Document:

<PAGE>

                                                                 Exhibit (10)(b)
                                                                 EXECUTION COPY

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                                  $200,000,000

                                CREDIT AGREEMENT

                                   dated as of

                                October 12, 2001

                                     between

                         THE FIRST AMERICAN CORPORATION

                            The Lenders Party Hereto

                                       and

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent

                               _________________

                          J.P. MORGAN SECURITIES INC.,
                    as Advisor, Lead Arranger and Bookrunner

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----
<S>                                                                                     <C>
ARTICLE I  DEFINITIONS.............................................................       1
   SECTION 1.01.  Defined Terms....................................................       1
   SECTION 1.02.  Terms Generally..................................................      14
   SECTION 1.03.  Accounting Terms and Determinations..............................      15

ARTICLE II  THE CREDITS............................................................      16
   SECTION 2.01.  The Commitments..................................................      16
   SECTION 2.02.  Loans and Borrowings.............................................      16
   SECTION 2.03.  Requests for Borrowings..........................................      17
   SECTION 2.04.  Funding of Borrowings............................................      17
   SECTION 2.05.  Interest Elections...............................................      18
   SECTION 2.06.  Termination and Reduction of the Commitments.....................      19
   SECTION 2.07.  Repayment of Loans; Evidence of Debt.............................      20
   SECTION 2.08.  Prepayment of Loans..............................................      21
   SECTION 2.09.  Fees.............................................................      21
   SECTION 2.10.  Interest.........................................................      22
   SECTION 2.11.  Alternate Rate of Interest.......................................      23
   SECTION 2.12.  Increased Costs..................................................      23
   SECTION 2.13.  Break Funding Payments...........................................      24
   SECTION 2.14.  Taxes............................................................      25
   SECTION 2.15.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs......      25
   SECTION 2.16.  Mitigation Obligations; Replacement of Lenders...................      27

ARTICLE III  REPRESENTATIONS AND WARRANTIES........................................      28
   SECTION 3.01.  Organization; Powers.............................................      28
   SECTION 3.02.  Authorization; Enforceability....................................      28
   SECTION 3.03.  Governmental Approvals; No Conflicts.............................      28
   SECTION 3.04.  Financial Condition, Etc.........................................      29
   SECTION 3.05.  Properties.......................................................      30
   SECTION 3.06.  Litigation and Environmental Matters.............................      30
   SECTION 3.07.  Compliance with Laws and Agreements..............................      30
   SECTION 3.08.  Investment and Holding Company Status............................      30
   SECTION 3.09.  Taxes, Etc.......................................................      30
   SECTION 3.10.  ERISA............................................................      31
   SECTION 3.11.  Disclosure.......................................................      31
   SECTION 3.12.  Use of Credit....................................................      31
   SECTION 3.13.  Indebtedness and Liens...........................................      31

ARTICLE IV  CONDITIONS.............................................................      32
   SECTION 4.01.  Closing Date.....................................................      32
   SECTION 4.02.  Each Credit Event................................................      33
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                      <C>
ARTICLE V  AFFIRMATIVE COVENANTS...................................................      33
   SECTION 5.01.  Financial Statements and Other Information.......................      33
   SECTION 5.02.  Notices of Material Events.......................................      35
   SECTION 5.03.  Existence; Conduct of Business...................................      36
   SECTION 5.04.  Payment of Obligations...........................................      36
   SECTION 5.05.  Maintenance of Properties........................................      36
   SECTION 5.06.  Books and Records; Inspection Rights.............................      36
   SECTION 5.07.  Compliance with Laws and Agreements..............................      36
   SECTION 5.08.  Insurance........................................................      37

ARTICLE VI  NEGATIVE COVENANTS.....................................................      37
   SECTION 6.01.  Indebtedness.....................................................      37
   SECTION 6.02.  Liens............................................................      38
   SECTION 6.03.  Fundamental Changes..............................................      39
   SECTION 6.04.  Transactions with Affiliates.....................................      40
   SECTION 6.05.  Financial Covenants..............................................      40
   SECTION 6.06.  Foreclosure on Subject Property..................................      40
   SECTION 6.07.  Sale/Leaseback Transactions and Synthetic Leases.................      41

ARTICLE VII  EVENTS OF DEFAULT.....................................................      41

ARTICLE VIII  THE ADMINISTRATIVE AGENT.............................................      44

ARTICLE IX  MISCELLANEOUS..........................................................      46
   SECTION 9.01.  Notices..........................................................      46
   SECTION 9.02.  Waivers; Amendments..............................................      46
   SECTION 9.03.  Expenses; Indemnity; Damage Waiver...............................      47
   SECTION 9.04.  Successors and Assigns...........................................      48
   SECTION 9.05.  Survival.........................................................      51
   SECTION 9.06.  Counterparts; Integration; Effectiveness.........................      51
   SECTION 9.07.  Severability.....................................................      52
   SECTION 9.08.  Right of Setoff..................................................      52
   SECTION 9.09.  Governing Law; Jurisdiction; Etc.................................      52
   SECTION 9.10.  WAIVER OF JURY TRIAL.............................................      53
   SECTION 9.11.  Headings.........................................................      53
   SECTION 9.12.  Treatment of Certain Information; Confidentiality................      53
</TABLE>

SCHEDULE I    -   Commitments
SCHEDULE II   -   Indebtedness and Liens
SCHEDULE III  -   Litigation and Environmental Matters

EXHIBIT A - Form of Assignment and Acceptance
EXHIBIT B - Form of Opinion of Counsel to the Borrower
EXHIBIT C - Form of Opinion of Special New York Counsel to Chase

                                     -ii-
<PAGE>

          CREDIT AGREEMENT dated as of October 12, 2001, between THE FIRST
AMERICAN CORPORATION, the LENDERS party hereto, and THE CHASE MANHATTAN BANK, as
Administrative Agent.

          The Borrower (as hereinafter defined) has requested that the Lenders
(as so defined) make loans to it in an aggregate principal amount not exceeding
$200,000,000 at any one time outstanding. The Lenders are prepared to make such
loans upon the terms and conditions hereof, and, accordingly, the parties hereto
agree as follows:

                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

          SECTION 1.01. Defined Terms. As used in this Agreement, the following
                        --------------
terms have the meanings specified below:

          "ABR", when used in reference to any Loan or Borrowing, refers to
           ---
whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.

          "Adjusted LIBO Rate" means, for the Interest Period for any Eurodollar
           ------------------
Borrowing, an interest rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied
                                                                     ----------
by (b) the Statutory Reserve Rate for such Interest Period.
--

          "Administrative Agent" means Chase, in its capacity as administrative
           --------------------
agent for the Lenders hereunder.

          "Administrative Questionnaire" means an Administrative Questionnaire
           ----------------------------
in a form supplied by the Administrative Agent.

          "Affiliate" means, with respect to a specified Person, another Person
           ---------
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. Without
limiting the generality of the foregoing, each of the following Persons shall,
at all times, be Affiliates of the Borrower: Donald P. Kennedy, Parker S.
Kennedy, any member of their immediate families (including parents, spouses,
children and siblings), any trust whose principal beneficiary is Donald P.
Kennedy or Parker S. Kennedy or one of more members of their immediate families
and any Person who is controlled by such member or trust. Notwithstanding the
foregoing, (a) no individual (other than any Person specified in the preceding
sentence) shall be an Affiliate solely by reason of his or her being a director,
officer or employee of the Borrower or any of its Subsidiaries and (b) none of
the Subsidiaries of the Borrower shall be Affiliates.
<PAGE>

                                      -2-

          "Alternate Base Rate" means, for any day, a rate per annum equal to
           -------------------
the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate for such day plus 1/2 of 1%. Any change in the Alternate
                                  ----
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, as the case may be.

          "Applicable Bank Regulatory Authority" means, for any Bank Subsidiary,
           ------------------------------------
the Federal Deposit Insurance Corporation and all other relevant bank or thrift
regulatory authorities (including, without limitation, relevant state bank or
thrift regulatory authorities) having jurisdiction over such Bank Subsidiary.

          "Applicable Insurance Regulatory Authority" means, when used with
           -----------------------------------------
respect to any Insurance Company, the insurance department or similar
administrative authority or agency of the State in which such Insurance Company
is domiciled.

          "Applicable Percentage" means, with respect to any Lender, the
           ---------------------
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

          "Applicable Rate" means, for any day, with respect to any Eurodollar
           ---------------
Loan or ABR Loan, or with respect to the commitment fees or utilization fees
payable hereunder, as the case may be, the applicable rate per annum set forth
below under the caption "Eurodollar Spread", "ABR Spread", "Commitment Fee Rate"
or "Utilization Fee Rate", respectively, based upon the ratings by Moody's and
S&P, respectively, applicable on such date to the Index Debt:

<TABLE>
<CAPTION>
   -------------------------------------
            Index Debt Ratings
   -------------------------------------------------------------------------------------------------------------
        Moody's              S&P            Eurodollar           ABR            Commitment       Utilization
        Rating              Rating            Spread            Spread           Fee Rate          Fee Rate
   -------------------------------------------------------------------------------------------------------------
   <S>                   <C>                <C>                 <C>             <C>              <C>
      A3 or above        A- or above          0.50%               0%              0.125%            0.125%
   -------------------------------------------------------------------------------------------------------------

          Baa1               BBB+            0.625%               0%              0.175%            0.125%
   -------------------------------------------------------------------------------------------------------------

          Baa2               BBB              0.75%               0%               0.20%            0.125%
   -------------------------------------------------------------------------------------------------------------

          Baa3               BBB-             1.00%               0%               0.25%             0.25%
   -------------------------------------------------------------------------------------------------------------

       Below Baa3         Below BBB-          1.50%            0.50%              0.375%             0.25%
   -------------------------------------------------------------------------------------------------------------
</TABLE>

          For purposes of the foregoing, (i) if either Moody's or S&P shall not
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then such
rating agency shall be deemed to have established a rating equivalent to the
rating provided by the rating agency then having a rating in effect; (ii) if the
ratings established or deemed to have been established by Moody's and S&P for
the Index Debt shall fall within different rating categories, the Applicable
Rate shall be based on the lower of the two ratings; and (iii) if the ratings
established or deemed to have been established by Moody's
<PAGE>

                                      -3-

and S&P for the Index Debt shall be changed (other than as a result of a change
in the rating system of Moody's or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating agency. Each
change in the Applicable Rate shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the
effective date of the next such change. If the rating system of Moody's or S&P
shall change, or if either such rating agency shall cease to be in the business
of rating corporate debt obligations, the Borrower and the Lenders shall
negotiate in good faith to amend this definition to reflect such changed rating
system or the unavailability of ratings from such rating agency and, pending the
effectiveness of any such amendment, the Applicable Rate shall be determined by
reference to the rating most recently in effect prior to such change or
cessation.

          "Arbitrage Loans" means loans made by any financial institution (a
           ---------------
"lender") which is, at the time of the making of such loan, a depository of the
Borrower or any Subsidiary of the Borrower, to the Borrower or any such
Subsidiary in an amount not exceeding the amount of the deposits of the Borrower
or any such Subsidiary held by such depository, the proceeds of which are
invested in U.S. Government securities and/or certificates of deposit rated A-1
or P-1 and/or commercial paper rated not lower than A-1 or P-1 and having a term
not exceeding the maturity date of such loan (but in no event longer than 92
days), provided that (i) the relevant borrower shall have a right of offset
       --------
against such investment (in the case of certificates of deposit) and (ii) all
such loans must be off the balance sheet of the Borrower and its Subsidiaries at
the last day of any quarterly fiscal period.

          "Assignment and Acceptance" means an Assignment and Acceptance entered
           -------------------------
into by a Lender as assignor and an assignee (with the consent of each Person
whose consent is required by Section 9.04(b)), and accepted by the
Administrative Agent, in the form of Exhibit A or any other form approved by the
Administrative Agent.

          "Availability Period" means the period from and including the Closing
           -------------------
Date to but excluding the earlier of the Commitment Termination Date and the
date of termination of the Commitments.

          "Bank Subsidiary" means First Security Thrift, First American Trust
           ---------------
and any other Subsidiary of the Borrower which is a federally- or state-
chartered thrift, bank or trust company.

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

          "Borrower" means The First American Corporation, a California
           --------
corporation.

          "Borrowing" means (a) all ABR Loans made, converted or continued on
           ---------
the same date or (b) all Eurodollar Loans that have the same Interest Period.
For purposes hereof, the date of a Borrowing comprising one or more Loans that
have been converted or continued shall be the effective date of the most recent
conversion or continuation of such Loan or Loans.

          "Borrowing Request" means a request by the Borrower for a Borrowing in
           -----------------
accordance with Section 2.03.
<PAGE>

                                      -4-

          "Business Day" means any day that is not a Saturday, Sunday or other
           ------------
day on which commercial banks in New York City are authorized or required by law
to remain closed; provided that, when used in connection with a Eurodollar Loan,
                  --------
the term "Business Day" shall also exclude any day on which banks are not open
for dealings in Dollar deposits in the London interbank market.

          "Capital Lease Obligations" of any Person means the obligations of
           -------------------------
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          "Capital Securities" means preferred securities issued by a Subsidiary
           ------------------
of the Borrower organized as a Delaware business trust that are redeemable, at
the option of such issuer, ten years or more after the issuance thereof, which
securities are guaranteed by the Borrower and the proceeds of which are invested
in junior subordinated securities of the Borrower.

          "Change in Law" means (a) the adoption of any law, rule or regulation
           -------------
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender (or, for
purposes of Section 2.12(b), by any lending office of such Lender or by such
Lender's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

          "Change of Control" means that during any period of 25 consecutive
           -----------------
calendar months, a majority of the board of directors of the Borrower shall no
longer be composed of individuals (a) who were members of said board on the
first day of such period, (b) whose election or nomination to said board was
approved by individuals referred to in clause (a) above constituting at the time
of such election or nomination at least a majority of said board or (c) whose
election or nomination to said board was approved by individuals referred to in
clauses (a) and (b) above constituting at the time of such election or
nomination at least a majority of said board.

          "Chase" means The Chase Manhattan Bank.
           -----

          "Closing Date" means the date on which the conditions specified in
           ------------
Section 4.01 are satisfied (or waived in accordance with Section 9.02).

          "Code" means the Internal Revenue Code of 1986, as amended from time
           ----
to time.

          "Combined Earnings" means, for any period, the sum of the following:
           -----------------
(a) consolidated earnings (calculated before income taxes, Interest Expense and
minority interest expense) of the Borrower and its Consolidated Subsidiaries
(determined on a consolidated basis without duplication in accordance with GAAP)
for such period plus depreciation and amortization (to the extent deducted in
                ----
determining such consolidated earnings) for such period
<PAGE>

                                      -5-

plus (b) Deferred Revenues (or, in the case of a Deferred Revenue deficit, minus
----                                                                       -----
an amount equal to such deficit) for such period.

          "Commitment" means, with respect to each Lender, the commitment of
           ----------
such Lender to make Loans hereunder, expressed as an amount representing the
maximum aggregate amount of such Lender's Revolving Credit Exposure hereunder,
as such commitment may be (a) reduced from time to time pursuant to Section 2.06
and (b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 9.04. The initial amount of each Lender's
Commitment is set forth on Schedule I, or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Commitment, as applicable.
The initial aggregate amount of the Lenders' Commitments is $200,000,000.

          "Commitment Termination Date" means October 12, 2006.
           ---------------------------

           "Consolidated Subsidiary" means, for any Person, each Subsidiary of
            -----------------------
such Person (whether now existing or hereafter created or acquired) the
financial statements of which shall be (or should have been) consolidated with
the financial statements of such Person in accordance with GAAP.

          "Control" means the possession, directly or indirectly, of the power
           -------
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.
 -----------       ----------

          "Default" means any event or condition which constitutes an Event of
           -------
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

          "Deferred Revenues" means, with respect to the Borrower and its
           -----------------
Consolidated Subsidiaries, for any fiscal period, the amount of revenue received
but not recognized (in accordance with GAAP) during such fiscal period minus the
                                                                       -----
amount of revenue recognized (in accordance with GAAP) but not received during
such fiscal period.

          "Disclosed Matters" means the actions, suits, proceedings and
           -----------------
environmental matters disclosed in Schedule III.

          "Dollars" or "$" refers to lawful money of the United States of
           -------      -
America.

          "Environmental Laws" means all laws, rules, regulations, codes,
           ------------------
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

          "Environmental Liability" means any liability, contingent or otherwise
           -----------------------
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
<PAGE>

                                      -6-

disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

          "Equity Issuance" means (a) any issuance or sale by the Borrower of
           ---------------
(i) any capital stock, (ii) any warrants or options exercisable in respect of
capital stock (other than any warrants or options issued to directors, officers
or employees of the Borrower or any of its Subsidiaries in their capacity as
such and any capital stock of the Borrower issued upon the exercise of such
warrants) or (iii) any other security or instrument representing an equity
interest (or the right to obtain any equity interest) in the Borrower or (b) the
receipt by the Borrower of any contribution to its capital (whether or not
evidenced by any equity security).

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
           -----
amended from time to time.

          "ERISA Affiliate" means any trade or business (whether or not
           ---------------
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

          "ERISA Event" means (a) any "reportable event", as defined in Section
           -----------
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

          "Eurodollar", when used in reference to any Loan or Borrowing, refers
           ----------
to whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

          "Event of Default" has the meaning assigned to such term in Article
           ----------------
VII.

          "Excluded Taxes" means, with respect to the Administrative Agent, any
           --------------
Lender or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes imposed on
(or measured by) its net income
<PAGE>

                                      -7-

by the United States of America, or by the jurisdiction under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable lending office is located, (b)
any branch profits taxes imposed by the United States of America or any similar
tax imposed by any other jurisdiction in which the Borrower is located and (c)
in the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower under Section 2.16(b)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party to this Agreement or is attributable to such Foreign Lender's failure or
inability to comply with Section 2.14(e), except to the extent that such Foreign
Lender's assignor (if any) was entitled, at the time of assignment, to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.14(a).

          "Existing Credit Agreements" means (a) the Amended and Restated Credit
           --------------------------
Agreement dated as of July 29, 1997 among the Borrower, the lenders party
thereto and The Chase Manhattan Bank, as administrative agent for such lenders
and (b) the Credit Agreement dated as of July 2, 1999 among the Borrower, the
lenders party thereto and The Chase Manhattan Bank, as administrative agent for
such lenders, in each case as amended and in effect immediately prior to the
Closing Date.

          "FAREISI" means First American Real Estate Information Services, Inc.,
           -------
a California corporation and a Wholly wned Subsidiary of the Borrower.

          "FARES" means First American Real Estate Solutions, LLC, a California
           -----
limited liability company.

          "FATICO" means First American Title Insurance Company, a California
           ------
corporation and a Wholly Owned Subsidiary of the Borrower.

          "Federal Funds Effective Rate" means, for any day, the weighted
           ----------------------------
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

          "First American Title & Trust Company" means First American Title &
           ------------------------------------
Trust Company, an Oklahoma corporation and a Subsidiary of the Borrower.

          "First American Trust" means First American Trust FSB, a federal stock
           --------------------
savings bank and a Wholly Owned Subsidiary of the Borrower.

          "First Security Thrift" means First Security Thrift Company, a
           ---------------------
California corporation and an indirect Subsidiary of FATICO.

          "Foreign Lender" means any Lender that is organized under the laws of
           --------------
a jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the
<PAGE>

                                      -8-

United States of America, each State thereof and the District of Columbia shall
be deemed to constitute a single jurisdiction.

          "Funded Debt" means, for any Person, (a) all Indebtedness for such
           -----------
Person that should be reflected on a balance sheet of such Person in accordance
with GAAP, (b) all Indebtedness of any other Person that should be reflected on
a balance sheet of such other Person in accordance with GAAP and that is secured
by a Lien on the Property of such Person, is supported by a letter of credit
issued for account of, or is Guaranteed by, such Person and (c) all Capital
Lease Obligations of such Person; provided that Funded Debt shall include (i)
                                  --------
the aggregate liquidation preference of all preferred securities that are
mandatorily redeemable, exchangeable or convertible into debt at the option of
the holder or redeemable at the option of the holder, less than ten years after
issue and (ii) the aggregate liquidation preference of all Capital Securities
but only that portion of such aggregate liquidation preference that is on such
date equal to, or in excess of, 15% of Total Capitalization on such date.

          "GAAP" means generally accepted accounting principles in the United
           ----
States of America.

          "Governmental Authority" means the government of the United States of
           ----------------------
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

          "Guarantee" of or by any Person (the "guarantor") means any
           ---------                            ---------
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
                   ---------------
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase property, securities or services for the purpose of assuring the owner
of such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided that the term Guarantee shall not include endorsements for
            --------
collection or deposit in the ordinary course of business.

          "Hazardous Materials" means all explosive or radioactive substances or
           -------------------
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

          "Hedging Agreement" means any interest rate protection agreement,
           -----------------
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.
<PAGE>

                                      -9-

          "Indebtedness" of any Person means, without duplication, (a) all
           ------------
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind that in accordance with GAAP would be shown on the
liability side of the balance sheet of such Person, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments (including
surplus debentures or notes whether or not characterized as liabilities for
purposes of GAAP or SAP and non-perpetual preferred stock requiring redemption
or repurchase and any option exercisable in respect thereof to the extent of
such redemption or repurchase), (c) all obligations of such Person under
conditional sale or other title retention agreements relating to property
acquired by such Person that in accordance with GAAP would be shown on the
liability side of the balance sheet of such Person, (d) all obligations of such
Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of business)
that in accordance with GAAP would be shown on the liability side of the balance
sheet of such Person, (e) all Indebtedness of others secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on property owned or acquired by such Person, whether
or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by
such Person of Indebtedness of others, (g) all Capital Lease Obligations of such
Person, (h) all obligations, contingent or otherwise of such Person as an
account party in respect of letters of credit and letters of guaranty and (i)
all obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

          "Indemnified Taxes" means Taxes other than Excluded Taxes.
           ----------------

          "Index Debt" means senior, unsecured, long-term indebtedness for
           ----------
borrowed money of the Borrower that is not guaranteed by any other Person or
subject to any other credit enhancement; provided that if such indebtedness is
                                         --------
not rated by Moody's or S&P, "Index Debt" means indebtedness in respect of
Capital Securities.

          "Insurance Company" means, collectively, FATICO, First American Home
           -----------------
Buyers Protection Corporation and any other Subsidiary of the Borrower which is
a licensed insurance company or a licensed underwritten title company.

          "Interest Election Request" means a request by the Borrower to convert
           -------------------------
or continue a Borrowing in accordance with Section 2.05.

          "Interest Expense" means, for any period, the sum, for the Borrower
           ----------------
and its Consolidated Subsidiaries (determined on a consolidated basis without
duplication in accordance with GAAP), of the following: (a) all interest in
respect of Indebtedness accrued during such period (whether or not actually paid
during such period) plus (b) the net amounts payable (or minus the net amounts
                    ----                                 -----
receivable) under Hedging Agreements accrued during such period (whether or not
actually paid or received during such period).

          "Interest Payment Date" means (a) with respect to any ABR Loan, each
           ---------------------
Quarterly Date and (b) with respect to any Eurodollar Loan, the last day of each
Interest Period therefor
<PAGE>

                                      -10-

and, in the case of any Interest Period that is more than three months long,
each day prior to the last day of such Interest Period that occurs at intervals
of three months after the first day of such Interest Period.

          "Interest Period" means (a) for any Borrowing (other than an ABR
           ---------------
Borrowing), the Interest Period of the Loan or Loans constituting such
Borrowing; and (b) for any Eurodollar Loan, the period commencing on the date of
such Loan and ending on the numerically corresponding day in the calendar month
that is one, two, three or six months thereafter, as specified in the applicable
Borrowing Request or Interest Election Request; provided that (i) if any
                                                --------
Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period. For purposes hereof, the date
of a Loan initially shall be the date on which such Loan is made and thereafter
shall be the effective date of the most recent conversion or continuation of
such Loan.

          "Lender Affiliate" means, with respect to any Lender, (a) an Affiliate
           ----------------
of such Lender or (b) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise investing
in bank loans and similar extensions of credit in the ordinary course of its
business and is administered or managed by a Lender or an Affiliate of such
Lender.

          "Lenders" means the Persons listed on Schedule I and any other Person
           -------
that shall have become a party hereto pursuant to an Assignment and Acceptance,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Acceptance.

          "LIBO Rate" means, for the Interest Period for any Eurodollar
           ---------
Borrowing, the rate appearing on Page 3750 of the Telerate Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates
applicable to Dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for the offering of Dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is not available
at such time for any reason, then the LIBO Rate for such Interest Period shall
be the arithmetic mean of the rates (rounded upwards, if necessary, to the next
1/16 of 1%) at which Dollar deposits of $5,000,000 and for a maturity comparable
to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

          "Licenses" means any licenses or certificates of authority from any
           --------
Applicable Insurance Regulatory Authority, or permits or authorizations to
transact title insurance business.
<PAGE>

                                      -11-

          "Lien" means, with respect to any asset, (a) any mortgage, deed of
           ----
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset and (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset.

          "Loan" means a Loan made pursuant to Section 2.01.
           ----

          "Loans" means the loans made by the Lenders to the Borrower pursuant
           -----
to this Agreement.

          "Margin Stock" means "margin stock" within the meaning of Regulations
           ------------
T, U and X of the Board.

          "Material Adverse Effect" means a material adverse effect on (a) the
           -----------------------
business, assets, operations, prospects or condition, financial or otherwise, of
the Borrower and its Subsidiaries taken as a whole, (b) the ability of the
Borrower to perform any of its obligations under this Agreement or (c) the
rights of or benefits available to the Lenders under this Agreement.

          "Material Subsidiary" means, at any time, (a) FATICO, (b) FAREISI and
           -------------------
(c) any other Subsidiary of the Borrower with a net book value at such date in
excess of $100,000,000.

          "Moody's" means Moody's Investors Service, Inc.
           -------

          "Moody's Rating" means the Moody's rating in respect of the Index
           --------------
Debt, provided that if such rating is in respect of Index Debt consisting of
      --------
Capital Securities, "Moody's Rating" means the rating that is one grade higher
than the rating of the Index Debt.

          "Multiemployer Plan" means a multiemployer plan as defined in Section
           ------------------
4001(a)(3) of ERISA.

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

          "PBGC" means the Pension Benefit Guaranty Corporation referred to and
           ----
defined in ERISA and any successor entity performing similar functions.

          "Permitted Encumbrances" means (a) Liens imposed by law for taxes,
           ----------------------
assessments or other governmental charges that are not yet due or are being
contested in compliance with Section 5.04; (b) carriers', warehousemen's,
mechanics', materialmen's, landlords', repairmen's and other like Liens imposed
by law, arising in the ordinary course of business and securing obligations that
are not overdue by more than 30 days or are being contested in compliance with
Section 5.04; (c) pledges and deposits made in the ordinary course of business
in compliance with workers' compensation, unemployment insurance and other
social security laws or regulations; (d) deposits to secure the performance of
bids, trade
<PAGE>

                                      -12-

contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary
course of business; (e) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (j) of Article VII; and (f)
easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do
not secure any monetary obligations and do not materially detract from the value
of the affected property or interfere with the ordinary conduct of business of
the Borrower or any Subsidiary; provided that the term "Permitted Encumbrances"
                                --------
shall not include any Lien securing Indebtedness.

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

          "Plan" means any employee pension benefit plan (other than a
           ----
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

          "Prime Rate" means the rate of interest per annum publicly announced
           ----------
from time to time by Chase as its prime rate in effect at its principal office
in New York City; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

          "Quarterly Dates" means the 21/st/ day of January, April, July and
           ---------------
October in each year, the first of which shall be the first such day after the
date hereof; provided that if any such day is not a Business Day, then such
             --------
Quarterly Date shall be the next succeeding Business Day (unless such succeeding
Business Day falls in a subsequent calendar month, in which event such Quarterly
Date shall be the next preceding Business Day).

          "Register" has the meaning set forth in Section 9.04.
           --------

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

          "Required Lenders" means, at any time, Lenders having Revolving Credit
           ----------------
Exposures and unused Commitments representing more than 50% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time.

          "Reserves" means, for any Insurance Company, as at any date, the
           --------
aggregate reserves for undetermined title losses of such Insurance Company
(which amount is shown at the date hereof on the most recent annual Statutory
Statement of such Insurance Company at page 3, line 1(b), column 1) as at the
last day of the fiscal year of such Insurance Company ending on or most recently
ended prior to such date.

          "Revolving Credit Exposure" means, with respect to any Lender at any
           -------------------------
time, the aggregate outstanding principal amount of such Lender's Loans at such
time.
<PAGE>

                                      -13-

          "S&P" means Standard & Poor's Ratings Services, a division of The
           ---
McGraw-Hill Companies, Inc.

          "S&P Rating" means the S&P rating in respect of the Index Debt,
           ----------
provided that if such rating is in respect of Index Debt consisting of Capital
Securities, "S&P Rating" means the rating that is one grade higher than the
rating of the Index Debt.

          "Sale/Leaseback Transaction" means any arrangement with any Person
           --------------------------
whereby the Borrower or any of its Subsidiaries shall sell or otherwise transfer
any of its Property and thereafter rent or lease such Property or similar
Property for substantially the same use or uses as the Property sold or
transferred.

          "SAP" means, for any Insurance Company, the statutory accounting
           ---
procedures or practices required by the Applicable Insurance Regulatory
Authority applied on a basis consistent with those which, in accordance with the
last sentence of Section 1.03(a), are to be used in making the calculations for
purposes of determining compliance with certain terms of this Agreement.

          "Statutory Reserve Rate" means, for the Interest Period for any
           ----------------------
Eurodollar Borrowing, a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the
                                                                       -----
arithmetic mean, taken over each day in such Interest Period, of the aggregate
of the maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to
which the Administrative Agent is subject for eurocurrency funding (currently
referred to as "Eurocurrency liabilities" in Regulation D of the Board). Such
reserve percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

          "Statutory Statement" means, for any Insurance Company, for any fiscal
           -------------------
year of such Insurance Company, the most recent annual statement required to be
filed with the Applicable Insurance Regulatory Authority and, for any fiscal
quarter of such Insurance Company, the quarterly statement required to be filed
with the Applicable Insurance Regulatory Authority, which annual and quarterly
statements shall be prepared in accordance with statutory accounting practices
or generally accepted accounting principles as specified by the Applicable
Insurance Regulatory Authority.

          "Subject Property" has the meaning assigned to such term in Section
           ----------------
6.06.

          "Subsidiary" means, with respect to any Person (the "parent") at any
           ----------                                          ------
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
<PAGE>

                                      -14-

entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent. Unless otherwise
specified, "Subsidiary" means a Subsidiary of the Borrower. "Wholly Owned
                                                             ------------
Subsidiary" means any such corporation, partnership or other entity of which all
----------
of the equity securities or other ownership interests (other than, in the case
of a corporation, directors' qualifying shares) are so owned or controlled.

          "Synthetic Lease" means a lease of property or assets designed to
           ---------------
permit the lessee (a) to claim depreciation on such property or assets under
U.S. tax law and (b) to treat such lease as an operating lease or not to reflect
the leased property or assets on the lessee's balance sheet under GAAP.

          "Taxes" means any and all present or future taxes, levies, imposts,
           -----
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          "Total Capitalization" means, as at any date, the sum of Total Debt
           --------------------
plus Total Stockholders' Equity.
----

          "Total Debt" means, as at any date, the sum for the Borrower and its
           ----------
Consolidated Subsidiaries of all Funded Debt.

          "Total Stockholders' Equity" means, as at any date, the aggregate
           ------------------
stockholders' equity (including minority interests in subsidiaries) for the
Borrower and its Consolidated Subsidiaries; provided that the aggregate
                                            --------
liquidation preference of Capital Securities shall be included in the
calculation of Total Stockholders' Equity only with respect to that portion of
such aggregate liquidation preference that is less than 15% of Total
Capitalization on such date; provided further that, for purposes of determining
                             -------- -------
compliance with Section 6.05(a), the definition of "Total Stockholders' Equity"
shall not include any amount with respect to Capital Securities.

          "Transactions" means the execution, delivery and performance by the
           ------------
Borrower of this Agreement, the borrowing of Loans and the use of the proceeds
thereof.

          "Type", when used in reference to any Loan or Borrowing, refers to
           ----
whether the rate of interest on such Loan, or on the Loans constituting such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

          "Withdrawal Liability" means liability to a Multiemployer Plan as a
           --------------------
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

          SECTION 1.02.  Terms Generally. The definitions of terms herein shall
                         ---------------
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without
<PAGE>

                                      -15-

limitation". The word "will" shall be construed to have the same meaning and
effect as the word "shall". Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

          SECTION 1.03.  Accounting Terms and Determinations.
                         -----------------------------------

          (a)  Except as otherwise expressly provided herein, all accounting
terms used herein shall be interpreted, and all financial statements and
certificates and reports as to financial matters required to be delivered to the
Lenders hereunder shall (unless otherwise disclosed to the Lenders in writing at
the time of delivery thereof in the manner described in subsection (b) below) be
prepared, in accordance with (in the case of the Borrower and its Subsidiaries
on a consolidated basis) GAAP or (in the case of certain of the Insurance
Companies) statutory accounting practices, as the case may be, applied on a
basis consistent with those used in the preparation of the latest financial
statements furnished to the Lenders hereunder (which, prior to the delivery of
the first financial statements (after the date hereof) under Section 5.01, shall
mean the financial statements as at December 31, 2000 referred to in Section
3.04(a)). All calculations made for the purposes of determining compliance with
this Agreement shall (except as otherwise expressly provided herein) be made by
application of (in the case of the Borrower and its Subsidiaries on a
consolidated basis) GAAP or (in the case of certain of the Insurance Companies)
statutory accounting practices, as the case may be, applied on a basis
consistent with those used in the preparation of the latest annual or quarterly
financial statements furnished to the Lenders pursuant to Section 5.01 (or,
prior to the delivery of the first financial statements (after the date hereof)
under Section 5.01, used in the preparation of the financial statements as at
December 31, 2000 referred to in Section 3.04(a)) unless (i) the Borrower shall
have objected to determining such compliance on such basis at the time of
delivery of such financial statements or (ii) the Majority Lenders shall so
object within 30 days after delivery of such financial statements, in either of
which events such calculations shall be made on a basis consistent with those
used in the preparation of the latest financial statements as to which such
objection shall not have been made (which, if objection is made in respect of
the first financial statements delivered under Section 5.01, shall mean the
financial statements referred to in Section 3.04(a)).

          (b)  The Borrower shall deliver to the Lenders at the same time as the
delivery of any annual or quarterly financial statement under Section 5.01 (i) a
description in reasonable detail of any material variation between the
application of accounting principles or practices employed in the preparation of
such statement and the application of accounting principles or practices
employed in the preparation of the next preceding annual or quarterly financial
statements as to which no objection has been made in accordance with the last
sentence of
<PAGE>

                                      -16-

subsection (a) above and (ii) reasonable estimates of the difference between
such statements arising as a consequence thereof.

          (c)  Notwithstanding anything to the contrary herein, the Borrower and
the Lenders agree that, if after the date hereof, changes to GAAP become
effective so as to require the reduction of the carrying amount of goodwill upon
impairment (including, without limitation, as a result of the establishment of a
benchmark), disposition of assets, discontinuance of operations or other similar
events, then, for purposes of calculating compliance with the covenants set
forth in Section 6.05, each such reduction shall be treated as an extraordinary
non-cash item and shall be disregarded.

          (d)  The Borrower will not change the last day of its fiscal year from
December 31 of each year, or the last days of the first three fiscal quarters in
each of its fiscal years from March 31, June 30 and September 30 of each year,
respectively.

                                  ARTICLE II

                                  THE CREDITS
                                  -----------

          SECTION 2.01.  The Commitments. Subject to the terms and conditions
                         ---------------
set forth herein, each Lender agrees to make Loans to the Borrower from time to
time during the Availability Period in an aggregate principal amount that will
not result in (a) such Lender's Revolving Credit Exposure exceeding such
Lender's Commitment or (b) the total Revolving Credit Exposures exceeding the
total Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans.

          SECTION 2.02.  Loans and Borrowings.
                         --------------------

          (a)  Obligations of Lenders. Each Loan shall be made as part of a
               ----------------------
Borrowing consisting of Loans of the same Type made by the Lenders ratably in
accordance with their respective Commitments. The failure of any Lender to make
any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders are several
                       --------
and no Lender shall be responsible for any other Lender's failure to make Loans
as required.

          (b)  Type of Loans. Subject to Section 2.11, each Borrowing shall be
               -------------
constituted entirely of ABR Loans or Eurodollar Loans as the Borrower may
request in accordance herewith. Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not
                          --------
affect the obligation of the Borrower to repay such Loan in accordance with the
terms of this Agreement.

          (c)  Minimum Amounts; Limitation on Number of Borrowings. At the
               ---------------------------------------------------
commencement of the Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount of $5,000,000 or a larger multiple of
$1,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be
in an aggregate amount equal to $3,000,000
<PAGE>

                                      -17-

or a larger multiple of $500,000; provided that an ABR Borrowing may be in an
                                  --------
aggregate amount that is equal to the entire unused balance of the total
Commitments. Borrowings of more than one Type may be outstanding at the same
time; provided that there shall not at any time be more than a total of five
      --------
Eurodollar Borrowings outstanding.

          (d)  Limitations on Lengths of Interest Periods. Notwithstanding any
               ------------------------------------------
other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert to or continue as a Eurodollar Borrowing, any
Borrowing if the Interest Period requested therefor would end after the
Commitment Termination Date.

          SECTION 2.03. Requests for Borrowings. To request a Borrowing, the
                        -----------------------
Borrower shall notify the Administrative Agent of such request by telephone (a)
in the case of a Eurodollar Borrowing, not later than 1:00 p.m., New York City
time, three Business Days before the date of the proposed Borrowing or (b) in
the case of an ABR Borrowing, not later than 1:00 p.m., New York City time, two
Business Day before the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request
in a form approved by the Administrative Agent and signed by the Borrower. Each
such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02:

          (i)    the aggregate amount of the requested Borrowing;

          (ii)   the date of such Borrowing, which shall be a Business Day;

          (iii)  whether such Borrowing is to be an ABR Borrowing or a
     Eurodollar Borrowing;

          (iv)   in the case of a Eurodollar Borrowing, the Interest Period
     therefor, which shall be a period contemplated by the definition of the
     term "Interest Period"; and

          (v)    the location and number of the Borrower's account to which
     funds are to be disbursed, which shall comply with the requirements of
     Section 2.04.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed
to have selected an Interest Period of one month's duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

          SECTION 2.04.  Funding of Borrowings.
                         ---------------------

          (a)  Funding by Lenders. Each Lender shall make each Loan to be made
               ------------------
by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 12:00 noon, New York City time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders. The Administrative Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to an
<PAGE>

                                      -18-

account of the Borrower maintained with the Administrative Agent in New York
City and designated by the Borrower in the applicable Borrowing Request.

          (b)  Presumption by the Administrative Agent. Unless the
               ---------------------------------------
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender's share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand
such corresponding amount with interest thereon, for each day from and including
the date such amount is made available to the Borrower to but excluding the date
of payment to the Administrative Agent, at (i) in the case of such Lender, the
Federal Funds Effective Rate or (ii) in the case of the Borrower, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

          SECTION 2.05.  Interest Elections.
                         ------------------

          (a)  Elections by the Borrower for Borrowings. Each Borrowing
               ----------------------------------------
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Borrowing, shall have the Interest Period
specified in such Borrowing Request. Thereafter, the Borrower may elect to
convert such Borrowing to a Borrowing of a different Type or to continue such
Borrowing as a Borrowing of the same Type and, in the case of a Eurodollar
Borrowing, may elect the Interest Period therefor, all as provided in this
Section. The Borrower may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans constituting such
Borrowing, and the Loans constituting each such portion shall be considered a
separate Borrowing.

          (b)  Notice of Elections. To make an election pursuant to this
               -------------------
Section, the Borrower shall notify the Administrative Agent of such election by
telephone by the time that a Borrowing Request would be required under Section
2.03 if the Borrower were requesting a Borrowing of the Type resulting from such
election to be made on the effective date of such election. Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
the Borrower.

          (c)  Information in Interest Election Requests.  Each telephonic and
               -----------------------------------------
written Interest Election Request shall specify the following information in
compliance with Section 2.02:

          (i)  the Borrowing to which such Interest Election Request applies
     and, if different options are being elected with respect to different
     portions thereof, the portions thereof to be allocated to each resulting
     Borrowing (in which case the information to be specified
<PAGE>

                                      -19-

     pursuant to clauses (iii) and (iv) of this paragraph shall be specified for
     each resulting Borrowing);

          (ii)   the effective date of the election made pursuant to such
     Interest Election Request, which shall be a Business Day;

          (iii)  whether the resulting Borrowing is to be an ABR Borrowing or a
     Eurodollar Borrowing; and

          (iv)   if the resulting Borrowing is a Eurodollar Borrowing, the
     Interest Period therefor after giving effect to such election, which shall
     be a period contemplated by the definition of the term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

          (d)    Notice by the Administrative Agent to Lenders. Promptly
                 ---------------------------------------------
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender's portion of
each resulting Borrowing.

          (e)    Failure to Elect; Events of Default. If the Borrower fails to
                 -----------------------------------
deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period therefor, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii)
unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing
at the end of the Interest Period therefor.

          SECTION 2.06.  Termination and Reduction of the Commitments.
                         --------------------------------------------

          (a)    Scheduled Termination.  Unless previously terminated, the
                 ---------------------
Commitments shall terminate on the Commitment Termination Date.

          (b)    Voluntary Termination or Reduction. The Borrower may at any
                 ----------------------------------
time terminate, or from time to time reduce, the Commitments; provided that (i)
                                                              --------
each reduction of the Commitments shall be in an amount that is $3,000,000 or a
larger multiple of $500,000 and (ii) the Borrower shall not terminate or reduce
the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.08, the total Revolving Credit Exposures
would exceed the total Commitments.

          (c)    Notice of Voluntary Termination or Reduction. The Borrower
                 --------------------------------------------
shall notify the Administrative Agent of any election to terminate or reduce the
Commitments under paragraph (b) of this Section at least three Business Days
prior to the effective date of such termination or reduction, specifying such
election and the effective date thereof. Promptly following receipt of any
notice, the Administrative Agent shall advise the Lenders of the
<PAGE>

                                      -20-

contents thereof. Each notice delivered by the Borrower pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments
                      --------
delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied.

          (d)  Effect of Termination or Reduction. Any termination or reduction
               ----------------------------------
of the Commitments shall be permanent. Each reduction of the Commitments shall
be made ratably among the Lenders in accordance with their respective
Commitments.

          SECTION 2.07.  Repayment of Loans; Evidence of Debt.
                         ------------------------------------

          (a)  Repayment. The Borrower hereby unconditionally promises to pay to
               ---------
the Administrative Agent for account of the Lenders the outstanding principal
amount of the Loans on the Commitment Termination Date.

          (b)  Manner of Payment. Prior to any repayment or prepayment of any
               -----------------
Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings to
be paid and shall notify the Administrative Agent by telephone (confirmed by
telecopy) of such selection not later than 1:00 p.m., New York City time, three
Business Days before the scheduled date of such repayment; provided that each
                                                           --------
repayment of Borrowings shall be applied to repay any outstanding ABR Borrowings
before any other Borrowings. If the Borrower fails to make a timely selection of
the Borrowing or Borrowings to be repaid or prepaid, such payment shall be
applied, first, to pay any outstanding ABR Borrowings and, second, to other
Borrowings in the order of the remaining duration of their respective Interest
Periods (the Borrowing with the shortest remaining Interest Period to be repaid
first). Each payment of a Borrowing shall be applied ratably to the Loans
included in such Borrowing.

          (c)  Maintenance of Loan Accounts by Lenders. Each Lender shall
               ---------------------------------------
maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender, including the amounts of principal and interest payable and paid to
such Lender from time to time hereunder.

          (d)  Maintenance of Loan Accounts by the Administrative Agent. The
               --------------------------------------------------------
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Type thereof and each Interest Period
therefor, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder for account of
the Lenders and each Lender's share thereof.

          (e)  Effect of Entries. The entries made in the accounts maintained
               -----------------
pursuant to paragraph (c) or (d) of this Section shall be prima facie evidence
                                                          ----- -----
of the existence and amounts of the obligations recorded therein; provided that
                                                                  --------
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

          (f)  Promissory Notes. Any Lender may request that Loans made by it be
               ----------------
evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver
<PAGE>

                                      -21-

to such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

          SECTION 2.08.  Prepayment of Loans.
                         -------------------

          (a)  Optional Prepayments Right to Prepay Borrowings. The Borrower
               -----------------------------------------------
shall have the right at any time and from time to time to prepay any Borrowing
in whole or in part, subject to the requirements of this Section.

          (b)  Notices, Etc. The Borrower shall notify the Administrative Agent
               ------------
by telephone (confirmed by telecopy) of any optional prepayment hereunder (i) in
the case of prepayment of a Eurodollar Borrowing, not later than 1:00 p.m., New
York City time, three Business Days before the date of prepayment or (ii) in the
case of prepayment of an ABR Borrowing, not later than 1:00 p.m., New York City
time, two Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of
                                                 --------
prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section 2.06, then such notice of prepayment
may be revoked if such notice of termination is revoked in accordance with
Section 2.06. Promptly following receipt of any such notice relating to a
Borrowing, the Administrative Agent shall advise the Lenders of the contents
thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of a Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the
Loans included in the prepaid Borrowing. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.10 and shall be made in the
manner specified in Section 2.07(b).

          SECTION 2.09.  Fees.
                         ----

          (a)  Commitment Fee. The Borrower agrees to pay to the Administrative
               --------------
Agent for account of each Lender a commitment fee, which shall accrue at a rate
per annum equal to the Applicable Rate on the average daily unused amount of the
Commitment of such Lender during the period from and including the date hereof
to but excluding the earlier of the date such Commitment terminates and the
Commitment Termination Date. Accrued commitment fees shall be payable on each
Quarterly Date and on the earlier of the date the Commitment terminates and the
Commitment Termination Date, commencing on the first such date to occur after
the date hereof. All commitment fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

          (b)  Utilization Fee. The Borrower agrees to pay to the Administrative
               ---------------
Agent for account of each Lender, for each day on which the aggregate principal
amount of Loans outstanding exceeds 50% of the total Commitments, a utilization
fee, which shall accrue at a rate per annum equal to the Applicable Rate on the
average daily outstanding amount of all Loans.
<PAGE>

                                      -22-

Accrued utilization fees shall be payable on each Quarterly Date and on the
earlier of the date the Commitment terminates and the Commitment Termination
Date, commencing on the first such date to occur after the date hereof. All
utilization fees shall be computed on the basis of a year of 360 days and shall
be payable for the actual number of days elapsed (including the first day but
excluding the last day).

          (c)  Administrative Agent Fees.  The Borrower agrees to pay to
               -------------------------
the Administrative Agent, for its own account, fees payable in the amounts and
at the times separately agreed upon between the Borrower and the Administrative
Agent.

          (d)  Payment of Fees. All fees payable hereunder shall be paid on the
               ---------------
dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of commitment fees and utilization fees, to the
Lenders entitled thereto. Fees paid shall not be refundable under any
circumstances.

          SECTION 2.10.  Interest.
                         --------

          (a)  ABR Loans. The Loans constituting each ABR Borrowing shall bear
               ---------
interest at a rate per annum equal to the Alternate Base Rate plus the
                                                              ----
Applicable Rate.

          (b)  Eurodollar Loans. The Loans constituting each Eurodollar
               ----------------
Borrowing shall bear interest at a rate per annum equal to the Adjusted LIBO
Rate for the Interest Period for such Borrowing plus the Applicable Rate.
                                                ----

          (c)  Default Interest. Notwithstanding the foregoing, if any principal
               ----------------
of or interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, 2% plus the rate otherwise applicable to such Loan as provided above
             ----
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR
                                            ----
Loans as provided in paragraph (a) of this Section.

          (d)  Payment of Interest. Accrued interest on each Loan shall be
               -------------------
payable in arrears on each Interest Payment Date for such Loan and upon
termination of the Commitments; provided that (i) interest accrued pursuant to
                                --------
paragraph (c) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan
prior to the Commitment Termination Date), accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or
prepayment and (iii) in the event of any conversion of any Eurodollar Borrowing
prior to the end of the Interest Period therefor, accrued interest on such
Borrowing shall be payable on the effective date of such conversion.

          (e)  Computation. All interest hereunder shall be computed on the
               -----------
basis of a year of 360 days, except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime
Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate
Base
<PAGE>

                                      -23-

Rate or Adjusted LIBO Rate shall be determined by the Administrative Agent, and
such determination shall be conclusive absent manifest error.

          SECTION 2.11.  Alternate Rate of Interest. If prior to the
                         --------------------------
commencement of the Interest Period for a Eurodollar Borrowing:

          (a)  the Administrative Agent determines (which determination shall be
     conclusive absent manifest error) that adequate and reasonable means do not
     exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

          (b)  the Administrative Agent is advised by the Required Lenders that
     the Adjusted LIBO Rate for such Interest Period will not adequately and
     fairly reflect the cost to such Lenders of making or maintaining their
     Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

          SECTION 2.12.  Increased Costs.
                         ---------------

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

          (i)  impose, modify or deem applicable any reserve, special deposit or
     similar requirement against assets of, deposits with or for account of, or
     credit extended by, any Lender (except any such reserve requirement
     reflected in the Adjusted LIBO Rate); or

          (ii) impose on any Lender or the London interbank market any other
     condition affecting this Agreement or Eurodollar Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lenders of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or
otherwise), then the Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender for such additional costs incurred or
reduction suffered.

          (b)  Capital Requirements. If any Lender determines that any Change in
               --------------------
Law regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender's capital or on the capital of such Lender's
holding company, if any, as a consequence of this Agreement or the Loans made by
such Lender to a level below that which such Lender or such Lender's holding
company could have achieved but for such Change in Law (taking into
consideration such Lender's policies and the policies of such Lender's holding
company with respect to capital adequacy), then from time to time the Borrower
will pay to such Lender such
<PAGE>

                                      -24-

additional amount or amounts as will compensate such Lender or such Lender's
holding company for any such reduction suffered.

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

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

          SECTION 2.13.  Break Funding Payments. In the event of (a) the payment
                         ----------------------
of any principal of any Eurodollar Loan other than on the last day of an
Interest Period therefor (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of an Interest
Period therefor, (c) the failure to borrow, convert, continue or prepay any Loan
on the date specified in any notice delivered pursuant hereto (regardless of
whether such notice is permitted to be revocable under Section 2.08(b) and is
revoked in accordance herewith), or (d) the assignment of any Eurodollar Loan
other than on the last day of an Interest Period therefor as a result of a
request by the Borrower pursuant to Section 2.16, then, in any such event, the
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, the loss to any
Lender attributable to any such event shall be deemed to include an amount
determined by such Lender to be equal to the excess, if any, of (i) the amount
of interest that such Lender would pay for a deposit equal to the principal
amount of such Loan for the period from the date of such payment, conversion,
failure or assignment to the last day of the then current Interest Period for
such Loan (or, in the case of a failure to borrow, convert or continue, the
duration of the Interest Period that would have resulted from such borrowing,
conversion or continuation) if the interest rate payable on such deposit were
equal to the Adjusted LIBO Rate for such Interest Period, over (ii) the amount
                                                          ----
of interest that such Lender would earn on such principal amount for such period
if such Lender were to invest such principal amount for such period at the
interest rate that would be bid by such Lender (or an affiliate of such Lender)
for Dollar deposits from other banks in the eurodollar market at the
commencement of such period. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.
<PAGE>

                                      -25-

          SECTION 2.14.  Taxes.
                         -----

          (a)  Payments Free of Taxes. Any and all payments by or on account of
               ----------------------
any obligation of the Borrower hereunder shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the
                                                            --------
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

          (b)  Payment of Other Taxes by the Borrower. In addition, the Borrower
               --------------------------------------
shall pay any Other Taxes to the relevant Governmental Authority in accordance
with applicable law.

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

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

          (e)  Foreign Lenders. Any Foreign Lender that is entitled to an
               ---------------
exemption from or reduction of withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate.

          SECTION 2.15.  Payments Generally; Pro Rata Treatment; Sharing of
                         --------------------------------------------------
Set-offs.
--------

          (a)  Payments by the Borrower. The Borrower shall make each payment
               ------------------------
required to be made by it hereunder (whether of principal, interest or fees, or
under Section 2.12, 2.13 or 2.14, or otherwise) prior to 12:00 noon, New York
City time, on the date when due, in immediately available funds, without set-off
or counterclaim; provided that if a new Loan is to
                 --------
<PAGE>

                                      -26-

be made by any Lender on a date the Borrower is to repay any principal of an
outstanding Loan of such Lender, such Lender shall apply the proceeds of such
new Loan to the payment of the principal to be repaid and only an amount equal
to the difference between the principal to be borrowed and the principal to be
repaid shall be made available by such Lender to the Administrative Agent as
provided in Section 2.04 or paid by the Borrower to the Administrative Agent
pursuant to this paragraph, as the case may be. Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed
to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 270 Park Avenue, New York, New York,
except that payments pursuant to Sections 2.12, 2.13, 2.14 and 9.03 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for account of any other Person to
the appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder shall be made in Dollars.

          (b)  Application of Insufficient Payments. If at any time insufficient
               ------------------------------------
funds are received by and available to the Administrative Agent to pay fully all
amounts of principal, interest and fees then due hereunder, such funds shall be
applied (i) first, to pay interest and fees then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, to pay principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

          (c)  Pro Rata Treatment. Except to the extent otherwise provided
               ------------------
herein: (i) each Borrowing shall be made from the Lenders, each payment of
commitment fees and utilization fees under Section 2.09 shall be made for
account of the Lenders, and each termination or reduction of the amount of the
Commitments under Section 2.06 shall be applied to the respective Commitments of
the Lenders, pro rata according to the amounts of their respective Commitments;
(ii) each Borrowing shall be allocated pro rata among the Lenders according to
the amounts of their respective Commitments (in the case of the making of Loans)
or their respective Loans (in the case of conversions and continuations of
Loans); (iii) each payment or prepayment of principal of Loans by the Borrower
shall be made for account of the Lenders pro rata in accordance with the
respective unpaid principal amounts of the Loans held by them; and (iv) each
payment of interest on Loans by the Borrower shall be made for account of the
Lenders pro rata in accordance with the amounts of interest on such Loans then
due and payable to the respective Lenders.

          (d)  Sharing of Payments by Lenders. If any Lender shall, by
               ------------------------------
exercising any right of set-off or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of its Loans resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its
Loans and accrued interest thereon then due than the proportion received by any
other Lender, then the Lender receiving such greater proportion shall purchase
(for cash at face value) participations in the Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans; provided that
                                            --------
<PAGE>

                                      -27-

(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded
and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to
apply to any payment made by the Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans to any assignee or participant, other than to the Borrower or any
Subsidiary or Affiliate thereof (as to which the provisions of this paragraph
shall apply). The Borrower consents to the foregoing and agrees, to the extent
it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

          (e)  Presumptions of Payment. Unless the Administrative Agent shall
               -----------------------
have received notice from the Borrower prior to the date on which any payment is
due to the Administrative Agent for account of the Lenders hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender with interest thereon, for each
day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the Federal Funds
Effective Rate.

          (f)  Certain Deductions by the Administrative Agent. If any Lender
               ----------------------------------------------
shall fail to make any payment required to be made by it pursuant to Section
2.04(b) or 2.15(e), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for account of such Lender to satisfy such
Lender's obligations under such Sections until all such unsatisfied obligations
are fully paid.

          SECTION 2.16.  Mitigation Obligations; Replacement of Lenders.
                         ----------------------------------------------

          (a)  Designation of a Different Lending Office. If any Lender requests
               -----------------------------------------
compensation under Section 2.12, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for account of any
Lender pursuant to Section 2.14, then such Lender shall use reasonable efforts
to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 2.12 or 2.14, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b)  Replacement of Lenders. If (i) any Lender requests compensation
               ----------------------
under Section 2.12, (ii) the Borrower is required to pay any additional amount
to any Lender or any
<PAGE>

                                      -28-

Governmental Authority for account of any Lender pursuant to Section 2.14, (iii)
any Lender defaults in its obligation to fund Loans hereunder or (iv) any Lender
is subject to a conservatorship or a receivership with, or is otherwise directly
or indirectly under the control of, the Federal Deposit Insurance Corporation
(or any successor thereto) or the Resolution Trust Company (or any successor
thereto), then the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (x) the
Borrower shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (y) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts)
and (z) in the case of any such assignment resulting from a claim for
compensation under Section 2.12 or payments required to be made pursuant to
Section 2.14, such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

                                  ARTICLE III

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

          The Borrower represents and warrants to the Lenders that:

          SECTION 3.01.  Organization; Powers. Each of the Borrower and its
                         --------------------
Material Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

          SECTION 3.02.  Authorization; Enforceability. The Transactions are
                         -----------------------------
within the Borrower's corporate powers and have been duly authorized by all
necessary corporate and, if required, by all necessary shareholder action. This
Agreement has been duly executed and delivered by the Borrower and constitutes a
legal, valid and binding obligation of the Borrower, enforceable in accordance
with its terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforcement of creditors' rights and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

          SECTION 3.03.  Governmental Approvals; No Conflicts. The Transactions
                         ------------------------------------
(a) do not require any consent or approval of, registration or filing with, or
any other action by,
<PAGE>

                                      -29-

any Governmental Authority, except such as have been obtained or made and are in
full force and effect, (b) will not violate any applicable law or regulation or
the charter, by-laws or other organizational documents of the Borrower or any of
its Subsidiaries or any order of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other
instrument binding upon the Borrower or any of its Material Subsidiaries or
assets, or give rise to a right thereunder to require any payment to be made by
any such Person, and (d) will not result in the creation or imposition of any
Lien on any asset of the Borrower or any of its Subsidiaries.

          SECTION 3.04.  Financial Condition, Etc.
                         ------------------------

          (a)    Financial Condition.  The Borrower has heretofore furnished to
                 -------------------
the Lenders each of the following:

          (i)    its consolidated balance sheet and statements of income,
     stockholders equity and cash flows (a) as of and for the fiscal year ended
     December 31, 2000, reported on by PricewaterhouseCoopers LLP, independent
     public accountants, and (b) as of and for the fiscal quarter and the
     portion of the fiscal year ended June 30, 2001, certified by its chief
     financial officer. Such consolidated financial statements present fairly,
     in all material respects, the financial position and results of operations
     and cash flows of the Borrower and its Consolidated Subsidiaries as of such
     date and for such period in accordance with GAAP, subject to year-end
     adjustments and the absence of footnotes in the case of the statements
     referred to in clause (b) above;

          (ii)   the Statutory Statements for the year ended December 31, 2000
     of each Insurance Company that is a Material Subsidiary and that is
     required by any Applicable Insurance Regulatory Authority to file such
     Statutory Statements, and such Statutory Statements have been prepared in
     accordance with statutory accounting practices and filed with the
     Applicable Insurance Regulatory Authorities, and present fairly, in all
     material respects, the financial condition of such Insurance Company as at
     said date and its results of operations for the fiscal year ended on said
     date in accordance with statutory accounting practices; and

          (iii)  consolidated balance sheets of each Material Subsidiary which
     is not an Insurance Company described in paragraph (ii) above and its
     Consolidated Subsidiaries as at December 31, 2000, and the related
     consolidated statements of income, stockholders' equity and cash flow of
     such Material Subsidiary and its Consolidated Subsidiaries for its fiscal
     year ended on said date, and all such financial statements present fairly,
     in all material respects, the consolidated financial condition of such
     Material Subsidiary and its Consolidated Subsidiaries as at the applicable
     date and the consolidated results of their operations for the fiscal year
     ended on said date, all in accordance with GAAP and practices applied on a
     consistent basis.

          (b)    No Material Adverse Change. Since December 31, 2000, there has
                 --------------------------
been no material adverse change in the business, assets, operations, prospects
or condition, financial or otherwise, of the Borrower and its Subsidiaries,
taken as a whole.
<PAGE>

                                      -30-

          SECTION 3.05.  Properties.
                         ----------

          (a)  Property Generally. Each of the Borrower and its Subsidiaries has
               ------------------
good title to, or valid leasehold interests in, all its real and personal
property material to its business, subject only to Liens permitted by Section
6.02 and except for minor defects in title that do not interfere with its
ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes.

          (b)  Intellectual Property. Each of the Borrower and its Subsidiaries
               ---------------------
owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and
other intellectual property material to its business, and the use thereof by the
Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION 3.06.  Litigation and Environmental Matters.
                         ------------------------------------

          (a)  Actions, Suits and Proceedings. There are no actions, suits or
               ------------------------------
proceedings by or before any arbitrator or Governmental Authority now pending
against or, to the knowledge of the Borrower, threatened against or affecting
the Borrower or any of its Subsidiaries (i) that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve
this Agreement or the Transactions.

          (b)  Environmental Matters. Except for the Disclosed Matters and
               ---------------------
except with respect to any other matters that, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect, neither
the Borrower nor any of its Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law, (ii) has become subject to
any Environmental Liability, (iii) has received notice of any claim with respect
to any Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

          (c)  Disclosed Matters. Since the date of this Agreement, there has
               -----------------
been no change in the status of the Disclosed Matters that, individually or in
the aggregate, has resulted in, or materially increased the likelihood of, a
Material Adverse Effect.

          SECTION 3.07. Compliance with Laws and Agreements. Each of the
                        -----------------------------------
Borrower and its Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.08.  Investment and Holding Company Status. Neither the
                         -------------------------------------
Borrower nor any of its Subsidiaries is (a) an "investment company" as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

          SECTION 3.09.  Taxes, Etc. The Borrower and its Subsidiaries have
                         ----------
timely filed or caused to be filed all Federal income tax returns and all other
material tax returns and reports
<PAGE>

                                      -31-

required to have been filed and have paid or caused to be paid all taxes
required to have been paid by it, except (a) taxes that are being contested in
good faith by appropriate proceedings and for which such Person has set aside on
its books adequate reserves or (b) to the extent that the failure to do so could
not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10.  ERISA. No ERISA Event has occurred or is reasonably
                         -----
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect.

          SECTION 3.11.  Disclosure. The Borrower has disclosed to the Lenders
                         ----------
all agreements, instruments and corporate or other restrictions to which it or
any of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. None of the reports, financial statements, certificates
or other information furnished by or on behalf of the Borrower to the Lender in
connection with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading as of the date made; provided that, with respect to
                                               --------
projected financial information, the Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

          SECTION 3.12.  Use of Credit. Neither the Borrower nor any of its
                         -------------
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose, whether immediate, incidental
or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any Loan hereunder will be used to buy or carry any Margin Stock.

          SECTION 3.13.  Indebtedness and Liens.
                         ----------------------

          (a)  Indebtedness. Part A of Schedule II is a list of all Indebtedness
               ------------
(other than Indebtedness created pursuant to this Agreement) of the Borrower and
its Subsidiaries on the date hereof, to the extent that any such Indebtedness
has an aggregate principal or face amount which equals or exceeds (or may equal
or exceed) $10,000,000. Indebtedness of the Borrower and its Consolidated
Subsidiaries existing on the date hereof does not exceed an aggregate principal
or face amount of $750,000,000.

          (b)  Liens. Part B of Schedule II is a list of all Liens of the
               -----
Borrower and its Subsidiaries existing on the date hereof, to the extent any
such Lien secures Indebtedness in an aggregate principal or face amount which
equals or exceeds (or may equal or exceed) $10,000,000. Liens of the Borrower
and its Consolidated Subsidiaries existing on the date hereof and not set forth
on Schedule II secure Indebtedness in an aggregate principal or face amount not
exceeding $150,000,000.
<PAGE>

                                      -32-

                                  ARTICLE IV

                                  CONDITIONS
                                  ----------

          SECTION 4.01.  Closing Date. The obligations of the Lenders to make
                         ------------
Loans hereunder shall not become effective until the date on which the
Administrative Agent shall have received each of the following documents, each
of which shall be satisfactory to the Administrative Agent (and to the extent
specified below, to each Lender) in form and substance (or such condition shall
have been waived in accordance with Section 9.02):

          (a)  Executed Counterparts. From each party hereto either (i) a
               ---------------------
     counterpart of this Agreement signed on behalf of such party or (ii)
     written evidence satisfactory to the Administrative Agent (which may
     include telecopy transmission of a signed signature page to this Agreement)
     that such party has signed a counterpart of this Agreement.

          (b)  Opinion of Counsel to the Borrower. A favorable written opinion
               ----------------------------------
     (addressed to the Administrative Agent and the Lenders and dated the
     Closing Date) of Craig I. DeRoy, general counsel for the Borrower,
     substantially in the form of Exhibit B, and covering such other matters
     relating to the Borrower, this Agreement or the Transactions as the
     Required Lenders shall reasonably request (and the Borrower hereby
     instructs such counsel to deliver such opinion to the Lenders and the
     Administrative Agent).

          (c)  Opinion of Special New York Counsel to Chase. An opinion, dated
               --------------------------------------------
     the Closing Date, of Milbank, Tweed, Hadley & McCloy LLP, special New York
     counsel to Chase, substantially in the form of Exhibit C (and Chase hereby
     instructs such counsel to deliver such opinion to the Lenders).

          (d)  Corporate Documents. Such documents and certificates as the
               -------------------
     Administrative Agent or its counsel may reasonably request relating to the
     organization, existence and good standing of the Borrower, the
     authorization of the Transactions and any other legal matters relating to
     the Borrower, this Agreement or the Transactions, all in form and substance
     satisfactory to the Administrative Agent and its counsel.

          (e)  Officer's Certificate. A certificate, dated the Closing Date and
               ---------------------
     signed by the President, a Vice President or a senior financial officer of
     the Borrower, confirming compliance with the conditions set forth in the
     lettered clauses of the first sentence of Section 4.02.

          (f)  Existing Credit Agreements.  Evidence of the termination of the
               --------------------------
     commitments of the lenders under the Existing Credit Agreements and the
     payment in full of all principal, interest and other amounts payable by the
     Borrower thereunder.

          (g)  Other Documents.  Such other documents as the Administrative
               ---------------
     Agent or any Lender or special New York counsel to Chase may reasonably
     request.

          The obligation of any Lender to make its initial Loan hereunder is
also subject to the payment by the Borrower of such fees as the Borrower shall
have agreed to pay to any Lender or the Administrative Agent in connection
herewith, including the reasonable fees and
<PAGE>

                                      -33-

expenses of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to
Chase, in connection with the negotiation, preparation, execution and delivery
of this Agreement and the Loans hereunder (to the extent that statements for
such fees and expenses have been delivered to the Borrower).

          The Administrative Agent shall notify the Borrower and the Lenders of
the Closing Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to make Loans
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 9.02) on or prior to 3:00 p.m., New
York City time, on October 30, 2001 (and, in the event such conditions are not
so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02.  Each Credit Event.  The obligation of each Lender to
                         -----------------
make a Loan on the occasion of any Borrowing is subject to the satisfaction of
the following conditions:

          (a)  the representations and warranties of the Borrower set forth in
     this Agreement shall be true and correct on and as of the date of such
     Borrowing (or, if any such representation or warranty is expressly stated
     to have been made as of a specified date, as of such specified date); and

          (b)  at the time of and immediately after giving effect to such
     Borrowing, no Default shall have occurred and be continuing.

Each Borrowing shall be deemed to constitute a representation and warranty by
the Borrower on the date thereof as to the matters specified in the preceding
sentence.

                                   ARTICLE V

                             AFFIRMATIVE COVENANTS
                             ---------------------

          Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full, the Borrower covenants and agrees with the Lenders that:

          SECTION 5.01.  Financial Statements and Other Information.  The
                         ------------------------------------------
Borrower will furnish to the Administrative Agent and each Lender:

          (a)  within 90 days after the end of each fiscal year of the Borrower,
     the audited consolidated balance sheets and related statements of
     operations, stockholders' equity and cash flows of the Borrower and its
     Subsidiaries as of the end of and for such year, setting forth in each case
     in comparative form the figures for the previous fiscal year, all reported
     on by PricewaterhouseCoopers LLP or other independent public accountants of
     recognized national standing (without a "going concern" or like
     qualification or exception and without any qualification or exception as to
     the scope of such audit) to the effect that such consolidated financial
     statements present fairly in all material respects the financial condition
     and results of operations of the Borrower and its Subsidiaries on a
     consolidated basis in accordance with GAAP consistently applied;
<PAGE>

                                      -34-

          (b)  within 45 days after the end of each of the first three fiscal
     quarters of each fiscal year of the Borrower, the consolidated balance
     sheets and related statements of operations, stockholders' equity and cash
     flows of the Borrower and its Subsidiaries as of the end of and for such
     fiscal quarter and the then elapsed portion of the fiscal year, setting
     forth in each case in comparative form the figures for (or, in the case of
     the balance sheet, as of the end of) the corresponding period or periods of
     the previous fiscal year, all certified by a senior financial officer of
     the Borrower as presenting fairly in all material respects the financial
     condition and results of operations of the Borrower and its Subsidiaries on
     a consolidated basis in accordance with GAAP consistently applied, subject
     to normal year-end audit adjustments and the absence of footnotes;

          (c)  concurrently with any delivery of financial statements under
     clause (a) or (b) of this Section, a certificate of a senior financial
     officer of the Borrower (i) certifying as to whether a Default has occurred
     and, if a Default has occurred, specifying the details thereof and any
     action taken or proposed to be taken with respect thereto and (ii) setting
     forth reasonably detailed calculations demonstrating compliance with
     Section 6.05;

          (d)  upon request of any Lender, a copy of any final financial
     examination report (including, without limitation, any report in respect of
     any tri-annual examination conducted by any Applicable Insurance Regulatory
     Authority) or market conduct examination report issued by or prepared for
     any governmental authority (including any Applicable Insurance Regulatory
     Authority) with respect to any Insurance Company that is a Material
     Subsidiary; and to the extent disclosure to the Lenders is permitted by
     law, a copy of any financial examination report issued by or prepared for
     any governmental authority (including any Applicable Bank Regulatory
     Authority) with respect to the Borrower, First American Trust or First
     Security Thrift;

          (e)  within 45 days after the end of each of the first three quarterly
     fiscal periods of each fiscal year of FATICO, Statutory Statements of
     FATICO (prepared in accordance with statutory accounting practices required
     or permitted by the Applicable Insurance Regulatory Authority) for such
     fiscal period, accompanied by a certificate of a senior financial officer
     of FATICO which certificate shall state that such financial statements
     present the financial condition of FATICO in accordance with statutory
     accounting practices required or permitted by the Applicable Insurance
     Regulatory Authority;

          (f)  within 90 days after the end of each fiscal year of FATICO, the
     annual Statutory Statement of FATICO (prepared in accordance with statutory
     accounting practices required or permitted by the Applicable Insurance
     Regulatory Authority) for such year and as filed with the Insurance
     Department of the State of California, accompanied by (i) a certificate of
     a senior financial officer of FATICO stating that said Statutory Statement
     presents the financial condition of FATICO in accordance with the statutory
     accounting practices required or permitted by the applicable Insurance
     Regulatory Authority, (ii) a certificate of a senior financial officer of
     FATICO, affirming the adequacy of Reserves of FATICO as at the end of such
     fiscal year and (iii) a report by Milliman & Robertson, Inc., or such other
     actuarial firm of nationally recognized professional standing, affirming
     the adequacy of Reserves of FATICO as at the end of such fiscal year;
<PAGE>

                                      -35-

          (g)  promptly after the same become publicly available, copies of all
     periodic and other reports, proxy statements and other materials filed by
     the Borrower or any of its Subsidiaries with the Securities and Exchange
     Commission (the "SEC"), or any Governmental Authority succeeding to any or
                      ---
     all of the functions of said Commission, or with any national securities
     exchange, or distributed by the Borrower to its shareholders generally, as
     the case may be, provided that if any such report, statement or other
                      --------
     material is electronically filed by the Company with the SEC and is
     publicly available through the internet or other electronic means, the
     Company will notify the Lenders promptly following such filing and, only
     upon the request of any Lender, furnish a copy of such report, statement or
     other material to such Lender; and

          (h)  promptly following any request therefor, such other information
     regarding the operations, business affairs and financial condition of the
     Borrower or any of its Subsidiaries, or compliance with the terms of this
     Agreement, as the Administrative Agent or any Lender may reasonably
     request.

          SECTION 5.02.  Notices of Material Events.  The Borrower will
                         --------------------------
furnish to the Administrative Agent and each Lender prompt written notice of the
following:

          (a)  the occurrence of any Default;

          (b)  the filing or commencement of any action, suit or proceeding by
     or before any arbitrator or Governmental Authority against or affecting the
     Borrower or any of its Affiliates that, if adversely determined, could
     reasonably be expected to result in a Material Adverse Effect;

          (c)  the occurrence of any ERISA Event that, alone or together with
     any other ERISA Events that have occurred, could reasonably be expected to
     result in liability of the Borrower and its Subsidiaries in an aggregate
     amount exceeding $25,000,000;

          (d)  the assertion of any environmental matter by any Person against,
     or with respect to the activities of, the Borrower or any of its
     Subsidiaries and any alleged violation of or non-compliance with any
     Environmental Laws or any permits, licenses or authorizations, other than
     any environmental matter or alleged violation that, if adversely
     determined, would not (either individually or in the aggregate) have a
     Material Adverse Effect;

          (e)  immediately, notice of actual (or threatened action that could
     reasonably be expected to lead to the) suspension, termination or
     revocation of any License of any Insurance Company which is a Material
     Subsidiary by any governmental authority (including any Applicable
     Insurance Regulatory Authority), including any notice by any governmental
     authority of the commencement of any proceeding, hearing or administrative
     action to suspend, terminate or revoke any such License as a result of the
     failure by any such Insurance Company to take or refrain from taking, any
     action which could reasonably be expected to materially adversely affect
     the authority of such Insurance Company to conduct its business after
     notice thereof by such governmental authority (including any such
     Applicable Insurance Regulatory Authority);
<PAGE>

                                      -36-

          (f)  promptly after the Borrower knows or has reason to believe that
     any insurance, banking or other regulator having jurisdiction over the
     Borrower or any of its Material Subsidiaries has commenced any proceeding,
     issued any order, given notice of a formal hearing, sought relief from any
     court or taken any similar action with respect to the Borrower or any of
     its Material Subsidiaries that seeks to, or would, result in the revocation
     of any license or authorization of the Borrower or any of its Material
     Subsidiaries or materially restrict the ability of the Borrower or any of
     its Material Subsidiaries to do business in any jurisdiction, a notice
     describing in reasonable detail such proceeding, order, hearing or similar
     action; and

          (g)  any other development that results in, or could reasonably be
     expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a senior financial officer or other executive officer of the Borrower setting
forth the details of the event or development requiring such notice and any
action taken or proposed to be taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. The Borrower will, and
                        ------------------------------
will cause each of its Material Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; provided that the foregoing shall not prohibit
                                --------
any merger, consolidation, liquidation or dissolution permitted under Section
6.03.

          SECTION 5.04.  Payment of Obligations. The Borrower will, and will
                         ----------------------
cause each of its Material Subsidiaries to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect before
the same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
the Borrower or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

          SECTION 5.05.  Maintenance of Properties. The Borrower will, and will
                         -------------------------
cause each of its Material Subsidiaries to, keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted.

          SECTION 5.06.  Books and Records; Inspection Rights. The Borrower
                         ------------------------------------
will, and will cause each of its Material Subsidiaries to, keep proper books of
record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities. The
Borrower will, and will cause each of its Material Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.

          SECTION 5.07.  Compliance with Laws and Agreements. The Borrower will,
                         -----------------------------------
and will cause each of its Material Subsidiaries to, comply with all laws,
rules, regulations and
<PAGE>

                                      -37-

orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 5.08. Insurance. The Borrower will, and will cause each of its
                        ---------
Subsidiaries to, keep insured by financially sound and reputable insurers all
Property of a character usually insured by corporations engaged in the same or
similar business similarly situated against loss or damage of the kinds and in
the amounts customarily insured against by such corporations and carry such
other insurance as is usually carried by such corporations.

                                  ARTICLE VI

                              NEGATIVE COVENANTS
                              ------------------

          Until the Commitments have expired or terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in full,
the Borrower covenants and agrees with the Lenders that:

          SECTION 6.01.  Indebtedness.  The Borrower will not permit any of its
                         ------------
Subsidiaries to create, incur, assume or permit to exist any Indebtedness,
except:

          (a)  Indebtedness created hereunder;

          (b)  Indebtedness outstanding on the date hereof;

          (c)  Indebtedness of a Person that becomes a Subsidiary after the date
     hereof, provided that (i) such Indebtedness was not incurred in connection
     with, or in contemplation of, such Person becoming a Subsidiary and (ii)
     the aggregate principal amount of Indebtedness permitted under this clause
     (c) shall not exceed $100,000,000 at any one time outstanding;

          (d)  Indebtedness of any Subsidiary of the Borrower to the Borrower or
     to any other Subsidiary of the Borrower;

          (e)  Arbitrage Loans;

          (f)  Indebtedness of FAREISI and FATICO to the Borrower representing
     intercompany loans made by the Borrower from net proceeds received by the
     Borrower from its Equity Issuances;

          (g)  additional Indebtedness of the Insurance Companies in respect of
     letters of credit (or similar instruments) and Guarantees issued in the
     ordinary course of the title insurance business, so long as the aggregate
     amount of all such Indebtedness does not exceed $25,000,000 at any one time
     outstanding;
<PAGE>

                                      -38-

          (h)  Indebtedness of Subsidiaries in respect of letters of credit (or
     similar instruments) and guarantees issued in connection with settlement or
     administration of claims made against any of its Subsidiaries under
     insurance policies of the type usually carried by corporations engaged in
     businesses or activities that are the same as or similar to those of the
     Borrower and its Subsidiaries;

          (i)  Indebtedness of any Subsidiary secured by a Lien upon real
     Property, provided that (A) the holder of such Indebtedness has recourse
               --------
     only to such real Property or (B)(i) the aggregate principal amount of
     Indebtedness permitted under this clause (i) shall not exceed $100,000,000
     at any one time outstanding and (ii) the principal amount of such
     Indebtedness does not exceed 80% of the market value of such real property;

          (j)  additional Indebtedness of Subsidiaries not exceeding 20% of
     Total Stockholder's Equity;

          (k)  obligations under Sale/Leaseback Transactions and Synthetic
     Leases permitted by Section 6.07;

          (l)  so long as no Default has occurred and is continuing, other
     unsecured Indebtedness in an aggregate principal amount not to exceed
     $75,000,000 at any one time outstanding; and

          (m)  any extension, renewal or refinancing of the foregoing.

          SECTION 6.02.  Liens. The Borrower will not, nor will it permit any of
                         -----
its Subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

          (a)  Liens in existence on the date hereof;

          (b)  Permitted Encumbrances;

          (c)  Liens upon Property of any Person which becomes a Subsidiary of
     the Borrower after the date hereof, provided that such Liens are in
                                         --------
     existence at the time such Person becomes a Subsidiary of the Borrower and
     were not created in anticipation thereof;

          (d)  Liens upon tangible personal Property used primarily in the
     ordinary course of the business of the Borrower and its Subsidiaries and
     acquired after the date hereof;

          (e)       Liens upon real Property securing Indebtedness permitted by
     Section 6.01(i);

          (f)  Liens upon the Property of First American Trust and First
     American Title & Trust Company which are created in the ordinary course of
     their respective financial services businesses as such businesses are
     conducted as of the date hereof;
<PAGE>

                                      -39-

          (g)  Liens upon Property of the Borrower or any Subsidiary which are
     created pursuant to real estate exchange transactions (benefiting from the
     tax treatment of Section 1031 of the Code) in the ordinary course of their
     respective financial services businesses as such businesses are conducted
     as of the date hereof;

          (h)  Liens upon Property of any Subsidiary of the Borrower securing
     Indebtedness of such Subsidiary to the Borrower or another Subsidiary of
     the Borrower that is the direct or indirect parent entity of such
     Subsidiary permitted by Section 6.01;

          (i)  Liens upon Property of the Borrower or any of its Subsidiaries
     securing Arbitrage Loans; provided that no such Lien shall extend to or
                               --------
     cover any such Property other than the securities and/or other investments
     in which the proceeds of such Arbitrage Loans have been invested;

          (j)  Liens under Sale/Leaseback Transactions and Synthetic Leases
     permitted by Section 6.07; provided that no such Lien shall extend to or
                                --------
     cover any property other than the property subject to such Sale/Leaseback
     Transactions and/or Synthetic Leases;

          (k)  so long as no Default has occurred and is continuing, other Liens
     securing obligations in an aggregate amount not to exceed $15,000,000 at
     any time outstanding; and

          (l)  any extension, renewal or replacement of the foregoing, provided,
                                                                       --------
     however, that the Liens permitted hereunder shall not be spread to cover
     -------
     any additional Indebtedness or Property (other than a substitution of like
     Property).

          SECTION 6.03.  Fundamental Changes.
                         -------------------

          (a)  Mergers, Consolidations, Disposal of Assets, Etc. The Borrower
               ------------------------------------------------
will not, nor will it permit any of its Subsidiaries to, merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its
assets, or all or substantially all of the stock of any of its Subsidiaries (in
each case, whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing, (i) any Subsidiary may merge
into the Borrower in a transaction in which the Borrower is the surviving
corporation, (ii) any Subsidiary may merge into any Person in a transaction in
which the surviving entity is a Subsidiary, (iii) any Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to the Borrower or to another
Subsidiary and (iv) any Subsidiary may liquidate, dissolve or dispose of a line
of business if the Borrower determines in good faith that such liquidation,
dissolution or disposal is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders.

          (b)  Lines of Business. The Borrower will not, nor will it permit any
               -----------------
of its Material Subsidiaries to engage to any material extent in any business
other than the businesses of the type conducted by the Borrower and its Material
Subsidiaries on the date of execution of this Agreement and businesses
reasonably related thereto.
<PAGE>

                                      -40-

          SECTION 6.04.  Transactions with Affiliates. The Borrower will not,
                         ----------------------------
nor will it permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions in the ordinary course of business at prices
and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm's-length basis from unrelated third
parties, (b) transactions between or among the Borrower and its Wholly Owned
Subsidiaries not involving any other Affiliate and (c) customary fees paid to
members of the board of directors of the Borrower or any of its Subsidiaries.

          SECTION 6.05.  Financial Covenants.
                         -------------------

          (a)  Total Stockholders' Equity. The Borrower will not permit Total
               --------------------------
Stockholders' Equity at any time to be less than the sum of (i) $750,000,000
plus (ii) 100% of the net cash proceeds from the issuance of any capital stock
----
of the Borrower or any of its Consolidated Subsidiaries after the date hereof,
excluding any proceeds received from the exercise of stock options held by
officers, directors, employees, or consultants of the Borrower or any of its
Subsidiaries.

          (b)  Total Debt to Total Capitalization. The Borrower will not permit
               ----------------------------------
Total Debt at any time to exceed 40% of Total Capitalization.

          (c)  Combined Earnings. The Borrower will not permit Combined Earnings
               -----------------
for any period of eight consecutive rolling fiscal quarters to be less
than $225,000,000 at any time.

          (d)  Aggregate Funded Debt. The Borrower will not permit the aggregate
               ---------------------
amount of Funded Debt of all of its Subsidiaries at any time to exceed
20% of Total Stockholders' Equity.

          SECTION 6.06.  Foreclosure on Subject Property. The Borrower will not,
                         -------------------------------
nor will it permit any of its Subsidiaries to, acquire ownership or control of
any commercial real property with a fair market value of $2,000,000 or more and
which is used for commercial purposes by means of the exercise of any right of
foreclosure, power of sale or similar remedy it may avail itself of by way of
any indenture of mortgage or similar instrument relating to such commercial real
property (the "Subject Property"), or accept a deed to the Subject Property in
               ----------------
lieu of foreclosure or in settlement of any title insurance claim against it,
unless the Borrower shall have theretofore caused a Phase I Environmental Review
(as defined below) with respect to the Subject Property to be conducted. The
Borrower agrees to provide to any Lender a copy of such Environmental Review
within 60 days of any request by such Lender therefor. As used herein, the
following terms shall have the following respective meanings: "Phase I
                                                               -------
Environmental Review" means an environmental survey and assessment prepared by
--------------------
an independent engineer selected by the Borrower expert in the identification
and analysis of environmental risks (such engineer and his agents being referred
to as the "Environmental Consultant"), such survey and assessment to (a)
           ------------------------
estimate current liabilities and assess potential sources of future liabilities
of any owner or operator of, or any other Person having control of, the Subject
Property arising under the Comprehensive Response, Compensation and Liability
Act, the Superfund Amendments and Reauthorization Act of 1986, the Resource
Conservation
<PAGE>

                                      -41-

and Recovery Act, in each case as amended, and any other act or regulation of
any Federal, state or local environmental authority having authority in respect
of the Subject Property and (b) be based upon (i) a physical on-site inspection
by the Environmental Consultant of the Subject Property (without any excavation
of the Subject Property), (ii) interviews by the Environmental Consultant of
individuals who have direct managerial responsibility for operations on the
Subject Property, (iii) a review by the Environmental Consultant of records
relating to current and historical operations conducted at the Subject Property
and (iv) as deemed appropriate by the Environmental Consultant, interviews by
the Environmental Consultant of individuals in the area in which the Subject
Property is located who may have knowledge of current and historical operations
conducted at the Subject Property.

          SECTION 6.07.  Sale/Leaseback Transactions and Synthetic Leases. The
                         ------------------------------------------------
Borrower will not, nor will it permit any of its Subsidiaries to, enter into any
Sale/Leaseback Transaction or Synthetic Lease, if, as a result thereof, the
aggregate amount of rent and lease payments payable in any fiscal year by the
Borrower and its Subsidiaries under all such arrangements would exceed
$50,000,000.

                                  ARTICLE VII

                               EVENTS OF DEFAULT
                               -----------------

          If any of the following events ("Events of Default") shall occur:
                                           -----------------

          (a)  the Borrower shall fail to pay any principal of any Loan when and
     as the same shall become due and payable, whether at the due date thereof
     or at a date fixed for prepayment thereof or otherwise;

          (b)  the Borrower shall fail to pay any interest on any Loan or any
     fee or any other amount (other than an amount referred to in clause (a) of
     this Article) payable under this Agreement, when and as the same shall
     become due and payable, and such failure shall continue unremedied for a
     period of three or more Business Days;

          (c)  any representation or warranty made or deemed made by or on
     behalf of the Borrower in or in connection with this Agreement or any
     amendment or modification hereof, or in any report, certificate, financial
     statement or other document furnished pursuant to or in connection with
     this Agreement or any amendment or modification hereof, shall prove to have
     been incorrect in any material respect when made or deemed made;

          (d)  the Borrower shall fail to observe or perform any covenant,
     condition or agreement contained in Section 5.02(a) or (g) or in Article VI
     (other than Section 6.07);

          (e)  the Borrower shall fail to observe or perform any covenant,
     condition or agreement contained in this Agreement (other than those
     specified in clause (a), (b) or (d) of this Article) and such failure shall
     continue unremedied for a period of 30 or more days after notice thereof
     from the Administrative Agent (given at the request of any Lender) to the
     Borrower;
<PAGE>

                                      -42-

          (f)  the Borrower or any of its Subsidiaries shall fail to make any
     payment (whether of principal or interest and regardless of amount) in
     respect of any Indebtedness aggregating $10,000,000 or more, when and as
     the same shall become due and payable (beyond any applicable grace period
     expressly set forth in the governing documents); or any event or condition
     occurs that results in any such Indebtedness becoming due prior to its
     scheduled maturity or that enables or permits (with or without the giving
     of notice, the lapse of time or both) the holder or holders of any such
     Indebtedness or any trustee or agent on its or their behalf to cause any
     such Indebtedness to become due, or to require the prepayment, repurchase,
     redemption or defeasance thereof, prior to its scheduled maturity;

          (g)  an involuntary proceeding shall be commenced or an involuntary
     petition shall be filed seeking (i) liquidation, reorganization or other
     relief in respect of the Borrower or any of its Subsidiaries or its debts,
     or of a substantial part of its assets, under any Federal, state or foreign
     bankruptcy, insolvency, receivership or similar law now or hereafter in
     effect or (ii) the appointment of a receiver, trustee, custodian,
     sequestrator, conservator or similar official for the Borrower or any of
     its Subsidiaries or for a substantial part of its assets, and, in any such
     case, such proceeding or petition shall continue undismissed for a period
     of 60 or more days or an order or decree approving or ordering any of the
     foregoing shall be entered;

          (h)  the Borrower or any of its Subsidiaries shall (i) voluntarily
     commence any proceeding or file any petition seeking liquidation,
     reorganization or other relief under any Federal, state or foreign
     bankruptcy, insolvency, receivership or similar law now or hereafter in
     effect, (ii) consent to the institution of, or fail to contest in a timely
     and appropriate manner, any proceeding or petition described in clause (g)
     of this Article, (iii) apply for or consent to the appointment of a
     receiver, trustee, custodian, sequestrator, conservator or similar official
     for the Borrower or any of its Subsidiaries or for a substantial part of
     its assets, (iv) file an answer admitting the material allegations of a
     petition filed against it in any such proceeding, (v) make a general
     assignment for the benefit of creditors or (vi) take any action for the
     purpose of effecting any of the foregoing;

          (i)  the Borrower or any of its Subsidiaries shall become unable,
     admit in writing its inability or fail generally to pay its debts as they
     become due;

          (j)  one or more judgments for the payment of money in an aggregate
     amount in excess of $10,000,000 shall be rendered against the Borrower or
     any of its Subsidiaries or any combination thereof and the same shall
     remain undischarged for a period of 30 consecutive days during which
     execution shall not be effectively stayed, or any action shall be legally
     taken by a judgment creditor to attach or levy upon any assets of the
     Borrower or any of its Subsidiaries to enforce any such judgment;

          (k)  an ERISA Event shall have occurred that, in the opinion of the
     Required Lenders, when taken together with all other ERISA Events that have
     occurred, could reasonably be expected to result in a Material Adverse
     Effect;
<PAGE>

                                      -43-

          (l)  a reasonable basis shall exist for the assertion against the
     Borrower or any of its Subsidiaries, or any predecessor in interest of the
     Borrower or any of its Subsidiaries, of (or there shall have been asserted
     against the Borrower or any of its Subsidiaries) any claims or liabilities,
     whether accrued, absolute or contingent, based on or arising from the
     generation, storage, transport, handling or disposal of Hazardous Materials
     by the Borrower or any of its Subsidiaries or predecessors that, in the
     judgment of the Required Lenders, are reasonably likely to be determined
     adversely to the Borrower or any of its Subsidiaries, and the amount
     thereof (either individually or in the aggregate) is reasonably likely to
     have a Material Adverse Effect (insofar as such amount is payable by the
     Borrower or any of its Subsidiaries but after deducting any portion thereof
     that is reasonably expected to be paid by other creditworthy Persons
     jointly and severally liable therefor);

          (m)  a Change of Control shall occur; or

          (n)  the Borrower or any of its Material Subsidiaries shall be
     required by any Applicable Bank Regulatory Authority, any Applicable
     Insurance Regulatory Authority or any other similar governmental regulatory
     authority to enter into, after the date hereof, any indenture, agreement,
     instrument or other arrangement (including, without limitation, any capital
     maintenance agreement) that, (x) directly or indirectly, prohibits or
     restrains, or has the effect of prohibiting or restraining, or imposes
     materially adverse conditions upon, the incurrence or payment of
     Indebtedness, the granting of Liens, the declaration or payment of
     dividends, the making of loans or advances or the sale, assignment,
     transfer or other disposition of Property or (y) requires the making of
     capital contributions to any Subsidiary in an aggregate amount exceeding
     $50,000,000;

then, and in every such event (other than an event with respect to the Borrower
described in clause (g) or (h) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrower accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower; and in case of any
event with respect to the Borrower described in clause (g) or (h) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrower accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower.
<PAGE>

                                      -44-

                                 ARTICLE VIII

                           THE ADMINISTRATIVE AGENT
                           ------------------------

          Each of the Lenders hereby irrevocably appoints the Administrative
Agent as its agent and authorizes the Administrative Agent to take such actions
on its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof, together with such actions and powers as are
reasonably incidental thereto.

          The Person serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and such
Person and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrower or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing by the Required Lenders, and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Subsidiaries that is communicated to or
obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall not be liable for any action taken
or not taken by it with the consent or at the request of the Required Lenders or
in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the
Borrower or a Lender, and the Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents
of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be
<PAGE>

                                      -45-

counsel for the Borrower), independent accountants and other experts selected by
it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

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

          The Administrative Agent may resign at any time by notifying the
Lenders and the Borrower. Upon any such resignation, the Required Lenders shall
have the right, in consultation with the Borrower, to appoint a successor. If no
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent's
resignation shall nonetheless become effective and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and (2) the Required Lenders shall perform the duties of the
Administrative Agent (and all payments and communications provided to be made
by, to or through the Administrative Agent shall instead be made by or to each
Lender directly) until such time as the Required Lenders appoint a successor
agent as provided for above in this paragraph. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring (or retired) Administrative Agent and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder (if not already discharged therefrom as provided above in this
paragraph). The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 9.03 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.

          Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any related agreement or any document furnished hereunder or thereunder.

          Notwithstanding anything to the contrary contained herein, the
Advisor, Lead Arranger and Bookrunner named on the cover page of this Agreement
shall not have any duties or liabilities under this Agreement.
<PAGE>

                                      -46-

                                  ARTICLE IX

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

          SECTION 9.01.  Notices. Except in the case of notices and other
                         -------
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

          (a)  if to the Borrower, to it at The First American Corporation, 1
     First American Way, Santa Ana, California 92707, Attention of Thomas A.
     Klemens (Telecopier No.: (714) 800-3325; Telephone No.: (714) 800-3000);

          (b)  if to the Administrative Agent, to The Chase Manhattan Bank, 1
     Chase Manhattan Plaza, 8th Floor, New York, New York 10081, Attention of
     Christine Grippo, Loan and Agency Services Group (Telecopy No. (212) 270-
     7490; Telephone No. (212) 552-2327), with a copy to The Chase Manhattan
     Bank, 270 Park Avenue, New York, New York 10017, Attention of Elisabeth
     Schwabe (Telecopy No. (212) 270-1511; Telephone No. (212) 270-4954); and

          (c)  if to a Lender, to it at its address (or telecopy number) set
     forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto (or, in the case
of any such change by a Lender, by notice to the Borrower and the Administrative
Agent). All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt.

          SECTION 9.02.  Waivers; Amendments.
                         -------------------

          (a)  No Deemed Waivers; Remedies Cumulative. No failure or delay by
               --------------------------------------
the Administrative Agent or any Lender in exercising any right or power
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall not
be construed as a waiver of any Default, regardless of whether the
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.

          (b)  Amendments. Neither this Agreement nor any provision hereof may
               ----------
be waived, amended or modified except pursuant to an agreement or agreements in
writing entered
<PAGE>

                                      -47-

into by the Borrower and the Required Lenders or by the Borrower and the
Administrative Agent with the consent of the Required Lenders; provided that no
                                                               --------
such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender affected thereby, (iv)
alter the manner in which payments or prepayments of principal, interest or
other amounts hereunder shall be applied as among the Lenders or Types of Loans,
without the written consent of each Lender, or (v) change any of the provisions
of this Section or the definition of the term "Required Lenders" or any other
provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any determination or grant
any consent hereunder, without the written consent of each Lender; and provided
                                                                       --------
further that no such agreement shall amend, modify or otherwise affect the
-------
rights or duties of the Administrative Agent hereunder without the prior written
consent of the Administrative Agent.

          SECTION 9.03.  Expenses; Indemnity; Damage Waiver.
                         ----------------------------------

          (a)  Costs and Expenses. The Borrower shall pay (i) all reasonable
               ------------------
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of this
Agreement or any amendments, modifications or waivers of the provisions hereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender, including the fees, charges and disbursements of any
counsel for the Administrative Agent, or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made
hereunder, including in connection with any workout, restructuring or
negotiations in respect thereof.

          (b)  Indemnification by the Borrower. The Borrower shall indemnify the
               -------------------------------
Administrative Agent and each Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an "Indemnitee") against, and
                                                     ----------
to hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or the use of the proceeds
therefrom, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided that such indemnity shall not, as to
                                   --------
any Indemnitee, be available to the
<PAGE>

                                      -48-

extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.

          (c)  Reimbursement by Lenders. To the extent that the Borrower fails
               ------------------------
to pay any amount required to be paid by it to the Administrative Agent under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent such Lender's Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of
such unpaid amount; provided that the unreimbursed expense or indemnified loss,
                    --------
claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent in its capacity as such.

          (d)  Waiver of Consequential Damages, Etc. To the extent permitted by
               ------------------------------------
applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or the
use of the proceeds thereof.

          (e)  Payments.  All amounts due under this Section shall be payable
               --------
promptly after written demand therefor.

          SECTION 9.04.  Successors and Assigns.
                         ----------------------

          (a)  Assignments Generally. The provisions of this Agreement shall be
               ---------------------
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrower may not assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer
by the Borrower without such consent shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b)  Assignments by Lenders. Any Lender may assign to one or more
               ----------------------
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to
it); provided that (i) except in the case of an assignment to a Lender or a
     --------
Lender Affiliate, each of the Borrower and the Administrative Agent must give
their prior written consent to such assignment (which consent shall not be
unreasonably withheld), (ii) except in the case of an assignment to a Lender or
a Lender Affiliate or an assignment of the entire remaining amount of the
assigning Lender's Commitment, the amount of the Commitment of the assigning
Lender subject to each such assignment (determined as of the date the Assignment
and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, (iii) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender's rights and obligations under this Agreement, (iv) the parties
to each assignment shall execute and deliver to the Administrative
<PAGE>

                                      -49-

Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and (v) the assignee, if it shall not be a Lender, shall deliver
to the Administrative Agent an Administrative Questionnaire; provided further
                                                             -------- -------
that any consent of the Borrower otherwise required under this paragraph shall
not be required if an Event of Default under clause (a), (b), (g) or (h) of
Article VII has occurred and is continuing. Upon acceptance and recording
pursuant to paragraph (d) of this Section, from and after the effective date
specified in each Assignment and Acceptance, the assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.12, 2.13, 2.14 and 9.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this paragraph shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.

          Notwithstanding anything to the contrary contained herein, any Lender
(a "Granting Lender") may grant to a special purpose vehicle (an "SPV") of, or
    ---------------                                               ---
administered by, such Granting Lender, identified as such in writing from time
to time by the Granting Lender to the Administrative Agent and the Borrower, the
option to provide to the Borrower all or any part of any Loan that such Granting
Lender would otherwise be obligated to make to the Borrower pursuant to Section
2.01, provided that (i) nothing herein shall constitute a commitment by any SPV
      --------
to make any Loan, (ii) if an SPV elects not to exercise such option or otherwise
fails to timely provide all or any part of such Loan, the Granting Lender shall
be obligated to make such Loan pursuant to the terms hereof and (iii) the
Borrower may bring any proceeding against either or both of the Granting Lender
and the SPV in order to enforce any rights of the Borrower hereunder. The making
of a Loan by an SPV hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Loan were made by the Granting
Lender. Each party hereto hereby agrees that nothing contained in this paragraph
shall relieve any Granting Lender of its obligations under this Agreement and
that no SPV shall be liable for any payment under this Agreement for which a
Lender would otherwise be liable, for so long as, and to the extent, the related
Granting Lender makes such payment in accordance with the terms of this
Agreement. In furtherance of the foregoing, each party hereto hereby agrees
(which agreement shall survive the termination of this Agreement) that, prior to
the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPV, it will
not institute against, or join any other person in instituting against, such SPV
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or similar proceedings under the laws of the United States or any
State thereof arising out of any claim against such SPV under this Agreement. In
addition, notwithstanding anything to the contrary contained in this Section,
any SPV may with notice to, but without the prior written consent of, the
Borrower or the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to its Granting
Lender or to any financial institutions (consented to by the Borrower and the
Administrative Agent, which consents shall not be unreasonably withheld)
providing liquidity and/or credit support (if any) with respect to commercial
paper issued by such SPV to fund such Loans and such SPV may disclose, on a
confidential basis in accordance with Section 9.12, confidential information
<PAGE>

                                      -50-

with respect to the Borrower and its Subsidiaries to any rating agency,
commercial paper dealer or provider of a surety, guarantee or credit liquidity
enhancement to such SPV. Each Granting Lender shall provide the Borrower with
notice of each grant made by it under this paragraph to an SPV. Except for its
obligation to make payments directly to an SPV in respect of any Loan (or any
part thereof) made by such SPV, the Borrower shall continue to deal solely and
directly with the Granting Lender. This paragraph may not be amended without the
consent of any SPV at the time holding Loans under this Agreement.

          (c)  Maintenance of Register by the Administrative Agent. The
               ---------------------------------------------------
Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices in New York City a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"Register"). The entries in the Register shall be conclusive, and the Borrower,
 --------
the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

          (d)  Effectiveness of Assignments. Upon its receipt of a duly
               ----------------------------
completed Assignment and Acceptance executed by an assigning Lender and an
assignee, the assignee's completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative Agent
shall accept such Assignment and Acceptance and record the information contained
therein in the Register. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this
paragraph.

          (e)  Participations. Any Lender may, without the consent of the
               --------------
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a "Participant") in all or a portion of such Lender's rights
                      -----------
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) such Lender's
                                       --------
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that
                   --------
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section
9.02(b) that affects such Participant. Subject to paragraph (f) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.12, 2.13 and 2.14 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
<PAGE>

                                      -51-

          (f)  Limitations on Rights of Participants. A Participant shall not be
               -------------------------------------
entitled to receive any greater payment under Section 2.12 or 2.14 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.14 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 2.14(e) as though it were a
Lender.

          (g)  Certain Pledges. Any Lender may at any time pledge or assign a
               ---------------
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any such pledge or assignment to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such assignee for such Lender as a party hereto.

          (h)  No Assignments to the Borrower or Affiliates. Anything in this
               --------------------------------------------
Section to the contrary notwithstanding, no Lender may assign or participate any
interest in any Loan held by it hereunder to the Borrower or any of its
Affiliates or Subsidiaries without the prior consent of each Lender.

          SECTION 9.05.  Survival. All covenants, agreements, representations
                         --------
and warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any
Loans, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default or incorrect representation or warranty
at the time any credit is extended hereunder, and shall continue in full force
and effect as long as the principal of or any accrued interest on any Loan or
any fee or any other amount payable under this Agreement is outstanding and
unpaid and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.12, 2.13, 2.14 and 9.03 and Article VIII shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Commitments or the termination of this Agreement or any
provision hereof.

          SECTION 9.06.  Counterparts; Integration; Effectiveness. This
                         ----------------------------------------
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement and
any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract between and among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of
<PAGE>

                                      -52-

an executed counterpart of a signature page to this Agreement by telecopy shall
be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 9.07.  Severability. Any provision of this Agreement held to
                         ------------
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 9.08.  Right of Setoff. If an Event of Default shall have
                         ---------------
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender to or
for the credit or the account of the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

          SECTION 9.09.  Governing Law; Jurisdiction; Etc.
                         --------------------------------

          (a)  Governing Law.  This Agreement shall be construed in accordance
               -------------
with and governed by the law of the State of New York.

          (b)  Submission to Jurisdiction. The Borrower hereby irrevocably and
               --------------------------
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement against the Borrower or its properties in
the courts of any jurisdiction.

          (c)  Waiver of Venue. The Borrower hereby irrevocably and
               ---------------
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement in
any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

          (d)  Service of Process. Each party to this Agreement irrevocably
               ------------------
consents to service of process in the manner provided for notices in Section
9.01. Nothing in this Agreement
<PAGE>

                                      -53-

will affect the right of any party to this Agreement to serve process in any
other manner permitted by law.

          SECTION 9.10.  WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
                         --------------------
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11.  Headings. Article and Section headings and the Table of
                         --------
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

          SECTION 9.12.  Treatment of Certain Information; Confidentiality.
                         -------------------------------------------------

          (a)  Treatment of Certain Information. The Borrower acknowledges that
               --------------------------------
from time to time financial advisory, investment banking and other services may
be offered or provided to the Borrower or one or more of its Subsidiaries (in
connection with this Agreement or otherwise) by any Lender or by one or more
subsidiaries or affiliates of such Lender and the Borrower hereby authorizes
each Lender to share any information delivered to such Lender by the Borrower
and its Subsidiaries pursuant to this Agreement, or in connection with the
decision of such Lender to enter into this Agreement, to any such subsidiary or
affiliate, it being understood that any such subsidiary or affiliate receiving
such information shall be bound by the provisions of paragraph (b) of this
Section as if it were a Lender hereunder. Such authorization shall survive the
repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.

          (b)  Confidentiality. Each of the Administrative Agent, the Lenders
               ---------------
and each SPV agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (i) to its and its
Affiliates' directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (ii) to the
extent requested by any regulatory authority, (iii) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (iv)
to any other party to this Agreement, (v) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (vi) subject to an agreement in writing
containing provisions substantially the same as those of this paragraph and for
the benefit of the Borrower, to (a) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (b) any actual or prospective
<PAGE>

                                      -54-

counterparty (or its advisors) to any swap or derivative transaction relating to
the Borrower and its obligations, (vii) with the consent of the Borrower or
(viii) to the extent such Information (A) becomes publicly available other than
as a result of a breach of this paragraph or (B) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower. For the purposes of this paragraph, "Information" means
all information received from the Borrower relating to the Borrower, its
Subsidiaries or their business, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis
prior to disclosure by the Borrower; provided that, in the case of information
received from the Borrower after the date hereof, such information is clearly
identified at or prior to the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.
<PAGE>

                                      -55-

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                   THE FIRST AMERICAN CORPORATION

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -56-

                                   LENDERS
                                   -------

                                    THE CHASE MANHATTAN BANK,
                                      individually and as Administrative Agent

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -57-

                                   COMERICA BANK

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -58-

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -59-

                                   UNITED CALIFORNIA BANK

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -60-

                                   BANK ONE, ARIZONA, NA

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -61-

                                   WELLS FARGO BANK NATIONAL ASSOCIATION

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -62-

                                   US BANK

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -63-

                                   BANK OF AMERICA, N.A.

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -64-

                                   FLEET NATIONAL BANK

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                      -65-

                                   SUMITOMO MITSUI BANKING
                                   CORPORATION

                                   By______________________________
                                     Name:
                                     Title:
<PAGE>

                                                                      SCHEDULE I

                                  Commitments
                                  -----------

Name of Lender                                                    Commitment ($)
--------------                                                    --------------

THE CHASE MANHATTAN BANK                                          $25,000,000.00

COMERICA BANK                                                     $25,000,000.00

UNION BANK OF CALIFORNIA, N.A.                                    $25,000,000.00

UNITED CALIFORNIA BANK                                            $20,000,000.00

BANK ONE, ARIZONA, NA                                             $20,000,000.00

WELLS FARGO BANK NATIONAL ASSOCIATION                             $20,000,000.00

US BANK                                                           $20,000,000.00

BANK OF AMERICA, N.A.                                             $15,000,000.00

FLEET NATIONAL BANK                                               $15,000,000.00

SUMITOMO MITSUI BANKING CORPORATION                               $15,000,000.00
                                                                  --------------

TOTAL                                                            $200,000,000.00
<PAGE>

                                                                     SCHEDULE II

                            Indebtedness and Liens
                            ----------------------

                             Part A - Indebtedness

<TABLE>
<CAPTION>
                                                                                   Principal Due
                                                                                   -------------
<S>                                                                                <C>
4.50% Senior Convertible Debentures                                                $210,000,000
  Senior convertible debentures due 2008

8.50% Trust Preferred Securities                                                   $100,000,000
  Mandatorily redeemable preferred securities due 2012

7.55% Senior Debentures                                                            $100,000,000
   Senior debt due April 2028

R2 Limited                                                                          $10,915,618
   Debt issued in connection with the purchase of the
   remaining minority interest in Data Tree Corporation
 .  Has quarterly interest and principal payments with an interest rate of 8%,
   final payment due April 2005

Barrett Burke acquisition                                                           $14,812,500
   A combination of notes issued in connection with the
    acquisition of the default outsourcing operations of Barrett Burke Wilson
    et. al. Has quarterly principal and interest payments with an interest rate
    of 7.5%, final payment due July 2005. These notes are convertible into
    Common shares of First American Corporation at the option of the
    noteholders.

GE Capital Sale Leaseback                                                           $66,435,411
   Sale leaseback of certain furniture and equipment of
   FATICO.  Has monthly payments with a current variable
   interest rate of 4.8%, final payment due December 2005.

GE Capital Sale Leaseback                                                           $30,938,450
   Sale leaseback of certain furniture and equipment of FAREISI.
   Has monthly payments with a current variable interest rate of
   4.3 %, final payment due December 2005.
</TABLE>
<PAGE>

                                      -2-

<TABLE>
<S>                                                                                 <C>
Substance Abuse Management, Inc.                                                    $10,000,000
    Debt issued in connection with the acquisition of
    Substance Abuse Management, Inc.  Has quarterly
    interest and principal payments with an interest rate of
    6.5%, final payment due April 2008.  These notes are
    convertible into Common shares of  First American
    Corporation at the option of either the Company or
    the noteholder.

Five Star Holdings, Inc                                                             $14,500,000
    Debt issued in connection with the purchase of a
    controlling interest in Five Star Insurance Company,
    quarterly interest payment with an interest rate of 7%,
    due November 2006.  This debt is convertible into Common
    shares of First American Corporation at the option of the
    noteholders.

United Title Line of Credit                                                         $15,000,000
    A guarantee of a line of credit for United Title Company,
    a 7% owned affiliate.

                                 Part B - Liens

GE Capital Sale Leaseback                                                           $66,435,411
   Sale leaseback of certain furniture and
   equipment of FATICO.  Has
   payments with a current variable interest rate of 4.8%,
   final payment due December 2005.

GE Capital Sale Leaseback                                                           $30,938,450
   Sale leaseback of certain furniture and
   equipment of FAREISI.  Has monthly payments with
   a current variable interest rate of 4.3 %, final payment due
   December 2005.
</TABLE>
<PAGE>

                                                                    SCHEDULE III

                     Litigation and Environmental Matters
                     ------------------------------------

                                     None.
<PAGE>

                                                                       EXHIBIT A

                      [Form of Assignment and Acceptance]

                           ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Credit Agreement dated as of October 12, 2001
(as amended and in effect on the date hereof, the "Credit Agreement"), between
                                                   ----------------
The First American Corporation, the Lenders named therein and The Chase
Manhattan Bank, as Administrative Agent for the Lenders. Terms defined in the
Credit Agreement are used herein with the same meanings.

          The Assignor named below hereby sells and assigns, without recourse,
to the Assignee named below, and the Assignee hereby purchases and assumes,
without recourse, from the Assignor, effective as of the Assignment Date set
forth below, the interests set forth below (the "Assigned Interest") in the
                                                 -----------------
Assignor's rights and obligations under the Credit Agreement, including the
interests set forth below in the Commitment of the Assignor on the Assignment
Date and Loans owing to the Assignor which are outstanding on the Assignment
Date, together with unpaid interest accrued on the assigned Loans to the
Assignment Date, and the amount, if any, set forth below of the fees accrued to
the Assignment Date for account of the Assignor. The Assignee hereby
acknowledges receipt of a copy of the Credit Agreement. From and after the
Assignment Date (i) the Assignee shall be a party to and be bound by the
provisions of the Credit Agreement and, to the extent of the interests assigned
by this Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and (ii) the Assignor shall, to the extent of the interests assigned
by this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          This Assignment and Acceptance is being delivered to the
Administrative Agent together with (i) if the Assignee is a Foreign Lender, any
documentation required to be delivered by the Assignee pursuant to Section
2.14(e) of the Credit Agreement, duly completed and executed by the Assignee,
and (ii) if the Assignee is not already a Lender under the Credit Agreement, an
Administrative Questionnaire in the form supplied by the Administrative Agent,
duly completed by the Assignee. The [Assignee/Assignor] shall pay the fee
payable to the Administrative Agent pursuant to Section 9.04(b) of the Credit
Agreement.

          This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of New York.
<PAGE>

                                      -2-

Date of Assignment:

Legal Name of Assignor:

Legal Name of Assignee:

Assignee's Address for Notices:

Effective Date of Assignment
("Assignment Date"):
  ---------------
                                                          Percentage Assigned of
                                                          Facility/Commitment
                                                          (set forth, to at
                                                          least 8 decimals, as a
                                                          percentage of the
                                                          Facility and the
                                                          aggregate Commitments
                                 Principal Amount         of all Lenders
Facility                         Assigned                 thereunder
--------                         --------                 ----------------------

Commitment Assigned:             $                                             %

Loans:

Fees Assigned (if any):

The terms set forth above and below are hereby agreed to:

                                        [NAME OF ASSIGNOR], as Assignor

                                        By:_______________________________
                                           Name:
                                           Title:

                                        [NAME OF ASSIGNEE], as Assignee

                                        By:_______________________________
                                           Name:
                                           Title:
<PAGE>

                                      -3-

The undersigned hereby consent to the within assignment:/1/

THE FIRST AMERICAN CORPORATION

By:_________________________
   Name:
   Title:

THE CHASE MANHATTAN BANK,
  as Administrative Agent

By:_________________________
   Name:
   Title:

_________________

     /1/  Consents to be included to the extent required by Section 9.04(b) of
          the Credit Agreement.

<PAGE>

                                                                       EXHIBIT B

                 [Form of Opinion of Counsel to the Borrower]

                               ___________, 2001

To the Lenders party to the
Credit Agreement referred to
Below and The Chase Manhattan
Bank, as Administrative Agent

                       Re: $200,000,000 Credit Agreement

Ladies and Gentlemen:

          I am general counsel of The First American Corporation, a California
corporation (the "Borrower"), and have acted in such capacity in connection with
the Credit Agreement dated as of October 12, 2001 between the Borrower, the
Lenders party thereto and The Chase Manhattan Bank, as Administrative Agent (the
"Credit Agreement"). Unless otherwise defined herein, capitalized terms shall
 ----------------
have the meanings given thereto in the Credit Agreement.

          In rendering the opinions expressed below, I have examined the Credit
Agreement, and the originals or conformed copies of such resolutions, corporate
records, agreements and instruments of the Borrower and its Subsidiaries,
certificates of public officials and of officers of the Borrower and its
Subsidiaries, and such other documents and records, and such matters of law, as
I have deemed appropriate as a basis for the opinions hereinafter expressed. In
such examination and investigation, I have assumed the genuineness of all
signatures (other than those of officers of the Borrower), the legal capacity of
natural persons, the authenticity of all documents submitted as originals and
the conformity to original documents of documents submitted as certified or
photostatic copies. I have also assumed that the Credit Agreement has been duly
authorized, executed and delivered by the parties thereto other than the
Borrower and constitutes a valid, legal and binding obligation of all such other
parties.

          In rendering this opinion, I do not express any opinion concerning any
law other than the law of the State of California and the federal law of the
United States.

          Based upon the foregoing and subject to the limitations,
qualifications, exceptions and assumptions set forth below, I am of the opinion
that:

          1.   The Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of California and has the
necessary corporate power to make and perform the Credit Agreement and to borrow
under the Credit Agreement.

          2.   The execution, delivery and performance by the Borrower of the
Credit Agreement and the borrowings by the Borrower thereunder have been duly
authorized by all necessary corporate action, and do not and will not violate
any provision of law or regulation or
<PAGE>

                                      -2-

any provision of the Borrower's charter or by-laws or result in the breach of,
or constitute a default or require any consent (other than consents which have
been obtained) under, or result in the creation of any Lien upon any of the
properties, revenues or assets of the Borrower pursuant to, any indenture or
other agreement or instrument of which I have knowledge (after due inquiry) to
which the Borrower is a party or by which the Borrower or its properties may be
bound.

          3.   The Credit Agreement constitutes legal, valid and binding
obligations of the Borrower enforceable against it in accordance with their
respective terms, except (a) as may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights of creditors generally and (b) that the enforceability of the Credit
Agreement is subject to the application of general principles of equity
(regardless of whether considered in a proceeding in equity or at law),
including, without limitation, (i) the possible unavailability of specific
performance, injunctive relief or any other equitable remedy and (ii) concepts
of materiality, reasonableness, good faith and fair dealing.

          4.   Except as disclosed to the Lenders in Schedule III to the Credit
Agreement, there are no legal or arbitral proceedings, and no proceedings by or
before any governmental or regulatory authority or agency, pending or (to my
knowledge after due inquiry) threatened against or affecting the Borrower, or
any properties or rights of the Borrower, which, if adversely determined, would
have a Material Adverse Effect.

          5.   No authorizations, consents, approvals, licenses, filings or
registrations with, any Governmental Authority are required in connection with
the execution, delivery or performance by the Borrower of the Credit Agreement.

          6.   Neither the Borrower nor any of its Subsidiaries is (a) an
"investment company" as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a "holding company" as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.

          The foregoing opinions are also subject to the following additional
limitations, qualifications, exceptions and assumptions:

               a.   In rendering my opinion in paragraph 3 above, I have assumed
     that the Credit Agreement is governed by the laws of the State of
     California.

               b.   I express no opinion as to whether or not the execution,
     delivery or performance by the Borrower of the Credit Agreement will
     conflict with or result in a breach of, or constitute a default under, any
     covenant, restriction or provision with respect to financial ratios or
     tests or any aspect of the financial ratios or tests or any aspect of the
     financial condition or results of operation of the Borrower (other than
     covenants or restrictions that relate to the incurrence of indebtedness and
     the incurrence of liens) under any indenture or other agreement or
     instruments.

               c.   I express no opinion as whether a federal or state court
     would give effect to the choice of New York law provided for in the Credit
     Agreement.
<PAGE>

                                      -3-

               d.   In rendering my opinion set forth in paragraph 4 above, I
     advise you that I have not conducted any search of any court docket.

               e.   I express no opinion as to (i) the last sentence of Section
     2.15(d) of the Credit Agreement or (ii) the first sentence of Section
     9.09(b) of the Credit Agreement insofar as such sentence relates to the
     subject matter jurisdiction of the United States District Court for the
     Southern District of New York to adjudicate any controversy related to the
     Credit Agreement.

               f.   The enforceability of Section 9.03 of the Credit Agreement
     may be limited by laws rendering unenforceable indemnification contrary to
     federal or state securities laws and the public policy underlying such
     laws.

               g.   The enforceability of provisions in the Credit Agreement to
     the effect that terms may not be waived or modified except in writing may
     be limited under certain circumstances.

               h.   I express no opinion as to the effect of the laws of any
     jurisdiction in which any Lender is located (other than California) that
     limits the interest, fees or other charges it may impose.

               i.   To the extent that my opinions set forth above involve
     factual determinations as to what may, or may not, constitute a Material
     Adverse Effect, I have relied with your approval upon certifications of the
     Borrower.

               j.   I am a member of the Bar of the State of California and do
     not hold myself out as being conversant with, and express no opinion as to,
     the laws of any jurisdiction other than those of the United States of
     America and the State of California.

          The opinions expressed herein are solely for your benefit (and for the
benefit of your successors and assigns) and may not be relied upon in any manner
for any purpose by any other person without my prior written consent in each
instance.

                                        Very truly yours,

                                        Craig I. DeRoy
                                        Executive Vice President,
                                        General Counsel
<PAGE>

                                                                       EXHIBIT C

            [Form of Opinion of Special New York Counsel to Chase]

                                                                __________, 2001

To the Lenders party to the
Credit Agreement referred to
below and The Chase Manhattan
Bank, as Administrative Agent

Ladies and Gentlemen:

          We have acted as special New York counsel to The Chase Manhattan Bank
("Chase") in connection with the Credit Agreement (the "Credit Agreement") dated
  -----                                                 ----------------
as of October 12, 2001, between The First American Corporation (the "Borrower"),
                                                                     --------
the lenders party thereto and Chase, as Administrative Agent, providing for
loans to be made by said lenders to the Borrower in an aggregate principal
amount not exceeding $200,000,000. Terms defined in the Credit Agreement are
used herein as defined therein. This opinion letter is being delivered pursuant
to Section 4.01(c) of the Credit Agreement.

          In rendering the opinions expressed below, we have examined the Credit
Agreement.

          In our examination, we have assumed the genuineness of all signatures,
the authenticity of all documents submitted to us as originals and the
conformity with authentic original documents of all documents submitted to us as
copies. When relevant facts were not independently established, we have relied
upon representations made in or pursuant to the Credit Agreement.

          In rendering the opinions expressed below, we have assumed, with
respect to all of the documents referred to in this opinion letter, that:

          (i)    such documents have been duly authorized by, have been duly
     executed and delivered by, and (except to the extent set forth in the
     opinions expressed below as to the Borrower) constitute legal, valid,
     binding and enforceable obligations of, all of the parties to such
     documents;

          (ii)   all signatories to such documents have been duly authorized;
     and

          (iii)  all of the parties to such documents are duly organized and
     validly existing and have the power and authority (corporate or other) to
     execute, deliver and perform such documents.

          Based upon and subject to the foregoing and subject also to the
comments and qualifications set forth below, and having considered such
questions of law as we have deemed
<PAGE>

                                      -2-

necessary as a basis for the opinions expressed below, we are of the opinion
that the Credit Agreement constitutes the legal, valid and binding obligation of
the Borrower, enforceable against the Borrower in accordance with its terms,
except as may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or other similar laws relating to or
affecting the rights of creditors generally and except as the enforceability of
the Credit Agreement is subject to the application of general principles of
equity (regardless of whether considered in a proceeding in equity or at law),
including (a) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (b) concepts of materiality,
reasonableness, good faith and fair dealing.

          The foregoing opinions are subject to the following comments and
qualifications:

          (A)  The enforceability of Section 9.03 of the Credit Agreement may be
     limited by (i) laws rendering unenforceable indemnification contrary to
     Federal or state securities laws and the public policy underlying such laws
     and (ii) laws limiting the enforceability of provisions exculpating or
     exempting a party, or requiring indemnification of a party for, liability
     for its own action or inaction, to the extent the action or inaction
     involves gross negligence, recklessness, willful misconduct or unlawful
     conduct.

          (B)  The enforceability of provisions in the Credit Agreement to the
     effect that terms may not be waived or modified except in writing may be
     limited under certain circumstances.

          (C)  We express no opinion as to (i) the effect of the laws of any
     jurisdiction in which any Lender is located (other than the State of New
     York) that limit the interest, fees or other charges such Lender may
     impose, (ii) the last sentence of Section 2.15(d) of the Credit Agreement
     and (iii) the first sentence of Section 9.09(b) of the Credit Agreement,
     insofar as such sentence relates to the subject matter jurisdiction of the
     United States District Court for the Southern District of New York to
     adjudicate any controversy related to the Credit Agreement.

          The foregoing opinions are limited to matters involving the Federal
laws of the United States of America and the law of the State of New York, and
we do not express any opinion as to the laws of any other jurisdiction.

          At the request of our client, this opinion letter is, pursuant to
Section 4.01(c) of the Credit Agreement, provided to you by us in our capacity
as special New York counsel to Chase and may not be relied upon by any Person
for any purpose other than in connection with the transactions contemplated by
the Credit Agreement without, in each instance, our prior written consent.

                                   Very truly yours,

WJM/RJW<PAGE>

                                                                     Exhibit 4.1

                       INFORETECH WIRELESS TECHNOLOGY INC.

                             2000 STOCK OPTION PLAN

         1.       Purpose. The purpose of the Plan is to provide additional
incentive to those directors, officers, and key employees and consultants of the
Company and its subsidiaries whose substantial contributions are essential to
the continued growth and success of the Company's business in order to
strengthen their commitment to the Company, to motivate such directors,
officers, and employees and consultants to faithfully and diligently perform
their assigned responsibilities and to attract and retain competent and
dedicated individuals whose efforts will result in the long-term growth and
profitability of the Company. To accomplish such purposes, the Plan provides
that the Company may grant Incentive Stock Options or Nonqualified Stock
Options.

         2.       Definitions. For purposes of this Plan:

                  (a) "Agreement" means the written agreement evidencing the
grant of an Option setting forth the terms and conditions thereof.

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

                  (c) "Cause" means, unless otherwise defined in the particular
Agreement evidencing the grant of an Option or an employment agreement covering
the Optionee, (i) the willful neglect or refusal to perform the Optionee's
duties or responsibilities or the willful taking of actions which materially
impair the Optionee's ability to perform the Optionee's duties or
responsibilities which continues after being brought to the attention of the
Optionee (other than any such failure resulting from the Optionee's incapacity
due to physical or mental illness) or (ii) the willful act or failure to act by
the Optionee which is materially injurious to the Company.

                  (d) "Change in Capitalization" means any increase, reduction,
or change or exchange of Shares for a different number or kind of shares or
other securities of the Company by reason of a reclassification,
recapitalization, merger, consolidation, reorganization, issuance of warrants or
rights, stock dividend, stock split or reverse stock split, combination or
exchange of shares, repurchase of shares, change in corporate structure or
otherwise.

                  (e) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (f) "Committee" means the Compensation Committee of the Board
or such other committee appointed by the Board to administer the Plan and
<PAGE>

to perform the functions set forth herein, or if no committee has been
established, the full Board.

                  (g) "Company" means Inforetech Wireless Technology Inc., a
Nevada corporation.

                  (h) "Eligible Employee" means any director, officer or key
employee or consultant of the Company or any subsidiary of the Company
designated by the Committee as eligible to receive Options subject to the
conditions set forth herein. Unless the context requires otherwise, any
reference in the Plan to employment shall mean employment with the Company and
any subsidiary of the Company.

                  (i) "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

                  (j) "Fair Market Value" means the fair market value of the
Shares as determined by the Committee in its sole discretion; provided, however,
that (A) if the Shares are admitted to trading on a national securities
exchange, Fair Market Value on any date shall be the last sale price reported
for the Shares on such exchange on such date or on the last date preceding such
date on which a sale was reported, (B) if the Shares are admitted to quotation
on the National Association of Securities Dealers Automated Quotation System
("NASDAQ") or other comparable quotation system and have been designated as a
National Market System ("NMS") security, Fair Market Value on any date shall be
the last sale price reported for the Shares on such system on such date or on
the last day preceding such date on which a sale was reported, (C) if the Shares
are admitted to quotation on NASDAQ and have not been designated a NMS security,
Fair Market Value on any date shall be the average of the highest bid and lowest
asked prices of the Shares on such system on such date, or (D) if the Shares are
traded on the Over the Counter Market, the average of the closing bid and asked
prices on such Market on such date.

                  (k) "Incentive Stock Option" means an Option within the
meaning of Section 422 of the Code.

                  (l) "Nonqualified Stock Option" means an Option which is not
an Incentive Stock Option.

                  (m) "Option" means an option to purchase Shares, which option
may be an Incentive Stock Option, a Nonqualified Stock Option, or either or both
of them, as the context requires.

                  (n) "Optionee" means a person to whom an Option has been
granted under the Plan.
<PAGE>

                  (o) "Parent" means any corporation in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock of one of the other corporations in such chain.

                  (p) "Plan" means the Inforetech Wireless Technology Inc. 2000
Stock Option Plan, as amended from time to time.

                  (q) "Securities Act" means the Securities Act of 1933, as
amended.

                  (r) "Shares" means shares of the Class A common stock of the
Company (including any new, additional or different stock or securities
resulting from a Change in Capitalization).

                  (s) "Subsidiary" means any entity that is directly or
indirectly controlled by the Company.

                  (t) "Ten-Percent Stockholder" means an Eligible Employee, who,
at the time an Incentive Stock Option is to be granted to such Eligible
Employee, owns (within the meaning of Section 422(b)(6) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, a Parent or a Subsidiary within the meaning of
Sections 422(e) and 422(f), respectively, of the Code.

         3.       Administration.

                  (a) The Plan shall be administered by the Committee which
shall hold meetings at such times as may be necessary for the proper
administration of the Plan. A majority of the Committee shall constitute a
quorum and a majority of a quorum may authorize any action. Any decision reduced
to writing and signed by a majority of the members of the Committee shall be
fully effective as if it had been made at a meeting duly held. Neither the
Committee as a whole or any member thereof shall be personally liable for any
action, determination or interpretation made in good faith with respect to the
Plan or Options, and all members of the Committee shall be fully indemnified by
the Company with respect to any such action, determination or interpretation.
The Company shall pay all expenses incurred in the administration of the Plan.

                  (b) Subject to the express terms and conditions set forth
herein, the Committee shall have the power from time to time:

                      i.    to determine those Eligible Employees to whom
                  Options shall be granted under the Plan and the number of
                  Nonqualified Options and/or Incentive Stock Options to be
                  granted to each Eligible Employee and to prescribe the terms
                  and
<PAGE>

                  conditions (which need not be identical) of each Option,
                  including the purchase price per Share of each Option;

                      ii.   to construe and interpret the Plan and the Options
                  granted hereunder and to establish, amend and revoke rules and
                  regulations for the administration of the Plan, including, but
                  not limited to, correcting any defect or supplying any
                  omission, or reconciling any inconsistency in the Plan or in
                  any Agreement, in the manner and to the extent it shall deem
                  necessary or advisable to make the Plan fully effective, and
                  all decisions and determinations by the Committee in the
                  exercise of this power shall be final and binding upon the
                  Company and the Optionees, as the case may be:

                      iii.  to determine the duration and purposes for leaves of
                  absence which may be granted to an Optionee without
                  constituting a termination of employment or service for
                  purposes of the Plan; and

                      iv.   generally, to exercise such powers and to perform
                  such acts as are deemed necessary or advisable to promote the
                  best interests of the Company with respect to the Plan.

         4.       Stock Subject to Plan.

                  (a) The maximum number of Shares that may be issued or
transferred pursuant to Options is 4,000,000 (or the number and kind of share of
stock or other securities which are substituted for those Shares or to which
those Shares are adjusted upon a Change in Capitalization), and the Company
shall reserve for the purposes of the Plan, out of its authorized but unissued
Shares or out of Shares held in the Company's treasury, or partly out of each,
such number of Shares as shall be determined by the Board.

                  (b) Whenever any outstanding Option or portion thereof
expires, is cancelled or is otherwise terminated (other than by exercise of the
Option), the Shares allocable to the unexercised portion of such Option may
again be the subject of Options hereunder.

         5.       Eligibility. Subject to the provisions of the Plan, the
Committee shall have full and final authority to select those Eligible Employees
who will receive Options.

         6.       Options. The Committee may grant Options in accordance with
the Plan, the terms and conditions of which shall be set forth in an Agreement.
Each Option and Agreement shall be subject to the following conditions:
<PAGE>

                  (a) Purchase Price. The purchase price or the manner in which
the purchase price is to be determined for Shares under each Option, shall be
set forth in the Agreement; provided, however, in the case of an Incentive Stock
Option the purchase price per Share under the Option shall not be less than 100%
of the Fair Market Value of a Share at the time the Option is granted (110% of
the Fair Market Value of a Share at the time the Option is granted in the case
of an Incentive Stock Option granted to a Ten-Percent Stockholder).

                  (b) Duration. Options granted hereunder shall be for such term
as the Committee shall determine, provided that no Option shall be exercisable
after the expiration of ten (10) years from the date it is granted (five (5)
years in the case of an Incentive Stock Option granted to a Ten-Percent
Stockholder). The Committee may, subsequent to the granting of any Option,
extend the term thereof, but in no event shall the term as so extended exceed
the maximum term provided for in the preceding sentence.

                  (c) Transferability.

                      i.    Subject to Section (c)(ii), no Option issued under
                  the Plan shall be assignable or transferable by an Optionee
                  other than by will or the laws of descent and distribution. An
                  Option awarded to an Optionee during such Optionee's lifetime
                  shall be exercisable only by an Optionee or his or her
                  guardian or legal representative.

                      ii.   Notwithstanding Section (c)(i), in the case of a
                  Nonstatutory Stock Option, an Optionee shall be permitted to
                  transfer the Option to the Optionee's spouse, adult lineal
                  descendants, adult spouses of adult lineal descendants and
                  trusts for the benefit of the Optionee's minor or adult lineal
                  descendants (a "Related Transferee") if the Option Agreement
                  under which the Option is granted so specifies. If the Option
                  is transferred to a Related Transferee pursuant to the
                  preceding sentence, the Related Transferee shall, upon
                  exercise of the Option, hold the Option Stock subject to all
                  the provisions of the transferor's Option Agreement in the
                  same manner as the transferor and shall execute and deliver to
                  the Company such instruments as the Company shall require to
                  evidence the same.

               (d) Vesting. The terms pertaining to the exercise of Options
shall be as determined by the Committee and the Committee may accelerate the
exercisability of any Option or portion thereof at any time.

               (e) Termination of Employment. Unless otherwise set forth in the
Agreement, in the event that an Optionee who is an employee ceases to be
employed by the Company, any outstanding Options held by such Optionee shall,
<PAGE>

unless the Agreement evidencing such option provides otherwise, terminate as
follows:

                      i.    If the Optionee's termination of employment is due
                  to his death, disability or, in the case of a Nonqualified
                  Stock Option, retirement on or after attainment of age 65, the
                  Option (to the extent exercisable at the time of the
                  Optionee's termination of employment) shall be exercisable for
                  a period of one (1) year following such termination of
                  employment, and shall thereafter terminate;

                      ii.   If the Optionee's termination of employment is by
                  the Company for Cause, the Option shall terminate on the date
                  of the Optionee's termination of employment; and

                      iii.  If the Optionee's termination of employment is for
                  any other reason, the Option (to the extent exercisable at the
                  time of the Optionee's termination of employment) shall be
                  exercisable for a period of ninety (90) days following such
                  termination of employment, and shall thereafter terminate.

         Notwithstanding the foregoing, the Committee may provide, either at the
time an Option is granted or thereafter, that the Option may be exercised after
the periods provided for in this Section 6(e), but in no event beyond the term
of the Option.

               (f) Method of Exercise. The exercise of an Option shall be made
only by a written notice delivered to the Secretary of the Company at the
Company's principal executive office specifying the number of Shares to be
purchased and accompanied by payment therefor and otherwise in accordance with
the Agreement pursuant to which the Option was granted. The purchase price for
any Shares purchased pursuant to the exercise of an Option shall be paid in full
upon such exercise in cash, by check, or, at the discretion of the Committee and
upon such terms and conditions as the Committee shall approve, by transferring
Shares to the Company or by a cashless exercise procedure. Any Shares
transferred to the Company as payment of the purchase price under an Option
shall be valued at their Fair Market Value on the day preceding the date of
exercise of such Option. If requested by the Committee, the Optionee shall
deliver the Agreement evidencing the Option to the Secretary of the Company who
shall endorse thereon a notation of such exercise and return such Agreement to
the Optionee. Not less than 100 Shares may be purchased at any time upon the
exercise of an Option unless the number of Shares so purchased constitutes the
total number of shares then purchasable under the Option.

               (g) Rights of Optionees. No optionee shall be deemed for any
purpose to be the owner of any Shares subject to any Option unless and until (i)
<PAGE>

the Option shall have been exercised pursuant to the terms thereof, (ii) the
Company shall have issued and delivered the Shares to the Optionee and (iii) the
Optionee's name shall have been entered as a stockholder of record on the books
of the Company. Thereupon, the Optionee shall have full voting, dividend and
other ownership rights with respect to such Shares.

         7.       Adjustment Upon Changes in Capitalization. In the event of a
Change in Capitalization, the Committee shall conclusively determine the
appropriate adjustments, if any, to the maximum number and class of shares of
stock with respect to which options may be granted under the Plan, the number
and class of shares of stock as to which Options have been granted under the
Plan, and the purchase price therefor, if applicable. Notwithstanding the
foregoing, in the event of a Change in Capitalization involving a merger,
consolidation, reorganization, change in control or similar event, the following
shall apply: (a) the survivor or acquiror, as the case may be, (the "Buyer")
shall have the right to assume the Options or replace the Options by similar
options to acquire the Buyer's stock, (b) the Company may accelerate all Options
on or before the closing of the Change in Capitalization subject to the
availability of a reasonable period of time for the Optionees to exercise the
Options, or (c) the Company may cash out the outstanding Options based on the
then fair market value of the Shares.

         8.       Termination and Amendment of the Plan. The Plan shall
terminate on the day preceding the tenth anniversary of its effective date,
except with respect to Options outstanding on such date, and no Options may be
granted thereafter. The Board may sooner terminate or amend the Plan at any
time, and from time to time; provided, however, that, except as provided in
Section 7 hereof, no amendment shall be effective unless approved by the
stockholders of the Company where stockholder approval of such amendment is
required (a) to comply with Rule 16b-3 under the Exchange Act subsequent to the
registration of a class of equity securities of the Company under Section 12 of
the Exchange Act or (b) to comply with any other applicable law, regulation or
stock exchange rule. Except as provided in Section 7 hereof, rights and
obligations under any Option granted before any amendment of the Plan shall not
be materially adversely altered or impaired by such amendment, except with the
consent of the Optionee.

         9.       Non-Exclusivity of the Plan. The adoption of the Plan by the
Board shall not be construed as amending, modifying or rescinding any previously
approved incentive arrangement or as creating any limitations on the power of
the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than
under the Plan, and such arrangements may be either applicable generally or only
in specific cases.
<PAGE>

         10.      Limitation of Liability. As illustrative of the limitations of
liability of the Company, but not intended to be exhaustive thereof, nothing in
the Plan shall be construed to:

                  (a) give any person any right to be granted an Option other
than at the sole discretion of the Committee;

                  (b) give any person any rights whatsoever with respect to
Shares except a specifically provided in the Plan;

                  (c) limit in any way the right of the Company to terminate the
employment of any person at any time; or

                  (d) be evidence of any agreement or understanding, expressed
or implied, that the Company will employ any person in any particular position,
at any particular rate of compensation or for any particular period of time.

         11.      Regulations and Other Approvals; Governing Law.

                  (a) This Plan and the rights of all persons claiming hereunder
shall be construed and determined in accordance with the laws of the State of
Nevada without giving effect to the choice of law principles thereof.

                  (b) The obligation of the Company to sell or deliver Shares
with respect to Options granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable federal and
state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Committee.

                  (c) Subsequent to the registration of a class of equity
securities of the Company under Section 12 of the Exchange Act, any provisions
of the Plan inconsistent with Rule 16b-3 under the Exchange Act shall be
inoperative and shall not affect the validity of the Plan.

                  (d) Except as otherwise provided in Section 8, the Board may
make such changes as may be necessary or appropriate to comply with the rules
and regulations of any government authority or to obtain for Optionees granted
Incentive Stock Options, the tax benefits under the applicable provisions of the
Code and regulations promulgated thereunder.

                  (e) Each Option is subject to the requirement that, if at any
time the Committee determines, in its absolute discretion, that the listing,
registration or qualification of Shares issued pursuant to the Plan is required
by any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Option or the issuance of
<PAGE>

Shares, no Options shall be granted or payment made or Shares issued, in whole
or in part, unless listing, registration, qualification consent or approval has
been effected or obtained free of any conditions as acceptable to the Committee.

                  (f) In the event that the disposition of Shares acquired
pursuant to the Plan is not covered by a then current registration statement
under the Securities Act and is not otherwise exempt from such registration,
such Shares shall be restricted against transfer to the extent required by the
Securities Act or regulations thereunder, and the Committee may require an
Optionee receiving Shares pursuant to the Plan, as a condition precedent to
receipt of such Shares, to represent to the Company in writing that the Shares
acquired by such Optionee are acquired for investment only and not with a view
to distribution.

         12.      Market Standoff

                  (a) In connection with any underwritten public offering by the
Company of its equity securities pursuant to an effective registration statement
filed under the Securities Act, a person shall not sell, make any short sale of,
loan, hypothecate, pledge, grant any option for the purchase of, or otherwise
dispose of or transfer for value or otherwise agree to engage in any of the
foregoing transactions with respect to any shares issued pursuant to an Option
granted under the Plan without prior written consent of the Company or its
underwriters. Such limitations shall be in effect for such period of time as may
be requested by the Company or such underwriters and agreed to by the Company's
officers and directors with respect to their shares; provided, however, that in
no event shall such period exceed 180 days. Holders of shares issued pursuant to
an Option granted under the Plan shall be subject to the market standoff
provisions of this paragraph only if the officers and directors of the Company
are also subject to similar arrangements.

                  (b) In the event of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting the Company's outstanding Common Stock effected as a class without the
Company's receipt of consideration, any new, substituted or additional
securities distributed with respect to the purchased shares shall be immediately
subject to the provisions of this Section 12, to the same extent the purchased
shares are at such time covered by such provisions.

                  (c) In order to enforce the limitations of this Section 12,
the Company may impose stop-transfer instructions with respect to the purchased
shares until the end of the applicable standoff period.
<PAGE>

         13.      Miscellaneous.

                  (a) Multiple Agreements. The terms of each Option may differ
from other Options granted under the Plan at the same time, or at any other
time. The Committee may also grant more than one Option to a given Optionee
during the term of the Plan, either in addition to, or in substitution for, one
or more Options previously granted to that Optionee. The grant of multiple
Options may be evidenced by a single Agreement or multiple Agreements, as
determined by the Committee.

                  (b) Withholding of Taxes. The Company shall have the right to
deduct from any payment of cash to any Optionee an amount equal to the federal,
state and local income taxes and other amounts required by law to be withheld
with respect to any Option. Notwithstanding anything to the contrary contained
herein, if an Optionee is entitled to receive Shares upon exercise of an Option,
the Company shall have the right to require such Optionee, prior to the delivery
of such Shares, to pay to the Company the amount of any federal, state or local
income takes and other amounts which the Company is required by law to withhold.
The Agreement evidencing any Incentive Stock Options granted under this Plan
shall provide that if the Optionee makes a disposition, within the meaning of
Section 424(c) of the Code and regulations promulgated thereunder, of any Share
or Shares issued to such Optionee pursuant to such Optionee's exercise of the
Incentive Stock Option, and such disposition occurs within the two-year period
commencing on the day after the date of grant of such Option or within the one
year period commencing on the day after the sale or transfer of the Share or
Shares to the Optionee pursuant to the exercise of such Option, such Optionee
shall, within ten (10) days of such disposition, notify the Company thereof and
thereafter immediately deliver to the Company any amount of federal, state or
local income taxes and other amounts which the Company informs the Optionee the
Company is required to withhold.

                  (c) Designation of Beneficiary. Each Optionee may, with the
consent of the Committee, designate a person or persons to receive in event of
such Optionee's death, any Option or any amount of Shares payable pursuant
thereto, to which such Optionee would then be entitled. Such designation will be
made upon forms supplied by and delivered to the Company and may be revoked or
changed in writing. in the event of the death of an Optionee and in the absence
of a beneficiary validly designated under the Plan who is living at the time of
such Optionee's death, the Company shall deliver such Options and/or amounts
payable to the executor or administrator of the estate of the Optionee, or if no
such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its discretion, may deliver such Options and/or
amounts payable to the spouse or to any one or more dependents or relatives of
the Optionee, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.
<PAGE>

         14.      Effective Date. The effective date of the Plan is February 2,
2000.
<PAGE>

                       APPENDIX A FOR CALIFORNIA RESIDENTS

         This Appendix to the Inforetech Wireless Technology, Inc. 2000 Stock
Option Plan (the "Plan") shall have application only to Participants who are
residents of the State of California. Capitalized terms contained herein shall
have the same meaning given to them in the Plan, unless otherwise provided in
this Appendix. NOTWITHSTANDING ANY PROVISION CONTAINED IN THE PLAN TO THE
CONTRARY AND TO THE EXTENT REQUIRED BY APPLICABLE LAW, THE FOLLOWING TERMS AND
CONDITIONS SHALL APPLY TO ALL OPTIONS GRANTED TO RESIDENTS OF THE STATE OF
CALIFORNIA, UNTIL SUCH TIME AS THE COMMON STOCK BECOMES A "LISTED SECURITY"
UNDER THE SECURITIES ACT:

         1.       Nonqualified Stock Options shall have an exercise price that
is not less than 85% of the Fair Market Value of the stock at the time the
Option is granted, as determined by the Board, except that the exercise price
shall be 110% of the Fair Market Value in the case of any person who owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company or its parent or subsidiary corporations.

         2.       Options shall have a term of not more than ten years from the
date the Option is granted.

         3.       Options shall be nontransferable other than by will or the
laws of descent and distribution. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Committee, in its discretion,
may permit distribution of an Option to an inter vivos or testamentary trust in
which the Option is to be passed to beneficiaries upon the death of the trustor
(settlor), or by gift to "immediate family" as that term is defined in Rule
16a-1(e) of the Exchange Act.

         4.       Options shall become exercisable at the rate of at least 20%
per year over five years from the date of the Option is granted, subject to
reasonable conditions such as continued employment. However, in the case of an
Option granted to officers, directors or consultants of the Company or any of
its affiliates, the Option may become fully exercisable, subject to reasonable
conditions such as continued employment, at any time or during any period
established by the Company or any of its affiliates.

         5.       Unless employment is terminated for Cause, the right to
exercise an Option in the event of termination of employment, to the extent that
the Participant is otherwise entitled to exercise an Option on the date
employment terminates, shall be:
<PAGE>

                  (a) at least six months from the date of termination of
employment if termination was caused by death or disability;

                  (b) at least 30 days from the date of termination if
termination of employment was caused by other than death or disability; and

                  (c) but in no event later than the remaining term of the
Option.

         6.       No Option may be granted to a resident of California more than
ten years after the earlier of the date of adoption of the Plan and the date the
Plan is approved by the shareholders.

         7.       The Company shall provide annual financial statements of the
Company to each California resident holding an outstanding Option under the
Plan. Such financial statements need not be audited and need not be issued to
key employees whose duties at the Company assure them access to equivalent
information.

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