Document:

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                                                                     EXHIBIT 4.2

                   INSIGHT HEALTH SERVICES HOLDINGS CORP.,

                          INSIGHT HEALTH SERVICES CORP.

                                     - AND -

            THE SUBSIDIARY GUARANTORS LISTED ON SCHEDULE A HERETO

                                  $225,000,000

                  9-7/8% SENIOR SUBORDINATED NOTES DUE 2011

                               PURCHASE AGREEMENT

                             DATED OCTOBER 25, 2001

                         BANC OF AMERICA SECURITIES LLC

                          FIRST UNION SECURITIES, INC.
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                                Table of Contents

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                                                                                Page

<S>         <C>                                                                 <C>
Section 1.  Representations and Warranties..................................     3
      (a)   No Registration Required........................................     3
      (b)   No Integration of Offerings or General Solicitation.............     3
      (c)   Eligibility for Resale Under Rule 144A..........................     4
      (d)   The Offering Memorandum.........................................     4
      (e)   Incorporated Documents..........................................     4
      (f)   The Remarketing Agreement.......................................     4
      (g)   The Registration Rights Agreement...............................     4
      (h)   The DTC Letter of Representations...............................     5
      (i)   Authorization of the Securities and the Exchange Securities.....     5
      (j)   Authorization of the Indenture..................................     6
      (k)   Descriptions in the Offering Memorandum.........................     6
      (l)   No Material Adverse Change......................................     6
      (m)   Independent Accountants.........................................     7
      (n)   Preparation of the Financial Statements.........................     7
      (o)   Incorporation and Good Standing of Company and its
            Subsidiaries....................................................     7
      (p)   Capitalization and Other Capital Stock Matters..................     8
      (q)   Non-Contravention of Instruments; No Further Authorizations
            or Approvals Required...........................................     9
      (r)   No Material Actions or Proceedings..............................    10
      (s)   Intellectual Property Rights....................................    10
      (t)   All Necessary Permits, Etc......................................    10
      (u)   Regulatory Matters..............................................    10
      (v)   Medicare/Medicaid Participation.................................    12
      (w)   Title to Properties.............................................    13
      (x)   Material Agreements.............................................    13
      (y)   Tax Law Compliance..............................................    13
      (z)   Company Not an "Investment Company".............................    13
      (aa)  Insurance.......................................................    13
      (bb)  No Price Stabilization or Manipulation..........................    14
      (cc)  Solvency........................................................    14
      (dd)  No Unlawful Contributions or Other Payments.....................    14
      (ee)  Company's Accounting System.....................................    14
      (ff)  Compliance with Environmental Laws..............................    15
      (gg)  ERISA Compliance................................................    15
      (hh)  Regulation S Compliance.........................................    16
      (ii)  Taxes; Fees.....................................................    16
      (jj)  No Labor Disputes...............................................    16

Section 2.  Issuance and Delivery of the Securities.........................    17
      (a)   The Securities..................................................    17
      (b)   The Closing Date................................................    17
      (c)   Delivery of the Notes...........................................    17
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      (d)   Delivery of Offering Memorandum to the Initial Purchaser........    17
      (e)   Initial Purchaser as Qualified Institutional Buyer..............    17

Section 3.  Covenants.......................................................    18
      (a)   The Initial Purchaser's Review of Proposed Amendments and
            Supplements.....................................................    18
      (b)   Amendments and Supplements to the Offering Memorandum and
            Other Securities Act Matters....................................    18
      (c)   Copies of the Offering Memorandum...............................    18
      (d)   Blue Sky Compliance.............................................    18
      (e)   Depositary......................................................    19
      (f)   Additional Issuer Information...................................    19
      (g)   Future Agreement Not to Offer or Sell Additional Securities.....    20
      (h)   Future Reports to the Initial Purchaser.........................    20
      (i)   No Integration..................................................    20
      (j)   Legended Securities.............................................    20
      (k)   PORTAL..........................................................    20
      (l)   Rating of Securities............................................    21

Section 4.  Payment of Expenses.............................................    21

Section 5.  Additional Covenants............................................    21
      (a)   Accountants' Comfort Letter.....................................    21
      (b)   Opinion of Counsel for the Company..............................    22
      (c)   Opinion of General Counsel for the Company......................    22
      (d)   Opinion of Regulatory Counsel for the Company...................    22
      (e)   Officers' Certificate...........................................    22
      (f)   Bring-down Comfort Letters......................................    22
      (g)   Registration Rights Agreement...................................    23
      (h)   Additional Documents............................................    23

Section 6.  Reimbursement of Initial Purchaser's Expenses...................    23

Section 7.  Offer, Sale and Resale Procedures...............................    23
      (a)   Offers and Sales Only to Qualified Institutional Buyers and
            Non-U.S. Persons................................................    23
      (b)   No General Solicitation.........................................    23
      (c)   Restrictions on Transfer........................................    23

Section 8.  Indemnification.................................................    24
      (a)   Indemnification of the Initial Purchaser........................    24
      (b)   Indemnification of the Company and the Guarantors and their
            Directors and Officers..........................................    25
      (c)   Notifications and Other Indemnification Procedures..............    25
      (d)   Settlements.....................................................    26
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Section 9.  Contribution....................................................    27

Section 10. [Intentionally Omitted].........................................    28

Section 11. Representations and Indemnities to Survive Delivery.............    28

Section 12. Notices.........................................................    28

Section 13. Successors......................................................    30

Section 14. Partial Unenforceability........................................    30

Section 15. Governing Law; Consent to Jurisdiction..........................    30
      (a)   Governing Law Provisions........................................    30
      (b)   Consent to Jurisdiction.........................................    30

Section 16. General Provisions..............................................    30
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SCHEDULE A    -   Guarantors

SCHEDULE B    -   Material Agreements

SCHEDULE C    -   Subsidiaries of InSight Health Services Corp.

SCHEDULE D    -   Initial Purchasers

EXHIBIT A-1   -   Form of Opinion of Kaye Scholer LLP

EXHIBIT A-2   -   Form of Opinion of Hunton & Williams

EXHIBIT B     -   Form of Opinion of General Counsel for the Company

EXHIBIT C     -   Form of Opinion of Regulatory Counsel for the Company

ANNEX 1       -   Terms and Conditions of Offers and Sales

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                               Purchase Agreement

                                                            October 25, 2001

BANC OF AMERICA SECURITIES LLC
FIRST UNION SECURITIES, INC.

c/o Banc of America Securities LLC
9 West 57th Street, 47th Floor
New York, NY  10019

Ladies and Gentlemen:

            Introductory. Pursuant to the terms of a Note Purchase Agreement,
dated October 17, 2001, among InSight Health Services Acquisition Corp., a
Delaware corporation, InSight Health Services Corp., a Delaware corporation (the
"Company"), InSight Health Services Holdings Corp., a Delaware corporation
("Holdings"), the Subsidiary Guarantors (as defined herein), Banc of America
Bridge LLC and Banc of America Securities LLC, (the "Note Purchase Agreement"),
the Company is (i) issuing to Banc of America Securities LLC and First Union
Securities, Inc. (collectively, the "Initial Purchasers"), acting severally and
not jointly, the respective amounts set forth in Schedule D of $200,000,000
aggregate principal amount of the Company's 9-7/8% Senior Subordinated Notes Due
2011 (the "Initial Notes") in exchange for $200,000,000 principal amount of the
Company's 12-1/8% Senior Subordinated Notes due 2011 (the "Existing Notes") and
(ii) issuing and selling to the Initial Purchasers, acting severally and not
jointly, the respective amounts set forth in Schedule D of an additional
$25,000,000 aggregate principal amount of the Company's 9-7/8% Senior
Subordinated Notes due 2011 (the "Additional Notes" and, together with the
Initial Notes, the "Notes). Terms used herein and not otherwise defined herein
shall have the respective meanings assigned to them in the Note Purchase
Agreement.

            The Notes will be issued pursuant to an indenture, dated as of
October 30, 2001 (the "Indenture"), among the Company, the Guarantors (as
defined below) and State Street Bank and Trust Company N.A., as trustee (the
"Trustee"). Notes issued in book-entry form will be issued in the name of Cede &
Co., as nominee of The Depository Trust Company (the "Depositary") pursuant to a
letter of representations, to be dated as of the Closing Date (as defined in
Section 2), to be entered into in connection with the issuance of the Securities
(the "DTC Letter of Representations") among the Company, the Trustee and the
Depositary.

            The payment of principal of, premium and Liquidated Damages (as
defined in the Indenture), if any, and interest on the Notes and the Exchange
Notes (as defined below) will,
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upon issuance of the Notes, become fully and unconditionally guaranteed on a
senior subordinated and unsecured basis, jointly and severally by (i) Holdings,
(ii) each of the Company's directly and indirectly wholly-owned subsidiaries
listed in Schedule A attached hereto, and (iii) any wholly-owned or other
subsidiary of the Company formed or acquired after the Closing Date that
executes an additional guarantee in accordance with the terms of the Indenture,
and respective successors and assigns of Holdings and the subsidiaries of the
Company referred to in (ii) and (iii) above (collectively, the "Guarantors," and
the subsidiaries referred to in (ii) and (iii) above, the "Subsidiary
Guarantors"), pursuant to their guarantees (the "Guarantees"). The Notes and the
Guarantees attached thereto are herein collectively referred to as the
"Securities," and the Exchange Notes and the Guarantees attached thereto are
herein collectively referred to as the "Exchange Securities."

            The holders of the Notes will be entitled to the benefits of a
remarketed notes registration rights agreement, to be dated as of the Closing
Date (the "Registration Rights Agreement"), among the Company, the Guarantors
and the Initial Purchasers, substantially in the form of Exhibit E attached to
the Note Purchase Agreement, pursuant to which the Company and the Guarantors
agree to file, within 120 days of the Closing Date, a registration statement
with the Securities and Exchange Commission (the "Commission") registering the
Exchange Securities under the Securities Act of 1933, as amended (the
"Securities Act," which term, as used herein, includes the rules and regulations
of the Commission promulgated thereunder).

            The Company understands that the Initial Purchasers propose to make
an offering of the Securities on the terms and in the manner set forth herein
and in the Offering Memorandum (as defined below) and agrees that the Initial
Purchasers may sell, subject to the conditions set forth herein, all or a
portion of the Securities to purchasers (the "Subsequent Purchasers") at any
time after the date of this Agreement. The Securities are to be offered and sold
to or through the Initial Purchasers without being registered with the
Commission under the Securities Act, in reliance upon exemptions therefrom. The
terms of the Securities and the Indenture will require that investors that
acquire Securities expressly agree that Securities may only be resold or
otherwise transferred, after the date hereof, if such Securities are registered
for sale under the Securities Act or if an exemption from the registration
requirements of the Securities Act is available (including the exemptions
afforded by Rule 144A under the Securities Act ("Rule 144A") or Regulation S
under the Securities Act ("Regulation S")).

            The Company has prepared and delivered to the Initial Purchasers
copies of a preliminary offering memorandum, dated October 19, 2001 (the
"Preliminary Offering Memorandum"), and has prepared and will deliver to the
Initial Purchasers, copies of the Offering Memorandum (defined below),
describing the terms of the Securities, each for use by the Initial Purchasers
in connection with their solicitation of offers to purchase the Securities. As
used herein, the "Offering Memorandum" shall mean, with respect to any date or
time referred to in this Agreement, the offering memorandum, dated October 25,
2001, including amendments or supplements thereto, any exhibits thereto and the
Incorporated Documents (as defined in Section 1 below), in the most recent form
that has been prepared and delivered by the Company to the Initial Purchasers in
connection with their solicitation of offers to purchase Securities. Further,
any reference to the Preliminary Offering Memorandum or the Offering Memorandum
shall be deemed to refer to and include any Additional Issuer Information (as
defined in Section 3) furnished by the Company prior to the completion of the
distribution of the Securities.

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            All references in this Agreement to financial statements and other
information which is "contained," "included" or "stated" in the Offering
Memorandum (or other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which
are incorporated by reference in the Offering Memorandum; all references in this
Agreement to amendments or supplements to the Offering Memorandum shall be
deemed to mean and include the filing of any document under the Securities
Exchange Act of 1934 (as amended, the "Exchange Act," which term, as used
herein, includes the rules and regulations of the Commission promulgated
thereunder) which is incorporated or deemed to be incorporated by reference in
the Offering Memorandum; and all references in this Agreement to the Transaction
Documents shall be deemed to mean and include this Purchase Agreement, the
Registration Rights Agreement, the Indenture, the Securities and the DTC Letter
of Representations. References herein to "Subsidiaries" shall mean each
corporation, partnership, joint venture or other entity in which (i) the Company
owns, directly or indirectly, 50% or more of the outstanding voting securities
or equity interests or (ii) the Company or any Subsidiary is the sole general
partner or the sole managing member.

            Each of the Company and the Guarantors hereby confirms its
respective agreement with the Initial Purchasers as follows:

            Section 1. Representations and Warranties. The Company and each of
the Guarantors hereby jointly and severally represent, warrant and covenant to
each Initial Purchaser as follows:

            (a) No Registration Required. Subject to compliance by the Initial
      Purchasers with the representations and warranties set forth in Section
      2(e) hereof and with the procedures set forth in Section 7 hereof, it is
      not necessary in connection with the issuance and sale of the Securities
      to the Initial Purchasers and the offer, sale and delivery of the
      Securities to each Subsequent Purchaser in the manner contemplated by this
      Agreement and the Offering Memorandum to register the Securities under the
      Securities Act or, until such time as the Exchange Securities are issued
      pursuant to an effective registration statement, to qualify the Indenture
      under the Trust Indenture Act of 1939 (the "Trust Indenture Act," which
      term, as used herein, includes the rules and regulations of the Commission
      promulgated thereunder).

            (b) No Integration of Offerings or General Solicitation. None of the
      Company or any Guarantor has, directly or indirectly, solicited any offer
      to buy or offered to sell, and none of them will, directly or indirectly,
      solicit any offer to buy or offer to sell, in the United States or to any
      United States citizen or resident, any security which is or would be
      integrated with the sale of the Securities in a manner that would require
      the Securities to be registered under the Securities Act. None of the
      Company, the Guarantors, their respective affiliates (as such term is
      defined in Rule 501(b) under the Securities Act (each, an "Affiliate")) or
      any person acting on their behalf (other than the Initial Purchasers, as
      to whom none of the Company or any Guarantor makes any representation or
      warranty) has engaged or will engage, in connection with the offering of
      the Securities, in any form of general solicitation or general advertising
      within the meaning of Rule 502(c) under the Securities Act. With respect
      to those Securities sold in reliance upon Regulation S, (i) none of the
      Company, the Guarantors, their Affiliates or

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      any person acting on their behalf (other than the Initial Purchasers, as
      to whom none of the Company or any Guarantor makes any representation or
      warranty) has engaged or will engage in any directed selling efforts
      within the meaning of Regulation S and (ii) each of the Company, the
      Guarantors and their Affiliates and any person acting on their behalf
      (other than the Initial Purchasers, as to whom none of the Company or any
      Guarantor makes any representation or warranty) has complied and will
      comply with the offering restrictions set forth in Regulation S.

            (c) Eligibility for Resale Under Rule 144A. The Securities are
      eligible for resale pursuant to Rule 144A and will not be, at the Closing
      Date, of the same class as securities listed on a national securities
      exchange registered under Section 6 of the Securities Exchange Act of
      1934, as amended (the "Exchange Act," which term, as used herein, includes
      the rules and regulations of the Commission promulgated thereunder) or
      quoted in a U.S. automated interdealer quotation system.

            (d) The Offering Memorandum. The Offering Memorandum does not, and
      at the Closing Date will not, include an untrue statement of a material
      fact or omit to state a material fact necessary in order to make the
      statements therein, in the light of the circumstances under which they
      were made, not misleading; provided that this representation, warranty and
      agreement shall not apply to statements in or omissions from the Offering
      Memorandum made in reliance upon and in conformity with information
      furnished to the Company in writing by the Initial Purchasers expressly
      for use in the Offering Memorandum. Each of the Preliminary Offering
      Memorandum and the Offering Memorandum, as of its respective date,
      contains all the information specified in, and meeting the requirements of
      Rule 144A(d)(4). None of the Company or any Guarantor has distributed and
      none of them will distribute, prior to the later of the Closing Date and
      the completion of the Initial Purchasers' distribution of the Securities,
      any offering material in connection with the offering and sale of the
      Securities other than the Preliminary Offering Memorandum, the Offering
      Memorandum or as agreed upon by the Initial Purchasers.

            (e) Incorporated Documents. The Offering Memorandum as delivered
      from time to time shall incorporate by reference the Annual Report of the
      Company on Form 10-K for the fiscal year ended June 30, 2001 filed with
      the Commission on September 14, 2001 (the "Annual Report"), each Quarterly
      Report of the Company on Form 10-Q and each Current Report of the Company
      on Form 8-K (and any amendment(s) thereto) filed with the Commission
      between the date hereof and the Closing Date. The documents incorporated
      or deemed to be incorporated by reference in the Offering Memorandum, at
      the time they were, or hereafter are, filed with the Commission
      (collectively, the "Incorporated Documents") complied and will comply in
      all material respects with the requirements of the Exchange Act.

            (f) The Purchase Agreement. This Agreement has been duly authorized,
      executed and delivered by each of the Company and the Guarantors.

            (g) The Registration Rights Agreement. At the Closing Date, the
      Registration Rights Agreement will have been duly authorized, executed and
      delivered by, and

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      (assuming the due authorization, execution and delivery thereof by the
      other parties thereto) will be a valid and binding agreement of, the
      Company and each Guarantor, enforceable in accordance with its terms,
      except as rights to indemnification and contribution thereunder may be
      limited by applicable law and except as the enforcement thereof may be
      limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
      moratorium or other similar laws relating to or affecting the rights and
      remedies of creditors or by general equitable principles (whether
      considered in a proceeding at law or in equity). Pursuant to the
      Registration Rights Agreement, the Company and each Guarantor will agree
      to file with the Commission, under the circumstances set forth therein,
      (i) a registration statement under the Securities Act relating to another
      series of debt securities of the Company with terms substantially
      identical to the Notes (the "Exchange Notes") to be offered in exchange
      for the Notes (the "Exchange Offer") and (ii) to the extent required by
      the Registration Rights Agreement, a shelf registration statement pursuant
      to Rule 415 of the Securities Act relating to the resale by certain
      holders of the Notes, and in each case, to use its best efforts to cause
      such registration statements to be declared effective.

            (h) The DTC Letter of Representations. At the Closing Date, the DTC
      Letter of Representations will have been duly authorized, executed and
      delivered by, and (assuming the due authorization, execution and delivery
      thereof by the other parties thereto) will be a valid and binding
      agreement of, the Company, enforceable in accordance with its terms except
      as the enforcement thereof may be limited by bankruptcy, insolvency,
      fraudulent conveyance, reorganization, moratorium or other similar laws
      relating to or affecting the rights and remedies of creditors or by
      general equitable principles (whether considered in a proceeding at law or
      in equity).

            (i) Authorization of the Securities and the Exchange Securities. (i)
      The Notes to be issued to the Initial Purchasers are in the form
      contemplated by Section 10(a) of the Note Purchase Agreement and by the
      Indenture, have been duly authorized for issuance and sale pursuant to
      this Agreement and the Indenture and, at the Closing Date, will have been
      duly executed by the Company and, when authenticated in the manner
      provided for in the Indenture and delivered in exchange for the Existing
      Notes (and against payment of the purchase price for the Additional
      Notes), will constitute valid and binding agreements of the Company,
      enforceable in accordance with their terms, except as the enforcement
      thereof may be limited by bankruptcy, insolvency, fraudulent conveyance,
      reorganization, moratorium or other similar laws relating to or affecting
      the rights and remedies of creditors or by general equitable principles
      (whether considered in a proceeding at law or in equity) and will be
      entitled to the benefits of the Indenture; (ii) prior to their issuance,
      the Exchange Notes will have been duly and validly authorized for issuance
      by the Company, and when issued and authenticated in accordance with the
      terms of the Indenture, the Registration Rights Agreement and the Exchange
      Offer, will constitute valid and binding obligations of the Company,
      enforceable against the Company in accordance with their terms, except as
      the enforcement thereof may be limited by bankruptcy, insolvency,
      fraudulent conveyance, reorganization, moratorium, or similar laws
      relating to or affecting enforcement of the rights and remedies of
      creditors or by general equitable principles (whether considered in a
      proceeding at law or in equity) and will be entitled to the benefits of
      the Indenture; (iii) the Guarantees of the

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      Notes will be in the form contemplated by the Indenture, will have been,
      prior to their issuance, duly authorized for issuance and sale pursuant to
      this Agreement and the Indenture and will have been duly executed by each
      of the Guarantors and, when the Guarantees have been authenticated in the
      manner provided for in the Indenture and delivered, will constitute valid
      and binding agreements of the Guarantors, enforceable in accordance with
      their terms, except as the enforcement thereof may be limited by
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
      or other similar laws relating to or affecting the rights and remedies of
      creditors or by general equitable principles (whether considered in a
      proceeding at law or in equity) and will be entitled to the benefits of
      the Indenture; and (iv) prior to their issuance, the Guarantees of the
      Exchange Notes will be in the form contemplated by the Indenture and will
      have been duly and validly authorized for issuance and sale pursuant to
      the Indenture and when issued and authenticated in accordance with the
      terms of the Indenture, will constitute valid and binding agreements of
      the Guarantors, enforceable in accordance with their terms, except as the
      enforcement thereof may be limited by bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium or other similar laws relating to
      or affecting the rights and remedies of creditors or by general equitable
      principles (whether considered in a proceeding at law or in equity) and
      will be entitled to the benefits of the Indenture.

            (j) Authorization of the Indenture. The Indenture has been duly
      authorized by the Company and the Guarantors and, at the Closing Date,
      will have been duly executed and delivered by the Company and the
      Guarantors and (assuming due authorization, execution and delivery by
      other parties thereto) will constitute a valid and binding agreement of
      the Company and the Guarantors, enforceable against the Company and the
      Guarantors in accordance with its terms, except as the enforcement thereof
      may be limited by bankruptcy, insolvency, fraudulent conveyance,
      reorganization, moratorium or other similar laws relating to or affecting
      the rights and remedies of creditors or by general equitable principles
      (whether considered in a proceeding at law or in equity).

            (k) Descriptions in the Offering Memorandum. The Notes, the
      Guarantees of the Notes and the Indenture conform, or will conform, in all
      material respects to the respective statements relating thereto contained
      in the Offering Memorandum. The Exchange Notes and the Guarantees of the
      Exchange Notes will conform in all material respects to the respective
      statements relating thereto contained in the Offering Memorandum and the
      Registration Statement at the time such Registration Statement becomes
      effective.

            (l) No Material Adverse Change. Except as otherwise disclosed in the
      Offering Memorandum, subsequent to the respective dates as of which
      information is given in the Offering Memorandum, (i) there has been no
      material adverse change or any development that could reasonably be
      expected to result in a material adverse change, in the condition,
      financial or otherwise, or in the business, assets, properties,
      liabilities (contingent or otherwise) or operations, of Holdings or the
      Company and its Subsidiaries considered as one entity (any such change or
      development is called a "Material Adverse Change"); (ii) Holdings, and the
      Company and its Subsidiaries considered as one entity, have not incurred
      any material liability or obligation, indirect, direct or contingent, not
      in

                                       6
<PAGE>
      the ordinary course of business nor entered into any material transaction
      or agreement not in the ordinary course of business; and (iii) there has
      been no dividend or distribution of any kind declared, paid or made by
      Holdings, the Company or any of its Subsidiaries on any class of capital
      stock (except for dividends paid by a Subsidiary of the Company to the
      Company or to another Subsidiary of the Company) or repurchase or
      redemption by Holdings, the Company or any of its Subsidiaries of any
      class of capital stock.

            (m) Independent Accountants. Arthur Andersen LLP (the "Independent
      Accountants"), who have expressed their opinion with respect to the
      financial statements (which term as used in this Agreement includes the
      related notes thereto) included in the Offering Memorandum are independent
      public or certified public accountants with respect to the Company within
      the meaning of Regulation S-X under the Exchange Act.

            (n) Preparation of the Financial Statements. The consolidated
      financial statements of the Company, together with the related notes,
      included in the Offering Memorandum present fairly, in all material
      respects, the consolidated financial position of the Company and its
      Subsidiaries as of and at the dates indicated and the results of their
      operations and cash flows for the periods specified. The financial
      statements included in the Offering Memorandum comply as to form with the
      applicable requirements of the Securities Act. Such financial statements
      have been prepared in conformity with generally accepted accounting
      principles as applied in the United States of America applied on a
      consistent basis throughout the periods involved, except as may be
      expressly stated in the related notes thereto. The financial data with
      respect to the Company and its Subsidiaries set forth in the Offering
      Memorandum under the captions "Offering Memorandum Summary -- Summary
      Consolidated Historical and Pro Forma Financial and Operating Data,"
      "Unaudited Pro Forma Condensed Consolidated Financial Statements" and
      "Selected Historical Financial and Operating Data" present fairly, in all
      material respects, the historical financial information set forth therein
      on a basis consistent with that of the audited and unaudited financial
      statements contained in the Offering Memorandum. The unaudited pro forma
      financial data of the Company and its Subsidiaries, and the related notes
      thereto included in the Offering Memorandum present fairly, in all
      material respects, the information contained therein, have been prepared
      in accordance with the Commission's rules and guidelines with respect to
      pro forma financial statements and have been properly presented on the
      bases described therein, and the assumptions used in the preparation
      thereof are believed to be reasonable in light of then existing conditions
      and the adjustments used therein are appropriate to give effect to the
      transactions and circumstances referred to therein.

            (o) Incorporation and Good Standing of Company and its Subsidiaries.
      Each of Holdings, the Company and the Subsidiaries of the Company has been
      duly organized and is validly existing as a corporation, limited
      partnership or limited liability company, as the case may be, in good
      standing under the laws of the jurisdiction of its organization; each of
      Holdings, the Company and the Subsidiaries of the Company has the power
      and authority to own, lease and operate its properties and to conduct its
      business as described in the Offering Memorandum; and each of Holdings,
      the Company and the Subsidiary Guarantors has the power and authority to
      enter into and/or perform its obligations, as the case may be, under each
      of this Agreement, the Indenture, the Registration Rights

                                        7
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      Agreement, the DTC Letter of Representations, the Securities and the
      Exchange Securities to which it is a party. Each of Holdings, the Company
      and each of its Subsidiaries is duly qualified as a foreign corporation,
      limited liability company or limited partnership, as the case may be, to
      transact business and is in good standing in each jurisdiction in which
      such qualification is required, whether by reason of the ownership or
      leasing of property or the conduct of business, except for such
      jurisdictions where the failure to so qualify or to be in good standing
      would not, individually or in the aggregate, result in a Material Adverse
      Change.

            (p) Capitalization and Other Capital Stock Matters. At the date
      specified in such table, the Company had the authorized, issued and
      outstanding capitalization as set forth in the Offering Memorandum under
      the caption "Capitalization" under the heading "Actual." At the date
      specified in such table, on a consolidated basis, after giving pro forma
      effect to (i) the issuance and sale of the Securities pursuant hereto,
      (ii) the consummation of the Merger, (iii) the funding of the Credit
      Facilities, (iv) the Equity Contribution, (v) the Option Rollover, each as
      described in the Offering Memorandum, and (vi) the application of the
      proceeds from the issuance and sale of the Securities, the funding of the
      Credit Facilities, the Equity Contribution and the Option Rollover to the
      refinancing transactions described under the caption "Use of Proceeds" in
      the Offering Memorandum, the Company would have an authorized and
      outstanding capitalization as set forth in the Offering Memorandum under
      the caption "Capitalization" under the heading "Pro Forma." All of the
      outstanding shares of capital stock of Holdings and the Company have been
      duly authorized and validly issued, are fully paid and nonassessable. None
      of the outstanding shares of capital stock of Holdings or the Company were
      issued in violation of any preemptive rights, rights of first refusal or
      other similar rights to subscribe for or purchase securities of Holdings
      or the Company, as the case may be. Except for rights of first refusal or
      "tag-along" or "drag along" rights customarily contained in stockholders'
      agreements, partnership agreements or joint venture operating agreements,
      there are no authorized or outstanding options, warrants, preemptive
      rights, rights of first refusal or other rights to purchase, or equity or
      debt securities convertible into or exchangeable or exercisable for, any
      capital stock of Holdings or the Company or any of the Subsidiaries, other
      than those described in the Offering Memorandum. The description of
      Holdings' stock option, stock bonus, stock purchase and other stock plans
      or arrangements and the options or other rights granted thereunder, set
      forth in the Offering Memorandum accurately and fairly describes, in all
      material respects, such plans, arrangements, options and rights. As of the
      date hereof, all of the issued and outstanding capital stock of the
      Company has been duly authorized and validly issued, is fully paid and
      nonassessable and is owned directly by Holdings, free and clear of any
      security interest, mortgage, pledge, lien, encumbrance or claim except as
      described in the Offering Memorandum. In addition, all of the issued and
      outstanding capital stock of each Subsidiary, except as described in the
      Offering Memorandum, has been duly authorized and validly issued, is fully
      paid and nonassessable and is owned by the Company, directly or through
      subsidiaries, free and clear of any security interest, mortgage, pledge,
      lien, encumbrance or claim, except for any security interests, mortgages,
      pledges, liens, encumbrances or claims of the lenders existing under the
      Credit Agreement, dated as of October 17, 2001, among the Company, the
      Guarantors, Bank of America, N.A., as administrative agent, First Union
      National Bank, as

                                       8
<PAGE>
      syndication agent, The CIT Group/Business, Inc., as documentation agent,
      and the other lenders party thereto (such agreement, as amended from time
      to time, the "Existing Credit Agreement"). The only Subsidiaries of the
      Company are those Subsidiaries listed in Schedule C hereto.

            (q) Non-Contravention of Existing Instruments; No Further
      Authorizations or Approvals Required. None of Holdings, the Company or any
      of its Subsidiaries is in violation of its charter or by-laws or is in
      default or has violated any provision of, or committed or failed to
      perform any act which, with or without notice, lapse of time, or both,
      would reasonably be expected to constitute a default ("Default") under any
      indenture, mortgage, loan or credit agreement, note, contract, franchise,
      lease, license or other instrument to which Holdings, the Company or any
      of its Subsidiaries is a party or by which it or any of them may be bound
      or to which any of the property or assets of Holdings, the Company or any
      of its Subsidiaries is subject (each, an "Instrument"), except for such
      Defaults as would not, individually or in the aggregate, result in a
      Material Adverse Change or except for such defaults that have been waived
      in writing. The Company's and each Guarantor's execution, delivery and
      performance of this Agreement, the Company's and each Guarantor's
      execution and delivery of, and the performance by the Company and the
      Guarantors of, the Registration Rights Agreement and the Indenture, the
      Company's execution and delivery of, and the performance by the Company
      of, the DTC Letter of Representations, and the issuance and delivery of
      the Securities or the Exchange Securities, and consummation of the
      transactions contemplated hereby and thereby and by the Offering
      Memorandum (i) will not result in any violation of the provisions of the
      partnership agreement, operating agreement, charter or by-laws, as
      applicable, of Holdings, the Company or any of its Subsidiaries, (ii) will
      not conflict with or constitute a breach of, or Default or a Debt
      Repayment Triggering Event (as defined below) under, or result in the
      creation or imposition of any lien, charge or encumbrance upon any
      property or assets of Holdings, the Company or any of its Subsidiaries
      pursuant to, or require the consent of any other party to, any Instrument,
      except for such conflicts, breaches, Defaults, Debt Repayment Triggering
      Events, liens, charges or encumbrances as would not, individually or in
      the aggregate, result in a Material Adverse Change and (iii) will not
      result in any violation of any law, administrative regulation or
      administrative or court decree applicable to Holdings or the Company or
      any of its Subsidiaries except for such violations that would not,
      individually or in the aggregate, result in a Material Adverse Change. No
      consent, approval, authorization or other order of, or registration or
      filing with, any court or other governmental or regulatory authority or
      agency, is required for the Company's or each Guarantor's execution,
      delivery and performance of this Agreement, the Registration Rights
      Agreement, the DTC Letter of Representations or the Indenture, to which it
      is a party, or the issuance and delivery of the Securities or the Exchange
      Securities, or consummation of the transactions contemplated hereby and
      thereby and by the Offering Memorandum, except such as will be obtained by
      the Company or the Guarantors and are in full force and effect under the
      Securities Act, the Trust Indenture Act and such as may be required under
      state securities laws or the blue sky laws of any jurisdiction in
      connection with the purchase and distribution of the Securities by the
      Initial Purchasers in the manner contemplated herein and in the Offering
      Memorandum and in connection with Holdings', the Company's and the
      Subsidiary Guarantors' obligations under the

                                       9
<PAGE>
      Registration Rights Agreement. As used herein, a "Debt Repayment
      Triggering Event" means any event or condition which gives, or with the
      giving of notice or lapse of time would give, the holder of any note,
      debenture or other evidence of material indebtedness (or any person acting
      on such holder's behalf) the right to require the repurchase, redemption
      or repayment of all or a portion of such indebtedness by Holdings or the
      Company or any of its Subsidiaries.

            (r) No Material Actions or Proceedings. Except as otherwise
      disclosed in the Offering Memorandum, there are no legal or governmental
      actions, suits or proceedings pending or, to the best of the knowledge of
      Holdings and the Company, threatened (i) against or affecting Holdings or
      the Company or any of the Subsidiaries, (ii) which has as the subject
      thereof any property owned or leased by, Holdings, the Company or any of
      its Subsidiaries, where in any such case (A) there is a reasonable
      possibility that such action, suit or proceeding might be determined
      adversely to Holdings or the Company or such Subsidiary and (B) any such
      action, suit or proceeding, if so determined adversely, would reasonably
      be expected to result in a Material Adverse Change or materially and
      adversely affect the transactions contemplated by this Agreement.

            (s) Intellectual Property Rights. The Company and its Subsidiaries
      own, possess or license sufficient trademarks, trade names, patent rights,
      copyrights, licenses, approvals, trade secrets and other similar rights
      (collectively, "Intellectual Property Rights") reasonably necessary to
      conduct their businesses as now conducted; and the expected expiration of
      any of such Intellectual Property Rights would not result in a Material
      Adverse Change. Neither the Company nor any of its Subsidiaries has
      received any notice of infringement or conflict with asserted Intellectual
      Property Rights of others, which infringement or conflict, if the subject
      of an unfavorable decision, ruling or filing would reasonably be expected
      to result in a Material Adverse Change and, except as otherwise disclosed
      in the Offering Memorandum, neither the Company nor any of its
      Subsidiaries is in default under the terms of any license or similar
      agreement related to any Intellectual Property Rights necessary to conduct
      their business as now conducted or contemplated except as would not
      reasonably be expected to result in a Material Adverse Change.

            (t) All Necessary Permits, Etc. The Company and each of its
      Subsidiaries possess such valid and current certificates, authorizations
      or permits issued by the appropriate municipal, state, federal or foreign
      regulatory agencies or bodies necessary to conduct their respective
      businesses as now conducted except as would not reasonably be expected to
      result in a Material Adverse Change, and neither the Company nor any
      Subsidiary has received any notice of proceedings relating to the
      revocation or modification of, or non-compliance with, any such license,
      certificate, authorization or permit which, singly or in the aggregate, if
      the subject of an unfavorable decision, ruling or finding, could
      reasonably be expected to result in a Material Adverse Change.

            (u) Regulatory Matters. To the knowledge of Holdings, the Company
      and each Subsidiary Guarantor, none of (i) the Company, any of its
      Subsidiaries, or the officers, directors, employees, or agents (as defined
      in 42 C.F.R. Part 420 Subpart C and 42 C.F.R. Section 1001.1001(a)(2)) of
      the Company or any of its Subsidiaries, or (ii) any

                                       10
<PAGE>
      entity which the Company or any of its Subsidiaries manages or for which
      the Company or any of its Subsidiaries provides billing services ("Managed
      Entity") or the employees of any Managed Entity who are leased from the
      Company or any of its Subsidiaries, has been charged with, or has been or
      is being investigated with respect to, any activity (and with respect to
      the officers, directors, agents and employees of the Company or any of its
      Subsidiaries or any employee of any Managed Entity as described above,
      only as to any activity during their employment or association with the
      Company, any Subsidiary of the Company or any Managed Entity) that
      materially contravenes or could materially contravene or constitutes or
      could constitute a material violation of any Healthcare Law. To the
      knowledge of Holdings, the Company and each Subsidiary Guarantor, no
      person who has a direct or indirect ownership interest of 5% or more (as
      those terms are defined in 42 C.F.R. Part 420 Subpart C and 42 C.F.R.
      Section 1001.1001(a)(2)) in the Company or any Subsidiary, has been
      charged with, or has been or is being investigated with respect to, any
      activity involving the Company or any Subsidiary that materially
      contravenes or could materially contravene or constitutes or could
      constitute a material violation of any Healthcare Law. To the actual
      knowledge of the officers of the Company, none of the officers, directors
      and agents of any Managed Entity has been charged with, or has been or is
      being investigated with respect to, any activity during their employment
      or association with any Managed Entity that materially contravenes or
      could materially contravene or constitutes or could constitute a material
      violation of any Healthcare Law. To the actual knowledge of the officers
      of the Company, no person who has a direct or indirect ownership interest
      of 5% or more (as those terms are defined in 42 C.F.R. Part 420 Subpart C
      and 42 C.F.R. Section 1001.1001(a)(2)) in a Managed Entity has been
      charged with, or has been or is being investigated with respect to, any
      activity in connection with the Managed Entity that materially contravenes
      or could materially contravene or constitutes or could constitute a
      material violation of any Healthcare Law. To the knowledge of Holdings,
      the Company and each Subsidiary Guarantor, none of the Company, any of its
      Subsidiaries, any Managed Entity or any of the officers, directors,
      employees or agents (as described above) of the Company or any Subsidiary
      or any employee of any Managed Entity who is leased from the Company or
      any Subsidiary, has engaged in any activity (and with respect to the
      officers, directors, agents and employees of the Company or any Subsidiary
      or any employee of any Managed Entity as described above, only as to any
      activity during their employment or association with the Company, any
      Subsidiary or any Managed Entity) that materially contravenes or
      constitutes a material violation of any Healthcare Law during their
      employment or association with the Company, any Subsidiary, or any Managed
      Entity. To the actual knowledge of the officers of the Company, none of
      the officers, directors or agents of any Managed Entity has engaged in any
      activity during their employment or association with the Company, any
      Subsidiary or any Managed Entity that materially contravenes or
      constitutes a material violation of any Healthcare Law. "Healthcare Law"
      means the following laws or regulations relating to the regulation of the
      health care industry or to payment for services rendered by healthcare
      providers: (i) Sections 1877, 1128, 1128A or 1128B of the Social Security
      Act ("SSA"); (ii) any prohibition on the making of any false statement or
      misrepresentation of material facts to any governmental agency that
      administers a federal or state health care program (including, but not
      limited to, Medicare, Medicaid, and the federal Civilian Health and
      Medical Plan of the Uniformed Services); (iii) the

                                       11
<PAGE>
      licensure, certification or registration requirements of health care
      facilities, services or equipment, including, but not limited to, the
      Mammography Quality Standards Act; (iv) any state certificate of need or
      similar law governing the establishment of health care facilities or
      services or the making of health care capital expenditures; (v) any state
      law relating to fee-splitting or the corporate practice of medicine; (vi)
      any state physician self-referral prohibition or state anti-kickback law;
      (vii) any criminal offense relating to the delivery of, or claim for
      payment for, a healthcare item or service under any federal or state
      health care program; (viii) any federal or state law relating to the
      interference with or obstruction of any investigation into any criminal
      offense; and (ix) any criminal offense under federal or state law relating
      to the unlawful manufacture, distribution, prescription or dispensing of a
      controlled substance.

            (v) Medicare/Medicaid Participation. To the knowledge of Holdings,
      the Company and each Subsidiary, none of the Company, any of its
      Subsidiaries, or any existing officers or directors of the Company or the
      respective Subsidiary who is expected to be an officer, director, agent
      (as defined in 42 C.F.R. Section 1001.1001(a)(2)), or managing employee
      (as defined in SSA Section 1126(b) or any regulations promulgated
      thereunder) of the Company or the respective Subsidiary: (1) has had a
      material civil monetary penalty assessed against it under Section 1128A of
      the SSA or any regulations promulgated thereunder; (2) has been excluded
      from participation under the Medicare program or a federal or state health
      care program; or (3) has been convicted (as that term in defined in 42
      C.F.R. Section 1001.2) of any of the following categories of offenses as
      described in SSA Section 1128(a) and (b)(1), (2), (3) or any regulations
      promulgated thereunder: (i) criminal offenses relating to the delivery of
      an item or service under Medicare or any federal or state health care
      program; (ii) criminal offenses under federal or state law relating to
      patient neglect or abuse in connection with the delivery of a healthcare
      item or service; criminal offenses under federal or state law relating to
      fraud, theft, embezzlement, breach of fiduciary responsibility, or other
      financial misconduct in connection with the delivery of a healthcare item
      or service or with respect to any act or omission in a program operated by
      or financed in whole or in part by any federal, state or local
      governmental agency; (iii) federal or state laws relating to the
      interference with or obstruction of any investigation into any criminal
      offense described above in this paragraph; or (iv) criminal offenses under
      federal or state law relating to the unlawful manufacture, distribution,
      prescription or dispensing of a controlled substance. The Company, a
      Subsidiary, or an entity owned in whole or in part by the Company or a
      Subsidiary has a Medicare provider number, and a participating provider
      agreement in force with a Medicare Part B carrier, and materially meets
      all applicable Medicare conditions of coverage, in each locale, as
      applicable, in which the Company, such Subsidiary or such entity bills
      directly to Medicare for services furnished by the Company, such
      Subsidiary or such entity. The Company, a Subsidiary, or an entity owned
      in whole or in part by the Company or a Subsidiary has a Medicare provider
      number, and a participating provider agreement, and materially satisfies
      all applicable Medicaid conditions of coverage, in each state, as
      applicable, in which the Company, such Subsidiary, or such other entity
      bills directly to such state's Medicaid agency for services provided by
      the Company, such Subsidiary, or such other entity for Medicaid patients.

                                       12
<PAGE>
            (w) Title to Properties. Except as otherwise disclosed in the
      Offering Memorandum, the Company and each of its Subsidiaries has good and
      marketable title to all their properties and assets reflected as owned in
      the financial statements referred to in Section 1(n) above (or elsewhere
      in the Offering Memorandum), in each case free and clear of any security
      interests, mortgages, liens, encumbrances, equities, claims and other
      defects, except as would not reasonably be expected to result in a
      Material Adverse Change. Any real property, improvements, equipment and
      personal property held under lease by the Company or any of its
      Subsidiaries are held under valid and enforceable leases, except for such
      invalidations and unenforceabilities as would not reasonably be expected
      to result in a Material Adverse Change.

            (x) Material Agreements. The agreements, contracts or instruments
      listed as exhibits to the Annual Report and those listed in Schedule B
      attached hereto are the only material agreements, contracts or instruments
      binding upon Holdings and/or the Company and its Subsidiaries, or
      agreements, contracts or instruments that provide for the payments by
      Holdings, the Company or any of its Subsidiaries after the date hereof of
      $2 million or more.

            (y) Tax Law Compliance. The Company and its Subsidiaries have filed
      all material federal, state and foreign income and franchise tax returns
      required to be filed and have paid all taxes shown on such returns
      required to be paid by any of them which are due and payable and, if due
      and payable, any related or similar assessment, fine or penalty levied
      against any of them. The Company and each Subsidiary Guarantor has made
      adequate charges, accruals and reserves in the applicable financial
      statements referred to in Section 1(n) above in respect of all federal,
      state and foreign income and franchise taxes for all periods as to which
      the tax liability of the Company or any of its Subsidiaries has not been
      finally determined, except where such failure would not reasonably be
      expected to result in a Material Adverse Change.

            (z) Company Not an "Investment Company". Holdings and the Company
      have been advised of the rules and requirements under the Investment
      Company Act of 1940, as amended (the "Investment Company Act"). None of
      Holdings or the Company is an "investment company" within the meaning of
      Investment Company Act and each of Holdings and the Company will conduct
      its business in a manner so that it will not become subject to the
      Investment Company Act.

            (aa) Insurance. Each of the Company and its Subsidiaries are insured
      by recognized, financially sound institutions with policies in such
      amounts and with such deductibles and covering such risks as are generally
      deemed adequate and customary for their businesses including, but not
      limited to, policies covering real and personal property owned or leased
      by the Company and its Subsidiaries against theft, damage, destruction,
      acts of vandalism and earthquakes. The Company has no reason to believe
      that it or any Subsidiary will not be able (i) to renew its existing
      insurance coverage as and when such policies expire or (ii) to obtain
      comparable coverage from similar institutions as may be necessary or
      appropriate to conduct its business as now conducted and at a cost that
      would not result in a Material Adverse Change. To the best of the
      Company's knowledge, after due inquiry, neither the Company nor any
      Subsidiary has been denied

                                       13
<PAGE>
      any insurance coverage which it has sought or for which it has applied and
      there are no claims by the Company or any of its Subsidiaries under any
      current insurance policy as to which any insurance company or institution
      is denying, or will deny, liability or coverage or defending under a
      reservation of rights clause.

            (bb) No Price Stabilization or Manipulation. None of the Company,
      the Guarantors or any of their respective Affiliates has taken or will
      take, directly or indirectly, any action designed to or that might be
      reasonably expected to cause or result in stabilization or manipulation of
      the price of any security of the Company to facilitate the sale or resale
      of the Securities.

            (cc) Solvency. Holdings, the Company and each of the Company's
      Subsidiaries, taken as a whole, is Solvent. As used herein, the term
      "Solvent" means, with respect to Holdings, the Company and its
      Subsidiaries, taken as a whole, on a particular date, that on such date
      (i) such entity is able to pay its debts and other liabilities, contingent
      obligations and other commitments as they mature in the ordinary course of
      business, (ii) such entity does not intend to, and does not believe that
      it will, incur debts or liabilities beyond such entity's ability to pay as
      such debts and liabilities mature in their ordinary course, (iii) such
      entity is not engaged in a business or a transaction, and is not about to
      engage in a business or a transaction, for which such entity's assets
      would constitute unreasonably small capital after giving due consideration
      to the prevailing practice in the industry in which such entity is engaged
      or is to engage, (iv) the fair value of the assets of such entity is
      greater than the total amount of liabilities, including, without
      limitation, contingent liabilities, of such entity and (v) the present
      fair salable value of the assets of such entity is not less than the
      amount that will be required to pay the probable liability of such entity
      on its debts as they become absolute and matured. In computing the amount
      of contingent liabilities at any time, it is intended that such
      liabilities will be computed at the amount which, in light of all the
      facts and circumstances existing at such time, represents the amount that
      can reasonably be expected to become an actual or matured liability.

            (dd) No Unlawful Contributions or Other Payments. Neither the
      Company nor any of its Subsidiaries nor, to the best of the Company's or
      any Guarantor's knowledge, any employee or agent of the Company or any
      Subsidiary, has made any contribution or other payment to any official of,
      or candidate for, any federal, state or foreign office in violation of any
      law or of the character necessary to be disclosed in the Offering
      Memorandum in order to make the statements therein not misleading.

            (ee) Company's Accounting System. The Company and each of its
      Subsidiaries maintains a system of accounting controls sufficient to
      provide reasonable assurances that (i) transactions are executed in
      accordance with management's general or specific authorization; (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles as
      applied in the United States of America and to maintain accountability for
      assets; (iii) access to assets is permitted only in accordance with
      management's general or specific authorization; and (iv) the recorded
      accountability for assets is compared with

                                       14
<PAGE>
      existing assets at reasonable intervals and appropriate action is taken
      with respect to any differences.

            (ff) Compliance with Environmental Laws. Except as otherwise
      disclosed in the Offering Memorandum or as would not, individually or in
      the aggregate, result in a Material Adverse Change (i) the Company and
      each of its Subsidiaries have all permits, authorizations and approvals
      required under any Environmental Laws and are in compliance with their
      requirements, (ii) neither the Company nor any of its Subsidiaries, to the
      knowledge of the Company, after due inquiry, is in violation of any
      federal, state, local or foreign law or regulation relating to pollution
      or protection of human health or the environment (including, without
      limitation, ambient air, surface water, groundwater, land surface or
      subsurface strata) or wildlife, including without limitation, laws and
      regulations relating to emissions, discharges, releases or threatened
      releases of chemicals, pollutants, contaminants, wastes, toxic substances,
      hazardous substances, petroleum and petroleum products (collectively,
      "Materials of Environmental Concern"), or otherwise relating to the
      manufacture, processing, distribution, use, treatment, storage, disposal,
      transport or handling of Materials of Environmental Concern (collectively,
      "Environmental Laws"), which violation includes, but is not limited to,
      noncompliance with any permits or other governmental authorizations
      required for the operation of the business of the Company or its
      Subsidiaries under applicable Environmental Laws, or noncompliance with
      the terms and conditions thereof, nor has the Company or any of its
      Subsidiaries received any written communication, whether from a
      governmental authority, citizens group, employee or otherwise, that
      alleges that the Company or any of its Subsidiaries is in violation of any
      Environmental Law; (iii) there is, to the knowledge of the Company, after
      due inquiry, no claim, action or cause of action filed with a court or
      governmental authority, no investigation with respect to which the Company
      or any Subsidiary has received written notice, and no written notice by
      any person or entity alleging potential liability for investigatory costs,
      cleanup costs, governmental responses costs, natural resources damages,
      property damages, personal injuries, attorneys' fees or penalties arising
      out of, based on or resulting from the presence, or release into the
      environment, of any Material of Environmental Concern at any location
      owned, leased or operated by the Company or any of its Subsidiaries, now
      or in the past (collectively, "Environmental Claims"), pending or, to the
      best of the Company's or any Guarantor's knowledge, threatened against the
      Company or any of its Subsidiaries or any person or entity whose liability
      for any Environmental Claim the Company or any of its Subsidiaries has
      retained or assumed either contractually or by operation of law; and (iv)
      to the knowledge of the Company, there are no past or present actions,
      activities, circumstances, conditions, events or incidents, including,
      without limitation, the release, emission, discharge, presence or disposal
      of any Material of Environmental Concern, that reasonably could result in
      a violation of any Environmental Law or form the basis of a potential
      Environmental Claim against the Company or any of its Subsidiaries or
      against any person or entity whose liability for any Environmental Claim
      the Company or any of its Subsidiaries has retained or assumed either
      contractually or by operation of law.

            (gg) ERISA Compliance. The Company and its Subsidiaries and any
      "employee benefit plan" (as defined under the Employee Retirement Income
      Security Act of 1974, as amended, and the regulations and published
      interpretations thereunder

                                       15
<PAGE>
      (collectively, "ERISA")) established or maintained by the Company, its
      Subsidiaries or their "ERISA Affiliates" (as defined below) are in
      compliance in all respects with ERISA or, if not in compliance, would not
      reasonably be expected to result in a Material Adverse Change. "ERISA
      Affiliate" means, with respect to the Company or a Subsidiary, any member
      of any group of organizations described in Sections 414(b), (c), (m) or
      (o) of the Internal Revenue Code of 1986, as amended, and the regulations
      and published interpretations thereunder (the "Code") of which the Company
      or such Subsidiary is a member. No "reportable event" (as defined under
      ERISA) has occurred or is reasonably expected to occur with respect to any
      "employee benefit plan" established or maintained by the Company, its
      Subsidiaries or any of their ERISA Affiliates. No "employee benefit plan"
      established or maintained by the Company, its Subsidiaries or any of their
      ERISA Affiliates, if such "employee benefit plan" were terminated, would
      have any "amount of unfunded benefit liabilities" (as defined under
      ERISA). Neither the Company, its Subsidiaries nor any of their ERISA
      Affiliates has incurred or reasonably expects to incur any liability under
      (i) Title IV of ERISA with respect to termination of, or withdrawal from,
      any "employee benefit plan" or (ii) Sections 412, 4971, 4975 or 4980B of
      the Code. Each "employee benefit plan" established or maintained by the
      Company, its Subsidiaries or any of their ERISA Affiliates that is
      intended to be qualified under Section 401(a) of the Code is so qualified
      and nothing has occurred, whether by action or failure to act, which would
      cause the loss of such qualification.

            (hh) Regulation S Compliance. The Company, the Guarantors and their
      respective Affiliates and all authorized persons acting on their behalf
      (other than the Initial Purchasers, as to whom the Company and the
      Guarantors make no representation) have complied with and will comply with
      the offering restrictions requirements of Regulation S in connection with
      the offering of the Securities outside the United States and, in
      connection therewith, the Offering Memorandum will contain the disclosure
      required by Rule 902(h).

            (ii) Taxes; Fees. There are no stamp or other issuance or transfer
      taxes or duties or other similar fees or charges required to be paid in
      connection with the execution and delivery of this Agreement or the
      issuance or sale by the Company of the Securities.

            (jj) No Labor Disputes. As of the date hereof, (i) there is no
      unfair labor practice complaint pending against the Company or any of its
      Subsidiaries or, to the best knowledge of the Company, threatened against
      any of them, before the National Labor Relations Board or any state or
      local labor relations board, and no significant grievance or significant
      arbitration proceeding arising out of or under any collective bargaining
      agreement is so pending against the Company or any of its Subsidiaries or,
      to the best knowledge of the Company, threatened against any of them, (ii)
      there is no material strike, labor dispute, slowdown or stoppage pending
      against the Company or any of its Subsidiaries or, to the knowledge of the
      Company, threatened against the Company and (iii) the Company is not aware
      of any existing, threatened or imminent labor disturbance by the employees
      of any of its principal customers, suppliers, manufacturers or
      contractors, in each case which is likely to result in a Material Adverse
      Change.

                                       16
<PAGE>
            Any certificate signed by an officer of the Company or any Guarantor
and delivered to the Initial Purchasers pursuant to this Agreement or to counsel
for the Initial Purchasers shall be deemed to be a representation and warranty
by the Company or such Guarantor to the Initial Purchasers as to the matters set
forth therein.

            Section 2. Purchase, Sale and Delivery of the Securities.

            (a) The Securities. The Company agrees to (x) issue to the Initial
      Purchasers, in exchange for all of the Existing Notes held by the Initial
      Purchasers, the aggregate principal amount of Notes set forth on Schedule
      D hereto and (y) issue and sell to the Initial Purchasers, acting
      severally and not jointly, the aggregate principal amount of Additional
      Notes set forth on Schedule D hereto at a purchase price equal to 97% of
      the principal amount thereof, payable on the Closing Date (it being
      acknowledged that the discount of 3% shall be in satisfaction of the fees
      payable with respect to the Additional Notes by the Company pursuant to
      the second sentence of Section 2 of the Fee Letter). The Notes shall be
      resold by the Initial Purchasers at par; provided that, with the consent
      of J.W. Childs Associates, L.P. and The Halifax Group, L.L.C., the Initial
      Purchasers may resell the Notes at a price below par.

            (b) The Closing Date. Delivery of certificates for the Securities in
      definitive form to be issued and sold to the Initial Purchasers (and
      payment of the purchase price for the Additional Notes) shall be made at
      the offices of Shearman & Sterling, 599 Lexington Avenue, New York, New
      York 10022-6069 (or such other place as may be agreed to by the Company
      and Banc of America Securities LLC) at 9:00 a.m. New York City time, on
      the Exchange Date (as defined in the Note Purchase Agreement), or such
      other time and date as Banc of America Securities LLC shall designate by
      notice to the Company (the time and date of such closing are called the
      "Closing Date"). The Company hereby acknowledges that circumstances under
      which the Initial Purchasers may provide notice to postpone the Closing
      Date as originally scheduled include, but are in no way limited to, any
      determination by the Company or the Initial Purchasers to recirculate to
      investors copies of an amended or supplemented Offering Memorandum.

            (c) Delivery of the Notes. The Notes shall be delivered as provided
      in Section 10(a) of the Note Purchase Agreement. The certificates for the
      Notes shall be in such denominations and registered in the name of the
      Depositary or its nominee, pursuant to the DTC Letter of Representations,
      and shall be made available for inspection on the business day preceding
      the Closing Date at a location in New York City, as the Initial Purchasers
      may designate. Time shall be of the essence.

            (d) Delivery of Offering Memorandum to the Initial Purchasers. Not
      later than 12:00 p.m. on the second business day following the date of
      this Agreement, the Company shall deliver or cause to be delivered copies
      of the Offering Memorandum in such quantities and at such places as the
      Initial Purchasers shall reasonably request.

            (e) Initial Purchasers as Qualified Institutional Buyers. Each
      Initial Purchaser represents and warrants to, and agrees with, the Company
      that (i) it is a "qualified institutional buyer" within the meaning of
      Rule 144A (a "Qualified

                                       17
<PAGE>
      Institutional Buyer"), and (ii) with respect to those Securities sold in
      reliance on Regulation S, (A) has not engaged and will not engage in any
      direct selling efforts within the meaning of Regulation S and (B) has
      complied and will comply with the offering restrictions requirements of
      Regulations S.

            Section 3. Covenants. The Company and each Guarantor further jointly
and severally covenant and agree with each Initial Purchaser as follows:

            (a) The Initial Purchasers' Review of Proposed Amendments and
      Supplements. Prior to amending or supplementing the Offering Memorandum
      (including any amendment or supplement through incorporation by reference
      of any report filed under the Exchange Act), the Company shall furnish to
      the Initial Purchasers for review a copy of each such proposed amendment
      or supplement, and the Company shall not use any such proposed amendment
      or supplement to which any Initial Purchaser reasonably objects in writing
      within 3 business days (with advice from its independent counsel).

            (b) Amendments and Supplements to the Offering Memorandum and Other
      Securities Act Matters. If, prior to the completion of the placement of
      the Securities by the Initial Purchasers with the Subsequent Purchasers,
      any event shall occur or condition exist as a result of which it is
      necessary to amend or supplement the Offering Memorandum in order to make
      the statements therein, in the light of the circumstances when the
      Offering Memorandum is delivered to a Subsequent Purchaser, not
      misleading, or if in the opinion of the Initial Purchasers or counsel for
      the Initial Purchasers it is otherwise necessary to amend or supplement
      the Offering Memorandum to comply with law, the Company agrees to promptly
      prepare (subject to Section 3(a) hereof), and furnish at its own expense
      to the Initial Purchasers, amendments or supplements to the Offering
      Memorandum so that the statements in the Offering Memorandum as so amended
      or supplemented will not, in the light of the circumstances when the
      Offering Memorandum is delivered to a Subsequent Purchaser, be misleading
      or so that the Offering Memorandum, as amended or supplemented, will
      comply with law.

            The Company and the Guarantors hereby expressly acknowledge that the
      indemnification and contribution provisions of Sections 8 and 9 hereof are
      specifically applicable and relate to each offering memorandum,
      registration statement, prospectus, amendment or supplement referred to in
      this Section 3(b).

            (c) Copies of the Offering Memorandum. The Company agrees to furnish
      the Initial Purchasers, without charge, as many copies of the Offering
      Memorandum and any amendments and supplements thereto as they shall have
      reasonably requested prior to or at the time of the original printing of
      the Offering Memorandum or any amendment or supplement thereto.

            (d) Blue Sky Compliance. Holdings, the Company and the Subsidiary
      Guarantors shall cooperate with the Initial Purchasers and counsel for the
      Initial Purchasers to qualify or register the Securities for sale under
      (or obtain exemptions from the application of) the Blue Sky or state
      securities laws of those jurisdictions designated by the Initial
      Purchasers, shall comply with such laws and shall continue such

                                       18
<PAGE>
      qualifications, registrations and exemptions in effect so long as required
      for the distribution of the Securities. Holdings, the Company and the
      Subsidiary Guarantors shall not be required to qualify as a foreign
      corporation or to take any action that would subject it to general service
      of process in any such jurisdiction where it is not presently qualified or
      where it would be subject to taxation as a foreign corporation. Holdings
      and the Company will advise the Initial Purchasers promptly of the
      suspension of the qualification or registration of (or any such exemption
      relating to) the Securities for offering, sale or trading in any
      jurisdiction or any initiation or threat of any proceeding for any such
      purpose, and in the event of the issuance of any order suspending such
      qualification, registration or exemption, Holdings, the Company and the
      Subsidiary Guarantors shall use their reasonable best efforts to obtain
      the withdrawal thereof at the earliest possible moment.

            (e) Depositary. The Company will cooperate with the Initial
      Purchasers and use its reasonable best efforts to permit the Securities to
      be eligible for clearance and settlement through the facilities of the
      Depositary.

            (f) Additional Issuer Information. Prior to the completion of the
      placement of the Securities by the Initial Purchasers with the Subsequent
      Purchasers, the Company, or, if permitted by the Exchange Act, Holdings,
      shall file, on a timely basis, with the Commission all reports and
      documents required to be filed under Section 13 or 15 of the Exchange Act;
      provided that if such filings are being made by Holdings, rather than by
      the Company, such filings shall adequately disclose the Company's results
      of operations and financial condition in the "Management's Discussion and
      Analysis of Financial Condition and Results of Operations" section in at
      least such detail as would be required if the Company were filing such
      report. In addition, at any time Holdings or the Company is not subject to
      Section 13 or 15 of the Exchange Act, Holdings and the Company covenant
      that they will furnish, at their expense, upon request, to registered
      holders of Securities within the time periods specified in the Exchange
      Act (i) all quarterly and annual reports that would be required to be
      filed with the Commission on Forms 10-Q and 10-K if Holdings or the
      Company were required to file such Forms, (including, in each case,
      financial information and a "Management's Discussion and Analysis of
      Financial Condition and Results of Operations" and, with respect to the
      annual information only, a report on the annual financial statements by
      Holdings' and the Company's certified independent accountants); and (ii)
      all current reports that would be required to be filed with the Commission
      on Form 8-K if Holdings or the Company were required to file such reports.
      In addition, following the date the Company is required to consummate the
      exchange offer contemplated by the Registration Rights Agreement, whether
      or not required by the Commission, Holdings and the Company will file a
      copy of all of the information and reports referred to in clauses (i) and
      (ii) above with the Commission for public availability within the time
      periods specified in the Commission's rules and regulations (unless the
      Commission will not accept such a filing) and make such information
      available to securities analysts and prospective purchasers of Securities
      upon request. In addition, the Company and the Guarantors agree that, for
      so long as Securities (but not the Exchange Securities) remain
      outstanding, they will furnish to holders and beneficial owners of
      Securities and to securities analysts and prospective purchasers of
      Securities, upon their request, the information (together with the
      documents

                                       19
<PAGE>
      referred to in the second sentence of this paragraph, the "Additional
      Issuer Information") required to be delivered pursuant to Rule 144A(d)(4)
      under the Securities Act.

            (g) Future Agreement Not to Offer or Sell Additional Securities.
      Holdings and the Company, during the period of 180 days following the date
      of the Offering Memorandum, will not, without the prior written consent of
      Banc of America Securities LLC (which consent may be withheld at the sole
      discretion of such Initial Purchaser), directly or indirectly, sell,
      offer, contract or grant any option to sell, pledge, transfer or establish
      an open "put equivalent position" within the meaning of Rule 16a-1(h)
      under the Exchange Act, or otherwise dispose of or transfer, or announce
      the offering of, or file any registration statement under the Securities
      Act in respect of, any debt securities of the Company or securities
      exchangeable for or convertible into debt securities of the Company (other
      than to register the Exchange Securities).

            (h) Future Reports to the Initial Purchasers. For so long as any
      Securities or Exchange Securities remain outstanding, Holdings and the
      Company will furnish to the Initial Purchasers (i) as soon as reasonably
      practicable after the end of each fiscal year, copies of the Annual Report
      of Holdings and the Company containing the balance sheet of Holdings and
      the Company as of the close of such fiscal year and statements of income,
      stockholders' equity and cash flows for the year then ended and the
      opinion thereon of Holdings' and the Company's independent public or
      certified public accountants; (ii) as soon as reasonably practicable after
      the filing thereof, copies of each proxy statement, Annual Report on Form
      10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
      report filed by Holdings and the Company with the Commission; and (iii) as
      soon as available, copies of any report or communication of Holdings and
      the Company mailed generally to holders of its capital stock or debt
      securities (including the holders of the Securities).

            (i) No Integration. Each of Holdings and the Company agrees that it
      will not and will cause its affiliates not to, make any offer or sale of
      securities of any class if, as a result of the doctrine of "integration"
      referred to in Rule 502 under the Securities Act, such offer or sale would
      render invalid (for the purpose of (i) the issuance and sale of the
      Securities by the Company to the Initial Purchaser, (ii) the resale of the
      Securities by the Initial Purchasers to Subsequent Purchasers or (iii) the
      resale of the Securities by such Subsequent Purchasers to others) the
      exemption from the registration requirements of the Securities Act
      provided by Section 4(2) thereof or by Rule 144A or by Regulation S
      thereunder or otherwise.

            (j) Legended Securities. Each certificate for a Note will bear the
      legend substantially in the form set forth in Section 10(d) of the Note
      Purchase Agreement for the time period and upon the other terms stated in
      the Offering Memorandum.

            (k) PORTAL. The Company will use its reasonable best efforts to
      cause such Notes when issued to be eligible for the National Association
      of Securities Dealers, Inc. PORTAL market (the "PORTAL market").

                                       20
<PAGE>
            (l) Rating of Securities. The Company shall take all reasonable
      action necessary to enable Standard & Poor's Ratings Services, a division
      of McGraw Hill, Inc. ("S&P"), and Moody's Investor Services, Inc.
      ("Moody's") to provide their respective credit ratings to the Securities.

            Banc of America Securities LLC, on behalf of the Initial Purchasers,
may, in its sole discretion, waive in writing the performance by Holdings or the
Company of any one or more of the foregoing covenants or extend the time for
their performance.

            Section 4. Payment of Expenses. The Company agrees, and Holdings
shall cause the Company, to pay all costs, fees and expenses incurred in
connection with the performance of its obligations hereunder and in connection
with the transactions contemplated hereby, including without limitation (i) all
necessary issue, transfer and other stamp taxes in connection with the issuance
and sale of the Securities to the Initial Purchasers, (ii) all fees and expenses
of the Company's and the Guarantors' counsel, independent public or certified
public accountants and other advisors, (iii) all costs and expenses incurred in
connection with the preparation, printing, filing, shipping and distribution of
each Preliminary Offering Memorandum and the Offering Memorandum (including
financial statements), and all amendments and supplements thereto, (iv) all
filing fees, reasonable attorneys' fees and expenses incurred by the Company,
the Guarantors or the Initial Purchasers in connection with qualifying or
registering (or obtaining exemptions from the qualification or registration of)
all or any part of the Securities for offer and sale under the Blue Sky laws
and, if requested by an Initial Purchaser, preparing and printing a "Blue Sky
Survey" or memorandum, and any supplements thereto, advising such Initial
Purchaser of such qualifications, registrations and exemptions, such fees and
expenses under this clause (iv) not to exceed $20,000 in the aggregate, (v) the
fees and expenses of the Trustee, including the fees and disbursements of
counsel for the Trustee in connection with the Indenture, the Securities and the
Exchange Securities, (vi) all fees and expenses (including reasonable fees and
expenses of counsel) of the Company in connection with approval of the
Securities by the Depositary for "book-entry" transfer, and (vii) the
performance by Company of its other obligations under this Agreement. Except as
provided in this Section 4, Section 6, Section 8 and Section 9 hereof, the
Initial Purchasers shall pay their own expenses, including the fees and
disbursements of its counsel, and shall be responsible for all roadshow related
costs.

            Section 5. Additional Covenants. The Company and each Guarantor
further jointly and severally covenant and agree with each Initial Purchaser as
follows:

            (a) Accountants' Comfort Letter. The Company shall use its best
      efforts to cause the Independent Accountants to deliver to the Initial
      Purchasers, on the Closing Date, a letter dated the date hereof addressed
      to the Initial Purchasers, in form and substance satisfactory to the
      Initial Purchasers, containing statements and information of the type
      ordinarily included in accountant's "comfort letters" to the Initial
      Purchasers, delivered according to Statement of Auditing Standards Nos.
      71, 72 and 76 (or any successor bulletins), with respect to the audited
      and unaudited financial statements, pro forma, and other financial
      information contained in the Offering Memorandum.

                                       21
<PAGE>
            (b) Opinion of Counsel for the Company. The Company shall use its
      best efforts to cause Kaye Scholer LLP and Hunton & Williams, counsel for
      the Company, to deliver to the Initial Purchasers, on the Closing Date,
      opinions of such counsels, dated as of such Closing Date, the forms of
      which are attached as Exhibit A-1 and Exhibit A-2, respectively.

            (c) Opinion of General Counsel for the Company. The Company shall
      use its best efforts to cause Marilyn U. MacNiven-Young, its General
      Counsel to deliver to the Initial Purchasers, on the Closing Date, an
      opinion of such counsel, dated as of such Closing Date, the form of which
      is attached as Exhibit B.

            (d) Opinion of Regulatory Counsel for the Company. The Company shall
      use its best efforts to cause Davis Wright Tremaine LLP, regulatory
      counsel for the Company, to deliver to the Initial Purchasers, on the
      Closing Date, an opinion of such counsel, dated as of such Closing Date,
      the form of which is attached as Exhibit C.

            (e) Officers' Certificate. On the Closing Date, each of Holdings and
      the Company shall deliver to the Initial Purchasers written certificates,
      executed by the Chief Executive Officer, President, Executive Vice
      President or Senior Vice President of each of Holdings and the Company, as
      the case may be, and the Chief Financial Officer or Chief Accounting
      Officer of each of Holdings and the Company, as the case may be, dated as
      of the Closing Date, to the effect that:

                  (i) for the period from and after the date of this Agreement
            and prior to the Closing Date, to their knowledge, after due
            inquiry, there has not occurred any Material Adverse Change;

                  (ii) for the period from the date of this Agreement and prior
            to the Closing Date, there has not occurred any downgrading, nor has
            any notice been given of any intended or potential downgrading or of
            any review for a possible change that does not indicate the
            direction of the possible change, in the rating accorded any
            securities of the Company or any of its Subsidiaries by any
            "nationally recognized statistical rating organization", as such
            term is defined for purposes of Rule 436(g)(2) under the Securities
            Act;

                  (iii) the representations, warranties and covenants of the
            Company and each Guarantor, as the case may be, and set forth in
            Section 1 of this Agreement are true and correct in all material
            respects (without giving effect to any limitation as to
            "materiality" or "Material Adverse Change" set forth therein) with
            the same force and effect as though expressly made on and as of the
            Closing Date; and

                  (iv) the Company and the Guarantors have complied in all
            material respects with all the agreements and satisfied all the
            conditions on its part to be performed or satisfied at or prior to
            the Closing Date.

            (f) Bring-down Comfort Letters. The Company shall use its best
      efforts to cause the Independent Accountants to deliver to the Initial
      Purchasers,

                                       22
<PAGE>
      on the Closing Date, a letter dated such date, in form and substance
      satisfactory to the Initial Purchasers, to the effect that such
      Independent Accountants reaffirm the statements made in the letter
      furnished by them pursuant to subsection (a) of this Section 5, except
      that the specified date referred to therein for the carrying out of
      procedures shall be no more than three business days prior to the Closing
      Date.

            (g) Registration Rights Agreement. The Company and the Guarantors
      shall enter into the Registration Rights Agreement and deliver to the
      Initial Purchasers executed counterparts thereof.

            (h) Additional Documents. On or before the Closing Date, the Company
      shall deliver to the Initial Purchasers and counsel for the Initial
      Purchasers such information and documents as the Initial Purchasers and
      such counsel may reasonably require for the purposes of enabling them to
      pass upon the issuance and sale of the Securities as contemplated herein,
      or in order to evidence the accuracy of any of the representations and
      warranties, or the satisfaction of any of the conditions or agreements,
      herein contained.

            Section 6. Reimbursement of Initial Purchasers' Expenses. If the
issuance and sale to the Initial Purchasers of the Securities on the Closing
Date is not consummated because of any refusal, inability or failure on the part
of the Company to perform any agreement herein or to comply with any provision
hereof, the Company agrees to, and Holdings agrees to cause the Company to,
reimburse the Initial Purchasers upon demand for all reasonable out-of-pocket
expenses that shall have been incurred by the Initial Purchasers in connection
with the proposed offering and sale of the Securities.

            Section 7. Offer, Sale and Resale Procedures. The Initial
Purchasers, on the one hand, and Holdings and the Company, on the other hand,
hereby establish and agree to observe the following procedures in connection
with the offer and sale of the Securities:

            (a) Offers and Sales Only to Qualified Institutional Buyers and
      Non-U.S. Persons. Offers and sales of the Securities will be made only by
      the Initial Purchasers or Affiliates thereof qualified to do so in the
      jurisdictions in which such offers or sales are made. Each such offer or
      sale shall only be made (A) to persons whom the offeror or seller
      reasonably believes to be qualified institutional buyers (as defined in
      Rule 144A under the Securities Act) or (B) non-U.S. persons outside the
      United States to whom the offeror or seller reasonably believes offers and
      sales of the Securities may be made in reliance upon Regulation S under
      the Securities Act, upon the terms and conditions set forth in Annex I
      hereto, which Annex I is hereby expressly made a part hereof.

            (b) No General Solicitation. The Securities will be offered by
      approaching prospective Subsequent Purchasers on an individual basis. No
      general solicitation or general advertising (within the meaning of Rule
      502(c) under the Securities Act) will be used in the United States in
      connection with the offering of the Securities.

            (c) Restrictions on Transfer. Upon original issuance by the Company,
      and until such time as the same is no longer required under the applicable
      requirements of the Securities Act, the Notes (and all securities issued
      in exchange therefor or in substitution

                                       23
<PAGE>
      thereof, other than the Exchange Securities) shall bear a legend
      substantially in the form set forth in Section 10(d) of the Note Purchase
      Agreement.

Following the sale of the Securities by the Initial Purchasers to Subsequent
Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be
liable or responsible to the Company for any losses, damages or liabilities
suffered or incurred by the Company, including any losses, damages or
liabilities under the Securities Act, arising from or relating to any resale or
transfer of any Security.

            Section 8. Indemnification.

            (a) Indemnification of the Initial Purchasers. Each of Holdings, the
      Company and each of the Subsidiary Guarantors jointly and severally agrees
      to indemnify and hold harmless each Initial Purchaser, its directors,
      officers and employees, and each person, if any, who controls any Initial
      Purchaser within the meaning of Section 15 of the Securities Act and
      Section 20 of the Exchange Act against any loss, claim, damage, liability
      or expense, as incurred, to which such Initial Purchaser or such
      controlling person may become subject, under the Securities Act, the
      Exchange Act or other federal or state statutory law or regulation, or at
      common law or otherwise (including in settlement of any litigation, if
      such settlement is effected with the written consent of Holdings and the
      Company), insofar as such loss, claim, damage, liability or expense (or
      actions in respect thereof as contemplated below) arises out of or is
      based (i) upon any untrue statement or alleged untrue statement of a
      material fact contained in the Preliminary Offering Memorandum or the
      Offering Memorandum (or any amendment or supplement thereto), or the
      omission or alleged omission therefrom of a material fact necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading; or (ii) in whole or in part
      upon any inaccuracy in the representations and warranties of the Company
      or any Guarantor contained herein; or (iii) in whole or in part upon any
      failure of the Company or any Guarantor to perform its obligations
      hereunder or under law; or (iv) any act or failure to act or any alleged
      act or failure to act by any Initial Purchaser in connection with, or
      relating in any manner to, the offering contemplated hereby, and which is
      included as part of or referred to in any loss, claim, damage, liability
      or action arising out of or based upon any matter covered by clause (i)
      above to the extent such loss, claim, damage, liability or expense is not
      covered in items (i) through (iii) (subject to the limitations set forth
      below), provided that none of the Company or any Guarantor shall be liable
      under this clause (iv) to the extent that a court of competent
      jurisdiction shall have determined by a final judgment that such loss,
      claim, damage, liability or action resulted directly from any such acts or
      failures to act undertaken or omitted to be taken by such Initial
      Purchaser through its gross negligence or willful misconduct; and to
      reimburse such Initial Purchaser and each such controlling person for any
      and all expenses (including the fees and disbursements of counsel chosen
      by Banc of America Securities LLC) as such expenses are reasonably
      incurred by such Initial Purchaser or such controlling person in
      connection with investigating, defending, settling, compromising or paying
      any such loss, claim, damage, liability, expense or action; provided,
      however, that the foregoing indemnity agreement shall not apply to any
      loss, claim, damage, liability or expense to the extent, but only to the
      extent, arising out of or based upon any untrue statement or alleged
      untrue statement or omission or alleged

                                       24
<PAGE>
      omission made in reliance upon and in conformity with written information
      furnished to the Company by the Initial Purchasers expressly for use in
      any Preliminary Offering Memorandum or the Offering Memorandum (or any
      amendment or supplement thereto). The indemnity agreement set forth in
      this Section 8(a) shall be in addition to any liabilities that Holdings or
      the Company and the Subsidiary Guarantors may otherwise have.

            (b) Indemnification of the Company and the Guarantors and their
      Directors and Officers. Each Initial Purchaser agrees to indemnify and
      hold harmless Holdings and the Company and each of their respective
      directors and each person, if any, who controls the Company or Holdings
      within the meaning of the Securities Act or the Exchange Act against any
      loss, claim, damage, liability or expense, as incurred, to which Holdings
      or the Company or any such director, or controlling person may become
      subject, under the Securities Act, the Exchange Act, or other federal or
      state statutory law or regulation, or at common law or otherwise
      (including in settlement of any litigation, if such settlement is effected
      with the written consent of the Initial Purchasers), insofar as such loss,
      claim, damage, liability or expense (or actions in respect thereof as
      contemplated below) arises out of or is based upon any untrue or alleged
      untrue statement of a material fact contained in any Preliminary Offering
      Memorandum or the Offering Memorandum (or any amendment or supplement
      thereto), or arises out of or is based upon the omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary in order to make the statements therein in the light of the
      circumstances under which they were made not misleading, in each case to
      the extent, but only to the extent, that such untrue statement or alleged
      untrue statement or omission or alleged omission was made in any
      Preliminary Offering Memorandum or the Offering Memorandum (or any
      amendment or supplement thereto), in reliance upon and in conformity with
      written information furnished to the Company by the Initial Purchasers
      expressly for use therein; and to reimburse Holdings and the Company or
      any such director or controlling person for any legal and other expenses
      reasonably incurred by Holdings or the Company or any such director or
      controlling person in connection with investigating, defending, settling,
      compromising or paying any such loss, claim, damage, liability, expense or
      action. Holdings and the Company hereby acknowledge that the only
      information that the Initial Purchasers have furnished to the Company
      expressly for use in any Preliminary Offering Memorandum or the Offering
      Memorandum (or any amendment or supplement thereto) are the statements set
      forth in (A) the seventh full paragraph on introductory page ii of the
      Offering Memorandum, (B) the second sentence under the caption "Risk
      Factors -- You cannot be sure that an active trading market will develop
      for these notes," and (C) the first sentence of the third paragraph, the
      first three sentences of the fourth paragraph, the third sentence of the
      sixth paragraph and the eighth paragraph under the caption "Plan of
      Distribution" in the Offering Memorandum; and the Initial Purchasers
      confirm that such statements are correct. The indemnity agreement set
      forth in this Section 8(b) shall be in addition to any liabilities that
      each Initial Purchaser may otherwise have.

            (c) Notifications and Other Indemnification Procedures. Promptly
      after receipt by an indemnified party under this Section 8 of notice of
      the commencement of any action, such indemnified party will, if a claim in
      respect thereof is to be made against an indemnifying party under this
      Section 8, notify the indemnifying party in writing of

                                       25
<PAGE>
      the commencement thereof, but the omission so to notify the indemnifying
      party will not relieve it from any liability which it may have to any
      indemnified party for contribution or otherwise than under the indemnity
      agreement contained in this Section 8 or to the extent it is not
      prejudiced as a proximate result of such failure. In case any such action
      is brought against any indemnified party and such indemnified party seeks
      or intends to seek indemnity from an indemnifying party, the indemnifying
      party will be entitled to participate in and, to the extent that it shall
      elect, jointly with all other indemnifying parties similarly notified, by
      written notice delivered to the indemnified party promptly after receiving
      the aforesaid notice from such indemnified party, to assume the defense
      thereof with counsel reasonably satisfactory to such indemnified party;
      provided, however, if the defendants in any such action include both the
      indemnified party and the indemnifying party and the indemnified party
      shall have reasonably concluded that a conflict may arise between the
      positions of the indemnifying party and the indemnified party in
      conducting the defense of any such action or that there may be legal
      defenses available to it and/or other indemnified parties which are
      different from or additional to those available to the indemnifying party,
      the indemnified party or parties shall have the right to select separate
      counsel to assume such legal defenses and to otherwise participate in the
      defense of such action on behalf of such indemnified party or parties.
      Upon receipt of notice from the indemnifying party to such indemnified
      party of such indemnifying party's election so to assume the defense of
      such action and approval by the indemnified party of counsel, the
      indemnifying party will not be liable to such indemnified party under this
      Section 8 for any legal or other expenses subsequently incurred by such
      indemnified party in connection with the defense thereof unless (i) the
      indemnified party shall have employed separate counsel in accordance with
      the proviso to the next preceding sentence (it being understood, however,
      that the indemnifying party shall not be liable for the expenses of more
      than one separate counsel (together with local counsel), approved by the
      indemnifying party (Banc of America Securities LLC in the case of Section
      8 and Section 9), representing the indemnified parties who are parties to
      such action) or (ii) the indemnifying party shall not have employed
      counsel satisfactory to the indemnified party to represent the indemnified
      party within a reasonable time after notice of commencement of the action,
      in each of which cases the fees and expenses of counsel shall be at the
      expense of the indemnifying party.

            (d) Settlements. The indemnifying party under this Section 8 shall
      not be liable for any settlement of any proceeding effected without its
      written consent, but if settled with such consent or if there be a final
      non-appealable judgment for the plaintiff, the indemnifying party agrees
      to indemnify the indemnified party against any loss, claim, damage,
      liability or expense by reason of such settlement or judgment.
      Notwithstanding the foregoing sentence, if at any time an indemnified
      party shall have requested an indemnifying party to reimburse the
      indemnified party for fees and expenses of counsel as contemplated by
      Section 8(c) hereof, the indemnifying party agrees that it shall be liable
      for any settlement of any proceeding effected without its written consent
      if (i) such settlement is entered into more than 45 days after receipt by
      such indemnifying party of the aforesaid request, (ii) such indemnifying
      party shall have received notice of the final terms of such proposed
      settlement as soon as practicable prior to such settlement being entered
      into and (iii) such indemnifying party shall not have reimbursed the
      indemnified party in accordance with such request prior to the date of
      such settlement. No

                                       26
<PAGE>
      indemnifying party shall, without the prior written consent of the
      indemnified party, effect any settlement, compromise or consent to the
      entry of judgment in any pending or threatened action, suit or proceeding
      in respect of which any indemnified party is or could have been a party
      and indemnity was or could have been sought hereunder by such indemnified
      party, unless such settlement, compromise or consent includes an
      unconditional release of such indemnified party from all liability on
      claims that are the subject matter of such action, suit or proceeding.

            Section 9. Contribution. If the indemnification provided for in
Section 8 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each indemnifying party shall
contribute to the aggregate amount paid or payable by such indemnified party, as
incurred, as a result of any losses, claims, damages, liabilities or expenses
referred to therein (i) in such proportion as is appropriate to reflect the
relative benefits received by Holdings, the Company and the Subsidiary
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from
the offering of the Securities pursuant to this Agreement or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of Holdings and the
Company and the Subsidiary Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, in connection with the statements or omissions or
inaccuracies in the representations and warranties herein which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative benefits received by Holdings and the
Company and the Subsidiary Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, in connection with the offering of the Securities
pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds, if any, from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Company and the total discount, if any, received by the Initial Purchasers
bear to the aggregate initial offering price of the Securities. The relative
fault of Holdings, the Company and the Subsidiary Guarantors, on the one hand,
and the Initial Purchasers, on the other hand, shall be determined by reference
to, among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact or any
such inaccurate or alleged inaccurate representation or warranty relates to
information supplied by Holdings, the Company or the Subsidiary Guarantors, on
the one hand, or the Initial Purchasers, on the other hand, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

            The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and expenses referred to above shall be deemed to
include, subject to the limitations set forth in Section 8(c), any legal or
other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim. The provisions set forth in
Section 8(c) with respect to notice of commencement of any action shall apply if
a claim for contribution is to be made under this Section 9; provided that no
additional notice shall be required with respect to any action for which notice
has been given under Section 8(c) for purposes of indemnification.

                                       27
<PAGE>
            The Company, the Guarantors and the Initial Purchasers agree that it
would not be just and equitable if contribution pursuant to this Section 9 were
determined by pro rata allocation (even if the Initial Purchasers were treated
as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to in this Section 9.

            Notwithstanding the provisions of this Section 9, the Initial
Purchasers shall not be required to contribute any amount in excess of the
discount received by the Initial Purchasers in connection with the Securities
distributed by them. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, each director, officer and
employee of any Initial Purchaser and each person, if any, who controls any
Initial Purchaser within the meaning of the Securities Act and the Exchange Act
shall have the same rights to contribution as the Initial Purchasers, and each
director of Holdings and the Company and each person, if any, who controls
Holdings and the Company within the meaning of the Securities Act and the
Exchange Act shall have the same rights to contribution as Holdings and the
Company.

            Section 10. [Intentionally Omitted.]

            Section 11. Representations and Indemnities to Survive Delivery. The
respective indemnities, agreements, representations, warranties and other
statements of Holdings and the Company of their officers and of the Initial
Purchasers set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation made by or on behalf of the
Initial Purchasers, Holdings or the Company or any of its or their partners,
officers or directors or any controlling person, as the case may be, and will
survive delivery of and payment for the Securities sold hereunder and any
termination of this Agreement.

            Section 12. Notices. All communications hereunder shall be in
writing and shall be mailed, hand delivered or by facsimile and confirmed to the
parties hereto as follows:

If to the Initial Purchasers:

            Banc of America Securities LLC
            9 West 57th Street New York, NY 10019
            Facsimile: 212-847-8324
            Attention:  Raymond A. Cubero, Managing Director

with a copy to:

            Shearman & Sterling
            599 Lexington Avenue
            New York, NY  10022
            Facsimile:  212-848-7179
            Attention:  Christopher C. Paci, Esq.

                                       28
<PAGE>
If to the Company or Holdings:

            InSight Health Services Corp.
            4400 MacArthur Blvd.
            Suite 800
            Newport Beach, CA  92660
            Facsimile:  949-476-8006
            Attention:  Chief Financial Officer

with copies to:

            J.W. Childs Associates, L.P.
            One Federal Street
            21st Floor
            Boston, MA  02110
            Facsimile:  617-753-1101
            Attention:  Edward D. Yun

and to:

            The Halifax Group, L.L.C.
            1133 Connecticut Avenue N.W.
            Suite 700
            Washington, D.C.  20036
            Facsimile:   202-296-7133
            Attention:   David W. Dupree

and to:

            Kaye Scholer LLP
            245 Park Avenue
            New York, NY 10022
            Facsimile:  212-836-8689
            Attention:  Stephen C. Koval, Esq.

and to:

            InSight Health Services Corp.
            4400 MacArthur Blvd.
            Suite 800
            Newport Beach, CA  92660
            Facsimile:  949-476-0137
            Attention:  General Counsel

            Any party hereto may change the address for receipt of
communications by giving written notice to the others.

                                       29

<PAGE>

            Section 13. Successors. This Agreement will inure to the benefit of
and be binding upon the parties hereto and to the benefit of the employees,
officers and directors and controlling persons referred to in Section 8 and
Section 9, and in each case their respective successors, and no other person
will have any right or obligation hereunder. The term "successors" shall not
include any purchaser of the Securities as such from the Initial Purchasers by
reason of such purchase.

            Section 14. Partial Unenforceability. The invalidity or
unenforceability of any Section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other Section, paragraph or
provision hereof. If any Section, paragraph or provision of this Agreement is
for any reason determined to be invalid or unenforceable, there shall be deemed
to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.

            Section 15. Governing Law; Consent to Jurisdiction.

            (a) Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY
      AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE.

            (b) Consent to Jurisdiction. Any legal suit, action or proceeding
      arising out of or based upon this Agreement or the transactions
      contemplated hereby ("Related Proceedings") may be instituted in the
      federal courts of the United States of America located in the City and
      County of New York or the courts of the State of New York in each case
      located in the City and County of New York (collectively, the "Specified
      Courts"), and each party hereto irrevocably submits to the non-exclusive
      jurisdiction (except for proceedings instituted in regard to the
      enforcement of a judgment of any such court (a "Related Judgment"), as to
      which such jurisdiction is non-exclusive) of such courts in any such suit,
      action or proceeding. Service of any process, summons, notice or document
      by mail to such party's address set forth above shall be effective service
      of process for any suit, action or other proceeding brought in any such
      court. The parties irrevocably and unconditionally waive any objection to
      the laying of venue of any suit, action or other proceeding in the
      Specified Courts and irrevocably and unconditionally waive and agree not
      to plead or claim in any such court that any such suit, action or other
      proceeding brought in any such court has been brought in an inconvenient
      forum.

            Section 16. General Provisions. This Agreement constitutes the
entire agreement of the parties to this Agreement and supersedes all prior
written or oral and all contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof except, as to the Initial
Purchasers, the Note Purchase Agreement. This Agreement may be executed in two
or more counterparts, each one of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.
This Agreement may not be amended or modified unless in writing by all of the
parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.
The Table of Contents and the section headings herein

                                       30
<PAGE>
are for the convenience of the parties only and shall not affect the
construction or interpretation of this Agreement.

                                       31
<PAGE>
          Kindly sign and return to the Company the enclosed copies hereof,
whereupon this instrument, along with all counterparts hereof, shall become a
binding agreement in accordance with its terms.

                                Very truly yours,

                                INSIGHT HEALTH SERVICES HOLDINGS CORP.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Vice President & Secretary

                                INSIGHT HEALTH SERVICES CORP.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title:

                                INSIGHT HEALTH CORP.

                                By:
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title:

                                SIGNAL MEDICAL SERVICES, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title:

<PAGE>
                                OPEN MRI, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                MAXUM HEALTH CORP.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                RADIOSURGERY CENTERS, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                MAXUM HEALTH SERVICES CORP.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                MRI ASSOCIATES, L.P.

                                By: InSight Health Corp., its General Partner

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person
<PAGE>
                                MAXUM HEALTH SERVICES OF NORTH TEXAS, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                MAXUM HEALTH SERVICES OF DALLAS, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                NDDC, INC.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person

                                DIAGNOSTIC SOLUTIONS CORP.

                                By: /s/ Mark J. Tricolli
                                   -------------------------------
                                   Name: Mark J. Tricolli
                                   Title: Authorized Person
<PAGE>
The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial
Purchasers as of the date first above written.

BANC OF AMERICA SECURITIES LLC

By: /s/ Raymond Cubero
   ---------------------------
   Name: Raymond Cubero
   Title: Managing Director

FIRST UNION SECURITIES, INC.

By: /s/  Jeff Gore
   ---------------------------
   Name: Jeff Gore
   Title: Vice President
<PAGE>
                                                                      SCHEDULE A

                                   GUARANTORS
                                   ----------

Guarantor                                       Jurisdiction of Organization
---------                                       ----------------------------

InSight Health Corp.                                  Delaware

Signal Medical Services, Inc.                         Delaware

Open MRI, Inc.                                        Delaware

Maxum Health Corp.                                    Delaware

Radiosurgery Centers, Inc.                            Delaware

Maxum Health Services Corp.                           Delaware

MRI Associates, L.P.                                  Indiana

Maxum Health Services of North Texas, Inc.            Texas

Maxum Health Services of Dallas, Inc.                 Texas

NDDC, Inc.                                            Texas

Diagnostic Solutions Corp.                            Delaware
<PAGE>
                                   SCHEDULE B
                               MATERIAL AGREEMENTS
                               -------------------

1.       Credit Agreement, dated as of October 17, 2001, among InSight Health
         Services Acquisition Corp., InSight Health Services Holdings Corp.,
         InSight Health Services Corp. , the Guarantors, as defined therein, the
         lenders from time to time party thereto, First Union National Bank, as
         syndication agent, The CIT Group/Business Credit, Inc., as
         documentation agent, and Bank of America, N.A., as administrative
         agent.

2.       Note Purchase Agreement, dated as of October 17, 2001, among InSight
         Health Services Acquisition Corp., InSight Health Services Holdings
         Corp., InSight Health Services Corp., the Subsidiary Guarantors, as
         defined therein, Banc of America Bridge LLC and Banc of America
         Securities LLC.

3.       Management Agreement, dated as of October 17, 2001, among J.W. Childs
         Advisors II., L.P, Halifax Genpar, L.P., InSight Health Services
         Holdings Corp. and InSight Health Services Corp.

4.       Amended and Restated Stockholders Agreement by and among InSight Health
         Services Holdings Corp., J.W. Childs Equity Partners II, L.P., JWC
         InSight Co-invest LLC, Halifax Capital Partners, L.P., David W. Dupree
         and the other parties named therein.

5.       Swap Master Agreement, dated as of December 24, 1997, between
         NationsBank, N.A. and InSight Health Services Corp., including exercise
         of Swap Option dated as of March 29, 2001.

6.       Borrower Assignment, Assumption and Release dated as of October 17,
         2001 by and between Acquisition Corp. and InSight.

7.       InSight Health Services Parent Corp. 2001 Stock Option Plan Stock
         Option Agreement between InSight Health Services Holdings Corp. and
         each of Steven T. Plochocki, Michael A. Boylan, Thomas V. Croal and
         Michael S. Madler.

8.       Executive Employment Agreement dated as of June 29, 2001, between
         InSight Health Services Corp., InSight Health Services Holdings Corp.
         and each of Robert J. Armstrong, Susan E. Arnheiter, Patricia R. Blank,
         Michael A. Boylan, Michael W. Brown, Thomas V. Croal, Joseph F.
         Denninger, Brian G. Drazba, Cecilia A. Guastaferro, Michael S. Madler,
         Tammy M. Morita, Steven T. Plochocki and Brian W. Woodbury.

9.       Security Agreement dated as of October 17, 2001 by and among InSight
         Health Services Holdings Corp., InSight Health Services Corp. and the
         Subsidiary Guarantors (as defined therein).

10.      Pledge Agreement dated as of October 17, 2001 by and between InSight
         Health Services Holdings Corp., InSight Health Services Corp. and the
         Subsidiary Guarantors (as defined therein).

<PAGE>
11.      Paying Agent Agreement dated as of October 17, 2001 between InSight
         Health Services Holdings Corp. and American Stock and Transfer & Trust
         Company.

12.      Subscription and Contribution Agreement dated as of October 17, 2001 by
         and among InSight Health Services Holdings Corp., J.W. Childs Equity
         Partners II, L.P., JWC InSight Co-invest LLC, Halifax Capital Partners,
         L.P. and David W. Dupree.

13.      Real Estate Lease for 11617 North Central Expressway, Suite 132,
         Dallas, Texas between Century Properties Fund XIII and NDDC, Inc.

14.      Real Estate Lease for 4225 Rosewood Drive, Suites 4, 5 and 6,
         Pleasanton, California between New Plan Excel Realty Trust, Inc. and
         InSight Health Corp.

15.      Real Estate Lease for 1001 and 1005 North Highland Avenue,
         Murfreesboro, Tennessee between Marlin Properties, LLC and InSight
         Health Corp.

16.      Real Estate Lease for 800 Shadow Lane, Las Vegas, Nevada between
         Borstein Partners Ltd. and InSight Health Corp.

17.      Real Estate Lease for 12455 East Washington Boulevard, Whittier,
         California between Washington Magnetic Resonance Center and InSight
         Health Corp.

18.      Real Estate Lease for 21 Stockton Drive, Toms River, New Jersey between
         Center State Health Group, Inc. and Toms River Imaging Associates, LP.

19.      Real Estate Lease for 1700 North Rose, Suite 110, Oxnard, California
         between CHW Central Coast and St. John's Regional Imaging Center, LLC.

20.      Real Estate Lease for 17950 Preston Road, Suite 120, Dallas, Texas
         between 17950 Partners, Ltd. and InSight Health Corp.

21.      Purchase Agreement between IHC and Berlex Laboratories dated 5/1/00.

22.      Master Service Agreement between IHC and General Electric dated 1/1/97.

23.      Agreement between the Company and Lafayette Pharmaceuticals, Inc. dated
         2/14/00.

24.      Distribution and Service Agreement between IHC and NHD, Inc. dated
         2/14/00.

25.      Operating Lease with General Electric for 1.5T Signa dated 10/00
         (G1238A).

26.      Operating Lease with General Electric for 1.5T Signa dated 03/01
         (G1242A).

27.      Operating Lease with General Electric for 1.5T Signa dated 03/01
         (G1243A).

<PAGE>
28.      Operating Lease with General Electric for 1.5T Signa dated 03/01
         (G1244A).

29.      Operating Lease with General Electric for 1.5T Signa dated 03/01
         (G1245A).

<PAGE>
                                   SCHEDULE C

                  SUBSIDIARIES OF INSIGHT HEALTH SERVICES CORP.

Subsidiary                                         Jurisdiction of Organization
----------                                         ----------------------------
InSight Health Corp.                                         Delaware
Diagnostic Solutions Corp.                                   Delaware
Maxum Health Corp.                                           Delaware
Maxum Health Services Corp.                                  Delaware
Maxum Health Services of Dallas, Inc.                          Texas
Maxum Health Services of North Texas, Inc.                     Texas
NDDC, Inc.                                                     Texas
Open MRI, Inc.                                               Delaware
Radiosurgery Centers, Inc.                                   Delaware
Signal Medical Services, Inc.                                Delaware
Toms River Imaging Associates, L.P.                         New Jersey
Berwyn Magnetic Resonance Center, LLC                        Illinois
Connecticut Lithotripsy, LLC                                Connecticut
Daniel Freeman MRI, LLC                                     California
Dublin Diagnostic Imaging, LLC                                 Ohio
Garfield Imaging Center, Ltd.                               California
Granada Hills Open MRI, LLC                                 California
InSight-Premier Health, LLC                                    Maine
Lockport MRI, LLC                                            New York
MRI Associates, L.P.                                          Indiana
St. John's Regional Imaging Center, LLC                     California
Sun Coast Imaging Center, LLC                                 Florida
Wilkes-Barre Imaging, LLC                                   Pennsylvania

<PAGE>
                                                                      SCHEDULE D
                                                                      ----------

                               INITIAL PURCHASERS
                               ------------------

<TABLE>
<CAPTION>
                                                         Aggregate Principal
                                                        Amount of Initial Notes
                                                            to be issued in
                                                        exchange for Existing
                 Initial Purchasers                             Notes
                 ------------------                    ------------------------

<S>                                                    <C>
Banc of America Securities LLC ......................  $   170,000,000
First Union Securities, Inc..........................  $    30,000,000
                                                       ------------------------
Total                                                  $   200,000,000
</TABLE>

<TABLE>
<CAPTION>
                                                         Aggregate Principal
                                                         Amount of Additional
                 Initial Purchasers                             Notes
                 ------------------                   ------------------------

<S>                                                    <C>
Banc of America Securities LLC ......................  $   21,250,000
First Union Securities, Inc..........................  $    3,750,000
                                                      ------------------------
Total                                                  $   25,000,000
</TABLE>

<PAGE>
                                                                     EXHIBIT A-1

                       FORM OF OPINION OF KAYE SCHOLER LLP

            (i) Each of Holdings and the Company has been duly incorporated and
is validly existing as a corporation in good standing under the laws of the
State of Delaware.

            (ii) Each of Holdings and the Company has the corporate power and
authority to own, lease and operate its properties and to conduct its business
as described in the Offering Memorandum and to enter into and perform its
obligations under the Purchase Agreement and the other Transaction Documents to
which it is a party.

            (iii) All of the issued and outstanding capital stock of each of
Holdings and the Company has been duly authorized and, to our knowledge, has
been validly issued, is fully paid and non-assessable. Except as described in
the Offering Memorandum, all the outstanding shares of capital stock of the
Company are owned of record by Holdings, free and clear of any security
interest, mortgage, pledge, lien, encumbrance or any pending or threatened
claim.

            (iv) The description of Holdings' stock option, stock bonus and
other stock plans or arrangements and the options or other rights granted
thereunder set forth in the Offering Memorandum fairly summarizes, in all
material respects, such plans, arrangements, options and rights.

            (v) The issuance and sale of the Notes by the Company will not be
subject to any preemptive right arising by operation of the charter or by-laws
of the Company or the General Corporation Law of the State of Delaware or under
any agreement listed on Schedule 1 hereto.

            (vi) The Purchase Agreement has been duly authorized, executed and
delivered by Holdings and the Company.

            (vii) Each of the Registration Rights Agreement and the DTC Letter
of Representations has been duly authorized, executed and delivered by, and is a
valid and binding agreement of, the Company, enforceable in accordance with its
terms, except with respect to any indemnification or contribution provision
thereof and subject to bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws now or hereafter in effect relating
to creditors' rights and remedies and general principles of equity (regardless
of whether considered in a proceeding at law or in equity), and the Registration
Rights Agreement has been duly authorized, executed and delivered by, and is a
valid and binding agreement of, Holdings, enforceable in accordance with its
terms, except with respect to any indemnification or contribution provision
thereof and subject to bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws now or hereafter in effect relating
to creditors' rights and remedies and general principles of equity (regardless
of whether considered in a proceeding at law or in equity).

            (viii) The Indenture has been duly authorized, executed and
delivered by the Company and Holdings and (assuming the due authorization,
execution and delivery thereof by the Trustee) constitutes a valid and binding
agreement of the Company and Holdings, enforceable against the Company and
Holdings in accordance with its terms, except with respect

                                      A-1
<PAGE>
to any indemnification or contribution provision thereof and subject to
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
other similar laws now or hereafter in effect relating to creditors' rights and
remedies and general principles of equity (regardless of whether considered in a
proceeding at law or in equity).

            (ix) The Notes are in the form contemplated by the Indenture, have
been duly authorized by the Company for issuance and sale pursuant to the
Purchase Agreement and the Indenture and, when executed by the Company and
authenticated by the Trustee in the manner provided in the Indenture (assuming
the due authorization, execution and delivery of the Indenture by the Trustee)
and delivered against surrender of the Existing Notes in exchange therefor (and,
in the case of the Additional Notes, payment of the purchase price therefor),
will constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except with respect to any
indemnification or contribution provision thereof and subject to bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws now or hereafter in effect relating to creditors' rights and remedies and
general principles of equity (regardless of whether considered in a proceeding
at law or in equity).

            (x) The Board of Directors of the Company has duly adopted by
requisite vote the resolutions necessary to authorize the execution, delivery
and performance of the Exchange Notes. No approval by Holdings, as sole
stockholder of the Company, is required therefor.

            (xi) The Guarantee by Holdings of the Notes is in the form
contemplated by the Indenture, has been duly authorized for issuance and sale
pursuant to the Purchase Agreement and the Indenture and, at the Closing Date,
will have been duly executed by Holdings and, when the Notes have been
authenticated in the manner provided for in the Indenture and delivered against
surrender of the Existing Notes in exchange therefor (and, in the case of the
Additional Notes, payment of the purchase price therefor), will constitute the
valid and binding agreement of Holdings, enforceable in accordance with its
terms, subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws now or hereafter in effect relating to
creditors' rights and remedies and general principles of equity (regardless of
whether considered in a proceeding at law or in equity), and will be entitled to
the benefits of the Indenture.

            (xii) The Securities, the Indenture and the Registration Rights
Agreement conform in all material respects to the descriptions thereof contained
in the Offering Memorandum.

            (xiii) The statements in the Offering Memorandum under the captions
"Offering Memorandum Summary -- The Acquisition and Related Financing
Transactions," "Risk Factors -- Risks Relating to the Notes -- Your right to
receive payments on these notes is junior to the issuer's existing senior
indebtedness and possibly all of its future borrowings. Further, the guarantees
of these notes are junior to all of the guarantors' existing senior indebtedness
and possibly to all their future borrowings," "Risk Factors -- Risks Relating to
the Notes -- Since the notes are unsecured, your right to enforce remedies is
limited by the rights of holders of secured debt," "Risk Factors -- Risks
Relating to the Notes -- You should not rely on our parent company's guarantee
in evaluating an investment in the notes," "Risk Factors -- Risks Relating to
the Notes -- Not all of our subsidiaries guarantee our obligations under the
notes, and the assets

                                      A-2
<PAGE>
of the non-guarantor subsidiaries may not be available to make payments on the
notes," "Risk Factors -- Risks Relating to the Notes -- The indenture related to
the notes and the new senior credit facilities will contain various covenants
which limit our management's discretion in the operations of our business,"
"Risk Factors -- Risks Relating to the Notes -- The issuer may not have the
ability to raise the funds necessary to finance the change of control offer
required by the indenture," "Risk Factors -- Risks Relating to the Notes --
Federal and state statutes allow courts, under specific circumstances, to avoid
guarantees and require noteholders to return payments received from guarantors,"
"Risk Factors -- Risks Relating to Our Company and Our Industry -- The interests
of our controlling stockholders could conflict with those of the holders of the
notes offered hereby," "The Acquisition and Related Financing Transactions,"
"Management -- Employment Agreements," "Management -- 2001 Stock Option Plan,"
"Management -- Stock Option Agreements," "Certain Relationships and Related
Transactions," "Description of New Senior Credit Facilities," "Description of
the Notes," "Certain Federal Income Tax Considerations" and "Notice to
Investors," insofar as such statements constitute matters of law, summaries of
legal matters, documents or legal conclusions, have been reviewed by such
counsel, fairly summarize, in all material respects, the matters referred to
therein and do not omit a material fact necessary to make the statements
contained therein not misleading.

            (xiv) No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory
authority or agency of the federal government of the United States or the State
of New York, is required for the execution, delivery and performance by the
Company or any Guarantor of the Purchase Agreement, the Registration Rights
Agreement, the Indenture or the Securities, as applicable, the execution,
delivery and performance by the Company of the DTC Letter of Representations or
the issuance and delivery by the Company or any Guarantor of the Securities, or
consummation of the transactions contemplated hereby and thereby, except as may
be required under the Securities Act, the Exchange Act, the Trust Indenture Act
and applicable state securities or blue sky laws.

            (xv) The execution and delivery of the Purchase Agreement, the
Registration Rights Agreement, the DTC Letter of Representations, the Securities
and the Indenture by the Company and Holdings, to the extent it is a party
thereto, the performance by the Company and Holdings of their respective
obligations thereunder (i) will not result in any violation of the provisions of
the charter or by-laws of the Company or Holdings, as applicable, (ii) will not
constitute a breach of, or Default, or result in the imposition of any lien,
charge or encumbrance upon any property or assets of the Company or Holdings, as
applicable, pursuant to, with respect to the Company, any of the Agreements
listed on Schedule 1 hereto, and with respect to Holdings, any of the Agreements
listed on Schedule 2 hereto which Holdings has identified to us as its only
material agreements; or (iii) to the best knowledge of such counsel, will not
result in any violation of any law or administrative regulation, which a lawyer
exercising customary professional diligence would reasonably recognize as being
applicable to Holdings or the Company with respect to the transactions
contemplated by the Purchase Agreement, the Registration Rights Agreement, the
Indenture and the Securities. Such counsel need express no opinion herein as to
the applicability or effect of Healthcare Laws.

            (xvi) Neither the Company nor Holding is, nor after surrender of the
Existing Notes in exchange for the Notes (and receipt of payment for the
Additional Notes) will it be, an "investment company" requiring it to register
under the Investment Company Act.

                                      A-3
<PAGE>
            (xvii) Assuming the accuracy of the representations, warranties and
covenants of the Company, the Guarantors and the Initial Purchasers contained in
the Purchase Agreement, no registration of the Notes or the Guarantees under the
Securities Act, and no qualification of an indenture under the Trust Indenture
Act with respect thereto, is required in connection with the exchange of the
Existing Notes for the Securities (or, with respect to the Additional Notes, the
purchase thereof) by the Initial Purchasers or the initial resale of the
Securities by the Initial Purchasers to Qualified Institutional Buyers or
non-U.S. persons in the manner contemplated by the Purchase Agreement and the
Offering Memorandum other than any registration or qualification that may be
required in connection with the Exchange Offer contemplated by the Offering
Memorandum or in connection with the Registration Rights Agreement. Such counsel
need express no opinion, however, as to (x) the effect of state securities or
"blue sky" laws, foreign securities laws or the Exchange Act or (y) when or
under what circumstances any Notes initially sold by the Initial Purchasers may
be reoffered or resold.

            (xviii) To such counsel's knowledge, other than as described in the
Offering Memorandum, there are no pending or threatened legal or governmental
proceedings to which Holdings is a party that would be required to be described
by Item 103 of Regulation S-K under the Securities Act if the issuance of the
Notes were being registered under the Securities Act but is not so described in
the Offering Memorandum.

            (xix) None of the sale, issuance, execution or delivery of the Notes
will contravene Regulation T (12 C.F.R. Part 220), Regulation U (12 C.F.R. Part
221) or Regulation X (12 C.F.R. Part 224) of the Board of Governors of the
Federal Reserve System.

                                      A-4
<PAGE>
                                                                     EXHIBIT A-2

                      FORM OF OPINION OF HUNTON & WILLIAMS

            (i) Based solely on certificates of public officials and officers of
the Company, including the organizational documents attached thereto, the
Company is duly qualified as a foreign corporation to transact business and is
in good standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the
conduct of business, except for such jurisdictions where the failure to so
qualify or to be in good standing would not, individually or in the aggregate,
result in a Material Adverse Change.

            (ii) Based solely on certificates of public officials and officers
of the Company (which certificates shall be attached as exhibits to such
opinion), and the documents attached to such certificates (including the
organizational documents of the Subsidiary Guarantors), each Subsidiary
Guarantor is in valid existence and in good standing under the laws of its
respective jurisdiction of incorporation or formation as set forth on Schedule I
hereto. Based solely on certificates of public officials and officers of the
Company (which certificates shall be attached as exhibits to such opinion), and
the documents attached to such certificates (including the organizational
documents of the Subsidiary Guarantors), each Subsidiary Guarantor (a) has
corporate or entity power and authority to own, lease and operate its properties
and to conduct its business as described in the Offering Memorandum and to enter
into the Purchase Agreement and the other Transaction Documents to which it is a
party and (b) to the best of our knowledge, is duly qualified as a foreign
corporation or limited partnership, as the case may be, to transact business and
is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the
conduct of business, except for such jurisdictions where the failure to so
qualify or to be in good standing would not, individually or in the aggregate,
result in a Material Adverse Change.

            (iii) All of the issued and outstanding capital stock of each
Subsidiary Guarantor, if a corporation, has been duly authorized and, to our
knowledge, has been validly issued, is fully paid and non-assessable and is
owned by Holdings, directly or through Subsidiaries, free and clear of any
security interest, mortgage, pledge, lien, encumbrance or any pending or
threatened claim, except as disclosed in the Offering Memorandum.

            (iv) The Purchase Agreement has been duly authorized, executed and
delivered by each Subsidiary Guarantor.

            (v) The Registration Rights Agreement has been duly authorized,
executed and delivered by, and is a valid and binding agreement of, each
Subsidiary Guarantor, enforceable in accordance with its terms.

            (vi) The Indenture has been duly authorized, executed and delivered
by the each Subsidiary Guarantor and (assuming the due authorization, execution
and delivery thereof by the Trustee) constitutes a valid and binding agreement
of each Subsidiary Guarantor, enforceable against each Subsidiary Guarantor in
accordance with its terms.

            (vii) The Guarantees by the Subsidiary Guarantors of the Notes are
in the respective forms contemplated by the Indenture, have been duly authorized
for issuance and sale pursuant

                                      A-5
<PAGE>
to the Purchase Agreement and the Indenture and have been duly executed by each
of the Subsidiary Guarantors and, assuming the Notes have been authenticated in
the manner provided for in Section 2.02 of the Indenture and delivered against
surrender of the Existing Notes in exchange therefor (and, in the case of the
Additional Notes, assuming the payment of the purchase price therefor), will
constitute the valid and binding agreement of each Subsidiary Guarantor,
enforceable in accordance with its terms and will be entitled to the benefits of
the Indenture.

            (viii) The documents incorporated by reference in the Offering
Memorandum (other than the financial statements and related notes thereto and
other financial, statistical and accounting data and supporting schedules
therein, as to which no opinion need be rendered), when they were filed with the
Commission, complied as to form in all material respects with the requirements
of the Exchange Act.

            (ix) To such counsel's knowledge, there are no pending or threatened
legal or governmental proceedings to which the Company or any of its
subsidiaries is a party that would be required to be described by Item 103 of
Regulation S-K under the Securities Act if the issuance of the Notes were being
registered under the Securities Act but is not so described in the Offering
Memorandum.

            The enforceability of the Registration Rights Agreement, the
Indenture and the Guarantees of the Notes by the Subsidiary Guarantors is
subject to (i) bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other laws affecting the rights of creditors generally, and (ii)
general principles of equity, whether considered at law or in equity. We express
no opinion with respect to the indemnification and contribution provisions
contained in the Registration Rights Agreement and the Indenture.

            We have participated in various conferences with the officers and
other representatives of the Company and its independent certified public
accountants. In some conferences you and your counsel also participated. At
those conferences, the contents of the Offering Memorandum and Prospectus were
discussed and revised. Since the dates of those conferences, we have inquired of
certain officers whether there has been any material change in the affairs of
the Company.

Because of the inherent limitations in the independent verification of factual
matters, and the character of determinations involved in the preparation of
offering memoranda under the Securities Act, we are not passing upon, and do not
assume any responsibility for, and make no representation that we have
independently verified, the accuracy, completeness or fairness of the statements
contained in the Offering Memorandum. Also, we do not express any opinion or
belief as to the financial statements or other financial and statistical
information contained in the Offering Memorandum, or derived therefrom, or
incorporated therein by reference. However, subject to the foregoing, on the
basis of our participation in the conferences referred to above and our
examination of the documents referred to herein, we advise you that nothing has
come to the attention of the attorneys of this firm who have been engaged in the
representation of the Company in connection with the Company's issuance and sale
of the Notes that leads us to believe that the Offering Memorandum, as of its
date or at the Closing Date, contained or contains an untrue statement of
material fact or omitted or omits to state a material fact necessary

                                      A-6
<PAGE>
in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

                                      A-7
<PAGE>
                                                                       EXHIBIT B

              FORM OF OPINION OF GENERAL COUNSEL FOR THE COMPANY

            (i) The statements in the Offering Memorandum under the captions
"Risk Factors -- Risks Relating to Our Company and Our Industry -- Changes in
the rates or methods of third-party reimbursements for diagnostic imaging and
therapeutic services could result in reduced demand for our services or create
downward pricing pressure, which would result in a decline in our revenues and
harm our financial position," "Risk Factors -- Risks Relating to Our Company and
Our Industry -- We may be unable to renew or maintain our customer contracts
which would harm our business and financial results," "Risk Factors -- Risks
Relating to Government Regulation of Our Business," "Business -- Diagnostic
Imaging and Other Equipment," "Business -- Properties," "Business --
Reimbursement of HealthCare Costs," "Business -- Government Regulation,"
"Business -- Compliance Program," "Business -- Legal Proceedings" and "Business
-- Company History," insofar as such statements constitute matters of law,
summaries of legal matters, proceedings, documents or legal conclusions, have
been reviewed by such counsel and fairly present and summarize, in all material
respects, the matters referred to therein. The statements under the captions
"Business -- Proposed Acquisition and Related Financing Transactions," "Business
-- Diagnostic Imaging and Other Equipment," "Business -- Government Regulation,"
" -- Reimbursement of HealthCare Costs," "Business -- Compliance Program,"
"Business -- Company History," "Business -- Properties," "Business -- Legal
Proceedings," "Directors and Executive Officers of the Registrant -- Board of
Directors," "Directors and Executive Officers of the Registrant -- Section 16(a)
Beneficial Ownership Reporting Compliance," "Executive Compensation --
Compensation of Directors," "Executive Compensation -- Indemnification
Agreements," "Executive Compensation -- Employment Agreements and Severance
Arrangements" and "Certain Relationships and Related Transactions" in the Annual
Report of the Company on Form 10-K incorporated by reference in the Offering
Memorandum, insofar as such statements constitute matters of law, summaries of
legal matters, proceedings, documents or legal conclusions, have been reviewed
by such counsel and fairly present and summarize, in all material respects, the
matters referred to therein.

            (ii) To such counsel's knowledge, the Company and each Subsidiary
Guarantor has such permits, licenses, franchises, certifications, accreditations
and authorizations (collectively, "Authorizations") from all regulatory or
governmental officials, bodies or tribunals as are necessary to own, lease and
operate its respective properties and to conduct its business in the manner
described in the Offering Memorandum and is eligible to participate in the
Medicare and Medicaid programs as and to the extent described in the Offering
Memorandum and, to such counsel's knowledge, the Company and each Subsidiary
Guarantor has fulfilled and performed all of its material obligations with
respect to such Authorizations or eligibility and no event has occurred which
allows, or after notice or lapse of time would allow, revocation or termination
thereof except where such revocation or termination would not result in a
Material Adverse Change.

            (iii) The execution and delivery of the Purchase Agreement, the DTC
Letter of Representations, the Registration Rights Agreement, the Indenture and
the Securities by the Company and the Subsidiary Guarantors and the performance
by the Company and the Subsidiary Guarantors of their respective obligations
thereunder (i) will not result in any

                                      B-1
<PAGE>
violation of the provisions of the limited partnership agreement, charter or
by-laws of the Company or any Subsidiary Guarantor, as applicable, or (ii) will
not constitute a breach of, or Default under or result in the imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any
Subsidiary Guarantor pursuant to (x) any contract, loan agreement, note
indenture, mortgage, deed of trust, lease or other agreement or instrument filed
by the Company with the Commission (other than the agreements listed on Schedule
1 hereto, as to which such counsel need not express an opinion, or (y) to such
counsel's knowledge, any statute, rule or regulation or any judgment, order or
decree of any governmental authority or court or arbitrator applicable to the
Company or any Subsidiary Guarantor.

            (iv) The issuance and sale of the Notes by the Company will not be
subject to any preemptive rights arising under any agreement known to us to
which the Company is a party, other than the agreements listed on Schedule A
hereto, as to which such counsel need not express an opinion.

            (v) To the best knowledge of such counsel, neither the Company nor
any of the Subsidiary Guarantors is in violation of its charter or by-laws or
equivalent constitutive document or any law, administrative regulation or
administrative or court decree applicable to it or is in Default in the
performance or observance of any obligation, agreement, covenant or condition
contained in any agreement listed as an Exhibit to the Annual Report or in
Schedule B to the Purchase Agreement to which the Company or any Subsidiary
Guarantor is a party.

   In addition, such counsel shall state that such counsel has participated in
conferences with officers and other representatives of Acquisition and the
Company, representatives of the independent public or certified public
accountants for the Company and with representatives of the Initial Purchaser at
which the contents of the Offering Memorandum, and any supplements or amendments
thereto, and related matters were discussed and revised and, although such
counsel is not passing upon and does not assume any responsibility for, and
makes no representation that such counsel has independently verified, the
accuracy, completeness or fairness of the statements contained in the Offering
Memorandum (other than as specified above), and any supplements or amendments
thereto, subject to the foregoing, no facts have come to such counsel's
attention which would lead such counsel to believe that either the Offering
Memorandum, as of its date or at the Closing Date, contained or contains an
untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading (it being understood
that such counsel need express no belief as to the financial statements or other
financial or statistical data derived therefrom, included or incorporated by
reference in the Offering Memorandum or any amendments or supplements thereto).

                                      B-2
<PAGE>
                                                                       EXHIBIT C

            FORM OF OPINION OF REGULATORY COUNSEL FOR THE COMPANY

      The statements in the Offering Memorandum under the captions "Risk Factors
-- Risks Relating to Our Company and Our Industry -- Changes in the rates or
methods of third-party reimbursements for diagnostic imaging and therapeutic
services could result in reduced demand for our services or create downward
pricing pressure, which would result in a decline in our revenues and harm our
financial position," "Risk Factors -- Risks Relating to Government Regulation of
Our Business," "Business -- Reimbursement of HealthCare Costs" and "Business --
Government Regulation," insofar as such statements constitute a summary of the
legal or regulatory matters or legal or regulatory proceedings referred to
therein, have been reviewed by such counsel, are correct in all material
respects and do not omit a material fact necessary to make the statements
contained therein not misleading. The statements under the captions "Business --
Government Regulation" and " -- Reimbursement of HealthCare Costs" in the Annual
Report of the Company on Form 10-K for the year ended June 30, 2001 incorporated
by reference in the Offering Memorandum, insofar as such statements constitute a
summary of the legal or regulatory matters or legal or regulatory proceedings
referred to therein, have been reviewed by such counsel, are correct in all
material respects and do not omit a material fact necessary to make the
statements contained therein not misleading.

      Such counsel need not express any opinion on any representation by the
Company or any omission by the Company to make any disclosure in the Offering
Memorandum or the Annual Report concerning its compliance with any legal or
regulatory matter or the effect upon it of any legal or regulatory matter. Such
counsel's opinion is confined to the summaries of legal and regulatory matters
appearing in the Offering Memorandum and the Annual Report, and such counsel is
not expressing any opinion on whether those summaries include summaries of all
the legal and regulatory matters affecting the Company.
<PAGE>
                                                                         ANNEX I

                   TERMS AND CONDITIONS OF OFFERS AND SALES

Resale Pursuant to Regulation S or Rule 144A.

Each Initial Purchaser understands that:

            (a) Each Initial Purchaser agrees that it has not offered or sold
and will not offer or sell the Securities in the United States or to, or for the
benefit or account of, a U.S. Person (other than a distributor), in each case,
as defined in Rule 902 under the Securities Act (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement
of the offering of the Securities pursuant hereto and the Closing Date, other
than in accordance with Regulation S of the Securities Act or another exemption
from the registration requirements of the Securities Act. Such Initial Purchaser
agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any "tombstone"
advertisement) to be published in any newspaper or periodical or posted in any
public place and will not issue any circular relating to the Securities, except
such advertisements as permitted by and include the statements required by
Regulation S.

            (b) Each Initial Purchaser agrees that, at or prior to confirmation
of a sale of Securities by it to any distributor, dealer or person receiving a
selling concession, fee or other remuneration during the 40-day restricted
period referred to in Rule 903(c)(3) under the Securities Act, it will send to
such distributor, dealer or person receiving a selling concession, fee or other
remuneration a confirmation or notice to substantially the following effect:

      "The Securities covered hereby have not been registered under the U.S.
      Securities Act of 1933, as amended (the "Securities Act"), and may not be
      offered and sold within the United States or to, or for the account or
      benefit of, U.S. persons (i) as part of your distribution at any time or
      (ii) otherwise until 40 days after the later of the commencement of the
      Offering and the Closing Date, except in either case in accordance with
      Regulation S under the Securities Act (or Rule 144A in transactions that
      are exempt from the registration requirements of the Securities Act), and
      in connection with any subsequent sale by you of the Notes covered hereby
      in reliance on Regulation S during the period referred to above to any
      distributor, dealer or person receiving a selling concession, fee or other
      remuneration, you must deliver a notice to substantially the foregoing
      effect. Terms used above have the meanings assigned to them in Regulation
      S."<PAGE>
                                                                     Exhibit 4.3

                                  $225,000,000

                    9-7/8% SENIOR SUBORDINATED NOTES DUE 2011

                          REGISTRATION RIGHTS AGREEMENT

                          DATED AS OF OCTOBER 30, 2001
                                  BY AND AMONG

                         INSIGHT HEALTH SERVICES CORP.,

                     INSIGHT HEALTH SERVICES HOLDINGS CORP.,

                     THE SUBSIDIARIES LISTED IN SCHEDULE A,
                                  AS GUARANTORS

                                      -AND-

                         BANC OF AMERICA SECURITIES LLC

                          FIRST UNION SECURITIES, INC.
<PAGE>
            This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of October 30, 2001, by and among InSight Health Services Corp.,
a Delaware corporation (the "COMPANY"), InSight Health Services Holdings Corp.,
a Delaware corporation ("HOLDINGS"), the subsidiaries of the Company listed in
Schedule A herein (the "SUBSIDIARY GUARANTORS," and, together with Holdings, the
"GUARANTORS") and Banc of America Securities LLC and First Union Securities,
Inc. (together, the "PURCHASERS"). The Purchasers are offering and selling the
Company's 9-7/8% Senior Subordinated Notes due 2011 (the "NOTES") pursuant to
the Purchase Agreement (as defined below).

            This Agreement is made pursuant to the Purchase Agreement, dated
October 25, 2001 (the "PURCHASE AGREEMENT"), by and among the Company, the
Guarantors and the Purchasers and pursuant to a Note Purchase Agreement, dated
as of October 17, 2001, by and among InSight Health Services Acquisition Corp.,
the Company, the Guarantors, Banc of America Securities LLC and Banc of America
Bridge LLC (the "NOTE PURCHASE Agreement"). In order to induce Banc of America
Bridge LLC to purchase the Notes under the Note Purchase Agreement, the Company
has agreed to provide the registration rights set forth in this Agreement.

            Capitalized terms used herein and not otherwise defined herein shall
have the meaning assigned to them under the Indenture, dated as of October 30,
2001 (the "INDENTURE"), entered into by and among the Company, each Guarantor
and State Street Bank and Trust Company, N.A., as Trustee, relating to the Notes
and the Exchange Notes (as defined below).

            The parties hereby agree as follows:

            Section 1. Definitions. As used in this Agreement, the following
capitalized terms shall have the following meanings:

            ACT: The Securities Act of 1933, as amended.

            AFFILIATE: As defined in Rule 144 under the Act.

            BROKER-DEALER: Any broker or dealer registered under the Exchange
Act.

            CERTIFICATED SECURITIES: Definitive Notes, as defined in the
Indenture.

            CLOSING DATE: The date hereof.

            COMMISSION: The Securities and Exchange Commission.

            CONSUMMATE: An Exchange Offer shall be deemed "Consummated" for
purposes of this Agreement upon the occurrence of (a) the filing and
effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Exchange Notes to be issued in the Exchange Offer, (b) the
maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the period
required pursuant to Section 3(b) hereof and (c) the delivery by the Company to
the Registrar under the Indenture of Exchange Notes in the same aggregate
principal amount as the

                                       2
<PAGE>
aggregate principal amount of Notes tendered by Holders thereof pursuant to the
Exchange Offer.

            CONSUMMATION DEADLINE: As defined in Section 3(b) hereof.

            EFFECTIVENESS DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

            EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

            EXCHANGE NOTES: The Company's 9-7/8% Senior Subordinated Notes due
2011 to be issued pursuant to the Indenture: (i) in the Exchange Offer or (ii)
as contemplated by Section 4 hereof.

            EXCHANGE OFFER: The exchange and issuance by the Company of a
principal amount of Exchange Notes (which shall be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal amount
of Notes that are tendered by such Holders in connection with such exchange and
issuance.

            EXCHANGE OFFER REGISTRATION STATEMENT: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

            EXEMPT RESALES: The transactions in which the Purchasers propose to
sell the Notes to certain "qualified institutional buyers," as such term is
defined in Rule 144A under the Act and pursuant to Regulation S under the Act.

            FILING DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

            HOLDERS: As defined in Section 2 hereof.

            PROSPECTUS: The prospectus included in a Registration Statement at
the time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

            RECOMMENCEMENT DATE: As defined in Section 6(d) hereof.

            REGISTRATION DEFAULT: As defined in Section 5 hereof.

            REGISTRATION STATEMENT: Any registration statement of the Company
and the Guarantors relating to (a) an offering of Exchange Notes pursuant to an
Exchange Offer or (b) the registration for resale of Transfer Restricted
Securities pursuant to the Shelf Registration Statement, in each case, (i) that
is filed pursuant to the provisions of this Agreement and (ii) including the
Prospectus included therein, all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by
reference therein.

            REGULATION S: Regulation S promulgated under the Act.

            RULE 144: Rule 144 promulgated under the Act.

                                       3
<PAGE>
            SHELF REGISTRATION STATEMENT: As defined in Section 4 hereof.

            SUSPENSION NOTICE: As defined in Section 6(d) hereof.

            TIA: The Trust Indenture Act of 1939 as in effect on the date of the
Indenture.

            TRANSFER RESTRICTED SECURITIES: Each (A) Note, until the earliest to
occur of (i) the date on which such Note is exchanged in the Exchange Offer for
an Exchange Note which is entitled to be resold to the public by the Holder
thereof without complying with the prospectus delivery requirements of the Act,
(ii) the date on which such Note has been disposed of in accordance with a Shelf
Registration Statement (and the purchasers thereof have been issued Exchange
Notes) or (iii) the date on which such Note is distributed to the public
pursuant to Rule 144 under the Act or is saleable pursuant to Rule 144(k) under
the Act (or similar provisions then in effect) and (B) Exchange Note held by a
Broker-Dealer until the date on which such Exchange Note is disposed of by a
Broker-Dealer pursuant to the "Plan of Distribution" contemplated by the
Exchange Offer Registration Statement (including the delivery of the Prospectus
contained therein).

            Section 2. Holders. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a "HOLDER") whenever such Person owns Transfer
Restricted Securities.

            Section 3. Registered Exchange Offer. (a) Unless the Exchange Offer
shall not be permitted by applicable federal law (after the procedures set forth
in Section 6(a)(i) below have been complied with), the Company and the
Guarantors shall (i) cause the Exchange Offer Registration Statement to be filed
with the Commission as soon as practicable after the Closing Date, but in no
event later than 120 days after the Closing Date (such 120th day being the
"FILING DEADLINE"), (ii) use its best efforts to cause such Exchange Offer
Registration Statement to become effective at the earliest possible time, but in
no event later than 180 days after the Closing Date (such 180th day being the
"EFFECTIVENESS DEADLINE") and (iii) in connection with the foregoing, (A) file
all pre-effective amendments to such Exchange Offer Registration Statement as
may be necessary in order to cause it to become effective, (B) file, if
applicable, a post-effective amendment to such Exchange Offer Registration
Statement pursuant to Rule 430A under the Act and (C) cause all necessary
filings, if any, in connection with the registration and qualification of the
Exchange Notes to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence and
Consummate the Exchange Offer. The Exchange Offer shall be on the appropriate
form permitting (i) registration of the Exchange Notes to be offered in exchange
for the Notes that are Transfer Restricted Securities and (ii) resales of
Exchange Notes by any Broker-Dealer that tendered Notes into the Exchange Offer
that such Broker-Dealer acquired for its own account as a result of market
making activities or other trading activities (other than Notes acquired
directly from the Company or any of their respective Affiliates) as contemplated
by Section 3(c) below.

            (b)   The Company and the Guarantors shall use their respective
reasonable best efforts to cause the Exchange Offer Registration Statement to be
effective continuously, and shall keep the Exchange Offer open for a period of
not less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided,

                                       4
<PAGE>
however, that in no event shall such period be less than 30 days. The Company
and the Guarantors shall cause the Exchange Offer to comply with all applicable
federal and state securities laws. No securities other than the Exchange Notes
shall be included in the Exchange Offer Registration Statement. The Company and
the Guarantors shall use their respective reasonable best efforts to cause the
Exchange Offer to be Consummated on the earliest practicable date after the
Exchange Offer Registration Statement has become effective, but in no event
later than 45 days thereafter, and in no event shall such Exchange Offer be
Consummated later than 210 days after the Closing Date (such 210th day being the
"CONSUMMATION DEADLINE").

            (c)   The Company shall include a "Plan of Distribution" section in
the Prospectus contained in the Exchange Offer Registration Statement and
indicate therein that any Broker-Dealer who holds Transfer Restricted Securities
that were acquired for the account of such Broker-Dealer as a result of
market-making activities or other trading activities (other than Notes acquired
directly from the Company or any of their respective Affiliates), may exchange
such Transfer Restricted Securities pursuant to the Exchange Offer. Such "Plan
of Distribution" section shall also contain all other information with respect
to such sales by such Broker-Dealers that the Commission may require in order to
permit such sales pursuant thereto, but such "Plan of Distribution" shall not
name any such Broker-Dealer or disclose the amount of Transfer Restricted
Securities held by any such Broker-Dealer, except to the extent required by the
Commission as a result of a change in policy, rules or regulations after the
date of this Agreement. See the Shearman & Sterling no-action letter (available
July 2, 1993).

            Because any such Broker-Dealer may be deemed to be an "underwriter"
within the meaning of the Act and must, therefore, deliver a prospectus meeting
the requirements of the Act in connection with its initial sale of any Exchange
Notes received by such Broker-Dealer in the Exchange Offer, the Company and the
Guarantors shall permit the use of the Prospectus contained in the Exchange
Offer Registration Statement by such Broker-Dealer to satisfy such prospectus
delivery requirement through the Consummation Deadline and thereafter as
provided in the remainder of this paragraph. To the extent necessary to ensure
that the prospectus contained in the Exchange Offer Registration Statement is
available for sales of Exchange Notes by any Broker-Dealer that acquired
Exchange Notes as a result of market-making or similar activities such that the
Broker-Dealer would be required to deliver a prospectus under the Act upon a
subsequent sale or other disposition of the Exchange Notes, then the Company and
the Guarantors agree to use their respective reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented,
amended and current as required by and subject to the provisions of Section 6(a)
and (c) hereof and in conformity with the requirements of this Agreement, the
Act and the policies, rules and regulations of the Commission as announced from
time to time, for a period of 180 days (as extended pursuant to Section 6(d)(i))
from the Consummation Deadline or such shorter period as will terminate when all
Transfer Restricted Securities covered by such Registration Statement have been
sold pursuant thereto if any such Broker-Dealer desiring such action shall
notify the Company in writing that such Broker-Dealer acquired Exchange Notes as
a result of market-making or other similar activities such that the
Broker-Dealer would be required to deliver a prospectus under the Act upon a
subsequent sale or other disposition of the Exchange Notes. The Company and the
Guarantors shall provide copies of the latest version of such Prospectus to such
Broker-Dealers, in such number as such Broker-Dealers may reasonably request
promptly upon such request, and

                                       5
<PAGE>
in no event later than two Business Days after the date of such request, at any
time during such period.

            Section 4. Shelf Registration. (a) If (i) the Exchange Offer is not
permitted by applicable law (after the Company and the Guarantors have complied
with the procedures set forth in Section 6(a)(i) below) or (ii) any Holder of
Transfer Restricted Securities shall notify the Company in writing within 30
days following the Consummation Deadline that (A) such Holder was prohibited by
law or Commission policy from participating in the Exchange Offer or (B) such
Holder may not resell the Exchange Notes acquired by it in the Exchange Offer to
the public without delivering a prospectus and the Prospectus contained in the
Exchange Offer Registration Statement is not appropriate or available for such
resales by such Holder or (C) such Holder is a Broker-Dealer and holds Notes
acquired directly from the Company or any of their Affiliates, or (iii) the
Exchange Offer has not been Consummated on or prior to the Consummation
Deadline, then the Company and the Guarantors shall: (x) cause to be filed, on
or prior to 45 days after the earliest of (i) the date on which the Company
determines that the Exchange Offer Registration Statement cannot be filed as a
result of clause (a)(i) above, (ii) the date on which the Company receives the
notice specified in clause (a)(ii) above, or (iii) if the Exchange Offer has not
been consummated on or prior to the Consummation Deadline, the Consummation
Deadline (such earliest date, the "FILING DEADLINE"), a shelf registration
statement pursuant to Rule 415 under the Act (which may be an amendment to the
Exchange Offer Registration Statement (the "SHELF REGISTRATION STATEMENT")),
relating to all Transfer Restricted Securities, and (y) shall use their
respective best efforts to cause such Shelf Registration Statement to become
effective on or prior to 90 days after the Filing Deadline for the Shelf
Registration Statement (such 90th day the "EFFECTIVENESS DEADLINE").

            If, after the Company and the Guarantors filed an Exchange Offer
Registration Statement that satisfies the requirements of Section 3(a) above,
the Company and the Guarantors are required to file and make effective a Shelf
Registration Statement solely because the Exchange Offer is not permitted under
applicable federal law (i.e., clause (a)(i) above), then the filing of the
Exchange Offer Registration Statement shall be deemed to satisfy the
requirements of clause (x) above; provided that, in such event, the Company and
the Guarantors shall remain obligated to use best efforts to meet the
Effectiveness Deadline set forth in clause (y).

            To the extent necessary to ensure that the Shelf Registration
Statement is available for sales of Transfer Restricted Securities by the
Holders thereof entitled to the benefit of this Section 4(a) and the other
securities required to be registered therein pursuant to Section 6(b)(ii)
hereof, the Company and the Guarantors shall use their respective best efforts
to keep any Shelf Registration Statement required by this Section 4(a)
continuously effective, supplemented, amended and current as required by and
subject to the provisions of Sections 6(b) and (c) hereof and in conformity with
the requirements of this Agreement, the Act and the policies, rules and
regulations of the Commission as announced from time to time, for a period of at
least two years (as extended pursuant to Section 6(c)(i)) following the Closing
Date, or such shorter period as will terminate when all Transfer Restricted
Securities covered by such Shelf Registration Statement have been sold pursuant
thereto.

            (b)   Provision by Holders of Certain Information in Connection with
the Shelf Registration Statement. No Holder of Transfer Restricted Securities
may include any of its

                                       6
<PAGE>
Transfer Restricted Securities in any Shelf Registration Statement pursuant to
this Agreement unless and until such Holder furnishes to the Company in writing,
within 20 days after receipt of a request therefor, the information specified in
Item 507 or 508 of Regulation S-K, as applicable, of the Act for use in
connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to liquidated damages pursuant to Section 5 hereof unless and until
such Holder shall have provided all such information. Each selling Holder agrees
to promptly furnish additional information required to be disclosed in order to
make the information previously furnished to the Company by such Holder not
materially misleading. The Company shall not be obligated to supplement such
Shelf Registration Statement after it has been declared effective by the
Commission more than one time per quarterly period solely to reflect additional
Holders.

            Section 5. Liquidated Damages. If (i) the Exchange Offer
Registration Statement required by this Agreement is not filed with the
Commission on or prior to the Filing Deadline, (ii) such Exchange Offer
Registration Statement has not been declared effective by the Commission on or
prior to the Effectiveness Deadline or the Exchange Offer has not been
Consummated on or prior to the Consummation Deadline or (iii) a Shelf
Registration Statement has not been declared effective on or prior to the
Effectiveness Deadline (each such event referred to in clauses (i) through
(iii), a "REGISTRATION DEFAULT"), then the Company will pay to each Holder of
Transfer Restricted Securities affected thereby liquidated damages in an amount
equal to $.05 per week per $1,000 in principal amount of Transfer Restricted
Securities held by such Holder for each week or portion thereof that the
Registration Default continues for the first 30-day period immediately following
the occurrence of a Registration Default referred to in clause (i) above or for
the first 90-day period following the occurrence of a Registration Default
referred to in clauses (ii) and (iii) above. The amount of the liquidated
damages shall increase by an additional $.05 per week per $1,000 in principal
amount of Transfer Restricted Securities with respect to each subsequent 30-day
period in the case of clause (i) above or 90-day period in the case of clauses
(ii) or (iii) above until all Registration Defaults have been cured, up to a
maximum amount of liquidated damages of $.30 per week per $1,000 in principal
amount of Transfer Restricted Securities. Notwithstanding anything to the
contrary set forth herein, (1) upon filing of the Exchange Offer Registration
Statement, in the case of (i) above, (2) upon the effectiveness of the Exchange
Offer Registration Statement and the Consummation of the Exchange Offer, in the
case of (ii) above or (3) upon effectiveness of the Shelf Registration
Statement, in the case of (iii) above, as applicable, the liquidated damages
payable with respect to the Transfer Restricted Securities as a result of such
clause (i), (ii) or (iii), as applicable, shall cease.

            All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated damages
are due cease to be Transfer Restricted Securities, all obligations of the
Company and the Guarantors to pay accrued liquidated damages with respect to
such securities shall survive until such time as such obligations with respect
to such securities shall have been satisfied in full.

            Section 6. Registration Procedures. (a) Exchange Offer Registration
Statement. In connection with the Exchange Offer, the Company and the Guarantors
shall (x) comply with

                                       7
<PAGE>
all applicable provisions of Section 6(c) below, (y) use their respective
reasonable best efforts to effect such exchange and to permit the resale of
Exchange Notes by any Broker-Dealer that tendered in the Exchange Offer Notes
that such Broker-Dealer acquired for its own account as a result of its market
making activities or other trading activities (other than Notes acquired
directly from the Company or any of their Affiliates) being sold in accordance
with the intended method or methods of distribution thereof, and (z) comply with
all of the following provisions:

            (i)   If, following the date hereof there has been announced a
      change in Commission policy with respect to exchange offers such as the
      Exchange Offer, that in the reasonable opinion of counsel to the Company
      raises a substantial question as to whether the Exchange Offer is
      permitted by applicable federal law, the Company and the Guarantors hereby
      agree to seek a no-action letter or other favorable decision from the
      Commission allowing the Company and the Guarantors to Consummate an
      Exchange Offer for such Transfer Restricted Securities. The Company and
      the Guarantors hereby agree to pursue the issuance of such a decision to
      the Commission staff level, but shall not be required to take commercially
      unreasonable action to effect a change of Commission policy. In connection
      with the foregoing, the Company and the Guarantors hereby agree to take
      all such other actions as may be requested by the Commission or otherwise
      reasonably required in connection with the issuance of such decision,
      including without limitation (A) participating in telephonic conferences
      with the Commission, (B) delivering to the Commission staff an analysis
      prepared by counsel to the Company setting forth the legal bases, if any,
      upon which such counsel has concluded that such an Exchange Offer should
      be permitted and (C) diligently pursuing a resolution (which need not be
      favorable) by the Commission staff.

            (ii)  As a condition to its participation in the Exchange Offer,
      each Holder of Transfer Restricted Securities (including, without
      limitation, any Holder who is a Broker-Dealer) shall furnish, upon the
      request of the Company, prior to the Consummation of the Exchange Offer, a
      written representation to the Company and the Guarantors (which may be
      contained in the letter of transmittal contemplated by the Exchange Offer
      Registration Statement) to the effect that (A) it is not an Affiliate of
      the Company, (B) it is not engaged in, and does not intend to engage in,
      and has no arrangement or understanding with any person to participate in,
      a distribution of the Exchange Notes to be issued in the Exchange Offer
      and (C) it is acquiring the Exchange Notes in its ordinary course of
      business. As a condition to its participation in the Exchange Offer each
      Holder using the Exchange Offer to participate in a distribution of the
      Exchange Notes shall acknowledge and agree that if the resales are of
      Exchange Notes obtained by such Holder in exchange for Notes acquired
      directly from the Company or an Affiliate thereof, it (1) could not, under
      Commission policy as in effect on the date of this Agreement, rely on the
      position of the Commission enunciated in Morgan Stanley and Co., Inc.
      (available June 5, 1991) and Exxon Capital Holdings Corporation (available
      May 13, 1988), as interpreted in the Commission's letter to Shearman &
      Sterling dated July 2, 1993, and similar no-action letters (including, if
      applicable, any no-action letter obtained pursuant to clause (i) above),
      and (2) must comply with the registration and prospectus delivery
      requirements of the Act in connection with a secondary resale transaction
      and that such a secondary resale transaction must be covered by an
      effective registration statement containing the

                                       8
<PAGE>
      selling security holder information required by Item 507 or 508, as
      applicable, of Regulation S-K.

            (iii) Prior to effectiveness of the Exchange Offer Registration
      Statement, the Company and the Guarantors shall provide a supplemental
      letter to the Commission (A) stating that the Company and the Guarantors
      are registering the Exchange Offer in reliance on the position of the
      Commission enunciated in Exxon Capital Holdings Corporation (available May
      13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) as
      interpreted in the Commission's letter to Shearman & Sterling dated July
      2, 1993, and, if applicable, any no-action letter obtained pursuant to
      clause (i) above, (B) including a representation that neither the Company
      nor any Guarantor has entered into any arrangement or understanding with
      any Person to distribute the Exchange Notes to be received in the Exchange
      Offer and that, to the best of the Company's and each Guarantor's
      information and belief, each Holder participating in the Exchange Offer is
      acquiring the Exchange Notes in its ordinary course of business and has no
      arrangement or understanding with any Person to participate in the
      distribution of the Exchange Notes received in the Exchange Offer and (C)
      any other undertaking or representation required by the Commission as set
      forth in any no-action letter obtained pursuant to clause (i) above, if
      applicable.

            (b)   Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company and the Guarantors shall:

            (i)   comply with all the provisions of Section 6(c) below and use
      their respective reasonable best efforts to effect such registration to
      permit the sale of the Transfer Restricted Securities being sold in
      accordance with the intended method or methods of distribution thereof (as
      indicated in the information furnished to the Company pursuant to Section
      4(b) hereof), and pursuant thereto the Company and the Guarantors will
      prepare and file with the Commission a Registration Statement relating to
      the registration on any appropriate form under the Act, which form shall
      be available for the sale of the Transfer Restricted Securities in
      accordance with the intended method or methods of distribution thereof
      within the time periods and otherwise in accordance with the provisions
      hereof, and

            (ii)  issue, upon the request of any Holder or purchaser of Notes
      covered by any Shelf Registration Statement contemplated by this
      Agreement, Exchange Notes having an aggregate principal amount equal to
      the aggregate principal amount of Notes sold pursuant to the Shelf
      Registration Statement and surrendered to the Company for cancellation;
      the Company shall register Exchange Notes on the Shelf Registration
      Statement for this purpose and issue the Exchange Notes to the
      purchaser(s) of securities subject to the Shelf Registration Statement in
      the names as such purchaser(s) shall designate.

            (c)   General Provisions. In connection with any Registration
Statement and any related Prospectus required by this Agreement, the Company and
the Guarantors shall:

                                       9
<PAGE>
            (i)   use their respective reasonable best efforts to keep such
      Registration Statement continuously effective and provide all requisite
      financial statements for the period specified in Section 3 or 4 of this
      Agreement, as applicable. Upon the occurrence of any event that would
      cause any such Registration Statement or the Prospectus contained therein
      (A) to contain an untrue statement of material fact or omit to state any
      material fact necessary to make the statements therein (in light of the
      circumstances under which they were made) not misleading or (B) not to be
      effective and usable for resale of Transfer Restricted Securities during
      the period required by this Agreement, the Company and the Guarantors
      shall file promptly an appropriate amendment to such Registration
      Statement curing such defect, and, if Commission review is required, use
      their respective reasonable best efforts to cause such amendment to be
      declared effective as soon as practicable.

            (ii)  prepare and file with the Commission such amendments and
      post-effective amendments to the applicable Registration Statement as may
      be necessary to keep such Registration Statement effective for the
      applicable period set forth in Section 3 or 4 hereof, as the case may be;
      cause the Prospectus to be supplemented by any required Prospectus
      supplement, and as so supplemented to be filed pursuant to Rule 424 under
      the Act, and to comply fully with Rules 424, 430A and 462, as applicable,
      under the Act in a timely manner; and comply with the provisions of the
      Act with respect to the disposition of all securities covered by such
      Registration Statement during the applicable period in accordance with the
      intended method or methods of distribution by the sellers thereof set
      forth in such Registration Statement or supplement to the Prospectus;

            (iii) with respect to a Shelf Registration Statement, advise each
      selling Holder promptly and, if requested by such selling Holder, confirm
      such advice in writing, (A) when the Prospectus or any Prospectus
      supplement or post-effective amendment has been filed, and, with respect
      to any applicable Registration Statement or any post-effective amendment
      thereto, when the same has become effective, (B) of any request by the
      Commission for amendments to the Registration Statement or amendments or
      supplements to the Prospectus or for additional information relating
      thereto, (C) of the issuance by the Commission of any stop order
      suspending the effectiveness of the Registration Statement under the Act
      or of the suspension by any state securities commission of the
      qualification of the Transfer Restricted Securities for offering or sale
      in any jurisdiction, or the initiation of any proceeding for any of the
      preceding purposes, (D) of the existence of any fact or the happening of
      any event that makes any statement of a material fact made in the
      Registration Statement, the Prospectus, any amendment or supplement
      thereto or any document incorporated by reference therein untrue, or that
      requires the making of any additions to or changes in the Registration
      Statement in order to make the statements therein not misleading, or that
      requires the making of any additions to or changes in the Prospectus in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading. If at any time the Commission
      shall issue any stop order suspending the effectiveness of the
      Registration Statement, or any state securities commission or other
      regulatory authority shall issue an order suspending the qualification or
      exemption from qualification of the Transfer Restricted Securities under
      state securities or Blue Sky laws, the Company and

                                       10
<PAGE>
      the Guarantors shall use their respective reasonable best efforts to
      obtain the withdrawal or lifting of such order at the earliest possible
      time;

            (iv)  subject to Section 6(c)(i), if any fact or event contemplated
      by Section 6(c)(iii)(D) above shall exist or have occurred, prepare a
      supplement or post-effective amendment to the Registration Statement or
      related Prospectus or any document incorporated therein by reference or
      file any other required document so that, as thereafter delivered to the
      purchasers of Transfer Restricted Securities, the Prospectus will not
      contain an untrue statement of a material fact or omit to state any
      material fact necessary to make the statements therein, in the light of
      the circumstances under which they were made, not misleading;

            (v)   furnish to the Purchasers and, with respect to a Shelf
      Registration Statement, each selling Holder named in any Registration
      Statement or Prospectus in connection with such exchange or sale, if any,
      before filing with the Commission, copies of any Registration Statement or
      any Prospectus included therein or any amendments or supplements to any
      such Registration Statement or Prospectus (including all documents
      incorporated by reference after the initial filing of such Registration
      Statement), which documents will be subject to the review and comment of
      such Holders in connection with such sale, if any, for a period of at
      least five Business Days, and the Company will not file any such
      Registration Statement or Prospectus or any amendment or supplement to any
      such Registration Statement or Prospectus (including all such documents
      incorporated by reference) to which such Holders shall reasonably object
      within five Business Days after the receipt thereof. A Holder shall be
      deemed to have reasonably objected to such filing if such Registration
      Statement, amendment, Prospectus or supplement, as applicable, as proposed
      to be filed, contains an untrue statement of a material fact or omits to
      state any material fact necessary to make the statements therein (in light
      of the circumstances under which they were made) not misleading or fails
      to comply with the applicable requirements of the Act;

            (vi)  with respect to a Shelf Registration Statement, promptly prior
      to the filing of any document that is to be incorporated by reference into
      a Registration Statement or Prospectus, provide copies of such document to
      each selling Holder, upon such selling Holder's reasonable request, in
      connection with such exchange or sale, if any;

            (vii) with respect to a Shelf Registration Statement, subject to
      appropriate confidentiality agreements being entered into, make available,
      at reasonable times, for inspection by each selling Holder and any
      attorney or accountant retained by such Holders, all financial and other
      records, pertinent corporate documents of the Company and the Guarantors
      and cause at reasonable times the Company's and the Guarantors' officers,
      directors and employees to supply all information reasonably requested by
      any such Holder, attorney or accountant at reasonable times in connection
      with such Registration Statement or any post-effective amendment thereto
      subsequent to the filing thereof and prior to its effectiveness;

            (viii) with respect to a Shelf Registration Statement, if requested
      by any selling Holders in connection with such sale, promptly include in
      any Registration Statement or

                                       11
<PAGE>
      Prospectus, pursuant to a supplement or post-effective amendment if
      necessary, such information as such Holders may reasonably request to have
      included therein, including, without limitation, information relating to
      the "Plan of Distribution" of the Transfer Restricted Securities; and make
      all required filings of such Prospectus supplement or post-effective
      amendment as soon as reasonably practicable after the Company is notified
      of the matters to be included in such Prospectus supplement or
      post-effective amendment;

            (ix)  with respect to a Shelf Registration Statement, furnish to
      each selling Holder in connection with such exchange or sale, without
      charge, at least one copy of the Registration Statement, as first filed
      with the Commission, and of each amendment thereto, including all
      documents incorporated by reference therein and all exhibits (including
      exhibits incorporated therein by reference);

            (x)   with respect to a Shelf Registration Statement, deliver to
      each Holder, without charge, as many copies of the Prospectus (including
      each preliminary prospectus) and any amendment or supplement thereto as
      such Holder reasonably may request; the Company and the Guarantors hereby
      consent to the use (in accordance with law, rules, regulations and orders)
      of the Prospectus and any amendment or supplement thereto by each selling
      Holder in connection with the public offering and the sale of the Transfer
      Restricted Securities covered by the Prospectus or any amendment or
      supplement thereto;

            (xi)  upon the request of any Holders who collectively hold an
      aggregate principal amount of Notes in excess of 20% of the outstanding
      Transferred Securities (the "REQUESTING HOLDERS") enter into an
      underwriting agreement and make such representations and warranties and
      take all such other actions in connection therewith as may be reasonable
      and customary in underwritten offerings in order to expedite or facilitate
      the disposition of the Transfer Restricted Securities pursuant to any
      applicable Registration Statement contemplated by this Agreement as may be
      reasonably requested by any Requesting Holder in connection with any sale
      or resale pursuant to any applicable Registration Statement. In such
      connection, the Company and the Guarantors shall:

                  (A)   upon request of any Requesting Holder furnish (or in the
            case of paragraphs (2) and (3) below, use their best efforts to
            cause to be furnished) to each Requesting Holder, upon Consummation
            of the Exchange Offer or upon the effectiveness of the Shelf
            Registration Statement, as the case may be:

                        (1)   a certificate, dated such date, signed on behalf
                  of the Company and each Guarantor by (x) the President or any
                  Vice President and (y) a principal financial or accounting
                  officer of the Company, and such Guarantor, confirming, as of
                  the date thereof, the matters set forth in Section 5(e) of the
                  Purchase Agreement and such other similar matters as such
                  Holders may reasonably request;

                        (2)   an opinion, dated the date of Consummation of the
                  Exchange Offer or the date of effectiveness of the Shelf
                  Registration Statement, as the case may be, of counsel for the
                  Company, covering

                                       12
<PAGE>
                  matters similar to those set forth in paragraphs (b), (c) and
                  (d) of Section 5 of the Purchase Agreement and Exhibits A-1,
                  A-2, B and C thereto, subject to the same conditions with
                  respect thereto and to the delivery thereof and such other
                  matter as such Requesting Holder may reasonably request which
                  are customarily covered in Company counsel opinions to
                  underwriters in underwritten public offerings, and in any
                  event including a statement to the effect that such counsel
                  has participated in conferences with officers and other
                  representatives of the Company and the Guarantors,
                  representatives of the independent public accountants for the
                  Company and the Guarantors and have considered the matters
                  required to be stated therein and the statements contained
                  therein, although such counsel has not independently verified
                  the accuracy, completeness or fairness of such statements; and
                  that such counsel advises that, on the basis of the foregoing
                  (relying as to materiality to the extent such counsel deems
                  appropriate upon the statements of officers and other
                  representatives of the Company and the Guarantors) and without
                  independent check or verification), no facts came to such
                  counsel's attention that caused such counsel to believe that
                  the applicable Registration Statement, at the time such
                  Registration Statement or any post-effective amendment thereto
                  became effective and, in the case of the Exchange Offer
                  Registration Statement, as of the date of Consummation of the
                  Exchange Offer, contained an untrue statement of a material
                  fact or omitted to state a material fact required to be stated
                  therein or necessary to make the statements therein not
                  misleading, or that the Prospectus contained in such
                  Registration Statement as of its date and, in the case of the
                  opinion dated the date of Consummation of the Exchange Offer,
                  as of the date of Consummation, contained an untrue statement
                  of a material fact or omitted to state a material fact
                  necessary in order to make the statements therein, in the
                  light of the circumstances under which they were made, not
                  misleading. Without limiting the foregoing, such counsel may
                  state further that such counsel assumes no responsibility for,
                  and has not independently verified, the accuracy, completeness
                  or fairness of the financial statements, notes and schedules
                  and other financial data and statistical data included in any
                  Registration Statement contemplated by this Agreement or the
                  related Prospectus; and

                        (3)   a customary comfort letter, dated the date of
                  Consummation of the Exchange Offer, or as of the date of
                  effectiveness of the Shelf Registration Statement, as the case
                  may be, from the Company's independent accountants specified
                  in the Purchase Agreement, in the customary form and covering
                  matters of the type customarily covered in comfort letters to
                  underwriters in connection with underwritten public offerings,
                  and covering the matters set forth in the comfort letters
                  delivered pursuant to Section 5(a) of the Purchase Agreement
                  subject to the same conditions with respect thereto and to the
                  delivery thereof; and

                                       13
<PAGE>
                  (B)   deliver such other documents and certificates as may be
            reasonably requested by the selling Holders to evidence compliance
            with the matters covered in clause (A) above and with any customary
            conditions contained in the any agreement entered into by the
            Company and the Guarantors pursuant to this clause (xi);

            (xii) prior to any public offering of Transfer Restricted
      Securities, cooperate with the selling Holders and their counsel in
      connection with the registration and qualification of the Transfer
      Restricted Securities under the securities or Blue Sky laws of such
      jurisdictions as the selling Holders may reasonably request and do any and
      all other acts or things necessary or advisable to enable the disposition
      in such jurisdictions of the Transfer Restricted Securities covered by the
      applicable Registration Statement; provided, however, that neither the
      Company nor any Guarantor shall be required to register or qualify as a
      foreign corporation where it is not now so qualified or to take any action
      that would subject it to the service of process in suits or to taxation,
      other than as to matters and transactions relating to the Registration
      Statement, in any jurisdiction where it is not now so subject;

            (xiii) in connection with any sale of Transfer Restricted Securities
      that will result in such securities no longer being Transfer Restricted
      Securities, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Transfer Restricted
      Securities to be sold and not bearing any restrictive legends; and to
      register such Transfer Restricted Securities in such denominations and
      such names as the selling Holders may request at least two Business Days
      prior to any sale of such Transfer Restricted Securities;

            (xiv) use their respective best efforts to cause the disposition of
      the Transfer Restricted Securities covered by the Registration Statement
      to be registered with or approved by such other governmental agencies or
      authorities as may be necessary to enable the seller or sellers thereof to
      consummate the disposition of such Transfer Restricted Securities, subject
      to the proviso contained in clause (xii) above;

            (xv)  provide a CUSIP number for all Transfer Restricted Securities
      not later than the effective date of a Registration Statement covering
      such Transfer Restricted Securities and provide the Trustee under the
      Indenture with certificates for the Transfer Restricted Securities which
      are in a form eligible for deposit with The Depository Trust Company;

            (xvi) otherwise use their respective reasonable best efforts to
      comply with all applicable rules and regulations of the Commission, and
      make generally available to its security holders with regard to any
      applicable Registration Statement, as soon as practicable, a consolidated
      earnings statement meeting the requirements of Rule 158 (which need not be
      audited) covering a twelve-month period beginning after the effective date
      of the Registration Statement (as such term is defined in paragraph (c) of
      Rule 158 under the Act);

                                       14
<PAGE>
            (xvii) cause the Indenture to be qualified under the TIA not later
      than the effective date of the first Registration Statement required by
      this Agreement and, in connection therewith, cooperate with the Trustee to
      effect such changes to the Indenture as may be required for such Indenture
      to be so qualified in accordance with the terms of the TIA; and execute
      and use its best efforts to cause the Trustee to execute, all documents
      that may be required to effect such changes and all other forms and
      documents required to be filed with the Commission to enable such
      Indenture to be so qualified in a timely manner;

            (xviii) provide promptly to each Holder, upon request, each document
      filed with the Commission pursuant to the requirements of Section 13 or
      Section 15(d) of the Exchange Act if not obtainable from the Commission;
      and

            (xix) the Company and the Guarantors will be deemed not to have used
      their reasonable best efforts to cause the Exchange Offer Registration
      Statement or the Shelf Registration Statement, as the case may be, to
      become, or to remain, effective during the requisite period if the Company
      or any of the Guarantors voluntarily and knowingly takes any action that
      would, or omits to take any action which omission would, result in any
      such Registration Statement not being declared effective or in the Holders
      of Registrable Securities covered thereby not being able to exchange or
      offer and sell such Registrable Securities during that period as and to
      the extent contemplated hereby, unless (i) such action is required by
      applicable law or (ii) such action is taken by the Company and the
      Guarantors in good faith and for valid business reasons (but not including
      avoidance of the Company's or the Guarantors', as applicable, obligations
      hereunder), including a material corporate transaction, so long as the
      Company and the Guarantors promptly comply with the requirements of
      Section 6(c)(iv) thereof, if applicable.

            (d)   Restrictions on Selling Holders. With respect to a Shelf
Registration Statement, each selling Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of the notice referred to in Section
6(c)(iii)(C) or any notice from the Company of the existence of any fact or the
happening of any event of the kind described in Section 6(c)(iii)(D) hereof, or
upon receipt of a notice from the Company pending the announcement of a material
corporate transaction that the Shelf Registration Statement is unusable (in each
case, a "SUSPENSION NOTICE"), such Holder will forthwith discontinue disposition
of Transfer Restricted Securities pursuant to the applicable Registration
Statement until (i) such selling Holder has received copies of the supplemented
or amended Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such
selling Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the "RECOMMENCEMENT DATE"). Each Holder receiving a Suspension Notice
hereby agrees that it will either (i) destroy any Prospectuses, other than
permanent file copies, then in such Holder's possession which have been replaced
by the Company with more recently dated Prospectuses or (ii) deliver to the
Company (at the Company's expense) all copies, other than permanent file copies,
then in such Holder's possession of the Prospectus covering such Transfer
Restricted Securities that was current at the time of receipt of the Suspension
Notice. The time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended
by a number of days equal to the number of days in the period from and

                                       15
<PAGE>
including the date of delivery of the Suspension Notice to the date of delivery
of the Recommencement Date.

            Section 7. Registration Expenses. (a) All expenses incident to the
Company's and the Guarantors' performance of or compliance with this Agreement
will be borne, jointly and severally, by the Company and the Guarantors,
regardless of whether a Registration Statement becomes effective, including
without limitation: (i) all registration and filing fees and expenses; (ii) all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (iii) all expenses of printing (including printing certificates
for the Exchange Notes to be issued in the Exchange Offer and printing of
Prospectuses), messenger and delivery services and telephone; (iv) all fees and
disbursements of counsel for the Company and the Guarantors and, subject to
Section 7(b) below, one counsel for the Holders of Transfer Restricted
Securities chosen by the Holders of a majority of the outstanding Transfer
Restricted Securities; (v) all application and filing fees in connection with
listing the Exchange Notes on a national securities exchange or automated
quotation system pursuant to the requirements hereof; and (vi) all fees and
disbursements of independent certified public accountants of the Company and the
Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

            The Company will, in any event, bear its and the Guarantors'
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), the expenses
of any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.

            (b)   In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company and the Guarantors
will reimburse the Purchasers and the Holders of Transfer Restricted Securities
who are tendering Notes into the Exchange Offer and/or selling or reselling
Notes or Exchange Notes pursuant to the "Plan of Distribution" contained in the
Exchange Offer Registration Statement or the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one
counsel, who shall be Shearman & Sterling unless another firm shall be chosen by
the Holders of a majority in principal amount of the Transfer Restricted
Securities for whose benefit such Registration Statement is being prepared.

            Section 8. Indemnification. (a) The Company and the Guarantors
agree, jointly and severally, to indemnify and hold harmless each Holder, its
directors, officers, any underwriter in any underwritten public offering of
Transfer Restricted Securities pursuant to a Shelf Registration Statement and
each Person, if any, who controls such Holder or underwriter (within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act), from and against
(i) any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue

                                       16
<PAGE>
statement of a material fact contained in any Registration Statement (or any
amendment or supplement thereto) pursuant to which Transfer Restricted
Securities are registered under the Act, including all documents incorporated
therein by reference, or the omission or alleged omission therefrom of a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading or arising out of any untrue statement or alleged untrue statement of
a material fact contained in any Prospectus (or any amendment or supplement
thereto) or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; (ii) any and all loss,
liability, claim, damage and expense whatsoever, as incurred, to the extent of
the aggregate amount paid in settlement of any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any
such alleged untrue statement or omission, provided that (subject to Section
8(d) below) any such settlement is effected with the written consent of the
Company and the Guarantors; and (iii) any and all expenses whatsoever, as
incurred (including the fees and disbursements of counsel chosen by any
indemnified party, subject to the limitations in Section 8(c) below), reasonably
incurred in investigating, preparing or defending against any litigation or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above; provided,
however, that this indemnity agreement shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information furnished to the Company and the Guarantors
by the Purchasers, such Holder or such underwriter expressly for use in a
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto); provided, further, that the Company will not
be liable to any Purchaser, Holder (in its capacity as Holder) or underwriter
(or any person who controls such party within the meaning of Section 15 of the
Act or Section 20 of the Exchange Act) with respect to any such untrue statement
or alleged untrue statement or omission or alleged omission made in any
preliminary Prospectus to the extent that the Company shall sustain the burden
of proving that any such loss, liability, claim, damage or expense resulted from
the fact that such Purchaser, Holder (in its capacity as Holder) or underwriter,
as the case may be, sold Transfer Restricted Securities to a Person to whom such
Purchaser, Holder (in its capacity as Holder) or underwriter, as the case may
be, failed to send or give, at or prior to the written confirmation of the sale
of such Securities a copy of the final Prospectus (as amended or supplemented)
if the Company has previously furnished copies thereof (sufficiently in advance
of the closing of such sale to allow for distribution of the final Prospectus in
a timely manner) to such Purchaser, Holder (in its capacity as Holder) or
underwriter, as the case may be, and the loss, liability, claim, damage or
expense of such Purchaser, Holder (in its capacity as Holder) or underwriter, as
the case may be, resulted solely from an untrue statement or omission or alleged
untrue statement or omission of a material fact contained in or omitted from
such preliminary Prospectus which was corrected in the final Prospectus.

            (b)   Each Holder of Transfer Restricted Securities agrees,
severally and not jointly, to indemnify and hold harmless the Company and the
Guarantors, and their respective directors and officers, and each person, if
any, who controls (within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act) the Company, or the Guarantors to the same extent as the
foregoing indemnity from the Company and the Guarantors set forth in section (a)
above, but only with reference to information relating to such Holder furnished
in writing to the Company by such Holder expressly for use in any Registration
Statement. In no event shall any Holder, its directors, officers or any Person
who controls such Holder be liable or responsible for any amount in excess of
the amount by which the total amount received by such Holder with respect

                                       17
<PAGE>
to its sale of Transfer Restricted Securities pursuant to a Registration
Statement exceeds (i) the amount paid by such Holder for such Transfer
Restricted Securities and (ii) the amount of any damages that such Holder, its
directors, officers or any Person who controls such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.

            (c)   In case any action shall be commenced involving any person in
respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING person") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 8(a) and 8(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 8(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party within a reasonable period of time after notification by the
indemnified party or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised by such counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the indemnifying party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses shall be reimbursed
promptly following receipt of invoice therefor as they are incurred. Such firm
shall be designated in writing by a majority of the Holders, in the case of the
parties indemnified pursuant to Section 8(a), and by the Company and Guarantors,
in the case of parties indemnified pursuant to Section 8(b). The indemnifying
party under this Section 8 shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final non-appealable judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss,
claim, damage, liability or expense by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by Section 8(c) hereof, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the final terms of such proposed settlement as soon as practicable prior to such
settlement being entered into and (iii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the
date of such

                                       18
<PAGE>
settlement. No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement, compromise or consent to the entry
of judgment in any pending or threatened action, suit or proceeding in respect
of which any indemnified party is or could have been a party and indemnity was
or could have been sought hereunder by such indemnified party, unless such
settlement, compromise or consent includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of
such action, suit or proceeding.

            (d)   To the extent that the indemnification provided for in this
Section 8 is unavailable to an indemnified party in respect of any losses,
claims, damages, liabilities or judgments referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and
the Guarantors, on the one hand, and the Holders, on the other hand, from their
sale of Transfer Restricted Securities or (ii) if the allocation provided by
clause 8(d)(i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause
8(d)(i) above but also the relative fault of the Company and the Guarantors, on
the one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors, on the one
hand, and of the Holder, on the other hand, shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or such Guarantor, on the one hand, or by
the Holder, on the other hand, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and judgments referred to above shall be deemed to
include, subject to the limitations set forth in the third sentence of Section
8(c), any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim.

            The Company, the Guarantors and each Holder agree that it would not
be just and equitable if contribution pursuant to this Section 8(d) were
determined by pro rata allocation (even if the Holders were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities or judgments referred to in
the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any matter,
including any action that could have given rise to such losses, claims, damages,
liabilities or judgments. Notwithstanding the provisions of this Section 8, no
Holder, its directors, its officers or any Person, if any, who controls such
Holder shall be required to contribute, in the aggregate, any amount in excess
of the amount by which the total received by such Holder with respect to the
sale of Transfer Restricted Securities pursuant to a Registration Statement
exceeds (i) the amount paid by such Holder for such Transfer Restricted
Securities and (ii) the amount of any damages which such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No

                                       19
<PAGE>
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Holders' obligations to
contribute pursuant to this Section 8(d) are several in proportion to the
respective principal amount of Transfer Restricted Securities held by each
Holder hereunder and not joint.

            Section 9. Rule 144A and Rule 144. The Company and each Guarantor
agree with each Holder, for so long as any Transfer Restricted Securities remain
outstanding and during any period in which the Company (i) is not subject to
Section 13 or 15(d) of the Exchange Act, to make available, upon written request
of any Holder, to such Holder or beneficial owner of Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of
such Transfer Restricted Securities designated by such Holder or beneficial
owner, the information required by Rule 144A(d)(4) under the Act in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144A, and
(ii) is subject to Section 13 or 15 (d) of the Exchange Act, to make all filings
required thereby in a timely manner in order to permit resales of such Transfer
Restricted Securities pursuant to Rule 144.

            Section 10. Miscellaneous. (a) Remedies. The Company and the
Guarantors acknowledge and agree that any failure by the Company and/or the
Guarantors to comply with their respective obligations under Sections 3 and 4
hereof may result in material irreparable injury to the Purchasers or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, any Purchaser or any Holder may obtain such relief as may
be required to specifically enforce the Company's and the Guarantors'
obligations under Sections 3 and 4 hereof. The Company and the Guarantors
further agree to waive the defense in any action for specific performance that a
remedy at law would be adequate.

            (b)   No Inconsistent Agreements. None of the Company or the
Guarantors will, on or after the date of this Agreement, enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof. None of the Company or the Guarantors has previously entered
into any agreement granting any registration rights with respect to its
securities to any Person. The rights granted to the Holders hereunder do not in
any way conflict with and are not inconsistent with the rights granted to the
holders of the Company's or the Guarantors' securities under any agreement in
effect on the date hereof.

            (c)   Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless (i) in the case of
Section 5 hereof and this Section 10(c)(i), the Company has obtained the written
consent of Holders of all outstanding Transfer Restricted Securities and (ii) in
the case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose Transfer Restricted Securities are being tendered pursuant to

                                       20
<PAGE>
the Exchange Offer, and that does not affect directly or indirectly the rights
of other Holders whose Transfer Restricted Securities are not being tendered
pursuant to such Exchange Offer, may be given by the Holders of a majority of
the outstanding principal amount of Transfer Restricted Securities subject to
such Exchange Offer.

            (d)   Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Purchasers, on the other hand, and shall
have the right to enforce such agreements directly to the extent they may deem
such enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder.

            (e)   Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), facsimile, or air courier
guaranteeing overnight delivery:

            (1)   if to a Holder, at the address set forth on the records of the
      Registrar under the Indenture, with a copy to the Registrar under the
      Indenture; and

            (2)   (i)   If to the Company or any Guarantor:

                        InSight Health Services Corp.
                        4400 MacArthur Blvd.
                        Suite 800
                        Newport Beach, CA  92660
                        Facsimile: 949-476-8006
                        Attention: Chief Financial Officer

                        with copies to:

                        InSight Health Services Corp.
                        4400 MacArthur Blvd.
                        Suite 800
                        Newport Beach, CA  92660
                        Facsimile: 949-476-0137
                        Attention: General Counsel

                        and to:

                        J.W. Childs Associates, L.P.
                        One Federal Street
                        21st Floor
                        Boston, MA  02110
                        Facsimile: 617-753-1101
                        Attention: Edward D. Yun

                        and to:

                                       21
<PAGE>
                        The Halifax Group, L.L.C.
                        1133 Connecticut Avenue N.W.
                        Suite 700
                        Washington, D.C.  20036
                        Facsimile: 202-296-7133
                        Attention: David W. Dupree

                        and to:

                        Kaye Scholer LLP
                        245 Park Avenue
                        New York, NY 10022
                        Facsimile: 212-836-8689
                        Attention: Stephen C. Koval, Esq.

            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when receipt acknowledged, if by facsimile; and on the next business day, if
timely delivered to an air courier guaranteeing overnight delivery.

            Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

            (f)   Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Securities in violation of the terms hereof or of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Transfer Restricted
Securities in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Securities such
Person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement, including the restrictions on
resale set forth in this Agreement and, if applicable, the Purchase Agreement,
and such Person shall be entitled to receive the benefits hereof.

            (g)   Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            (h)   Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

            (i)   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICT OF LAW RULES THEREOF.

                                       22
<PAGE>
            (j)   Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

            (k)   Entire Agreement. This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted with respect to the
Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter.

                                       23
<PAGE>
                                      OPEN MRI, INC.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      MAXUM HEALTH CORP.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      RADIOSURGERY CENTERS, INC.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      MAXUM HEALTH SERVICES CORP.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      MRI ASSOCIATES, L.P.

                                      By: InSight Health Corp.,
                                          its General Partner

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                       25
<PAGE>
                                      MAXUM HEALTH SERVICES OF NORTH
                                      TEXAS, INC.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      MAXUM HEALTH SERVICES OF DALLAS,
                                      INC.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      NDDC, INC.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      DIAGNOSTIC SOLUTIONS CORP.

                                      By: /s/ Mark J. Tricolli
                                          ----------------------------
                                          Name: Mark J. Tricolli
                                          Title: Authorized Person

                                      BANC OF AMERICA SECURITIES LLC

                                      By: /s/ Raymond Cubero
                                          ----------------------------
                                          Name: Raymond Cubero
                                          Title: Managing Director

                                      FIRST UNION SECURITIES, INC.

                                      By: /s/ Jeff Gore
                                          ----------------------------
                                          Name: Jeff Gore
                                          Title: Vice President

                                       26
<PAGE>
                                                                      SCHEDULE A

                              SUBSIDIARY GUARANTORS

                                   GUARANTORS

<TABLE>
<CAPTION>
Guarantor                                       Jurisdiction of Organization
---------                                       ----------------------------
<S>                                             <C>
InSight Health Corp.                                    Delaware

Signal Medical Services, Inc.                           Delaware

Open MRI, Inc.                                          Delaware

Maxum Health Corp.                                      Delaware

Radiosurgery Centers, Inc.                              Delaware

Maxum Health Services Corp.                             Delaware

MRI Associates, L.P.                                    Indiana

Maxum Health Services of North Texas, Inc.              Texas

Maxum Health Services of Dallas, Inc.                   Texas

NDDC, Inc.                                              Texas

Diagnostic Solutions Corp.                              Delaware
</TABLE>

                                       27

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