Document:

<Page>

                                                                    EXHIBIT 10.4

                                                                  EXECUTION COPY

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

                       GUARANTEE AND COLLATERAL AGREEMENT

                                   dated as of

                                 March 27, 2003,

                                      among

                                AMERIPATH, INC.,

                            AMERIPATH HOLDINGS, INC.,

                      the Subsidiaries of AMERIPATH, INC.,

                               identified herein,

                                       and

                           CREDIT SUISSE FIRST BOSTON,

                               as Collateral Agent

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                               Page
                                                                                               ----
<S>                                                                                              <C>
                                             ARTICLE I

                                            DEFINITIONS

SECTION 1.01. Credit Agreement....................................................................1
SECTION 1.02. Other Defined Terms.................................................................1

                                             ARTICLE II

                                             GUARANTEE

SECTION 2.01. Guarantee...........................................................................5
SECTION 2.02. Guarantee of Payment................................................................5
SECTION 2.03. No Limitations, Etc.................................................................5
SECTION 2.04. Reinstatement.......................................................................6
SECTION 2.05. Agreement To Pay; Subrogation.......................................................6
SECTION 2.06. Information.........................................................................7

                                            ARTICLE III

                                        PLEDGE OF SECURITIES

SECTION 3.01. Pledge..............................................................................7
SECTION 3.02. Delivery of the Pledged Collateral..................................................8
SECTION 3.03. Representations, Warranties and Covenants...........................................8
SECTION 3.04. Certification of Limited Liability Company Interests and Limited
               Partnership Interests..............................................................9
SECTION 3.05. Registration in Nominee Name; Denominations........................................10
SECTION 3.06. Voting Rights; Dividends and Interest, etc.........................................10

                                             ARTICLE IV

                              SECURITY INTERESTS IN PERSONAL PROPERTY

SECTION 4.01. Security Interest..................................................................12
SECTION 4.02. Representations and Warranties.....................................................14
SECTION 4.03. Covenants..........................................................................15
SECTION 4.04. Other Actions......................................................................18
SECTION 4.05. Covenants regarding Patent, Trademark and Copyright Collateral.....................21
</Table>

<Page>

                                                                               2

<Table>
<S>                                                                                              <C>
                                             ARTICLE V

                                              REMEDIES

SECTION 5.01. Remedies upon Default..............................................................23
SECTION 5.02. Application of Proceeds............................................................24
SECTION 5.03. Grant of License to Use Intellectual Property......................................25
SECTION 5.04. Securities Act, etc................................................................25

                                             ARTICLE VI

                              INDEMNITY, SUBROGATION AND SUBORDINATION

SECTION 6.01. Indemnity and Subrogation..........................................................26
SECTION 6.02. Contribution and Subrogation.......................................................26
SECTION 6.03. Subordination......................................................................27

                                            ARTICLE VII

                                           MISCELLANEOUS

SECTION 7.01. Notices............................................................................27
SECTION 7.02. Security Interest Absolute.........................................................27
SECTION 7.03. Survival of Agreement..............................................................28
SECTION 7.04. Binding Effect; Several Agreement..................................................28
SECTION 7.05. Successors and Assigns.............................................................28
SECTION 7.06. Collateral Agent's Fees and Expenses; Indemnification..............................28
SECTION 7.07. Collateral Agent Appointed Attorney-in-Fact........................................29
SECTION 7.08. Applicable Law.....................................................................30
SECTION 7.09. Waivers; Amendment.................................................................30
SECTION 7.10. Waiver of Jury Trial...............................................................30
SECTION 7.11. Severability.......................................................................31
SECTION 7.12. Counterparts.......................................................................31
SECTION 7.13. Headings...........................................................................31
SECTION 7.14. Jurisdiction; Consent to Service of Process........................................31
SECTION 7.15. Termination or Release.............................................................32
SECTION 7.16. Additional Grantors................................................................33
SECTION 7.17. Right of Setoff....................................................................33
</Table>

<Page>

                                                                               3

SCHEDULES

Schedule I    Subsidiary Guarantors
Schedule II   Capital Stock; Debt Securities
Schedule III  Intellectual Property

EXHIBITS

Exhibit I     Form of Supplement
Exhibit II    Form of Perfection Certificate

<Page>

                         GUARANTEE AND COLLATERAL AGREEMENT dated as of
                    March 27, 2003, among AMERIPATH, INC., a Delaware
                    corporation (the "BORROWER"), AMERIPATH HOLDINGS, INC., a
                    Delaware corporation ("HOLDINGS"), the Subsidiaries of the
                    Borrower identified herein and CREDIT SUISSE FIRST BOSTON
                    ("CSFB") as collateral agent (in such capacity, the
                    "COLLATERAL AGENT").

          Reference is made to the Credit Agreement dated as of March 27, 2003
(as amended, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"), among the Borrower, Holdings, the lenders from time to time party
thereto (the "LENDERS") and CSFB, as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT"). The Lenders have agreed to extend credit to the
Borrower pursuant to, and upon the terms and conditions specified in, the Credit
Agreement. The obligations of the Lenders to extend such credit to the Borrower
are conditioned upon, among other things, the execution and delivery of this
Agreement by Holdings, the Borrower and the Subsidiary Guarantors. Holdings and
the Subsidiary Guarantors are affiliates of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to
the Credit Agreement and are willing to execute and deliver this Agreement in
order to induce the Lenders to extend such credit. Accordingly, the parties
hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.01. CREDIT AGREEMENT. (a) Capitalized terms used in this
Agreement and not otherwise defined herein have the meanings specified in the
Credit Agreement. All terms defined in the New York UCC (as defined herein) and
not defined in this Agreement have the meanings specified therein; all
references to the Uniform Commercial Code shall mean the New York UCC; the term
"INSTRUMENT" shall have the meaning specified in Article 9 of the New York UCC.

          (b) The rules of construction specified in Section 1.02 of the Credit
Agreement also apply to this Agreement.

          SECTION 1.02. OTHER DEFINED TERMS. As used in this Agreement, the
following terms have the meanings specified below:

          "ACCOUNT DEBTOR" means any person who is or who may become obligated
to any Grantor under, with respect to or on account of an Account.

          "ACCOUNTS RECEIVABLE" shall mean all Accounts and all right, title and
interest in any returned goods, together will all rights, titles, securities and
guarantees with respect thereto, including any rights to stoppage in transit,
replevin, reclamation and

<Page>

                                                                               2

resales, and all related security interests, liens and pledges, whether
voluntary or involuntary, in each case whether now existing or owned or
hereafter arising or acquired.

          "ARTICLE 9 COLLATERAL" has the meaning assigned to such term in
Section 4.01.

          "COLLATERAL" means Article 9 Collateral and Pledged Collateral.

          "COPYRIGHT LICENSE" means any written agreement, now or hereafter in
effect, granting any right to any third party under any copyright now or
hereafter owned by any Grantor or that such Grantor otherwise has the right to
license, or granting any right to any Grantor under any copyright now or
hereafter owned by any third party, and all rights of such Grantor under any
such agreement.

          "COPYRIGHTS" means all of the following now owned or hereafter
acquired by any Grantor: (a) all copyright rights in any work subject to the
copyright laws of the United States or any other country, whether as author,
assignee, transferee or otherwise, and (b) all registrations and applications
for registration of any such copyright in the United States or any other
country, including registrations, recordings, supplemental registrations and
pending applications for registration in the United States Copyright Office (or
any successor office or any similar office in any other country), including
those listed on Schedule III.

          "CREDIT AGREEMENT" has the meaning assigned to such term in the
preliminary statement of this Agreement.

          "EQUITY INTERESTS" means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity interests in any person, or any obligations
convertible into or exchangeable for, or giving any person a right, option or
warrant to acquire such equity interests or such convertible or exchangeable
obligations.

          "GENERAL INTANGIBLES" means all choses in action and causes of action
and all other intangible personal property of any Grantor of every kind and
nature (other than Accounts) now owned or hereafter acquired by any Grantor,
including all rights and interests in partnerships, limited partnerships,
limited liability companies and other unincorporated entities, corporate or
other business records, indemnification claims, contract rights (including
rights under leases, whether entered into as lessor or lessee, Hedging
Agreements and other agreements), Intellectual Property, goodwill,
registrations, franchises, tax refund claims and any letter of credit,
guarantee, claim, security interest or other security held by or granted to any
Grantor to secure payment by an Account Debtor of any of the Accounts.

          "GRANTORS" means Holdings, the Borrower and the Subsidiary Guarantors.

          "GUARANTORS" means Holdings and the Subsidiary Guarantors.

<Page>

                                                                               3

          "INTELLECTUAL PROPERTY" means all intellectual and similar property of
any Grantor of every kind and nature now owned or hereafter acquired by any
Grantor, including inventions, designs, Patents, Copyrights, Licenses,
Trademarks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation,
registrations and franchises, and all additions, improvements and accessions to,
and books and records describing or used in connection with, any of the
foregoing.

          "LICENSE" means any Patent License, Trademark License, Copyright
License or other license or sublicense agreement to which any Grantor is a
party, including those listed on Schedule III.

          "LOAN DOCUMENT OBLIGATIONS" means (a) the due and punctual payment of
(i) the principal of and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) on
the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (ii) each payment required to be
made by the Borrower under the Credit Agreement in respect of any Letter of
Credit, when and as due, including payments in respect of reimbursement of
disbursements, interest thereon and obligations to provide cash collateral, and
(iii) all other monetary obligations of the Borrower to any of the Secured
Parties under the Credit Agreement and each of the other Loan Documents,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), (b)
the due and punctual performance of all other obligations of the Borrower under
or pursuant to the Credit Agreement and each of the other Loan Documents, and
(c) the due and punctual payment and performance of all the obligations of each
other Loan Party under or pursuant to this Agreement and each of the other Loan
Documents.

          "NEW YORK UCC" means the Uniform Commercial Code as from time to time
in effect in the State of New York.

          "OBLIGATIONS" means (a) the Loan Document Obligations and (b) the due
and punctual payment and performance of all obligations of each Loan Party under
each Hedging Agreement that (i) is in effect on the Closing Date with a
counterparty that is a Lender or an Affiliate of a Lender as of the Closing Date
or (ii) is entered into after the Closing Date with any counterparty that is a
Lender or an Affiliate of a Lender at the time such Hedging Agreement is entered
into.

          "PATENT LICENSE" means any written agreement, now or hereafter in
effect, granting to any third party any right to make, use or sell any invention
on which a patent, now or hereafter owned by any Grantor or that any Grantor
otherwise has the right to license, is in existence, or granting to any Grantor
any right to make, use or sell any

<Page>

                                                                               4

invention on which a patent, now or hereafter owned by any third party, is in
existence, and all rights of any Grantor under any such agreement,

          "PATENTS" means all of the following now owned or hereafter acquired
by any Grantor: (a) all letters patent of the United States or the equivalent
thereof in any other country, all registrations and recordings thereof, and all
applications for letters patent of the United States or the equivalent thereof
in any other country, including registrations, recordings and pending
applications in the United States Patent and Trademark Office (or any successor
or any similar offices in any other country), including those listed on Schedule
III, and (b) all reissues, continuations, divisions, continuations-in-part,
renewals or extensions thereof, and the inventions disclosed or claimed therein,
including the right to make, use and/or sell the inventions disclosed or claimed
therein.

          "PERFECTION CERTIFICATE" means a certificate substantially in the form
of Exhibit II, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by two Financial Officers.

          "PLEDGED COLLATERAL" has the meaning assigned to such term in
Section 3.01.

          "PLEDGED DEBT SECURITIES" has the meaning assigned to such term in
Section 3.01.

          "PLEDGED SECURITIES" means any promissory notes, stock certificates or
other securities now or hereafter included in the Pledged Collateral, including
all certificates, instruments or other documents representing or evidencing any
Pledged Collateral.

          "PLEDGED STOCK" has the meaning assigned to such term in Section 3.01.

          "PROCEEDS" has the meaning specified in Section 9-102 of the New York
UCC.

          "SECURED PARTIES" means (a) the Lenders, (b) the Administrative Agent,
(c) the Collateral Agent, (d) the Issuing Bank, (e) each counterparty to any
Hedging Agreement with a Loan Party that either (i) is in effect on the Closing
Date if such counterparty is a Lender or an Affiliate of a Lender as of the
Closing Date or (ii) is entered into after the Closing Date if such counterparty
is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is
entered into, (f) the beneficiaries of each indemnification obligation
undertaken by any Loan Party under any Loan Document and (g) the successors and
assigns of each of the foregoing.

          "SECURITY INTEREST" has the meaning assigned to such term in
Section 4.01.

          "SUBSIDIARY GUARANTORS" means (a) the Subsidiaries identified on
Schedule I and (b) each other Subsidiary that becomes a party to this Agreement
as a Subsidiary Guarantor after the Closing Date.

<Page>

                                                                               5

          "TRADEMARK LICENSE" means any written agreement, now or hereafter in
effect, granting to any third party any right to use any trademark now or
hereafter owned by any Grantor or that any Grantor otherwise has the right to
license, or granting to any Grantor any right to use any trademark now or
hereafter owned by any third party, and all rights of any Grantor under any such
agreement.

          "TRADEMARKS" means all of the following now owned or hereafter
acquired by any Grantor: (a) all trademarks, service marks, trade names,
corporate names, company names, business names, fictitious business names, trade
styles, trade dress, logos, other source or business identifiers, designs and
general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including registrations
and registration applications in the United States Patent and Trademark Office
(or any successor office) or any similar offices in any State of the United
States or any other country or any political subdivision thereof, and all
extensions or renewals thereof, including those listed on Schedule III, (b) all
goodwill associated therewith or symbolized thereby and (c) all other assets,
rights and interests that uniquely reflect or embody such goodwill.

                                   ARTICLE II

                                    GUARANTEE

          SECTION 2.01. GUARANTEE. Each Guarantor unconditionally guarantees,
jointly with the other Guarantors and severally, as a primary obligor and not
merely as a surety, the due and punctual payment and performance of the
Obligations. Each of the Guarantors further agrees that the Obligations may be
extended or renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its guarantee notwithstanding any
extension or renewal of any Obligation. Each of the Guarantors waives
presentment to, demand of payment from and protest to the Borrower or any other
Loan Party of any of the Obligations, and also waives notice of acceptance of
its guarantee and notice of protest for nonpayment.

          SECTION 2.02. GUARANTEE OF PAYMENT. Each of the Guarantors further
agrees that its guarantee hereunder constitutes a guarantee of payment when due
and not of collection, and waives any right to require that any resort be had by
the Collateral Agent or any other Secured Party to any security held for the
payment of the Obligations or to any balance of any deposit account or credit on
the books of the Collateral Agent or any other Secured Party in favor of the
Borrower or any other person.

          SECTION 2.03. NO LIMITATIONS, ETC. (a) Except for termination of a
Guarantor's obligations hereunder as expressly provided in Section 7.15, the
obligations of each Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to any defense or setoff, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality or unenforceability of the Obligations or
otherwise. Without limiting the generality of the

<Page>

                                                                               6

foregoing, the obligations of each Guarantor hereunder shall not be discharged
or impaired or otherwise affected by (i) the failure of the Collateral Agent or
any other Secured Party to assert any claim or demand or to enforce any right or
remedy under the provisions of any Loan Document or otherwise; (ii) any
rescission, waiver, amendment or modification of, or any release from any of the
terms or provisions of, any Loan Document or any other agreement, including with
respect to any other Guarantor under this Agreement; (iii) the release of any
security held by the Collateral Agent or any other Secured Party for the
Obligations or any of them; (iv) any default, failure or delay, wilful or
otherwise, in the performance of the Obligations; or (v) any other act or
omission that may or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of any Guarantor as a matter of
law or equity (other than the indefeasible payment in full in cash of all the
Obligations). Each Guarantor expressly authorizes the Collateral Agent to take
and hold security for the payment and performance of the Obligations, to
exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and
manner of any sale thereof in its sole discretion or to release or substitute
any one or more other guarantors or obligors upon or in respect of the
Obligations, all without affecting the obligations of any Guarantor hereunder.

          (b) To the fullest extent permitted by applicable law, each Guarantor
waives any defense based on or arising out of any defense of the Borrower or any
other Loan Party or the unenforceability of the Obligations or any part thereof
from any cause, or the cessation from any cause of the liability of the Borrower
or any other Loan Party, other than the indefeasible payment in full in cash of
all the Obligations. The Collateral Agent and the other Secured Parties may, at
their election, foreclose on any security held by one or more of them by one or
more judicial or nonjudicial sales, accept an assignment of any such security in
lieu of foreclosure, compromise or adjust any part of the Obligations, make any
other accommodation with the Borrower or any other Loan Party or exercise any
other right or remedy available to them against the Borrower or any other Loan
Party, without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations have been fully and indefeasibly
paid in full in cash. To the fullest extent permitted by applicable law, each
Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrower or any other Loan Party, as the case may be, or any
security.

          SECTION 2.04. REINSTATEMENT. Each of the Guarantors agrees that its
guarantee hereunder shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by the Collateral Agent or any other
Secured Party upon the bankruptcy or reorganization of the Borrower, any other
Loan Party or otherwise.

          SECTION 2.05. AGREEMENT TO PAY; SUBROGATION. In furtherance of the
foregoing and not in limitation of any other right that the Collateral Agent or
any other Secured Party has at law or in equity against any Guarantor by virtue
hereof, upon the failure of the Borrower or any other Loan Party to pay any
Obligation when and as the

<Page>

                                                                               7

same shall become due, whether at maturity, by acceleration after notice of
prepayment or otherwise, each Guarantor hereby promises to and will forthwith
pay, or cause to be paid, to the Collateral Agent for distribution to the
applicable Secured Parties in cash the amount of such unpaid Obligation. Upon
payment by any Guarantor of any sums to the Collateral Agent as provided above,
all rights of such Guarantor against the Borrower or any other Guarantor arising
as a result thereof by way of right of subrogation, contribution, reimbursement,
indemnity or otherwise shall in all respects be subject to Article VI.

          SECTION 2.06. INFORMATION. Each Guarantor assumes all responsibility
for being and keeping itself informed of the Borrower's and each other Loan
Party's financial condition and assets, and of all other circumstances bearing
upon the risk of nonpayment of the Obligations and the nature, scope and extent
of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Collateral Agent or the other Secured Parties will have any duty to
advise such Guarantor of information known to it or any of them regarding such
circumstances or risks.

                                   ARTICLE III

                              PLEDGE OF SECURITIES

          SECTION 3.01. PLEDGE. As security for the payment or performance, as
the case may be, in full of the Obligations, each Grantor hereby pledges to the
Collateral Agent, its successors and assigns, for the benefit of the Secured
Parties, and hereby grants to the Collateral Agent, its successors and assigns,
for the benefit of the Secured Parties, a security interest in, all of such
Grantor's right, title and interest in, to and under (a) Equity interests owned
by it and listed on Schedule II and any other Equity Interests obtained in the
future by such Grantor and the certificates representing all such Equity
Interests (the "PLEDGED STOCK"); PROVIDED that the Pledged Stock (x) shall not
include any Equity Interests which may not be pledged, assigned or otherwise
encumbered pursuant to applicable Federal, state or local laws, rules or
regulations related to the practice of medicine or the healthcare industry
generally and (y) shall not include more than 65% of the issued and outstanding
voting Equity Interests of any Foreign Subsidiary; (b)(i) the debt securities
listed opposite the name of such Grantor on Schedule II, (ii) any debt
securities in the future issued to such Grantor and (iii) the promissory notes
and any other instruments evidencing such debt securities (the "PLEDGED DEBT
SECURITIES"); (c) all other property that may be delivered to and held by the
Collateral Agent pursuant to the terms of this Section 3.01; (d) subject to
Section 3.06, all payments of principal or interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of,
and all other Proceeds received in respect of, the securities referred to in
clauses (a) and (b) above; (e) subject to Section 3.06, all rights and
privileges of such Grantor with respect to the securities and other property
referred to in clauses (a), (b), (c) and (d) above; and (f) all Proceeds of any
of the foregoing (the items referred to in clauses (a) through (f) above being
collectively referred to as the "PLEDGED COLLATERAL").

<Page>

                                                                               8

          TO HAVE AND TO HOLD the Pledged Collateral, together with all right,
title, interest, powers, privileges and preferences pertaining or incidental
thereto, unto the Collateral Agent, its successors and assigns, for the ratable
benefit of the Secured Parties, forever; SUBJECT, HOWEVER, to the terms,
covenants and conditions hereinafter set forth.

          SECTION 3.02. DELIVERY OF THE PLEDGED COLLATERAL. (a) Each Grantor
agrees promptly to deliver or cause to be delivered to the Collateral Agent any
and all Pledged Securities.

          (b) Each Grantor will cause any Indebtedness for borrowed money owed
to such Grantor by any person that is evidenced by a duly executed promissory
note to be pledged and delivered to the Collateral Agent pursuant to the terms
hereof.

          (c) Upon delivery to the Collateral Agent, (i) any Pledged Securities
shall be accompanied by stock powers duly executed in blank or other instruments
of transfer reasonably satisfactory to the Collateral Agent and by such other
instruments and documents as the Collateral Agent may reasonably request and
(ii) all other property comprising part of the Pledged Collateral shall be
accompanied by proper instruments of assignment duly executed by the applicable
Grantor and such other instruments or documents as the Collateral Agent may
reasonably request. Each delivery of Pledged Securities shall be accompanied by
a schedule describing the securities, which schedule shall be attached hereto as
Schedule II and made a part hereof; PROVIDED that failure to attach any such
schedule hereto shall not affect the validity of such pledge of such Pledged
Securities. Each schedule so delivered shall supplement any prior schedules so
delivered.

          SECTION 3.03. REPRESENTATIONS, WARRANTIES AND COVENANTS. The Grantors
jointly and severally represent, warrant and covenant to and with the Collateral
Agent, for the benefit of the Secured Parties, that:

               (a) Schedule II correctly sets forth the percentage of the issued
     and outstanding shares of each class of the Equity Interests of the issuer
     thereof represented by such Pledged Stock and includes all Equity
     Interests, debt securities and promissory notes required to be pledged
     hereunder;

               (b) the Pledged Stock and Pledged Debt Securities issued by the
     Borrower or any Subsidiary have been duly and validly authorized and issued
     by the issuers thereof and (i) in the case of Pledged Stock, are fully paid
     and nonassessable and (ii) in the case of Pledged Debt Securities, are
     legal, valid and binding obligations of the issuers thereof;

               (c) except for the security interests granted hereunder, each of
     the Grantors (i) is and, subject to any transfers made in compliance with
     the Credit Agreement, will continue to be the direct owner, beneficially
     and of record, of the Pledged Securities indicated on Schedule II as owned
     by such Grantor, (ii) holds the same free and clear of all Liens, (iii)
     will make no assignment, pledge, hypothecation or transfer of, or create or
     permit to exist any security interest in or

<Page>

                                                                               9

     other Lien on, the Pledged Collateral, other than Liens created by this
     Agreement and transfers made in compliance with the Credit Agreement, and
     (iv) subject to Section 3.06, will cause any and all Pledged Collateral,
     whether for value paid by the Grantor or otherwise, to be forthwith
     deposited with the Collateral Agent and pledged or assigned hereunder;

               (d) except for restrictions and limitations imposed by the Loan
     Documents or securities laws generally, the Pledged Collateral is and will
     continue to be freely transferable and assignable, and none of the Pledged
     Collateral is or will be subject to any option, right of first refusal,
     shareholders agreement, charter or by-law provisions or contractual
     restriction of any nature that might prohibit, impair, delay or otherwise
     affect the pledge of such Pledged Collateral hereunder, the sale or
     disposition thereof pursuant hereto or the exercise by the Collateral Agent
     of rights and remedies hereunder;

               (e) each of the Grantors (i) has the power and authority to
     pledge the Pledged Collateral pledged by it hereunder in the manner hereby
     done or contemplated and (ii) will defend its title or interest thereto or
     therein against any and all Liens (other than the Lien created by this
     Agreement), however arising, of all persons whomsoever;

               (f) no consent or approval of any Governmental Authority, any
     securities exchange or any other person was or is necessary to the validity
     of the pledge effected hereby (other than such as have been obtained and
     are in full force and effect);

               (g) by virtue of the execution and delivery by the Grantors of
     this Agreement, when any Pledged Securities are delivered to the Collateral
     Agent in accordance with this Agreement, the Collateral Agent will obtain a
     legal, valid and perfected first priority lien upon and security interest
     in such Pledged Securities as security for the payment and performance of
     the Obligations; and

               (h) the pledge effected hereby is effective to vest in the
     Collateral Agent, for the benefit of the Secured Parties, the rights of the
     Collateral Agent in the Pledged Collateral as set forth herein.

          SECTION 3.04. CERTIFICATION OF LIMITED LIABILITY COMPANY INTERESTS AND
LIMITED PARTNERSHIP INTERESTS. Each Grantor, jointly and severally, covenants
with the Collateral Agent, for the benefit of the Secured Parties, that

               (a) each interest in any limited liability company and limited
     partnership controlled by any Grantor as of the Closing Date shall not be
     represented by a certificate and shall not be assigned, pledged,
     hypothecated or transferred other than in compliance with the Credit
     Agreement; and

               (b) to the extent permitted by applicable law, each interest in
     any limited liability company and limited partnership controlled by any
     Grantor and acquired after the Closing Date and pledged hereunder shall be
     represented by a

<Page>

                                                                              10

     certificate, shall be a "security" within the meaning of Article 8 of the
     New York UCC and shall be governed by Article 8 of the New York UCC;

PROVIDED, HOWEVER, that this Section 3.04 shall not apply to any Equity
Interests in limited liability companies or limited partnerships which may not
be pledged, assigned or otherwise encumbered pursuant to applicable Federal,
state or local laws, rules or regulations related to the practice of medicine or
the healthcare industry generally.

          SECTION 3.05. REGISTRATION IN NOMINEE NAME; DENOMINATIONS. The
Collateral Agent, on behalf of the Secured Parties, shall have the right (in its
sole and absolute discretion) to hold the Pledged Securities in its own name as
pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the
applicable Grantor, endorsed or assigned in blank or in favor of the Collateral
Agent. Each Grantor will promptly give to the Collateral Agent copies of any
notices or other communications received by it with respect to Pledged
Securities registered in the name of such Grantor. The Collateral Agent shall at
all times have the right to exchange the certificates representing Pledged
Securities for certificates of smaller or larger denominations for any purpose
consistent with this Agreement.

          SECTION 3.06. VOTING RIGHTS; DIVIDENDS AND INTEREST, ETC. (a) Unless
and until an Event of Default shall have occurred and be continuing and the
Collateral Agent shall have given the Grantors notice of its intent to exercise
its rights under this Agreement (which shall be deemed immediately to have been
given in the case of any Event of Default with respect to Holdings or the
Borrower under paragraph (g) or (h) of Article VII of the Credit Agreement):

               (i)    Each Grantor shall be entitled to exercise any and all
          voting and/or other consensual rights and powers inuring to an owner
          of Pledged Securities or any part thereof for any purpose consistent
          with the terms of this Agreement, the Credit Agreement and the other
          Loan Documents; PROVIDED that such rights and powers shall not be
          exercised in any manner that could materially and adversely affect the
          rights inuring to a holder of any Pledged Securities or the rights and
          remedies of any of the Collateral Agent or the other Secured Parties
          under this Agreement or the Credit Agreement or any other Loan
          Document or the ability of the Secured Parties to exercise the same.

               (ii)   The Collateral Agent shall execute and deliver to each
          Grantor, or cause to be executed and delivered to such Grantor, all
          such proxies, powers of attorney and other instruments as such Grantor
          may reasonably request for the purpose of enabling such Grantor to
          exercise the voting and/or consensual rights and powers it is entitled
          to exercise pursuant to subparagraph (i) above.

               (iii)  Each Grantor shall be entitled to receive and retain any
          and all dividends, interest, principal and other distributions paid on
          or distributed in respect of the Pledged Securities to the extent and
          only to the extent that

<Page>

                                                                              11

          such dividends, interest, principal and other distributions are
          permitted by, and otherwise paid or distributed in accordance with,
          the terms and conditions of the Credit Agreement, the other Loan
          Documents and applicable laws; PROVIDED that any noncash dividends,
          interest, principal or other distributions that would constitute
          Pledged Stock or Pledged Debt Securities, whether resulting from a
          subdivision, combination or reclassification of the outstanding Equity
          Interests of the issuer of any Pledged Securities or received in
          exchange for Pledged Securities or any part thereof, or in redemption
          thereof, or as a result of any merger, consolidation, acquisition or
          other exchange of assets to which such issuer may be a party or
          otherwise, shall be and become part of the Pledged Collateral, and, if
          received by any Grantor, shall not be commingled by such Grantor with
          any of its other funds or property but shall be held separate and
          apart therefrom, shall be held in trust for the benefit of the
          Collateral Agent and shall be forthwith delivered to the Collateral
          Agent in the same form as so received (with any necessary
          endorsement). This paragraph (iii) shall not apply to dividends among
          the Subsidiaries only of property subject to a perfected security
          interest under this Agreement; PROVIDED that the Borrower notifies the
          Collateral Agent in writing, specifically referring to this Section
          3.06 at the time of such dividend and takes any actions the Collateral
          Agent reasonably specifies to ensure the continuance of its perfected
          security interest in such property under this Agreement.

          (b) Upon the occurrence and during the continuance of an Event of
Default, after the Collateral Agent shall have notified (or shall be deemed to
have notified) the Grantors of its intent to exercise its rights under paragraph
(a)(iii) of this Section 3.06, then all rights of any Grantor to dividends,
interest, principal or other distributions that such Grantor is authorized to
receive pursuant to paragraph (a)(iii) of this Section 3.06 shall cease, and all
such rights shall thereupon become vested in the Collateral Agent, which shall
have the sole and exclusive right and authority to receive and retain such
dividends, interest, principal or other distributions. All dividends, interest,
principal or other distributions received by any Grantor contrary to the
provisions of this Section 3.06 shall be held in trust for the benefit of the
Collateral Agent, shall be segregated from other property or funds of such
Grantor and shall be forthwith delivered to the Collateral Agent upon demand in
The same form as so received (with any necessary endorsement). Any and all money
and other property paid over to or received by the Collateral Agent pursuant to
the provisions of this paragraph (b) shall be retained by the Collateral Agent
in an account to be established by the Collateral Agent upon receipt of such
money or other property and shall be applied in accordance with the provisions
of Section 5.02. After all Events of Default have been cured or waived and the
applicable Grantor or Grantors have delivered to the Administrative Agent
certificates to that effect, the Collateral Agent shall, promptly after all such
Events of Default have been cured or waived, repay to each Grantor (without
interest) all dividends, interest, principal or other distributions that such
Grantor would otherwise be permitted to retain pursuant to the terms of
paragraph (a)(iii) of this Section 3.06 and that remain in such account.

<Page>

                                                                              12

          (c) Upon the occurrence and during the continuance of an Event of
Default, after the Collateral Agent shall have notified (or shall be deemed to
have notified) the Grantors of its intent to exercise its rights under paragraph
(a)(i) of this Section 3.06, then all rights of any Grantor to exercise the
voting and consensual rights and powers it is entitled to exercise pursuant to
paragraph (a)(i) of this Section 3.06, and the obligations of the Collateral
Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to exercise such voting and
consensual rights and powers; PROVIDED that, unless otherwise directed by the
Required Lenders, the Collateral Agent shall have the right from time to time
following and during the continuance of an Event of Default to permit the
Grantors to exercise such rights.

          (d) Any notice given by the Collateral Agent to the Grantors
exercising its rights under paragraph (a) of this Section 3.06 (i) may be given
by telephone if promptly confirmed in writing, (ii) may be given to one or more
of the Grantors at the same or different times and (iii) may suspend the rights
of the Grantors under paragraph (a)(i) or paragraph (a)(iii) in part without
suspending all such rights (as specified by the Collateral Agent in its sole and
absolute discretion) and without waiving or otherwise affecting the Collateral
Agent's rights to give additional notices from time to time suspending other
rights so long as an Event of Default has occurred and is continuing.

                                   ARTICLE IV

                     SECURITY INTERESTS IN PERSONAL PROPERTY

          SECTION 4.01. SECURITY INTEREST. (a) As security for the payment or
performance, as the case may be, in full of the Obligations, each Grantor hereby
assigns and pledges for security purposes to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, and
hereby grants to the Collateral Agent, its successors and assigns, for the
ratable benefit of the Secured Parties, a security interest (the "SECURITY
INTEREST"), in all right, title or interest in or to any and all of the
following assets and properties now owned or at any time hereafter acquired by
such Grantor or in which such Grantor now has or at any time in the future may
acquire any right, title or interest (collectively, the "ARTICLE 9 COLLATERAL"):

               (i)    all Accounts;

               (ii)   all Chattel Paper;

               (iii)  all cash and deposit accounts;

               (iv)   the Contingent Note Reserve;

               (v)    all Documents;

               (vi)   all Equipment;

               (vii)  all General Intangibles;

<Page>

                                                                              13

               (viii) all Instruments;

               (ix)   all Inventory;

               (x)    all Investment Property;

               (xi)   all Letter-of-credit rights;

               (xii)  all books and records pertaining to the Article 9
          Collateral; and

               (xiii) to the extent not otherwise included, all Proceeds and
          products of any and all of the foregoing and all collateral security
          and guarantees given by any person with respect to any of the
          foregoing.

Notwithstanding the foregoing, the Article 9 Collateral shall not include any
Equipment that is subject to a purchase money lien or capital lease permitted
under the Credit Agreement to the extent the documents relating to such purchase
money lien or capital lease would not permit such Equipment to be subject to the
Security Interests created hereby.

          (b) Each Grantor hereby irrevocably authorizes the Collateral Agent at
any time and from time to time to file in any relevant jurisdiction any initial
financing statements (including fixture filings) and amendments thereto that
contain the information required by Article 9 of the Uniform Commercial Code of
each applicable jurisdiction for the filing of any financing statement or
amendment, including (i) whether such Grantor is an organization, the type of
organization and any organizational identification number issued to such Grantor
and (ii) in the case of a financing statement filed as a fixture filing, a
sufficient description of the real property to which such Article 9 Collateral
relates. Each Grantor agrees to provide such information to the Collateral Agent
promptly upon request.

          Each Grantor also ratifies its authorization for the Collateral Agent
to file in any relevant jurisdiction any initial financing statements or
amendments thereto if filed prior to the date hereof.

          The Collateral Agent is further authorized to file with the United
States Patent and Trademark Office or United States Copyright Office (or any
successor office or any similar office in any other country) or to file such
documents as may be necessary or advisable for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security Interest granted by
each Grantor, without the signature of any Grantor, and naming any Grantor or
the Grantors as debtors and the Collateral Agent as secured party.

          (c) The Security Interest is granted as security only and shall not
subject the Collateral Agent or any other Secured Party to, or in any way alter
or modify, any obligation or liability of any Grantor with respect to or arising
out of the Article 9 Collateral.

<Page>

                                                                              14

          SECTION 4.02. REPRESENTATIONS AND WARRANTIES. The Grantors jointly and
severally represent and warrant to the Collateral Agent and the Secured Parties
that:

               (a) Each Grantor has good and valid rights in and title to the
     Article 9 Collateral with respect to which it has purported to grant a
     Security Interest hereunder and has full power and authority to grant to
     the Collateral Agent the Security Interest in such Article 9 Collateral
     pursuant hereto and to execute, deliver and perform its obligations in
     accordance with the terms of this Agreement, without the consent or
     approval of any other person other than any consent or approval that has
     been obtained.

               (b) The Perfection Certificate has been duly prepared, completed
     and executed and the information set forth therein, including (x) the exact
     legal name of such Grantor and (y) the jurisdiction of organization of such
     Grantor, is correct and complete in all material respects (except that the
     information referred to in the preceding clauses (x) and (y) shall not be
     subject to such materiality qualifier) as of the Closing Date. Uniform
     Commercial Code financing statements (including fixture filings, as
     applicable) or other appropriate filings, recordings or registrations
     containing a description of the Article 9 Collateral have been prepared by
     the Collateral Agent based upon the information provided to the
     Administrative Agent in the Perfection Certificate for filing in each
     governmental, municipal or other office specified in Schedule 2 to the
     Perfection Certificate (or specified by notice from the Borrower to the
     Administrative Agent after the Closing Date in the case of filings,
     recordings or registrations required by Section 5.06 or 5.09 of the Credit
     Agreement, which are all the filings, recordings and registrations (other
     than filings required to be made in the United States Patent and Trademark
     Office and the United States Copyright Office in order to perfect the
     Security Interest in Article 9 Collateral consisting of United States
     Patents, Trademarks and Copyrights) that are necessary as of the Closing
     Date to publish notice of and protect the validity of and to establish a
     legal, valid and perfected security interest in favor of the Collateral
     Agent (for the ratable benefit of the Secured Parties) in respect of all
     Article 9 Collateral in which the Security Interest may be perfected by
     filing, recording or registration in the United States (or any political
     subdivision thereof) and its territories and possessions, and no further or
     subsequent filing, refiling, recording, rerecording, registration or
     reregistration is necessary in any such jurisdiction, except as provided
     under applicable law with respect to the filing of continuation statements.
     Each Grantor represents and warrants that a fully executed agreement in the
     form hereof and containing a description of all Article 9 Collateral
     consisting of Intellectual Property with respect to United States Patents
     and United States registered Trademarks (and Trademarks for which United
     States registration applications are pending) and United States registered
     Copyrights have been delivered to the Collateral Agent for recording by the
     United States Patent and Trademark Office and the United States Copyright
     Office pursuant to 35 U.S.C. Section 261, 15 U.S.C. Section 1060 or 17
     U.S.C. Section 205 and the regulations thereunder, as applicable, and
     otherwise as may be required pursuant to the laws of any other necessary
     jurisdiction, to protect the validity of and to establish a legal, valid
     and perfected

<Page>

                                                                              15

     security interest in favor of the Collateral Agent (for the ratable benefit
     of the Secured Parties) in respect of all Article 9 Collateral consisting
     of Patents, Trademarks and Copyrights in which a security interest may be
     perfected by filing, recording or registration in the United States (or any
     political subdivision thereof) and its territories and possessions, and no
     further or subsequent filing, refiling, recording, rerecording,
     registration or reregistration is necessary (other than such actions as are
     necessary to perfect the Security Interest with respect to any Article 9
     Collateral consisting of Patents, Trademarks and Copyrights (or
     registration or application for registration thereof) acquired or developed
     after the date hereof).

               (c) The Security Interest constitutes (i) a legal and valid
     security interest in all the Article 9 Collateral securing the payment and
     performance of the Obligations, (ii) subject to the filings described in
     Section 4.02(b), a perfected security interest in all Article 9 Collateral
     in which a security interest may be perfected by filing, recording or
     registering a financing statement or analogous document in the United
     States (or any political subdivision thereof) and its territories and
     possessions pursuant to the Uniform Commercial Code or other applicable law
     in such jurisdictions and (iii) a security interest that shall be perfected
     in all Article 9 Collateral in which a security interest may be perfected
     upon the receipt and recording of this Agreement with the United States
     Patent and Trademark Office and the United States Copyright Office, as
     applicable. The Security Interest is and shall be prior to any other Lien
     on any of the Article 9 Collateral, other than Liens permitted pursuant to
     Section 6.02 of the Credit Agreement.

               (d) The Article 9 Collateral is owned by the Grantors free and
     clear of any Lien, except for Liens expressly permitted pursuant to Section
     6.02 of the Credit Agreement. None of the Grantors has filed or consented
     to the filing of (i) any financing statement or analogous document under
     the Uniform Commercial Code or any other applicable laws covering any
     Article 9 Collateral, (ii) any assignment in which any Grantor assigns any
     Collateral or any security agreement or similar instrument covering any
     Article 9 Collateral with the United States Patent and Trademark Office or
     the United States Copyright Office or (iii) any assignment in which any
     Grantor assigns any Article 9 Collateral or any security agreement or
     similar instrument covering any Article 9 Collateral with any foreign
     governmental, municipal or other office, which financing statement or
     analogous document, assignment, security agreement or similar instrument is
     still in effect, except, in each case, for Liens expressly permitted
     pursuant to Section 6.02 of the Credit Agreement. None of the Grantors hold
     any commercial tort claim except as indicated on the Perfection
     Certificate.

          SECTION 4.03. COVENANTS. (a) Each Grantor agrees to maintain, at its
own cost and expense, such complete and accurate records with respect to the
Article 9 Collateral owned by it as is consistent with its current practices and
in accordance with such standard practices used in industries that are the same
as or similar to those in which such Grantor is engaged, but in any event to
include complete accounting records

<Page>

                                                                              16

indicating all payments and proceeds received with respect to any part of the
Article 9 Collateral, and, at such time or times as the Collateral Agent may
reasonably request, promptly to prepare and deliver to the Collateral Agent a
duly certified schedule or schedules in form and detail reasonably satisfactory
to the Collateral Agent showing the identity, amount and location of any and all
Article 9 Collateral.

          (b) Each Grantor shall, at its own expense, take any and all actions
necessary to defend title to the Article 9 Collateral against all persons and to
defend the Security Interest of the Collateral Agent in the Article 9 Collateral
and the priority thereof against any Lien not expressly permitted pursuant to
Section 6.02 of the Credit Agreement. Nothing in this Agreement shall prevent
any Grantor from discontinuing the operation or maintenance of any of its assets
or properties if such discontinuance is, in the judgment of its board of
directors, desirable in the conduct of its business.

          (c) Each Grantor agrees, at its own expense, to execute, acknowledge,
deliver and cause to be duly filed all such further instruments and documents
and take all such actions as the Collateral Agent may from time to time
reasonably request to better assure, preserve, protect and perfect the Security
Interest and the rights and remedies created hereby, including the payment of
any fees and Taxes required in connection with the execution and delivery of
this Agreement, the granting of the Security Interest and the filing of any
financing statements (including fixture filings) or other documents in
connection herewith or therewith. If any amount payable to any Grantor under or
in connection with any of the Article 9 Collateral shall be or become evidenced
by any promissory note or other instrument in excess of $200,000, such note or
instrument shall be promptly pledged and delivered to the Collateral Agent, duly
endorsed in a manner reasonably satisfactory to the Collateral Agent.

          Without limiting the generality of the foregoing, each Grantor hereby
authorizes the Collateral Agent, with prompt notice thereof to the Grantors, to
supplement this Agreement by supplementing Schedule III or adding additional
schedules hereto to specifically identify any asset or item that may, in the
Collateral Agent's reasonable judgment, constitute Copyrights, Licenses, Patents
or Trademarks; PROVIDED that any Grantor shall have the right, exercisable
within 15 days after it has been notified by the Collateral Agent of the
specific identification of such Collateral, to advise the Collateral Agent in
writing of any material inaccuracy of the representations and warranties made by
such Grantor hereunder with respect to such Collateral. Each Grantor agrees that
it will use its commercially reasonable efforts to take such action as shall be
necessary in order that all representations and warranties hereunder shall be
true and correct in all material respects with respect to such Collateral within
35 days after the date it has been notified by the Collateral agent of the
specific identification of such Collateral.

          (d) The Collateral Agent and such persons as the Collateral Agent may
reasonably designate shall have the right, at the Grantors' own cost and
expense, to inspect the Article 9 Collateral, all records reasonably related
thereto (and to make extracts and copies from such records) and the premises
upon which any of the Article 9 Collateral is located, to discuss the Grantors'
affairs with the officers of the Grantors and

<Page>

                                                                              17

their independent accountants and to verify under reasonable procedures, in
accordance with Section 5.07 of the Credit Agreement, the validity, amount,
quality, quantity, value, condition and status of, or any other matter relating
to, the Article 9 Collateral, including, in the case of Accounts or Article 9
Collateral in the possession of any third person, by contacting Account Debtors
only during the existence of a Default or the third person possessing such
Article 9 Collateral for the purpose of making such a verification. The
Collateral Agent shall have the absolute right to share any information it gains
from such inspection or verification with any Secured Party, PROVIDED that
Collateral Agent and each Secured Party shall maintain the confidentiality of
such information as provided in Section 9.16 of the Credit Agreement.

          (e) At its option, the Collateral Agent may discharge past due Taxes,
assessments, charges, fees, Liens, security interests or other encumbrances at
any time levied or placed on the Article 9 Collateral and not expressly
permitted pursuant to Section 6.02 of the Credit Agreement (other than taxes,
assessments and charges (i) the validity or the amount of which is being
contested in good faith by appropriate proceedings and such contest operates to
suspend collection of the contested obligation, tax, assessment or charge and
enforcement of a Lien and (ii) with respect to which the Borrower has set aside
on its books adequate reserves in accordance with GAAP), and may pay for the
maintenance and preservation of the Article 9 Collateral to the extent any
Grantor fails to do so as required by the Credit Agreement or this Agreement,
and each Grantor jointly and severally agrees to reimburse the Collateral Agent
on demand for any payment made or any expense incurred by the Collateral Agent
pursuant to the foregoing authorization; PROVIDED, HOWEVER, that nothing in this
paragraph shall be interpreted as excusing any Grantor from the performance of,
or imposing any obligation on the Collateral Agent or any Secured Party to cure
or perform, any covenants or other promises of any Grantor with respect to
Taxes, assessments, charges, fees, Liens, security interests or other
encumbrances and maintenance as set forth herein or in the other Loan Documents.

          (f) If at any time any Grantor shall take a security interest in any
property of an Account Debtor or any other person to secure payment and
performance of an Account, such Grantor shall promptly assign such security
interest to the Collateral Agent. Such assignment need not be filed of public
record unless necessary to continue the perfected status of the security
interest against creditors of and transferees from the Account Debtor or other
person granting the security interest.

          (g) Each Grantor shall remain liable to observe and perform in all
material respects all the conditions and obligations to be observed and
performed by it under each contract, agreement or instrument relating to the
Article 9 Collateral, all in accordance with the terms and conditions thereof,
and each Grantor jointly and severally agrees to indemnity and hold harmless the
Collateral Agent and the Secured Parties from and against any and all liability
for such performance.

          (h) None of the Grantors shall make or permit to be made an
assignment, pledge or hypothecation of the Article 9 Collateral or shall grant
any other Lien in respect of the Article 9 Collateral, except as expressly
permitted by Section 6.02 of the Credit

<Page>

                                                                              18

Agreement. None of the Grantors shall make or permit to be made any transfer of
the Article 9 Collateral and each Grantor shall remain at all times in
possession or otherwise in control of the Article 9 Collateral owned by it,
except as permitted by Section 6.02 of the Credit Agreement.

          (i) None of the Grantors will, without the Collateral Agent's prior
written consent, grant any extension of the time of payment of any Accounts
included in the Article 9 Collateral, compromise, compound or settle the same
for less than the full amount thereof, release, wholly or partly, any person
liable for the payment thereof or allow any credit or discount whatsoever
thereon, other than extensions, credits, discounts, compromises, compoundings or
settlements granted or made in the ordinary course of business and consistent
with its current practices and in accordance with such standard practice used in
industries that are the same as or similar to those in which such Grantor is
engaged.

          (j) Each Grantor irrevocably makes, constitutes and appoints the
Collateral Agent (and all officers, employees or agents designated by the
Collateral Agent) as such Grantor's true and lawful agent (and attorney-in-fact)
for the purpose, upon the occurrence and during the continuance of an Event of
Default, of making, settling and adjusting claims in respect of Article 9
Collateral under policies of insurance, endorsing the name of such Grantor on
any check, draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and decisions with
respect thereto. In the event that any Grantor at any time or times shall fail
to obtain or maintain any of the policies of insurance required under the Credit
Agreement or to pay any premium in whole or part relating thereto, the
Collateral Agent may, without waiving or releasing any obligation or liability
of the Grantors hereunder or any Event of Default, in its reasonable discretion,
obtain and maintain such policies of insurance and pay such premium and take any
other actions with respect thereto as the Collateral Agent deems advisable. All
sums disbursed by the Collateral Agent in connection with this paragraph,
including reasonable attorneys' fees, court costs, expenses and other charges
relating thereto, shall be payable, upon demand, by the Grantors to the
Collateral Agent and shall be additional Obligations secured hereby.

          (k) Each Grantor shall maintain, in form and manner reasonably
satisfactory to the Collateral Agent, records of its Chattel Paper and its
books, records and documents evidencing or pertaining thereto.

          SECTION 4.04. OTHER ACTIONS. In order to further insure the
attachment, perfection and priority of, and the ability of the Collateral Agent
to enforce, the Collateral Agent's security interest in the Article 9
Collateral, each Grantor agrees, in each case at such Grantor's own expense, to
take the following actions with respect to the following Article 9 Collateral:

               (a) INSTRUMENTS. If any Grantor shall at any time hold or acquire
     any Instruments, such Grantor shall forthwith endorse, assign and deliver
     the same to the Collateral Agent, accompanied by such instruments of
     transfer or assignment duly executed in blank as the Collateral Agent may
     from time to time specify.

<Page>

                                                                              19

               (b) DEPOSIT ACCOUNTS. For each deposit account that any Grantor
     at any time opens or maintains, such Grantor shall, either (i) cause the
     depositary bank to agree to comply at any time with instructions from the
     Collateral Agent to such depositary bank directing the disposition of funds
     from time to time credited to such deposit account, without further consent
     of such Grantor or any other person, pursuant to an agreement in form and
     substance reasonably satisfactory to the Collateral Agent and the Grantor,
     or (ii) arrange for the Collateral Agent to become the customer of the
     depositary bank with respect to the deposit account, with the Grantor being
     permitted, only with the consent of the Collateral Agent, to exercise
     rights to withdraw funds from such deposit account. The Collateral Agent
     agrees with each Grantor that the Collateral Agent shall not give any such
     instructions or withhold any withdrawal rights from any Grantor, unless an
     Event of Default has occurred and is continuing, or, after giving effect to
     any withdrawal would occur. The provisions of this paragraph shall not
     apply to (A) any deposit account for which any Grantor, the depositary bank
     and the Collateral Agent have entered into a cash collateral agreement
     specially negotiated among such Grantor, the depositary bank and the
     Collateral Agent for the specific purpose set forth therein, (B) deposit
     accounts for which the Collateral Agent is the depositary, (C) any deposit
     account opened or maintained by a Grantor other than the Borrower with a
     monthly average daily balance of less than $100,000 and (D) deposit
     accounts for the sole purpose of holding Restricted Cash in connection with
     self-insurance programs.

               (c) INVESTMENT PROPERTY. Except to the extent otherwise provided
     in Article III, if any Grantor shall at any time hold or acquire any
     certificated securities, such Grantor shall forthwith endorse, assign and
     deliver the same to the Collateral Agent, accompanied by such instruments
     of transfer or assignment duly executed in blank as the Collateral Agent
     may from time to time specify. If any securities now or hereafter acquired
     by any Grantor are uncertificated and are issued to such Grantor or its
     nominee directly by the issuer thereof, such Grantor shall immediately
     notify the Collateral Agent thereof and, at the Collateral Agent's request
     and option, pursuant to an agreement in form and substance reasonably
     satisfactory to the Collateral Agent, either (a) cause the issuer to agree
     to comply with instructions from the Collateral Agent as to such
     securities, without further consent of any Grantor or such nominee, or (b)
     arrange for the Collateral Agent to become the registered owner of the
     securities. If any securities, whether certificated or uncertificated, or
     other investment property now or hereafter acquired by any Grantor are held
     by such Grantor or its nominee through a securities intermediary or
     commodity intermediary, such Grantor shall immediately notify the
     Collateral Agent thereof and, at the Collateral Agent's request and option,
     pursuant to an agreement in form and substance reasonably satisfactory to
     the Collateral Agent, either (i) cause such securities intermediary or (as
     the case may be) commodity intermediary to agree to comply with entitlement
     orders or other instructions from the Collateral Agent to such securities
     intermediary as to such securities or other investment property, or (as the
     case may be) to apply any value distributed on account of any commodity
     contract as directed by the Collateral Agent to such commodity
     intermediary, in each case

<Page>

                                                                              20

     without further consent of any Grantor or such nominee, or (ii) in the case
     of "financial assets" (within the meaning of Article 8 of the New York UCC
     and governed by Article 8 of the New York UCC) or other Investment Property
     held through a securities intermediary, arrange for the Collateral Agent to
     become the entitlement holder with respect to such investment property,
     with the Grantor being permitted, only with the consent of the Collateral
     Agent, to exercise rights to withdraw or otherwise deal with such
     investment property. The Collateral Agent agrees with each of the Grantors
     that the Collateral Agent shall not give any such entitlement orders or
     instructions or directions to any such issuer, securities intermediary or
     commodity intermediary, and shall not withhold its consent to the exercise
     of any withdrawal or dealing rights by any Grantor, unless an Event of
     Default has occurred and is continuing, or, after giving effect to any such
     investment and withdrawal rights would occur. The provisions of this
     paragraph shall not apply to any financial assets credited to a securities
     account for which the Collateral Agent is the securities intermediary.

               (d) ELECTRONIC CHATTEL PAPER AND TRANSFERABLE RECORDS. If any
     Grantor at any time holds or acquires an interest in any electronic chattel
     paper or any "TRANSFERABLE RECORD," as that term is defined in Section 201
     of the Federal Electronic Signatures in Global and National Commerce Act,
     or in Section 16 of the Uniform Electronic Transactions Act as in effect in
     any relevant jurisdiction, such Grantor shall promptly notify the
     Collateral Agent thereof and, at the request of the Collateral Agent, shall
     take such action as the Collateral Agent may reasonably request to vest in
     the Collateral Agent control under New York UCC Section 9-105 of such
     electronic chattel paper or control under Section 201 of the Federal
     Electronic Signatures in Global and National Commerce Act or, as the case
     may be, Section 16 of the Uniform Electronic Transactions Act, as so in
     effect in such jurisdiction, of such transferable record. The Collateral
     Agent agrees with such Grantor that the Collateral Agent will arrange,
     pursuant to procedures reasonably satisfactory to the Collateral Agent and
     so long as such procedures will not result in the Collateral Agent's loss
     of control, for the Grantor to make alterations to the electronic chattel
     paper or transferable record permitted under UCC Section 9-105 or, as the
     case may be, Section 201 of the Federal Electronic Signatures in Global and
     National Commerce Act or Section 16 of the Uniform Electronic Transactions
     Act for a party in control to allow without loss of control, unless an
     Event of Default has occurred and is continuing or would occur after taking
     into account any action by such Grantor with respect to such electronic
     chattel paper or transferable record.

               (e) LETTER-OF-CREDIT RIGHTS. If any Grantor is at any time a
     beneficiary under a letter of credit now or hereafter issued in favor of
     such Grantor, such Grantor shall promptly notify the Collateral Agent
     thereof and, at the request and option of the Collateral Agent, such
     Grantor shall, pursuant to an agreement in form and substance satisfactory
     to the Collateral Agent, either (i) arrange for the issuer and any
     confirmer of such letter of credit to consent to an assignment to the
     Collateral Agent of the proceeds of any drawing under the letter of credit
     or (ii) arrange for the Collateral Agent to become the transferee
     beneficiary of the

<Page>

                                                                              21

     letter of credit, with the Collateral Agent agreeing, in each case, that
     the proceeds of any drawing under the letter of credit are to be paid to
     the applicable Grantor unless an Event of Default has occurred or is
     continuing.

               (f) COMMERCIAL TORT CLAIMS. If any Grantor shall at any time hold
     or acquire a commercial tort claim, the Grantor shall promptly notify the
     Collateral Agent thereof in a writing signed by such Grantor including a
     summary description of such claim and grant to the Collateral Agent in such
     writing a security interest therein and in the proceeds thereof, all upon
     the terms of this Agreement, with such writing to be in form and substance
     reasonably satisfactory to the Collateral Agent.

          SECTION 4.05. COVENANTS REGARDING PATENT, TRADEMARK AND COPYRIGHT
COLLATERAL. (a) Each Grantor agrees that it will not, and will not permit any of
its licensees to, do any act, or omit do to any act, whereby any Patent that is
material to the conduct of such Grantor's business could reasonably be expected
to become invalidated or dedicated to the public, and agrees that it shall
continue to mark any products covered by a Patent with the relevant patent
number as necessary and sufficient in its reasonable judgment to establish and
preserve its material rights under applicable patent laws.

          (b) Each Grantor (either itself or through its licensees or its
sublicensees) will, for each Trademark material to the conduct of such Grantor's
business, (i) maintain such Trademark in full force free from any claim of
abandonment or invalidity for non-use, (ii) use commercially reasonable efforts
to maintain the quality of products and services offered under such Trademark,
(iii) display such Trademark with notice of Federal or foreign registration to
the extent necessary and sufficient in its reasonable judgment to establish and
preserve its material rights under applicable law and (iv) not knowingly use or
knowingly permit the use of such Trademark in material violation of any third
party rights.

          (c) Each Grantor (either itself or through its licensees or
sublicensees) will, for each work covered by a material Copyright, continue to
publish, reproduce, display, adopt and distribute the work with appropriate
copyright notice as necessary and sufficient in its reasonable judgment to
establish and preserve its material rights under applicable copyright laws.

          (d) Each Grantor shall notify the Collateral Agent promptly if it
knows or becomes aware that any Patent, Trademark or Copyright material to the
conduct of its business could reasonably be expected to become abandoned, lost
or dedicated to the public, or of any materially adverse determination or
development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office,
United States Copyright Office or any court or similar office of any country)
regarding such Grantor's ownership of any Patent, Trademark or Copyright, its
right to register the same, or its right to keep and maintain the same.

<Page>

                                                                              22

          (e) In no event shall any Grantor, either itself or through any agent,
employee, licensee or designee, file an application for any Patent, Trademark or
Copyright (or for the registration of any Trademark or Copyright) with the
United States Patent and Trademark Office, United States Copyright Office or any
office or agency in any political subdivision of the United States or in any
other country or any political subdivision thereof, unless it promptly informs
the Collateral Agent, and, upon request of the Collateral Agent, executes and
delivers any and all agreements, instruments, documents and papers as the
Collateral Agent may reasonably request to evidence the Collateral Agent's
security interest in such Patent, Trademark or Copyright, and each Grantor
hereby appoints the Collateral Agent as its attorney-in-fact to execute and file
such as reasonably necessary writings for the foregoing purposes, all acts of
such attorney being hereby ratified and confirmed; such power, being coupled
with an interest, is irrevocable.

          (f) Each Grantor will take all necessary steps that it deems
appropriate under the circumstances and are consistent with the practice in any
proceeding before the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the
United States or in any other country or any political subdivision thereof, to
maintain and pursue each material application relating to the Patents,
Trademarks and/or Copyrights (and to obtain the relevant grant or registration)
and to maintain each issued Patent and each registration of the Trademarks and
Copyrights that is material to the conduct of any Grantor's business, including
timely filings of applications for renewal, affidavits of use, affidavits of
incontestability and payment of maintenance fees, and, if consistent with good
business judgment, to initiate opposition, interference and cancelation
proceedings against third parties.

          (g) In the event that any Grantor knows or becomes aware that any
Article 9 Collateral consisting of a Patent, Trademark or Copyright material to
the conduct of any Grantor's business has been or is about to be infringed,
misappropriated or diluted by a third party, such Grantor promptly shall notify
the Collateral Agent and shall, if consistent with good business judgment,
promptly sue for infringement, misappropriation or dilution and to recover any
and all damages for such infringement, misappropriation or dilution, and take
such other actions as are appropriate under the circumstances to protect such
Article 9 Collateral. Such Grantor may discontinue or settle any such suit or
other action if the Grantor deems such discontinuance or settlement to be
appropriate in its reasonable business judgment.

          (h) Upon the occurrence and during the continuance of an Event of
Default, each Grantor shall, at the request of the Collateral Agent, use its
commercially reasonable efforts to obtain all requisite consents or approvals by
the licensor of each Copyright License, Patent License or Trademark License to
effect the assignment of all such Grantor's right, title and interest thereunder
to the Collateral Agent or its designee.

<Page>

                                                                              23

                                    ARTICLE V

                                    REMEDIES

          SECTION 5.01. REMEDIES UPON DEFAULT. Upon the occurrence and during
the continuance of an Event of Default, each Grantor agrees to deliver each item
of Collateral to the Collateral Agent on demand, and it is agreed that the
Collateral Agent shall have the right to take any of or all the following
actions at the same or different times: (a) with respect to any Article 9
Collateral consisting of Intellectual Property, on demand, to cause the Security
Interest to become an assignment, transfer and conveyance of any of or all such
Article 9 Collateral by the applicable Grantors to the Collateral Agent, or to
license or sublicense, whether general, special or otherwise, and whether on an
exclusive or nonexclusive basis, any such Article 9 Collateral throughout the
world on such terms and conditions and in such manner as the Collateral Agent
shall determine (other than in violation of any then-existing licensing
arrangements to the extent that waivers cannot be obtained), and (b) with or
without legal process and with or without prior notice or demand for
performance, to take possession of the Article 9 Collateral and without
liability for trespass to enter any premises where the Article 9 Collateral may
be located for the purpose of taking possession of or removing the Article 9
Collateral and, generally, to exercise any and all rights afforded to a secured
party under the Uniform Commercial Code or other applicable law. Without
limiting the generality of the foregoing, each Grantor agrees that the
Collateral Agent shall have the right, subject to the mandatory requirements of
applicable law, to sell or otherwise dispose of all or any part of the
Collateral at a public or private sale or at any broker's board or on any
securities exchange, for cash, upon credit or for future delivery as the
Collateral Agent shall deem appropriate. The Collateral Agent shall be
authorized at any such sale (if it deems it advisable to do so) to restrict the
prospective bidders or purchasers to persons who will represent and agree that
they are purchasing the Collateral for their own account for investment and not
with a view to the distribution or sale thereof, and upon consummation of any
such sale the Collateral Agent shall have the right to assign, transfer and
deliver to the purchaser or purchasers thereof the Collateral so sold. Each such
purchaser at any such sale shall hold the property sold absolutely, free from
any claim or right on the part of any Grantor, and the Grantors hereby waive (to
the extent permitted by law) all rights of redemption, stay and appraisal which
such Grantor now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted.

          The Collateral Agent shall give the applicable Grantors 10 days'
written notice (which each Grantor agrees is reasonable notice within the
meaning of Section 9-611 of the New York UCC or its equivalent in other
jurisdictions) of the Collateral Agent's intention to make any sale of
Collateral. Such notice, in the case of a public sale, shall state the time and
place for such sale and, in the case of a sale at a broker's board or on a
securities exchange, shall state the board or exchange at which such sale is to
be made and the day on which the Collateral, or portion thereof, will first be
offered for sale at such board or exchange. Any such public sale shall be held
at such time or times within ordinary business hours and at such place or places
as the Collateral Agent may fix and state in the notice (if any) of such sale.
At any such sale, the

<Page>

                                                                              24

Collateral, or portion thereof, to be sold may be sold in one lot as an entirety
or in separate parcels, as the Collateral Agent may (in its sole and absolute
discretion) determine. The Collateral Agent shall not be obligated to make any
sale of any Collateral if it shall determine not to do so, regardless of the
fact that notice of sale of such Collateral shall have been given. The
Collateral Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement
at the time and place fixed for sale, and such sale may, without further notice,
be made at the time and place to which the same was so adjourned. In case any
sale of all or any part of the Collateral is made on credit or for future
delivery, the Collateral so sold may be retained by the Collateral Agent until
the sale price is paid by the purchaser or purchasers thereof, but the
Collateral Agent shall not incur any liability in case any such purchaser or
purchasers shall fail to take up and pay for the Collateral so sold and, in case
of any such failure, such Collateral may be sold again upon like notice. At any
public (or, to the extent permitted by law, private) sale made pursuant to this
Section, any Secured Party may bid for or purchase, free (to the extent
permitted by law) from any right of redemption, stay, valuation or appraisal on
the part of any Grantor (all said rights being also hereby waived and released
to the extent permitted by law), the Collateral or any part thereof offered for
sale and may make payment on account thereof by using any claim then due and
payable to such Secured Party from any Grantor as a credit against the purchase
price, and such Secured Party may, upon compliance with the terms of sale, hold,
retain and dispose of such property without further accountability to any
Grantor therefor. For purposes hereof, a written agreement to purchase the
Collateral or any portion thereof shall be treated as a sale thereof; the
Collateral Agent shall be free to carry out such sale pursuant to such agreement
and no Grantor shall be entitled to the return of the Collateral or any portion
thereof subject thereto, notwithstanding the fact that after the Collateral
Agent shall have entered into such an agreement all Events of Default shall have
been remedied and the Obligations paid in full. As an alternative to exercising
the power of sale herein conferred upon it, the Collateral Agent may proceed by
a suit or suits at law or in equity to foreclose this Agreement and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court or
courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver. Any sale pursuant to the provisions of this Section
5.01 shall be deemed to conform to the commercially reasonable standards as
provided in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

          SECTION 5.02. APPLICATION OF PROCEEDS. The Collateral Agent shall
apply the proceeds of any collection, sale, foreclosure or other realization
upon any Collateral, including any Collateral consisting of cash, as follows:

          FIRST, to the payment of all costs and expenses incurred by the
     Administrative Agent or the Collateral Agent (in their capacity as such
     hereunder or under any other Loan Document) in connection with such
     collection, sale, foreclosure or realization or otherwise in connection
     with this Agreement, any other Loan Document or any of the Obligations,
     including all court costs and the fees and expenses of its agents and legal
     counsel, the repayment of all advances made by the Administrative Agent
     hereunder or under any other Loan Document

<Page>

                                                                              25

     on behalf of any Grantor and any other costs or expenses incurred in
     connection with the exercise of any right or remedy hereunder or under any
     other Loan Document;

          SECOND, to the payment in full of the Obligations (the amounts so
     applied to be distributed among the Secured Parties pro rata in accordance
     with the amounts of the Obligations owed to them on the date of any such
     distribution); and

          THIRD, to the Grantors, their successors or assigns, or as a court of
     competent jurisdiction may otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this
Agreement. Upon any sale of Collateral by the Collateral Agent (including
pursuant to a power of sale granted by statute or under a judicial proceeding),
the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent
or such officer or be answerable in any way for the misapplication thereof.

          SECTION 5.03. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY. For the
purpose of enabling the Collateral Agent to exercise rights and remedies under
this Article at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the Collateral
Agent an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to the Grantors) to use, license or sublicense any
of the Article 9 Collateral consisting of Intellectual Property now owned or
hereafter acquired by such Grantor, and wherever the same may be located, and
including in such license reasonable access to all media in which any of the
licensed items may be recorded or stored and to all computer software and
programs used for the compilation or printout thereof. The use of such license
by the Collateral Agent shall be exercised, at the option of the Collateral
Agent, only upon the occurrence and during the continuation of an Event of
Default; PROVIDED that any license, sublicense or other transaction entered into
by the Collateral Agent in accordance herewith shall be binding upon the
Grantors notwithstanding any subsequent cure of an Event of Default.

          SECTION 5.04. SECURITIES ACT, ETC. In view of the position of the
Grantors in relation to the Pledged Collateral, or because of other current or
future circumstances, a question may arise under the Securities Act of 1933, as
now or hereafter in effect, or any similar statute hereafter enacted analogous
in purpose or effect (such Act and any such similar statute as from time to time
in effect being called the "FEDERAL SECURITIES LAWS") with respect to any
disposition of the Pledged Collateral permitted hereunder. Each Grantor
understands that compliance with the Federal Securities Laws might very strictly
limit the course of conduct of the Collateral Agent if the Collateral Agent were
to attempt to dispose of all or any part of the Pledged Collateral, and might
also limit the extent to which or the manner in which any subsequent transferee
of any

<Page>

                                                                              26

Pledged Collateral could dispose of the same. Similarly, there may be other
legal restrictions or limitations affecting the Collateral Agent in any attempt
to dispose of all or part of the Pledged Collateral under applicable Blue Sky or
other state securities laws or similar laws analogous in purpose or effect. Each
Grantor recognizes that in light of such restrictions and limitations the
Collateral Agent may, with respect to any sale of the Pledged Collateral, limit
the purchasers to those who will agree, among other things, to acquire such
Pledged Collateral for their own account, for investment, and not with a view to
the distribution or resale thereof. Each Grantor acknowledges and agrees that in
light of such restrictions and limitations, the Collateral Agent, in its sole
and absolute discretion (a) may proceed to make such a sale whether or not a
registration statement for the purpose of registering such Pledged Collateral or
part thereof shall have been filed under the Federal Securities Laws and (b) may
approach and negotiate with a single potential purchaser to effect such sale.
Each Grantor acknowledges and agrees that any such sale might result in prices
and other terms less favorable to the seller than if such sale were a public
sale without such restrictions. In the event of any such sale, the Collateral
Agent shall incur no responsibility or liability for selling all or any part of
the Pledged Collateral at a price that the Collateral Agent, in its sole and
absolute discretion, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might have
been realized if the sale were deferred until after registration as aforesaid or
if more than a single purchaser were approached. The provisions of this Section
5.04 will apply notwithstanding the existence of a public or private market upon
which the quotations or sales prices may exceed substantially the price at which
the Collateral Agent sells.

                                   ARTICLE VI

                    INDEMNITY, SUBROGATION AND SUBORDINATION

          SECTION 6.01. INDEMNITY AND SUBROGATION. In addition to all such
rights of indemnity and subrogation as the Guarantors may have under applicable
law (but subject to Section 6.03), the Borrower agrees that (a) in the event a
payment shall be made by any Guarantor under this Agreement, the Borrower shall
indemnify such Guarantor for the full amount of such payment and such Guarantor
shall be subrogated to the rights of the person to whom such payment shall have
been made to the extent of such payment and (b) in the event any assets of any
Guarantor shall be sold pursuant to this Agreement or any other Security
Document to satisfy in whole or in part a claim of any Secured Party, the
Borrower shall indemnify such Guarantor in an amount equal to the greater of the
book value or the fair market value of the assets so sold.

          SECTION 6.02. CONTRIBUTION AND SUBROGATION. Each Guarantor (a
"CONTRIBUTING GUARANTOR" agrees (subject to Section 6.03) that, in the event a
payment shall be made by any other Guarantor hereunder in respect of any
Obligation or assets of any other Guarantor shall be sold pursuant to any
Security Document to satisfy any Obligation owed to any Secured Party and such
other Guarantor (the "CLAIMING GUARANTOR") shall not have been fully indemnified
by the Borrower as provided in Section 6.01, the Contributing Guarantor shall
indemnify the Claiming Guarantor in an amount equal to the amount of such
payment or the greater of the book value or the fair

<Page>

                                                                              27

market value of such assets, as the case may be, in each case multiplied by a
fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any Guarantor
becoming a party hereto pursuant to Section 7.16, the date of the Supplement
hereto executed and delivered by such Guarantor). Any Contributing Guarantor
making any payment to a Claiming Guarantor pursuant to this Section 6.02 shall
be subrogated to the rights of such Claiming Guarantor under Section 6.01 to the
extent of such payment.

          SECTION 6.03. SUBORDINATION. (a) Notwithstanding any provision of this
Agreement to the contrary, all rights of the Guarantors under Sections 6.01 and
6.02 and all other rights of indemnity, contribution or subrogation under
applicable law or otherwise shall be fully subordinated to the indefeasible
payment in full in cash of the Obligations. No failure on the part of the
Borrower or any Guarantor to make the payments required by Sections 6.01 and
6.02 (or any other payments required under applicable law or otherwise) shall in
any respect limit the obligations and liabilities of any Guarantor with respect
to its obligations hereunder, and each Guarantor shall remain liable for the
full amount of the obligations of such Guarantor hereunder.

          (b) Each of the Borrower and the Subsidiary Guarantors hereby agrees
that all Indebtedness and other monetary obligations owed by it to the Borrower
or any Subsidiary shall be fully subordinated to the indefeasible payment in
full in cash of the Obligations.

                                   ARTICLE VII

                                  MISCELLANEOUS

          SECTION 7.01. NOTICES. All communications and notices hereunder shall
(except as otherwise expressly permitted herein) be in writing and given as
provided in Section 9.01 of the Credit Agreement. All communications and notices
hereunder to any Subsidiary Guarantor shall be given to it in care of the
Borrower as provided in Section 9.01 of the Credit Agreement.

          SECTION 7.02. SECURITY INTEREST ABSOLUTE. All rights of the Collateral
Agent hereunder, the Security Interest, the grant of a security interest in the
Pledged Collateral and all obligations of each Grantor hereunder shall be
absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement
with respect to any of the Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or place of
payment of, or in any other term of, all or any of the Obligations, or any other
amendment or waiver of or any consent to any departure from the Credit
Agreement, any other Loan Document or any other agreement or instrument, (c) any
exchange, release or non-perfection of any Lien on other collateral, or any
release or amendment or waiver of or consent under or departure from any
guarantee, securing or guaranteeing all or any of the Obligations, or (d) any
other circumstance that

<Page>

                                                                              28

might otherwise constitute a defense available to, or a discharge of, any
Grantor in respect of the Obligations or this Agreement.

          SECTION 7.03. SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents
and in the certificates or other instruments prepared or delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Collateral Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended under the Credit Agreement, 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 any Loan Document is outstanding and
unpaid or the Aggregate L/C Exposure does not equal zero and so long as the
Commitments have not expired or terminated.

          SECTION 7.04. BINDING EFFECT; SEVERAL AGREEMENT. This Agreement shall
become effective as to any Loan Party when a counterpart hereof executed on
behalf of such Loan Party shall have been delivered to the Collateral Agent and
a counterpart hereof shall have been executed on behalf of the Collateral Agent,
and thereafter shall be binding upon such Loan Party and the Collateral Agent
and their respective permitted successors and assigns, and shall inure to the
benefit of such Loan Party, the Collateral Agent and the other Secured Parties
and their respective successors and assigns, except that no Loan Party shall
have the right to assign or transfer its rights or obligations hereunder or any
interest herein or in the Collateral (and any such assignment or transfer shall
be void) except as expressly contemplated by this Agreement or the Credit
Agreement. This Agreement shall be construed as a separate agreement with
respect to each Loan Party and may be amended, modified, supplemented, waived or
released with respect to any Loan Party without the approval of any other Loan
Party and without affecting the obligations of any other Loan Party hereunder.

          SECTION 7.05. SUCCESSORS AND ASSIGNS. Whenever in this Agreement any
of the parties hereto is referred to, such reference shall be deemed to include
the permitted successors and assigns of such party; and all covenants, promises
and agreements by or on behalf of any Grantor or the Collateral Agent that are
contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.

          SECTION 7.06. COLLATERAL AGENT'S FEES AND EXPENSES; INDEMNIFICATION.
(a) The parties hereto agree that the Collateral Agent shall be entitled to
reimbursement of its expense incurred hereunder as provided in Section 9.05 of
the Credit Agreement.

          (b) Without limitation of its indemnification obligations under the
other Loan Documents, each Grantor jointly and severally agrees to indemnify the
Collateral Agent and the other Indemnitees (as defined in Section 9.05 of the
Credit Agreement)

<Page>

                                                                              29

against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related out of pocket expenses, including the
reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in any way
connected with, or as a result of, the execution, delivery or performance of
this Agreement or any agreement or instrument contemplated hereby or any claim,
litigation, investigation or proceeding relating to any of the foregoing
agreement or instrument contemplated hereby or thereby, or to the Collateral,
whether or not any Indemnitee is a party thereto; PROVIDED that such indemnity
shall not, as to any Indemnitee, be available to the 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 wilful misconduct of such Indemnitee.

          (c) Any such amounts payable as provided hereunder shall be additional
Obligations secured hereby and by the other Security Documents. The provisions
of this Section 7.06 shall remain operative and in full force and effect
regardless of the termination of this Agreement or any other Loan Document, the
consummation of the transactions contemplated hereby, the repayment of any of
the Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on
behalf of the Collateral Agent or any other Secured Party. All amounts due under
this Section 7.06 shall be payable on written demand therefor and shall bear
interest at the rate specified in Section 2.06 of the Credit Agreement.

          SECTION 7.07. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT. Each
Grantor hereby appoints the Collateral Agent the attorney-in-fact of such
Grantor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment
is irrevocable and coupled with an interest. Without limiting the generality of
the foregoing, the Collateral Agent shall have the right, upon the occurrence
and during the continuance of an Event of Default, with full power of
substitution either in the Collateral Agent's name or in the name of such
Grantor (a) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating
to the Collateral or any part thereof; (b) to demand, collect, receive payment
of, give receipt for and give discharges and releases of all or any of the
Collateral; (c) to sign the name of any Grantor on any invoice or bill of lading
relating to any of the Collateral; (d) to send verifications of Accounts
Receivable to any Account Debtor; (e) to commence and prosecute any and all
suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Collateral or
to enforce any rights in respect of any Collateral; (f) to settle, compromise,
compound, adjust or defend any actions, suits or proceedings relating to all or
any of the Collateral; (g) to notify, or to require any Grantor to notify,
Account Debtors to make payment directly to the Collateral Agent; and (h) to
use, sell, assign, transfer, pledge, make any agreement with respect to or
otherwise deal with all or any of the Collateral, and to do all other acts and
things necessary to carry out the purposes of this Agreement, as fully and
completely as though the Collateral Agent were the absolute owner of the
Collateral for all purposes; PROVIDED,

<Page>

                                                                              30

that nothing herein contained shall be construed as requiring or obligating the
Collateral Agent to make any commitment or to make any inquiry as to the nature
or sufficiency of any payment received by the Collateral Agent, or to present or
file any claim or notice, or to take any action with respect to the Collateral
or any part thereof or the moneys due or to become due in respect thereof or any
property covered thereby. The Collateral Agent and the other Secured Parties
shall be accountable only for amounts actually received as a result of the
exercise of the powers granted to them herein, and neither they nor their
officers, directors, employees or agents shall be responsible to any Grantor for
any act or failure to act hereunder, except for their own gross negligence or
wilful misconduct.

          SECTION 7.08. APPLICABLE LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION 7.09. WAIVERS; AMENDMENT. (a) No failure or delay by the
Collateral Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder or under any other Loan Document 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 Collateral Agent, the Issuing
Bank and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Loan Document or consent to any departure by
any Loan Party 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 or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Collateral Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time. No notice or
demand on any Loan Party in any case shall entitle any Loan Party to any other
or further notice or demand in similar or other circumstances.

          (b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Collateral Agent and the Loan Party or Loan Parties with
respect to which such waiver, amendment or modification is to apply, subject to
any consent required in accordance with Section 9.08 of the Credit Agreement.

          SECTION 7.10. 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 RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY

<Page>

                                                                              31

WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10.

          SECTION 7.11. SEVERABILITY. In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision in a particular jurisdiction shall not
in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

          SECTION 7.12. COUNTERPARTS. 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, and shall become effective as provided in Section
7.04. Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.

          SECTION 7.13. 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 are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

          SECTION 7.14. JURISDICTION; CONSENT TO SERVICE OF PROCESS. (a) Each of
the parties hereto hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court
or Federal court of the United States of America, sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of
or relating to this Agreement or any other Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto 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 or any other Loan Document shall
affect any right that the Collateral Agent, the Issuing Bank, any Lender or any
Loan Party may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document in the courts of any jurisdiction.

<Page>

                                                                              32

          (b) Each of the parties hereto 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 or any other
Loan Document in any court referred to in paragraph (a) 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.

          (c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 7.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

          SECTION 7.15. TERMINATION OR RELEASE. (a) This Agreement, the
Guarantees, the Security Interest and all other security interests granted
hereby shall terminate when all the Loan Document Obligations (other than wholly
contingent indemnification obligations) then due and owing have been
indefeasibly paid in full and the Lenders have no further commitment to lend
under the Credit Agreement, the Aggregate L/C Exposure has been reduced to zero
and the Issuing Bank has no further obligations to issue Letters of Credit under
the Credit Agreement.

          (b) A Subsidiary Guarantor shall automatically be released from its
obligations hereunder and the Security Interest in the Collateral of such
Subsidiary Guarantor shall be automatically released upon the consummation of
any transaction permitted by the Credit Agreement as a result of which such
Subsidiary Guarantor ceases to be a Subsidiary of the Borrower.

          (c) Upon any sale or other transfer by any Grantor of any Collateral
that is permitted under the Credit Agreement to any person that is not the
Borrower or a Guarantor, or, upon the effectiveness of any written consent to
the release of the security interest granted hereby in any Collateral pursuant
to Section 9.08 of the Credit Agreement, the security interest in such
Collateral shall be automatically released.

          (d) All cash and Permitted Investments on deposit in the Contingent
Note Reserve shall be released from the Liens created hereunder, in each case
without representation, warranty or recourse of any nature in accordance with
the provisions of (and subject to the satisfaction of the conditions precedent
specified in) Section 9.17 of the Credit Agreement.

          (e) In connection with any termination or release pursuant to
paragraph (a), (b), (c) or (d) the Collateral Agent shall execute and deliver to
any Grantor, at such Grantor's expense, all documents that such Grantor shall
reasonably request to evidence such termination or release. Any execution and
delivery of documents pursuant to this Section 7.15 shall be without recourse to
or warranty by the Collateral Agent. Without limiting the provisions of Section
7.06, the Borrower shall reimburse the Collateral Agent upon demand for all
costs and out of pocket expenses, including the

<Page>

                                                                              33

fees, charges and disbursements of counsel, incurred by it in connection with
any action contemplated by this Section 7.15.

          SECTION 7.16. ADDITIONAL GRANTORS. Pursuant to Section 5.09 of the
Credit Agreement, each Domestic Subsidiary (other than a Consolidated Practice)
of a Loan Party that was not in existence or not a Subsidiary on the date of the
Credit Agreement is required to enter in this Agreement as a Subsidiary
Guarantor upon becoming such a Subsidiary. Upon execution and delivery by the
Collateral Agent and a Domestic Subsidiary of an instrument in the form of
Exhibit I hereto, such Domestic Subsidiary shall become a Subsidiary Guarantor
hereunder with the same force and effect as if originally named as a Subsidiary
Guarantor herein. The execution and delivery of any such instrument shall not
require the consent of any other Loan Party hereunder. The rights and
obligations of each Subsidiary Guarantor hereunder shall remain in full force
and effect notwithstanding the addition of any new Loan Party as a party to this
Agreement.

          SECTION 7.17. 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 obligations at any time owing by such Lender to or
for the credit or the account of any Grantor against any of and all the
obligations of such Grantor now or hereafter existing under this Agreement held
by such Lender. 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.

<Page>

          IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       AMERIPATH, INC.,

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name: Gregory A. Marsh
                                            Title: Chief Financial Officer

                                       AMERIPATH HOLDINGS, INC.,

                                         by:
                                            ----------------------------
                                            Name:
                                            Title:

                                       3-GEN DIAGNOSTIC LABORATORIES, INC.
                                       (a Utah corporation)
                                       AMERIPATH 5.01 (A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH CARROLLTON, INC.
                                       (a Georgia corporation)
                                       AMERIPATH CINCINNATI, INC.
                                       (an Ohio corporation)
                                       AMERIPATH CLEVELAND, INC.
                                       (an Ohio corporation)
                                       AMERIPATH CONSOLIDATED LABS, INC.
                                       (a Florida corporation)
                                       AMERIPATH FLORIDA, INC.
                                       (a Florida corporation)
                                       AMERIPATH KENTUCKY, INC.
                                       (a Kentucky corporation)
                                       AMERIPATH LUBBOCK 5.01(A)
                                       CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH MARKETING USA, INC.
                                       (a Florida corporation)
                                       AMERIPATH MICHIGAN, INC.
                                       (a Michigan corporation)
                                       AMERIPATH MISSISSIPPI, INC.
                                       (a Mississippi corporation)

<Page>

          IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       AMERIPATH, INC.,

                                         by:
                                            ----------------------------
                                            Name:
                                            Title:

                                       AMERIPATH HOLDINGS, INC.,

                                         by: /s/ D. Scott Mackesy
                                            ----------------------------
                                            Name: D. Scott Mackesy
                                            Title: Vice President

                                       3-GEN DIAGNOSTIC LABORATORIES, INC.
                                       (a Utah corporation)
                                       AMERIPATH 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH CARROLLTON, INC.
                                       (a Georgia corporation)
                                       AMERIPATH CINCINNATI, INC.
                                       (an Ohio corporation)
                                       AMERIPATH CLEVELAND, INC.
                                       (an Ohio corporation)
                                       AMERIPATH CONSOLIDATED LABS, INC.
                                       (a Florida corporation)
                                       AMERIPATH FLORIDA, INC.
                                       (a Florida corporation)
                                       AMERIPATH KENTUCKY, INC.
                                       (a Kentucky corporation)
                                       AMERIPATH LUBBOCK 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH MARKETING USA, INC.
                                       (a Florida corporation)
                                       AMERIPATH MICHIGAN, INC.
                                       (a Michigan corporation)
                                       AMERIPATH MISSISSIPPI, INC.
                                       (a Mississippi corporation)

<Page>

                                       AMERIPATH NEW ENGLAND, INC.
                                       (a Delaware corporation)

                                       AMERIPATH NEW YORK, INC.
                                       (a Delaware corporation)
                                       AMERIPATH NORTH CAROLINA, INC.
                                       (a North Carolina corporation)
                                       AMERIPATH OHIO, INC.
                                       (a Delaware corporation)
                                       AMERIPATH PAT 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH PCC, INC.
                                       (an Ohio corporation)
                                       AMERIPATH PENNSYLVANIA, INC.
                                       (a Pennsylvania corporation)
                                       AMERIPATH PHILADELPHIA, INC.
                                       (a New Jersey corporation)
                                       AMERIPATH SC, INC.
                                       (a South Carolina corporation)
                                       AMERIPATH SEVERANCE 5.01(A)
                                       CORPORATION
                                       (a Texas not-for-profit corporation)
                                       AMERIPATH, WISCONSIN, INC.
                                       (a Wisconsin corporation)
                                       AMERIPATH YOUNGSTOWN LABS, INC.
                                       (an Ohio corporation)
                                       AMERIPATH YOUNGSTOWN, INC.
                                       (an Ohio corporation)
                                       ANATOMIC PATHOLOGY SERVICES, INC.
                                       (an Oklahoma corporation)
                                       ARIZONA PATHOLOGY GROUP, INC.
                                       (an Arizona corporation)
                                       ARLINGTON PATHOLOGY ASSOCIATION
                                       5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       BEN F. MARTIN, M.D., F.C.A.P., INC.
                                       (a Mississippi corporation)
                                       CALIFORNIA PATHOLOGY CONSULTANTS
                                       OF AMERICA, INC.
                                       (a Tennessee corporation)

<Page>

                                       CPA I, INC.
                                       (a Tennessee corporation)
                                       CPA II, INC.
                                       (a Tennessee corporation)
                                       DERMATOPATHOLOGY SERVICES, INC.
                                       (an Alabama corporation)
                                       DERMPATH, INC.
                                       (a Delaware corporation)
                                       DFW 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       DIAGNOSTIC PATHOLOGY MANAGEMENT
                                       SERVICES, INC.
                                       (an Oklahoma corporation)
                                       GEORGIA PATHOLOGY CONSULTANTS OF
                                       AMERICA, INC.
                                       (a Tennessee corporation)
                                       J. DAVID SMITH, M.D., INC.
                                       (a Georgia corporation)
                                       JOHN H. PARKER, JR., M.D., F.C.A.P., INC.
                                       (a Mississippi corporation)
                                       KAILASH B. SHARMA, M.D., INC.
                                       (a Georgia corporation)
                                       KATHARINE LIU, M.D., INC.
                                       (a Georgia corporation)
                                       NAPA 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       OCMULGEE MEDICAL PATHOLOGY
                                       ASSOCIATION, INC.
                                       (a Georgia corporation)
                                       O'QUINN MEDICAL PATHOLOGY
                                       ASSOCIATION, INC.
                                       (a Georgia corporation)
                                       PATHOLOGY AFFILIATED SERVICES, INC.
                                       (a Texas corporation)
                                       PATHOLOGY CONSULTANTS OF
                                       AMERICA, INC.
                                       (a Tennessee corporation)
                                       PATHSOURCE, INC.
                                       (a Delaware corporation)

<Page>

                                       PCA OF COLUMBUS, INC.
                                       (a Tennessee corporation)

                                       PCA OF DENVER, INC.
                                       (a Tennessee corporation)

                                       PCA OF LOS GATOS, INC.
                                       (a Tennessee corporation)

                                       PCA OF MEMPHIS, INC.
                                       (a Tennessee corporation)

                                       PCA OF NASHVILLE, INC.
                                       (a Tennessee corporation)

                                       PCA OF ST. LOUIS II, INC.
                                       (a Tennessee corporation)

                                       PCA SOUTHEAST II, INC.
                                       (a Tennessee corporation)

                                       PCA/APR ACQUISITION CORP.
                                       (a Tennessee corporation)
                                       PETER G. KLACSMANN, M.D., INC.
                                       (a Georgia corporation)
                                       SHARON G. DASPIT, M.D., INC.
                                       (a Georgia corporation)
                                       SHOALS PATHOLOGY ASSOCIATES, INC.
                                       (an Alabama corporation)
                                       SIMPSON PATHOLOGY 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)
                                       STRIGEN, INC.
                                       (a Utah corporation)
                                       TID ACQUISITION CORP.
                                       (a Delaware corporation)
                                       TXAR 5.01(A) CORPORATION
                                       (a Texas not-for-profit corporation)

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Vice President

<Page>

                                       ROCKY MOUNTAIN PATHOLOGY, L.L.C.

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Manager

                                       AMERIPATH, LLC

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Manager

                                       API NO.2, LLC

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Manager

                                       AMERIPATH INDIANA, LLC

                                         by: AMERIPATH, INC.
                                             (as Managing Member)

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Chief Financial Officer

<Page>

                                       COLUMBUS PATHOLOGY ASSOCIATES

                                         by: CPA I, INC.
                                             (as General Partner)

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Vice President

                                       NUCLEAR MEDICINE AND PATHOLOGY
                                       ASSOCIATES

                                         by: SHARON G. DASPIT, M.D., INC.
                                             (as General Partner)

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Vice President

                                       AMERIPATH TEXAS, LP

                                         by: AMERIPATH, LLC
                                             (as General Partner)

                                         by: /s/ Gregory A. Marsh
                                            ----------------------------
                                            Name:  Gregory A. Marsh
                                            Title: Manager

<Page>

                                       CREDIT SUISSE FIRST BOSTON, AS
                                       COLLATERAL AGENT,

                                         by:
                                            ----------------------------
                                            Name:
                                            Title:

                                         by:
                                            ----------------------------
                                            Name:
                                            Title:

<Page>

                                       CREDIT SUISSE FIRST BOSTON, AS
                                       COLLATERAL AGENT,

                                         by: /s/ JOSEPH ADIPIETRO
                                            ----------------------------
                                            Name: JOSEPH ADIPIETRO
                                            Title:    DIRECTOR

                                         by: /s/ JULIA P. KINGSBURY
                                            ----------------------------
                                            Name: JULIA P. KINGSBURY
                                            Title: VICE PRESIDENT<Page>

                                                                    EXHIBIT 10.8

                  AMERIPATH HOLDINGS, INC. AND ITS SUBSIDIARIES
              2003 STOCK OPTION AND RESTRICTED STOCK PURCHASE PLAN

          Section 1. PURPOSE. The purpose of the AmeriPath Holdings, Inc. and
its Subsidiaries 2003 Stock Option and Restricted Stock Purchase Plan (the
"PLAN") is to promote the interests of AmeriPath Holdings, Inc., a Delaware
corporation (the "COMPANY"), and its Subsidiaries and the interests of the
Company's stockholders by providing an opportunity to selected employees and
other persons providing services for the Company or any Subsidiary thereof as of
the date of the adoption of the Plan or at any time thereafter to purchase
Common Stock of the Company. By encouraging such stock ownership, the Company
seeks to attract, retain and motivate such employees and other persons and to
encourage such employees and other persons to devote their best efforts to the
business and financial success of the Company and its Subsidiaries. It is
intended that this purpose will be effected by the granting of "non-qualified
stock options" and/or "incentive stock options" to acquire the Common Stock of
the Company and/or by the granting of rights to purchase the Common Stock of the
Company on a "restricted stock" basis. Under the Plan, the Administrator (as
hereinafter defined) shall have the authority (in its sole discretion) to grant
"incentive stock options" within the meaning of Section 422(b) of the Code (as
hereinafter defined), "non-qualified stock options" as described in Treasury
Regulation Section 1.83-7 or any successor regulation thereto, or "restricted
stock" awards.

          Section 2. DEFINITIONS. For purposes of the Plan, the following terms
used herein shall have the following meanings, unless a different meaning is
clearly required by the context:

          2.1.    "ADMINISTRATOR" or "COMMITTEE" shall mean the committee or
committees of the Board of Directors referred to in Section 5 hereof; PROVIDED,
that if no such committee or committees are appointed by the Board of Directors,
the Administrator and the Committee shall be the Board of Directors and the
Board of Directors shall have all of the authority and obligations of the
Administrator and Committee under the Plan.

          2.2.    "AWARD" shall mean an award of the right to purchase Common
Stock granted under the provisions of Section 7 of the Plan.

          2.3.    "BOARD OF DIRECTORS" shall mean the Board of Directors of the
Company.

          2.4     "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

          2.5.    "COMMON STOCK" shall mean the Common Stock, $.01 par value, of
the Company.

          2.6.    "EMPLOYEE" shall mean (i) with respect to an ISO, any person,
including, without limitation, an officer of the Company, who, at the time an
ISO is granted to such person hereunder, is employed by the Company or any
Parent or Subsidiary of the Company, and (ii) with respect to a Non-Qualified
Option and/or an Award, any person employed by, or

<Page>

performing services for, the Company or any Parent or Subsidiary of the Company,
including, without limitation, officers, directors and consultants.

          2.7.    "ISO" shall mean an Option granted to a Participant pursuant
to the Plan that constitutes and shall be treated as an "incentive stock option"
as defined in Section 422(b) of the Code.

          2.8.    "NON-QUALIFIED OPTION" shall mean an Option granted to a
Participant pursuant to the Plan that is intended to be, and qualifies as, a
"non-qualified stock option" as described in Treasury Regulation Section 1.83-7
or any successor regulation thereto and that shall not constitute or be treated
as an ISO.

          2.9.    "OPTION" shall mean any ISO or Non-Qualified Option granted to
a Participant pursuant to the Plan.

          2.10.   "PARTICIPANT" shall mean any Employee to whom an Award and/or
an Option is granted under the Plan.

          2.11.   "PARENT" of the Company shall have the meaning set forth in
Section 424(e) of the Code.

          2.12.   "SUBSIDIARY" of the Company shall have the meaning set forth
in Section 424(f) of the Code.

          Section 3. ELIGIBILITY. Awards and/or Options may be granted to any
Employee. The Administrator shall have the sole authority to select the persons
to whom Awards and/or Options are to be granted hereunder, and to determine
whether a person is to be granted a Non-Qualified Option, an ISO or an Award or
any combination thereof. No person shall have any right to participate in the
Plan. Any person selected by the Administrator for participation during any one
period will not by virtue of such participation have the right to be selected as
a Participant for any other period.

          Section 4. COMMON STOCK SUBJECT TO THE PLAN.

          4.1.    NUMBER OF SHARES. The total number of shares of Common Stock
for which Options and/or Awards may be granted under the Plan shall not exceed
in the aggregate 7,668,736 shares of Common Stock (subject to adjustment as
provided in Section 8 hereof). The Company, during the term of this Plan, will
at all times reserve and keep available such number of shares of Common Stock as
shall be sufficient to satisfy the requirements of the Plan.

          4.2.    REISSUANCE. The shares of Common Stock that may be subject to
Options and/or Awards granted under the Plan may be either authorized and
unissued shares or shares reacquired at any time and now or hereafter held as
treasury stock as the Administrator may determine. In the event that any
outstanding Option expires or is terminated for any reason, the shares allocable
to the unexercised portion of such Option may again be subject to an Option

                                        2
<Page>

and/or Award granted under the Plan, subject, in the case of ISO's, to any
limitation required by the Code. If any shares of Common Stock issued or sold
pursuant to an Award or the exercise of an Option shall have been repurchased by
the Company, then such shares may again be subject to an Option and/or Award
granted under the Plan.

          4.3.    SPECIAL ISO LIMITATIONS.

          (a)     The aggregate fair market value (determined as of the date an
ISO is granted) of the shares of Common Stock with respect to which ISOs are
exercisable for the first time by an Employee during any calendar year (under
all incentive stock option plans of the Company or any Parent or Subsidiary of
the Company) shall not exceed $100,000.

          (b)     No ISO shall be granted to an Employee who, at the time the
ISO is granted, owns (actually or constructively under the provisions of Section
424(d) of the Code) stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary of the
Company, unless (i) the option price is at least 110% of the fair market value
(determined as of the time the ISO is granted) of the shares of Common Stock
subject to the ISO and (ii) the ISO by its terms is not exercisable more than
five years from the date it is granted.

          4.4.    LIMITATIONS NOT APPLICABLE TO NON-QUALIFIED OPTIONS OR AWARDS.
Notwithstanding any other provision of the Plan, the provisions of Sections
4.3(a) and (b) shall not apply, nor shall be construed to apply, to any
Non-Qualified Option or Award granted under the Plan.

          Section 5. ADMINISTRATION OF THE PLAN.

          5.1.    ADMINISTRATION. (a) Subject to the proviso in Section 2.1
hereof, the Plan may be administered by one or more committees of the Board of
Directors each consisting of no less than two persons. To the extent that the
Board of Directors determines it desirable to qualify transactions hereunder as
exempt under Rule l6b-3 of the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT"), each member of the Administrator administering the Plan as to
such transactions shall be a "Non-Employee Director" within the meaning of Rule
l6b-3 promulgated under the Exchange Act. To the extent that the Board of
Directors determines it desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, each member of the Administrator administering the Plan as to such Options
shall be an "outside director" within the meaning of Treasury regulation Section
I, l62-27(e)(3). The Administrator shall be appointed from time to time by, and
shall serve at the pleasure of, the Board of Directors.

          (b)     No member of the Board of Directors or the Administrator shall
be liable for any action, omission or determination relating to the Plan, and
the Company shall indemnify (to the extent permitted under Delaware law and the
bylaws of the Company) and hold harmless each member of the Board of Directors,
the Administrator and each other employee of the Company to whom any duty or
power relating to the administration or interpretation of the Plan

                                        3
<Page>

has been delegated against any cost or expense (including counsel fees) or
liability (including any sum paid in settlement of a claim with the approval of
the Board of Directors or the Administrator) arising out of any action, omission
or determination relating to the Plan, unless, in either case, such action,
omission or determination was taken or made by such director or employee in bad
faith and without reasonable belief that it was in the best interests of the
Company.

          5.2.    GRANT OF OPTIONS/AWARDS.

          (a)     OPTIONS. The Administrator shall have the sole authority and
discretion under the Plan (i) to select the Employees who are to be granted
Options hereunder; (ii) to designate whether any Option to be granted hereunder
is to be an ISO or a Non-Qualified Option; (iii) to establish the number of
shares of Common Stock that may be subject to each Option; (iv) to determine the
time and the conditions subject to which Options may be exercised in whole or in
part; (v) to determine the amount (not less than the par value per share) and
the form of the consideration that may be used to purchase shares of Common
Stock upon exercise of any Option (including, without limitation, the
circumstances under which issued and outstanding shares of Common Stock owned by
a Participant may be used by the Participant to exercise an Option); (vi) to
impose restrictions and/or conditions with respect to shares of Common Stock
acquired upon exercise of an Option; (vii) to determine the circumstances under
which shares of Common Stock acquired upon exercise of any Option may be subject
to repurchase by the Company; (viii) to determine the circumstances and
conditions subject to which shares acquired upon exercise of an Option may be
sold or otherwise transferred, including, without limitation, the circumstances
and conditions subject to which a proposed sale of shares of Common Stock
acquired upon exercise of an Option may be subject to the Company's right of
first refusal (as well as the terms and conditions of any such right of first
refusal); (ix) to establish a vesting provision for any Option relating to the
time when (or the circumstances under which) the Option may be exercised by a
Participant, including, without limitation, vesting provisions that may be
contingent upon (A) the Company's meeting specified financial goals, (B) a
change of control of the Company or (C) the occurrence of other specified
events; (x) to accelerate the time when outstanding Options may be exercised,
PROVIDED, HOWEVER, that any ISOs shall be deemed "accelerated" within the
meaning of Section 424(h) of the Code; and (xi) to establish any other terms,
restrictions and/or conditions applicable to any Option not inconsistent with
the provisions of the Plan.

          (b)     AWARDS. The Administrator shall have the sole authority and
discretion under the Plan (i) to select the Employees who are to be granted
Awards hereunder; (ii) to determine the amount to be paid by a Participant to
acquire shares of Common Stock pursuant to an Award, which amount may be equal
to, more than, or less than the fair market value of such shares on the date the
Award is granted (but in no event less than the par value of such shares); (iii)
to determine the time or times and the conditions subject to which Awards may be
made; (iv) to determine the time or times and the conditions subject to which
the shares of Common Stock subject to an Award are to become vested and no
longer subject to repurchase by the Company; (v) to establish transfer
restrictions and the terms and conditions on which any such transfer
restrictions with respect to shares of Common Stock acquired pursuant to an
Award shall

                                        4
<Page>

lapse; (vi) to establish vesting provisions with respect to any shares of Common
Stock subject to an Award, including, without limitation, vesting provisions
which may be contingent upon (A) the Company's meeting specified financial
goals, (B) a change of control of the Company or (C) the occurrence of other
specified events; (vii) to determine the circumstances under which shares of
Common Stock acquired pursuant to an Award may be subject to repurchase by the
Company; (viii) to determine the circumstances and conditions subject to which
any shares of Common Stock acquired pursuant to an Award may be sold or
otherwise transferred, including, without limitation, the circumstances and
conditions subject to which a proposed sale of shares of Common Stock acquired
pursuant to an Award may be subject to the Company's right of first refusal (as
well as the terms and conditions of any such right of first refusal); (ix) to
determine the form of consideration that may be used to purchase shares of
Common Stock pursuant to an Award (including, without limitation, the
circumstances under which issued and outstanding shares of Common Stock owned by
a Participant may be used by the Participant to purchase the Common Stock
subject to an Award); (x) to accelerate the time at which any or all
restrictions imposed with respect to any shares of Common Stock subject to an
Award will lapse; and (xi) to establish any other terms, restrictions and/or
conditions applicable to any Award not inconsistent with the provisions of the
Plan.

          5.3.    INTERPRETATION. The Administrator shall be authorized to
interpret the Plan and may, from time to time, adopt such rules and regulations,
not inconsistent with the provisions of the Plan, as it may deem advisable to
carry out the purposes of the Plan.

          5.4.    FINALITY. The interpretation and construction by the
Administrator of any provision of the Plan, any Option and/or Award granted
hereunder or any agreement evidencing any such Option and/or Award shall be
final and conclusive upon all parties.

          5.5.    EXPENSES. ETC. All expenses and liabilities incurred by the
Administrator in the administration of the Plan shall be borne by the Company.
The Administrator may employ attorneys, consultants, accountants or other
persons in connection with the administration of the Plan. The Company, and its
officers and directors, shall be entitled to rely upon the advice, opinions or
valuations of any such persons. No member of the Administrator shall be liable
for any action, determination or interpretation taken or made in good faith with
respect to the Plan or any Option and/or Award granted hereunder.

          Section 6. TERMS AND CONDITIONS OF OPTIONS.

          6.1.    ISOs. The terms and conditions of each ISO granted under the
Plan shall be specified by the Administrator and shall be set forth in an ISO
agreement between the Company and the Participant in such form as the
Administrator shall approve. The terms and conditions of each ISO shall be such
that each ISO issued hereunder shall constitute and shall be treated as an
"incentive stock option" as defined in Section 422(b) of the Code. The terms and
conditions of any ISO granted hereunder need not be identical to those of any
other ISO granted hereunder.

          The terms and conditions of each ISO shall include the following:

                                        5
<Page>

          (a)     The option price shall be fixed by the Administrator but shall
in no event be less than 100% (or 110% in the case of an Employee referred to in
Section 4.3(b) hereof) of the fair market value of the shares of Common Stock
subject to the ISO on the date the ISO is granted. For purposes of the Plan, the
fair market value per share of Common Stock as of any day shall mean the average
of the closing prices of sales of shares of Common Stock on all national
securities exchanges on which the Common Stock may at the time be listed or, if
there shall have been no sales on any such day, the average of the highest bid
and lowest asked prices on all such exchanges at the end of such day, or, if on
any day the Common Stock shall not be so listed, the average of the
representative bid and asked prices quoted in the NASDAQ system as of 3:30 p.m.,
New York time, on such day, or, if on any day the Common Stock shall not be
quoted in the NASDAQ system, the average of the high and low bid and asked
prices on such day in the over-the-counter market as reported by National
Quotation Bureau Incorporated, or any similar successor organization. If at any
time the Common Stock is not listed on any national securities exchange or
quoted in the NASDAQ system or the over-the-counter market, the fair market
value of the shares of Common Stock subject to an Option on the date the ISO is
granted shall be the fair market value thereof determined in good faith by the
Board of Directors.

          (b)     ISOs, by their terms, shall not be transferable otherwise than
by will or the laws of descent and distribution, and, during a Participant's
lifetime, an ISO shall be exercisable only by the Participant.

          (c)     The Administrator shall fix the term of all ISOs granted
pursuant to the Plan (including, without limitation, the date on which such ISO
shall expire and terminate); PROVIDED, HOWEVER, that such term shall in no event
exceed ten (10) years from the date on which such ISO is granted (or, in the
case of an ISO granted to an Employee referred to in Section 4.3(b) hereof, such
term shall in no event exceed five (5) years from the date on which such ISO is
granted). Each ISO shall be exercisable in such amount or amounts, under such
conditions and at such times or intervals or in such installments as shall be
determined by the Administrator in its sole discretion.

          (d)     To the extent that the Company or any Parent or Subsidiary of
the Company is required to withhold any Federal, state or local taxes in respect
of any compensation income realized by any Participant as a result of any
"disqualifying disposition" of any shares of Common Stock acquired upon exercise
of an ISO granted hereunder, the Company shall deduct from any payments of any
kind otherwise due to such Participant the aggregate amount of such Federal,
state or local taxes required to be so withheld or, if such payments are
insufficient to satisfy such Federal, state or local taxes, such Participant
will be required to pay to the Company, or make other arrangements satisfactory
to the Company regarding payment to the Company of, the aggregate amount of any
such taxes. All matters with respect to the total amount of taxes to be withheld
in respect of any such compensation income shall be determined by the Board of
Directors, in its sole discretion.

          (e)     The terms and conditions of each ISO may include the following
provisions:

                                        6
<Page>

          (i)     In the event a Participant's employment by the Company or any
Parent or Subsidiary of the Company shall be terminated for cause, the
unexercised portion of any ISO held by such Participant at that time may only be
exercised within one month after the date on which the Participant ceased to be
so employed, and only to the extent that the Participant could have otherwise
exercised such ISO as of the date on which he ceased to be so employed.

          (ii)    In the event a Participant's employment by the Company or any
Parent or Subsidiary of the Company shall terminate for any reason other than
(x) a termination specified in clause (i) above or (y) by reason of the
Participant's death or "disability" (within the meaning of Section 22(e)(3) of
the Code), the unexercised portion of any ISO held by such Participant at that
time may only be exercised within three months after the date on which the
Participant ceased to be so employed, and only to the extent that the
Participant could have otherwise exercised such ISO as of the date on which he
ceased to be so employed.

          (iii)   In the event a Participant shall cease to be employed by the
Company or any Parent or Subsidiary of the Company on a full-time basis by
reason of his "disability" (within the meaning of Section 22(e)(3) of the Code),
the unexercised portion of any ISO held by such Participant at that time may
only be exercised within one year after the date on which the Participant ceased
to be so employed, and only to the extent that the Participant could have
otherwise exercised such ISO as of the date on which he ceased to be so
employed.

          (iv)    In the event a Participant shall die while in the employ of
the Company or a Parent or Subsidiary of the Company (or within a period of one
year after ceasing to be an Employee by reason of his "disability" (within the
meaning of Section 22(e)(3) of the Code)), the unexercised portion of any ISO
held by such Participant at the time of his death may only be exercised within
one year after the date of such Participant's death and only to the extent that
the Participant could have otherwise exercised such ISO at the time of his
death. In such event, the executor or administrator of the Participant's estate,
or any person or persons who shall have acquired the ISO directly from the
Participant by bequest or inheritance, may exercise such ISO.

          6.2.    NON-QUALIFIED OPTIONS. The terms and conditions of each
Non-Qualified Option granted under the Plan shall be specified by the
Administrator, in its sole discretion, and shall be set forth in a written
option agreement between the Company and the Participant in such form as the
Administrator shall approve. The terms and conditions of each Non-Qualified
Option will be such (and each Non-Qualified Option agreement shall expressly so
state) that each Non-Qualified Option issued hereunder shall not constitute nor
be treated as an "incentive stock option" as defined in Section 422(b) of the
Code, but will be a "non-qualified stock option" for Federal, state and local
income tax purposes. The terms and conditions of any Non-Qualified Option
granted hereunder need not be identical to those of any other Non-Qualified
Option granted hereunder.

          The terms and conditions of each Non-Qualified Option Agreement shall
include the following:

                                        7
<Page>

          (a)     The option (exercise) price shall be fixed by the
Administrator and may be equal to, more than or less than the fair market value
of the shares of Common Stock subject to the Non-Qualified Option on the date
such Non-Qualified Option is granted as determined in good faith by the
Administrator.

          (b)     The Administrator shall fix the term of all Non-Qualified
Options granted pursuant to the Plan (including, without limitation, the date on
which such Non-Qualified Option shall expire and terminate). Each Non-Qualified
Option shall be exercisable in such amount or amounts, under such conditions
(including, without limitation, provisions governing the rights to exercise such
Non-Qualified Option), and at such times or intervals or in such installments as
shall be determined by the Administrator in its sole discretion.

          (c)     Non-Qualified Options shall not be transferable otherwise than
by will or the laws of descent and distribution, and during a Participant's
lifetime a Non-Qualified Option shall be exercisable only by the Participant.

          (d)     The terms and conditions of each Non-Qualified Option may
include the following provisions:

          (i)     In the event a Participant's employment by the Company or any
     Parent or Subsidiary of the Company shall be terminated for cause, the
     unexercised portion of any Non-Qualified Option held by such Participant at
     that time may only be exercised within one month after the date on which
     the Participant ceased to be an Employee, and only to the extent that the
     Participant could have otherwise exercised such Non-Qualified Option as of
     the date on which he ceased to be an Employee.

          (ii)    In the event a Participant's employment by the Company or any
     Parent or Subsidiary of the Company shall be terminated by the Participant
     for any reason other than (x) a termination specified in clause (iii) below
     or (y) by reason of the Participant's death or "disability" (within the
     meaning of Section 22(e)(3) of the Code), the unexercised portion of any
     Non-Qualified Option held by such Participant at that time may only be
     exercised within three months after the date on which the Participant
     ceased to be an Employee, and only to the extent that the Participant could
     have otherwise exercised such Non-Qualified Option as of the date on which
     he ceased to be an Employee.

          (iii)   In the event that a Participant's employment by the Company or
     any Parent or Subsidiary of the Company shall be terminated (x) by the
     Company or any Parent or Subsidiary thereof other than as specified in
     clause (i) above and other than by reason of the Participant's death or
     "disability" (within the meaning of Section 22(e)(3) of the Code) or (y) by
     the Participant for reasons specified in the Non-Qualified Option as
     constituting "Good Reason", the unexercised portion of any Non-Qualified
     Option held by such Participant at that time may only be exercised within
     six months after the date on which the Participant ceased to be an
     Employee, and only to the extent that the Participant could have otherwise
     exercised such Non-Qualified Option as of the date on which he ceased to be
     an Employee.

                                        8
<Page>

          (iv)    In the event a Participant shall cease to be an Employee of
     the Company or any Parent or Subsidiary of the Company by reason of his
     "disability" (within the meaning of Section 22(e)(3) of the Code), the
     unexercised portion of any Non-Qualified Option held by such Participant at
     that time may only be exercised within one year after the date on which the
     Participant ceased to be an Employee, and only to the extent that the
     Participant could have otherwise exercised such Non-Qualified Option as of
     the date on which he ceased to be an Employee.

          (v)     In the event a Participant shall die while an Employee of the
     Company or a Parent or Subsidiary of the Company (or within a period of one
     year after ceasing to be an Employee by reason of his "disability" (within
     the meaning of Section 22(e)(3) of the Code)), the unexercised portion of
     any Non-Qualified Option held by such Participant at the time of his death
     may only be exercised within one year after the date of such Participant's
     death, and only to the extent that the Participant could have otherwise
     exercised such Non-Qualified Option at the time of his death. In such
     event, such Non-Qualified Option may be exercised by the executor or
     administrator of the Participant's estate or by any person or persons who
     shall have acquired the Non-Qualified Option directly from the Participant
     by bequest or inheritance.

          (e)     To the extent that the Company is required to withhold any
Federal, state or local taxes in respect of any compensation income realized by
any Participant in respect of a Non-Qualified Option granted hereunder or in
respect of any shares of Common Stock acquired upon exercise of a Non-Qualified
Option, the Company shall deduct from any payments of any kind otherwise due to
such Participant the aggregate amount of such Federal, state or local taxes
required to be so withheld or, if such payments are insufficient to satisfy such
Federal, state or local taxes, or if no such payments are due or to become due
to such Participant, then, such Participant will be required to pay to the
Company, or make other arrangements satisfactory to the Company regarding
payment to the Company of, the aggregate amount of any such taxes. All matters
with respect to the total amount of taxes to be withheld in respect of any such
compensation income shall be determined by the Administrator, in its sole
discretion.

          Section 7. TERMS AND CONDITIONS OF AWARDS. The terms and conditions of
each Award granted under the Plan shall be specified by the Administrator, in
its sole discretion, and shall be set forth in a written agreement between the
Participant and the Company, in such form as the Administrator shall approve.
The terms and provisions of any Award granted hereunder need not be identical to
those of any other Award granted hereunder.

          The terms and conditions of each Award may include the following:

          (a)     The amount to be paid by a Participant to acquire the shares
of Common Stock pursuant to an Award shall be fixed by the Administrator and may
be equal to, more than or less than the fair market value of the shares of
Common Stock subject to the Award on the date the Award is granted (but in no
event less than the par value of such shares).

                                        9
<Page>

          (b)     Each Award shall contain such vesting provisions, such
transfer restrictions and such other restrictions and conditions as the
Administrator, in its sole discretion, may determine, including, without
limitation, the circumstances under which the Company shall have the right and
option to repurchase shares of Common Stock acquired pursuant to an Award.

          (c)     Stock certificates representing Common Stock acquired pursuant
to an Award shall bear a legend referring to any restrictions imposed on such
Stock and such other matters as the Administrator may determine.

          (d)     To the extent that the Company is required to withhold any
Federal, state or local taxes in respect of any compensation income realized by
the Participant in respect of an Award granted hereunder, in respect of any
shares acquired pursuant to an Award, or in respect of the vesting of any such
shares of Common Stock, then the Company shall deduct from any payments of any
kind otherwise due to such Participant the aggregate amount of such Federal,
state or local taxes required to be so withheld, or if such payments are
insufficient to satisfy such Federal, state or local taxes, or if no such
payments are due or to become due to such Participant, then such Participant
will be required to pay to the Company, or make other arrangements satisfactory
to the Company regarding payment to the Company of, the aggregate amount of any
such taxes. All matters with respect to the total amount of taxes to be withheld
in respect of any such compensation income shall be determined by the
Administrator, in its sole discretion.

          Section 8. ADJUSTMENTS.

          (a)     In the event that, after the adoption of the Plan by the Board
of Directors, the outstanding shares of the Company's Common Stock shall be
increased or decreased or changed into or exchanged for a different number or
kind of shares of stock or other securities of the Company or of another entity
in each such case through reorganization, merger or consolidation,
recapitalization, reclassification, stock split, split-up, combination or
exchange of shares or declaration of any dividends payable in Common Stock, the
Administrator shall, subject to the provisions of Section 8(c) below if the
circumstances therein specified are applicable, appropriately adjust (i) the
number of shares of Common Stock (and the option price per share) subject to the
unexercised portion of any outstanding Option (to the nearest possible full
share); PROVIDED, HOWEVER, that the limitations of Section 424 of the Code shall
apply with respect to adjustments made to ISOs, (ii) the number of shares of
Common Stock to be acquired pursuant to an Award which have not become vested,
and (iii) the number of shares of Common Stock for which Options and/or Awards
may be granted under the Plan, as set forth in Section 4.1 hereof, and such
adjustments shall be effective and binding for all purposes of the Plan.

          (b)     If any capital reorganization or reclassification of the
capital stock of the Company or any consolidation or merger of the Company with
another entity, or the sale of all or substantially all its assets to another
entity, shall be effected in such a way that holders of Common Stock shall be
entitled to receive stock, securities or assets with respect to or in exchange
for Common Stock, then, subject to the provisions of Section 8(c) below if the
circumstances therein specified are applicable, each holder of an Option shall
thereafter have the

                                       10
<Page>

right to purchase, upon the exercise of the Option in accordance with the terms
and conditions specified in the option agreement governing such Option and in
lieu of the shares of Common Stock immediately theretofore receivable upon the
exercise of such Option, such shares of stock, securities or assets (including,
without limitation, cash) as may be issued or payable with respect to or in
exchange for a number of outstanding shares of such Common Stock equal to the
number of shares of such Common Stock immediately theretofore so receivable had
such reorganization, reclassification, consolidation, merger or sale not taken
place.

          (c)     Notwithstanding Sections 8(a) and 8(b) hereof, in the event of
(i) any offer to holders of the Company's Common Stock generally relating to the
acquisition of all or substantially all of their shares, including, without
limitation, through purchase, merger or otherwise, or (ii) any proposed
transaction generally relating to the acquisition of substantially all of the
assets or business of the Company (herein sometimes referred to as an
"Acquisition"), the Board of Directors may, in its sole discretion, cancel any
outstanding Options (PROVIDED, HOWEVER, that the limitations of Section 424 of
the Code shall apply with respect to adjustments made to ISOs) and pay or
deliver, or cause to be paid or delivered, to the holder thereof an amount in
cash or securities having a value (as determined by the Board of Directors
acting in good faith) equal to the product of (A) the number of shares of Common
Stock (the "OPTION SHARES") that, as of the date of the consummation of such
Acquisition, the holder of such Option had become entitled to purchase (and had
not purchased) multiplied by (B) the amount, if any, by which (1) the formula or
fixed price per share paid to holders of shares of Common Stock pursuant to such
Acquisition exceeds (2) the option price applicable to such Option Shares.

          Section 9. EFFECT OF THE PLAN ON EMPLOYMENT RELATION SHIP. Neither the
Plan nor any Option and/or Award granted hereunder to a Participant shall be
construed as conferring upon such Participant any right to continue in the
employ of (or otherwise provide services to) the Company or any Subsidiary or
Parent thereof, or limit in any respect the right of the Company or any
Subsidiary or Parent thereof to terminate such Participant's employment or other
relationship with the Company or any Subsidiary or Parent, as the case may be,
at any time.

          Section 10. AMENDMENT OF THE PLAN. The Board of Directors may amend
the Plan from time to time as it deems desirable; PROVIDED, HOWEVER, that,
without the approval of the holders of a majority of the outstanding voting
capital stock of the Company entitled to vote thereon or consent thereto, the
Board of Directors may not amend the Plan (i) to increase (except for increases
due to adjustments in accordance with Section 8 hereof) the aggregate number OF
shares of Common Stock for which Options and/or Awards maybe granted hereunder,
(ii) to decrease the minimum exercise price specified by the Plan in respect of
ISOs or (iii) to change the class of Employees eligible to receive ISOs under
the Plan.

          Section 11. TERMINATION OF THE PLAN. The Board of Directors may
terminate the Plan at any time. Unless the Plan shall theretofore have been
terminated by the Board of Directors, the Plan shall terminate ten years after
the date of its initial adoption by the Board of Directors. No Option and/or
Award may be granted hereunder after termination of the Plan. The termination or
amendment of the Plan shall not alter or impair any rights or obligations under
any Option and/or Award theretofore granted under the Plan.

                                       11
<Page>

          Section 12. EFFECTIVE DATE OF THE PLAN. The Plan shall be effective as
of March 27, 2003, the date on which the Plan was adopted by the Board of
Directors and approved by the requisite holders of outstanding Common Stock of
the Company.

          Section 13. GOVERNING LAW. The provisions of the Plan shall be
governed by and interpreted in accordance with the laws of the State of New
York.

                               *    *    *    *

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]