.

CREDIT AGREEMENT Page 50

<PAGE>

                  (b) No Default shall exist, or would result from such proposed
         Credit Extension or from the application of the proceeds thereof.

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

         Each Request for Credit  Extension  (other than a Committed Loan Notice
requesting  only a  conversion  of  Committed  Loans  to  the  other  Type  or a
continuation of Eurodollar Rate Loans) submitted by the Borrower shall be deemed
to be a  representation  and warranty that the conditions  specified in Sections
4.02(a)  and (b) have  been  satisfied  on and as of the date of the  applicable
Credit Extension.

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

         The Borrower  represents and warrants to the  Administrative  Agent and
the Lenders that:

         5.01  Existence,  Qualification  and  Power.  Each Loan  Party and each
Subsidiary  thereof (a) is duly  organized or formed,  validly  existing and, as
applicable,  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 or lease 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, as applicable, 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.

         5.02  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 and will 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,  or require any
payment to be made under (i) any Contractual  Obligation to which such Person is
a party or affecting  such Person or the properties of such Person or any of its
Subsidiaries 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.

         5.03 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.

CREDIT AGREEMENT Page 51

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         5.04  Binding  Effect.  This  Agreement  has been,  and each other Loan
Document, when delivered hereunder,  will have been, duly executed and delivered
by each Loan Party that is party thereto. This Agreement  constitutes,  and each
other Loan  Document  when so  delivered  will  constitute,  a legal,  valid and
binding obligation of such Loan Party,  enforceable against each Loan Party that
is party thereto in accordance with its terms.

         5.05 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 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,  material
         commitments and Indebtedness.

                  (b) The unaudited  consolidated balance sheets of the Borrower
         and its Subsidiaries dated June 30, 2007, and the related  consolidated
         statements of income or operations, shareholders' equity and cash flows
         for the  fiscal  quarter  ended  on that  date  (i)  were  prepared  in
         accordance with GAAP consistently applied throughout the period covered
         thereby,  except as otherwise expressly noted therein,  and (ii) fairly
         present 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. Schedule
         5.05 sets forth all  Indebtedness of the Borrower and its  consolidated
         Subsidiaries  incurred  since  the date of the  unaudited  consolidated
         balance sheets referred to in this clause (b).

                  (c) Since the date of the Audited Financial Statements,  there
         has  been no  event  or  circumstance,  either  individually  or in the
         aggregate,  that  has had or could  reasonably  be  expected  to have a
         Material Adverse Effect.

                  (d) The consolidated  statements of income of the Borrower and
         its Subsidiaries delivered pursuant to Section 6.01(c) were prepared in
         good  faith  on the  basis of the  assumptions  stated  therein,  which
         assumptions  were fair in light of the conditions  existing at the time
         of  delivery  of  such  forecasts,  and  represented,  at the  time  of
         delivery,   the  Borrower's  best  estimate  of  its  future  financial
         condition and performance.

         5.06 Litigation.  There are no actions, suits,  proceedings,  claims or
disputes  pending or, to the  knowledge of the  Borrower  after due and diligent
investigation,  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) except as specifically  disclosed in
Schedule 5.06, either individually or in the aggregate, if determined adversely,
could reasonably be expected to have a Material Adverse Effect.

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<PAGE>

         5.07 No Default.  Neither any Loan Party nor any Subsidiary  thereof is
in default  under or with  respect to any  Contractual  Obligation  that  could,
either  individually  or in the  aggregate,  reasonably  be  expected  to have a
Material  Adverse  Effect.  No Default has occurred and is  continuing  or would
result from the consummation of the transactions  contemplated by this Agreement
or any other Loan Document.

         5.08  Ownership  of  Property;  Liens.  Each of the  Borrower  and each
Subsidiary  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 Liens permitted by Section 7.01.

         5.09  Environmental  Compliance.  The  Borrower  and  its  Subsidiaries
conduct in the  ordinary  course of  business a review of the effect of existing
Environmental Laws and claims alleging potential liability or responsibility for
violation of any  Environmental Law on their respective  businesses,  operations
and  properties,  and as a result thereof the Borrower has reasonably  concluded
that, except as specifically disclosed in Schedule 5.09, such Environmental Laws
and claims could not,  individually or in the aggregate,  reasonably be expected
to have a Material Adverse Effect.

         5.10 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.

         5.11 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 those which 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.  Neither any Loan Party nor any Subsidiary  thereof is
party to any tax sharing agreement.

         5.12 ERISA Compliance.

                  (a) Each Plan is in compliance  in all material  respects with
         the applicable provisions of ERISA, the Code and other Federal or state
         Laws. Each Plan that is intended to qualify under Section 401(a) of the
         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 best  knowledge  of the  Borrower,
         nothing has occurred  which would  prevent,  or cause the loss of, such
         qualification.  The  Borrower  and each ERISA  Affiliate  have made all
         required contributions to each Plan subject to Section 412 of the Code,
         and  no  application  for a  funding  waiver  or an  extension  of  any
         amortization  period  pursuant to Section 412 of the Code has been made
         with respect to any Plan.

CREDIT AGREEMENT Page 53

<PAGE>

                  (b) There are no  pending  or,  to the best  knowledge  of the
         Borrower,  threatened  claims,  actions or  lawsuits,  or action by any
         Governmental Authority,  with respect to any Plan that could 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) neither the Borrower 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 than premiums due and not delinquent
         under  Section 4007 of ERISA);  (iv) neither the Borrower 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 Section
         4201 or 4243 of ERISA with  respect to a  Multiemployer  Plan;  and (v)
         neither  the  Borrower  nor  any  ERISA  Affiliate  has  engaged  in  a
         transaction that could be subject to Section 4069 or 4212(c) of ERISA.

         5.13 Subsidiaries;  Equity Interests. As of the date of this Agreement,
the Borrower has no Subsidiaries other than those specifically disclosed in Part
(a) of  Schedule  5.13,  and all of the  outstanding  Equity  Interests  in such
Subsidiaries have been validly issued, are fully paid and nonassessable and are,
if owned by a Loan Party, owned by a Loan Party free and clear of all Liens. The
Borrower has no equity investments in any other corporation or entity other than
those  specifically  disclosed  in  Part  (b)  of  Schedule  5.13.  All  of  the
outstanding Equity Interests in the Borrower have been validly issued.

         5.14 Margin Regulations; Investment 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.

                  (b) None of the Borrower, any Person Controlling the Borrower,
         or any  Subsidiary is or is required to be registered as an "investment
         company" under the Investment Company Act of 1940.

         5.15 Disclosure. The Borrower 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  and the  negotiation  of this  Agreement  or
delivered  hereunder or under any other Loan Document (in each case, 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 Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

CREDIT AGREEMENT Page 54

<PAGE>

         5.16 Compliance with Laws. Each Loan Party and each Subsidiary  thereof
is in compliance in all material  respects 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 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,  either  individually  or in the  aggregate,  could not reasonably be
expected to have a Material Adverse Effect.

         5.17 Taxpayer  Identification  Number.  The Borrower's true and correct
U.S. taxpayer identification number is set forth on Schedule 10.02.

         5.18  Intellectual  Property;  Licenses,  Etc.  The  Borrower  and  its
Subsidiaries  own, or possess the 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,  without
conflict  with the  rights of any other  Person.  To the best  knowledge  of the
Borrower,  no slogan or other  advertising  device,  product,  process,  method,
substance,  part or other  material  now  employed,  or now  contemplated  to be
employed,  by the Borrower or any  Subsidiary  infringes upon any rights held by
any other Person. Except as specifically disclosed in Schedule 5.18, no claim or
litigation  regarding any of the foregoing is pending or, to the best  knowledge
of the Borrower,  threatened,  which,  either  individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

                                   ARTICLE VI

                              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 Borrower shall,  and shall (except in the
case of the covenants  set forth in Sections  6.01,  6.02,  and 6.03) cause each
Subsidiary to:

CREDIT AGREEMENT Page 55

<PAGE>

         6.01 Financial Statements. Deliver to the Administrative Agent and each
Lender,  in form and detail  satisfactory  to the  Administrative  Agent and the
Required Lenders:

                  (a) as soon as  available,  but in any  event  within  90 days
         after the end of each fiscal year of the Borrower  (commencing with the
         fiscal year ended December 31, 2007),  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,
         shareholders' 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,
         such consolidated  statements to be audited and accompanied by a report
         and opinion of an independent certified public accountant of nationally
         recognized  standing  reasonably  acceptable  to the Required  Lenders,
         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; and

                  (b) as soon as  available,  but in any  event  within  45 days
         after the end of each of the first three fiscal quarters of each fiscal
         year  of  the  Borrower  (commencing  with  the  fiscal  quarter  ended
         September 30, 2007), a  consolidated  balance sheet of the Borrower and
         its Subsidiaries as at the end of such fiscal quarter,  and the related
         consolidated  statements of income or operations,  shareholders' equity
         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, such consolidated  statements to
         be certified by the chief executive  officer,  chief financial officer,
         treasurer  or  controller  of the  Borrower  as fairly  presenting  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 such  consolidating  statements to be certified by the
         chief  executive  officer,   chief  financial  officer,   treasurer  or
         controller  of the  Borrower  to the effect  that such  statements  are
         fairly stated in all material  respects when  considered in relation to
         the  consolidated   financial   statements  of  the  Borrower  and  its
         Subsidiaries; and

                  (c) as soon as  available,  but in any  event  within  30 days
         after the end of each fiscal year of the Borrower,  forecasts  prepared
         by   management  of  the  Borrower,   in  form   satisfactory   to  the
         Administrative  Agent and the Required Lenders, of consolidated balance
         sheets and  statements  of income or  operations  and cash flows of the
         Borrower and its  Subsidiaries on a quarterly basis for the immediately
         following  fiscal year (including the fiscal year in which the Maturity
         Date occurs).

         As to any  information  contained  in materials  furnished  pursuant to
Section 6.02(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 clauses (a) and (b) above at the times specified therein.

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<PAGE>

         6.02  Certificates;  Other  Information.  Deliver to the Administrative
Agent and each Lender,  in form and detail  satisfactory  to the  Administrative
Agent and the Required Lenders:

                  (a) concurrently with the delivery of the financial statements
         referred to in Sections  6.01(a) and (b), a duly  completed  Compliance
         Certificate  signed by the chief  executive  officer,  chief  financial
         officer, treasurer or controller of the Borrower;

                  (b) promptly after any request by the Administrative  Agent or
         any Lender, copies of any detailed audit reports, management letters or
         recommendations  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;

                  (c)  promptly  after  the same are  available,  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,
         and not otherwise required to be delivered to the Administrative  Agent
         pursuant hereto;

                  (d) promptly, and in any event within five Business Days after
         receipt thereof by any Loan Party or any Subsidiary thereof,  copies of
         each  notice  or  other  correspondence   received  from  the  SEC  (or
         comparable agency in any applicable non-U.S.  jurisdiction)  concerning
         any  investigation  or possible  investigation or other inquiry by such
         agency  regarding  financial or other  operational  results of any Loan
         Party or any Subsidiary thereof; and

                  (e)  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 6.01(a) or (b)
or Section  6.02(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 10.02; or (ii)
on which such  documents are posted on the  Borrower's  behalf on an Internet or
intranet 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 the  Administrative  Agent and each Lender (by
telecopier or electronic  mail) 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 6.02(a) to the Administrative Agent.
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.

CREDIT AGREEMENT Page 57

<PAGE>

         The Borrower hereby acknowledges that (a) the Administrative  Agent may
at its option make available to the Lenders and the L/C Issuer  materials and/or
information  provided by or on behalf of the Borrower  hereunder  (collectively,
"Borrower Materials") by posting the Borrower Materials on IntraLinks or another
similar electronic system (the "Platform") and (b) certain of the Lenders (each,
a  "Public  Lender")  may have  personnel  who do not wish to  receive  material
non-public  information  with respect to the Borrower or its Affiliates,  or the
respective  securities  of any of the  foregoing,  and  who  may be  engaged  in
investment  and other  market-related  activities  with respect to such Persons'
securities.  The Borrower hereby agrees that (w) all Borrower Materials that are
to be made available to Public Lenders shall be clearly and conspicuously marked
"PUBLIC"  which,  at a minimum,  shall mean that the word "PUBLIC"  shall appear
prominently  on the  first  page  thereof;  (x) by  marking  Borrower  Materials
"PUBLIC," the Borrower  shall be deemed to have  authorized  the  Administrative
Agent,  the L/C Issuer and the Lenders to treat such  Borrower  Materials as not
containing any material  non-public  information with respect to the Borrower or
its securities for purposes of United States Federal and state  securities  laws
(provided,  however,  that to the  extent  such  Borrower  Materials  constitute
Information,  they  shall be treated  as set forth in  Section  10.07);  (y) all
Borrower  Materials marked "PUBLIC" are permitted to be made available through a
portion of the Platform designated "Public Investor;" and (z) the Administrative
Agent  shall be  entitled to treat any  Borrower  Materials  that are not marked
"PUBLIC" as being  suitable  only for posting on a portion of the  Platform  not
designated "Public Investor."

         6.03 Notices. Promptly notify the Administrative Agent and each Lender:

                  (a) of the occurrence of any Default;

                  (b) 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) of the occurrence of any ERISA Event; and

                  (d) of any material change in accounting policies or financial
         reporting  practices by the Borrower or any  Subsidiary,  including any
         determination by the Borrower referred to in Section 2.10(b).

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<PAGE>

         Each notice  pursuant to this  Section 6.03 shall be  accompanied  by a
statement of a Responsible  Officer of the Borrower setting forth details of the
occurrence  referred to therein and stating  what action the  Borrower has taken
and  proposes to take with  respect  thereto.  Each  notice  pursuant to Section
6.03(a)  shall  describe  with  particularity  any  and all  provisions  of this
Agreement and any other Loan Document that have been breached.

         6.04 Payment of Obligations. Pay and discharge as the same shall become
due and payable, all its material  obligations and liabilities,  unless the same
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, including (a) all tax liabilities,  assessments
and governmental  charges or levies upon it or its properties or assets; (b) all
lawful  claims which,  if unpaid,  would by law become a Lien upon its property;
and (c) all  Indebtedness,  as and  when due and  payable,  but  subject  to any
subordination  provisions  contained in any  instrument or agreement  evidencing
such Indebtedness. Notwithstanding anything contained herein, nothing in Section
6.04 shall permit the Borrower not to pay the Obligations when due.

         6.05 Preservation of Existence,  Etc. (a) Preserve,  renew and maintain
in full force and effect its legal existence and good standing under the Laws of
the  jurisdiction  of its  organization  except in a  transaction  permitted  by
Section  7.04 or 7.05;  (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 failure to do so could
not reasonably be expected to have a Material  Adverse Effect;  and (c) preserve
or renew all of its  registered  patents,  trademarks,  trade  names and service
marks,  the  non-preservation  of which could  reasonably  be expected to have a
Material Adverse Effect.

         6.06 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;
and (b) make  all  necessary  repairs  thereto  and  renewals  and  replacements
thereof,  except  where the failure to take the actions  described  under either
clause (a) or (b) could not  reasonably  be expected to have a Material  Adverse
Effect.

         6.07  Maintenance  of Insurance.  Maintain with  financially  sound and
reputable  insurance  companies not  Affiliates of the Borrower,  insurance with
respect  to its  properties  and  business  against  loss or damage of the kinds
customarily  insured against by Persons engaged in the same or similar business,
of such  types and in such  amounts as are  customarily  carried  under  similar
circumstances  by such other  Persons and  providing  for not less than 30 days'
prior notice to the Administrative  Agent of termination,  lapse or cancellation
of such insurance.

         6.08  Compliance  with Laws.  Comply in all material  respects with the
requirements  of all  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.

         6.09  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;  and (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.

CREDIT AGREEMENT Page 59

<PAGE>

         6.10  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,  all at the expense of the  Borrower and 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, 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.

         6.11 Use of  Proceeds.  Use the proceeds of the Credit  Extensions  for
working capital, making acquisitions permitted hereunder,  and general corporate
purposes not in contravention of any Law or of any Loan Document.

                                  ARTICLE VII

                               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, the Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly:

         7.01 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
         7.01 and any  renewals or  extensions  thereof,  provided  that (i) the
         property covered thereby is not changed in any material  respect,  (ii)
         the amount  secured or  benefited  thereby is not  increased  except as
         contemplated by Section 7.03(b),  and (iii) any renewal or extension of
         the  obligations  secured or benefited  thereby is permitted by Section
         7.03(b);

                  (c) Liens  for taxes 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 GAAP;

                  (d)  carriers',  warehousemen's,   mechanics',  materialmen's,
         repairmen's  or other like  Liens  arising  in the  ordinary  course of
         business  which  are not  overdue  for a period of more than 30 days 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;

CREDIT AGREEMENT Page 60

<PAGE>

                  (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 and appeal bonds,  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 not
         constituting an Event of Default under Section 8.01(h); and

                  (i)  Liens  securing  Indebtedness   permitted  under  Section
         7.03(e);  provided  that (i) such Liens do not at any time encumber any
         property other than the property financed by such Indebtedness and (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.

         7.02 Investments. Make any Investments, except:

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

                  (b)  advances to  officers,  directors  and  employees  of the
         Borrower and Subsidiaries in an aggregate amount not to exceed $250,000
         at any time  outstanding,  for travel,  entertainment,  relocation  and
         analogous ordinary business purposes;

                  (c)  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;

                  (d) Guarantees permitted by Section 7.03;

                  (e)  the  purchase  or  other  acquisition,   in  a  friendly,
         non-hostile   transaction,   of  Equity  Interests  in  (not  including
         purchases of Equity  Interests  permitted in 7.03(g) below),  or all or
         substantially  all of the  property  of,  any  Person  that,  upon  the
         consummation thereof, will be a majority-owned directly by the Borrower
         or one or more of its wholly-owned  Subsidiaries (including as a result
         of an acquisition  or  consolidation);  provided that,  with respect to
         each  purchase  or other  acquisition  made  pursuant  to this  Section
         7.03(e):

CREDIT AGREEMENT Page 61

<PAGE>

                           (i) the lines of business of the Person to be (or the
                  property of which is to be) so purchased or otherwise acquired
                  shall not cause the  Borrower  to  breach  the  provisions  of
                  Section 7.07;

                           (ii) such purchase or other acquisition shall not, to
                  the best  knowledge  of  Borrower  after  its  reasonable  due
                  diligence  consistent  for an  acquisition  of  similar  size,
                  include  or result in any  contingent  liabilities  that could
                  reasonably be expected to cause a Material Adverse Effect;

                           (iii)  the  total  cash  and  noncash   consideration
                  (including  the fair  market  value of all  Equity  Interests,
                  other  than  Equity  Interests  of  the  Borrower  or  of  the
                  Subsidiary  of the  Borrower  which  makes  such  purchase  or
                  acquisition, issued or transferred to the sellers thereof, the
                  aggregate  amounts  paid  or  to  be  paid  under  noncompete,
                  consulting,  other  affiliated  agreements (to the extent such
                  consideration  does not  exceed the fair  market  value of the
                  goods or services provided under such agreements, as agreed to
                  by  the   Administrative   Agent),   all  earnouts  and  other
                  contingent payment obligations,  with the sellers thereof, and
                  all   assumptions   of  Funded   Indebtedness   in  connection
                  therewith)  paid  by or on  behalf  of the  Borrower  and  its
                  Subsidiaries for any such purchase or other  acquisition shall
                  not exceed (A) $10,000,000 for any single  acquisition and (B)
                  when   aggregated   with  (x)  such  total  cash  and  noncash
                  consideration (but excluding Equity Interests of the Borrower)
                  paid by or on behalf of the Borrower and its  Subsidiaries for
                  all  other  purchases  and  other  acquisitions  made  by  the
                  Borrower and its Subsidiaries pursuant to this Section 7.02(e)
                  and (y) the total  cash and  noncash  consideration  paid with
                  respect to purchase of Equity  Interests  permitted in Section
                  7.02(f),  shall not exceed $25,000,000 in the aggregate in any
                  fiscal year (not  including any cash or noncash  consideration
                  paid with respect to the Star Acquisition);

                           (iv) (A)  immediately  before and  immediately  after
                  giving  pro  forma  effect  to  any  such  purchase  or  other
                  acquisition,  no Default shall have occurred and be continuing
                  and (B)  immediately  after giving  effect to such purchase or
                  other acquisition,  the Borrower and its Subsidiaries shall be
                  in pro forma compliance with all of the covenants set forth in
                  Section 7.11, such compliance to be determined on the basis of
                  the  financial  information  most  recently  delivered  to the
                  Administrative  Agent  and the  Lenders  pursuant  to  Section
                  6.01(a) or (b) as though such  purchase  or other  acquisition
                  had been  consummated as of the first day of the fiscal period
                  covered thereby;

                           (v)  the  Borrower   shall  have   delivered  to  the
                  Administrative  Agent and each Lender,  at least five Business
                  Days  prior to the date on which  any such  purchase  or other
                  acquisition  is  to  be   consummated,   a  certificate  of  a
                  Responsible   Officer,   in  form  and  substance   reasonably
                  satisfactory to the Administrative Agent,  certifying that all
                  of the  requirements  set  forth  in  clause  (iv)  have  been
                  satisfied or will be satisfied on or prior to the consummation
                  of such purchase or other acquisition; and

CREDIT AGREEMENT Page 62

<PAGE>

                           (vi) for all  acquisitions  for which  the  aggregate
                  cash and noncash  consideration  is greater  than  $2,500,000,
                  promptly  after the  execution  thereof,  copies of letters of
                  intent  and  purchase  and sale  agreements  relating  to such
                  purchase or other acquisition,  and promptly, and in any event
                  not less than  five  days  prior to the date on which any such
                  purchase or other acquisition is to be consummated,  copies of
                  the financial  statements and any other  information as may be
                  reasonably requested by the Administrative Agent regarding the
                  Person or property to be so purchased or otherwise acquired.

                  (f) the  purchase of all or a portion of the Equity  Interests
         in Subsidiaries;  provided that, with respect to each purchase or other
         acquisition made pursuant to this Section 7.03(f):

                           (i) the lines of business of the Person to be (or the
                  property of which is to be) so purchased or otherwise acquired
                  shall not cause the  Borrower  to  breach  the  provisions  of
                  Section 7.07;

                           (ii) such purchase or other acquisition shall not, to
                  the best  knowledge  of  Borrower  after  its  reasonable  due
                  diligence  consistent  for an  acquisition  of  similar  size,
                  include  or result in any  contingent  liabilities  that could
                  reasonably be expected to cause a Material Adverse Effect;

                           (iii)  the  total  cash  and  noncash   consideration
                  (including  the fair  market  value of all  Equity  Interests,
                  other  than  Equity  Interests  of  the  Borrower,  issued  or
                  transferred to the sellers thereof, the aggregate amounts paid
                  or to be paid under noncompete,  consulting,  other affiliated
                  agreements (to the extent such  consideration  does not exceed
                  the fair market value of the goods or services  provided under
                  such agreements,  as agreed to by the  Administrative  Agent),
                  all earnouts and other contingent payment obligations with the
                  sellers thereof, and all assumptions of Funded Indebtedness in
                  connection therewith) paid by or on behalf of the Borrower and
                  its Subsidiaries  for any such purchase or other  acquisition,
                  (A) $10,000,000  for any single  purchase of Equity  Interests
                  and (B) when  aggregated  (x) with such total cash and noncash
                  consideration (but excluding Equity Interests of the Borrower)
                  paid by or on behalf of the Borrower and its  Subsidiaries for
                  all  other  purchases  and  other  acquisitions  made  by  the
                  Borrower and its Subsidiaries pursuant to this Section 7.02(f)
                  and (y) shall not exceed,  when  included  with the total cash
                  and noncash  consideration  paid with respect to  acquisitions
                  permitted in Section 7.02(e),  $25,000,000 in the aggregate in
                  any fiscal year  excluding  any cash or noncash  consideration
                  paid with respect to the Star Acquisition;

                           (iv) (A)  immediately  before and  immediately  after
                  giving  pro  forma  effect  to  any  such  purchase  or  other
                  acquisition,  no Default shall have occurred and be continuing
                  and (B)  immediately  after giving  effect to such purchase or
                  other acquisition,  the Borrower and its Subsidiaries shall be
                  in pro forma compliance with all of the covenants set forth in
                  Section 7.11, such compliance to be determined on the basis of
                  the  financial  information  most  recently  delivered  to the
                  Administrative  Agent  and the  Lenders  pursuant  to  Section
                  6.01(a) or (b) as though such  purchase  or other  acquisition
                  had been  consummated as of the first day of the fiscal period
                  covered thereby;

CREDIT AGREEMENT Page 63

<PAGE>

                           (v)  the  Borrower   shall  have   delivered  to  the
                  Administrative  Agent and each Lender,  at least five Business
                  Days  prior to the date on which  any such  purchase  or other
                  acquisition  is  to  be   consummated,   a  certificate  of  a
                  Responsible   Officer,   in  form  and  substance   reasonably
                  satisfactory to the Administrative Agent,  certifying that all
                  of the  requirements  set  forth  in  clause  (iv)  have  been
                  satisfied or will be satisfied on or prior to the consummation
                  of such purchase or other acquisition; and

                           (vi) for all purchases of Equity  Interests for which
                  the aggregate cash and noncash  consideration  is greater than
                  $2,500,000,  promptly after the execution  thereof,  copies of
                  letters of intent and purchase and sale agreements relating to
                  such purchase or other acquisition,  and promptly,  and in any
                  event not less  than five days  prior to the date on which any
                  such  purchase  or  other  acquisition  is to be  consummated,
                  copies of the financial  statements and any other  information
                  as may be  reasonably  requested by the  Administrative  Agent
                  regarding  the  Person  or  property  to  be so  purchased  or
                  otherwise acquired.

                  (g) the Star Acquisition;

                  (h)  intercompany  loans or advances by Borrower to any of its
         Subsidiaries  or any entities or facilities  managed by Borrower or any
         of  its  Subsidiaries  under  management  contracts  or  other  similar
         agreements  and  intercompany  loans  and  advances  from  any of  such
         Subsidiaries  to Borrower or any other  Subsidiaries of the Borrower or
         any managed  entities or facilities in the ordinary  course of business
         and consistent with historical business practices,  provided,  however,
         loans  and  advances  to  managed  entities  or  facilities   permitted
         hereunder  shall  not be  greater  than  $2,000,000  in  the  aggregate
         outstanding at any one time; and

                  (i)   capital   contributions   by  Borrower  to  any  of  its
         Subsidiaries or purchases or  acquisitions of any new Equity  Interests
         in any such Subsidiaries.

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

                  (a) Indebtedness under the Loan Documents;

                  (b) Indebtedness  outstanding on the date hereof and listed on
         Schedule 7.03 and any refinancings,  refundings, renewals or extensions
         thereof;  provided  that (i) the  amount  of such  Indebtedness  is not
         increased  at the  time  of such  refinancing,  refunding,  renewal  or
         extension  except by an amount equal to a  reasonable  premium or other
         reasonable amount paid, and fees and expenses reasonably  incurred,  in
         connection with such refinancing and by an amount equal to any existing
         commitments  unutilized  thereunder  and (ii)  the  terms  relating  to
         principal  amount,  amortization,  maturity,  collateral  (if  any) and
         subordination  (if any), and other material terms taken as a whole,  of
         any such refinancing,  refunding,  renewing or extending  Indebtedness,
         and of any  agreement  entered  into and of any  instrument  issued  in
         connection therewith,  are no less favorable in any material respect to
         the Loan  Parties or the  Lenders  than the terms of any  agreement  or
         instrument  governing  the  Indebtedness  being  refinanced,  refunded,
         renewed  or  extended  and the  interest  rate  applicable  to any such
         refinancing,  refunding,  renewing or extending  Indebtedness  does not
         exceed the then applicable market interest rate;

CREDIT AGREEMENT Page 64

<PAGE>

                  (c) Guarantees of the Borrower or any Subsidiary in respect of
         Indebtedness  otherwise  permitted  hereunder  of the  Borrower  or any
         Subsidiary;

                  (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) Indebtedness in respect of capital leases, Synthetic Lease
         Obligations and purchase money  obligations for fixed or capital assets
         within the limitations set forth in Section 7.01(i); provided, however,
         that the  aggregate  amount  of all such  Indebtedness  at any one time
         outstanding shall not exceed $500,000;

                  (f) unsecured  Indebtedness in an aggregate  principal  amount
         not to exceed $2,000,000 at any time outstanding;

                  (g) Consolidated  Funded  Indebtedness  assumed or incurred in
         the form of a seller's note or similar agreement in connection with any
         Investment permitted under Section 7.02(e);

                  (h) Consolidated  Funded  Indebtedness  assumed or incurred in
         the form of a seller's note or similar agreement in connection with any
         Investment permitted under Section 7.02(f);

                  (i)  Loans  and  advances  permitted  to be made  pursuant  to
         Section 7.02(h); and

                  (j)  Indebtedness   existing  from  Borrower's  obligation  to
         repurchase  Equity  Interests  in  the  future  of  another  Person  in
         accordance  with the terms of any agreement of limited  partnership  or
         similar agreement.

         7.04 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,  except  that,  so long as no
Default exists or would result therefrom:

CREDIT AGREEMENT Page 65

<PAGE>

                  (a) any Subsidiary  may merge with (i) the Borrower,  provided
         that the Borrower shall be the continuing or surviving  Person, or (ii)
         any one or more other Subsidiaries; and

                  (b) any Subsidiary may Dispose of all or substantially  all of
         its assets (upon voluntary liquidation or otherwise) to the Borrower or
         to another Subsidiary.

         7.05 Dispositions.  Make any Disposition or enter into any agreement to
make any Disposition, except:

                  (a) Dispositions of obsolete or worn out property, whether now
         owned or hereafter acquired, in the ordinary course of business;

                  (b)  Dispositions  of  inventory  in the  ordinary  course  of
         business;

                  (c)  Dispositions  of equipment or real property to the extent
         that (i) such  property is  exchanged  for credit  against the purchase
         price of similar  replacement  property  or (ii) the  proceeds  of such
         Disposition  are reasonably  promptly  applied to the purchase price of
         such replacement property;

                  (d) Dispositions of property by any Subsidiary to the Borrower
         or to a  wholly-owned  Subsidiary;  provided that if the  transferor of
         such property is a Guarantor, the transferee thereof must either be the
         Borrower or a Guarantor;

                  (e) Dispositions permitted by Section 7.04;

                  (f)  Dispositions  of  operations  or  clinics  to  individual
         therapists consistent with historical practice;

                  (g) Dispositions or closures of underperforming  operations or
         clinics; and

                  (h)  Dispositions  or closures of  operations  or clinics in a
         particular  market  segment  or region in  accordance  with  Borrower's
         business plan.

provided,  however,  that any  Disposition  pursuant  to clauses (a) through (h)
shall be for fair market value;  provided,  however,  further,  Dispositions and
closures  permitted  under  clauses  (f),  (g) and (h) shall be  limited in each
fiscal year to Dispositions and closures of operations and clinics  representing
less than five percent (5.00%) of Borrower's  total assets reflected on the last
financial statements provided pursuant to Section 6.01(a).

         7.06 Restricted Payments.  Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation  (contingent or otherwise) to do so,
except that,  so long as no Default shall have occurred and be continuing at the
time of any action described below or would result therefrom:

                  (a)  each  Subsidiary  may  make  Restricted  Payments  to the
         Borrower,  the  Guarantors  and any  other  Person  that owns an Equity
         Interest in such  Subsidiary,  ratably  according  to their  respective
         holdings  of the type of  Equity  Interest  in  respect  of which  such
         Restricted Payment is being made;

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<PAGE>

                  (b) the  Borrower  and each  Subsidiary  may  declare and make
         dividend payments or other  distributions  payable solely in the common
         stock or other common Equity Interests of such Person; and

                  (c) the Borrower and each  Subsidiary may purchase,  redeem or
         otherwise  acquire  Equity  Interests  issued  by it with the  proceeds
         received from the  substantially  concurrent issue of new shares of its
         common stock or other common Equity Interests.

         7.07  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 date hereof  (including  physical  therapy,
occupational therapy, and osteoarthritis services) or any business substantially
related or incidental thereto.

         7.08  Transactions  with Affiliates.  Enter into any transaction of any
kind with any Affiliate of the Borrower,  whether or not in the ordinary  course
of business,  other than on fair and reasonable terms substantially as favorable
to the Borrower or such  Subsidiary  as would be  obtainable  by the Borrower or
such  Subsidiary  at the time in a comparable  arm's length  transaction  with a
Person other than an Affiliate,  provided that the foregoing  restriction  shall
not  apply  to  transactions  between  or  among  the  Borrower  and  any of its
Subsidiaries  and any entities or  facilities  managed by the Borrower or any of
its  Subsidiaries,  for which the terms of such  transactions  shall be fair and
reasonable.

         7.09  Burdensome  Agreements.  Enter  into any  Contractual  Obligation
(other  than this  Agreement  or any other  Loan  Document)  that (a) limits the
ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any
Guarantor or to otherwise  transfer  property to the Borrower or any  Guarantor,
(ii) of any Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of
the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens
on property of such Person; provided,  however, that this clause (iii) shall not
prohibit  any  negative  pledge  incurred  or provided in favor of any holder of
Indebtedness  permitted  under  Section  7.03(e)  solely to the  extent any such
negative  pledge  relates to the  property  financed  by or the  subject of such
Indebtedness;  or (b)  requires the grant of a Lien to secure an  obligation  of
such Person if a Lien is granted to secure another obligation of such Person.

         7.10 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)
or to extend credit to others for the purpose of  purchasing or carrying  margin
stock or to refund indebtedness originally incurred for such purpose.

         7.11 Financial Covenants.

                  (a)  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 1.20 to 1.00.

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<PAGE>

                  (b)  Consolidated  Leverage  Ratio.  Permit  the  Consolidated
         Leverage Ratio at any time during any period of four fiscal quarters of
         the  Borrower  set forth  below to be greater  than the ratio set forth
         below opposite such period:

                                                       Maximum Consolidated
             Four Fiscal Quarters Ending                  Leverage Ratio
  --------------------------------------------------- -----------------------
  Closing Date through September 30, 2009                  2.50 to 1.00
  December 31, 2009 and each fiscal quarter                 2.0 to 1.0
  thereafter

                                  ARTICLE VIII

                         EVENTS OF DEFAULT AND REMEDIES
                         ------------------------------

         8.01 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 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 (i) Section 6.01
         or 6.02  within  15 days  after  the same  becomes  due and (ii) any of
         Section 6.03, 6.05, 6.10 or 6.11 or Article VII; or

                  (c) Other Defaults. Any Loan Party fails to perform or observe
         any other covenant or agreement (not specified in subsection (a) or (b)
         above)  contained  in any Loan  Document on its part to be performed or
         observed and such failure continues for 30 days; or

                  (d)  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 when made or deemed made; or

                  (e)  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) in respect of
         any  Indebtedness or Guarantee (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,  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

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<PAGE>

                  (f) 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 and the  appointment  continues
         undischarged or unstayed for 60 calendar days; 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 60 calendar days, or
         an order for relief is entered in any such proceeding; or

                  (g)  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 or any  material  part of the  property of any such
         Person  and is not  released,  vacated or fully  bonded  within 30 days
         after its issue or levy; or

                  (h)  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  (as to all such  judgments  or  orders)
         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 30  consecutive  days
         during which a stay of  enforcement  of such  judgment,  by reason of a
         pending appeal or otherwise, is not in effect; or

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                  (i) 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

                  (j)  Invalidity of Loan  Documents.  Any provision of any Loan
         Document,  at any time after its  execution  and  delivery  and for any
         reason other than as expressly  permitted  hereunder or  thereunder  or
         satisfaction in full of all the Obligations, ceases to be in full force
         and  effect;  or any Loan  Party or any other  Person  contests  in any
         manner the  validity or  enforceability  of any  provision  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 provision of any Loan Document; or

                  (k) Change of Control. There occurs any Change of Control.

         8.02 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 Issuer 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,  the  Lenders  and the L/C
         Issuer all rights and remedies available to it, the Lenders and the L/C
         Issuer under the Loan Documents;

provided,  however,  that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the  Bankruptcy  Code of the
United States, the obligation of each Lender to make Loans and any obligation of
the L/C Issuer 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  Borrower  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.

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<PAGE>

         8.03 Application of Funds.  After the exercise of remedies provided for
in Section 8.02 (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  8.02),  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   fees,   charges  and
disbursements of counsel to the  Administrative  Agent 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,  interest and Letter
of Credit  Fees)  payable to the  Lenders  and the L/C Issuer  (including  fees,
charges  and  disbursements  of counsel to the  respective  Lenders  and the L/C
Issuer  (including  fees and time charges for  attorneys who may be employees of
any Lender or the L/C Issuer) and amounts  payable under  Article III),  ratably
among them in  proportion  to the  respective  amounts  described in this clause
Second payable to them;

         Third,  to payment  of that  portion  of the  Obligations  constituting
accrued  and  unpaid  Letter of  Credit  Fees and  interest  on the  Loans,  L/C
Borrowings and other  Obligations,  ratably among the Lenders and the L/C Issuer
in proportion to the respective  amounts  described in this clause Third payable
to them;

         Fourth,  to payment of that  portion  of the  Obligations  constituting
unpaid principal of the Loans and L/C Borrowings,  ratably among the Lenders and
the L/C Issuer in proportion to the respective  amounts described in this clause
Fourth held by them;

         Fifth, to the  Administrative  Agent for the account of the L/C Issuer,
to Cash Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; 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  Fifth  above shall be
applied to satisfy  drawings under such Letters of Credit 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 to
the other Obligations, if any, in the order set forth above.

                                   ARTICLE IX

                              ADMINISTRATIVE AGENT
                              --------------------

         9.01 Appointment and Authority.  Each of the Lenders and the L/C Issuer
hereby  irrevocably  appoints  Bank  of  America  to act on  its  behalf  as the
Administrative Agent hereunder and under the other Loan Documents and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such
powers as are  delegated  to the  Administrative  Agent by the  terms  hereof or
thereof,  together  with such  actions and powers as are  reasonably  incidental
thereto.  The  provisions  of this  Article  are solely  for the  benefit of the
Administrative  Agent, the Lenders and the L/C Issuer,  and neither the Borrower
nor any other Loan Party shall have rights as a third party  beneficiary  of any
of such provisions.

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<PAGE>

         9.02 Rights as a Lender. The Person serving as the Administrative Agent
hereunder  shall have the same rights and powers in its  capacity as a Lender as
any  other  Lender  and  may  exercise  the  same  as  though  it  were  not the
Administrative  Agent and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual  capacity.  Such
Person and its  Affiliates may accept  deposits from,  lend money to, act as the
financial  advisor or in any other advisory capacity for and generally engage in
any kind of business  with the  Borrower or any  Subsidiary  or other  Affiliate
thereof  as if such  Person  were not the  Administrative  Agent  hereunder  and
without any duty to account therefor to the Lenders.

         9.03 Exculpatory  Provisions.  The Administrative  Agent shall not have
any duties or  obligations  except those  expressly  set forth herein and in the
other Loan  Documents.  Without  limiting the generality of the  foregoing,  the
Administrative Agent:

                  (a) shall not be subject  to any  fiduciary  or other  implied
         duties, regardless of whether a Default has occurred and is continuing;

                  (b) shall not have any duty to take any  discretionary  action
         or exercise any discretionary  powers,  except discretionary rights and
         powers  expressly  contemplated  hereby or by the other Loan  Documents
         that the  Administrative  Agent is  required to exercise as directed in
         writing by the Required  Lenders (or such other number or percentage of
         the Lenders as shall be  expressly  provided for herein or in the other
         Loan Documents),  provided that the  Administrative  Agent shall not be
         required to take any action that,  in its opinion or the opinion of its
         counsel,  may expose the  Administrative  Agent to liability or that is
         contrary to any Loan Document or applicable law; and

                  (c) shall not, except as expressly set forth herein and in the
         other  Loan  Documents,  have any duty to  disclose,  and  shall not be
         liable for the failure to  disclose,  any  information  relating to the
         Borrower or any of its Affiliates  that is  communicated to or obtained
         by  the  Person  serving  as  the  Administrative  Agent  or any of its
         Affiliates in any capacity.

         The  Administrative  Agent shall not be liable for any action  taken or
not taken by it (i) with the consent or at the request of the  Required  Lenders
(or such other number or percentage of the Lenders as shall be necessary,  or as
the Administrative  Agent shall believe in good faith shall be necessary,  under
the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence
of its own gross  negligence or willful  misconduct.  The  Administrative  Agent
shall be deemed not to have  knowledge  of any Default  unless and until  notice
describing such Default is given to the Administrative  Agent by the Borrower, a
Lender or the L/C Issuer.

CREDIT AGREEMENT Page 72

<PAGE>

         The Administrative  Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement,  warranty or representation made
in or in connection  with this  Agreement or any other Loan  Document,  (ii) the
contents of any  certificate,  report or other document  delivered  hereunder or
thereunder or in  connection  herewith or therewith,  (iii) the  performance  or
observance of any of the covenants,  agreements or other terms or conditions set
forth herein or therein or the  occurrence  of any Default,  (iv) the  validity,
enforceability,  effectiveness or genuineness of this Agreement,  any other Loan
Document or any other agreement,  instrument or document or (v) the satisfaction
of any  condition  set forth in Article IV or  elsewhere  herein,  other than to
confirm   receipt  of  items   expressly   required  to  be   delivered  to  the
Administrative Agent.

         9.04 Reliance by Administrative  Agent. The Administrative  Agent shall
be entitled to rely upon,  and shall not incur any  liability  for relying upon,
any notice, request, certificate,  consent, statement,  instrument,  document or
other writing  (including any electronic  message,  Internet or intranet website
posting or other  distribution)  believed  by it to be genuine  and to have been
signed, sent or otherwise authenticated by the proper Person. The Administrative
Agent also may rely upon any  statement  made to it orally or by  telephone  and
believed by it to have been made by the proper  Person,  and shall not incur any
liability for relying  thereon.  In  determining  compliance  with any condition
hereunder to the making of a Loan,  or the issuance of a Letter of Credit,  that
by its  terms  must be  fulfilled  to the  satisfaction  of a Lender  or the L/C
Issuer, the Administrative Agent may presume that such condition is satisfactory
to such  Lender or the L/C Issuer  unless the  Administrative  Agent  shall have
received  notice to the contrary from such Lender or the L/C Issuer prior to the
making of such Loan or the issuance of such Letter of Credit. The Administrative
Agent may consult  with legal  counsel  (who may be counsel  for the  Borrower),
independent  accountants  and other  experts  selected  by it,  and shall not be
liable for any action taken or not taken by it in accordance  with the advice of
any such counsel, accountants or experts.

         9.05 Delegation of Duties. The Administrative Agent may perform any and
all of its duties and  exercise  its  rights and powers  hereunder  or under any
other Loan  Document by or through any one or more  sub-agents  appointed by the
Administrative  Agent.  The  Administrative  Agent  and any such  sub-agent  may
perform  any and all of its  duties  and  exercise  its  rights and powers by or
through their  respective  Related Parties.  The exculpatory  provisions of this
Article  shall apply to any such  sub-agent  and to the  Related  Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities  provided
for herein as well as activities as Administrative Agent.

         9.06 Resignation of Administrative  Agent. The Administrative Agent may
at any time give notice of its  resignation  to the Lenders,  the L/C Issuer and
the  Borrower.  Upon  receipt of any such notice of  resignation,  the  Required
Lenders shall have the right,  in consultation  with the Borrower,  to appoint a
successor,  which  shall be a bank with an office in the  United  States,  or an
Affiliate  of any such  bank with an office  in the  United  States.  If no such
successor  shall have been so appointed  by the Required  Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation,  then the retiring  Administrative Agent may on
behalf of the  Lenders and the L/C  Issuer,  appoint a successor  Administrative
Agent  meeting  the  qualifications  set  forth  above;  provided  that  if  the
Administrative  Agent  shall  notify  the  Borrower  and  the  Lenders  that  no
qualifying  Person has accepted such  appointment,  then such resignation  shall
nonetheless become effective in accordance with such notice and (1) the retiring
Administrative  Agent  shall be  discharged  from  its  duties  and  obligations
hereunder   and  under  the  other  Loan   Documents   and  (2)  all   payments,
communications  and  determinations  provided  to be made by, to or through  the
Administrative  Agent  shall  instead  be made by or to each  Lender and the L/C
Issuer  directly,  until such time as the Required  Lenders  appoint a successor
Administrative Agent as provided for above in this Section.  Upon the acceptance
of a successor's  appointment as Administrative Agent hereunder,  such successor
shall  succeed to and become vested with all of the rights,  powers,  privileges
and duties of the retiring (or retired)  Administrative  Agent, and the retiring
Administrative  Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom
as  provided  above in this  Section).  The fees  payable by the  Borrower  to a
successor  Administrative  Agent  shall  be the  same as  those  payable  to its
predecessor  unless  otherwise  agreed between the Borrower and such  successor.
After the retiring  Administrative  Agent's resignation  hereunder and under the
other Loan  Documents,  the  provisions  of this Article and Section 10.04 shall
continue in effect for the benefit of such retiring  Administrative  Agent,  its
sub-agents and their respective  Related Parties in respect of any actions taken
or omitted to be taken by any of them while the  retiring  Administrative  Agent
was acting as Administrative Agent.

CREDIT AGREEMENT Page 73

<PAGE>

         Any resignation by Bank of America as Administrative  Agent pursuant to
this Section shall also  constitute its resignation as L/C Issuer and Swing Line
Lender. Upon the acceptance of a successor's appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of the
rights, powers,  privileges and duties of the retiring L/C Issuer and Swing Line
Lender,  (b) the retiring  L/C Issuer and Swing Line Lender shall be  discharged
from all of their respective duties and obligations hereunder or under the other
Loan  Documents,  and (c) the successor L/C Issuer shall issue letters of credit
in substitution  for the Letters of Credit,  if any,  outstanding at the time of
such  succession  or make other  arrangements  satisfactory  to the retiring L/C
Issuer to  effectively  assume the  obligations  of the retiring L/C Issuer with
respect to such Letters of Credit.

         9.07  Non-Reliance  on  Administrative  Agent and Other  Lenders.  Each
Lender and the L/C Issuer  acknowledges  that it has,  independently and without
reliance  upon the  Administrative  Agent or any  other  Lender  or any of their
Related  Parties and based on such  documents and  information  as it has deemed
appropriate,  made its own  credit  analysis  and  decision  to enter  into this
Agreement.  Each  Lender  and the L/C  Issuer  also  acknowledges  that it will,
independently  and without reliance upon the  Administrative  Agent or any other
Lender  or any of  their  Related  Parties  and  based  on  such  documents  and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan  Document  or any related  agreement  or any  document  furnished
hereunder or thereunder.

         9.08  Administrative  Agent May File  Proofs  of Claim.  In case of the
pendency of any  proceeding  under any Debtor  Relief Law or any 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

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<PAGE>

                  (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,  the L/C Issuer and the  Administrative
         Agent (including any claim for the reasonable  compensation,  expenses,
         disbursements  and  advances  of the  Lenders,  the L/C  Issuer and the
         Administrative  Agent and their  respective  agents and counsel and all
         other  amounts due the Lenders,  the L/C Issuer and the  Administrative
         Agent under  Sections  2.03(i) and (j), 2.09 and 10.04) 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 and the L/C Issuer 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  and  the  L/C  Issuer,  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 10.04.

         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 or the L/C Issuer any plan of reorganization, arrangement, adjustment
or composition  affecting the Obligations or the rights of any Lender or the L/C
Issuer to authorize the Administrative  Agent to vote in respect of the claim of
any Lender or the L/C Issuer in any such proceeding.

                                   ARTICLE X

                                  MISCELLANEOUS
                                  -------------

10.01 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) waive any condition set forth in Section  4.01(a)  without
         the written consent of each Lender;

                  (b)  extend or  increase  the  Commitment  of any  Lender  (or
         reinstate any Commitment  terminated  pursuant to Section 8.02) without
         the written consent of such Lender;

                  (c)  postpone  any date fixed by this  Agreement  or any other
         Loan  Document for any payment or mandatory  prepayment  of  principal,
         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;

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<PAGE>

                  (d) reduce the principal of, or the rate of interest specified
         herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the
         second proviso to this Section 10.01) any fees or other amounts payable
         hereunder  or under any other  Loan  Document,  or change the manner of
         computation  of  any  financial  ratio  (including  any  change  in any
         applicable  defined term) used in determining  the Applicable Rate that
         would result in a reduction of any interest rate on any Loan or any fee
         payable  hereunder  without the written consent of each Lender directly
         affected  thereby;  provided,  however,  that only the  consent  of the
         Required  Lenders  shall be necessary  (i) to amend the  definition  of
         "Default  Rate" or to  waive  any  obligation  of the  Borrower  to pay
         interest or Letter of Credit Fees at the Default  Rate or (ii) to amend
         any  financial  covenant  hereunder  (or any defined term used therein)
         even if the  effect of such  amendment  would be to reduce  the rate of
         interest  on any Loan or L/C  Borrowing  or to reduce  any fee  payable
         hereunder;

                  (e) change Section 2.13 or Section 8.03 in a manner that would
         alter the pro rata  sharing of payments  required  thereby  without the
         written consent of each Lender; or

                  (f) 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;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders  required above,
affect the rights or duties of the L/C Issuer under this Agreement or any Issuer
Document  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.

10.02    Notices; Effectiveness; Electronic Communication.

                  (a) Notices Generally. Except in the case of notices and other
         communications expressly permitted to be given by telephone (and except
         as  provided  in   subsection   (b)  below),   all  notices  and  other
         communications  provided  for herein  shall be in writing  and shall be
         delivered by hand or overnight courier service,  mailed by certified or
         registered  mail or sent by telecopier as follows,  and all notices and
         other  communications  expressly  permitted  hereunder  to be  given by
         telephone shall be made to the applicable telephone number, as follows:

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                           (i) if to the Borrower, the Administrative Agent, the
                  L/C  Issuer  or  the  Swing  Line  Lender,   to  the  address,
                  telecopier number, electronic mail address or telephone number
                  specified for such Person on Schedule 10.02; and

                           (ii)  if  to  any  other  Lender,   to  the  address,
                  telecopier number,
                  electronic mail address or telephone  number  specified in its
                  Administrative Questionnaire.

         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 telecopier 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  and the L/C  Issuer  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 or the L/C Issuer  pursuant  to Article II if
         such  Lender  or the  L/C  Issuer,  as  applicable,  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 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.

         Unless the Administrative Agent otherwise  prescribes,  (i) notices and
         other communications sent to an e-mail address shall be deemed received
         upon the  sender's  receipt  of an  acknowledgement  from the  intended
         recipient  (such as by the  "return  receipt  requested"  function,  as
         available,  return e-mail or other written  acknowledgement),  provided
         that if such  notice  or other  communication  is not sent  during  the
         normal  business hours of the recipient,  such notice or  communication
         shall be deemed to have been sent at the  opening  of  business  on the
         next business day for the recipient, and (ii) notices or communications
         posted to an Internet or intranet website shall be deemed received upon
         the deemed  receipt by the intended  recipient at its e-mail address as
         described in the foregoing clause (i) of notification  that such notice
         or  communication  is available  and  identifying  the website  address
         therefor.

                  (c) The  Platform.  THE  PLATFORM IS PROVIDED  "AS IS" AND "AS
         AVAILABLE."  THE AGENT  PARTIES (AS  DEFINED  BELOW) DO NOT WARRANT THE
         ACCURACY OR COMPLETENESS  OF THE BORROWER  MATERIALS OR THE ADEQUACY OF
         THE  PLATFORM,  AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR  ERRORS  IN OR
         OMISSIONS  FROM  THE  BORROWER  MATERIALS.  NO  WARRANTY  OF ANY  KIND,
         EXPRESS,   IMPLIED   OR   STATUTORY,    INCLUDING   ANY   WARRANTY   OF
         MERCHANTABILITY,  FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF
         THIRD PARTY RIGHTS OR FREEDOM FROM  VIRUSES OR OTHER CODE  DEFECTS,  IS
         MADE BY ANY AGENT PARTY IN  CONNECTION  WITH THE BORROWER  MATERIALS OR
         THE PLATFORM.  In no event shall the Administrative Agent or any of its
         Related Parties (collectively,  the "Agent Parties") have any liability
         to the  Borrower,  any Lender,  the L/C Issuer or any other  Person for
         losses, claims,  damages,  liabilities or expenses of any kind (whether
         in tort,  contract or otherwise)  arising out of the  Borrower's or the
         Administrative  Agent's  transmission of Borrower Materials through the
         Internet,  except to the  extent  that such  losses,  claims,  damages,
         liabilities  or  expenses  are  determined  by  a  court  of  competent
         jurisdiction  by a final and  nonappealable  judgment to have  resulted
         from the gross  negligence  or willful  misconduct of such Agent Party;
         provided,  however,  that in no event  shall any Agent  Party  have any
         liability  to the  Borrower,  any  Lender,  the L/C Issuer or any other
         Person for indirect,  special,  incidental,  consequential  or punitive
         damages (as opposed to direct or actual damages).

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<PAGE>

                  (d)  Change  of  Address,  Etc.  Each  of  the  Borrower,  the
         Administrative  Agent,  the L/C Issuer  and the Swing  Line  Lender may
         change its  address,  telecopier  or  telephone  number for notices and
         other  communications  hereunder by notice to the other parties hereto.
         Each  other  Lender may change its  address,  telecopier  or  telephone
         number for notices and other communications  hereunder by notice to the
         Borrower,  the Administrative  Agent, the L/C Issuer and the Swing Line
         Lender.  In addition,  each Lender agrees to notify the  Administrative
         Agent from time to time to ensure that the Administrative  Agent has on
         record  (i) an  effective  address,  contact  name,  telephone  number,
         telecopier  number and  electronic  mail  address to which  notices and
         other  communications  may be sent and (ii) accurate wire  instructions
         for such Lender.  Furthermore,  each Public  Lender  agrees to cause at
         least one  individual  at or on behalf of such Public  Lender to at all
         times  have  selected  the  "Private  Side   Information"   or  similar
         designation on the content  declaration screen of the Platform in order
         to enable such Public Lender or its delegate,  in accordance  with such
         Public Lender's  compliance  procedures and applicable  Law,  including
         United States Federal and state  securities  Laws, to make reference to
         Borrower Materials that are not made available through the "Public Side
         Information"  portion of the  Platform  and that may  contain  material
         non-public  information  with respect to the Borrower or its securities
         for purposes of United States Federal or state securities laws.

                  (e) Reliance by Administrative  Agent, L/C Issuer and Lenders.
         The  Administrative  Agent,  the L/C  Issuer and the  Lenders  shall be
         entitled  to rely  and  act  upon  any  notices  (including  telephonic
         Committed Loan Notices and Swing Line Loan Notices)  purportedly  given
         by or on behalf 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 the Administrative
         Agent,  the L/C Issuer,  each Lender and the Related Parties of each of
         them from all losses,  costs,  expenses and liabilities  resulting from
         the reliance by such Person on each notice  purportedly  given by or on
         behalf of the Borrower.  All telephonic notices to and other telephonic
         communications  with the  Administrative  Agent may be  recorded by the
         Administrative Agent, and each of the parties hereto hereby consents to
         such recording.

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<PAGE>

         10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the L/C
Issuer 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.

         10.04 Expenses; Indemnity; Damage Waiver.

                  (a)  Costs  and  Expenses.  The  Borrower  shall  pay  (i) all
         reasonable  out-of-pocket expenses incurred by the Administrative Agent
         and  its  Affiliates   (including  the  reasonable  fees,  charges  and
         disbursements of counsel for the  Administrative  Agent), in connection
         with the syndication of the credit facilities  provided for herein, the
         preparation,  negotiation,  execution,  delivery and  administration of
         this  Agreement  and  the  other  Loan  Documents  or  any  amendments,
         modifications  or waivers of the provisions  hereof or thereof (whether
         or not  the  transactions  contemplated  hereby  or  thereby  shall  be
         consummated),  (ii) all reasonable  out-of-pocket  expenses incurred by
         the L/C Issuer in connection with the issuance,  amendment,  renewal or
         extension of any Letter of Credit or any demand for payment  thereunder
         and (iii) all  out-of-pocket  expenses  incurred by the  Administrative
         Agent,  any Lender or the L/C Issuer  (including the fees,  charges and
         disbursements of any counsel for the  Administrative  Agent, any Lender
         or the L/C  Issuer),  and  shall  pay all  fees and  time  charges  for
         attorneys who may be employees of the Administrative  Agent, any Lender
         or the L/C Issuer,  in connection with the enforcement or protection of
         its rights (A) in  connection  with this  Agreement  and the other Loan
         Documents,   including  its  rights  under  this  Section,  or  (B)  in
         connection  with the Loans made or Letters of Credit issued  hereunder,
         including all such out-of-pocket  expenses incurred during any workout,
         restructuring  or  negotiations  in respect of such Loans or Letters of
         Credit.

                  (b)  Indemnification  by  the  Borrower.  The  Borrower  shall
         indemnify the Administrative  Agent (and any sub-agent  thereof),  each
         Lender  and  the L/C  Issuer,  and  each  Related  Party  of any of the
         foregoing  Persons  (each such  Person  being  called an  "Indemnitee")
         against,  and hold each  Indemnitee  harmless from, any and all losses,
         claims, damages,  liabilities and related expenses (including the fees,
         charges and disbursements of any counsel for any Indemnitee), and shall
         indemnify  and hold  harmless  each  Indemnitee  from all fees and time
         charges and  disbursements  for  attorneys  who may be employees of any
         Indemnitee,   incurred  by  any  Indemnitee  or  asserted  against  any
         Indemnitee  by any third  party or by the  Borrower  or any other  Loan
         Party  arising out of, in  connection  with,  or as a result of (i) the
         execution or delivery of this Agreement, any other Loan Document or any
         agreement or instrument contemplated hereby or thereby, the performance
         by the parties  hereto of their  respective  obligations  hereunder  or
         thereunder, the consummation of the transactions contemplated hereby or
         thereby, or, in the case of the Administrative Agent (and any sub-agent
         thereof)  and its Related  Parties  only,  the  administration  of this
         Agreement  and the  other  Loan  Documents,  (ii) any Loan or Letter of
         Credit or the use or proposed use of the proceeds therefrom  (including
         any  refusal by the 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),
         (iii) any actual or alleged presence or release of Hazardous  Materials
         on or from any property owned or operated by the Borrower or any of its
         Subsidiaries,  or any Environmental Liability related in any way to the
         Borrower or any of its Subsidiaries,  or (iv) any actual or prospective
         claim,  litigation,  investigation or proceeding relating to any of the
         foregoing, whether based on contract, tort or any other theory, whether
         brought by a third  party or by the  Borrower  or any other Loan Party,
         and  regardless of whether any  Indemnitee is a party  thereto,  IN ALL
         CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF
         THE  COMPARATIVE,  CONTRIBUTORY  OR SOLE  NEGLIGENCE OF THE INDEMNITEE;
         provided  that such  indemnity  shall  not,  as to any  Indemnitee,  be
         available to the extent that such losses, claims, damages,  liabilities
         or  related  expenses  (x)  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 (y)
         result  from a claim  brought by the  Borrower  or any other Loan Party
         against  an  Indemnitee  for  breach in bad faith of such  Indemnitee's
         obligations hereunder or under any other Loan Document, if the Borrower
         or such Loan Party has obtained a final and  nonappealable  judgment in
         its  favor  on  such  claim  as  determined  by a  court  of  competent
         jurisdiction.

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<PAGE>

                  (c) Reimbursement by Lenders.  To the extent that the Borrower
         for any reason  fails to  indefeasibly  pay any amount  required  under
         subsection  (a)  or  (b)  of  this  Section  to be  paid  by it to  the
         Administrative Agent (or any sub-agent thereof),  the L/C Issuer or any
         Related Party of any of the foregoing,  each Lender severally agrees to
         pay to the Administrative Agent (or any such sub-agent), the L/C Issuer
         or such Related  Party,  as the case may be, such  Lender's  Applicable
         Percentage (determined as of the time that the applicable  unreimbursed
         expense or indemnity payment is sought) of such unpaid amount, provided
         that the  unreimbursed  expense or  indemnified  loss,  claim,  damage,
         liability  or related  expense,  as the case may be, was incurred by or
         asserted  against the  Administrative  Agent (or any such sub-agent) or
         the L/C Issuer in its capacity as such, or against any Related Party of
         any of the foregoing acting for the  Administrative  Agent (or any such
         sub-agent)  or  L/C  Issuer  in  connection  with  such  capacity.  The
         obligations of the Lenders under this subsection (c) are subject to the
         provisions of Section 2.12(d).

                  (d)  Waiver of  Consequential  Damages,  Etc.  To the  fullest
         extent permitted by applicable law, the Borrower shall not assert,  and
         hereby  waives,  any claim  against  any  Indemnitee,  on any theory of
         liability, for special, indirect, consequential or punitive damages (as
         opposed  to direct or actual  damages)  arising  out of, in  connection
         with, or as a result of, this Agreement, any other Loan Document or any
         agreement  or  instrument   contemplated   hereby,   the   transactions
         contemplated hereby or thereby, any Loan or Letter of Credit or the use
         of the proceeds  thereof.  No Indemnitee  referred to in subsection (b)
         above  shall  be  liable  for  any  damages  arising  from  the  use by
         unintended recipients of any information or other materials distributed
         to   such   unintended    recipients   by   such   Indemnitee   through
         telecommunications,   electronic  or  other  information   transmission
         systems in connection  with this  Agreement or the other Loan Documents
         or the  transactions  contemplated  hereby or  thereby  other  than for
         direct or actual damages resulting from the gross negligence or willful
         misconduct   of  such   Indemnitee   as   determined  by  a  final  and
         nonappealable judgment of a court of competent jurisdiction.

CREDIT AGREEMENT Page 80

<PAGE>

                  (e)  Payments.  All  amounts due under this  Section  shall be
         payable not later than ten Business Days after demand therefor.

                  (f) Survival. The agreements in this Section shall survive the
         resignation of the  Administrative  Agent, the L/C Issuer and the Swing
         Line Lender,  the  replacement  of any Lender,  the  termination of the
         Aggregate  Commitments and the repayment,  satisfaction or discharge of
         all the other Obligations.

         10.05  Payments  Set  Aside.  To the extent  that any  payment by or on
behalf of the Borrower is made to the  Administrative  Agent,  the L/C Issuer or
any Lender, or the Administrative  Agent, the L/C Issuer or any Lender exercises
its right of setoff, and such payment or the proceeds of such setoff 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,  the L/C Issuer 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 setoff had not  occurred,  and (b) each Lender
and the L/C  Issuer  severally  agrees to pay to the  Administrative  Agent upon
demand its  applicable  share (without  duplication)  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.  The  obligations of the Lenders
and the L/C Issuer under clause (b) of the preceding  sentence shall survive the
payment in full of the Obligations and the termination of this Agreement.

         10.06 Successors and Assigns.

                  (a) Successors and Assigns  Generally.  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 neither the Borrower nor any other Loan Party may assign or
         otherwise  transfer any of its rights or obligations  hereunder without
         the prior written consent of the  Administrative  Agent and each Lender
         and no Lender may  assign or  otherwise  transfer  any of its rights or
         obligations  hereunder except (i) to an 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 Related
         Parties  of each of the  Administrative  Agent,  the L/C Issuer and the
         Lenders)  any legal or  equitable  right,  remedy or claim  under or by
         reason of this Agreement.

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<PAGE>

                  (b) Assignments by Lenders.  Any Lender may at any time assign
         to one or more 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 any such assignment shall be subject to the
         following conditions:

                           (i) Minimum Amounts.

                                (A) 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,  an  Affiliate  of a
                           Lender or an Approved Fund, no minimum amount need be
                           assigned; and

                                (B) in any  case  not  described  in  subsection
                           (b)(i)(A) of this Section,  the  aggregate  amount of
                           the Commitment (which for this purpose includes Loans
                           outstanding  thereunder) or, if the Commitment is not
                           then in effect, the principal  outstanding balance of
                           the Loans of the  assigning  Lender  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    $5,000,000    unless   each   of   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); provided, however,
                           that concurrent assignments to members of an Assignee
                           Group and concurrent  assignments  from members of an
                           Assignee Group to a single  Eligible  Assignee (or to
                           an  Eligible  Assignee  and  members of its  Assignee
                           Group)  will be  treated as a single  assignment  for
                           purposes of  determining  whether such minimum amount
                           has been met.

                           (ii) Proportionate  Amounts.  Each partial assignment
                  shall be made as an assignment of a proportionate  part of all
                  the  assigning  Lender's  rights  and  obligations  under this
                  Agreement   with  respect  to  the  Loans  or  the  Commitment
                  assigned,  except that this clause (ii) shall not apply to the
                  Swing Line Lender's rights and obligations in respect of Swing
                  Line Loans.

                           (iii) Required Consents. No consent shall be required
                  for any assignment except to the extent required by subsection
                  (b)(i)(B) of this Section and, in addition:

                                (A) the consent of the  Borrower  (such  consent
                           not to be unreasonably  withheld or delayed) shall be
                           required  unless (1) an Event of Default has occurred
                           and is continuing  at the time of such  assignment or
                           (2) such assignment is to a Lender, an Affiliate of a
                           Lender or an Approved Fund;

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<PAGE>

                                (B)  the  consent  of the  Administrative  Agent
                           (such  consent  not to be  unreasonably  withheld  or
                           delayed) shall be required if such assignment is to a
                           Person  that is not a Lender,  an  Affiliate  of such
                           Lender  or an  Approved  Fund  with  respect  to such
                           Lender; and

                                (C) the consent of the L/C Issuer (such  consent
                           not to be unreasonably  withheld or delayed) shall be
                           required  for  any  assignment   that  increases  the
                           obligation of the assignee to participate in exposure
                           under one or more  Letters of Credit  (whether or not
                           then outstanding).

                           (iv) Assignment and  Assumption.  The parties to each
                  assignment  shall  execute and  deliver to the  Administrative
                  Agent an Assignment and Assumption, together with a processing
                  and  recordation  fee  in  the  amount  of  $3,500;  provided,
                  however,  that  the  Administrative  Agent  may,  in its  sole
                  discretion, elect to waive such processing and recordation fee
                  in the case of any  assignment.  The assignee,  if it is not a
                  Lender,   shall  deliver  to  the   Administrative   Agent  an
                  Administrative Questionnaire.

                           (v) No  Assignment  to Borrower.  No such  assignment
                  shall  be  made  to the  Borrower  or  any  of the  Borrower's
                  Affiliates or Subsidiaries.

                           (vi)  No  Assignment  to  Natural  Persons.  No  such
                  assignment shall be made to a natural person.

         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
         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,  and 10.04 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.

                  (c) Register. 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.

CREDIT AGREEMENT Page 83

<PAGE>

                  (d)  Participations.  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, the Lenders and the L/C Issuer
         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 the first proviso to Section
         10.01 that 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 10.08 as
         though it were a Lender, provided such Participant agrees to be subject
         to Section 2.13 as though it were a Lender.

                  (e) Limitations upon Participant  Rights. 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 3.01(e) as though it were a Lender.

                  (f)  Certain  Pledges.  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.

CREDIT AGREEMENT Page 84

<PAGE>

                  (g)   Electronic   Execution   of   Assignments.   The   words
         "execution,"  "signed,"  "signature,"  and words of like  import in any
         Assignment  and  Assumption  shall  be  deemed  to  include  electronic
         signatures or the keeping of records in electronic  form, each of which
         shall be of the same legal  effect,  validity  or  enforceability  as a
         manually executed  signature or the use of a paper-based  recordkeeping
         system,  as the case may be, to the extent and as  provided  for in any
         applicable law, including the Federal  Electronic  Signatures in Global
         and National Commerce Act, the New York State Electronic Signatures and
         Records  Act,  or any other  similar  state laws  based on the  Uniform
         Electronic Transactions Act.

                  (h)  Resignation  as L/C  Issuer or Swing  Line  Lender  after
         Assignment.  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 30
         days'  notice to the  Borrower  and the  Lenders,  resign as L/C Issuer
         and/or (ii) upon 30 days' notice to the Borrower,  resign as Swing Line
         Lender.  In the event of any such  resignation  as 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 L/C Issuer
         or Swing Line Lender, as the case may be. If Bank of America resigns as
         L/C Issuer,  it shall  retain all the rights,  powers,  privileges  and
         duties of the L/C  Issuer  hereunder  with  respect  to all  Letters of
         Credit  outstanding as of the effective date of its  resignation as L/C
         Issuer and all L/C  Obligations  with respect  thereto  (including  the
         right to require the Lenders to make Base Rate Committed  Loans or fund
         risk  participations  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 Committed  Loans or fund risk  participations
         in outstanding  Swing Line Loans pursuant to Section 2.04(c).  Upon the
         appointment  of a successor  L/C Issuer  and/or Swing Line Lender,  (a)
         such  successor  shall  succeed  to and become  vested  with all of the
         rights,  powers,  privileges  and duties of the  retiring L/C Issuer or
         Swing Line Lender, as the case may be, and (b) the successor L/C Issuer
         shall  issue  letters  of credit in  substitution  for the  Letters  of
         Credit,  if any,  outstanding  at the time of such  succession  or make
         other  arrangements  satisfactory  to Bank of  America  to  effectively
         assume the  obligations of Bank of America with respect to such Letters
         of Credit.

         10.07 Treatment of Certain  Information;  Confidentiality.  Each of the
Administrative  Agent,  the  Lenders and the L/C Issuer  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),  (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners),  (c) to
the extent  required by  applicable  laws or  regulations  or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the
exercise  of any  remedies  hereunder  or under any other Loan  Document  or any
action or  proceeding  relating to this  Agreement or any other Loan Document or
the enforcement of rights  hereunder or thereunder,  (f) subject to an agreement
containing  provisions  substantially the same as those of this Section,  to (i)
any assignee of or Participant in, or any prospective assignee of or Participant
in,  any of its  rights or  obligations  under this  Agreement  or any  Eligible
Assignee  invited to be a Lender  pursuant to Section 2.14(c) or (ii) any actual
or  prospective  counterparty  (or  its  advisors)  to any  swap  or  derivative
transaction  relating to the Borrower and its obligations,  (g) with the consent
of the  Borrower or (h) to the extent  such  Information  (x)  becomes  publicly
available  other  than as a result of a breach of this  Section  or (y)  becomes
available  to the  Administrative  Agent,  any Lender,  the L/C Issuer or any of
their respective  Affiliates on a nonconfidential basis from a source other than
the Borrower.

CREDIT AGREEMENT Page 85

<PAGE>

         For  purposes  of this  Section,  "Information"  means all  information
received  from the  Borrower or any  Subsidiary  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, any Lender or the L/C
Issuer on a  nonconfidential  basis prior to  disclosure  by the Borrower or any
Subsidiary, provided that, in the case of information received from the Borrower
or any Subsidiary after the date hereof,  such information is clearly identified
at the time of delivery as  confidential.  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.

         Each of the  Administrative  Agent,  the  Lenders  and  the L/C  Issuer
acknowledges   that  (a)  the  Information  may  include   material   non-public
information concerning the Borrower or a Subsidiary,  as the case may be, (b) it
has developed  compliance  procedures  regarding the use of material  non-public
information  and (c) it will  handle such  material  non-public  information  in
accordance  with  applicable  Law,  including  United  States  Federal and state
securities Laws.

         10.08 Right of Setoff.  If an Event of Default  shall have occurred and
be  continuing,  each  Lender,  the L/C  Issuer  and  each of  their  respective
Affiliates  is  hereby  authorized  at any time and  from  time to time,  to the
fullest  extent  permitted by  applicable  law, to set off and apply any and all
deposits (general or special, time or demand,  provisional or final, in whatever
currency) at any time held and other  obligations (in whatever  currency) at any
time owing by such  Lender,  the L/C Issuer or any such  Affiliate to or for the
credit or the account of the Borrower  against any and all of the obligations of
the Borrower now or hereafter  existing  under this  Agreement or any other Loan
Document to such Lender or the L/C Issuer,  irrespective  of whether or not such
Lender or the L/C Issuer shall have made any demand under this  Agreement or any
other Loan  Document  and  although  such  obligations  of the  Borrower  may be
contingent  or unmatured or are owed to a branch or office of such Lender or the
L/C Issuer different from the branch or office holding such deposit or obligated
on such  indebtedness.  The  rights of each  Lender,  the L/C  Issuer  and their
respective  Affiliates  under this  Section are in addition to other  rights and
remedies  (including other rights of setoff) that such Lender, the L/C Issuer or
their  respective  Affiliates may have. Each Lender and the L/C Issuer agrees to
notify the Borrower and the Administrative  Agent promptly after any such setoff
and application,  provided that the failure to give such notice shall not affect
the validity of such setoff and application.  Notwithstanding  the provisions of
this Section  10.08,  if at any time any Lender,  the L/C Issuer or any of their
respective Affiliates maintains one or more deposit accounts for the Borrower or
any other Loan  Party  into  which  Medicare  and/or  Medicaid  receivables  are
deposited, such Person shall waive the right of setoff set forth herein.

CREDIT AGREEMENT Page 86

<PAGE>

         10.09  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.

         10.10 Counterparts;  Integration;  Effectiveness. This Agreement may be
executed  in  counterparts   (and  by  different  parties  hereto  in  different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract.  This Agreement and the other
Loan Documents  constitute the entire contract among the parties relating to the
subject  matter  hereof  and  supersede  any and  all  previous  agreements  and
understandings,  oral or written,  relating to the subject matter hereof. Except
as provided in Section 4.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative Agent
shall have received  counterparts  hereof that,  when taken  together,  bear the
signatures  of  each  of the  other  parties  hereto.  Delivery  of an  executed
counterpart of a signature page of this Agreement by telecopy shall be effective
as delivery of a manually executed counterpart of this Agreement.

         10.11 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.

         10.12  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.

CREDIT AGREEMENT Page 87

<PAGE>

         10.13 Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional amount to any
Lender or any  Governmental  Authority for the account of any Lender pursuant to
Section 3.01, or if any Lender is a Defaulting Lender, then the Borrower may, at
its sole expense and effort,  upon notice to such Lender and the  Administrative
Agent,  require  such  Lender to  assign  and  delegate,  without  recourse  (in
accordance  with and  subject to the  restrictions  contained  in, and  consents
required by, Section 10.06), all of its interests,  rights and obligations under
this  Agreement and the related Loan  Documents to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

                  (a) the Borrower shall have paid to the  Administrative  Agent
         the assignment fee specified in Section 10.06(b);

                  (b) such Lender shall have received payment of an amount equal
         to the  outstanding  principal of its Loans and L/C  Advances,  accrued
         interest  thereon,  accrued  fees and all other  amounts  payable to it
         hereunder  and under the other Loan  Documents  (including  any amounts
         under   Section  3.05)  from  the  assignee  (to  the  extent  of  such
         outstanding  principal  and accrued  interest and fees) or the Borrower
         (in the case of all other amounts);

                  (c) in the case of any such assignment  resulting from a claim
         for  compensation  under  Section 3.04 or payments  required to be made
         pursuant to Section 3.01, such assignment will result in a reduction in
         such compensation or payments thereafter; and

                  (d) such assignment does not conflict with applicable Laws.

         A  Lender  shall  not be  required  to  make  any  such  assignment  or
delegation  if,  prior  thereto,  as a result  of a  waiver  by such  Lender  or
otherwise,  the circumstances  entitling the Borrower to require such assignment
and delegation cease to apply.

         10.14 Governing Law; Jurisdiction; Etc.

                  (a) GOVERNING  LAW. THIS  AGREEMENT  SHALL BE GOVERNED BY, AND
         CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF TEXAS.

                  (b) SUBMISSION TO JURISDICTION.  THE BORROWER  IRREVOCABLY AND
         UNCONDITIONALLY   SUBMITS,   FOR  ITSELF  AND  ITS  PROPERTY,   TO  THE
         NONEXCLUSIVE  JURISDICTION  OF THE COURTS OF THE STATE OF TEXAS SITTING
         IN  DALLAS  COUNTY  AND OF THE  UNITED  STATES  DISTRICT  COURT  OF THE
         NORTHERN  DISTRICT OF TEXAS,  AND ANY APPELLATE COURT FROM ANY THEREOF,
         IN ANY  ACTION  OR  PROCEEDING  ARISING  OUT  OF OR  RELATING  TO  THIS
         AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
         OF ANY  JUDGMENT,  AND  EACH  OF THE  PARTIES  HERETO  IRREVOCABLY  AND
         UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
         PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO
         THE FULLEST EXTENT  PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.
         EACH OF THE PARTIES  HERETO  AGREES  THAT A FINAL  JUDGMENT IN ANY SUCH
         ACTION OR PROCEEDING  SHALL BE CONCLUSIVE  AND MAY BE ENFORCED IN OTHER
         JURISDICTIONS  BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER  PROVIDED
         BY LAW.  NOTHING IN THIS  AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
         AFFECT ANY RIGHT THAT THE  ADMINISTRATIVE  AGENT, ANY LENDER OR THE L/C
         ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
         THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT  AGAINST THE BORROWER OR ITS
         PROPERTIES IN THE COURTS OF ANY JURISDICTION.

CREDIT AGREEMENT Page 88

<PAGE>

                  (c)   WAIVER   OF  VENUE.   THE   BORROWER   IRREVOCABLY   AND
         UNCONDITIONALLY  WAIVES,  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
         LAW, ANY OBJECTION  THAT IT MAY NOW OR HEREAFTER  HAVE TO THE LAYING OF
         VENUE OF ANY ACTION OR  PROCEEDING  ARISING  OUT OF OR RELATING TO THIS
         AGREEMENT  OR ANY  OTHER  LOAN  DOCUMENT  IN ANY COURT  REFERRED  TO IN
         PARAGRAPH  (B) OF THIS  SECTION.  EACH  OF THE  PARTIES  HERETO  HEREBY
         IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
         THE DEFENSE OF AN INCONVENIENT  FORUM TO THE MAINTENANCE OF SUCH ACTION
         OR PROCEEDING IN ANY SUCH COURT.

                  (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS
         TO SERVICE OF PROCESS  IN THE MANNER  PROVIDED  FOR  NOTICES IN SECTION
         10.02.  NOTHING IN THIS  AGREEMENT  WILL  AFFECT THE RIGHT OF ANY PARTY
         HERETO TO SERVE  PROCESS IN ANY OTHER MANNER  PERMITTED  BY  APPLICABLE
         LAW.

         10.15  Waiver of Jury  Trial.  EACH  PARTY  HERETO  HEREBY  IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS  AGREEMENT  OR ANY OTHER LOAN  DOCUMENT OR THE  TRANSACTIONS
CONTEMPLATED  HEREBY OR THEREBY  (WHETHER  BASED ON CONTRACT,  TORT OR ANY OTHER
THEORY).  EACH  PARTY  HERETO (A)  CERTIFIES  THAT NO  REPRESENTATIVE,  AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER  PERSON  WOULD  NOT,  IN THE  EVENT OF  LITIGATION,  SEEK TO  ENFORCE  THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES  THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

CREDIT AGREEMENT Page 89

<PAGE>

         10.16 No Advisory or Fiduciary  Responsibility.  In connection with all
aspects of each transaction  contemplated  hereby  (including in connection with
any  amendment,  waiver  or  other  modification  hereof  or of any  other  Loan
Document),   the  Borrower   acknowledges  and  agrees,   and  acknowledges  its
Affiliates'  understanding,  that:  (i) (A) the  arranging  and  other  services
regarding this Agreement provided by the Administrative  Agent, are arm's-length
commercial  transactions  between the  Borrower and its  Affiliates,  on the one
hand,  and the  Administrative  Agent,  on the other hand,  (B) the Borrower has
consulted its own legal,  accounting,  regulatory and tax advisors to the extent
it has deemed  appropriate,  and (C) the Borrower is capable of evaluating,  and
understands  and accepts,  the terms,  risks and conditions of the  transactions
contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative
Agent is and has been acting  solely as a  principal  and,  except as  expressly
agreed in writing by the relevant parties, has not been, is not, and will not be
acting  as an  advisor,  agent  or  fiduciary  for  the  Borrower  or any of its
Affiliates, or any other Person and (B) neither the Administrative Agent has any
obligation  to  the  Borrower  or  any of its  Affiliates  with  respect  to the
transactions  contemplated  hereby except those obligations  expressly set forth
herein and in the other Loan Documents;  and (iii) the Administrative  Agent and
its  Affiliates  may be engaged in a broad range of  transactions  that  involve
interests  that differ from those of the  Borrower and its  Affiliates,  and the
Administrative  Agent has no obligation to disclose any of such interests to the
Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower
hereby   waives  and   releases   any  claims  that  it  may  have  against  the
Administrative  Agent with respect to any breach or alleged  breach of agency or
fiduciary  duty in connection  with any aspect of any  transaction  contemplated
hereby.

         10.17 USA PATRIOT  Act  Notice.  Each Lender that is subject to the Act
(as  hereinafter  defined) and the  Administrative  Agent (for itself and not on
behalf  of any  Lender)  hereby  notifies  the  Borrower  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 Borrower,  which  information  includes the name
and address of the Borrower and other information that will allow such Lender or
the Administrative Agent, as applicable,  to identify the Borrower in accordance
with the Act.

         10.18 ENTIRE  AGREEMENT.  This  Agreement and the other Loan  Documents
represent the final  agreement  AMONG the parties and may not be contradicted by
evidence  of  prior,  contemporaneous,  or  subsequent  oral  agreements  of the
parties. There are no unwritten oral agreements AMONG the parties.

                  [Remainder of Page Intentionally Left Blank.
                           Signature Pages to Follow.]

CREDIT AGREEMENT Page 90

<PAGE>

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

                                              U.S. PHYSICAL THERAPY, INC.

                                              By:      /s/ Lawrance W. McAfee
                                                 -------------------------------
                                                  Lawrance W. McAfee
                                                  Chief Financial Officer

CREDIT AGREEMENT Signature Page 1

<PAGE>

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

                                              By:    /s/ Daniel Penkar
                                                 -------------------------------
                                                  Daniel Penkar
                                                  Senior Vice President

CREDIT AGREEMENT Signature Page 2

<PAGE>

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

                                              By:    /s/ Daniel Penkar
                                                 -------------------------------
                                                  Daniel Penkar
                                                  Senior Vice President

CREDIT AGREEMENT Signature Page 3

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