Document:

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                                                                   Exhibit 10.11

(Multicurrency--Cross Border)

                                     ISDA(R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                         dated as of February 29, 2000

CITIBANK CANADA and DYNACARE INC. AND DYNACARE NORTHWEST INC. have entered
and/or anticipate entering into one or more transactions (each a "Transaction")
that are or will be governed by this Master Agreement, which includes the
schedule (the "Schedule"), and the documents and other confirming evidence (each
a "Confirmation") exchanged between the parties confirming those Transactions.

Accordingly, the parties agree as follows:--

1. INTERPRETATION

(a) DEFINITIONS. The terms defined in Section 14 and in the Schedule will have
the meanings therein specified for the purpose of this Master Agreement.

(b) INCONSISTENCY. In the event of any inconsistency between the provisions of
the Schedule and the other provisions of this Master Agreement, the Schedule
will prevail. In the event of any inconsistency between the provisions of any
Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) SINGLE AGREEMENT. All Transactions are entered into in reliance on the fact
that this Master Agreement and all Confirmations form a single agreement between
the parties (collectively referred to as this "Agreement"), and the parties
would not otherwise enter into any Transactions.

2. OBLIGATIONS

(a) GENERAL CONDITIONS.

      (i) Each party will make each payment or delivery specified in each
      Confirmation to be made by it, subject to the other provisions of this
      Agreement.

      (ii) Payments under this Agreement will be made on the due date for value
      on that date in the place of the account specified in the relevant
      Confirmation or otherwise pursuant to this Agreement, in freely
      transferable funds and in the manner customary for payments in the
      required currency. Where settlement is by delivery (that is, other than by
      payment), such delivery will be made for receipt on the due date in the
      manner customary for the relevant obligation unless otherwise specified in
      the relevant Confirmation or elsewhere in this Agreement.

      (iii) Each obligation of each party under Section 2(a)(i) is subject to
      (1) the condition precedent that no Event of Default or Potential Event of
      Default with respect to the other party has occurred and is continuing,
      (2) the condition precedent that no Early Termination Date in respect of
      the relevant Transaction has occurred or been effectively designated and
      (3) each other applicable condition precedent specified in this Agreement.

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(b) CHANGE OF ACCOUNT. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

(c) NETTING. If on any date amounts would otherwise be payable:--

      (i)   in the same currency; and

      (ii)  in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the
larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be made
in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above will not,
or will cease to, apply to such Transactions from such date). This election may
be made separately for different groups of Transactions and will apply
separately to each pairing of Offices through which the parties make and receive
payments or deliveries.

(d) DEDUCTION OR WITHHOLDING FOR TAX.

      (i) GROSS-UP. All payments under this Agreement will be made without any
      deduction or withholding for or on account of any Tax unless such
      deduction or withholding is required by any applicable law, as modified by
      the practice of any relevant governmental revenue authority, then in
      effect. If a party is so required to deduct or withhold, then that party
      ("X") will:--

            (1) promptly notify the other party ("Y") of such requirement;

            (2) pay to the relevant authorities the full amount required to be
            deducted or withheld (including the full amount required to be
            deducted or withheld from any additional amount paid by X to Y under
            this Section 2(d)) promptly upon the earlier of determining that
            such deduction or withholding is required or receiving notice that
            such amount has been assessed against Y;

            (3) promptly forward to Y an official receipt (or a certified copy),
            or other documentation reasonably acceptable to Y, evidencing such
            payment to such authorities; and

            (4) If such Tax is an Indemnifiable Tax, pay to Y, in addition to
            the payment to which Y is otherwise entitled under this Agreement,
            such additional amount as is necessary to ensure that the net amount
            actually received by Y (free and clear of Indemnifiable Taxes,
            whether assessed against X or Y) will equal the full amount Y would
            have received had no such deduction or withholding been required.
            However, X will not be required to pay any additional amount to Y to
            the extent that it would not be required to be paid but for:--

                  (A) the failure by Y to comply with or perform any agreement
                  contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

                  (B) the failure of a representation made by Y pursuant to
                  Section 3(f) to be accurate and true unless such failure would
                  not have occurred but for (I) any action taken by a taxing
                  authority, or brought in a court of competent jurisdiction, on
                  or after the date on which a Transaction is entered into
                  (regardless of whether such action is taken or brought with
                  respect to a party to this Agreement) or (II) a Change in Tax
                  Law.

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      (ii) LIABILITY. If:-

            (1) X is required by any applicable law, as modified by the practice
            of any relevant governmental revenue authority, to make any
            deduction or withholding in respect of which X would not be required
            to pay an additional amount to Y under Section 2(d)(i)(4);

            (2) X does not so deduct or withhold; and

            (3) a liability resulting from such Tax is assessed directly against
            X,

      then, except to the extent Y has satisfied or then satisfies the liability
      resulting from such Tax, Y will promptly pay to X the amount of such
      liability (including any related liability for interest, but including any
      related liability for penalties only if Y has failed to comply with or
      perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

(e) DEFAULT INTEREST; OTHER AMOUNTS. Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction,
a party that defaults in the performance of any payment obligation will, to the
extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

3. REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:--

(a) BASIC REPRESENTATIONS.

      (i) STATUS. It is duly organised and validly existing under the laws of
      the jurisdiction of its organisation or incorporation and, if relevant
      under such laws, in good standing;

      (ii) POWERS. It has the power to execute this Agreement and any other
      documentation relating to this Agreement to which it is a party, to
      deliver this Agreement and any other documentation relating to this
      Agreement that it is required by this Agreement to deliver and to perform
      its obligations under this Agreement and any obligations it has under any
      Credit Support Document to which it is a party and has taken all necessary
      action to authorise such execution, delivery and performance;

      (iii) NO VIOLATION OR CONFLICT. Such execution, delivery and performance
      do not violate or conflict with any law applicable to it, any provision of
      its constitutional documents, any order or judgment of any court or other
      agency of government applicable to it or any of its assets or any
      contractual restriction binding on or affecting it or any of its assets;

      (iv) CONSENTS. All governmental and other consents that are required to
      have been obtained by it with respect to this Agreement or any Credit
      Support Document to which it is a party have been obtained and are in full
      force and effect and all conditions of any such consents have been
      complied with; and

      (v) OBLIGATIONS BINDING. Its obligations under this Agreement and any
      Credit Support Document to which it is a party constitute its legal, valid
      and binding obligations, enforceable in accordance with their respective
      terms (subject to applicable bankruptcy, reorganisation, insolvency,
      moratorium or similar laws affecting creditors' rights generally and
      subject, as to enforceability, to equitable principles of general
      application (regardless of whether enforcement is sought in a proceeding
      in equity or at law)).

                                        3                           ISDA(R) 1992
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(b) ABSENCE OF CERTAIN EVENTS. No Event of Default or Potential Event of Default
or, to its knowledge, Termination Event with respect to it has occurred and is
continuing and no such event or circumstance would occur as a result of its
entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

(c) ABSENCE OF LITIGATION. There is not pending or, to its knowledge, threatened
against it or any of its Affiliates any action, suit or proceeding at law or in
equity or before any court, tribunal, governmental body, agency or official or
any arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a
party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

(d) ACCURACY OF SPECIFIED INFORMATION. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e) PAYER TAX REPRESENTATION. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(e) is accurate and true.

(f) PAYEE TAX REPRESENTATIONS. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(f) is accurate and true.

4. AGREEMENTS

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party:--

(a) FURNISH SPECIFIED INFORMATION. It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs:--

      (i) any forms, documents or certificates relating to taxation specified in
      the Schedule or any Confirmation;

      (ii) any other documents specified in the Schedule or any Confirmation;
      and

      (iii) upon reasonable demand by such other party, any form or document
      that may be required or reasonably requested in writing in order to allow
      such other party or its Credit Support Provider to make a payment under
      this Agreement or any applicable Credit Support Document without any
      deduction or withholding for or on account of any Tax or with such
      deduction or withholding at a reduced rate (so long as the completion,
      execution or submission of such form or document would not materially
      prejudice the legal or commercial position of the party in receipt of such
      demand), with any such form or document to be accurate and completed in a
      manner reasonably satisfactory to such other party and to be executed and
      to be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if
none is specified, as soon as reasonably practicable.

(b) MAINTAIN AUTHORISATIONS. It will use all reasonable efforts to maintain in
full force and effect all consents of any governmental or other authority that
are required to be obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future.

(c) COMPLY WITH LAWS. It will comply in all material respects with all
applicable laws and orders to which it may be subject if failure so to comply
would materially impair its ability to perform its obligations under this
Agreement or any Credit Support Document to which it is a party.

(d) TAX AGREEMENT. It will give notice of any failure of a representation made
by it under Section 3(f) to be accurate and true promptly upon learning of such
failure.

(e) PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated,

                                        4                           ISDA(R) 1992
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organised, managed and controlled, or considered to have its seat, or in which a
branch or office through which it is acting for the purpose of this Agreement is
located ("Stamp Tax Jurisdiction") and will indemnify the other party against
any Stamp Tax levied or imposed upon the other party or in respect of the other
party's execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

5. EVENTS OF DEFAULT AND TERMINATION EVENTS

(a) EVENTS OF DEFAULT. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any of the following events constitutes an event of default (an
"Event of Default") with respect to such party:--

      (i) FAILURE TO PAY OR DELIVER. Failure by the party to make, when due, any
      payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
      required to be made by it if such failure is not remedied on or before the
      third Local Business Day after notice of such failure is given to the
      party;

      (ii) BREACH OF AGREEMENT. Failure by the party to comply with or perform
      any agreement or obligation (other than an obligation to make any payment
      under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give
      notice of a Termination Event or any agreement or obligation under Section
      4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party
      in accordance with this Agreement if such failure is not remedied on or
      before the thirtieth day after notice of such failure is given to the
      party;

      (iii) CREDIT SUPPORT DEFAULT.

            (1) Failure by the party or any Credit Support Provider of such
            party to comply with or perform any agreement or obligation to be
            complied with or performed by it in accordance with any Credit
            Support Document if such failure is continuing after any applicable
            grace period has elapsed;

            (2) the expiration or termination of such Credit Support Document or
            the failing or ceasing of such Credit Support Document to be in full
            force and effect for the purpose of this Agreement (in either case
            other than in accordance with its terms) prior to the satisfaction
            of all obligations of such party under each Transaction to which
            such Credit Support Document relates without the written consent of
            the other party; or

            (3) the party or such Credit Support Provider disaffirms, disclaims,
            repudiates or rejects, in whole or in part, or challenges the
            validity of, such Credit Support Document;

      (iv) MISREPRESENTATION. A representation (other than a representation
      under Section 3(e) or (f)) made or repeated or deemed to have been made or
      repeated by the party or any Credit Support Provider of such party in this
      Agreement or any Credit Support Document proves to have been incorrect or
      misleading in any material respect when made or repeated or deemed to have
      been made or repeated;

      (v) DEFAULT UNDER SPECIFIED TRANSACTION. The party, any Credit Support
      Provider of such party or any applicable Specified Entity of such party
      (1) defaults under a Specified Transaction and, after giving effect to any
      applicable notice requirement or grace period, there occurs a liquidation
      of, an acceleration of obligations under, or an early termination of, that
      Specified Transaction, (2) defaults, after giving effect to any applicable
      notice requirement or grace period, in making any payment or delivery due
      on the last payment, delivery or exchange date of, or any payment on early
      termination of, a Specified Transaction (or such default continues for at
      least three Local Business Days if there is no applicable notice
      requirement or grace period) or (3) disaffirms, disclaims, repudiates or
      rejects, in whole or in part, a Specified Transaction (or such action is
      taken by any person or entity appointed or empowered to operate it or act
      on its behalf);

      (vi) CROSS DEFAULT. If "Cross Default" is specified in the Schedule as
      applying to the party, the occurrence or existence of (1) a default, event
      of default or other similar condition or event (however

                                        5                           ISDA(R) 1992
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      described) in respect of such party, any Credit Support Provider of such
      party or any applicable Specified Entity of such party under one or more
      agreements or instruments relating to Specified Indebtedness of any of
      them (individually or collectively) in an aggregate amount of not less
      than the applicable Threshold Amount (as specified in the Schedule) which
      has resulted in such Specified Indebtedness becoming, or becoming capable
      at such time of being declared, due and payable under such agreements or
      instruments, before it would otherwise have been due and payable or (2) a
      default by such party, such Credit Support Provider or such Specified
      Entity (individually or collectively) in making one or more payments on
      the due date thereof in an aggregate amount of not less than the
      applicable Threshold Amount under such agreements or instruments (after
      giving effect to any applicable notice requirement or grace period);

      (vii) BANKRUPTCY. The party, any Credit Support Provider of such party or
      any applicable Specified Entity of such party:--

            (1) is dissolved (other than pursuant to a consolidation,
            amalgamation or merger); (2) becomes insolvent or is unable to pay
            its debts or fails or admits in writing its inability generally to
            pay its debts as they become due; (3) makes a general assignment,
            arrangement or composition with or for the benefit of its creditors;
            (4) institutes or has instituted against it a proceeding seeking a
            judgment of insolvency or bankruptcy or any other relief under any
            bankruptcy or insolvency law or other similar law affecting
            creditors' rights, or a petition is presented for its winding-up or
            liquidation, and, in the case of any such proceeding or petition
            instituted or presented against it, such proceeding or petition (A)
            results in a judgment of insolvency or bankruptcy or the entry of an
            order for relief or the making of an order for its winding-up or
            liquidation or (B) is not dismissed, discharged, stayed or
            restrained in each case within 30 days of the institution or
            presentation thereof; (5) has a resolution passed for its
            winding-up, official management or liquidation (other than pursuant
            to a consolidation, amalgamation or merger); (6) seeks or becomes
            subject to the appointment of an administrator, provisional
            liquidator, conservator, receiver, trustee, custodian or other
            similar official for it or for all or substantially all its assets;
            (7) has a secured party take possession of all or substantially all
            its assets or has a distress, execution, attachment, sequestration
            or other legal process levied, enforced or sued on or against all or
            substantially all its assets and such secured party maintains
            possession, or any such process is not dismissed, discharged, stayed
            or restrained, in each case within 30 days thereafter; (8) causes or
            is subject to any event with respect to it which, under the
            applicable laws of any jurisdiction, has an analogous effect to any
            of the events specified in clauses (1) to (7) (inclusive); or (9)
            takes any action in furtherance of, or indicating its consent to,
            approval of, or acquiescence in, any of the foregoing acts; or

      (viii) MERGER WITHOUT ASSUMPTION. The party or any Credit Support Provider
      of such party consolidates or amalgamates with, or merges with or into, or
      transfers all or substantially all its assets to, another entity and, at
      the time of such consolidation, amalgamation, merger or transfer:--

            (1) the resulting, surviving or transferee entity fails to assume
            all the obligations of such party or such Credit Support Provider
            under this Agreement or any Credit Support Document to which it or
            its predecessor was a party by operation of law or pursuant to an
            agreement reasonably satisfactory to the other party to this
            Agreement; or

            (2) the benefits of any Credit Support Document fail to extend
            (without the consent of the other party) to the performance by such
            resulting, surviving or transferee entity of its obligations under
            this Agreement.

(b) TERMINATION EVENTS. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes an Illegality if the
event is specified in (i) below, a Tax Event if the event is specified in (ii)
below or a Tax Event Upon Merger if the event is specified in (iii) below, and,
if specified to be applicable, a Credit Event

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Upon Merger if the event is specified pursuant to (iv) below or an Additional
Termination Event if the event is specified pursuant to (v) below:--

      (i) ILLEGALITY. Due to the adoption of, or any change in, any applicable
      law after the date on which a Transaction is entered into, or due to the
      promulgation of, or any change in, the interpretation by any court,
      tribunal or regulatory authority with competent jurisdiction of any
      applicable law after such date, it becomes unlawful (other than as a
      result of a breach by the party of Section 4(b)) for such party (which
      will be the Affected Party):--

            (1) to perform any absolute or contingent obligation to make a
            payment or delivery or to receive a payment or delivery in respect
            of such Transaction or to comply with any other material provision
            of this Agreement relating to such Transaction; or

            (2) to perform, or for any Credit Support Provider of such party to
            perform, any contingent or other obligation which the party (or such
            Credit Support Provider) has under any Credit Support Document
            relating to such Transaction;

      (ii) TAX EVENT. Due to (x) any action taken by a taxing authority, or
      brought in a court of competent jurisdiction, on or after the date on
      which a Transaction is entered into (regardless of whether such is taken
      or brought with respect to a party to this Agreement) or (y) a Change in
      Tax Law, the party (which will be the Affected Party) will, or there is a
      substantial likelihood that it will, on the next succeeding Scheduled
      Payment Date (1) be required to pay to the other party an additional
      amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
      in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
      receive a payment from which an amount is required to be deducted or
      withheld for or on account of a Tax (except in respect of interest under
      Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be
      paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason
      of Section 2(d)(i)(4)(A) or (B));

      (iii) TAX EVENT UPON MERGER. The party (the "Burdened Party") on the next
      succeeding Scheduled Payment Date will either (1) be required to pay an
      additional amount in respect of an Indemnifiable Tax under Section
      2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or
      6(e)) or (2) receive a payment from which an amount has been deducted or
      withheld for or on account of any Indemnifiable Tax in respect of which
      the other party is not required to pay an additional amount (other than by
      reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a
      party consolidating or amalgamating with, or merging with or into, or
      transferring all or substantially all its assets to, another entity (which
      will be the Affected Party) where such action does not constitute an event
      described in Section 5(a)(viii);

      (iv) CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger" is specified
      in the Schedule as applying to the party, such party ("X"), any Credit
      Support Provider of X or any applicable Specified Entity of X consolidates
      or amalgamates with, or merges with or into, or transfers all or
      substantially all its assets to, another entity and such action does not
      constitute an event described in Section 5(a)(viii) but the
      creditworthiness of the resulting, surviving or transferee entity is
      materially weaker than that of X, such Credit Support Provider or such
      Specified Entity, as the case may be, immediately prior to such action
      (and, in such event, X or its successor or transferee, as appropriate,
      will be the Affected Party); or

      (v) ADDITIONAL TERMINATION EVENT. If any "Additional Termination Event" is
      specified in the Schedule or any Confirmation as applying, the occurrence
      of such event (and, in such event, the Affected Party or Affected Parties
      shall be as specified for such Additional Termination Event in the
      Schedule or such Confirmation).

(c) EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an Event
of Default.

                                        7                           ISDA(R) 1992
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6. EARLY TERMINATION

(a) RIGHT TO TERMINATE FOLLOWING EVENT OF DEFAULT. If at any time an Event of
Default with respect to a party (the "Defaulting Party") has occurred and is
then continuing, the other party (the "Non-defaulting Party") may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however,
"Automatic Early Termination" is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

      (i) NOTICE. If a Termination Event occurs, an Affected Party will,
      promptly upon becoming aware of it, notify the other party, specifying the
      nature of that Termination Event and each Affected Transaction and will
      also give such other information about that Termination Event as the other
      party may reasonably require.

      (ii) TRANSFER TO AVOID TERMINATION EVENT. If either an Illegality under
      Section 5(b)(i)(1) or a Tax Event occurs and there is only one Affected
      Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
      Affected Party, the Affected Party will, as a condition to its right to
      designate an Early Termination Date under Section 6(b)(iv), use all
      reasonable efforts (which will not require such party to incur a loss,
      excluding immaterial, incidental expenses) to transfer within 20 days
      after it gives notice under Section 6(b)(i) all its rights and obligations
      under this Agreement in respect of the Affected Transactions to another of
      its Offices or Affiliates so that such Termination Event ceases to exist.

      If the Affected Party is not able to make such a transfer it will give
      notice to the other party to that effect within such 20 day period,
      whereupon the other party may effect such a transfer within 30 days after
      the notice is given under Section 6(b)(i).

      Any such transfer by a party under this Section 6(b)(ii) will be subject
      to and conditional upon the prior written consent of the other party,
      which consent will not be withheld if such other party's policies in
      effect at such time would permit it to enter into transactions with the
      transferee on the terms proposed.

      (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)(1) or a
      Tax Event occurs and there are two Affected Parties, each party will use
      all reasonable efforts to reach agreement within 30 days after notice
      thereof is given under Section 6(b)(i) on action to avoid that Termination
      Event.

      (iv) RIGHT TO TERMINATE. If:--

            (1) a transfer under Section 6(b)(ii) or an agreement under Section
            6(b)(iii), as the case may be, has not been effected with respect to
            all Affected Transactions within 30 days after an Affected Party
            gives notice under Section 6(b)(i); or

            (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon
            Merger or an Additional Termination Event occurs, or a Tax Event
            Upon Merger occurs and the Burdened Party is not the Affected Party,

      either party in the case of an Illegality, the Burdened Party in the case
      of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
      or an Additional Termination Event if there is more than one Affected
      Party, or the party which is not the Affected Party in the case of a
      Credit Event Upon Merger or an Additional Termination Event if there is
      only one Affected Party may, by not more than 20 days notice to the other
      party and provided that the relevant Termination Event is then

                                        8                           ISDA(R) 1992
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      continuing, designate a day not earlier than the day such notice is
      effective as an Early Termination Date in respect of all Affected
      Transactions.

(c) EFFECT OF DESIGNATION.

      (i) If notice designating an Early Termination Date is given under Section
      6(a) or (b), the Early Termination Date will occur on the date so
      designated, whether or not the relevant Event of Default or Termination
      Event is then continuing.

      (ii) Upon the occurrence or effective designation of an Early Termination
      Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in
      respect of the Terminated Transactions will be required to be made, but
      without prejudice to the other provisions of this Agreement. The amount,
      if any, payable in respect of an Early Termination Date shall be
      determined pursuant to Section 6(e).

(d) CALCULATIONS.

      (i) STATEMENT. On or as soon as reasonably practicable following the
      occurrence of an Early Termination Date, each party will make the
      calculations on its part, if any, contemplated by Section 6(e) and will
      provide to the other party a statement (1) showing, in reasonable detail,
      such calculations (including all relevant quotations and specifying any
      amount payable under Section 6(e)) and (2) giving details of the relevant
      account to which any amount payable to it is to be paid. In the absence of
      written confirmation from the source of a quotation obtained in
      determining a Market Quotation, the records of the party obtaining such
      quotation will be conclusive evidence of the existence and accuracy of
      such quotation.

      (ii) PAYMENT DATE. An amount calculated as being due in respect of any
      Early Termination Date under Section 6(e) will be payable on the day that
      notice of the amount payable is effective (in the case of an Early
      Termination Date which is designated or occurs as a result of an Event of
      Default) and on the day which is two Local Business Days after the day on
      which notice of the amount payable is effective (in the case of an Early
      Termination Date which is designated as a result of a Termination Event).
      Such amount will be paid together with (to the extent permitted under
      applicable law) interest thereon (before as well as after judgment) in the
      Termination Currency, from (and including) the relevant Early Termination
      Date to (but excluding) the date such amount is paid, at the Applicable
      Rate. Such interest will be calculated on the basis of daily compounding
      and the actual number of days elapsed.

(e) PAYMENTS ON EARLY TERMINATION. If an Early Termination Date occurs, the
following provisions shall apply based on the parties' election in the Schedule
of a payment measure, either "Market Quotation" or "Loss", and a payment method,
either the "First Method" or the "Second Method". If the parties fail to
designate a payment measure or payment method in the Schedule, it will be deemed
that "Market Quotation" or the "Second Method", as the case may be, shall apply.
The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.

      (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
      of Default:--

            (1) FIRST METHOD AND MARKET QUOTATION. If the First Method and
            Market Quotation apply, the Defaulting Party will pay to the
            Non-defaulting Party the excess, if a positive number, of (A) the
            sum of the Settlement Amount (determined by the Non-defaulting
            Party) in respect of the Terminated Transactions and the Termination
            Currency Equivalent of the Unpaid Amounts owing to the
            Non-defaulting Party over (B) the Termination Currency Equivalent of
            the Unpaid Amounts owing to the Defaulting Party.

            (2) FIRST METHOD AND LOSS. If the First Method and Loss apply, the
            Defaulting Party will pay to the Non-defaulting Party, if a positive
            number, the Non-defaulting Party's Loss in respect of this
            Agreement.

            (3) SECOND METHOD AND MARKET QUOTATION. If the Second Method and
            Market Quotation apply, an amount will be payable equal to (A) the
            sum of the Settlement Amount (determined by the

                                        9                           ISDA(R) 1992
<Page>

            Non-defaulting Party) in respect of the Terminated Transactions and
            the Termination Currency Equivalent of the Unpaid Amounts owing to
            the Non-defaulting Party less (B) the Termination Currency
            Equivalent of the Unpaid Amounts owing to the Defaulting Party. If
            that amount is a positive number, the Defaulting Party will pay it
            to the Non-defaulting Party; if it is a negative number, the
            Non-defaulting Party will pay the absolute value of that amount to
            the Defaulting Party.

            (4) SECOND METHOD AND LOSS. If the Second Method and Loss apply, an
            amount will be payable equal to the Non-defaulting Party's Loss in
            respect of this Agreement. If that amount is a positive number, the
            Defaulting Party will pay it to the Non-defaulting Party; if it is a
            negative number, the Non-defaulting Party will pay the absolute
            value of that amount to the Defaulting Party.

      (ii) TERMINATION EVENTS. If the Early Termination Date results from a
      Termination Event:--

            (1) ONE AFFECTED PARTY. If there is one Affected Party, the amount
            payable will be determined in accordance with Section 6(e)(i)(3), if
            Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
            except that, in either case, references to the Defaulting Party and
            to the Non-defaulting Party will be deemed to be references to the
            Affected Party and the party which is not the Affected Party,
            respectively, and, if Loss applies and fewer than all the
            Transactions are being terminated, Loss shall be calculated in
            respect of all Terminated Transactions.

            (2) TWO AFFECTED PARTIES. If there are two Affected Parties:--

                  (A) if Market Quotation applies, each party will determine a
                  Settlement Amount in respect of the Terminated Transactions,
                  and an amount will be payable equal to (I) the sum of (a)
                  one-half of the difference between the Settlement Amount of
                  the party with the higher Settlement Amount ("X") and the
                  Settlement Amount of the party with the lower Settlement
                  Amount ("Y") and (b) the Termination Currency Equivalent of
                  the Unpaid Amounts owing to X less (II) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to Y; and

                  (B) if Loss applies, each party will determine its Loss in
                  respect of this Agreement (or, if fewer than all the
                  Transactions are being terminated, in respect of all
                  Terminated Transactions) and an amount will be payable equal
                  to one-half of the difference between the Loss of the party
                  with the higher Loss ("X") and the Loss of the party with the
                  lower Loss ("Y").

            If the amount payable is a positive number, Y will pay it to X; if
            it is a negative number, X will pay the absolute value of that
            amount to Y.

      (iii) ADJUSTMENT FOR BANKRUPTCY. In circumstances where an Early
      Termination Date occurs because "Automatic Early Termination" applies in
      respect of a party, the amount determined under this Section 6(e) will be
      subject to such adjustments as are appropriate and permitted by law to
      reflect any payments or deliveries made by one party to the other under
      this Agreement (and retained by such other party) during the period from
      the relevant Early Termination Date to the date for payment determined
      under Section 6(d)(ii).

      (iv) PRE-ESTIMATE. The parties agree that if Market Quotation applies an
      amount recoverable under this Section 6(e) is a reasonable pre-estimate of
      loss and not a penalty. Such amount is payable for the loss of bargain and
      the loss of protection against future risks and except as otherwise
      provided in this Agreement neither party will be entitled to recover any
      additional damages as a consequence of such losses.

                                       10                           ISDA(R) 1992
<Page>

7. TRANSFER

Subject to Section 6(b)(ii), neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that:--

(a) a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8. CONTRACTUAL CURRENCY

(a) PAYMENT IN THE CONTRACTUAL CURRENCY. Each payment under this Agreement will
be made in the relevant currency specified in this Agreement for that payment
(the "Contractual Currency"). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner and
in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable
in respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

(b) JUDGMENTS. To the extent permitted by applicable law, if any judgment or
order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such party.
The term "rate of exchange" includes, without limitation, any premiums and costs
of exchange payable in connection with the purchase of or conversion into the
Contractual Currency.

(c) SEPARATE INDEMNITIES. To the extent permitted by applicable law, these
indemnities constitute separate and independent obligations from the other
obligations in this Agreement, will be enforceable as separate and independent
causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained
or claim or proof being made for any other sums payable in respect of this
Agreement.

(d) EVIDENCE OF LOSS. For the purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

                                       11                           ISDA(R) 1992
<Page>

9. MISCELLANEOUS

(a) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

(b) AMENDMENTS. No amendment, modification or waiver in respect of this
Agreement will be effective unless in writing (including a writing evidenced by
a facsimile transmission) and executed by each of the parties or confirmed by an
exchange of telexes or electronic messages on an electronic messaging system.

(c) SURVIVAL OF OBLIGATIONS. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d) REMEDIES CUMULATIVE. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e) COUNTERPARTS AND CONFIRMATIONS.

      (i) This Agreement (and each amendment, modification and waiver in respect
      of it) may be executed and delivered in counterparts (including by
      facsimile transmission), each of which will be deemed an original.

      (ii) The parties intend that they are legally bound by the terms of each
      Transaction from the moment they agree to those terms (whether orally or
      otherwise). A Confirmation shall be entered into as soon as practicable
      and may be executed and delivered in counterparts (including by facsimile
      transmission) or be created by an exchange of telexes or by an exchange of
      electronic messages on an electronic messaging system, which in each case
      will be sufficient for all purposes to evidence a binding supplement to
      this Agreement. The parties will specify therein or through another
      effective means that any such counterpart, telex or electronic message
      constitutes a Confirmation.

(f) NO WAIVER OF RIGHTS. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will
not be presumed to preclude any subsequent or further exercise, of that right,
power or privilege or the exercise of any other right, power or privilege.

(g) HEADINGS. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

10. OFFICES; MULTIBRANCH PARTIES

(a) If Section 10(a) is specified in the Schedule as applying, each party that
enters into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives
payments or deliveries for the purpose of a Transaction without the prior
written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such
Multibranch Party may make and receive payments or deliveries under any
Transaction through any Office listed in the Schedule, and the Office through
which it makes and receives payments or deliveries with respect to a Transaction
will be specified in the relevant Confirmation.

11. EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document

                                       12                           ISDA(R) 1992
<Page>

to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12. NOTICES

(a) EFFECTIVENESS. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:--

      (i) if in writing and delivered in person or by courier, on the date it is
      delivered;

      (ii) if sent by telex, on the date the recipient's answer back is
      received;

      (iii) if sent by facsimile transmission, on the date that transmission is
      received by a responsible employee of the recipient in legible form (it
      being agreed that the burden of proving receipt will be on the sender and
      will not be met by a transmission report generated by the sender's
      facsimile machine);

      (iv) if sent by certified or registered mail (airmail, if overseas) or the
      equivalent (return receipt requested), on the date that mail is delivered
      or its delivery is attempted; or

      (v) if sent by electronic messaging system, on the date that electronic
      message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Local Business Day or that communication is delivered (or
attempted) or received, as applicable, after the close of business on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

(b) CHANGE OF ADDRESSES. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

13. GOVERNING LAW AND JURISDICTION

(a) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the law specified in the Schedule.

(b) JURISDICTION. With respect to any suit, action or proceedings relating to
this Agreement ("Proceedings"), each party irrevocably:--

      (i) submits to the jurisdiction of the English courts, if this Agreement
      is expressed to be governed by English law, or to the non-exclusive
      jurisdiction of the courts of the State of New York and the United States
      District Court located in the Borough of Manhattan in New York City, if
      this Agreement is expressed to be governed by the laws of the State of New
      York; and

      (ii) waives any objection which it may have at any time to the laying of
      venue of any Proceedings brought in any such court, waives any claim that
      such Proceedings have been brought in an inconvenient forum and further
      waives the right to object, with respect to such Proceedings, that such
      court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) SERVICE OF PROCESS. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any

                                       13                           ISDA(R) 1992
<Page>

reason any party's Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service
of process given in the manner provided for notices in Section 12. Nothing in
this Agreement will affect the right of either party to serve process in any
other manner permitted by law.

(d) WAIVER OF IMMUNITIES. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

14. DEFINITIONS

As used in this Agreement:--

"ADDITIONAL TERMINATION EVENT" has the meaning specified in Section 5(b).

"AFFECTED PARTY" has the meaning specified in Section 5(b).

"AFFECTED TRANSACTIONS" means (a) with respect to any Termination Event
consisting of an Illegality, Tax Event or Tax Event Upon Merger, all
Transactions affected by the occurrence of such Termination Event and (b) with
respect to any other Termination Event, all Transactions.

"AFFILIATE" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"APPLICABLE RATE" means:--

(a) in respect of obligations payable or deliverable (or which would have been
but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would
have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d) in all other cases, the Termination Rate.

"BURDENED PARTY" has the meaning specified in Section 5(b).

"CHANGE IN TAX LAW" means the enactment, promulgation, execution or ratification
of, or any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

"CONSENT" includes a consent, approval, action, authorisation, exemption,
notice, filing, registration or exchange control consent.

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

"DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

                                       14                           ISDA(R) 1992
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"DEFAULTING PARTY" has the meaning specified in Section 6(a).

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(b)(iv).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"ILLEGALITY" has the meaning specified in Section 5(b).

"INDEMNIFIABLE TAX" means any Tax other than a Tax that would not be imposed in
respect of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction,
or being or having been organised, present or engaged in a trade or business in
such jurisdiction, or having or having had a permanent establishment or fixed
place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this
Agreement or a Credit Support Document).

"LAW" includes any treaty, law, rule or regulation (as modified, in the case of
tax matters, by the practice of any relevant governmental revenue authority) and
"LAWFUL" and "UNLAWFUL" will be construed accordingly.

"LOCAL BUSINESS DAY" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have

                                       15                           ISDA(R) 1992
<Page>

been required after that date. For this purpose, Unpaid Amounts in respect of
the Terminated Transaction or group of Terminated Transactions are to be
excluded but, without limitation, any payment or delivery that would, but for
the relevant Early Termination Date, have been required (assuming satisfaction
of each applicable condition precedent) after that Early Termination Date is to
be included. The Replacement Transaction would be subject to such documentation
as such party and the Reference Market-maker may, in good faith, agree. The
party making the determination (or its agent) will request each Reference
Market-maker to provide its quotation to the extent reasonably practicable as of
the same day and time (without regard to different time zones) on or as soon as
reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation will
be the quotation remaining after disregarding the highest and lowest quotations.
For this purpose, if more than one quotation has the same highest value or
lowest value, then one of such quotations shall be disregarded. If fewer than
three quotations are provided, it will be deemed that the Market Quotation in
respect of such Terminated Transaction or group of Terminated Transactions
cannot be determined.

"NON-DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

"OFFICE" means a branch or office of a party, which may be such party's head or
home office.

"POTENTIAL EVENT OF DEFAULT" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default

"REFERENCE MARKET-MAKERS" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"RELEVANT JURISDICTION" means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organised, managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"SET-OFF" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

"SETTLEMENT AMOUNT" means, with respect to a party and any Early Termination
Date, the sum of:--

(a) the Termination Currency Equivalent of the Market Quotations (whether
positive or negative) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation is determined; and

(b) such party's Loss (whether positive or negative and without reference to any
Unpaid Amounts) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation cannot be determined or would not (in
the reasonable belief of the party making the determination) produce a
commercially reasonable result.

"SPECIFIED ENTITY" has the meaning specified in the Schedule.

                                       16                           ISDA(R) 1992
<Page>

"SPECIFIED INDEBTEDNESS" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"SPECIFIED TRANSACTION" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) mow existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"STAMP TAX" means any stamp, registration, documentation or similar tax.

"TAX" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

"TAX EVENT" has the meaning specified in Section 5(b).

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

"TERMINATED TRANSACTIONS" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

"TERMINATION CURRENCY EQUIVALENT" means, in respect of any amount denominated in
the Termination Currency, such Termination Currency amount and, in respect of
any amount denominated in a currency other than the Termination Currency (the
"Other Currency"), the amount in the Termination Currency determined by the
party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if
the relevant Market Quotation or Loss (as the case may be), is determined as of
a later date, that later date, with the Termination Currency at the rate equal
to the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the parties.

"TERMINATION EVENT" means an Illegality, a Tax Event or a Tax Event Upon Merger
or, if specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

"TERMINATION RATE" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"UNPAID AMOUNTS" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market

                                       17                           ISDA(R) 1992
<Page>

value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

   CITIBANK CANANDA                    DYNACARE INC. and DYNACARE NORTHWEST INC.
-------------------------------        -----------------------------------------
        (Name of Party)                               (Name of Party)

By:  /s/ Shawn N. [ILLEGIBLE]       By:   /s/ Zbig S. Biskup
   ----------------------------        -----------------------------------------
   Name: Shawn N. [ILLEGIBLE]          Name:  Zbig S. Biskup
   Title: Vice - President             Title: Chief Financial Officer for
   Date:                                      DYNACARE INC. and
                                              DYNACARE NORTHWEST INC.
                                       Date:

By: /s/ Adam Shepherd               By:
   ----------------------------        -----------------------------------------
   Name:  Adam Shepherd, VP            Name:
   Title: GRB/Toronto                  Title:
          (416) 947-2917

                                       18                           ISDA(R) 1992

<PAGE>

                                    SCHEDULE

                                     TO THE

                                MASTER AGREEMENT

                         DATED AS OF FEBRUARY 29, 2000

                                    BETWEEN

                          CITIBANK CANADA ("PARTY A")

                                      AND

                                 DYNACARE INC.

                    AND DYNACARE NORTHWEST INC. ("PARTY B")

                        (AS JOINT AND SEVERAL OBLIGORS)

                                     PART 1

                             TERMINATION PROVISIONS

In this Agreement:

(1) "Specified Entity" does not apply.

(2) "Specified Transaction" will have the meaning specified in Section 14.

(3) The "Cross-Default" provisions of Section 5(a)(vi) will apply to Party A and
each of the parties comprising Party B.

      "Specified Indebtedness" means any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money, other than indebtedness in respect of deposits received.

      "Threshold Amount" means (i) with respect to Party A, Canadian Dollars
10,000,000 if such currency is freely available and otherwise United States
Dollars; (ii) with respect to each of the parties comprising Party B, Canadian
Dollars 10,000,000 if such currency is freely available and otherwise United
States Dollars.

(4) The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will apply to
Party A and to each of the parties comprising Party B.
<Page>
                                     - 2 -

(5) The "Automatic Early Termination" provision of Section 6(a) will not apply
to Party A and each of the parties comprising Party B.

(6) Payments on Early Termination. For the purpose of Section 6(e):

      The Second Method and Market Quotation will apply.

(7) "Termination Currency" means Canadian Dollars, if such currency is specified
and freely available, and otherwise United States Dollars.

(8) Additional Events of Default.

      The following shall constitute Additional Events of Default of Party B
under the Agreement, unless Party A consents to the same in writing and provides
Party B with such written consent waiving such Event of Default:

      (a)   it shall constitute an Additional Event of Default of Party B under
            the Agreement if at any time after execution of this Agreement
            Dynacare Northwest Inc. ceases to be a subsidiary body corporate of
            Dynacare Laboratories Inc.

      (b)   it shall constitute an Additional Event of Default of Party B under
            the Agreement if at any time after execution of this Agreement
            Dynacare Laboratories Inc. ceases to be a subsidiary body corporate
            of The Dynacare Health Group Inc.

Upon the occurrence of any of the events listed in this Section 8(a) - (d)
inclusive, instead of declaring an Event of Default against Party B under the
Agreement, Party A may in lieu thereof, require Party B to enter into a Security
Agreement whereby Party B agrees to deliver collateral acceptable to Party A on
each date (a "Valuation Date") required by the Security Agreement (at least
quarterly, and upon the request of Party A on one (1) Business Day's Notice) in
an amount equivalent to the amount which would be required if the Agreement were
terminated on such Valuation Date and a calculation were done pursuant to
Section 6(e)(i)(3) of the Agreement as if Party B had committed an Event of
Default pursuant to the Agreement. The Security Agreement shall be entered into
within three (3) Business Days of the occurrence of an event listed in Section 8
(a) - (d) inclusive. All calculations therein will be determined by Citibank
Canada as Calculation Agent. In the event that Party B breaches any of the
obligations under the Security Agreement, Party A shall have the right to
declare an Event of Default against Party B.

For the purposes hereof;

"Business Day" shall mean a day on which commercial banks are open for business
in Toronto, Canada.

"Security Agreement" means the Security Agreement provided by Party A to Party B
in Citibank Canada standard form.

(9) Netting Provisions. If an Early Termination Date is designated, amounts
determined in respect of all Terminated Transaction shall, to the fullest extent
permitted by law, be aggregated with and netted against one another in
performing the calculations contemplated
<Page>
                                     - 3 -

by Section 6(e). Any Terminated Transaction(s) that cannot be so aggregated and
netted shall instead be (and is hereby agreed always to have been) governed by,
and subject to, the terms and conditions set out in the relevant
Confirmation(s) with respect to such Transaction(s).

                                     PART 2

                           REPRESENTATIONS OF PARTY A

                              TAX REPRESENTATIONS

(1) PAYER REPRESENTATIONS. For the purpose of Section 3(e) of this Agreement,
Party A will make the following representation:

      It is not required by any applicable law, as modified by the practice of
      any relevant governmental revenue authority, of any Relevant Jurisdiction
      to make any deduction or withholding for or on account of any Tax from any
      payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this
      Agreement) to be made by it to the other party under this Agreement. In
      making this representation, it may rely on (x) the accuracy of any
      representation made by the other party pursuant to Section 3(f) of this
      Agreement; (y) the satisfaction of the agreement contained in Section
      4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness
      of any document provided by the other party pursuant to Section 4(a)(i) or
      4(a)(iii) of this Agreement and (z) the satisfaction of the agreement of
      the other party contained in Section 4(d) of this Agreement, PROVIDED THAT
      it shall not be a breach of this representation where reliance is placed
      on clause (y) and the other party does not deliver a form or document
      under Section 4(a)(iii) by reason of material prejudice to its legal or
      commercial position.

(2) PAYEE REPRESENTATIONS. For the purpose of Section 3(f) of this Agreement,
Party A makes the representation(s) specified below: None.

                           REPRESENTATIONS OF PARTY B

                              TAX REPRESENTATIONS

(1) PAYER REPRESENTATION. For the purpose of Section 3(e) of this Agreement,
each of the parties comprising Party B will make the following representation:

      It is not required by any applicable law, as modified by the practice of
      any relevant governmental revenue authority, of any Relevant Jurisdiction
      to make any deduction or withholding for or on account of any Tax from any
      payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this
      Agreement) to be made by it to the other party under
<Page>
                                     - 4 -

      this Agreement. In making this representation, it may rely on (x) the
      accuracy of any representation made by the other party pursuant to Section
      3(f) of this Agreement; (y) the satisfaction of the agreement contained in
      Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and
      effectiveness of any document provided by the other party pursuant to
      Section 4(a)(i) or 4(a)(iii) of this Agreement and (z) the satisfaction of
      the agreement of the other party contained in Section 4(d) of this
      Agreement, PROVIDED THAT it shall not be a breach of this representation
      where reliance is placed on clause (y) and the other party does not
      deliver a form or document under Section 4(a)(iii) by reason of material
      prejudice to its legal or commercial position.

(2) PAYEE REPRESENTATIONS. For the purpose of Section 3(f) of this Agreement,
each of the parties comprising Party B makes the representation(s) specified
below: None.

                                     PART 3

                        AGREEMENTS TO DELIVER DOCUMENTS

For the purpose of Section 4(a)(i) and (ii) of this Agreement, each party agrees
to deliver the following documents, as applicable:

(1) Tax forms, documents or certificates to be delivered are: N/A

(2) Other documents to be delivered are:

(a)   Certified copies of all documents evidencing necessary corporate and other
      authorizations and approvals with respect to the execution, delivery and
      performance by the party of this Agreement.

      Party required to deliver: Party A & each of the parties comprising Party
      B

      Date by which to be delivered: Upon execution of this Agreement

      Covered by Section 3(d) Representation: Yes

(b)   A certificate of an authorized officer of the party, certifying the names,
      true signatures and authority of the officers of the party signing this
      Agreement.

      Party required to deliver: Party A & each of the parties comprising Party
      B

      Date by which to be delivered: Upon execution of this Agreement

      Covered by Section 3(d) Representation: Yes
<Page>
                                     - 5 -

(c)   An opinion of counsel to the party substantially in the form set forth in
      Exhibit II, and covering such other matters as reasonably requested by the
      receiving party.

      Party required to deliver: Each of the parties comprising Party B

      Date by which to be delivered: Upon execution of this Agreement

      Covered by Section 3(d) Representation: No

(d)   Such other document as the other party may reasonably request in
      connection with each Transaction.

      Party required to deliver: Each of the parties comprising Party B

      Date by which to be delivered: Promptly upon request

      Covered by Section 3(d) Representation: Yes

                                     PART 4

                                 MISCELLANEOUS

(1) Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the Province of Ontario and of Canada applicable
therein.

(2) Process Agent. For the purpose of Section 13(c) of this Agreement:

      Party B appoints as its Process Agent in the Province of Ontario: Dynacare
      Inc., 20 Eglinton Avenue West, Suite 1600, Toronto, Ontario, Canada
      M4R 2R1

(3) Offices. The provisions of Section 10(a) will apply to this Agreement.

(4) Multibranch Party. For the purpose of Section 10(c) of this Agreement:

      Party A is not a Multibranch Party.

      Party B is not a Multibranch Party.

(5) Addresses for Notices. For the purpose of Section 12(a) of this Agreement:

Address for notices or communications to Party A:

      Address:                  Citibank Place
                                123 Front Street West
                                Suite 1900
                                Toronto, Ontario
                                CANADA M5J 2M3
<Page>
                                     - 6 -

      Attention:                        Head of Section,
                                        Treasury Operations

      With a copy to:                   Vice-President in charge,
                                        Risk Management and
                                        Corporate Finance

      Telex No.: 06-23626               Answerback: CITI BANK TOR

      Facsimile No.:                    (416) 947-2972

      Electronic Messaging
        System Details:                 Swift Code: CITICATT

      (For all purposes)

Notices or communications to Party B under the Agreement may be delivered to
either of:

(1)   Dynacare Inc.                     or (2) Dynacare Northwest Inc.
      20 Eglinton Avenue, Suite 1600           1229 Madison Street
      Toronto, Ontario                         Seattle, Washington
      CANADA M4R 2R1                           98104

      Attention: Treasurer

(6) Calculation Agent. The Calculation Agent is Party A, unless otherwise
specified in a Confirmation in relation to the relevant Transaction.

(7) "Affiliate" will have the meaning specified in Section 14 of this Agreement.

(8) Netting of Payments. Subparagraph (ii) of Section 2(c) of this Agreement
will not apply to any Transaction starting from the date of this Agreement.

                                     PART 5

                                OTHER PROVISIONS

(1) Confirmations. Notwithstanding anything to the contrary in the Agreement:

      (a)   The parties hereto agree that with respect to each Transaction
            hereunder a legally binding agreement shall exist from the moment
            that the parties hereto agree on the
<Page>
                                     - 7 -

            essential terms of such Transaction, which the parties anticipate
            will occur by telephone.

      (b)   For each Transaction Party A and Party B agree to enter into
            hereunder, Party A shall promptly send to Party B a Confirmation,
            substantially in the form of Exhibit I setting forth the terms of
            such Transaction including which of the entities comprising Party B
            shall be responsible for the payment obligations as regards such
            Transaction pursuant to any agreement between the two Dynacare
            entities. Party B shall execute and return the Confirmation to Party
            A or request correction of any error within three Business Days of
            receipt. Failure of Party B to respond within such period shall not
            affect the validity or enforceability of such Transaction and shall
            be deemed to be an affirmation of such terms.

(2) ADDITIONAL AGREEMENTS. Each party agrees, upon learning of the occurrence of
any event or commencement of any condition that constitutes (or that with the
giving of notice or passage of time or both would constitute) an Event of
Default or Termination Event with respect to the party, promptly to give the
other party notice of such event or condition (or, in lieu of giving notice of
such event or condition in the case of an event or condition that with the
giving of notice or passage of time or both would constitute an Event of Default
or Termination Event with respect to the party, to cause such event or condition
to cease to exist before becoming an Event of Default or Termination Event).

(3) ESCROW PAYMENTS. If by reason of the time difference between the cities in
which payments are to be made, it is not possible for simultaneous payments to
be made on any date on which both parties are required to make payment
hereunder, or, if either party requires, on any date on which both parties are
required to make payments hereunder, confirmation that a payment has been
received by it prior to the making of a payment to the other party, either party
may at its option and in its sole discretion by giving written notice at least 2
weeks prior to the payment date, notify the other party that payments on that
date are to be made in escrow. In this case deposit of the payments due on that
date shall be made if not simultaneously then, by 2:00 p.m. (local time at the
place for the earlier payment) on that date with an escrow agent selected by the
party giving the notice, accompanied by irrevocable payment instructions (i) to
release the deposited payment to the intended recipient upon receipt by the
escrow agent of the required deposit of the corresponding payment from the other
party on the same date accompanied by irrevocable payment instructions to the
same effect or (ii) if the required deposit of the corresponding payment is not
made on that same date, to return the payment deposited to the party that paid
it into escrow. The party that elects to have payments made in escrow shall pay
the costs of the escrow arrangements and shall, if the payments are not to be
simultaneous, cause those arrangements to provide that the intended recipient of
the payment due to be deposited first shall be entitled to interest on that
deposited payment for each day in the period of its deposit, at the rate offered
by the escrow agent for that day for overnight deposits in the relevant currency
in the office where it holds that deposited payment (at 11:00 a.m. local time on
that day), if that payment is not released by 5:00 p.m. local time on the date
it is deposited for any reason other than the intended recipient's failure to
make the escrow deposit it is required to make hereunder by the time that it is
required to make it, in which event such interest shall be payable to the party
who deposited that payment.
<Page>
                                     - 8 -

(4) ILLEGALITY. For purposes of Section 5(b)(i), the obligation of a party to
comply with any directive or similar order of any applicable governmental agency
or authority (whether or not having the force of law) which has the result
referred to in Section 5(b)(i) shall be deemed to be an "Illegality".

(5) EQUIVALENCY CLAUSE. For purposes of disclosure pursuant to the INTEREST ACT
(Canada), the yearly rate of interest to which any rate of interest payable
under this Agreement, which is to be calculated on any basis other than a full
calendar year, is equivalent may be determined by multiplying such rate by a
fraction the numerator of which is the number of days in the calendar year in
which the period for which interest at such rate is payable ends and the
denominator of which is the number of days comprising such other basis.

(6) Section 6 of this Agreement shall be amended by the addition, after Section
6(e), of the following new Section 6(f):

      SET OFF. Any amount (the "Early Termination Amount") payable to one party
      ("the Payee") by the other party ("the Payer") under Section 6(e), in
      circumstances where there is a Defaulting Party or one Affected Party in
      the case where a Termination Event under Section 5(b)(iv) or (v) has
      occurred, will, at the option of the party ("X") other than the Defaulting
      Party or the Affected Party ("Y") (and without prior notice to Y), be
      reduced by its set-off against any amount(s) (the "Other Agreement
      Amount") payable (whether at such time or in the future or upon the
      occurrence of a contingency) by the Payee to the Payer (irrespective of
      the currency, place of payment or booking office of the obligation) under
      any other agreement(s) between the Payee and the Payer or instruments(s)
      or undertakings(s) issued or executed by one party to, or in favour of,
      the other party, but in any event excluding (i) the 10 3/4% Senior Notes
      due 2006 of Dynacare Inc. and (ii) any amounts not yet payable under a
      guarantee. The Other Agreement Amount will be discharged in all respects
      to the extent it is so set-off. X will give notice to Y of any set-off
      effected under this Section 6(f)(i). For this purpose, either the Early
      Termination Amount or the Other Agreement Amount (or the relevant portion
      of such amounts) may be converted by X into the currency in which the
      other is denominated at the rate of exchange at which such party is able,
      acting in a reasonable manner and in good faith, to purchase the relevant
      amount of such currency. If an obligation is unascertained, X may in good
      faith estimate that obligation and set-off in respect of the estimate,
      subject to the relevant party accounting to the other when the obligation
      is ascertained. Nothing in this Section 6(f)(i) shall be effective to
      create a charge or other security interest. This Section 6(f)(i) shall be
      without prejudice and in addition to any right of set-off, combination of
      accounts, lien or other right to which any party is at any time otherwise
      entitled (whether by operation of law, contract or otherwise). For the
      purposes of this clause, any Other Agreement Amount which is payable in
      the future but which until the date (the "Future Date") on which it will
      be payable does not bear interest, shall be treated as owing on the date
      (the "Set-Off Date") that such right of set-off is exercised by X only in
      an amount equal to the present value thereof as at the Set-Off Date, the
      amount of which
<Page>
                                     - 9 -

      present value shall be calculated by discounting the amount of such Other
      Agreement Amount as at the Future Date to the Set-Off Date at the
      Non-Default Rate of Party A in effect on the date of set-off and
      compounded daily. Additionally, for the purposes of this clause such
      present value amount shall be treated as bearing interest from the Set-Off
      Date to the Future Date at a rate of interest equal to such Non-Default
      Rate, compounded daily, and as being prepayable in whole or in part,
      without prior notice or bonus of interest, by the exercise of such right
      of set-off. Accordingly, the amount of such Other Agreement Amount capable
      of being paid by set-off shall be such present value amount and the
      payment by the exercise of such right of set-off of any part of such
      present value amount shall have the effect of discharging the obligation
      to pay on the Future Date an amount of such Other Agreement Amount equal
      to the amount of such present value amount so paid by set-off plus an
      amount equal to notional interest thereon calculated at the said rate and
      compounded daily from the Set-Off Date to the Future Date.

(7) SUBMISSION TO JURISDICTION. In substitution for the provision of Section
13(b)(i), each party irrevocably submits to the non-exclusive jurisdiction of
the courts of competent jurisdiction in the Province of Ontario.

(8) SEVERABILITY. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of the Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction unless such severance
shall substantially impair the benefits of the remaining portions of this
Agreement or changes the reciprocal obligations of the parties. The parties
hereto shall endeavor in good faith negotiations to replace the prohibited or
unenforceable provision with a valid provision, the economic effect of which
comes as close as possible to that of the prohibited or unenforceable provision.

(9) Section 3 of this Agreement is hereby amended by adding at the end thereof
the following subsection:

      (g)   Relationship Between Parties.

            (i)   It is not relying on any advice, statements or recommendations
                  (whether written or oral) of the other party regarding any
                  Transaction, other than the written representations expressly
                  made by that other party in this Agreement and in the
                  Confirmation in respect of that Transaction;

            (ii)  In respect of each Transaction under this Agreement,

                  (1)   it has the capacity to evaluate (internally or through
                        independent professional advice) that Transaction
                        (including decisions regarding the appropriateness or
                        suitability of that
<Page>
                                     - 10 -

                        Transaction) and has made its own decision to enter into
                        that Transaction;

                        (2) it understands the terms, conditions and risks of
                        that Transaction and is willing to accept those terms
                        and conditions and to assume (financially and otherwise)
                        those risks;

                        (3) it is entering into that Transaction as principal
                        and not as agent for any other party;

                        (4) it acknowledges and agrees that the other Party is
                        not acting as a fiduciary or advisor to it in connection
                        with that Transaction; and

                        (5) it is entering in to that Transaction for the
                        purposes of managing its borrowings or investments,
                        hedging its underlying assets or liabilities or in
                        connection with a line of business, and not for purposes
                        of speculation.

(10) JOINT AND SEVERAL LIABILITY. Each of Dynacare Inc. and Dynacare Northwest
Inc. shall be jointly and severally liable for each representation, covenant and
obligation of the other pursuant to the Agreement. For the purposes of clarity,
an Event of Default or Termination Event of either of Dynacare Inc. and Dynacare
Northwest Inc. pursuant to the Agreement shall be deemed to be an Event of
Default or Termination Event of both of them respectively and Party A shall be
entitled to enforce its rights arising under this Agreement upon the happening
of such event against either of Dynacare Inc. or Dynacare Northwest Inc. without
obtaining the prior consent of, or serving notice on the other or joining the
other as an additional party in any proceedings for such purposes.
<Page>
                                     - 11 -

DYNACARE INC.                           DYNACARE NORTHWEST INC.

By:    /s/ Zbig S. Biskup               By:    /s/ Zbig S. Biskup
      ------------------------------           ---------------------------------

Name:  Zbig S. Biskup                   Name:  Zbig S. Biskup
      ------------------------------           ---------------------------------

Title: Chief Financial Officer          Title: Chief Financial Officer
      ------------------------------           ---------------------------------

CITIBANK CANADA

By:    /s/ [Illegible]
      ------------------------------

Name:  [Illegible]
      ------------------------------

Title: Vice-President
      ------------------------------

By:    /s/ Adam Shepherd
      ------------------------------

Name:         Adam Shepherd, VP
               GRB/Toronto
             (416) 947-2917
      ------------------------------

Title:
      ------------------------------
<Page>

                                   EXHIBIT I

                                  CONFIRMATION

Date:                       ____________________________

To:                         ____________________________

Attention:                  ____________________________

From:                       Citibank Canada
                            123 Front Street West
                            Citibank Place
                            Suite 1900
                            Toronto, Ontario
                            M5J 2M3

            The purpose of this letter agreement is to set forth the terms and
conditions of the Transaction entered into between us on the Trade Date referred
to below. This letter constitutes a "Confirmation" as referred to in the Master
Agreement specified below.

            The definitions and provisions contained in the 1991 ISDA
Definitions (as published by the International Swap Dealers Association, Inc.)
are incorporated into this Confirmation. In the event of any inconsistency
between those definitions and provisions and this Confirmation, this
Confirmation will govern.

            1. This Confirmation supplements, forms a part of, and is subject
to, the Master Agreement dated as of _________________________ (the "Agreement")
between you and us. All provisions contained in the Agreement shall govern this
Confirmation except as expressly modified below.

            2. The terms of the particular Transaction to which this
Confirmation relates are as follows:

[Type of Transaction: [Rate Protection Transaction, Rate Cap Transaction, Rate
Floor Transaction or Rate Collar Transaction]]

Office through which you are acting:

[Notional Amount:]
<Page>
                                     - 2 -

Trade Date:

Effective Date:

Termination Date:

Fixed Amounts:

      Fixed Rate Payer: [name of party]

      [Fixed Rate Payer Currency Amount:]

      Fixed Rate Payer Payment Dates: [or Period End Dates, if Delayed Payment
            or Early Payment applies:]

      Modified Following Business Day Convention applies

      Fixed Amount: [or Fixed Rate and Fixed Rate Day Count Fraction]:

Floating Amounts:

      Floating Rate Payer: [name of party]

      [Floating Rate Payer Currency Amount:]

      [Cap Rate; Floor Rate:            ]

      Floating Rate Payer Payment Dates: [or Period End Dates, if Delayed
            Payment or Early Payment applies:]

      Modified Following Business Day Convention applies to both Reset Dates and
            Payment Dates

      [Floating Rate for initial Calculation Period:]

      Floating Rate Option:

      Designated Maturity:

      Spread: [plus/minus    %] [None]

      Floating Rate Day Count Fraction:
<Page>
                                     - 3 -

      Reset Dates:

      [Rate Cut-off Dates:]

      [Method of Averaging:] [Unweighted/Weighted Average Rate]

      Compounding: Applicable/Inapplicable

        [Compounding Dates:]

[Initial Exchange:

        Initial Exchange Date:

        Fixed Rate Payer Initial Exchange Amount:

        Floating Rate Payer Initial Exchange Amount:

Final Exchange:

        Final Exchange Date:

        Fixed Rate Payer Final Exchange Amount:

        Floating Rate Payer Final Exchange Amount:]

[Business Days for [first currency]:

Business Days for [second currency]:]

Calculation Agent:

Other Provisions: [             ]

            [3.                 agrees to provide the following Credit Support
Document [or agrees to provide the following in accordance with [specify Credit
Support Document]:]

            [4. Additional closing documents: ________________________________]
<Page>
                                     - 4 -

            5. Account Details:

Payments to Fixed Rate Payer:

      Account for payments in [first currency]:

      Account for payments in [second currency]:

Payments to Floating Rate Payer:

      Account for payments in [first currency]:

      Account for payments in [second currency]:

            [6. Offices:

            (a) The Office of Fixed Rate Payer for the Transaction is          ;
and

            (b) The Office of Floating Rate Payer for the Transaction is      .]

            [7. Broker/Arranger:]
<Page>
                                     - 5 -

            Please confirm that the foregoing correctly sets forth the terms of
our agreement by executing the copy of this Confirmation enclosed for that
purpose and returning it to us.

                                        CITIBANK CANADA

                                        By:
                                               ---------------------------------

                                        Name:
                                               ---------------------------------

                                        Title:          VICE PRESIDENT
                                               ---------------------------------

                                        By:    _________________________________

                                        Name:  _________________________________

                                        Title: _________________________________

Accepted and confirmed as of the date first written:

______________________________________

By:    _______________________________

Name:  _______________________________

Title: _______________________________

By:    _______________________________

Name:  _______________________________

Title: _______________________________
<Page>

                                   EXHIBIT II

                       FORM OF OPINION OF COUNSEL FOR [X]

                      [To be provided by Dynacare Inc. and
                            Dynacare Northwest Inc.]<Page>

                                                                   Exhibit 10.12

                      [TD BANK FINANCIAL GROUP LETTERHEAD]

                                                Telephone No. (416) 982-7770
                                                         Fax: (416) 982-6076

September 26, 2001

The Dynacare Health Group Inc.
20 Eglinton Avenue West, Suite 1600
Toronto, Ontario M4R 2H1

Attention: Zbig Biskup
           Senior Vice President and Chief Financial Officer
           -------------------------------------------------

Dear Sirs:

We are pleased to offer the Borrower the following Demand Operating Facility
(the "Facility"), subject to the terms and conditions outlined below.

BORROWER:               The Dynacare Health Group Inc. (herein called the
                        "Borrower")

LENDER:                 The Toronto-Dominion Bank (the "Bank"), through its
                        Toronto Dominion Centre branch, in Toronto, Ontario.

CREDIT LIMIT:           Amounts outstanding under the Facility will at all times
                        be no greater than:
                              CDN$5,000,000 [or its US$ Equivalent]

BORROWING
OPTIONS:                The Facility is available at the Borrower's option by
                        way of:
                        - Prime Rate Based Loans in CDN$ ("Prime Based Loans")
                        - Banker's Acceptances in CDN$ ("B/As")
                        - United States Base Rate Loans in US$ ("USBR Loans")
                        - Stand-by Letters of Guarantee in CDN$ ("L/Gs")

ANCILLARY
FACILITIES:             In addition to the Facility, the Bank has made available
                        to the Borrower the following ancillary facilities (the
                        "Ancillary Facilities") which the Borrower agrees will
                        not be used for speculative purposes.

                        i) Spot Foreign Exchange Facility to enter into up to
                           US$4,000,000 for settlement on a spot basis.

PURPOSE                 The Facility is to be used to fund working capital only.

                              TD ACCESS
                              TELEPHONE BANKING

                              24 hours, 7 days a week
                              1-800-9TD-BANK
                              (1-800-983-2265)

<Page>

DRAWDOWN:               Facility is available on a revolving basis. Terms for
                        Banker's Acceptances and other similar details are set
                        out in the Schedule "A" attached hereto.

REPAYMENT:              On demand. If the Bank demands repayment, the Borrower
                        will pay to the Bank all amounts outstanding under the
                        Facility, including without limitation, the amount of
                        all unmatured B/As and the amount of all drawn and
                        undrawn L/Gs.

INTEREST RATES
AND FEES:               For the Borrowing Options available, advances shall bear
                        interest and fees are as follows:
                        - Prime Based Loans - Prime Rate + 2% per annum
                        - B/As - Stamping Fee at 3.50% per annum
                        - USBR Loans - USBR + 2% per annum
                        - L/Gs - 3.50% per annum

                        Upon receipt of the Security outlined below; the
                        interest and fees will be as follows:
                        - Prime Based Loans - Prime Rate + 0% per annum
                        - B/As - Stamping Fee at 1.50% per annum
                        - USBR Loans - USBR + 0% per annum
                        - L/Gs - l.50% per annum

                        Information on Interest Rate Definitions, Interest
                        Calculations and Payment is set out in the Schedule "A"
                        attached hereto.

ARRANGEMENT
FEE                     During May 2001, the Borrower paid a non-refundable
                        arrangement fee (in conjunction with Dynacare-Gamma
                        Laboratory Partnership) of $15,000.

SECURITY                The following security shall be provided to the Bank no
                        later than March 15, 2002, shall support all present and
                        future indebtedness and liability of the Borrower and
                        the grantor of the security to the Bank including
                        without limitation indebtedness and liability under
                        guarantees, foreign exchange contracts, cash management
                        products, and derivative contracts, and shall be on the
                        Bank's standard form, supported by resolutions and
                        solicitor's opinion, all acceptable to the Bank:

                        a) $5,000,000 limited Guarantee from Dynacare
                           Laboratories Limited Partnership in unencumbered
                           form, including a negative pledge re: security and
                           additional debt.

DOCUMENTATION           The following documentation shall be provided no later
                        than September 28, 2001:
                        a) Letter of Undertaking from the Borrower in the form
                           attached, and

<Page>

                        b) Negative Pledge from Dynacare Laboratories Limited
                           Partnership in the form attached.

REPORTING
REQUIREMENTS            The Borrower agrees to provide:

                        a) for the Borrower, Dynacare Kasper Medical
                           Laboratories and Dynacare Laboratories Limited
                           Partnership, annual unaudited financial statements
                           and for Dynacare Inc., annual audited financial
                           statements within 90 days of fiscal year end; and

                        b) quarterly unaudited consolidated financial statements
                           for Dynacare Inc. within 45 days of fiscal quarter
                           end.

OVERDRAFT
AVAILABILITY            Prime Rate Based Loans are permitted via overdraft from
                        Current Account Number 375212 at Branch Transit 1020 up
                        to the Credit Limit.

DISBURSEMENT
CONDITIONS:             The Facility will no longer be available after September
                        28, 2001, unless the following has been provided to the
                        Bank:
                        1. all of the Bank Documentation required under this
                           Agreement,
                        2. Business Banking Agreement, and
                        3. Business Services Master Agreement.

                        The Facility will no longer be available after March 15,
                        2002, unless the following has been provided to the
                        Bank:
                        1. all of the Bank Security and supporting resolutions
                           and solicitor's letter of opinion required under this
                           Agreement, and
                        2. Updated PPSA Search confirming discharge of PPSA
                           registrations except for PPSA registrations
                           acceptable to the Bank which exceptions shall
                           include, without limitation (a) file numbers
                           925856046, 949495077, and 932267367 (where we
                           understand assets have been sold and the associated
                           debt has been indemnified by the purchaser, and we
                           will require solicitor confirmation of this
                           indemnification); (b) and files 816124275, 818623476,
                           823996917, 827964909, 830172033, 831015513,
                           831648231, 831648249, 831785067, 833917716,
                           834529527, 834734835, 835067151,835067169, 836011926,
                           836011935, 836051823, 853367184, 853367193,
                           853468929, 853634115; (c) file 858071475 (which
                           registration is to be amended in a manner
                           satisfactory to the Bank to limit the PPSA
                           registration to specific equipment financing); and
                           (d) any other equipment financing registered under
                           PPSA since April 6, 2001.

OTHER
REQUIREMENTS            Other Requirements as referred to in Section 5b) in
                        Schedule "A" are not applicable.

<Page>

AVAILABILITY
OF THE FACILITY:        The Facility is uncommitted and is not automatically
                        available upon satisfaction of the terms and conditions
                        set out herein.

                        The Bank can demand repayment and cancel the
                        availability of the Facility at any time.

SCHEDULE "A"
TERMS AND
CONDITIONS:             Schedule "A" sets out the Standard Terms and Conditions
                        ("Standard Terms and Conditions") which are applicable
                        to the Borrower and which apply to this Facility. The
                        Standard Terms and Conditions, including the defined
                        terms set out therein, form part of this Agreement,
                        unless this letter states specifically that one or more
                        of the Standard Terms and Conditions do not apply or are
                        modified.

We trust you will find these facilities helpful in meeting your ongoing
financing requirements. We ask that you acknowledge this offer of financing
(which includes the Standard Terms and Conditions) by signing and returning the
attached duplicate copy of this agreement to the undersigned by September 28,
2001.

Yours truly,

THE TORONTO-DOMINION BANK:

/s/ [ILLEGIBLE]         L370           /s/ [ILLEGIBLE]         5425
---------------------   -------        ---------------------   -------
Name of R/M             Signing        Name of MCC OR AVP      Signing
Title                   No.            Title                   No.

THE TORONTO-DOMINION BANK:

The Borrower hereby acknowledges and accepts the Terms and Conditions of this
Agreement, including the attached Schedule "A".

Borrower's authorized offices or representatives:

/s/ Zbig Biskup
---------------------                  ----------------------------
Signature                              Signature

Zbig Biskup
---------------------                  ----------------------------
Print Name & Position                  Print Name & Position

<Page>

                                   SCHEDULE A
                          STANDARD TERMS AND CONDITIONS

1. DEFINITIONS

Capitalized Terms used in this Agreement shall have the following meanings:

"All-In Rate" means the greater of the Interest Rate that the Borrower pays for
Prime Based Loans (which for greater certainty includes the percent per annum
added to the Prime Rate).

"Business Day" means any day (other than a Saturday or Sunday) that the
Branch/Centre is open for business.

"Business Plan/Forecast" means, for any fiscal year, a business plan and
financial forecast in respect of the Borrower's business for such fiscal year,
in form acceptable to the Bank and certified by the Borrower's senior officer or
authorized representative.

"Branch/Centre" means the Bank branch or banking centre noted on the first page
of the Letter, or such other branch or centre as may from time to time be
designated by the Bank.

"Inventory Value" means, at the time of determination, the total value (based on
the lower of cost or market) of the Borrower's inventories that are subject to
the Bank Security (other than i) those inventories supplied by trade creditors
who at that time have not been fully paid therefor and would have a right to
repossess all or part of such inventories if the Borrower were then either
bankrupt or in receivership, (ii) those inventories comprising work in process
and (iii) those inventories that the Bank may from time to time designate in its
sole discretion) minus the total amount of any claims, liens or encumbrances on
those inventories having or purporting to have priority over the Bank.

"Face Amount" means, in respect of:

i)    a B/A, the amount payable to the holder thereof on its maturity;
ii)   a L/C or L/G, the maximum amount payable to the beneficiary specified
      therein or any other person to whom payments may be required to be made
      pursuant to such L/C or L/G.

"Letter" means the letter from the Bank to the Borrower to which this Schedule
"A" - Standard Terms and Conditions is attached.

"Letter of Credit" or "L/C" means, unless specifically limited elsewhere in this
Agreement, a documentary letter of credit or similar instrument in form and
substance satisfactory to the Bank.

"Letter of Guarantee" or "L/G" means, unless specifically limited elsewhere in
this Agreement, a stand-by letter of guarantee or similar instrument in form and
substance satisfactory to the Bank.

"Purchase Money Security Interest" means a security interest on an asset which
is granted to a lender or to the seller of such asset in order to secure the
purchase price of such asset or a loan incurred to acquire such asset, provided
that the amount secured by the security interest does not exceed the cost of the
asset and provided that the Borrower provides written notice to the Bank prior
to the creation of the security interest.

"Receivable Value" means, at any time of determination, the total value of those
of the Borrower's trade accounts receivable that are subject to the Bank
Security other than i) those accounts then outstanding for 90 days, (ii) those
accounts owing by persons, firms or corporations affiliated with the Borrower,
(iii) those accounts that the Bank may from time to time designate in its sole
discretion, (iv) those accounts subject to any claim, liens, or encumbrance
having or purporting to have priority over the Bank, (v) those accounts which
are subject to a claim of set-off by the obligor under such account, MINUS the
amount of all the Borrower's unremitted source deductions and unpaid taxes.

"Receivables/Inventory Summary" means a summary of the Customer's trade account
receivables and inventories, in form as the Bank may require and certified by
the Borrower's senior officer or authorized representative.

"US$ Equivalent" means, on any date, the equivalent amount in United States
Dollars after giving effect to a conversion of a specified amount of Canadian
Dollars to United States Dollars at the Bank's noon spot rate of exchange.

2. INTEREST RATE DEFINITIONS

Prime Rate means the rate of interest per annum (based on a 365/366 day year)
established and reported by the Bank to the Bank of Canada from time to time as
the reference rate of interest for determination of interest rates that the Bank
charges to customers of varying degrees of creditworthiness in Canada for
Canadian dollar loans made by it in Canada.

The Stamping Fee rate per annum is based on a 365/366 day year and the Stamping
Fee is calculated on the face amount of each B/A presented to the Bank for
acceptance.

LIBOR means the rate of interest per annum (based on a 360 day year) as
determined by the Bank (rounded upwards, if necessary to the nearest whole
multiple of 1/16th of 1%) at which the Bank may make available United States
dollars which are obtained by the Bank in the Interbank Euro Currency Market,
London, England at approximately 11:00 a.m. (Toronto time) on the second
Business Day before the first day of, and in an amount similar to, and for the
period similar to the interest period of, such advance.

USBR means the rate of interest per annum (based on a 365/366 day year)
established by the Bank from time to time as the reference rate of interest for
the determination of interest rates that the Bank charges to customers of
varying degrees of creditworthiness for US dollar loans made by it in Canada.

Any interest rate based on a period less than a year expressed as an annual rate
for the purposes of the Interest Act (Canada) is equivalent to such determined
rate multiplied by the actual number of days in the calendar year in which the
same is to be ascertained and divided by the number of days in the period upon
which it was based.

3. INTEREST CALCULATION AND PAYMENT

Interest on Prime Based Loans, and USBR Loans is calculated daily and payable
monthly in arrears based on the number of days the subject loan is outstanding.

The Stamping Fee is calculated based on the face amount and the term of the B/A
and is payable upon acceptance by the Bank of the B/A. The net proceeds received
by the borrower on a B/A advance will be equal to the face amount of the B/A
discounted at the Bank's then prevailing B/A discount rate for the specified
term of the B/A less the B/A Stamping Fee.

<Page>
                                      -2-

Interest on LIBOR Loans is calculated and payable on the earlier of contract
maturity or quarterly in arrears, for the number of days in the LIBOR interest
period.

L/C and L/G fees are payable at the time of issuance of the L/C or L/G.

Interest is payable both before and after maturity or demand, default and
judgment. Each payment under this Agreement shall be applied to any indebtedness
or amounts owing in any order at the sole discretion of the Bank.

All overdue amounts of principal and interest shall bear interest from the date
on which the same became due until the date of payment at the All-In Rate plus
2% per annum.

4. DRAWDOWN PROVISIONS

Prime Based and USBR Loans

There is no minimum amount of drawdown by way of Prime Based Loans and USBR
Loans, except as stated in this Agreement. The Borrower shall provide the Bank
with 3 Business Days' notice of a requested Prime Based Loan over $1,000,000.

B/As

The Borrower shall advise the Bank of the requested term or maturity date for
B/As issued hereunder. The Bank shall have the discretion to restrict the term
or maturity dates of B/As. The minimum amount of a drawdown by way of B/As is
$500,000 and in multiples of $100,000 thereafter. The Borrower shall provide the
Bank with 3 Business Days' notice of a requested B/A drawdown.

LIBOR

The Borrower shall advise the Bank of the requested LIBOR contract maturity or
interest period. The Bank shall have the discretion to restrict the LIBOR
contract maturity. The minimum amount of a drawdown by way of a LIBOR Loan is
$1,000,000, and shall be in multiples of $100,000 thereafter. The Borrower will
provide the Bank with 3 Business Days' notice of a requested LIBOR Loan.

L/C and/or L/G

The Bank shall have the discretion to restrict the maturity date of L/Gs or
L/Cs.

B/A - Prime Conversion

The Borrower will provide the Bank with at least 3 Business Days notice of the
Borrower's intention either to convert a B/A to a Prime Based Loan or vice
versa, failing which, the Bank may decline to accept such additional B/As or may
charge interest on the amount of Prime Based Loans resulting from maturity of
B/As at the rate of 115% of the rate applicable to Prime Based Loans for the 3
day period immediately following such maturity. Thereafter, the rate shall
revert to the rate applicable to Prime Based Loans.

5. OTHER REQUIREMENTS

In addition to all of the other obligations in this Agreement

a) The Borrower will:

      i)    pay all amounts outstanding to the bank when due or demanded,
      ii)   maintain the Borrower's existence as a sole proprietorship,
            corporation, partnership, or limited partnership as the case may be,
            and keep all material agreements, rights, franchises, licences,
            operations, contracts or other arrangements in full force and
            effect,
      iii)  pay all taxes,
      iv)   maintain the Borrower's property, plant and equipment in good repair
            and working condition,
      v)    continue to carry on the business now being carried on by the
            Borrower,
      vi)   maintain adequate insurance on all of the Borrower's assets,
            undertakings, and business risks, and
      vii)  permit the Bank and its authorized representatives full access to
            the Borrower's premises, business, financial and computer records
            and allow the duplication or extraction of pertinent information
            therefrom.

b) The Borrower will not:

      i)    create, incur, assume, or suffer to exist, any mortgage, deed of
            trust, pledge, lien, security interest, assignment, charge, or
            encumbrance (including without limitation, any conditional sale, or
            other title retention agreement, or finance lease) of any nature,
            upon or with respect to any of the borrower's property, now owned or
            hereafter acquired except for those Permitted Liens set out in the
            Letter,
      ii)   merge or amalgamate with any other entity or permit any change of
            ownership or change the Borrower's capital structure,
      iii)  sell, lease, assign, or otherwise dispose of all or substantially
            all of the Borrower's assets.

6. ADDITIONAL INFORMATION AND SECURITY

The Borrower will provide, or cause to be provided, whatever information the
Bank may request from time to time. The Borrower will provide, or cause to be
provided, any security or guarantees required by the Bank from time to time.

7. CURRENCY INDEMNITY

US$ loans must be repaid with US$ and CDN$ loans must be repaid with CDN$ and
the Borrower shall indemnify the Bank for any loss suffered by the Bank if US$
loans are repaid with CDN$ or vice versa, whether such payment is made pursuant
to an order of a court or otherwise.

8. TAXATION ON PAYMENTS

All payments made by the Borrower to the Bank will be made free and clear of all
present and future taxes (excluding the Bank's income taxes), withholdings or
deductions of whatever nature. If these taxes, withholdings or deductions are
required by applicable law and are made, The Borrower shall, as a separate and
independent obligation, pay to the Bank all additional amounts as shall fully
indemnify the Bank from any such taxes, withholdings or deductions.

9. ENVIRONMENTAL REPRESENTATION AND UNDERTAKINGS

The Borrower represents, warrants and covenants (which representation, warranty
and covenant shall continue each day hereafter) that the Borrower's property and
business is being operated in compliance with applicable environmental, health
and safety laws and regulations and that there are no judicial or administrative
proceedings in respect thereto.

The Borrower shall, when asked by the Bank, at the Borrower's expense, obtain
and provide to the Bank and appraisal, environmental audit or inspection report
of any of the Borrower's property from appraisers, auditors or inspectors
acceptable to the Bank.

The Borrower will defend, indemnify and hold harmless the Bank, its officers,
directors, employees, agents and shareholders, against all loss, costs, claims,
damages and expenses (including legal, audit and inspection expenses) which may
be suffered or incurred in connection with the breach of this environmental
representation, warranty and covenant and against environmental damage
occasioned by the Borrower's activities or by contamination of or from any of
the Borrower's property.

10. REPRESENTATION

No representation or warranty or other statement made by the Bank concerning any
of the credit facilities shall be binding on the Bank unless made by it in
writing as a specific amendment to this letter.

<Page>
                                      -3-

11. BANK MAY CHANGE AGREEMENT

The Bank may change the provisions of this Agreement from time to time. These
changes include, without limitation, changes to the Credit Limit, interest rate,
or fees payable by the Borrower. The Bank will notify the Borrower of any change
in this Agreement by mail, hand delivery or facsimile transmission or for a
change in any interest rates or interest rate definitions by posting a notice in
all of the Bank's branches. The Bank is not required to notify a Guarantor of
any change in the Agreement, including without limitation, any increase in the
Credit Limit, Overdraft Limit or Loan Amount. If more than one person signs this
Agreement, communication with any one of one party will serve as notice to all.

12. METHOD OF COMMUNICATION

The Bank may communicate with the Borrower by ordinary, uninsured mail or other
means, including hand delivery or facsimile transmission. Mailed information is
deemed to be received by the Borrower five days after mailing. Delivered
information is deemed to be received when delivered or left at the Borrower's
address. Messages sent by facsimile are deemed to be received when the Bank
receives a fax confirmation.

13. EXPENSES

The Borrower shall pay, within 5 Business Days following notification, all fees
and expenses (including but not limited to all legal fees and expenses) incurred
by the Bank in connection with the preparation, registration and ongoing
administration of this Agreement and the Bank Security and with the enforcement
of the Bank's rights and remedies under this Agreement or the Bank Security
whether or not any amounts are advanced under the Agreement. These fees and
expenses shall include, but not be limited to, all outside counsel fees and
expenses and all in-house legal fees and expenses, if in-house counsel are used,
and all outside professional advisory fees and expenses. The Borrower shall pay
interest on unpaid amounts due pursuant to this paragraph at the All-In Rate
plus 2% per annum.

14. NON WAIVER

Any failure by the Bank to object to or take action with respect to a breach of
this Agreement or any Bank Security shall not constitute a waiver of the Bank's
right to take action at a later date on that breach. No course of conduct by
the Bank will give rise to any reasonable expectation which is in any way
inconsistent with the terms and conditions of this Agreement and the security or
the Bank's right's thereunder.

15. EVIDENCE OF INDEBTEDNESS

The Bank shall record on its records the amount of all advances made hereunder,
payments made in respect thereto, and all other amounts becoming due to the Bank
under this Agreement. The Bank's records constitute, in the absence of manifest
error, conclusive evidence of the Borrower's indebtedness to the Bank pursuant
to this Agreement.

The Borrower will sign an Indemnity Agreement for all L/Cs and L/Gs issued by
the Bank.

16. ENTIRE AGREEMENTS

This Agreement replaces any previous letter agreements dealing specifically with
the Facility. Agreements relating to other credit facilities made available by
the Bank continue to apply for those other credit facilities.

17. ASSIGNMENT

The Bank may assign or grant participation in all or part of this Agreement or
in any loan made hereunder without notice to and without the Borrower's consent.
The Borrower may not assign or transfer all or any part of the Borrower's rights
or obligations under this Agreement.

18. RELEASE OF INFORMATION

The Borrower hereby irrevocably authorizes and direct the Borrower's accountant,
(the "Accountant") to deliver all financial statements and other financial
information concerning the Borrower to the Bank and agree that the Bank and the
Accountant may communicate directly with each other.

19. USE OF INFORMATION

The word "information" means the Borrower's business and credit information and
the Guarantor's business and credit information. It includes information
provided to the Bank by the Borrower, including through the products and
services the Borrower uses, and information obtained from others.

The Borrower (and the Guarantor) agree to the use of its information as follows:

i) Use of information -- The Bank may use information to establish and serve the
Borrower as its customer, determine whether any products or services of the TD
Bank Financial Group are suitable for the Borrower and offer them to the
Borrower, or when required or permitted by law. The Bank may share information
within the TD Bank Financial Group where permitted by law;

(ii) Collection and Use of Credit Information -- THE BANK MAY OBTAIN INFORMATION
FROM PARTIES OUTSIDE THE TD BANK FINANCIAL GROUP, INCLUDING THROUGH A CREDIT
CHECK, AND VERIFY INFORMATION WITH THEM. THE BORROWER AND THE GUARANTOR
AUTHORIZE THOSE PARTIES TO GIVE THE BANK INFORMATION. The Bank may disclose
information to other lenders and credit bureaux.

The Borrower and the Guarantor may obtain the privacy code -- "Protecting Your
Privacy" -- or review its options for refusing or withdrawing this consent,
including its option not to be contacted about offers of products or services,
by contacting the Branch or calling the Bank at 1-800-9TD BANK.

*The TD Bank Financial Group means The Toronto-Dominion Bank and its
subsidiaries and affiliates providing deposit, investment, loan, securities,
trust, insurance and other products or services.

20. SET-OFF

In addition to and not in limitation of any rights now or hereafter granted
under applicable law, the Bank may at any time and from time to time without
notice to the Borrower or any other person, any notice being expressly waived by
the Borrower, set-off and compensate and apply any and all deposits, general or
special, time or demand, provisional or final, matured or unmatured, in any
currency, and any other indebtedness at any time owing by the Bank, to or for
the Borrower's credit or the Borrower's account against and on account of the
indebtedness and liability under this Agreement notwithstanding that any of them
are contingent or unmatured or in a different currency than the indebtedness and
liability under this Agreement.

When applying a deposit in a different currency than the indebtedness under this
Agreement to the indebtedness under this Agreement, the Bank will convert the
deposit to the currency of the indebtedness under this Agreement using the
Bank's noon spot rate of exchange for the conversion of such currency.

21. MISCELLANEOUS

i)    The Borrower has received a signed copy of this Agreement;
ii)   If more than one person, firm or corporation signs this Agreement as the
      Borrower, the Bank may require payment of all amounts payable under this
      Agreement for any one of them, or a portion from each, but the Bank is
      released from any of its obligations by performing that obligation to any
      one of them;
iii)  Accounting terms will (to the extent not defined in this Agreement) be
      interpreted in accordance with accounting principles established from time
      to time by the Canadian Institute of Chartered Accountants (or any
      successor) consistently applied, and all financial statements and
      information provided to the Bank will be prepared in accordance with those
      principles;
iv)   This Agreement is governed by the law of the Province or Territory where
      the Branch/Centre is located;
v)    Unless otherwise indicated, all amounts in this Agreement are in Canadian
      dollars.

<Page>

                                  UNDERTAKING

In conjunction with acknowledging and accepting the terms and conditions of the
demand operating facility outlined in the Advisory Letter from The
Toronto-Dominion Bank (the "Bank") dated September 14, 2001, The Dynacare Health
Group Inc. (the "Borrower") undertakes to provide to the Bank an unencumbered
$5,000,000 guarantee from Dynacare Laboratories Limited Partnership, in a form
acceptable to the Bank and including a negative pledge, as security for this
demand operating facility by no later than March 15, 2002, failing which, the
Borrower will repay and cancel the demand operating facility on or before March
15, 2002.

Dated at Toronto this 28th day of September, 2001.

                                        The Dynacare Health Group Inc.

                                        /s/ Zbig Biskup
                                        ----------------------------------------
                                        (Name: ZBIG BISKUP)

                                        ----------------------------------------
                                        (Name:                             )

<Page>

                                NEGATIVE PLEDGE

It is acknowledged that The Dynacare Health Group Inc. holds a 99% partnership
interest in the undersigned, Dynacare Laboratories Limited Partnership. In
conjunction with The Dynacare Health Group Inc.'s acknowledgement and acceptance
of the the terms and conditions of the demand credit facility outlined in an
Advisory Letter from The Toronto-Dominion Bank to The Dynacare Health Group Inc.
dated September 26, 2001, Dynacare Laboratories Limited Partnership hereby
covenants and agrees with The Toronto-Dominion Bank that unless The
Toronto-Dominion Bank shall have consented in writing, it shall not, except for
(1) any security, lien, mortgage or charge already existing at the date hereof
and which has been previously advised to the Bank, (2) any equipment financing
in the ordinary course of business consistent with past practice and forming
part of the Permitted Liens of Dynacare-Gamma Laboratory Partnership as
described in the Bank's Advisory Letter dated September 26, 2001; and (3) any
renewal, extension or other re-financing of any of the foregoing:

(a) create, incur, assume or suffer to exist (directly or indirectly) any
indebtedness or guarantee or act as surety or agree to indemnify the debts of
others, or

(b) create, incur, assume, or suffer to exist, or permit any subsidiary to
create, incur, assume or suffer to exist, any mortgage, deed of trust, pledge,
lien, security interest, assignment, charge or encumbrance (including without
limitation, any conditional sale, or other title retention agreement, or finance
lease) of any nature, upon or with respect to any of its properties, now owned
or hereafter acquired, or sign or file, or permit any subsidiary to sign or
file, under the PPSA or similar registry system of any jurisdiction a financing
statement which names Dynacare Laboratories Limited Partnership or any
subsidiary as a debtor, or sign, or permit any subsidiary to sign, any security
agreement authorizing any secured party thereunder to file such financing
statement.

Dated at Toronto this 26th day of September, 2001.

                                       Dynacare Laboratories Limited Partnership
                                       by its partners,

                                       Dynacare G.P. Inc.

                                       Per: /s/ Zbig Biskup
                                       -----------------------------------------
                                       (Name: ZBIG BISKUP)

                                       The Dynacare Health Group Inc.

                                       Per: /s/ Zbig Biskup
                                       -----------------------------------------
                                       (Name: ZBIG BISKUP)

<Page>

                      [TD BANK FINANCIAL GROUP LETTERHEAD]

                                                Telephone No. (416) 982-7770
                                                         Fax: (416) 982-6076

September 26, 2001

The Dynacare-Gamma Laboratory Partnership
20 Eglinton Avenue West, Suite 1600
Toronto, Ontario M4R 2H1

Attention: Zbig Biskup
           Senior Vice President and Chief Financial Officer
           -------------------------------------------------

Dear Sirs:

We are pleased to offer the Borrower the following Demand Operating Facility
(the "Facility"), subject to the terms and conditions outlined below.

BORROWER:               Dynacare-Gamma Laboratory Partnership (herein called
                        the "Borrower")

LENDER:                 The Toronto-Dominion Bank (the "Bank"), through its
                        Toronto Dominion Centre branch, in Toronto, Ontario.

CREDIT LIMIT:           Amounts outstanding under the Facility will at all times
                        be the lesser of:
                        1) CDN$25,000,000 [or its US$ Equivalent] AND
                        2) the TOTAL of (A) 90% of Provincial Health Plan
                                            receivables,
                                        (B) 75% of non-health insurance
                                            receivables acceptable to the Bank,
                                            net of accounts over 60 days old,
                                            AND
                                        (C) 60% of readily saleable inventories.

BORROWING
OPTIONS:                The Facility is available at the Borrower's option by
                        way of:
                        - Prime Rate Based Loans in CDN$ ("Prime Based Loans")
                        - Banker's Acceptances in CDN$ ("B/As")
                        - Stand-by Letters of Guarantee in CDN$ ("L/Gs") (to a
                          maximum of $2,000,000 for total L/G's outstanding)

PURPOSE                 The Facility is to be used to fund working capital only.

                              TD ACCESS
                              TELEPHONE BANKING

                              24 hours, 7 days a week
                              1-800-9TD-BANK
                              (1-800-983-2265)

                              [ILLEGIBLE]
<Page>

DRAWDOWN:               Facility is available on a revolving basis. Terms for
                        Banker's Acceptances and other similar details are set
                        out in the Schedule "A" attached hereto.

REPAYMENT:              On demand. If the Bank demands repayment, the Borrower
                        will pay to the Bank all amounts outstanding under the
                        Facility, including without limitation, the amount of
                        all unmatured B/As and the amount of all drawn and
                        undrawn L/Gs.

INTEREST RATES
AND FEES:               For the Borrowing Options available, advances shall bear
                        interest and fees are as follows:
                        - Prime Based Loans - Prime Rate + 0% per annum
                        - B/As - Stamping Fee at 1.25% per annum
                        - L/Gs - 1.25% per annum

                        Information on Interest Rate Definitions, Interest
                        Calculations and Payment is set out in the Schedule "A"
                        attached hereto.

ARRANGEMENT
FEE                     During May 2001, the Borrower paid a non-refundable
                        arrangement fee (in conjunction with The Dynacare Health
                        Group Inc.) of $15,000.

SECURITY                The following security shall be provided, shall support
                        all present and future indebtedness and liability of the
                        Borrower and the grantor of the security to the Bank
                        including without limitation indebtedness and liability
                        under guarantees, foreign exchange contracts, cash
                        management products, and derivative contracts, and shall
                        be on the Bank's standard form, supported by resolutions
                        and solicitor's opinion, all acceptable to the Bank:
                        a) General Security Agreement amended to effectively
                           become an Inventory Security Agreement from the
                           Borrower, and
                        b) General Assignment of Book Debts from the Borrower.

All of the above security shall be referred to collectively in this Agreement as
"Bank Security".

REPORTING
REQUIREMENTS            The Borrower agrees to provide:
                        a) annual audited consolidated financial statements
                           within 90 days of fiscal year end;
                        b) a compliance certificate from an authorized
                           representative each time statements under a) above
                           are submitted confirming that the Borrower is in
                           compliance with applicable regulations and that
                           laboratory licenses have been renewed for a further
                           year (form of Compliance Certificate is attached);
                           and

<Page>

                        c) aged Receivable and Inventory summary within 25 days
                           of each month end.

OVERDRAFT
AVAILABILITY            Prime Rate Based Loans are permitted via overdraft from
                        Current Account Number 373473 at Branch Transit 1020 up
                        to the Credit Limit $25,000,000.

DISBURSEMENT
CONDITIONS:             The Facility will no longer be available after October
                        31, 2001, unless the following has been provided to the
                        Bank:
                        1. Business Services Master Agreement
                        2. Business Banking Agreement

PERMITTED
LIENS                   Permitted Liens as referred to in Schedule "A" (section
                        5b)) are Purchase Money Security Interests, not to
                        exceed for the Borrower $10,000,000.00 in aggregate.

AVAILABILITY
OF THE FACILITY:        The Facility is uncommitted and is not automatically
                        available upon satisfaction of the terms and conditions
                        set out herein.

                        The Bank can demand repayment and cancel the
                        availability of the Facility at any time.

SCHEDULE "A"
TERMS AND
CONDITIONS:             Schedule "A" sets out the Standard Terms and Conditions
                        ("Standard Terms and Conditions") which are applicable
                        to the Borrower and which apply to this Facility. The
                        Standard Terms and Conditions, including the defined
                        terms set out therein, form part of this Agreement,
                        unless this letter states specifically that one or more
                        of the Standard Terms and Conditions do not apply or are
                        modified.

We trust you will find these facilities helpful in meeting your ongoing
financing requirements. We ask that you acknowledge this offer of financing
(which includes the Standard Terms and Conditions) by signing and returning the
attached duplicate copy of this agreement to the undersigned by September 28,
2001.

<Page>

Yours truly,

THE TORONTO-DOMINION BANK:

/s/ [ILLEGIBLE]         L370           /s/ [ILLEGIBLE]         5425
---------------------   -------        ---------------------   -------
Name of R/M             Signing        Name of MCC or AVP      Signing
Title                   No.            Title                   No.

THE TORONTO-DOMINION BANK:

The Borrower hereby acknowledges and accepts the Terms and Conditions of this
Agreement, including the attached Schedule "A".

Borrower's authorized offices or representatives:

/s/ Zbig Biskup
---------------------                  ---------------------
Signature                              Signature

ZBIG BISKUP
---------------------                  ---------------------
Print Name & Position                  Print Name & Position

---------------------
Signature

---------------------
Print Name & Position

<Page>

                             COMPLIANCE CERTIFICATE

This certificate is given pursuant to an advisory letter made as of September
26, 2001 (as such letter may be supplemented, amended or restated from time to
time) between Dynacare-Gamma Laboratory Partnership, as Borrower, and The
Toronto-Dominion Bank, as Lender.

The undersigned, as the duly appointed Director of the Borrower hereby certifies
for and on behalf of the Borrower as follows:

1.    The Borrower is in compliance with applicable regulations and through the
      annual license renewal process, the Borrower continues to hold valid
      laboratory licenses which are required to operate clinical laboratories
      and to receive reimbursement in Ontario.

Dated September 28, 2001.

                                        Dynacare-Gamma Laboratory Partnership

                                        By /s/ Zbig Biskup
                                           -------------------------------------
                                        Name
                                        Position

                                        By
                                           -------------------------------------
                                        Name
                                        Position

                                        By
                                           -------------------------------------
                                        Name
                                        Position

<Page>

                                   SCHEDULE A
                          STANDARD TERMS AND CONDITIONS

1. DEFINITIONS

Capitalized Terms used in this Agreement shall have the following meanings:

"All-In Rate" means the greater of the Interest Rate that the Borrower pays for
Prime Based Loans (which for greater certainty includes the percent per annum
added to the Prime Rate).

"Business Day" means any day (other than a Saturday or Sunday) that the
Branch/Centre is open for business.

"Business Plan/Forecast" means, for any fiscal year, a business plan and
financial forecast in respect of the Borrower's business for such fiscal year,
in form acceptable to the Bank and certified by the Borrower's senior officer or
authorized representative.

"Branch/Centre" means the Bank branch or banking centre noted on the first page
of the Letter, or such other branch or centre as may from time to time be
designated by the Bank.

"Inventory Value" means, at the time of determination, the total value (based on
the lower of cost or market) of the Borrower's inventories that are subject to
the Bank Security (other than i) those inventories supplied by trade creditors
who at that time have not been fully paid therefor and would have a right to
repossess all or part of such inventories if the Borrower were then either
bankrupt or in receivership, (ii) those inventories comprising work in process
and (iii) those inventories that the Bank may from time to time designate in its
sole discretion) minus the total amount of any claims, liens or encumbrances on
those inventories having or purporting to have priority over the Bank.

"Face Amount" means, in respect of:

i)    a B/A, the amount payable to the holder thereof on its maturity;
ii)   a L/C or L/G, the maximum amount payable to the beneficiary specified
      therein or any other person to whom payments may be required to be made
      pursuant to such L/C or L/G.

"Letter" means the letter from the Bank to the Borrower to which this Schedule
"A" - Standard Terms and Conditions is attached.

"Letter of Credit" or "L/C" means, unless specifically limited elsewhere in this
Agreement, a documentary letter of credit or similar instrument in form and
substance satisfactory to the Bank.

"Letter of Guarantee" or "L/G" means, unless specifically limited elsewhere in
this Agreement, a stand-by letter of guarantee or similar instrument in form and
substance satisfactory to the Bank.

"Purchase Money Security Interest" means a security interest on an asset which
is granted to a lender or to the seller of such asset in order to secure the
purchase price of such asset or a loan incurred to acquire such asset, provided
that the amount secured by the security interest does not exceed the cost of the
asset and provided that the Borrower provides written notice to the Bank prior
to the creation of the security interest.

"Receivable Value" means, at any time of determination, the total value of those
of the Borrower's trade accounts receivable that are subject to the Bank
Security other than i) those accounts then outstanding for 90 days, (ii) those
accounts owing by persons, firms or corporations affiliated with the Borrower,
(iii) those accounts that the Bank may from time to time designate in its sole
discretion, (iv) those accounts subject to any claim, liens, or encumbrance
having or purporting to have priority over the Bank, (v) those accounts which
are subject to a claim of set-off by the obligor under such account, MINUS the
amount of all the Borrower's unremitted source deductions and unpaid taxes.

"Receivables/Inventory Summary" means a summary of the Customer's trade account
receivables and inventories, in form as the Bank may require and certified by
the Borrower's senior officer or authorized representative.

"US$ Equivalent" means, on any date, the equivalent amount in United States
Dollars after giving effect to a conversion of a specified amount of Canadian
Dollars to United States Dollars at the Bank's noon spot rate of exchange.

2. INTEREST RATE DEFINITIONS

Prime Rate means the rate of interest per annum (based on a 365/366 day year)
established and reported by the Bank to the Bank of Canada from time to time as
the reference rate of interest for determination of interest rates that the Bank
charges to customers of varying degrees of creditworthiness in Canada for
Canadian dollar loans made by it in Canada.

The Stamping Fee rate per annum is based on a 365/366 day year and the Stamping
Fee is calculated on the face amount of each B/A presented to the Bank for
acceptance.

LIBOR means the rate of interest per annum (based on a 360 day year) as
determined by the Bank (rounded upwards, if necessary to the nearest whole
multiple of 1/16th of 1%) at which the Bank may make available United States
dollars which are obtained by the Bank in the Interbank Euro Currency Market,
London, England at approximately 11:00 a.m. (Toronto time) on the second
Business Day before the first day of, and in an amount similar to, and for the
period similar to the interest period of, such advance.

USBR means the rate of interest per annum (based on a 365/366 day year)
established by the Bank from time to time as the reference rate of interest for
the determination of interest rates that the Bank charges to customers of
varying degrees of creditworthiness for US dollar loans made by it in Canada.

Any interest rate based on a period less than a year expressed as an annual rate
for the purposes of the Interest Act (Canada) is equivalent to such determined
rate multiplied by the actual number of days in the calendar year in which the
same is to be ascertained and divided by the number of days in the period upon
which it was based.

3. INTEREST CALCULATION AND PAYMENT

Interest on Prime Based Loans, and USBR Loans is calculated daily and payable
monthly in arrears based on the number of days the subject loan is outstanding.

The Stamping Fee is calculated based on the face amount and the term of the B/A
and is payable upon acceptance by the Bank of the B/A. The net proceeds received
by the borrower on a B/A advance will be equal to the face amount of the B/A
discounted at the Bank's then prevailing B/A discount rate for the specified
term of the B/A less the B/A Stamping Fee.

<Page>
                                      -2-

Interest on LIBOR Loans is calculated and payable on the earlier of contract
maturity or quarterly in arrears, for the number of days in the LIBOR interest
period.

L/C and L/G fees are payable at the time of issuance of the L/C or L/G.

Interest is payable both before and after maturity or demand, default and
judgment. Each payment under this Agreement shall be applied to any indebtedness
or amounts owing in any order at the sole discretion of the Bank.

All overdue amounts of principal and interest shall bear interest from the date
on which the same became due until the date of payment at the All-In Rate plus
2% per annum.

4. DRAWDOWN PROVISIONS

Prime Based and USBR Loans

There is no minimum amount of drawdown by way of Prime Based Loans and USBR
Loans, except as stated in this Agreement. The Borrower shall provide the Bank
with 3 Business Days' notice of a requested Prime Based Loan over $1,000,000.

B/As

The Borrower shall advise the Bank of the requested term or maturity date for
B/As issued hereunder. The Bank shall have the discretion to restrict the term
or maturity dates of B/As. The minimum amount of a drawdown by way of B/As is
$500,000 and in multiples of $100,000 thereafter. The Borrower shall provide the
Bank with 3 Business Days' notice of a requested B/A drawdown.

LIBOR

The Borrower shall advise the Bank of the requested LIBOR contract maturity or
interest period. The Bank shall have the discretion to restrict the LIBOR
contract maturity. The minimum amount of a drawdown by way of a LIBOR Loan is
$1,000,000, and shall be in multiples of $100,000 thereafter. The Borrower will
provide the Bank with 3 Business Days' notice of a requested LIBOR Loan.

L/C and/or L/G

The Bank shall have the discretion to restrict the maturity date of L/Gs or
L/Cs.

B/A - Prime Conversion

The Borrower will provide the Bank with at least 3 Business Days notice of the
Borrower's intention either to convert a B/A to a Prime Based Loan or vice
versa, failing which, the Bank may decline to accept such additional B/As or may
charge interest on the amount of Prime Based Loans resulting from maturity of
B/As at the rate of 115% of the rate applicable to Prime Based Loans for the 3
day period immediately following such maturity. Thereafter, the rate shall
revert to the rate applicable to Prime Based Loans.

5. OTHER REQUIREMENTS

In addition to all of the other obligations in this Agreement

a) The Borrower will:

      i)    pay all amounts outstanding to the bank when due or demanded,
      ii)   maintain the Borrower's existence as a sole proprietorship,
            corporation, partnership, or limited partnership as the case may be,
            and keep all material agreements, rights, franchises, licences,
            operations, contracts or other arrangements in full force and
            effect,
      iii)  pay all taxes,
      iv)   maintain the Borrower's property, plant and equipment in good repair
            and working condition,
      v)    continue to carry on the business now being carried on by the
            Borrower,
      vi)   maintain adequate insurance on all of the Borrower's assets,
            undertakings, and business risks, and
      vii)  permit the Bank and its authorized representatives full access to
            the Borrower's premises, business, financial and computer records
            and allow the duplication or extraction of pertinent information
            therefrom.

b) The Borrower will not:

      i)    create, incur, assume, or suffer to exist, any mortgage, deed of
            trust, pledge, lien, security interest, assignment, charge, or
            encumbrance (including without limitation, any conditional sale, or
            other title retention agreement, or finance lease) of any nature,
            upon or with respect to any of the borrower's property, now owned or
            hereafter acquired except for those Permitted Liens set out in the
            Letter,
      ii)   merge or amalgamate with any other entity or permit any change of
            ownership or change the Borrower's capital structure,
      iii)  sell, lease, assign, or otherwise dispose of all or substantially
            all of the Borrower's assets.

6. ADDITIONAL INFORMATION AND SECURITY

The Borrower will provide, or cause to be provided, whatever information the
Bank may request from time to time. The Borrower will provide, or cause to be
provided, any security or guarantees required by the Bank from time to time.

7. CURRENCY INDEMNITY

US$ loans must be repaid with US$ and CDN$ loans must be repaid with CDN$ and
the Borrower shall indemnify the Bank for any loss suffered by the Bank if US$
loans are repaid with CDN$ or vice versa, whether such payment is made pursuant
to an order of a court or otherwise.

8. TAXATION ON PAYMENTS

All payments made by the Borrower to the Bank will be made free and clear of all
present and future taxes (excluding the Bank's income taxes), withholdings or
deductions of whatever nature. If these taxes, withholdings or deductions are
required by applicable law and are made, The Borrower shall, as a separate and
independent obligation, pay to the Bank all additional amounts as shall fully
indemnify the Bank from any such taxes, withholdings or deductions.

9. ENVIRONMENTAL REPRESENTATION AND UNDERTAKINGS

The Borrower represents, warrants and covenants (which representation, warranty
and covenant shall continue each day hereafter) that the Borrower's property and
business is being operated in compliance with applicable environmental, health
and safety laws and regulations and that there are no judicial or administrative
proceedings in respect thereto.

The Borrower shall, when asked by the Bank, at the Borrower's expense, obtain
and provide to the Bank and appraisal, environmental audit or inspection report
of any of the Borrower's property from appraisers, auditors or inspectors
acceptable to the Bank.

The Borrower will defend, indemnify and hold harmless the Bank, its officers,
directors, employees, agents and shareholders, against all loss, costs, claims,
damages and expenses (including legal, audit and inspection expenses) which may
be suffered or incurred in connection with the breach of this environmental
representation, warranty and covenant and against environmental damage
occasioned by the Borrower's activities or by contamination of or from any of
the Borrower's property.

10. REPRESENTATION

No representation or warranty or other statement made by the Bank concerning any
of the credit facilities shall be binding on the Bank unless made by it in
writing as a specific amendment to this letter.

<Page>
                                      -3-

11. BANK MAY CHANGE AGREEMENT

The Bank may change the provisions of this Agreement from time to time. These
changes include, without limitation, changes to the Credit Limit, interest rate,
or fees payable by the Borrower. The Bank will notify the Borrower of any change
in this Agreement by mail, hand delivery or facsimile transmission or for a
change in any interest rates or interest rate definitions by posting a notice in
all of the Bank's branches. The Bank is not required to notify a Guarantor of
any change in the Agreement, including without limitation, any increase in the
Credit Limit, Overdraft Limit or Loan Amount. If more than one person signs this
Agreement, communication with any one of one party will serve as notice to all.

12. METHOD OF COMMUNICATION

The Bank may communicate with the Borrower by ordinary, uninsured mail or other
means, including hand delivery or facsimile transmission. Mailed information is
deemed to be received by the Borrower five days after mailing. Delivered
information is deemed to be received when delivered or left at the Borrower's
address. Messages sent by facsimile are deemed to be received when the Bank
receives a fax confirmation.

13. EXPENSES

The Borrower shall pay, within 5 Business Days following notification, all fees
and expenses (including but not limited to all legal fees and expenses) incurred
by the Bank in connection with the preparation, registration and ongoing
administration of this Agreement and the Bank Security and with the enforcement
of the Bank's rights and remedies under this Agreement or the Bank Security
whether or not any amounts are advanced under the Agreement. These fees and
expenses shall include, but not be limited to, all outside counsel fees and
expenses and all in-house legal fees and expenses, if in-house counsel are used,
and all outside professional advisory fees and expenses. The Borrower shall pay
interest on unpaid amounts due pursuant to this paragraph at the All-In Rate
plus 2% per annum.

14. NON WAIVER

Any failure by the Bank to object to or take action with respect to a breach of
this Agreement or any Bank Security shall not constitute a waiver of the Bank's
right to take action at a later date on that breach. No course of conduct by
the Bank will give rise to any reasonable expectation which is in any way
inconsistent with the terms and conditions of this Agreement and the security or
the Bank's right's thereunder.

15. EVIDENCE OF INDEBTEDNESS

The Bank shall record on its records the amount of all advances made hereunder,
payments made in respect thereto, and all other amounts becoming due to the Bank
under this Agreement. The Bank's records constitute, in the absence of manifest
error, conclusive evidence of the Borrower's indebtedness to the Bank pursuant
to this Agreement.

The Borrower will sign an Indemnity Agreement for all L/Cs and L/Gs issued by
the Bank.

16. ENTIRE AGREEMENTS

This Agreement replaces any previous letter agreements dealing specifically with
the Facility. Agreements relating to other credit facilities made available by
the Bank continue to apply for those other credit facilities.

17. ASSIGNMENT

The Bank may assign or grant participation in all or part of this Agreement or
in any loan made hereunder without notice to and without the Borrower's consent.
The Borrower may not assign or transfer all or any part of the Borrower's rights
or obligations under this Agreement.

18. RELEASE OF INFORMATION

The Borrower hereby irrevocably authorizes and direct the Borrower's accountant,
(the "Accountant") to deliver all financial statements and other financial
information concerning the Borrower to the Bank and agree that the Bank and the
Accountant may communicate directly with each other.

19. USE OF INFORMATION

The word "information" means the Borrower's business and credit information and
the Guarantor's business and credit information. It includes information
provided to the Bank by the Borrower, including through the products and
services the Borrower uses, and information obtained from others.

The Borrower (and the Guarantor) agree to the use of its information as follows:

i) Use of information -- The Bank may use information to establish and serve the
Borrower as its customer, determine whether any products or services of the TD
Bank Financial Group are suitable for the Borrower and offer them to the
Borrower, or when required or permitted by law. The Bank may share information
within the TD Bank Financial Group where permitted by law;

(ii) Collection and Use of Credit Information -- THE BANK MAY OBTAIN INFORMATION
FROM PARTIES OUTSIDE THE TD BANK FINANCIAL GROUP, INCLUDING THROUGH A CREDIT
CHECK, AND VERIFY INFORMATION WITH THEM. THE BORROWER AND THE GUARANTOR
AUTHORIZE THOSE PARTIES TO GIVE THE BANK INFORMATION. The Bank may disclose
information to other lenders and credit bureaux.

The Borrower and the Guarantor may obtain the privacy code -- "Protecting Your
Privacy" -- or review its options for refusing or withdrawing this consent,
including its option not to be contacted about offers of products or services,
by contacting the Branch or calling the Bank at 1-800-9TD BANK.

*The TD Bank Financial Group means The Toronto-Dominion Bank and its
subsidiaries and affiliates providing deposit, investment, loan, securities,
trust, insurance and other products or services.

20. SET-OFF

In addition to and not in limitation of any rights now or hereafter granted
under applicable law, the Bank may at any time and from time to time without
notice to the Borrower or any other person, any notice being expressly waived by
the Borrower, set-off and compensate and apply any and all deposits, general or
special, time or demand, provisional or final, matured or unmatured, in any
currency, and any other indebtedness at any time owing by the Bank, to or for
the Borrower's credit or the Borrower's account against and on account of the
indebtedness and liability under this Agreement notwithstanding that any of them
are contingent or unmatured or in a different currency than the indebtedness and
liability under this Agreement.

When applying a deposit in a different currency than the indebtedness under this
Agreement to the indebtedness under this Agreement, the Bank will convert the
deposit to the currency of the indebtedness under this Agreement using the
Bank's noon spot rate of exchange for the conversion of such currency.

21. MISCELLANEOUS

i)    The Borrower has received a signed copy of this Agreement;
ii)   If more than one person, firm or corporation signs this Agreement as the
      Borrower, the Bank may require payment of all amounts payable under this
      Agreement for any one of them, or a portion from each, but the Bank is
      released from any of its obligations by performing that obligation to any
      one of them;
iii)  Accounting terms will (to the extent not defined in this Agreement) be
      interpreted in accordance with accounting principles established from time
      to time by the Canadian Institute of Chartered Accountants (or any
      successor) consistently applied, and all financial statements and
      information provided to the Bank will be prepared in accordance with those
      principles;
iv)   This Agreement is governed by the law of the Province or Territory where
      the Branch/Centre is located;
v)    Unless otherwise indicated, all amounts in this Agreement are in Canadian
      dollars.

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