Document:

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                                 EXECUTION COPY

                              AMENDED AND RESTATED
                             STOCKHOLDERS' AGREEMENT

                             DATED AS OF MAY 2, 1995

                                  BY AND AMONG

                            AMERICHOICE CORPORATION,
                                THE NEW INVESTORS
                                       AND
                        EACH OF THE EXISTING STOCKHOLDERS

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                                TABLE OF CONTENTS

SECTION 1.  Definitions........................................................2

SECTION 2.  Restrictions on Transfer...........................................9
(a)        General Restricted Transfers.......................................10
(b)        Restrictive Legends................................................10
(c)        Notice of Proposed Transfer........................................10
(d)        Non-Applicability of Restrictions on Transfer......................11
(e)        Prohibited Transfers...............................................11
(f)        Termination of Restrictions........................................11

SECTION 3.  Right of First Refusal............................................11
(a)        Offer of Stock.....................................................11
(b)        Terms of Offer.....................................................12
(c)        Purchase by Company................................................12
(d)        Purchase by Stockholders...........................................12
(e)        Closing............................................................13
(f)        Rejection of Right of First Refusal................................13
(g)        Continued Effect of Restrictions...................................13

SECTION 4.  Change of Control.................................................14
(a)        Purchase of Stock..................................................14
(b)        Adjustment to Fair Market Value....................................14

SECTION 5.  Take-Along Rights.................................................15
(a)        Right to Sell......................................................15
(b)        Take-Along Notice..................................................15
(c)        Closing............................................................15
(d)        Waiver of Take-Along Right.........................................15

SECTION 6.  Registration Rights...............................................16
(a)        Required Registrations.............................................16
(b)        Incidental Registration............................................18
(c)        Registration Procedures............................................18
(d)        Expenses...........................................................20
(e)        Indemnification....................................................21
(f)        Participation in Underwritten Registrations........................24
(g)        Marketing Restrictions.............................................24
(h)        Sale of Preferred Stock to Underwriter.............................27
(i)        Grant of Subsequent Registration Rights............................27
(j)        Transfer of Registration Rights....................................27

SECTION 7.  Voting Agreement..................................................28
(a)        The Voting Agreement...............................................28
(b)        Board of Directors Designees.......................................28
(i)        CLE Designees......................................................28

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(ii)       Lomax Designees....................................................28
(iii)      New Investor Designee..............................................28
(iv)       Duggin Designee....................................................29
(v)        Rios Designee......................................................29
(vi)       Sweely Designee....................................................29
(c)        Best Efforts to Elect Board of Directors Designees.................29
(d)        Removal of Designees...............................................30
(e)        Board of Directors Vacancies.......................................30
(f)        Committee Designees................................................30
(i)        Audit Committee....................................................30
(ii)       Compensation Committee.............................................30
(iii)      Executive Committee................................................31
(g)        Best Efforts to Appoint Committee Designees........................31
(h)        Management Company Designees.......................................31

SECTION 8. Covenants of the Company...........................................32
(a)        Corporate Existence and Licenses...................................32
(b)        Independent Public Accountants.....................................32
(c)        Payment of Taxes; Maintenance of Properties........................32
(d)        Insurance..........................................................33
(e)        Payment of Indebtedness, etc.......................................34
(f)        Financial Statements and Information...............................34
(i)        Annual Budget......................................................34
(ii)       Monthly Financial Statements and Reports...........................35
(iii)      Quarterly Financial Statements and Reports.........................35
(iv)       Annual Financial Statements and Reports............................35
(v)        Reports of Auditors................................................35
(vi)       Additional Information.............................................35
(vii)      Certificate of Independent Public Accountants......................36
(g)        Discussion and Inspection Rights...................................36
(h)        Tax Treatment of Dividends.........................................36
(i)        Notice of Claimed Default or Deficiency............................37
(j)        Attendance at Board of Directors Meetings..........................38
(k)        Blue Sky...........................................................38
(l)        Compliance with Laws...............................................38
(m)        Filing of Commission Reports; Rule 144 Requirements................38
(n)        Transactions with Affiliates.......................................39
(o)        Subsidiaries.......................................................39
(p)        Expenditures.......................................................39
(q)        Maintenance of Contracts...........................................39
(r)        Disposal of Assets.................................................39

SECTION 9.  Options...........................................................40

SECTION 10.  Amendment and Termination........................................41

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SECTION 11.  Indemnification; Contribution....................................42

SECTION 12.  Miscellaneous Provisions.........................................43
(a)        Binding Effect.....................................................43
(b)        Additional Shares..................................................44
(c)        Notices............................................................44
(d)        Governing Law......................................................45
(e)        Entire Agreement...................................................45
(f)        Headings...........................................................45
(g)        Severability.......................................................46
(h)        Execution of Counterparts..........................................46
(i)        Waiver.............................................................46

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                             AMENDED AND RESTATED
                           STOCKHOLDERS' AGREEMENT

         THIS AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT ("AGREEMENT") is
made and entered into this 2nd day of May, 1995 by and among AMERICHOICE
CORPORATION, a Delaware corporation (the "COMPANY"), CLE, Inc., a Nevada
corporation ("CLE"), ANTHONY WELTERS and BEATRICE WELTERS, as tenants in
common ("WELTERS"), AW FAMILY LIMITED PARTNERSHIP, EDGAR RIOS AS TRUSTEE FOR
BRYANT A. WELTERS, EDGAR RIOS AS TRUSTEE FOR ANDREW V. WELTERS, EDGAR RIOS AS
TRUSTEE FOR TIFFANY DUGGIN, EDGAR RIOS AS TRUSTEE FOR JULIAN V. DUGGIN, EDGAR
RIOS ("RIOS"), EGR FAMILY LIMITED PARTNERSHIP, JESS E. SWEELY ("SWEELY"),
SWEELY HOLDINGS, L.L.C., ANDRE DUGGIN, ("DUGGIN"), WALTER P. LOMAX, JR.
("LOMAX"), for himself and as Guardian for Bennett Lomax, WALTER THOMAS LOMAX,
CHARLES LOMAX, LAURA GAINES, SARA LOMAX REESE, MARY CLAIRE LOMAX, MELLON BANK,
N.A., TRUSTEE FOR FIRST PLAZA GROUP TRUST ("FIRST PLAZA"), and ADVENT VI L.P.,
ADVENT VII L.P., ADVENT ATLANTIC AND PACIFIC II L.P., CHESTNUT CAPITAL
INTERNATIONAL III LIMITED PARTNERSHIP, ADVENT NEW YORK L.P., ADVENT INDUSTRIAL
II L.P. and TA VENTURE INVESTORS LIMITED PARTNERSHIP (collectively, "TA
INVESTORS" and together with First Plaza, the "NEW INVESTORS").

                             W I T N E S S E T H:

         WHEREAS, on December 30, 1994, the Existing Stockholders and the
Company entered into the Existing Stockholders' Agreement, to provide for the
disposition of the shares of Stock and to make certain other arrangements with
respect to the Company; and

         WHEREAS, pursuant to that certain Stock Purchase Agreement, dated the
date hereof, by and among the parties hereto (the "STOCK PURCHASE AGREEMENT"),
the New Investors have agreed to purchase, and the Company and the Existing
Stockholders have agreed to sell, an aggregate of 15,484 shares of Series A
Common Stock; and

         WHEREAS, the Stockholders and the Company consider it in their mutual
and beneficial interests to amend the Stockholders' Agreement and provide the
New Investors certain rights regarding the shares of Common Stock acquired in
the Stock Purchase Agreement and to provide certain other arrangements with
respect to the New Investors' relationship with the Company and the Existing
Stockholders; and

         WHEREAS, the Existing Stockholders, the Company and the New Investors
have agreed to amend and restate the agreements contained in the Existing
Stockholders'

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Agreement on the terms provided herein and to make certain other agreements with
respect to the Company.

                              A G R E E M E N T

         NOW, THEREFORE, in consideration of the mutual covenants and
agreements of the parties hereto, it is mutually agreed by and among the
Stockholders and the Company as follows:

SECTION 1.  DEFINITIONS

         Unless otherwise expressly provided, the following terms, when used in
this Agreement, shall be defined as follows:

         (a)      An "AFFILIATE" of, or Person "AFFILIATED" with, a specified
Person, is a Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with,
the Person specified, it being deemed for purposes of this definition of
Affiliate as used in this Agreement that all of the New Investors are Affiliates
of one another.

         (b)      The term "ANNUAL BUDGET" shall mean an annual operating plan
summary and corresponding budget for the Company, which shall be approved by the
Board of Directors and subject to revision or updating by the Board of
Directors.

         (c)      The term "AUDIT COMMITTEE" shall mean the Audit Committee of
the Board of Directors. The Audit Committee is empowered to (i) recommend
independent auditors, (ii) review with the independent auditors the scope and
results of the audit engagement, (iii) monitor the Company's financial policies,
activities of the Company's internal audit department and control procedures and
(iv) review and monitor the provision of non-audit services by the Company's
auditors.

         (d)      The term "AVAILABLE INCOME" shall mean the net income (after
the deduction of operating expenses, interest, applicable taxes and all other
expenses, including extraordinary expenses) of the Company for such fiscal year
determined in accordance with generally accepted accounting principles,
consistently applied, less the dividends paid or payable (including dividends in
arrears) with respect to the shares of the Company's Preferred Stock outstanding
at the end of such fiscal year.

         (e)      The term "BOARD OF DIRECTORS" shall mean the Board of
Directors of the Company.

         (f)      The term "BY-LAWS" shall mean the By-laws of the Company as
amended or restated from time to time.

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         (g)      The term "CERTIFICATE OF INCORPORATION" shall mean the
Certificate of Incorporation of the Company as amended or restated from time to
time.

         (h)      The term "CHANGE-IN-CONTROL TRANSACTION" shall mean any
transaction or series of related transactions occurring after the Effective
Date, whether involving the Company or the holders of any class or series of its
Stock, resulting in any Person together with its Affiliates, or group of Persons
together with their Affiliates acting in concert, who were not as of the date
hereof the holder or holders of Voting Stock acquiring the power, or record
ownership of sufficient shares of Voting Stock, to cast more than a majority of
the votes which may be cast for the election of members of the Board of
Directors. For the purpose of this definition, Voting Stock shall include
instruments or Securities issued in such transaction which are convertible into
or exchangeable or exercisable for Voting Stock as being so converted, exchanged
or exercised upon issuance, regardless of the terms thereof.

         (i)      The term "CLE" shall have the meaning provided in the Recitals
to this Agreement.

         (j)      The term "CLE DESIGNEES" shall have the meaning provided in
Section 7(b).

         (k)      The term "CODE" shall mean the Internal Revenue Code of 1986,
as amended.

         (l)      The term "COMMON STOCK" shall mean all the shares of each
series of common stock, $.01 par value, of the Company issued and outstanding at
any time during the term of this Agreement, and, insofar as it applies to a
Stockholder, shall also include the community interest in such stock, if any, of
the Stockholder's Spouse.

         (m)      The term "COMPANY" shall have the meaning provided in the
Recitals to this Agreement.

         (n)      The term "COMPANY PURCHASE PERIOD" shall have the meaning
provided in Section 3(c).

         (o)      The term "COMPENSATION COMMITTEE" shall mean the Compensation
Committee of the Board of Directors. The Compensation Committee is empowered to
recommend to the Board of Directors compensation for the officers and executives
(including salary and other benefits) of the Company.

         (p)      The term "CONTRACTS" shall mean all instruments, contracts,
agreements, arrangements and understandings which are necessary for the
operation of the business of the Company.

         (q)      The term "CONTROLLING PERSON" shall have the meaning provided
in Section 11(a).

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         (r) The term "CONVERSION STOCK" shall mean shares of common stock of
the Company into which Preferred Stock held by a Stockholder is convertible.

         (s) The term "CONVERTIBLE SECURITIES" shall mean evidences of
Indebtedness, shares of Stock or other Securities which are or may at any time
be convertible into, or exchangeable for, additional shares of Common Stock or
other Securities which are convertible into or exchangeable for additional
shares of Common Stock. The term "Convertible Security" shall mean one of the
Convertible Securities.

         (t) The term "CURRENT ENROLLEES" shall mean the then current number of
enrollees in the prepaid healthcare service plans operated by the Company's
Subsidiaries determined by reference to the Company's most recent operating
reports to regulatory authorities.

         (u) The term "DISPOSITION" shall mean any sale, assignment, gift,
transfer, pledge, mortgage or other encumbrance, or any other disposition of
shares of Common Stock whatsoever, whether voluntary or involuntary.

         (v)      The term "DUFF & PHELPS" shall mean Duff & Phelps Financial
Consulting Co., or any successor entity which performs corporate valuation
services.

         (w)      The term "DUGGIN" shall have the meaning provided in the
Recitals to this Agreement.

         (x)      The term "DUGGIN DESIGNEE" shall have the meaning provided
in Section 7(b)(iv).

         (y)      The term "EFFECTIVE DATE" shall mean the date of execution
of this Agreement.

         (z)      The term "EXCHANGE ACT" shall mean the Securities and Exchange
Act of 1934, as amended.

         (aa)     The term "EXECUTIVE COMMITTEE" shall mean the Executive
Committee of the Board of Directors. The Executive Committee has and may
exercise all the authority of the Board of Directors as permitted by law.

         (ab)     The term "EXISTING STOCKHOLDERS'" shall mean CLE, Welters,
Rios, Sweely, Duggin, Lomax, Beatrice Welters, the AW Family Limited
Partnership, Edgar Rios as Trustee for Bryant A. Welters, Edgar Rios as Trustee
for Andrew V. Welters, the EGR Family Limited Partnership, Sweely Holdings,
L.L.C., Walter Thomas Lomax, Charles Lomax, Laura Gaines and Sara Lomax Reese.

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         (ac)     The term "EXISTING STOCKHOLDERS' AGREEMENT" shall mean the
Stockholders' Agreement, dated December 30, 1994, by and among the Existing
Stockholders and the Company.

         (ad)     The term "FAIR MARKET VALUE" shall mean the purchase price per
share equal to the quotient obtained by dividing the Formula Price by the number
of shares of Fully-Diluted Common Stock then existing.

         (ae)     The term "FAMILY DONEE" with respect to a Stockholder shall
mean:

                  (i)      any parent, child, descendant, or sibling of the
         Stockholder, the spouse of any of the foregoing, or the Stockholder's
         Spouse;

                  (ii)     any trust established by the Stockholder, or any
         trustee, custodian, fiduciary, or foundation which will hold the shares
         of Common Stock for charitable purposes or for the benefit of the
         Stockholder or any of the Persons included within the definition of
         Family Donee; and

                  (iii)    any committees, guardians, or other legal
         representatives of the Stockholders (whether alive or deceased) or of
         any of the Persons included within the definition of Family Donee.

         (af)     The term "FIRST PLAZA" shall have the meaning provided in the
Recitals hereto.

         (ag)     The term "FORMULA PRICE" shall mean the Per Enrollee Value
multiplied by the number of Current Enrollees, subject to adjustment as provided
in Section 4(b) hereof.

         (ah)     The term "FULLY-DILUTED COMMON STOCK" shall mean, as of any
date of determination, all of the then issued and outstanding shares of Common
Stock assuming the exercise of all issued and outstanding options exercisable
for Common Stock, and the conversion into shares of Common Stock of all
outstanding Convertible Securities; provided, however, that the number of shares
of Fully-Diluted Common Stock at any time shall not include any shares of Common
Stock then owned by the Company, and provided, further, that the number of
shares of Fully-Diluted Common Stock for purposes of Section 5 hereof shall not
include any shares of Common Stock issuable upon the exercise, conversion or
exchange of any Conversion Stock or Convertible Securities which is not at such
time then exercisable, convertible or exchangeable.

         (ai)     The term "INITIAL PUBLIC OFFERING" shall mean the first
Registration Statement filed by the Company covering a public offering of Common
Stock by the Company under the Securities Act.

         (aj)     The term "INDEBTEDNESS" shall mean the principal of (and
premium, if any) and unpaid interest on:

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                  (i)      indebtedness resulting from money borrowed from
         Persons other than Stockholders and their Affiliates;

                  (ii)     indebtedness guaranteed, directly or indirectly, in
         any manner by such corporation, or in effect guaranteed, directly or
         indirectly, by the Company through an agreement, contingent or
         otherwise, to supply funds to or in any manner invest in the debtor or
         to purchase indebtedness, or to purchase Property or services primarily
         for the purpose of enabling the debtor to make payment of the
         indebtedness or of assuring the owner of the indebtedness against loss;

                  (iii)    all indebtedness secured by any mortgage, lien,
         pledge, charge or other encumbrance upon Property owned by such
         obligor, even if such obligor has not in any manner become liable for
         the payment of such indebtedness;

                  (iv)     all indebtedness of such obligor created or arising
         under any conditional sale, lease or other title retention agreement
         with respect to Property acquired by such obligor even though the
         rights and remedies of the seller, lessor or lender under such
         agreement or lease in the event of default are limited to repossession
         or sale of such Property and provided that obligations for the payment
         of rent under a lease of premises from which the business of such
         corporation will be conducted shall not constitute indebtedness; and

                  (v)      renewals, extensions and refundings of any such
         indebtedness.

         (ak)     The term "INDEMNIFIED INVESTOR" shall have the meaning
provided in Section 11(a).

         (al)     The term "LOMAX" shall have the meaning provided in the
Recitals hereto.

         (am)     The term "LOMAX DESIGNEES" shall have the meaning provided in
Section 7(b)(ii).

         (an)     The term "NEW INVESTORS" shall have the meaning provided in
the Recitals.

         (ao)     The term "NEW INVESTORS DESIGNEE" shall have the meaning
provided in Section 7(b)(iii).

         (ap)     "NEW INVESTORS NEW STOCK" shall have the meaning provided in
Section 9(a).

         (aq)     The term "NEW STOCK" shall mean any equity securities of the
Company, any warrants, options or rights to purchase equity securities of the
Company and any securities of any type that are convertible or exchangeable,
directly or indirectly, for equity securities of the Company, in each case
issued after the Effective Date.

         (ar)     The term "OFFER" shall have the meaning provided in Section
3(a).

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         (as)     The term "OFFER NoTice" shall have the meaning provided in
Section 3(a).

         (at)     The term "OFFERED SHARES" shall have the meaning provided in
Section 3(a).

         (au)     The term "PER ENROLLEE VALUE" shall mean $1,000, subject to
adjustment as provided in Section 4(b).

         (av)     The term "PERMITTED TRANSFEREE" shall mean a Disposition of a
Stockholder's Common Stock or Preferred Stock, to any one or more of the
Stockholder Affiliates or Family Donees, including without limitation, trusts,
partnerships and limited liability companies; provided that such transferee
remains subject to the terms of this Agreement.

         (aw)     The term "PERSON" shall mean any individual, corporation,
partnership, limited partnership, association, business trust, limited liability
company, limited liability partnership, joint venture, joint stock company,
trust, unincorporated association or other entity of whatever nature.

         (ax)     The term "PREFERRED STOCK" shall mean all the shares of
preferred stock, $.01 per share, of the Company issued and outstanding at any
time during the term of this Agreement, and, insofar as it applies to a
Stockholder, shall also include the community interest in such stock, if any, of
the Stockholder's Spouse.

         (ay)     The term "PROPERTY" shall mean any kind of property or assets,
whether real, personal or mixed, or tangible or intangible.

         (az)     The term "PROSPECTUS" shall mean any prospectus which is a
part of a Registration Statement, together with all amendments or supplements
thereto.

         (ba)     The term "PROTECTED NUMBER" shall mean for each Stockholder a
number of units of New Stock equal to (i) the total number of units of New Stock
to be issued by the Company multiplied by (ii) the ratio, as of the date of any
written notice pursuant to the first sentence of Section 9, of (A) the total
number of shares of Common Stock outstanding or issuable upon conversion of
Convertible Securities or upon exercise of any warrants, vested options or
subscription rights then owned by such Stockholder to (B) the total number of
shares of all classes of Common Stock then outstanding or then issuable upon
conversion of any Convertible Securities or upon exercise of any warrants,
vested options or subscription rights then outstanding.

         (bb)     The term "REGISTRABLE STOCK" shall mean at any time, the
shares of the then outstanding Common Stock or Conversion Stock of the Company
owned by the Stockholders or the Persons to which Registration Rights may be
transferred pursuant to Section 6(j) of this Agreement; provided, however, that
Registrable Stock shall not be deemed to include any shares of Stock have been
registered under the Securities Act and

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                                                                              8

sold pursuant to such registration or any shares sold without registration under
the Securities Act in compliance with Rule 144.

         (bc)     The term "REGISTRATION RIGHTS" shall mean the rights of the
Stockholders to require the Company to register the Common Stock pursuant to
Section 6.

         (bd)     The term "REGISTRATION STATEMENT" shall mean a registration
statement relating to the applicable registration on any appropriate form under
the Securities Act which form shall be available for the sale of Registrable
Stock in accordance with the intended method or methods of distribution.

         (be)     The term "REMAINING SHARES" shall have the meaning specified
in Section 3(d).

         (bf)     The term "REMAINING STOCKHOLDER" shall mean any Stockholder
who received notice from a Selling Stockholder of such Selling Stockholder's
intention to transfer shares of Stock and has determined not to exercise such
Stockholder's Take-Along Right.

         (bg)     The term "REORGANIZATION AGREEMENT" shall mean the Agreement
and Plan of Reorganization, dated as of December 30, 1994, by and among the
Company, the Existing Stockholders and the other parties thereto.

         (bh)     The term "RIOS" shall have the meaning provided in the
Recitals to this Agreement.

         (bi)     The term "RIOS DesIGnee" shall have the meaning provided in
Section 7(b)(v).

         (bj)     The term "SECURITIES" shall mean any debt or equity securities
of the Company or a Subsidiary, whether now or hereafter authorized, and any
instrument convertible into or exchangeable for Securities or a Security. The
term "Security" shall mean any one of the Securities.

         (bk)     The term "SECURITIES ACT" shall mean the Securities Act of
1933, as amended.

         (bl)     The term "SECURITIES AND EXCHANGE COMMISSION" shall mean the
United States Securities and Exchange Commission or any successor to the
functions of such agency.

         (bm)     The term "SELLING STOCKHOLDER" shall mean any Stockholder who
is a party to a Disposition of Stock whether intentional or involuntary.

         (bn)     The term "STOCK" shall mean the Common Stock and the Preferred
Stock.

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                                                                              9

         (bo)     The term "STOCK PURCHASE AGREEMENT" shall have the meaning
provided in the Recitals.

         (bp)     The term "STOCKHOLDER" shall mean each party other than the
Company executing this Agreement and such Person's Permitted Transferee, during
such time as such party or Person owns Stock.

         (bq)     The term "STOCKHOLDER PURCHASE PERIOD" shall have the meaning
provided in Section 3(d).

         (br)     The term "STOCKHOLDER'S SPOUSE" shall mean any Person who, at
any time during the term of this Agreement is the spouse of any Person who is a
Stockholder; provided however, that if such Person ceases to be the spouse of a
Stockholder because of death, divorce or otherwise, such person shall no longer
be a Stockholder's Spouse hereunder.

         (bs)     The term "SUBSIDIARY" shall mean any corporation more than 50%
of whose outstanding stock shall at the time be owned directly or indirectly by
the Company or by one or more Subsidiaries of the Company or by the Company and
one or more Subsidiaries.

         (bt)     The term "SWEELY" shall have the meaning provided in the
Recitals to this Agreement.

         (bu)     The term "SWEELY DESIGNEE" shall have the meaning provided in
Section 7(b)(vi).

         (bv)     The term "TA INVESTORS" shall have the meaning provided in the
Recitals hereto.

         (bw)     The term "TAKE-ALONG RIGHT" shall have the meaning provided in
Section 5(a).

         (bx)     The term "TAKE-ALONG SHARES" shall have the meaning provided
in Section 3(c).

         (by)     The term "VOTING STOCK" shall mean Stock of any class or
classes having ordinary voting power for the election of the members of the
Board of Directors of the Company.

         (bz)     The term "WELTERS" shall have the meaning provided in the
Recitals to this Agreement.

SECTION 2.  RESTRICTIONS ON TRANSFER

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                                                                             10

         (a)     GENERAL RESTRICTED TRANSFERS. No Stockholder shall participate
in any Disposition of any shares of Stock except as expressly permitted pursuant
to the provisions of this Agreement. Any purported or attempted Disposition of
any shares of Stock made in violation of the provisions of this Agreement shall
be void and of no force and effect.

         (b)      RESTRICTIVE LEGENDS

                  (i)      Unless and until otherwise permitted by this

         Agreement, each certificate for Stock issued to any Stockholder or its
         nominee, shall in addition to any other legend on such certificates be
         stamped or otherwise imprinted with a legend in substantially the
         following form:

                           "The transfer of the shares represented by this
                  certificate is restricted pursuant to a Stockholders'
                  Agreement, dated as of May 2, 1995, a copy of which Agreement
                  is on file and may be inspected at the principal office of the
                  Company. A copy of such Agreement will be furnished by the
                  Company to the holder hereof upon request and without charge."

                  (ii)     In addition, each certificate for Preferred Stock
         shall be stamped or otherwise imprinted with a legend in substantially
         the following form:

                           "A statement of the relative rights and preferences
                  of the Company's Common Stock and its classes of Preferred
                  Stock will be furnished by the Company to the holder hereof
                  upon request and without charge."

                  (iii)    The Company may order its transfer agents for Stock
         to stop the transfer of any such shares bearing the legend set forth in
         Section 2(b)(i) hereof, as applicable, until the conditions of this
         Section 2 with respect to the transfer of such shares have been
         satisfied.

         (c)      NOTICE OF PROPOSED TRANSFER. Prior to any transfer or sale of
any Stock, the Stockholder desiring to effect such transfer or sale shall
deliver a written notice to the Company describing briefly the manner of such
transfer or sale and shall also deliver a written opinion of counsel for such
Stockholder (who may be inside counsel in the case of any institutional
Stockholder) to the effect that such transfer or sale may be effected without
the registration of such Securities under the Securities Act. Upon compliance
with the provisions of Section 3 of this Agreement, the Company shall permit or
cause its transfer agent (if any) to permit such transfer or sale to be
effected; provided, however, that if in such written notice the transferring
Stockholder represents and warrants to the Company that the transfer or sale is
to a purchaser or transferee whom the transferring Stockholder knows or
reasonably believes to be a "QUALIFIED INSTITUTIONAL BUYER," as that term is
defined in Rule 144A promulgated by the Securities and Exchange Commission under
the Securities Act ("Rule 144A"), no opinion shall be required.

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                                                                             11

         (d)      NON-APPLICABILITY OF RESTRICTIONS ON TRANSFER. Notwithstanding
the provisions of this Agreement, any record owner of Stock may from time to
time transfer all or part of such record owner's Stock to a Permitted
Transferee. Each such Permitted Transferee shall execute a counterpart of this
Agreement prior to becoming the Stockholder of such Stock. Any such party
executing this Agreement shall thereafter be a party to this Agreement as fully
and to the same extent as if such party had been an original party hereto and
shall thereafter be deemed to be a "STOCKHOLDER" for the purposes hereof; and
provided, that the Stockholder transferring such Stock shall not be released
from any obligation under this Agreement.

         (e)      PROHIBITED TRANSFERS. In the case of a purported transfer in
violation of any provision of this Agreement, the purported transferee or
successor by operation of law shall not be deemed to be a shareholder of the
Company for any purpose and shall not be entitled to any of the rights of a
shareholder, including without limitation the right to receive a certificate for
shares of Stock or any dividends or other distributions with respect to such
shares; and, the last shareholder of record who acquired such shares in a manner
not contrary to the provisions of this Agreement shall be recognized as the
holder of such shares of Stock for all purposes.

         (f)      TERMINATION OF RESTRICTIONS.

                  (i)      The restrictions on transfer set forth in this
         Section 2 and in Section 3 of this Agreement, shall not apply to any
         Disposition of Stock pursuant to an effective Registration Statement
         filed under the Securities Act or the Disposition of Stock pursuant to
         Section 5 of this Agreement. In addition, the restrictions imposed by
         this Agreement upon the transferability of Stock shall terminate as to
         any particular share of Stock (A) when such Stock shall have been
         effectively registered under the Securities Act and sold by the
         Stockholder thereof in accordance with such registration, (B) when such
         Stock is transferred in a Disposition pursuant to Sections 3 and 5 of
         this Agreement, or (C) upon termination of this Agreement in accordance
         with Section 10.

                  (ii)     Whenever the restrictions imposed by this Agreement
         shall terminate, the holder of any particular share of Stock then
         outstanding as to which such restrictions shall have terminated shall
         be entitled to receive from the Company, without expense to such
         holder, one or more new certificates for Stock not bearing the
         applicable restrictive legends set forth in Section 2(b) hereof.

SECTION 3.  RIGHT OF FIRST REFUSAL.

         (a)      OFFER OF STOCK. If a Selling Stockholder is not otherwise
prohibited from making a Disposition of shares of Stock pursuant to this
Agreement and such Selling Stockholder receives a written offer from any
unaffiliated bona fide third party purchaser(s) to acquire some or all of the
Stock of the Selling Stockholder, and the Selling Stockholder intends to accept
such offer, such Selling Stockholder shall first provide a notice to the

<PAGE>

                                                                             12

Company and the Remaining Stockholders (the "OFFER NOTICE") which shall provide
notice of the proposed transaction and constitute an offer (the "OFFER") first
to sell that portion of its Stock that would be acquired by such third party
purchaser(s) (the "OFFERED SHARES") to the Company, and second if such Offer is
not accepted in whole by the Company within the time period provided hereunder,
to the Remaining Stockholders to the extent that such Offer is not accepted by
the Company. The Offer Notice shall also constitute notice of the Remaining
Stockholders' right to exercise its Take-Along Right, as provided in Section 5
hereof.

         (b)      TERMS OF OFFER. The Offer Notice shall be written and shall
include the name and address of the proposed transferee, the number of shares of
Stock proposed to be acquired by the proposed transferee and the terms of the
proposed Disposition and the terms of the proposed offer. If the proposed
Disposition is for other than cash, then the price per share shall be deemed to
be the fair market value per share of the consideration offered, as determined
in good faith by the Board of Directors. The Offer may be withdrawn by the
Selling Stockholder prior to the exercise by the Company or the Remaining
Stockholders, as the case may be, of the option granted pursuant to this Section
3 in the event that the offer from the third party purchaser(s) is withdrawn or
in the event that the Selling Stockholder determines not to sell its shares of
Stock. If the consideration or any term of the proposed offer shall change, such
change shall be deemed to constitute a new offer to the Selling Stockholder
subject to this Section 3.

         (c)      PURCHASE BY COMPANY. The date of the Offer Notice shall be the
date on which such Offer Notice has been sent by messenger, express mail or
telecopier, return receipt requested, to all parties entitled to receive it (the
"NOTICE DATE"). Thirty (30) days after the Notice Date the Company shall notify
the Selling Stockholder (and any Stockholder exercising a Take-Along Right by
delivering a Take-Along Notice pursuant to Section 5) and the Remaining
Stockholders of its acceptance of the Offer (including any Shares held by
Stockholders exercising a Take-Along Right ("TAKE-ALONG SHARES")) and the
portion of Offered Shares and Take-Along Shares the Company intends to purchase
(the "COMPANY PURCHASE PERIOD").

         (d)      PURCHASE BY STOCKHOLDERS. In the event the Company shall fail
to accept the Offer (including Take-Along Shares) within the Company Purchase
Period or the Company has agreed to purchase a portion of Offered Shares and
Take-Along Shares which is less than the total number of Offered Shares and
Take-Along Shares, the Remaining Stockholders shall have an additional twenty
(20) days in which to accept the Offer (including the Take-Along Shares) to the
extent the Shares are not to be purchased by the Company (the "REMAINING
SHARES") (the "STOCKHOLDER PURCHASE PERIOD"). Each Remaining Stockholder shall
be entitled to purchase up to that number of Remaining Shares in the same
proportion as the ratio, as of such date of (i) the total number of shares of
Common Stock outstanding or issuable upon conversion of Convertible Securities
or upon exercise of any warrants, vested options or subscription rights then
owned by such Stockholder to (ii) the total number of shares of all classes of
Common Stock then outstanding or then issuable upon conversion of any
Convertible Securities or upon exercise of any warrants, vested options or
subscription rights then held by all Remaining

<PAGE>

                                                                             13

Stockholders exercising their right to purchase Remaining Shares. Prior to the
end of the Stockholder Purchase Period, each Remaining Stockholder wishing to
purchase the Remaining Shares shall indicate in writing to the other Remaining
Stockholders his agreement to purchase his said percentage of the Remaining
Shares. Any Remaining Stockholder failing to indicate his decision to purchase
the Remaining Shares within the Stockholder Purchase Period will be deemed to
have elected not to purchase any of the Remaining Shares.

         (e)      CLOSING. If the Offer (including Take-Along Shares) of the
Selling Stockholder is accepted by the Company pursuant to Section 3(c), or by
any of the Remaining Stockholders pursuant to Section 3(d), as the case may be,
the closing of the purchase, by the Company or the Remaining Stockholders, of
the shares being sold by a Selling Stockholder or Selling Stockholders shall be
held, within thirty (30) days after the end of the later of the Company Purchase
Period or Stockholder Purchase Period, as the case may be, at the main office of
the Company, or such other location as the parties may agree. At the closing,
the Company or Remaining Stockholder(s), as the case may be, shall pay to the
Selling Stockholder or Selling Stockholders, as the case may be, the full
purchase price payable for the Offered Shares and Take-Along Shares by means of
a wire transfer or certified or official bank check or checks, and the Selling
Stockholder or Selling Stockholders, as the case may be, shall deliver to the
purchasing party certificates representing all of the Offered Shares or
Take-Along Shares, duly endorsed in blank for transfer or with duly executed
blank stock powers attached, together with such other documents as may be
reasonably necessary or desirable, in the opinion of counsel for the purchaser,
to effectuate the transfer to the purchaser of the shares being purchased.

         (f)      REJECTION OF RIGHT OF FIRST REFUSAL. If the Offer (including
Take-Along Shares) is not accepted in its entirety by either the Company or the
Company and one or more Remaining Stockholders in accordance with this Section
3, the Selling Stockholder, or Selling Stockholders, as the case may be, shall
be free to dispose of all, but not less than all, of the Offered Shares and
Take-Along Shares in accordance with applicable law and Section 2 of this
Agreement, provided, however, (i) that such Disposition by the Selling
Stockholder or Selling Stockholders, as the case may be, pursuant to this
Section 3 shall be made in strict accordance with the terms of the proposed
Disposition described in the Offer Notice, (ii) that such Disposition shall be
consummated within ninety (90) days after the Notice Date and (iii) that the
purchaser in such Disposition execute a counterpart of this Agreement prior to
becoming the owner of the Stock so transferred. Any such party executing this
Agreement shall thereafter be a party to this Agreement as fully and to the same
extent as if such party had been an original party hereto and shall thereafter
be deemed to be a "Stockholder" for the purposes hereof.

         (g)      CONTINUED EFFECT OF RESTRICTIONS. After the expiration of the
ninety (90) day period described in Section 3(f), all shares offered pursuant to
this Section 3 will remain subject to the provisions of this Agreement.

<PAGE>

                                                                             14

SECTION 4.  CHANGE OF CONTROL.

         (a)      PURCHASE OF STOCK. If, during the term of this Agreement,
there occurs any of (i) the consolidation or merger of the Company into or with
any corporation or corporations (other than a merger with another corporation
(A) in which the Company is the surviving corporation and which does not result
in any reclassification or change -- other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination -- of outstanding shares of the Stock of any class
or series, whether now or hereafter authorized or (B) in which the Company is
not the surviving corporation and the holders receive Common Stock of such
surviving corporation), (ii) the sale or transfer by the Company of all or
substantially all of its assets or all or substantially all of the assets of any
significant Subsidiary or (iii) a Change-in-Control Transaction, the Company
shall send within 5 business days of the effective date of any such transaction
written notice of such occurrence by messenger, express mail or telecopier
return receipt requested to each Stockholder. Within thirty (30) days of
delivery of such notice each Stockholder may deliver to the Company a demand
that the Company purchase any or all of the shares of Common Stock owned by such
Stockholder at the Fair Market Value and Preferred Stock owned by such
Stockholder at a price per share equal to the Fair Market Value of the
Conversion Stock which could be received upon conversion of such Preferred
Stock. The Closing of the purchase by the Company pursuant to this Section 4(a)
shall occur on the later of (i) the date forty-five (45) days after delivery of
the notice to the Stockholders and (ii) the date fifteen (15) days after the
determination of Fair Market Value pursuant to Section 4(b). The Company shall
pay such purchase price to such Stockholder by certified or official bank check
or wire transfer of funds and the Stockholder shall deliver to the Company share
certificates representing all of the shares of Stock being purchased, duly
endorsed in blank for transfer or with duly executed blank stock powers
attached, together with such other documents as may be reasonably necessary, in
the opinion of counsel for the Company, to effectuate the transfer to the
Company of the shares being purchased.

         (b)      ADJUSTMENT TO FAIR MARKET VALUE. In the event that
Stockholders holding a majority of the Stock to be purchased by the Company
pursuant to Section 4(a) believe that the then existing Formula Price
understates the Fair Market Value by more than ten percent (10%), then such
Persons may request in writing that one representative selected by such
Stockholders and one representative selected by the Board of Directors negotiate
in good faith and use reasonable efforts to agree on a revised Per Enrollee
Value which, in the opinion of such representatives, results in a Formula Price
which accurately reflects the then current aggregate Fair Market Value of the
Company's Fully-Diluted Common Stock. In the event that such representatives do
not agree to a revised valuation within 30 days following delivery of the
written request for such negotiation, the Company shall retain Duff & Phelps to
determine, in its sole judgment, the valuation which accurately reflects the
then current Fair Market Value of the Company's Fully-Diluted Common Stock. If
the Duff & Phelps valuation is greater than the then current Formula Price by
more than ten percent (10%), then the quotient obtained by dividing the Duff &
Phelps valuation by the number of Current Enrollees shall become the Per
Enrollee Value for the purpose of this Section 4(b). If the Duff & Phelps
valuation is not 10% greater than the then existing

<PAGE>

                                                                             15

Formula Price, then the Per Enrollee Value shall not be adjusted as a result of
such valuation. The Company shall pay all fees and expenses of Duff & Phelps in
completing such valuation. In the event that Duff & Phelps is no longer in the
business of performing such corporate valuations, then the Company shall retain
an investment banking firm of nationally recognized standing acceptable to the
holders of a majority of the Stock to perform such valuation.

SECTION 5.  TAKE-ALONG RIGHTS.

         (a)      RIGHT TO SELL. If upon receiving an Offer Notice any Selling
Stockholder or Selling Stockholders determine that rather than exercising any
right to purchase stock pursuant to Section 3 such Stockholder elects to
transfer all or part of its or their shares of Stock to the proposed transferee,
each other Stockholder and their respective successors and assigns shall have
the right (the "TAKE-ALONG RIGHT") to sell to the proposed transferee, on the
same terms and conditions as were offered to the Selling Stockholder (including
the price per share of Common Stock), up to the number of shares of Stock then
owned by each other Stockholder equal to the ratio, as of such date of (i) the
total number of shares of Common Stock outstanding or issuable upon conversion
of Convertible Securities or upon exercise of any warrants, vested options or
subscription rights then held by such other Stockholder to (ii) the total number
of shares of all classes of Common Stock then outstanding or then issuable upon
conversion of any Convertible Securities or exercise of any warrants, vested
options or subscription rights then held by the Selling Stockholder and all
other Stockholders exercising their Take-Along Rights. If any of the
Stockholders exercise their Take-Along Rights, the Selling Stockholder shall be
entitled to sell a portion of its shares of Stock equal to the difference
between (y) the number of shares of Stock the Stockholder proposed to transfer
and (z) the number of shares of Stock the other Stockholders elect to sell
pursuant to their Take-Along Rights.

         (b)      TAKE-ALONG NOTICE. If any Selling Stockholder determines to
exercise its Take-Along Right, such Selling Stockholder shall send written
notice by messenger, express mail or telecopier, return receipt requested,
registered to each of the other Stockholders (the "TAKE-ALONG NOTICE"). Each
other Stockholder shall have twenty (20) days after receipt of the Take-Along
Notice to notify the Selling Stockholder and the Company in writing of its
intention to exercise such Stockholder's Take-Along Right.

         (c)      CLOSING. In the event that Take-Along Shares are to be
purchased by either the Company, or the Remaining Stockholders, in accordance
with Section 3, the closing of the purchase of such Take-Along Shares shall
occur in accordance with Section 3(a). In all other instances the closing of the
purchase of such Take-Along Shares shall occur concurrently with the purchase of
all other Stock and Take-Along Shares by the proposed transferee.

         (d)      WAIVER OF TAKE-ALONG RIGHT. In the event that any Stockholder
determines to waive its Take-Along Right for a transaction described in an Offer
Notice, the Selling Stockholder or Selling Stockholders (in the event that such
Stockholders have

<PAGE>

                                                                             16

asserted their Take-Along Right), as the case may be, shall be free to dispose
of all, but not less than all, of the Offered Shares and Take-Along Shares in
accordance with applicable law and Section 2 of this Agreement; provided,
however, that such Disposition by the Selling Stockholder or Selling
Stockholders, as the case may be, shall occur in accordance with Section 3(f).

SECTION 6.  REGISTRATION RIGHTS

         (a)      REQUIRED REGISTRATIONS.

         1.       REGISTRATION STATEMENTS OTHER THAN ON FORM S-3.

                  (i)      One or more Stockholders holding in the aggregate
         more than one-third of the then existing shares of Registrable Stock
         may upon written request require that the Company use commercially
         reasonable best efforts to effect registration of such Stockholder or
         Stockholders' Registrable Stock under the Securities Act and under all
         applicable state securities or blue sky laws, but only to the extent
         provided for in the following provisions of this Agreement. A request
         pursuant to this Section 6(a)(1)(i) shall state the intended method of
         Disposition of the Registrable Stock sought to be registered. Whenever
         the Company shall, pursuant to this Section 6(a)(1)(i), be requested to
         effect the registration of any Registrable Stock under the Securities
         Act, the Company shall promptly give written notice of such proposed
         registration to all Stockholders, stating that such Persons have the
         right to request that any or all of the Registrable Stock owned by them
         be included in such registration. The Company shall include in such
         registration all Registrable Stock with respect to which the Company
         receives timely written requests from the holders thereof for inclusion
         therein (stating the intended method of Disposition of such Stock); and
         thereupon the Company will, as expeditiously as possible, use
         commercially reasonable best efforts to effect the registration of such
         Registrable Stock which the Company has been requested to register for
         Disposition by such Stockholders in accordance with the intended method
         of Disposition described in the requests of such Persons, all to the
         extent requisite to permit such sale or other Disposition by such
         Persons of the Stock so registered.

                  (ii)     The foregoing registration rights shall be deemed
         satisfied by the Company when two Registration Statements shall have
         been filed by the Company with and made effective by the Securities and
         Exchange Commission under the Securities Act pursuant to requests made
         pursuant to Section 6(a)(1) (except as provided pursuant to Section
         6(a)(1)(iii) hereof) and the offerings contemplated by each such
         Registration Statement shall have been fully consummated; provided that
         if the holders of a majority of Stockholders requesting registration
         determine to abandon such registration, and the Company is reimbursed
         for all of its expenses relating to such abandoned registration, and
         the Stockholders requesting such registration satisfy all costs of the
         Stockholders

<PAGE>

                                                                             17

         relating to such registration, such abandoned registration shall not be
         deemed a required registration for the purpose of this clause (ii).

                  (iii)    The holders of a majority of the Registrable Stock to
         be included in a Registration Statement filed pursuant to this Section
         6(a)(1) shall have the right to select one or more nationally
         recognized investment bankers who shall serve as the manager and/or
         co-managers for the offering of such Registrable Stock.

                  (iv)     The Company may, if the Board of Directors determines
         that it is not at the time of such request in the best interests of
         the Company to effect a registration requested by Stockholders
         pursuant to Section 6(a)(1)(i) hereof, delay such registration for a
         single period not to exceed one hundred and eighty (180) days after
         delivery of such request. If the Company elects not to effect a
         required registration pursuant to this Section 6(a)(1)(iii), no
         registration shall be deemed to have occurred for the purposes of
         Section 6(a)(1)(i) until such deferred registration shall have been
         consummated.

         2.       REGISTRATION STATEMENTS ON FORM S-3.

                  (i)      After the Company has qualified for the registration
         of Common Stock on Form S-3 (or any successor form of similar tenor and
         effect), the Company will, upon the written request of one or more
         Stockholders holding in the aggregate more than one-tenth of the then
         existing shares of Registrable Stock, use commercially reasonable best
         efforts to effect registration of such Stockholder or Stockholders'
         Registrable Stock under the Securities Act on Form S-3 (or any
         successor form of similar tenor and effect). A request pursuant to this
         Section 6(a)(2)(i) shall state the intended method of Disposition of
         the Registrable Stock sought to be registered. Whenever the Company
         shall, pursuant to this Section 6(a)(2)(i), be requested to effect the
         registration of any Registrable Stock under the Securities Act, the
         Company shall promptly give written notice of such proposed
         registration to all Stockholders, stating that such Persons have the
         right to request that any or all of the Registrable Stock owned by them
         be included in such registration. The Company shall include in such
         registration all Registrable Stock with respect to which the Company
         receives timely written requests from the holders thereof for inclusion
         therein (stating the intended method of Disposition of such Stock); and
         thereupon the Company will, as expeditiously as possible, use
         commercially reasonable best efforts to effect the registration of such
         Registrable Stock which the Company has been requested to register for
         Disposition by such Stockholders in accordance with the intended method
         of Disposition described in the requests of such Persons, all to the
         extent requisite to permit such sale or other Disposition by such
         Persons of the Stock so registered.

                  (ii)     The foregoing registration right shall be unlimited
         in number. Each request pursuant to this clause (ii) shall be satisfied
         by the Company when a Registration Statement has been filed by the
         Company with and made effective by

<PAGE>

                                                                             18

         the Securities and Exchange Commission under the Securities Act and
         remains effective for a period of thirty (30) days.

                  (iii)    The Company may, if the Board of Directors determines
         that it is not at the time of such request in the best interests of the
         Company to effect a registration requested by Stockholders pursuant to
         Section 6(a)(2)(i) hereof, delay such registration for a single period
         not to exceed ninety (90) days after delivery of such request. If the
         Company elects not to effect a required registration pursuant to this
         Section 6(a)(2)(iii), no registration shall be deemed to have occurred
         for the purposes of Section 6(a)(2)(i) until such deferred registration
         shall have been consummated.

         (b)      INCIDENTAL REGISTRATION. If the Company at any time proposes
or is required to register any Registrable Stock under the Securities Act or any
applicable state securities or blue sky laws on a form which permits inclusion
of the Registrable Stock, it will provide written notice to all Stockholders of
its intention so to do. Upon the written request of any such Stockholder given
within twenty (20) days after receipt of any such notice, the Company will use
commercially reasonable efforts to cause all Registrable Stock, which such
Stockholders shall have requested to be registered, to be registered under the
Securities Act and any applicable state securities or blue sky laws, all to the
extent requisite to permit the sale or other disposition by such Persons of the
Registrable Stock so registered. No registrations of Registrable Stock under
this Section 6(b) shall relieve the Company of its obligation to effect
registrations under Section 6(a), or shall constitute a registration request by
any such Stockholder under Section 6(a). The Company shall have the right to
select one or more nationally recognized investment bankers who shall serve as
the manager and/or co-managers for all registrations of offerings of Securities
under this Section 6(b).

         (c)      REGISTRATION PROCEDURES.  Whenever the Company is required by
the provisions of this Agreement to use commercially reasonable efforts to
effect the registration of any Registrable Stock under the Securities Act, the
Company will, as expeditiously as possible:

                  (i)      prepare and file with the Securities and Exchange
         Commission a Registration Statement with respect to such Registrable
         Stock and use commercially reasonable best efforts to cause such
         Registration Statement to become and remain effective for the period of
         distribution contemplated thereby, determined as provided hereafter;

                  (ii)     prepare and file with the Securities and Exchange
         Commission such amendments and supplements to such Registration
         Statement and the Prospectus used in connection therewith as may be
         necessary to keep such Registration Statement effective for the period
         of distribution contemplated thereby, determined as provided hereafter,
         and to comply with the provisions of the Securities Act with respect to
         the sale or other disposition of all Securities covered by such
         Registration Statement during such period in accordance with the

<PAGE>

                                                                             19

         intended method or methods of disposition by the Company and Selling
         Stockholders thereof set forth in such Registration Statement and make
         generally available to its security holders, in each case as soon as
         practicable, but not later than 45 days after the close of the period
         covered thereby (90 days in case the period covered thereby corresponds
         to a fiscal year of the Company) an earnings statement of the Company
         which will satisfy the provisions of Section 10(a) of the Securities
         Act and Rule 158 thereunder (or any comparable successor provisions);

                  (iii)    furnish to each Selling Stockholders such number of
         copies of such Registration Statement, each amendment and supplement
         thereto, the Prospectus included in the Registration Statement
         (including each Preliminary Prospectus), and such other documents, as
         such Person may reasonably request in order to facilitate the public
         sale or other disposition of such Person's Securities;

                  (iv)     use every reasonable effort to register or qualify
         all the Securities covered by such Registration Statement under such
         other securities or blue sky laws of such jurisdictions as each Selling
         Stockholder shall reasonably request, and do any and all other acts and
         things which may be necessary under such securities or blue sky laws to
         enable such Person to consummate the public sale or other disposition
         in such jurisdiction of the Securities owned by such Person covered by
         such Registration Statement; provided, however, that the Company shall
         not be required to (A) qualify to do business as a foreign corporation
         in any jurisdiction wherein it would not otherwise be required to
         qualify but for this subparagraph, (B) subject itself to taxation in
         any such jurisdiction, or (C) consent to general service of process in
         any such jurisdiction;

                  (v)      promptly notify each Selling Stockholder at any time
         when a Prospectus relating to the Registrable Securities covered by
         such Registration Statement is required to be delivered under the
         Securities Act, of the happening of any event as a result of which the
         Prospectus included in such Registration Statement contains an untrue
         statement of a material fact or omits any fact necessary to make the
         statements therein not misleading, and at the request of any such
         Person, prepare a supplement or amendment to such Prospectus so that,
         as thereafter delivered to the purchasers of the securities covered by
         such Registration Statement, such Prospectus will not contain an untrue
         statement of a material fact or omit to state any fact necessary to
         make the statements therein not misleading;

                  (vi)     cause all such securities covered by such
         Registration Statement to be listed on each securities exchange or
         quoted in such quotation system on which securities of the same class
         are then listed or quoted (or, in the case of the Initial Public
         Offering, such exchange or quotation system as the Company may
         determine);

<PAGE>

                                                                             20

                  (vii)    provide a transfer agent and registrar for the
         securities not later than the effective date of such Registration
         Statement;

                  (viii)   enter into such customary agreements (including an
         underwriting agreement in customary form) and take all such other
         actions as the holders of at least a majority of the Registrable Stock
         included in such Registration Statement or underwriters, if any,
         reasonably request in order to expedite or facilitate the disposition
         of such securities (including, without limitation, effecting a stock
         split or a combination of shares);

                  (ix)     make available for inspection by any Selling
         Stockholder, any underwriter participating in any disposition pursuant
         to such Registration Statement, and any attorney, accountant or other
         agent retained by an underwriter or any Selling Stockholder and its
         Affiliates who are the holders of at least 5% of the Registrable Stock
         included in such registration, all financial and other records,
         pertinent corporate documents and properties of the Company, and cause
         the Company's officers, directors and employees to supply all
         information reasonably requested by any such Selling Stockholder,
         underwriter, attorney, accountant or agent in connection with such
         Registration Statement; and

                  (x)      obtain and furnish to each Stockholder immediately
         prior to the effectiveness of the Registration Statement (and, in the
         case of an underwritten offering, at the time of delivery of any
         Registrable Securities sold pursuant thereto) a cold comfort letter
         from the Company's independent public accountants and an opinion of
         counsel for the Company, both in customary form and covering such
         matters of the type customarily covered by cold comfort letters and
         opinions of counsel.

For purposes of paragraphs (i) and (ii), the period of distribution of
Registrable Stock in a firm commitment underwritten public offering shall be
deemed to extend until each underwriter has completed the distribution of all
securities purchased by it, and the period of distribution of Registrable Stock
in any other registration shall be deemed to extend until the earlier of the
sale of all Registrable Stock covered thereby and six (6) months after the
effective date thereof.

         (d)      Expenses. All expenses incurred in effecting all of the
registrations provided for in Sections 6(a) and (b) hereof, including, without
limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel for the Company, fees and disbursements of one law firm
serving as counsel for the Selling Stockholders (who shall be selected by
Persons holding at least a majority of the Registrable Stock being offered) in
the case of a registration pursuant to Section 6(a), underwriting expenses other
than underwriting discounts and commissions, expenses of any audits incident to
or required by any such registration and expenses of complying with the
securities or blue sky laws of any jurisdictions pursuant to Section 6(c)(iv)
hereof, shall be borne and paid by the Company. Subject to Section 6(a)(ii), the
Company shall pay all expenses in connection with any registration initiated
pursuant to this Section 6 which is withdrawn, delayed or

<PAGE>

                                                                             21

abandoned, unless such registration is withdrawn, delayed or abandoned at the
request of the Stockholders seeking such registration.

         (e)      INDEMNIFICATION.

                  (i)      In the event of any registration of any of its
         securities under the Securities Act pursuant to this Agreement, the
         Company, to the extent permitted by law, shall indemnify and hold
         harmless the seller of such securities, each underwriter (as defined in
         the Securities Act), each other Person who participates in the offering
         of such securities, each other Person, if any, who controls (within the
         meaning of the Securities Act) such Selling Stockholder, underwriter or
         participating Person and each director, officer, partner, employee or
         agent of any such parties, against any losses, claims, damages or
         liabilities, joint or several, to which any such party may become
         subject under the Securities Act or any other statute or regulation or
         at common law or otherwise, insofar as such losses, claims, damages or
         liabilities (or actions in respect thereof) arise out of or are based
         upon (A) any alleged untrue statement of any material fact contained,
         on the effective date thereof, in any Registration Statement under
         which such securities were registered under the Securities Act, any
         preliminary Prospectus or final Prospectus contained therein, or any
         summary Prospectus issued in connection with any securities being
         registered, or any amendment or supplement thereto, (B) any alleged
         omission to state in any such document a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading, or (C) any violation by the Company of the Securities Act,
         the Exchange Act, any state securities laws or any rule or regulation
         thereunder in connection with such registration and shall reimburse
         each party for any legal or other expenses reasonably incurred by such
         Selling Stockholder, underwriter, participating Person or controlling
         Person in connection with investigating or defending any such loss,
         damage, liability or action; provided, however, that the Company shall
         not be liable to any such party in any such case to the extent that any
         such loss, claim, damage or liability arises out of or is based upon
         any alleged untrue statement or alleged omission made in such
         Registration Statement, preliminary Prospectus, summary Prospectus,
         Prospectus, or amendment or supplement thereto in reliance upon and in
         conformity with written information furnished to the Company by such
         Selling Stockholder, specifically for use therein.

                  (ii)     Each Selling Stockholder, by acceptance thereof,
         severally and not jointly, indemnifies and holds harmless each other
         Selling Stockholder, the Company, its directors and officers, each
         underwriter (as defined in the Securities Act), and each other Person,
         if any, who controls (within the meaning of the Securities Act) the
         Company, any underwriter or any Selling Stockholder, against any
         losses, claims, damages, or liabilities, joint or several, to which any
         such other Selling Stockholder, the Company, any such director or
         officer, any such underwriter, or any such Person may become subject
         under the Securities Act or any other statute or at common law, in so
         far as such losses, claims, damages or

<PAGE>

                                                                             22

         liabilities (or actions in respect thereof) arise out of or are based
         upon (A) any alleged untrue statement of any material fact contained,
         on the effective date thereof, in any Registration Statement under
         which Registrable Stock is registered under the Securities Act at the
         request of such Selling Stockholder, any preliminary Prospectus or
         final Prospectus contained therein, or any summary Prospectus issued in
         connection with any such Securities being registered, or any amendment
         or supplement thereto, or (B) any alleged omission to state in any such
         document a material fact required to be stated therein or necessary to
         make the statements therein not misleading, in either case of clauses
         (A) and (B) above to the extent, and only to the extent, that such
         alleged untrue statement or alleged omission was made in such
         Registration Statement, preliminary Prospectus, summary Prospectus,
         Prospectus, amendment or supplement in reliance upon and in conformity
         with written information furnished to the Company by such Selling
         Stockholder specifically for use therein, and then only to the extent
         that such alleged untrue statements or alleged omissions by such holder
         were not based on the authority of an expert as to which such holder
         had no reasonable ground to believe, and did not believe, that the
         statements made on the authority of such expert were untrue or that
         there was an omission to state a material fact. Notwithstanding the
         foregoing provisions of this Section 6(e)(ii), no Selling Stockholder
         shall be required to pay under such provisions an amount in excess of
         the proceeds received by such Selling Stockholder in payment for the
         Securities sold by such Selling Stockholder pursuant to the
         Registration Statement.

                  (iii)    Indemnification similar to that specified in Sections
         6(e)(i) and 6(e)(ii) hereof shall be given by the Company and each
         Selling Stockholder (with such modifications as shall be appropriate)
         covered by any registration or other qualification of securities under
         any federal or state securities law or regulation other than the
         Securities Act with respect to any such registration or other
         qualification effected pursuant to this Agreement.

                  (iv)     Any Person which proposes to assert the right to be
         indemnified under Sections 6(e)(i), (e)(ii) or (e)(iii) hereof shall,
         promptly after receipt of notice of commencement of any action, suit or
         proceeding against such Person in respect of which a claim is to be
         made against an indemnifying Person under such Sections 6(e)(i),
         (e)(ii) or (e)(iii), notify each such indemnifying Person of the
         commencement of such action, suit or proceeding, enclosing a copy of
         all papers served. The indemnifying Person shall have the right to
         investigate and defend any such loss, claim, damage, liability or
         action and to employ separate counsel in any such action and to control
         the defense thereof. The Person claiming indemnification shall have the
         right to employ separate counsel in any such action and to control the
         defense thereof, but the fees and expenses of such counsel shall not be
         at the expense of the Person against whom indemnification is sought;
         provided, however, that notwithstanding the foregoing, in any case when
         indemnification is sought against the Company and (A) the Person
         seeking indemnification has been advised by counsel that its defenses
         may be different from those of the Company, or (B) the Company has not
         proceeded in a timely

<PAGE>

                                                                             23

         manner to effect such defense, then the reasonable fees and expenses of
         counsel for such Person shall be paid by the Company and the
         indemnified Person shall have the right to control the defense of such
         action, suit or proceeding. In no event shall a Person against whom
         indemnification is sought be obligated to indemnify any Person for any
         settlement of any claim or action effected without the indemnifying
         Person's consent.

                  (v)      The indemnification provided for under this Section
         6(e) will remain in full force and effect regardless of any
         investigation made by or on behalf of the indemnified party or any
         officer, director or controlling Person of such indemnified party and
         will survive the transfer of securities.

                  (vi)     If the indemnification provided for in this Section
         6(e) for any reason is held by a court of competent jurisdiction to be
         unavailable to an indemnified party in respect of any losses, claims,
         damages, expenses or liabilities referred to therein, then each
         indemnifying party under this Section 6(e), in lieu of indemnifying
         such indemnified party thereunder, shall contribute to the amount paid
         or payable by such indemnified party as a result of such losses,
         claims, damages, expenses or liabilities in such proportion as is
         appropriate to reflect the relative fault of the Company on the one
         hand and the Stockholder on the other hand in connection with the
         statements or omissions which resulted in such losses, claims, damages
         or liabilities, as well as any other relevant equitable considerations.
         The relative fault of the Company on the one hand and of the
         Stockholder 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 on the one hand or
         the Stockholder on the other hand, and each party's relative intent,
         knowledge, access to information and opportunity to correct or prevent
         such statement or omission.

                  (vii)    The Company, the Stockholders, and the underwriters
         agree that it would not be just and equitable if contribution pursuant
         to this Section 6(e) were determined by pro rata or per capita
         allocation or by any other method of allocation which does not take
         account of the equitable considerations referred to in the immediately
         preceding paragraph. In no event, however, shall a Stockholder be
         required to contribute any amount under this Section 6(e) in excess of
         the proceeds received by such Stockholder from its sale of Stock under
         such Registration Statement. No person found guilty of fraudulent
         misrepresentation (within the meaning of Section 10(f) of the
         Securities Act) shall be entitled to contribution from any person who
         was not found guilty of such fraudulent misrepresentation.

                  (viii)   The amount paid by an indemnifying party or payable
         to an indemnified party as a result of the losses, claims, damages and
         liabilities referred to in this Section 6(e) shall be deemed to
         include, subject to the limitations set forth above, any legal or other
         expenses reasonably incurred by such indemnified

<PAGE>

                                                                             24

         party in connection with investigating or defending any such action or
         claim. The indemnification and contribution provided for in this
         Section 6(e) will remain in full force and effect regardless of any
         investigation made by or on behalf of the indemnified parties or any
         officer, director, employee, agent or controlling person of the
         indemnified parties.

         (f)      PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No Stockholder
may participate in any underwritten registration hereunder unless such Selling
Stockholder (i) agrees to sell such Person's securities on the basis provided in
any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

         (g)      MARKETING RESTRICTIONS.

                  (i)      If:

                                    (A)      any Stockholder is entitled and
                    wishes to register any Registrable Stock in a registration
                    made pursuant to Section 6(a) hereof;

                                    (B)      the offering proposed to be made by
                    the Selling Stockholder(s) for whom such registration is to
                    be made is to be an underwritten public offering;

                                    (C)      the Company or one or more Selling
                    Stockholders wishes to include Registrable Stock in such
                    registration; and

                                    (D)      the managing underwriters of such
                    underwritten offering furnish a written opinion that the
                    total amount of Registrable Stock to be included in such
                    offering would exceed the maximum amount of Registrable
                    Stock (as specified in such opinion) which can be marketed
                    at a price reasonably related to the then current market
                    value of such securities and without otherwise materially
                    and adversely affecting such offering,

         then the relative rights to participate in such offering of the Selling
         Stockholders of Registrable Stock, the holders of other securities
         having the right to include such securities in such registration, and
         the Company shall be in the following order of priority:

                  First: The Selling Stockholders shall be entitled to
         participate in accordance with the number of shares of Registrable
         Stock which each such Person shall request to be registered, such
         participation to be pro rata in accordance with the number of shares
         which each such Selling Stockholder shall request be registered if,
         pursuant to clause D of this Section 6(g)(i), the total amount of
         securities to be

<PAGE>

                                                                             25

         included in the offering will be less than the number of shares of
         Registrable Stock that all of such Selling Stockholders shall request
         be registered; and then

                  Second:  To the extent possible, the Company shall be entitled
         to participate in accordance with the number of Securities to be sold
         by the Company; and then

                  Third: To the extent possible, all holders of other Securities
         having the right to include such Securities in such registration shall
         be entitled to participate in accordance with relative priorities, if
         any, as shall exist among them;

         and no Securities (issued or unissued) other than those registered and
         included in the underwritten offering shall be offered for sale or
         other disposition by the Company or any Selling Stockholder in a
         transaction which would require registration under the Securities Act
         until the expiration of one hundred and eighty (180) days after the
         effective date of the Registration Statement filed pursuant to Section
         6(a) hereof, or such earlier time consented to by the managing
         underwriters.

                  (ii)     If:

                                    (A)      any Stockholder of Registrable
                    Stock entitled to do so requests registration of Registrable
                    Stock under Section 6(b) hereof;

                                    (B)      the offering proposed to be made is
                    to be an underwritten public offering; and

                                    (C)      the managing underwriters of such
                    underwritten offering furnish a written opinion that the
                    total amount of securities to be included in such offering
                    would exceed the maximum amount of securities (as specified
                    in such opinion) which can be marketed at a price reasonably
                    related to the then current market value of such securities
                    and without otherwise materially and adversely affecting
                    such offering,

         then the relative rights to participate in such offering of the Selling
         Stockholders, the holders of other securities having the right to
         include such securities in such registration, and the Company shall be
         in the following order of priority:

                  First:   The Selling Stockholder(s) or Person(s) (including
         the Company in the case of an offering initiated by the Company)
         requesting such registration; and then

                  Second:  The Company (if the registration does not relate to
         an offering initiated by the Company), Selling Stockholders and all
         other holders of securities having the right to include such securities
         in such registration shall be entitled to participate pro rata among
         themselves in accordance with the number of shares of Registrable Stock
         which the Company (if the registration does not relate to an

<PAGE>

                                                                             26

         offering initiated by the Company) and each such Person shall have
         requested be registered; and then

                  Third:   All holders of other securities having the right to
           include such securities in such registration shall be entitled to
           participate with relative priorities, if any, as shall exist among
           them;

           and no securities (issued or unissued) other than those registered
           and included in the underwritten offering or pursuant to an
           acquisition, merger or exchange offer, shall be offered for sale or
           other disposition by the Company or any Stockholder until the
           expiration of one hundred and eighty (180) days after the effective
           date of the Registration Statement in which Registrable Stock was
           included pursuant to Sections 6(a) or (b) hereof, or such earlier
           time consented to by the managing underwriters.

                  (iii)    Notwithstanding, Sections 6(g)(i) and (g)(ii), if:

                                    (A)      any Stockholder entitled to do so
                    requests registration of Registrable Stock under Section
                    6(b) hereof; and

                                    (B)      the offering proposed to be made is
                    to be an underwritten public offering; and

                                    (C)      the offering proposed to be made
                    would be the Initial Public Offering; and

                                    (D)      the Company wishes to register
                    Securities in such registration; and

                                    (E)      the managing underwriters of such
                    underwritten public offering furnish a written opinion that
                    the total amount of Securities to be included in such
                    offering would exceed the maximum amount of Securities (as
                    specified in such opinion) which can be marketed at a price
                    reasonably related to the then current market value of such
                    Securities and without otherwise materially and adversely
                    affecting such offering,

         then the relative rights to participate in such offering of the Selling
         Stockholders, the holders of other Securities having the right to
         include such Securities in such registration, and the Company shall be
         in the following order of priority:

                  First:   The Company shall be entitled to participate to the
         extent of the number of Securities to be sold by the Company; and then

                  Second:  The Selling Stockholders shall be entitled to
         participate in accordance with the number of shares of Registrable
         Stock which each such Person shall request to be registered, such
         participation to be pro rata in

<PAGE>

                                                                             27

         accordance with the number of shares which each such Selling
         Stockholder shall request be registered if, pursuant to clause E of
         this Section 6(g)(iii), the total amount of securities to be included
         in the offering less the total amount of securities to be offered by
         the Company will be less than the number of shares of Registrable Stock
         that all of such Stockholders shall request be registered; and then

                  Third:   All holders of other securities having the right to
         include such Securities in such registration shall be entitled to
         participate in with relative priorities, if any, as shall exist among
         them;

         and no Securities (issued or unissued) other than those registered and
         included in the underwritten offering or pursuant to an acquisition,
         merger or exchange offer shall be offered for sale or other disposition
         by the Company or any holder of Registrable Stock until the expiration
         of one hundred and eighty (180) days after the effective date of the
         Registration Statement filed pursuant to Sections 6(a) or (b) hereof,
         or such earlier time consented to by the managing underwriters.

         (h)      SALE OF PREFERRED STOCK TO UNDERWRITER. Notwithstanding
anything in this Agreement to the contrary, in lieu of converting any shares of
Preferred Stock prior to or simultaneously with the filing or the effectiveness
of any Registration Statement filed pursuant to this Agreement, the Stockholder
of such Preferred Stock may sell such Preferred Stock to the underwriter of the
offering being registered if such underwriter consents thereto and if such
underwriter undertakes to convert such Preferred Stock to Conversion Stock
before making any distribution pursuant to such Registration Statement and to
include the Common Stock received by such Stockholder upon such conversion among
the securities being offered pursuant to such Registration Statement. The
Company agrees to cause such Common Stock to be issued within such time as will
permit the underwriter to make and complete the distribution contemplated by the
underwriting.

         (i)      GRANT OF SUBSEQUENT REGISTRATION RIGHTS. The Company may grant
incidental registration rights under the Securities Act to any Person at any
time which rights may be equivalent to the incidental registration rights of
Stockholders hereunder. Nothing in this Agreement shall be construed to prohibit
the Company from granting such registration rights.

         (j)      TRANSFER OF REGISTRATION RIGHTS. The registration rights and
related obligations under this Section 6 shall be transferable to any transferee
of Registrable Stock so long as the transfer to the transferee of the
Registrable Stock is accomplished pursuant to the terms of this Agreement. Upon
any transfer in accordance with the preceding sentence, for all purposes under
this Section 6 unless expressly indicated to the contrary, the transferee shall
be deemed to be a "STOCKHOLDER," but only to the extent that the transferor was
included within each such definition. At the time of any transfer in accordance
with this Section 6, the transferor shall provide notice to the Company
specifying the name and address of the transferee, the effective date of the
transfer, the number of Registrable Stock so transferred, a statement that such
transfer satisfies all of the provisions of this Agreement

<PAGE>

                                                                             28

and a statement that registration rights are being transferred in accordance
with this Section 6; provided that the transferee agrees in writing for the
benefit of the Company and the other Stockholders to be bound by all provisions
of this Section 6 to the same extent as was the transferor prior to such
transfer.

SECTION 7.  VOTING AGREEMENT

         (a)      THE VOTING AGREEMENT. Pursuant to Section 218(c) of the
Delaware General Corporation Law, each Stockholder hereby agrees to vote the
shares of Voting Stock registered in its name or the names of their nominees in
the manner set forth herein.

         (b)      BOARD OF DIRECTORS DESIGNEES.

                  (i)      CLE DESIGNEES. Until CLE or any of its Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by it on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has a proportionate
         effect on the beneficial ownership of all other Stockholders), CLE
         shall have the right to designate in writing up to two nominees for
         election to the Board of Directors as Class A Directors at each of the
         Company's annual or special meetings of stockholders at which directors
         are to be elected ("CLE DESIGNEES"), such that after giving effect to
         such election the number of Class A Directors being CLE Designees shall
         be not more than two.

                  (ii)     LOMAX DESIGNEES. Until Lomax or any of his Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by him on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has a proportionate
         effect on the beneficial ownership of all other Stockholders), Lomax
         shall have the right to designate in writing up to two nominees for
         election to the Board of Directors as Class A Directors at each of the
         Company's annual or special meetings of stockholders at which directors
         are to be elected ("LOMAX DESIGNEES"), such that after giving effect to
         such election the number of Class A Directors being Lomax Designees
         shall be not more than two.

                  (iii)    NEW INVESTOR DESIGNEE. Until the New Investors or any
         of their Permitted Transferees ceases to be a Stockholder (or ceases to
         have beneficial ownership of at least a majority of the shares of Stock
         held by it on the Effective Date, unless the reduction of such
         beneficial ownership below such amount results from an event which has
         a proportionate effect on the beneficial ownership of all other
         Stockholders), the New Investors, in such manner as they may determine
         among themselves, shall have the right to designate in writing up to
         one nominee for election to the Board of Directors as a Class A
         Director at each of the Company's annual or special meetings of
         stockholders at which directors are to be elected ("NEW INVESTORS
         DESIGNEE"), such that after giving effect to such

<PAGE>

                                                                             29

         election the number of Class A Directors being a New Investors Designee
         shall be not more than one.

                  (iv)     DUGGIN DESIGNEE. Until Duggin or any of his Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by him on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has a proportionate
         effect on the beneficial ownership of all other Stockholders), Duggin
         shall have the right to designate in writing up to one nominee for
         election to the Board of Directors as a Class A Director at each of the
         Company's annual or special meetings of stockholders at which directors
         are to be elected ("DUGGIN DESIGNEE"), such that after giving effect to
         such election the number of Class A Directors being a Duggin Designee
         shall be not more than one.

                  (v)      RIOS DESIGNEE. Until Rios or any of his Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by him on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has a proportionate
         effect on the beneficial ownership of all other Stockholders), Rios
         shall have the right to designate in writing up to one nominee for
         election to the Board of Directors as a Class A Director at each of the
         Company's annual or special meetings of stockholders at which directors
         are to be elected ("RIOS DESIGNEE"), such that after giving effect to
         such election the number of Class A Directors being a Rios Designee
         shall be not more than one.

                  (vi)     SWEELY DESIGNEE. Until Sweely or any of his Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by him on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has a proportionate
         effect on the beneficial ownership of all other Stockholders), Sweely
         shall have the right to designate in writing up to one nominee for
         election to the Board of Directors as a Class A Director at each of the
         Company's annual or special meetings of stockholders at which directors
         are to be elected ("SWEELY DESIGNEE") such that after giving effect to
         such election the number of Class A Directors being a Sweely Designee
         shall be not more than one.

         (c)      BEST EFFORTS TO ELECT BOARD OF DIRECTORS DESIGNEES. In the
event that any nominee or nominees are designated pursuant to Section 7(b)
hereof, the Stockholders shall use their best efforts to elect as directors the
individuals designated in accordance with this Section. The voting agreements
herein are coupled with an interest and may not be revoked and amended except as
set forth in this Agreement; provided that the benefits and obligations of such
voting agreement are not transferable other than to a Permitted Transferee.

<PAGE>

                                                                             30

         (d)      REMOVAL OF DESIGNEES. If any director shall be removed from
the Board of Directors, each party hereto shall use their best efforts to elect
as a substitute director an individual (other than the individual so removed)
designated by the Stockholder who designated the director so removed.

         (e)      BOARD OF DIRECTORS VACANCIES. If a vacancy on the Board of
Directors arises for any reason other than any increase in the size of the Board
of Directors, each party hereto shall use their best efforts to fill such
vacancy with an individual designated by the Stockholder who designated the
director whose absence created the vacancy.

         (f)      COMMITTEE DESIGNEES.

                  (i)      AUDIT COMMITTEE. Until the New Investors or any of
         their Permitted Transferees ceases to be a Stockholder (or ceases to
         have beneficial ownership of at least a majority of the shares of Stock
         held by it on the Effective Date, unless the reduction of such
         beneficial ownership below such amount results from an event which has
         proportionate effect on the beneficial ownership of all other
         Stockholders), the New Investors and their Permitted Transferees shall
         have the right to have the New Investors Designee who has been elected
         to the Board of Directors in accordance with Section 7(b)(iii) serve as
         a member of the Audit Committee. Until CLE or any of its Permitted
         Transferees ceases to be a Stockholder (or ceases to have beneficial
         ownership of at least a majority of the shares of Stock held by it on
         the Effective Date, unless the reduction of such beneficial ownership
         below such amount results from an event which has proportionate effect
         on the beneficial ownership of all other Stockholders), CLE shall have
         the right to have one CLE Designee who has been elected to the Board of
         Directors serve as a member of the Audit Committee. Until Lomax or any
         of his Permitted Transferees ceases to be a Stockholder (or ceases to
         have beneficial ownership of at least a majority of the shares of Stock
         held by him on the Effective Date, unless the reduction of such
         beneficial ownership below such amount results from an event which has
         proportionate effect on the beneficial ownership of all other
         Stockholders), Lomax shall have the right to have one Lomax Designee
         who has been elected to the Board of Directors serve as a member of the
         Audit Committee.

                  (ii)     COMPENSATION COMMITTEE. Until the New Investors or
         any of their Permitted Transferees cease to be a Stockholder (or ceases
         to have beneficial ownership of at least a majority of the shares of
         Stock held by it on the Effective Date, unless the reduction of such
         beneficial ownership below such amount results from an event which has
         proportionate effect on the beneficial ownership of all other
         Stockholders), the New Investors and their Permitted Transferees shall
         have the right to have the New Investors Designee who has been elected
         in accordance with Section 7(b)(iii) to the Board of Directors serve as
         a member of the Compensation Committee. Until CLE or any of its
         Permitted Transferees ceases to be a Stockholder (or ceases to have
         beneficial ownership of at least a majority of the shares of Stock held
         by it on the Effective Date, unless the

<PAGE>
                                                                              31

        reduction of such beneficial ownership below such amount results from an
        event which has proportionate effect on the beneficial ownership of all
        other Stockholders), CLE shall have the right to have one CLE Designee
        who has been elected to the Board of Directors serve as a member of the
        Compensation Committee. Until Lomax or any of his Permitted Transferees
        ceases to be a Stockholder (or ceases to have beneficial ownership of at
        least a majority of the shares of stock held by him on the Effective
        Date, unless the reduction of such beneficial ownership below such
        amount results from an event which has proportionate effect on the
        beneficial ownership of all other Stockholders), Lomax shall have the
        right to have one Lomax Designee who has been elected to the Board of
        Directors serve as a member of the Compensation Committee.

                (iii)   EXECUTIVE COMMITTEE. Until Lomax or any of his Permitted
        Transferees ceases to be a Stockholder (or ceases to have beneficial
        ownership of at least a majority of the shares of Stock held by him on
        the Effective Date), Lomax shall have the right to designate one Lomax
        Designee who has been elected to serve on the Board of Directors to
        serve as a member of the Executive Committee of the Board of Directors.

        (g)     BEST EFFORTS TO APPOINT COMMITTEE DESIGNEES. In the event that
any nominee or nominees are designated pursuant to Sections 7(f)(i), 7(f)(ii) or
7(f)(iii) hereof, each party hereto shall use its best efforts to cause such
nominees to be appointed to the Audit Committee, Compensation Committee or
Executive Committee, as applicable, of the Board of Directors. If at any time a
designee designated by the New Investors, CLE or Lomax pursuant to Sections
7(f)(i), 7(f)(ii) or 7(f)(iii) hereof is unable or unwilling to continue his
service on the Audit Committee, the Compensation Committee, or the Executive
Committee, as applicable, the New Investors, CLE or Lomax, as applicable, shall
designate a successor designee to serve on the Audit Committee, the Compensation
Committee or the Executive Committee, as applicable, and each party hereto shall
use its best efforts to cause such designee to be appointed to the Audit
Committee, Compensation Committee, or the Executive Committee, as applicable, of
the Board of Directors.

        (h)     MANAGEMENT COMPANY DESIGNEES. Until the New Investors or any of
their Permitted Transferees cease to be a Stockholder (or ceases to have
beneficial ownership of at least a majority of the shares of Stock held by it on
the Effective Date, unless the reduction of such beneficial ownership below such
amount results from an event which has proportionate effect on the beneficial
ownership of all other Stockholders), the New Investors and their Permitted
Transferees shall have the right to have the New Investors Designee elected in
accordance with Section 7(b)(iii) to serve on the Board of Directors of any
Subsidiary of the Company which provides management services to the Company or
any other Subsidiary of the Company. Until CLE or any of its Permitted
Transferees ceases to be a Stockholder (or ceases to have beneficial ownership
of at least a majority of the shares of Stock held by it on the Effective Date,
unless the reduction of such beneficial ownership below such amount results from
an event which has proportionate effect on the beneficial ownership of all other
Stockholders), CLE shall have the right to have one CLE Designee serve on the
Board of Directors of any Subsidiary of the Company

<PAGE>

                                                                              32

which provides management services to the Company or any other Subsidiary of the
Company. Until Lomax or any of his Permitted Transferees ceases to be a
Stockholder (or ceases to have beneficial ownership of at least a majority of
the shares of Stock held by it on the Effective Date, unless the reduction of
such beneficial ownership below such amount results from an event which has
proportionate effect on the beneficial ownership of all other Stockholders),
Lomax shall have the right to have two Designees serve on the Board of Directors
of any Subsidiary of the Company which provides management services to the
Company or any other Subsidiary of the Company.

SECTION 8. COVENANTS OF THE COMPANY

        (a)     CORPORATE EXISTENCE AND LICENSES. The Company shall do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence, and all licenses, permits, authorizations, approvals
and consents and other corporate rights, franchises and permits which are
required to properly operate the Company's businesses, provided, however, that
nothing in this Section 8(a) shall (i) prevent the abandonment or termination of
the Company's or any Subsidiary's authorization to do business in any foreign
state or jurisdiction, if, in the opinion of the Board of Directors, such
abandonment or termination is in the best interest of the Company or such
Subsidiary or (ii) require compliance with any law so long as the validity or
applicability thereof shall be disputed or contested in good prevent the Company
from effecting a merger, consolidation or voluntary dissolution upon obtaining
the required approval, if any, of the Board of Directors and/or the
Stockholders. The Company shall do or cause to be done all things necessary to
obtain and maintain any other license, permit, authorization, approval and
consent necessary to operate its businesses.

        (b)     INDEPENDENT PUBLIC ACCOUNTANTS. During the term of this
Agreement, the Company shall retain as its independent public accountants an
independent public accounting firm of nationally recognized standing which is
generally acknowledged by the business community to be one of the "BIG SIX"
national public accounting firms.

        (c)     PAYMENT OF TAXES; MAINTENANCE OF PROPERTIES. The Company shall
and shall cause each Subsidiary to:

                (i)     (A) pay and discharge promptly, or cause to be paid and
        discharged promptly, when due and payable, all taxes, assessments and
        governmental charges or levies imposed upon it or upon its income or
        upon any of its Property or upon any part thereof, as well as all claims
        of any kind (including claims for labor, materials and supplies); (B)
        withhold all monies required to be withheld by the Company from
        employees for income taxes, Social Security and unemployment insurance
        taxes; and (C) complete and file, on a timely basis, all tax returns and
        reports required to be filed by it; provided, however, that the Company
        shall not be required to pay, or to cause any Subsidiary to pay, any
        tax, assessment, charge, levy or claim if the amount, applicability or
        validity thereof shall currently be contested in good faith by
        appropriate proceedings and if the

<PAGE>

                                                                              33

        Company or such Subsidiary shall have set aside on its books reserves
        (segregated to the extent required by generally accepted accounting
        principles) deemed by the Company adequate with respect thereto; and

                (ii)    maintain and keep, or cause to be maintained and kept,
        its Property in good repair, working order and condition, and from time
        to time make, or cause to be made, all repairs, renewals and
        replacements which, in the opinion of the Board of Directors, are
        necessary and proper so that the business carried on in connection
        therewith may be properly and advantageously conducted at all times;
        provided, however, that nothing in this Section 8(c)(ii) shall prevent
        the Company or any Subsidiary from selling or otherwise disposing of any
        Property either (y) having a value at the time of sale or disposal of
        less than $100,000 or (z) whenever in the good faith judgment of the
        Company's management such Property is obsolete, worn out, without
        economic value, or unnecessary for the conduct of the business of the
        Company or such Subsidiary.

        (d)     INSURANCE. To the extent required by the activities undertaken
by such entity the Company shall and shall cause each Subsidiary to:

                (i)     Maintain in effect at all times insurance in such types
        and for such risks, casualties and contingencies customarily insured
        against by enterprises in operations similar to the business of the
        Person, including, without limitation, coverage for liability associated
        with (A) credentialling by such Person and its utilization review and
        quality assurance programs, (B) damage to insurable Property due to loss
        or damage by fire and other risks and (C) claims for personal injury,
        death or property damage suffered by others upon or in or about any
        premises occupied by such Person or arising from equipment owned by it
        and leased to and located upon or in or about any premises occupied by
        any other person; and

                (ii)    Maintain all such workers' compensation or similar
        insurance as may be required under the laws of any state or jurisdiction
        in which it may be engaged in business.

All insurance for which provision has been made in this Subsection 8(d) shall be
maintained against such risks and in at least such amounts as such insurance is
usually carried by Persons engaged in the same or similar businesses, and all
insurance herein provided for shall be effected and maintained in force under a
policy or policies issued by insurers of recognized responsibility who have
maintain a rating of A or better from A.M. Best Company, Inc., except that the
Company or a Subsidiary may effect workers' compensation or similar insurance in
respect of operations in any state or other jurisdiction either through an
insurance fund operated by such state or other jurisdiction or by causing to be
maintained a system or systems of self-insurance which is in accord with
applicable laws.

<PAGE>

                                                                              34

        (e)     PAYMENT OF INDEBTEDNESS, ETC. The Company shall and shall cause
each Subsidiary to:

                (i)     Pay or cause to be paid the principal of, and the
        interest and premium, if any, on, all Indebtedness heretofore or
        hereafter incurred or assumed by the Company or such Subsidiary, as the
        case may be, when and as the same shall become due and payable, unless
        such Indebtedness shall be renewed or extended, in which case such
        payments shall be made in accordance with the terms of such renewal or
        extension;

                (ii)    Faithfully observe, perform and discharge in all
        material respects all the material covenants, conditions and obligations
        which are imposed on it by any and all material indentures, agreements
        or instruments securing or evidencing Indebtedness or pursuant to which
        Indebtedness is issued, and not permit the occurrence or continuance of
        any act or omission which is or under the provisions thereof may be
        declared to be a material default thereunder, unless such default (other
        than a default in payment of principal or interest) or the right to
        declare a default on account of such act or omission is waived pursuant
        to the provisions thereof; provided, however, that neither the Company
        nor any Subsidiary shall be required to make any payment or to take any
        other action by reason of this Subsection (ii) at any time while it
        shall be currently contesting in good faith by appropriate proceedings
        its obligations to make such payment or to take such action, if the
        Company shall have set aside on its books reserves (segregated or
        classified to the extent required by generally accepted accounting
        principles) deemed by it adequate with respect thereto;

                (iii)   Not violate any provision of its Certificate of
        Incorporation or By-laws, as amended from time to time, or any material
        provision of any judgment, writ, decree, order, statute, rule or
        governmental regulation or approval applicable to the Company or such
        Subsidiary, or any material provision of any material contract,
        agreement, indenture, mortgage, lien, lease, sublease or arbitration
        award to which the Company or such Subsidiary is a party, by which it is
        bound or to which any of its Property is subject; and

                (iv)    Not redeem, retire, purchase or acquire, directly or
        indirectly through Subsidiaries or otherwise, any shares of any class or
        series of Stock of the Company except as provided in or contemplated by
        this Agreement or the Certificate of Incorporation.

        (f)     FINANCIAL STATEMENTS AND INFORMATION. Until such time as there
has been a closing of an Initial Public Offering, the Company shall furnish to
each Stockholder upon request (on a consolidated basis at such times as
subsidiaries shall exist):

                (i)     ANNUAL BUDGET. Not less than 30 days prior to the
        commencement of each fiscal year of the Company, a copy of the Annual
        Budget.

<PAGE>
                                                                              35

                (ii)    MONTHLY FINANCIAL STATEMENTS AND REPORTS. Within 30 days
        after the end of each calendar month, a balance sheet of the Company as
        of the end of such quarter, together with related statements of
        operations and a comparison to the Annual Budget.

                (iii)   QUARTERLY FINANCIAL STATEMENTS AND REPORTS. Within 30
        days after the end of each fiscal quarter, a balance sheet of the
        Company as of the end of such quarter, together with related statements
        of operations, changes in shareholders' equity and cash flows for such
        quarter and year-to-date, prepared in accordance with generally accepted
        accounting principles consistently applied (except that such statements
        need not contain footnotes) and certified by the principal accounting
        officer or controller, or their equivalent, of the Company, subject to
        usual year-end audit adjustments.

                (iv)    ANNUAL FINANCIAL STATEMENTS AND REPORTS. Within 120 days
        after the last day of each fiscal year of the Company, a copy of its
        audit report containing a balance sheet of the Company at the end of the
        fiscal year, together with related statements of operations, changes in
        shareholders' equity and cash flows for such fiscal year, prepared in
        accordance with generally accepted accounting principles consistently
        applied, all examined by and accompanied by a certificate of opinion of
        the Company's independent public accountants, and together, if one or
        more Subsidiaries exist, with consolidating statements, which need not
        be certified, which set forth the eliminations of intercorporate items.
        At such times as the statements referred to in paragraphs (iii) and (iv)
        of this Section 8(f) are furnished, the Company, will also furnish
        corresponding statements with respect to each Subsidiary, if any, not
        consolidated in the consolidated statements, and a comparison to the
        Annual Budget for such period.

                (v)     REPORTS OF AUDITORS. Promptly upon receipt thereof, a
        copy of each report or management letter, if any, submitted to the
        Company or any of its Subsidiaries by independent public accountants in
        connection with each annual audit (and any other audit which may be
        performed) of the books of the Company or any Subsidiary made by such
        accountants.

                (vi)    ADDITIONAL INFORMATION. The Company will also provide
        prompt notice of (i) any investigation by any federal or state
        governmental or regulatory agency in connection with which the Company
        or any Subsidiary or any of their directors or executive officers is
        identified as an object of such investigation, (ii) any complaint or
        proceeding instituted against the Company or any Subsidiary or any of
        their directors or executive officers by any federal or state
        governmental or regulatory agency and (iii) any other action at law or
        suit in equity involving a claim or claims against the Company or any
        Subsidiary or any of their directors or executive officers which, if
        concluded adversely to the Company or such Subsidiary, could give rise
        to damages in excess of $100,000 in the aggregate or

<PAGE>

                                                                              36

        could otherwise materially adversely affect the business or Property of
        the Company or of such Subsidiary.

                (vii)   CERTIFICATE OF INDEPENDENT PUBLIC ACCOUNTANTS. At such
        times as the statements referred to in Section 8(f)(iv) are furnished,
        the Company shall also furnish a certificate of the independent public
        accountant whose certificate or opinion accompanies such statements
        stating that nothing has come to his attention which would cause him to
        believe that any condition, event or fact exists which would constitute
        or which, with notice or passage of time or both would constitute, a
        violation which has not previously been disclosed by a prior certificate
        of the principal financial officer or controller, or their equivalent,
        of any of the then applicable covenants of the Company contained herein;
        provided, however, that if any such violation exists, such certificate
        shall specify the nature and period of existence of such violation; and
        provided, further, that such certificate may state that tests of the
        accounting records and other auditing procedures conducted with respect
        to the Company and its Subsidiaries might, but would not necessarily,
        reveal that such violations exist or that no violations exist. The
        Company covenants that, upon obtaining knowledge of any such violation,
        it will promptly deliver a certificate of its principal financial
        officer or controller, or their equivalent, specifying the nature
        thereof, the period of existence thereof, and what action the Company
        proposes to take with respect thereto.

        (g)     DISCUSSION AND INSPECTION RIGHTS. The Company shall permit any
Stockholder who, alone or when aggregated with the holdings of its Affiliates,
owns not less than 5% of the then existing Stock and any Person designated from
time to time by any such Stockholder, at such Stockholder's expense, to discuss
the affairs, finances and accounts of the Company and its Subsidiaries with the
Company's directors, officers, other principal executives and independent
accountants, and those of its Subsidiaries, all at such reasonable times and as
often as such Stockholder may reasonably request; all books, documents,
financial records and vouchers relating to the business and affairs of the
Company and its Subsidiaries shall at all reasonable times be open to inspection
either by such Stockholder or such accountant or other Person as shall from time
to time be designated by such Stockholder, who may make such copies thereof or
extracts therefrom as such Stockholder reasonably deems appropriate; and all
facilities of the Company and its Subsidiaries shall at all reasonable times be
open to inspection by such Stockholder or such Person as shall from time to time
be designated by such Stockholder.

        (h)     TAX TREATMENT OF DIVIDENDS. So long as any Preferred Stock or
Common Stock acquired pursuant to the Reorganization Agreement is outstanding,
the Company shall:

                (i)     Treat the shares of Preferred Stock and Common Stock as
        stock and not as Indebtedness, and treat the dividends paid (or accrued)
        with respect to the shares of Preferred Stock or Common Stock as
        distributions with respect to stock, and not as interest;

<PAGE>
                                                                              37

                (ii)    Not take any action which could reasonably be expected
        by it (A) to require or permit the Company to treat the dividends paid
        with respect to the Preferred Stock or Common Stock as interest for any
        purpose, (B) to cause the Preferred Stock or Common Stock to be treated
        as indebtedness for purposes of Section 385 of the Code or any successor
        provision of the Code and the regulations promulgated thereunder or (C)
        to cause the dividends received deduction under section 243 of the Code
        (the "DIVIDENDS RECEIVED DEDUCTION") to cease to be available, in whole
        or in part, with respect to dividends on the Preferred or Common
        received by any corporate Stockholder;

                (iii)   Without limiting the generality of Section 8(h)(ii), (A)
        not claim a deduction for dividends paid on the Preferred Stock or
        Common Stock whether as interest or otherwise, in any federal income tax
        return, claim for refund of federal income tax or other submission to
        the Internal Revenue Service and (B) unless required to do so by
        generally accepted accounting principles, not treat the Preferred Stock
        or Common Stock other than as equity capital or the dividends paid
        thereon other than as dividends paid on capital in any report to
        shareholders or any governmental body having jurisdiction over the
        Company or otherwise;

                (iv)    Not exercise any option or election that may at any time
        be available under the Code or otherwise to deduct all or part of any
        dividend paid with respect to the shares of Preferred Stock if so doing
        would increase the amount of such dividend includible for federal, state
        or local income tax purposes in the income of any corporate Stockholder
        of shares of Preferred Stock or Common Stock; and

                (v)     At the request of any corporate Stockholder, join with
        such Stockholder in the submission to the Internal Revenue Service of a
        request for a ruling that dividends paid on the Preferred Stock will be
        eligible for the Dividends Received Deduction for federal income tax
        purposes; in addition, the Company shall cooperate with and support any
        corporate Stockholder in any litigation, appeal or other proceeding
        challenging or contesting any ruling, technical advice, finding or
        determination of the Internal Revenue Service that dividends paid on the
        Preferred Stock are to be treated as Indebtedness for purposes of the
        Code or are not eligible for the Dividends Received Deduction. The
        cooperation and support required of the Company by the preceding
        sentence shall be at the expense of such corporate Stockholder, except
        that the Company will pay all fees and expenses (whether incurred by it
        or a corporate Stockholder) in connection with any such submission,
        litigation, appeal or other proceeding necessitated or caused by a
        breach by the Company of its covenants contained in this Section 8(h).

        (i)     NOTICE OF CLAIMED DEFAULT OR DEFICIENCY. Until such time as
there shall have been a closing of an Initial Public Offering, the Company,
within ten days after receiving notice of a default or deficiency in excess of
$100,000 from, or being served with a complaint in law or in equity by, the
holder of any Indebtedness or other Security of the

<PAGE>
                                                                              38

Company or any Subsidiary, or a party to any agreement to which the Company or
any Subsidiary is a party or otherwise bound which calls for payments by or to
the Company or such Subsidiary in an aggregate amount in excess of $100,000,
with respect to a claimed default or event of default or claimed deficiency
thereunder, shall furnish to each Stockholder a written notice specifying the
notice given or action taken by such Person, as the case may be, and the nature
of the claimed default or event of default or claimed deficiency and what action
the Company is taking or proposes to take with respect thereto.

        (j)     ATTENDANCE AT BOARD OF DIRECTORS MEETINGS. Until such time as
there shall have been a closing of an Initial Public Offering, the Company shall
furnish each Stockholder who, alone or when aggregated with the holdings of its
Affiliates, owns not less than 5% of the then existing Stock with notice of each
meeting of the Board of Directors and of each meeting of the Board of Directors
of each Subsidiary at the same time as such notice is given by the Company or
such Subsidiary, as the case may be, to the members of the Board of Directors of
such Subsidiary, and each such Stockholder or a Person designated by any such
Stockholder may attend any such meeting as an observer. Until such time as there
shall have been a closing of an Initial Public Offering, the Company shall also
furnish each such Stockholder with copies of all actions of the Board of
Directors of each Subsidiary taken without a meeting, whether by written consent
or otherwise, and of all written communications from the Company or its
management to the Board of Directors or from the Company or the management of
any Subsidiary to the Board of Directors of such Subsidiary and all written
documents distributed at or in connection with any meeting of the Board of
Directors of any Subsidiary concurrently with the distribution of such materials
to the directors.

        (k)     BLUE SKY. If, at any time any Stockholder converts any share of
Preferred Stock and the issuance of Conversion Stock upon such conversion may
not be lawfully made without the registration or qualification of such
Conversion Stock under the securities or blue sky laws of any jurisdiction, the
Company shall promptly use its best efforts to effect such registration or
qualification and such action shall not count as a registration under Section 6.
The Company shall make any and all filings necessary (whether before or after
the Effective Date) in connection with the offer, issuance and sale and/or
transfer of the Preferred Stock and Common Stock to be purchased pursuant to
this Agreement under the securities or blue sky laws of the State of Delaware
and any other jurisdiction in which such filing is required by law.

        (l)     COMPLIANCE WITH LAWS. The Company shall and shall cause its
Subsidiaries to comply in all material respects with all laws of any
jurisdiction or rules or regulations of any federal, state or local government
or government department, agency, board, commission, bureau or instrumentality
which are applicable to the Property, business or operations of the Company and
its Subsidiaries.

        (m)     FILING OF COMMISSION REPORTS; RULE 144 REQUIREMENTS. If the
Company becomes subject to the reporting requirements of either Section 13 or
15(d) of the Exchange Act, the Company will use its best efforts thereafter to
file with the Securities and Exchange Commission such information as is
specified under either of said Sections

<PAGE>
                                                                              39

for so long as there are holders of Registrable Stock; and in such event, the
Company shall use its best efforts to take all action as may be required as a
condition to the availability of Rule 144 under the Securities Act (or any
comparable successor rules). The Company shall furnish to any holder of
Registrable Stock upon request a written statement executed by the Company as to
the steps it has taken to comply with the current public information requirement
of Rule 144 (or such comparable successor rules). After the occurrence of the
first underwritten public offering of Common Stock of the Company pursuant to an
offering registered under the Securities Act on Form S-1 or Form SB-1 (or any
comparable successor forms), subject to the limitations on transfers imposed by
this Agreement, the Company shall use its commercially reasonable best efforts
to facilitate and expedite transfers of Registrable Stock pursuant to Rule 144
under the Securities Act, which efforts shall include timely notice to its
transfer agent to expedite such transfers of Registrable Securities.

        (n)     TRANSACTIONS WITH AFFILIATES. The Company shall not, nor shall
it permit any Subsidiary to, engage in any transaction or otherwise deal with
any director, officer or shareholder of the Company or any Subsidiary, or any of
their respective Affiliates, except in transactions comparable to those which
the majority of disinterested directors determines (such determination to be
evidenced by a duly adopted resolution) would be available to the Company on an
arm's length basis. For purposes of this paragraph, in addition to any
interpretation of the requirements for a "DISINTERESTED DIRECTOR" under Delaware
law, reference shall be made to the type of transaction contemplated and the
effect or likelihood of similar transactions involving one or more otherwise
disinterested directors in the foreseeable future.

        (o)     SUBSIDIARIES. Obligations set forth in this Section 8 with
respect to Subsidiaries shall be applicable only at such times, if any, that one
or more Subsidiaries shall be in existence.

        (p)     EXPENDITURES. Until such time as there shall have been a closing
of an Initial Public Offering, the Company shall not, and shall not permit any
subsidiary to, make or commit to make expenditures other than in the ordinary
course of business without the prior approval of the majority of the Board of
Directors, evidenced by a duly adopted resolution.

        (q)     MAINTENANCE OF CONTRACTS. Until such time as there has been a
closing of an Initial Public Offering or the Company shall use commercially
reasonable efforts to do or cause to be done all things necessary to preserve
and keep in full force and effect the Contracts. The Company shall at all times
act in accordance with the terms of the Contracts and shall not breach or fail
to fulfill its obligations under the Contracts.

        (r)     DISPOSAL OF ASSETS. No Subsidiary of the Company shall sell,
transfer, assign or encumber all or substantially all of its assets without the
prior approval of a majority vote of the Stockholders, voting as one class.

<PAGE>
                                                                              40

SECTION 9.  OPTIONS

        (a)     Prior to issuing any additional shares of New Stock other than
upon conversion of any outstanding shares of Stock into another class or series
of Stock in accordance with the Company's Certificate of Incorporation), the
Company shall provide written notice to the New Investors and CLE specifying the
number and the price per share to be paid for such Stock (the "PROPOSED
ISSUANCE"). The New Investors and CLE shall each have the option, exercisable
within thirty (30) days after receipt by each of them of such notice, to acquire
from the Company an amount of the New Stock equal to the greater of (i) the
Protected Number of New Stock for such Stockholder or (ii) an amount of New
Stock in an aggregate amount such that after giving effect to such purchase each
New Investor and its Permitted Transferees will own the percentage of capital
stock set forth on Schedule 9 hereto and CLE and its Permitted Transferees will
own twenty percent (20%), respectively, of the then existing capital stock of
the Company (calculated on a fully diluted, as converted basis). The per share
price to be paid by the New Investors and CLE for such additional Series A
Common Stock shall equal the per share price to be paid in connection with the
Proposed Issuance. To the extent one or more of the New Investors or CLE elect
not to purchase the full amount of New Stock that they are entitled to purchase
pursuant to this Section 9 such Stockholder must provide written notice to the
other Stockholders entitled to purchase New Stock pursuant to this Section 9
within thirty (30) days after receipt of the Proposed Issuance. Within ten (10)
days of receipt of such additional notice, the other Stockholders who have
elected to purchase New Stock pursuant to the Proposed Issuance (the
"PARTICIPATING STOCKHOLDERS") shall be entitled to purchase more New Stock as
set forth in a written notice to the Company by such Participating Stockholders
(the total aggregate additional amount of New Stock subscribed for by the
Participating Stockholders is hereinafter referred to as the "AGGREGATE
ADDITIONAL AMOUNT"); provided, however, that to the extent the Aggregate
Additional Amount exceeds the amount of New Stock then available for purchase by
the New Investors and CLE ("NEW INVESTORS NEW STOCK") pursuant to this Section 9
each of such Stockholders shall be entitled to purchase up to that number of New
Investors New Stock in the same proportion as the ratio, as of such date of (i)
the total number of shares of Common Stock outstanding or issuable upon
conversion of Convertible Securities or upon exercise of any warrants, vested
options or subscription rights then owned by such New Investor or CLE, as the
case may be, to (ii) the number of shares of all classes of Common Stock then
outstanding or then issuable upon conversion of any Convertible Securities or
upon exercise of any warrants, vested options or subscription rights then held
by all New Investors or CLE, as the case may be, exercising their right to
purchase New Investors New Stock.

        (b)     Any New Stock purchased by the New Investors or CLE pursuant to
this Section 9, shall have the same economic terms as the New Stock concurrently
being issued by the Company, including, without limitation, similar terms for
conversion or exercise. The New Investors and CLE acknowledge and agree that
each of them shall not have the right to exercise any right of conversion or
exercise of any New Stock until such time as a proportionate amount of New Stock
held by individuals other than the New Investors and CLE exercise such right.

<PAGE>
                                                                              41

        (c)     Upon the exercise of such option by the New Investors or CLE, a
closing of such transaction shall occur on the tenth (10th) business day after
such notice has been given by the New Investors or CLE, as the case may be, at
the main offices of the Company. At such closing, the New Investors or CLE, as
the case may be, shall pay the appropriate price to the Company by wire transfer
of immediately available funds to an account designated by the Company, against
delivery by the Company of certificates representing the appropriate number of
shares of Stock.

        (d)     Notwithstanding anything herein to the contrary, if the New
Investors or CLE fail to exercise any option available within the period
provided in Section 9(e), such Person shall have no further rights relating to
such Proposed Issuance.

        (e)     Each of the Stockholders having a right to purchase New Stock
pursuant to this Section 9 may transfer its rights and obligations under this
Section 9 to any transferee of Securities held by such Stockholder so long as
the transfer to the transferee is accomplished pursuant to the terms of this
Agreement. Upon any transfer in accordance with the preceding sentence, for all
purposes under this Section 9 unless expressly indicated to the contrary, the
transferee shall be deemed to be a "STOCKHOLDER," but only to the extent that
the transferor was included within each such definition. At the time of any
transfer in accordance with this Section 9, the transferor shall provide notice
to the Company specifying the name and address of the transferee, the effective
date of the transfer, the number of Securities so transferred, a statement that
such transfer satisfies all of the provisions of this agreement and a statement
that rights are being transferred in accordance with this Section 9, provided
that the transferee agrees in writing for the benefit of the Company and the
other Stockholders to be bound by all provisions of this Section 9 to the same
extent as was the transferor prior to such transfer.

SECTION 10. AMENDMENT AND TERMINATION (a) This Agreement may be altered,
amended, modified, terminated or extended, in whole or in part, at any time and
from time to time, but only by a writing approved and executed by the Company
and Stockholders then owning:

                (I)     two-thirds of the then issued and outstanding shares of
        each of (A) the Series A Common Stock (other than the New Investors) and
        the Preferred Stock voting as a single class (B) the Series B Common
        Stock and (C) the New Investors; or

                (II)    a majority of the then issued and outstanding shares of
        each of the (A) the Series A Common Stock (other than the New Investors)
        and the Preferred Stock voting as a single class (B) the Series B Common
        Stock and (C) the New Investors, if such alteration, amendment,
        modification or termination is effected in conjunction with a private
        placement of more than ten percent (10%) of the then existing capital
        stock of the Company (calculated on a fully diluted, as converted basis)
        or a Change-in-Control Transaction.

<PAGE>
                                                                              42

In addition, except for the provisions of Section 6, this Agreement shall
automatically terminate upon the first to occur of the following events:

                (i)     the effective date of the Initial Public Offering;

                (ii)    the consummation of the sale of substantially all of the
        assets of the Company or of the consolidation or merger of the Company
        in which the Company is not the surviving entity;

                (iii)   the date on which any one (1) Stockholder acquires all
        of the Common Stock; or

                (iv)    the tenth anniversary of the date hereof; provided, that
        the term of this Agreement may be extended for an additional 10 year
        term if such extension is in compliance with Section 218 of the Delaware
        General Corporation Law.

        (b)     Notwithstanding the foregoing subsection (a), the provisions
regarding the rights of Stockholders to register Stock set forth in Section 6
hereto shall continue in full force and effect until the earlier to occur of the
fifth anniversary date of (i) the date of the effectiveness of the Initial
Public Offering and (ii) the date the Company became subject to the reporting
requirements of the Exchange Act pursuant to Sections 13(a) or 15(d) of such
law.

SECTION 11.  INDEMNIFICATION; CONTRIBUTION

        In each and every circumstance in which the provisions of section 6(e)
are inapplicable, the following provisions of this Section shall apply:

        (a)     The Company shall, to the fullest extent permitted by law, and
in addition to any such rights which any Indemnified Investor (as defined below)
may have pursuant to statute, the Certificate of Incorporation, or the By-laws
of the Company, or otherwise, indemnify and hold harmless each New Investor
(including its respective directors, officers, partners, employees and agents,
each an "INDEMNIFIED INVESTOR") and each person (a "Controlling Person" and
collectively with Indemnified Investors, the "Indemnified Parties") who controls
any of them within the meaning of Section 15 of the Securities Act, or Section
20 of the Exchange Act, from and against any and all losses, claims, damages,
expenses and liabilities, joint or several (including any investigation, legal
and other expenses incurred in connection with, and any amount paid in
settlement of, any action, suit or proceeding or any claim asserted), to which
they, or any of them, may become subject by reason of their representation on
the Board of Directors of the Company by the New Investors Designee; provided,
however, that the Company will not be obligated to provide indemnification to
the New Investors hereunder to the extent that such loss, claim, damage, expense
or liability which gives rise to claim for indemnification hereunder arises from
the gross negligence or willful neglect of the New Investors Designee.

<PAGE>
                                                                              43

        (b)     If the indemnification provided for in Section 11(a) above for
any reason (other than with respect to a claim for indemnification arising from
the act or omission of the New Investor Designee) is held by a court of
competent jurisdiction to be unavailable to an Indemnified Investor in respect
of any losses, claims, damages, expenses or liabilities referred to therein,
then the Company, in lieu of indemnifying such Indemnified Investor thereunder,
shall contribute to the amount paid or payable by such Indemnified Investor as a
result of such losses, claims, damages, expenses or liabilities in such
proportion as is appropriate to reflect the relative fault of the Company and
the New Investors in connection with the action or inaction which resulted in
such losses, claims, damages, expenses or liabilities, as well as any other
relevant equitable considerations. The Company and the New Investors agree that
it would not be just and equitable if contribution pursuant to this Section
11(b) were determined by pro rata or per capita allocation or by any other
method of allocation which does not take into account of the equitable
considerations referred to in the immediately preceding paragraph.

        (c)     The indemnification and contribution provided for in this
Section 11 will remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Investors or any officer, director,
employee, agent or Controlling Person of the Indemnified Investors.

        (d)     Any Indemnified Investor that proposes to assert the right to be
indemnified under this Section 11 will, promptly after receipt of notice of
commencement of any claim or action against such party in respect of which a
claim is to be made against the Company under this Section 11, notify the
Company of the commencement of such action, enclosing a copy of all papers
served, but the omission so to notify the Company will not relieve the Company
from any liability that the Company may have to any Indemnified Investor under
the foregoing provisions of this Section 11 unless, and only to the extent that,
such omission results in the forfeiture of substantive rights or defenses by the
Company. The Indemnified Investor will have the right to retain its own counsel
in any such action and all fees, disbursements and other charges incurred in the
investigation, defense and/or settlement of such action shall be advanced and
reimbursed by the Company promptly as they are incurred; provided, however, that
the Indemnified Investor shall agree to repay any expenses so advanced hereunder
if it is ultimately determined by a court of competent jurisdiction that the
Indemnified Investor to whom such expenses are advanced is not entitled to be
indemnified as a matter of law. The Company shall not settle any action or claim
for which indemnification is sought under this Section 11 without the prior
written consent of the Indemnified Investor.

SECTION 12.  MISCELLANEOUS PROVISIONS

        (a)     BINDING EFFECT. All terms and conditions of this Agreement shall
be conclusive and binding on the Stockholders and their respective heirs,
executors, administrators, personal representatives, successors and permitted
assigns and on the Company and its successors and assigns.

<PAGE>
                                                                              44

        (b)     ADDITIONAL SHARES. The Company shall not issue Stock, or any
right convertible into Stock to any officer, director, employee, agent of, or
consultant to, the Company unless such securities are subject to the
restrictions set forth in this Agreement and such person becomes a party to this
Agreement by executing a counterpart of this Agreement on or before the date of
receipt of such securities.

        (c)     NOTICES. All notices required herein shall be in writing and
shall be deemed to have been given when delivered personally or when deposited
in the mail, prepaid, return receipt requested, addressed as follows, to wit:

                        If to the Company at:

                        AMERICHOICE CORPORATION
                        8045 Leesburg Pike
                        Suite 660
                        Vienna, Virginia 22182
                        Attention: Chairman of the Board of Directors

                        with a copy to:

                        King & Spalding
                        120 West 45th Street
                        New York, New York  10036
                        Attention: E. William Bates, II

                        if to the Existing Stockholders:

                        8045 Leesburg Pike
                        Vienna, Virginia 22182

                        with a copy to:

                        King & Spalding
                        120 West 45th Street
                        New York, New York 10036
                        Attention: E. William Bates, II

                        if to the New Investors:

                        TA Associates, Inc.
                        High Street Tower
                        125 High Street
                        Suite 2500
                        Boston, MA 02210
                        Attention: Robert W. Daly
                                   Richard D. Tadler

<PAGE>
                                                                              45

                        Mellon Bank, N.A., Trustee for
                        First Plaza Group Trust
                        One Mellon Bank Center
                        Pittsburgh, Pennsylvania 15258-0001
                        Attention: Bernadette Rist,
                                   Legal Department

                        with a copy to:

                        Goodwin, Procter & Hoar
                        Exchange Place
                        Boston, MA 02109
                        Attention: Kevin M. Dennis, Esq.

                        and to:

                        General Motors Investment Management
                           Corporation
                        767 Fifth Avenue - 26th Floor
                        New York, NY 10153
                        Attention: Ms. Katie Stokel

                        with a copy to:

                        Robert Cromwell, Esq.
                        General Motors Investment
                           Management Corporation
                        767 Fifth Avenue - 9th Floor
                        New York, NY 10153

if to the Stockholders, addressed to such Stockholders at their addresses as
shown on the books of the Company or its transfer agent, or at such other
addresses as may, from time to time, be given in accordance with the provisions
of this Section.

        (d)     Governing Law. This Agreement shall be governed by, and
interpreted under, the laws of the State of Delaware.

        (e)     Entire Agreement. This Agreement constitutes the entire
agreement and understanding among the parties hereto, and supersedes all prior
agreements and understandings, including the Existing Stockholders' Agreement,
relating to the subject matter hereof.

        (f)     Headings. The descriptive headings set forth in this Agreement
are for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

<PAGE>
                                                                              46

        (g)     Severability. In the event any of the provisions, or portions
thereof, of this Agreement are held to be unenforceable or invalid by any court
of competent jurisdiction, the validity and enforceability of the remaining
provisions, or portions thereof, shall not be affected thereby. Any provisions
so held unenforceable or invalid shall be reformed by such court to reflect the
construction most nearly approximating the intent of such provision which shall
be valid and enforceable, and the parties hereto hereby agree to such provision
as reformed.

        (h)     Execution of Counterparts. This Agreement and any amendment
hereto may be executed in one or more counterparts, each of which shall
constitute an original but all of which together shall constitute but a single
document.

        (i)     Waiver. The terms of this Agreement may be waived by a written
instrument signed by the party waiving compliance. No delay in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any waiver of any such right, power or privilege, or partial exercise thereof,
preclude any further exercise thereof on the exercise of any other such right,
power or privilege.

        [The remainder of this page is intentionally blank.]

<PAGE>

        IN WITNESS WHEREOF, the Stockholders have hereunto set their respective
hands, and the Company has caused this Agreement to be executed by its duly
authorized officers, all on the day and year first above written.

                        AMERICHOICE CORPORATION

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

                        CLE, INC.

                        By:
                           -----------------------------------
                                  Its President

                                  AW FAMILY LIMITED PARTNERSHIP

                                  By:
                                     -----------------------------------
                                  Its General Partner

                                  TRUST FOR BRYANT A. WELTERS

                                  By:
                                     -----------------------------------
                                  TRUSTEE

                                  TRUST FOR ANDREW V. WELTERS

                                  By:
                                     -----------------------------------
                                  TRUSTEE

                                  EGR FAMILY LIMITED PARTNERSHIP

                                  By:
                                     -----------------------------------
                                  Its General Partner

<PAGE>

                                  ANTHONY WELTERS AND BEATRICE WELTERS
                                    as Tenants-   in Common

                                  ----------------------------------
                                  Anthony Welters

                                  ----------------------------------
                                  Beatrice Welters, by Anthony Welters as
                                  Attorney-in-fact

                        --------------------------------------
                                  Edgar Rios

                        --------------------------------------
                                  Jess E. Sweely

                        --------------------------------------
                                  Walter P. Lomax, Jr.

                        --------------------------------------
                                  Andre Duggin

                        TRUST FOR TIFFANY DUGGIN

                        By:
                           ---------------------------------------
                             Edgar G. Rios
                             Trustee

                        TRUST FOR JULIAN V. DUGGIN

<PAGE>

                        By:
                           ---------------------------------------
                             Edgar G. Rios
                             Trustee

                        -----------------------------------------
                                  Walter P. Lomax, Jr., as Guardian
                                  under the Uniform Gift to Minors Act
                                  f/b/o Bennett Lomax

                        WALTER THOMAS LOMAX

                        By:
                           ---------------------------------------------
                                  Walter P. Lomax, Jr., Attorney-In-Fact

<PAGE>

                        CHARLES LOMAX

                        By:
                           ---------------------------------------------
                                  Walter P. Lomax, Jr., Attorney-In-Fact

                        LAURA GAINES

                        By:
                           ---------------------------------------------
                                  Walter P. Lomax, Jr., Attorney-In-Fact

                        SARA LOMAX REESE

                        By:
                           ---------------------------------------------
                                  Walter P. Lomax, Jr., Attorney-In-Fact

                        MARY CLAIRE LOMAX

                        By:
                           ---------------------------------------------
                                  Walter P. Lomax, Jr., Attorney-In-Fact

                        SWEELY HOLDINGS, L.L.C.

                        By:
                           -----------------------------------
                                  Its Manager

PURCHASERS:

                        ADVENT VII L.P.
                        By:       TA Associates VII L.P., its General Partner
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

<PAGE>

                        ADVENT INDUSTRIAL II L.P.
                        By:       TA Associates VI L.P., its General Partner
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

                        ADVENT NEW YORK L.P.
                        By:       TA Associates VI L.P., its General Partner
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

                        ADVENT ATLANTIC AND PACIFIC II L.P.
                        By:       TA Associates AAP II Partners, its General
                                  Partner
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

                        TA VENTURE INVESTORS LIMITED PARTNERSHIP

                        ----------------------------------------
                                  General Partner

                        FIRST PLAZA GROUP TRUST
                        By:       Mellon Bank, N.A., Trustee
                                  (as directed by General Motors Investment
                                  Management Corporation)

<PAGE>

                                  ---------------------------------------
                                  Title:

                        CHESTNUT CAPITAL INTERNATIONAL III LIMITED PARTNERSHIP
                        By:       TA Associates VI L.P., its Attorney-in-Fact
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

                        ADVENT VI L.P.
                        By:       TA Associates VII L.P., its General Partner
                        By:       TA Associates, Inc., its General Partner

                        ----------------------------------------
                        Title:

<PAGE>

                                   SCHEDULE 9

                              OWNERSHIP PERCENTAGE

<TABLE>
<CAPTION>
                                                               Original           Percentage Ownership
New Investor                                           Number of Shares          of Outstanding Shares
<S>                                                    <C>                       <C>
Mellon Bank, N.A.,   Trustee for First Plaza
Group Trust                                                       7,742                          7.500
Advent VII L.P.                                                   4,032                         3.9060
Advent Atlantic and Pacific II L.P.                               1,543                         1.4950
Chestnut Capital International III Limited
Partnership                                                         195                          .1890
Advent New York L.P.                                                504                          .4880
Advent Industrial II L.P.                                           557                           .540
TA Venture Investors Limited Partnership                            104                           .101
Advent VI L.P.                                                      807                           .782
</TABLE><PAGE>

                                   AMERICHOICE

                             AMERICHOICE CORPORATION

                                 1998 STOCK PLAN

        1.      PURPOSE. The purpose of the 1998 Stock Plan (the "Plan") of
AmeriChoice Corporation, Inc., a Delaware corporation (the "Corporation") is to
advance the interests of the Company by enhancing its ability to attract and
retain key employees an consultants who are in a position to contribute to the
Corporation's future growth and success by providing opportunities to
participate in the ownership of the Corporation and its future growth through
Stock Options.

        2.      ADMINISTRATION OF THE PLAN:

        A.      BOARD OR COMMITTEE ADMINISTRATION. The plan shall be
administered by the Committee. Subject to ratification of the grant of each
Option by the Board (if so required by applicable state law), and subject to the
terms of the plan, the Committee shall have the authority to (i) determine to
whom (from among the class of employees eligible under paragraph 3 to receive
ISOs) ISOs shall be granted, and to whom (from among the class of individuals
eligible under paragraph 3 to receive Non-Qualified Stock Options) Non-Qualified
Stock Options may be granted; (ii) determine the time or times at which Options
shall be granted; (iii) determine the purchase price of shares subject to each
Option, which prices shall not be less than the minimum price specified in
paragraph 6; (iv) determine whether each Option granted shall be an ISO or a
Non-Qualified Stock Option; (v) determine (subject to paragraph 7) the time or
times when each Option shall become exercisable and the duration of the exercise
period; (vi) extend the period during which outstanding Options may be
exercised; (vii) determine whether restrictions such as repurchase options are
to be imposed on shares subject to Options and the nature of such restrictions,
if any; and (viii) interpret the Plan and prescribe and rescind rules and
regulations relating to tit and take such other actions in the administration
and operation of the Plan as the Committee deems equitable under the
circumstances. If the Committee determines to issue a Non-Qualified Stock
Option, it shall take whatever actions it deems necessary, under Section 422 of
the Code and the regulations promulgated thereunder, to ensure that such Option
is not treated as an ISO. The interpretation and construction by the Committee
of any provisions of the Plan or of any Option granted under it shall be final.
The Committee may from time to time adopt such rules and regulations for
carrying out the Plan as it may deem advisable. No member of the Board or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any Stock Option granted under it.

        B.      COMMITTEE ACTIONS. The Committee may select one of its members
as its chairman, and shall hold meetings at such time and places as it may
determine. A majority of the Committee shall constitute a quorum and acts of a
majority of the members of the Committee at a meeting at which a quorum is
present, or acts reduced to or approved in writing by all the members of the
Committee (if consistent with applicable state law), shall be the valid acts of
the Committee. From time to time, the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members

<PAGE>

in substitution therefor, fill vacancies however caused, or remove all members
of the Committee and thereafter directly administer the Plan.

        3.      ELIGIBLE EMPLOYEES AND OTHERS. ISOs may be granted only to
employees of the Company. Non-Qualified Stock Options may be granted to any
employee or consultant of the Company (whether or not such consultant is an
employee of the Company). The Committee may take into consideration a
recipient's individual circumstances in determining whether to grant an Option.
The granting of any Option to any individual or entity shall neither entitle
that individual or entity to, nor disqualify such individual or entity from,
participation in any other grant of Options.

        4.      STOCK. The stock subject to Options shall be authorized but
unissued shares of Common Stock, or shares of Common stock reacquired by the
Corporation in any manner. The aggregate number of shares that may be issued
pursuant to the Plan is 100,000 shares, subject to adjustment as provided in
paragraph 13. If any Option granted under the Plan shall expire or terminate for
any reason without having been exercised in full or shall cease for any reason
to be exercisable in whole or in part or shall be repurchased by the Company,
the shares of Common stock subject to such Option shall again be available for
grants of Options under the Plan.

        A.      No employee of the Company may be granted Options to acquire,
in the aggregate, more than 10,000 shares of Common Stock under the Plan. If any
Option granted under the Plan shall expire or terminate for any reason without
having been exercised in full or shall cease for any reason to be exercisable in
whole or in part or shall be repurchased by the Company, the shares subject to
such Option shall be included in the determination of the aggregate number of
shares of Common Stock deemed to have been granted to such employee under the
Plan.

        5.      GRANTING OF STOCK OPTIONS. Options may be granted under the Plan
at any time on or after July 16, 1998 and prior to July 16, 2008. The date of
grant of an Option under the Plan will be the date specified by the Committee at
the time it grants the Option; provided, however, that such date shall not be
prior to the date on which the Committee acts to approve the grant. Options
granted under the Plan are intended to qualify as performance-based compensation
to the extent required under Treasury Regulation Section 1.162-27.

        6.      STOCK OPTIONS:

        A.      GENERAL. Subject to the provisions of the Plan, the Committee
may award Incentive Stock Options and Non-Qualified stock Options, and determine
the number of shares of Common Stock to be covered by each Option, the option
price of such Option and the conditions and limitations applicable to the
exercise of such Option. The terms and conditions of Incentive Stock Options
shall be subject to and comply with Section 422 of the Code, or any successor
provision, and any regulations thereunder.

        The Committee shall establish the exercise price at the time each Option
is awarded. Each Option shall be exercisable at such times and subject to such
terms and conditions as the Committee may specify in the applicable Option
agreement. The Committee may impose such

                                       2
<PAGE>

conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable.

        B.      INCENTIVE STOCK OPTIONS.

                a. All ISOs shall, at the time of grant, be specifically
designated as such in the option Agreement covering such ISOs.

                b. The exercise price per share specified in the Option
Agreement relating to each ISO granted under the Plan shall not be less than the
Fair Market Value per share of Common Stock on the date of such grant. In the
case of an ISO to be granted to an employee owning stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Corporation, the price per share specified in the Option Agreement relating
to such ISO shall not be less than one hundred ten percent (110%) of the Fair
Market Value per share of Common Stock on the date of grant. For purposes of
determining stock ownership under this paragraph, the rules of Section 424(d) of
the Code shall apply.

                c. Each Eligible Employee (as determined by the Committee) may
be granted Options treated as ISOs only to the extent that, in the aggregate
under the plan and all incentive stock option plans of the Company, ISOs do not
become exercisable for the first time by such employee during any calendar year
with respect to Common Stock having a Fair Market Value (determined at the time
the ISOs were granted) in excess of $100,000. The Corporation intends to
designate any Options granted in excess of such limitation as Non-Qualified
Options.

        C.      NON-QUALIFIED STOCK OPTIONS.

                The exercise price per share specified in the Option Agreement
relating to each Non-Qualified Stock Option granted under the Plan shall in no
event be less than the minimum legal consideration required therefor under the
laws of any jurisdiction in which the Corporation or its successors in interest
may be organized. Non-Qualified Stock Options granted under the plan, with an
exercise price less than the Fair Market Value per share of Common Stock on the
date of grant, are intended to qualify as performance-based compensation under
Section 162(m) of the Code and any applicable regulations thereunder. Any such
Non-Qualified Stock Options granted under the Plan shall be exercisable only
upon the attainment of a pre-established, objective performance goal established
by the Committee. If the Committee grants Non-Qualified Stock Options with an
exercise price less than the Fair Market Value per share of Common Stock on the
date of grant, such grant will be submitted for, and will be contingent upon
shareholder approval.

        D.      HOLDING PERIOD. Each option grant made under this paragraph 6
shall be held for at least six (6) months following the date of such grant.

        7.      DURATION OF OPTIONS. Subject to earlier termination as provided
in paragraphs 9 and 10 or in the Option Agreement relating to such Option, each
Option shall expire on the date specified by the Committee, but not more than
(i) ten years from the date of grant in the case of Options generally and (ii)
five years from the date of grant in the case of ISOs granted to an employee
owning stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Corporation, as determined under paragraph
6(B). Subject to

                                       3
<PAGE>

earlier termination as provided in paragraphs 9 and 10, the term of each ISO
shall be the term set forth in the original option agreement granting such ISO,
except with respect to any part of such ISO that is converted into a
Non-Qualified Stock Option pursuant to paragraph 16.

        8.      EXERCISE. Subject to the provisions of paragraphs 9 through 12,
each Option granted under the Plan shall be exercisable as follows:

        A.      VESTING. Subject to paragraph 6(D) and Option shall either be
fully exercisable on the date of grant or shall become exercisable thereafter in
such installments as the Committee may specify.

        B.      FULL VESTING OF INSTALLMENTS. Once an installment of an option
becomes exercisable it shall remain exercisable until expiration or termination
of the Option, unless otherwise specified by the Committee.

        C.      PARTIAL EXERCISE. Each Option or installment of an Option may be
exercised at any time or from time to time, in whole or in part, for up to the
total number of shares with respect to which it is then exercisable.

        D.      ACCELERATION OF VESTING. The Committee shall have the right to
accelerate the date that any installment of any Option becomes exercisable;
provided that the Committee shall not, without the consent of an optionee,
accelerate the permitted exercise date of any installment of any Option granted
to any employee as an ISO (and not previously converted into a Non-Qualified
Stock Option pursuant to paragraph 16) if such acceleration would violate the
annual vesting limitation contained in section 422(d) of the Code, as described
in paragraph 6(B).

        E.      CHANGE OF CONTROL. In the event of a Change in Control all
Options theretofore granted under this Plan shall vest to the extent not
previously vested five days prior to the earliest of (i) the record date, if
any, for such transaction, (ii) the effective date of any related registration
statement and (iii) the closing date of such transaction. A "Change in Control"
shall mean the occurrence of any of the following: (i) an event or series of
events (including a merger or consolidation) as a result of which any "person"
or "group" within the meaning of Sections 13(d) and 14(d)(2) of the Exchange
Act, together with their affiliates, other than the current "beneficial owners"
(within the meeting of Rules 13d-3 and 13d-5 under the Exchange Act) becomes the
"beneficial owner" of outstanding shares of the Corporation entitling such
person or group, together with such affiliates, to exercise more than 50% of the
total voting power of all classes of outstanding voting shares of the
Corporation; or (ii) the sale or transfer by the Corporation of all or
substantially all of its properties and assets to any other person.

        9.      TERMINATION OF EMPLOYMENT. Unless otherwise specified in the
Option Agreement relating to such ISO, if an ISO optionee ceases to be employed
by the Company other than by reason of death or disability as defined in
paragraph 10, no further installments of his or her ISOs shall become
exercisable, and his or her ISOs shall terminate on the earlier of (a) ninety
(90) days after the date of termination of his or her employment, or (b) their
specified expiration dates, except to the extent that such ISOs (or unexercised
installments thereof) have been converted into Non-Qualified Stock options
pursuant to paragraph 16 or such ISO's provide for a longer period of exercise
after termination of employment as a result of retirement on after age

                                       4
<PAGE>

65, in which case such ISO's shall be treated as Non-Qualified Stock Options to
the extent exercised later than 90 days after the termination of employment. For
purposes of this paragraph 9, employment shall be considered as continuing
uninterrupted during (a) any bona fide leave of absence (such as those
attributable to illness, maternity leave, military obligations or governmental
service) with written approval of the Committee that contractually obligates the
Company to continue the employment of the optionee after the approved period of
absence; provided that the period of such leave does not exceed 90 days; or (b)
any period during which such optionee's right to re-employment is guaranteed by
statute. ISOs granted under the Plan shall not be affected by any change of
employment within the Company, so long as the optionee continues to be an
employee of the Company. Nothing in the Plan shall be deemed to give any grantee
of any Stock Option the right to be retained in employment or other service by
the Company for any period of time.

        10.     DEATH, DISABILITY.

        A.      DEATH. Unless otherwise specified in the Option Agreement
relating to such ISO, if an ISO optionee ceases to be employed by the Company by
reason of his or her death, no further installments of his or her ISOs shall
become exercisable on the date of death, by the estate, personal representative
or beneficiary who has acquired the ISOs by will or by the laws of descent and
distribution, on or prior to the date that is the earlier of (i) the specified
expiration date of the ISOs and (ii) 180 days from the date of the optionee's
death, except to the extent that such ISOs (or unexercised installments thereof)
have been converted into Non-Qualified Stock Options pursuant to paragraph 16.

        B.      DISABILITY. Unless otherwise specified in the Option Agreement
relating to such ISO, if an ISO optionee ceases to be employed by the Company by
reason of his or her disability, no further installments of his or her ISOs
shall become exercisable, and such optionee shall have the right to exercise any
ISOs held by him or her on the date of termination of employment, for the number
of shares for which he or she could have exercised the ISOs on that date, until
the earlier of (i) the specified expiration date of the ISOs or (ii0 180 days
from the date of the termination of the optionee's employment, except to the
extent that such ISOs (or unexercised installments thereof) have been converted
into Non-Qualified Stock Options pursuant to paragraph 16. For the purposes of
the Plan, the term "disability" shall mean "permanent and total disability" as
defined in Section 22(e)(3) of the Code or any successor statute.

        11.     CANCELLATION AND RESCISSION OF OPTIONS. Unless the Stock Option
Agreement specifies otherwise, the Committee may cancel, rescind, suspend,
withhold, or otherwise limit or restrict any unexercised Options at any time if
the Optionee is not in compliance with all applicable provisions of the Stock
Option Agreement and the Plan, or if the optionee engages in any "Detrimental
Activity". for purposes of this Section 11, "Detrimental Activity" shall
include: (i) the rendering of services for nay organization or engaging directly
or indirectly in any business which is or becomes competitive with the Company
or which organization or business, or the rendering of services to such
organization or business, is or becomes otherwise prejudicial to or in conflict
with the interests of the Company; (ii) the disclosure to anyone outside the
Company or the use in other than the Company's business, without prior written
authorization from the Company, of any confidential information or material
relating to the business of the Company, acquired by the Optionee either during
or after employment with the

                                       5
<PAGE>

Company; (iii) activity that results in termination of the Optionee's employment
for cause; (iv) a violation of any rules, policies, procedures, or guidelines of
the Company; (v) any attempt directly or indirectly to induce any employee of
the Company to be employed or perform services elsewhere or any attempt directly
or indirectly to solicit the trade or business of any current or prospective
customer, supplier, provider or partner of the Company; (vi) the optionee being
convicted of, or entering a guilty plea with respect to a crime whether or not
connected with the Company; or (vii) any other conduct or act determined to be
injurious, detrimental or prejudicial to any interest of the Company.

        In the event an Optionee engages in a "Detrimental Activity" as defined
in this Section 11 prior to or during the 6 months after any exercise, delivery
by the Company may be rescinded within 2 years thereafter. In the event of any
such rescission, the Optionee shall pay to the Company the amount of any gain
realized as a result of the rescinded exercise, in such manner and on such terms
and conditions as may be required, and the Company shall be entitled to off-set
against the amount of any such gain any amount owed to the Optionee by the
Company.

        12.     ASSIGNABILITY. No Stock Option shall be assignable or
transferable by the grantee except by will or by the laws of descent and
distribution. Except as set forth in the previous sentence, during the lifetime
of a grantee each Stock Option shall be exercisable only by such grantee or his
or her legal representative.

        13.     TERMS AND CONDITIONS OF OPTIONS. Options shall be evidenced by
Option agreements (which need not be identical) in such forms as the Committee
may from time to time approve. Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options. The Committee may specify that any
Non-Qualified Stock Option shall be subject to the restrictions set forth herein
with respect to ISOs, or to such other termination and cancellation provisions
as the Committee may determine. The Committee may from time to time confer
authority and responsibility on one or more of its own members and/or one or
more officers of the Company to execute and deliver such instruments. The proper
officers of the Company are authorized and directed to take any and all action
necessary or advisable from time to time to carry out the terms of such
instruments.

        14.     ADJUSTMENTS. Upon the occurrence of any of the following events,
an optionee's rights with respect to Options granted to such optionee hereunder
shall be adjusted as hereinafter provided, unless otherwise specifically
provided in the written Option Agreement between the optionee and the Company
relating to such Option.

        A.      STOCK DIVIDENDS AND STOCK SPLITS. If the shares of Common Stock
shall be subdivided or combined into a greater or smaller number of shares or if
the Corporation shall issue any shares of Common Stock as a stock dividend on
its outstanding Common Stock, the number of shares of Common Stock deliverable
upon the exercise of Options shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made in the purchase price
per share to reflect such subdivision, combination or stock dividend.

                                       6
<PAGE>

        B.      CONSOLIDATIONS OR MERGERS. If the Corporation is to be
consolidated with or acquired by another entity in a merger, sale of all or
substantially all of the Corporation's assets or otherwise (an "Acquisition"),
the Committee or the Board of Directors of any entity assuming the obligations
of the Corporation hereunder (the "Successor Board"), shall, as to outstanding
Options, either (i) make appropriate provision for such Options by substituting
on an equitable basis for the shares then subject to such Options either (a) the
consideration payable with respect to the outstanding shares of Common stock in
connection with the Acquisition, (b) shares of stock of the surviving
corporation or (c) such other securities as the Successor Board deems
appropriate, the fair market value of which shall not materially exceed the Fair
Market Value immediately preceding the acquisition of the shares of Common Stock
subject to such Options; or (ii) upon written notice to the optionees, provide
that all options must be exercised, to the extent then vested and exercisable,
within a specified number of days of the date of such notice, at the end of
which period the Options shall terminate; or (iii) terminate all Options in
exchange for a cash payment equal to the excess of the fair Market Value, if
any, of the shares of Common Stock subject to such Options (to the extent then
vested and exercisable) over the exercise price thereof.

        C.      RECAPITALIZATION OR REORGANIZATION. In the event of a
recapitalization or reorganization of the Corporation (other than a transaction
described in subparagraph (B) above) pursuant to which securities of the
Corporation or of another corporation are issued with respect to the outstanding
shares of Common Stock, the Committee shall have the right to substitute the
securities into which Common Stock has been converted pursuant to such
recapitalization or reorganization and to fix the exercise price for such
substituted securities as the Committee deems fair and appropriate under the
circumstances.

        D.      MODIFICATION OF ISOS. Notwithstanding the foregoing, any
adjustments made pursuant to subparagraphs A, B or C above with respect to ISOs
shall be made only after the Committee, after consulting with counsel for the
Company, determines whether such adjustments would constitute a "modification"
of such ISOs (as that term is defined in Section 424 of the Code) or would cause
any adverse tax consequences for the holders of such ISOs. If the Committee
determines that such adjustments made with respect to ISOs would constitute a
modification of such ISOs or would cause adverse tax consequences to the
holders, it may refrain in its discretion from making such adjustments.

        E.      DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Corporation, each Option will terminate
immediately prior to the consummation of such proposed action or at such other
time and subject to such other conditions as shall be determined by the
Committee.

        F.      ISSUANCE OF SECURITIES. Except as expressly provided herein, no
issuance by the Corporation of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or exercise price of
shares subject to Options. No adjustments shall be made for dividends paid in
cash or in property other than securities of the Corporation.

        G.      FRACTIONAL SHARES. No Option shall be exercisable to the extent
such exercise would require the issuance of a fractional share of Common Stock.

                                       7
<PAGE>

        H.      ADJUSTMENTS. Upon the happening of any of the events described
in subparagraphs A, B or C above, the class and aggregate number of shares set
forth in paragraph 4 hereof that are subject to Stock Options which previously
have been or subsequently may be granted under the Plan shall also be
appropriately adjusted to reflect the events described in such subparagraphs.
The Committee or the Successor Board shall determine the specific adjustments to
be made under this paragraph 13 and, subject to paragraph 2, its determination
shall be conclusive.

        15.     MEANS OF EXERCISING OPTIONS. An Option (or any part or
installment thereof) shall be exercised, to the extent then exercisable, by
giving written notice to the Company by first class mail to, or in person at its
principal executive office, or to such transfer agent as the Company shall
designate. Such notice shall identify the Option being exercised and specify the
number of shares as to which such Option is being exercised, accompanied by full
payment of the purchase price therefore either (a) in United States dollars in
cash or by check, (b) at the discretion of the Committee, through delivery of
shares of the Corporation's Common Stock having a fair market value equal as of
the date of the exercise to the cash exercise price of the Option, (c) at the
discretion of the Committee, by delivery of the grantee's personal recourse note
bearing interest payable not less than annually at no less than 100% of the
lowest applicable Federal rate, as defined in Section 1274(d) of the Code, (d)
at the discretion of the Committee and consistent with applicable law, through
the delivery of an assignment to the Company of a sufficient amount of the
proceeds from the sale of the Common Stock acquired upon exercise of the Option
and an authorization to the broker or selling agent to pay that amount to the
Company, which sale shall be at the participant's discretion at the time of
exercise, or (e) at the discretion of the Committee, by any combination of (a),
(b), (c) and (d) above. If the Committee exercises its discretion to permit
payment of the exercise price of an ISO by means of the methods set forth in
clauses (b), (c), (d) or (e) of the preceding sentence, such discretion shall be
exercised in writing at the time of the grant of the ISO in question. The holder
of an Option shall not have the rights of a shareholder with respect to the
shares covered by such Option until the date of issuance of a stock certificate
to such holder for such shares. Except as expressly provided above in paragraph
13 with respect to changes in capitalization and stock dividends and stock
splits, no adjustment shall be made for dividends or similar rights for which
the record date is before the date such stock certificate is issued.

        16.     TERM AND AMENDMENT OF PLAN. This Plan was adopted by the Board
on July 16, 1998, subject, with respect to the validation of ISOs granted under
the Plan, to approve of the Plan by the stockholders of the Corporation at the
next meeting of stockholders. If the approval of stockholders is not obtained
prior to December 31, 1998, any grants of ISOs under the Plan made prior to that
date will be rescinded. The Plan shall expire at the end of the day on October
17, 2008 (except as to Options outstanding on that date). Subject to the
provisions of paragraph 5 above, Options may be granted under the Plan prior to
the date of stockholder approval of the Plan. The Board may terminate or amend
the Plan in any respect at any time, except that, without the approval of the
stockholders of the Corporation (a) the total number of shares that may be
issued under the Plan may not be increased (except by adjustment pursuant to
paragraph 13) and (b) the provisions of paragraph 3 regarding eligibility for
grants of ISOs may not be modified. In no event may action of the Board or
stockholders alter or impair the rights of a grantee under any Option previously
granted to such grantee, without such grantee's consent.

                                       8
<PAGE>

        17.     CONVERSION OF ISOS INTO NON-QUALIFIED STOCK OPTIONS. The
Committee, at the written request or with the written consent of any optionee,
may in its discretion take such actions as may be necessary to convert such
optionee's ISOs (or any installments or portions of installments thereof) that
have not been exercised on the date of conversion into Non-Qualified Stock
Options at any time prior to the expiration of such ISOs, regardless of whether
the optionee is an employee of the Company at the time of such conversion. Such
actions may include, but shall not be limited to, extending the exercise period
or reducing the exercise price of the appropriate installments of such ISOs. At
the time of such conversion, the Committee (with the consent of the optionee)
may impose such conditions on the exercise of the resulting Non-Qualified Stock
Options as the Committee in its discretion may determine; provided that such
conditions shall not be inconsistent with the Plan. Nothing in the Plan shall be
deemed to give any optionee the right to have such optionee's ISOs converted
into Non-Qualified Stock Options, and no such conversion shall occur until and
unless the Committee takes appropriate action.

        18.     APPLICATION OF FUNDS. The proceeds received by the Company from
the sale of shares pursuant to Options granted under the Plan shall be used for
general corporate purposes.

        19.     NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. By accepting an
ISO granted under the Plan, each optionee agrees to notify the Company in
writing immediately after such optionee makes a Disqualifying Disposition (as
described in Sections 421, 422 and 424 of the Code and regulations thereunder)
of any stock acquired pursuant to the exercise of ISOs granted under the Plan. A
Disqualifying Disposition is generally any disposition occurring on or before
the date that is the later of (a) the date two years following the date the ISO
was granted and (b) the date one year following the date the ISO was exercised.

        20.     WITHHOLDING OF ADDITIONAL INCOME TAXES. Upon the exercise of a
Non-Qualified Stock Option or the making of a Disqualifying Disposition (as
defined in paragraph 18) such other transaction authorized by the Plan, the
Company may withhold taxes in respect of amounts that constitute compensation
includible in gross income. The Committee in its discretion may condition the
exercise of an Option, or such other transaction authorized by the Plan, on the
grantee's making satisfactory arrangement for such withholding. Such arrangement
may include payment by the grantee in cash or by check of the amount of the
withholding taxes or, at the discretion of the Committee, by the grantee's
delivery of previously held shares of Common Stock or the withholding from the
shares of Common Stock otherwise deliverable upon exercise of an Option, shares
having an aggregate Fair Market Value equal to the amount of such withholding
taxes.

        21.     GOVERNMENTAL REGULATION. The Company's obligation to sell and
deliver shares of the Common Stock under the Plan is subject to the approval of
any governmental authority required in connection with the authorization,
issuance or sale of such shares.

        Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
send tax information statements to employees and former employees that exercise
ISOs under the Plan, and the Company may be required to file tax information
returns reporting the income received by grantees of options in connection with
the Plan.

                                       9
<PAGE>

        22.     GOVERNING LAW. The validity and construction of the Plan and the
instruments evidencing Options shall be governed by and construed according to
the laws of the State of Delaware.

        23.     DEFINITIONS.

                        A. "Acquisition" has the meaning set forth in paragraph
13(B).

                        B. "Beneficiary" means the person, persons, trust or
trusts entitled by will or the laws of descent and distribution to receive the
benefits specified under the Plan in the event of a Participant's death.

                        C. "Board" means the Board of Directors of the
Corporation.

                        D. "Code" means the internal Revenue code of 1986, as
amended from time to time.

                        E. "Commission" means the Securities and Exchange
Commission.

                        F. "Committee" means the Committee appointed by the
Board and consisting of two or more Board members or such greater number as may
be required under applicable law, each of whom, during such time as one or more
Participants may be subject to Section 16 of the Exchange Act, shall be a
"disinterested director" or a "non-employee director" as determined under Rule
16b-3, and each of whom, to the extent required by Section 162(m) of the Code
and applicable regulations thereunder, shall be "outside directors" as
determined by such Code section and regulations; provided, however, that the
minimum number of members of the Committee may be reduced by the Board to the
minimum number required by Rule 16b-3, as then in effect, and the minimum number
required by Code Section 162(m) and applicable regulations thereunder.

                        G. "Common Stock" means the common stock, $.01 par
value, of the Corporation.

                        H. "Company" means the Corporation and its subsidiaries.

                        I. "Corporation" means AmeriChoice Corporation, a
Delaware corporation.

                        J. "Director" means member of the Board of Directors of
the AmeriChoice Corporation or any person performing similar functions with
respect to the Company.

                        K. "Eligible Employee" means an officer or key employee
of the Company who has not served on the Committee within the preceding twelve
months and consultants to the Company whether or not such consultants are
employees.

                                       10
<PAGE>

                        L. "Exchange Act" means the Securities and Exchange Act
of 1934, as amended.

                        M. "Fair Market Value" for the purposes of this Plan if,
at the time an option is granted under the Plan, the Company's Common Stock is
publicly traded, "fair market value" shall be determined as of the last business
day for which the prices or quotes discussed in this sentence are available
prior to the date such option is granted and shall mean; (a) the average (on
that date) of the high and low prices of the Common Stock on the principal
national securities exchange on which the Common Stock is traded, if the Common
Stock is then traded on a national securities exchange; or (b) the last reported
sale price (on that date) of the Common Stock on the NASDAQ National Market, if
the Common Stock is not then traded on a national securities exchange; or (c)
the closing bid price (or average of bid prices) last quoted (on that date) by
an established quotation service for over-the-counter securities, if the Common
Stock is not reported on the NASDAQ National Market. However, if the Common
Stock is not publicly traded at the time an option is granted under the Plan,
"fair market value" shall be deemed to be the fair value of the Common Stock as
determined by the Committee after taking into consideration all factors which it
deems appropriate, including, without limitation, recent sale and offer prices
of the Common Stock in private transactions. If there is a disagreement with
respect to a "fair market value" determination which had been made by the
Committee that arises in connection with an initial public offering of Common
Stock, the Committee in its absolute discretion, shall have the right (in order
to resolve such disagreement) to retroactively adjust such "fair market value"
determination to take in account, as the Committee deems appropriate in its
absolute discretion, the price of the Common Stock set for such initial public
offering, and all options granted under the Plan before an initial public
offering automatically shall be granted subject to such adjustment right.

                        N. "Incentive Stock Option" or "ISO" means an option
which is designated as an incentive stock option within the meaning of Section
422 of the Code, the award of which contains such provisions as are necessary to
comply with that section.

                        O. "Non-Qualified Stock Option" means an option which is
designated as a Non-Qualified Stock Option and does not qualify as an ISO.

                        P. "Officer" means a president, vice-president,
secretary, treasurer, or principal financial officer, controller, or principal
accounting officer and any person routinely performing corresponding functions
with respect to the Company.

                        Q. "Option" means an option to purchase Common Stock
under the Plan. An Option shall be designated by the Committee as a
Non-Qualified Stock Option or an Incentive Stock Option.

                        R. "Option Agreement" means a written agreement setting
forth the terms of the Option.

                        S. "Optionee" means an Eligible Employee who has been
granted an Option.

                                       11
<PAGE>

                        T. "Personal Representative" means the person or persons
who, upon the disability or incompetence of a Participant, shall have acquired
on behalf of the Participant by legal proceeding or otherwise the power to
exercise the rights and receive the benefits specified in this Plan.

                        U. "Plan" means the 1998 Stock Plan of the Corporation.

                        V. "Rule 16b-3" means Rule 16b-3 as promulgated by the
Commission pursuant to the Exchange Act as amended from time to time.

                        W. "Securities Act" means the Securities Act of 1933, as
amended.

                        X. "Subsidiary" means any corporation or other entity a
majority or more of whose outstanding voting stock or voting power is
beneficially owned directly or indirectly by the Corporation.

                        Y. "Successor Board" has the meaning set forth in
paragraph 13(B).

                        Z. "Total Disability" means a "permanent and total
disability" within the meaning of Section 22(e)(3) of the Code.

                                       12
<PAGE>

                       AMENDMENT TO 1998 STOCK OPTION PLAN

        Pursuant to Section 16 of the 1998 Stock Plan as now in effect (the
"Plan") of AmeriChoice Corporation, a Delaware corporation, the Plan is hereby
amended by deleting the second sentence of Section 8E of the Plan in its
entirety and replacing it with the following:

        A "Change of Control" shall mean the occurrence of any of the following:
        (i) an event or series of events (including a merger or consolidation)
        as a result of which any "person" or "group" within the meaning of
        Sections 13(d) and 14(d)(2) of the Exchange Act, together with their
        affiliates, other than the current "beneficial owners" (within the
        meaning of Rules 13d-3 and 13d-5 under the Exchange Act), becomes the
        "beneficial owner" of outstanding shares of the Corporation entitling
        such person or group, together with such affiliates, to exercise more
        than 20% of the total voting power of all classes of outstanding voting
        shares of the Corporation; provided, however, that a "Change in Control"
        shall not be deemed to have occurred under this clause (i) as a result
        of the issuance of shares of the Corporation in connection with an
        acquisition of the business or assets of another person in which holders
        of the Corporation immediately prior to such acquisition, immediately
        thereafter, continue to hold at least 60% of total outstanding shares of
        the Corporation; or (ii) the sale or transfer by the Corporation of all
        or substantially all of its properties and assets to any other person.

        This Amendment to the 1998 Stock Plan shall be effective as of October
18, 2001.

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