Document:

<PAGE>

                                                                  EXECUTION COPY

                                   $50,000,000

                              AMENDED AND RESTATED

                                CREDIT AGREEMENT

                           dated as of August 29, 2001

                                      among

                              NOVAMED EYECARE, INC.

                                as the Borrower,

                    CERTAIN COMMERCIAL LENDING INSTITUTIONS,

                                 as the Lenders,

                                       and

                    NATIONAL CITY BANK OF MICHIGAN/ILLINOIS,
                          as the Agent for the Lenders

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
<S>                                                                                       <C>
ARTICLE I ...............................................................................    1
 SECTION 1.1 Defined Terms ..............................................................    1
 SECTION 1.2 Use of Defined Terms .......................................................   22
 SECTION 1.3 Cross-References ...........................................................   22
 SECTION 1.4 Accounting Principles ......................................................   22
ARTICLE II REVOLVING COMMITMENTS, BORROWING PROCEDURES AND NOTES ........................   22
 SECTION 2.1 Revolving Commitments ......................................................   22
  SECTION 2.1.1 Revolving Commitment of Each Lender .....................................   22
  SECTION 2.1.2 Lenders Not Permitted or Required To Make Loans .........................   23
 SECTION 2.2 Reduction of Revolving Commitment Amount ...................................   23
  SECTION 2.2.1 Optional ................................................................   23
  SECTION 2.2.2 Mandatory Reductions and Prepayments ....................................   23
 SECTION 2.3 Borrowing Procedure ........................................................   24
 SECTION 2.4 Continuation and Conversion Elections ......................................   24
 SECTION 2.5 Funding ....................................................................   25
 SECTION 2.6 Notes ......................................................................   25
 SECTION 2.7 Letters of Credit ..........................................................   25
  SECTION 2.7.1 Issuance of Letters of Credit ...........................................   25
  SECTION 2.7.2 Participating Interests .................................................   25
  SECTION 2.7.3 Reimbursement Upon Drawing ..............................................   26
  SECTION 2.7.4 Request for Letter of Credit ............................................   27
ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES ..................................   27
 SECTION 3.1 Repayments and Prepayments .................................................   27
  SECTION 3.1.1 Prior to the Revolving Commitment Termination Date ......................   27
  SECTION 3.1.2 On the Maturity Date ....................................................   28
  SECTION 3.1.3 Extension of Maturity Date ..............................................   28
  SECTION 3.2 Interest Provisions .......................................................   28
  SECTION 3.2.1 Rates ...................................................................   28
  SECTION 3.2.2 Post-Maturity Rates .....................................................   30
  SECTION 3.2.3 Payment Dates ...........................................................   30
 SECTION 3.3 Fees .......................................................................   31
  SECTION 3.3.1 Revolving Commitment Fee ................................................   31
  SECTION 3.3.2 Letter of Credit Fees ...................................................   31
  SECTION 3.3.3 Agency Fees .............................................................   32
ARTICLE IV LIBO RATE AND OTHER PROVISIONS ...............................................   32
 SECTION 4.1 LIBO Rate Lending Unlawful .................................................   32
 SECTION 4.2 Deposits Unavailable .......................................................   32
 SECTION 4.3 Increased LIBO Rate Loan Costs, etc ........................................   33
 SECTION 4.4 Funding Losses .............................................................   33
 SECTION 4.5 Increased Capital Costs ....................................................   33
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                         <C>
 SECTION 4.6 Taxes ......................................................................   34
 SECTION 4.7 Payments, Computations, etc ................................................   35
 SECTION 4.8 Sharing of Payments ........................................................   35
 SECTION 4.9 Setoff .....................................................................   36
 SECTION 4.10 Use of Proceeds ...........................................................   36
 SECTION 4.11 Changes to Other Branches; Equal Treatment of Borrower ....................   37
 SECTION 4.12 Replacement of Lenders ....................................................   37
ARTICLE V CONDITIONS TO BORROWING .......................................................   38
 SECTION 5.1 Initial Borrowing ..........................................................   38
  SECTION 5.1.1 Resolutions, etc ........................................................   38
  SECTION 5.1.2 Delivery of Notes .......................................................   38
  SECTION 5.1.3 Applicable Margin .......................................................   38
  SECTION 5.1.4 Guaranty ................................................................   38
  SECTION 5.1.5 Pledge Agreements .......................................................   38
  SECTION 5.1.6 Security Agreements .....................................................   38
  SECTION 5.1.7 Intellectual Property Assignment ........................................   39
  SECTION 5.1.8 Opinions of Counsel .....................................................   39
  SECTION 5.1.9 Agreements ..............................................................   39
  SECTION 5.1.10 Closing Fees, Expenses, etc ............................................   40
 SECTION 5.2 All Borrowings and Letters of Credit .......................................   40
  SECTION 5.2.1 Compliance with Warranties, No Default, etc .............................   40
  SECTION 5.2.2 Borrowing Request; LC Notice ............................................   40
  SECTION 5.2.3 Satisfactory Legal Form .................................................   40
SECTION 5.3. Conditions to Amendment and Restatement Effective Date .....................   41
  SECTION 5.3.1 Executed Signature Pages to Agreement ...................................   41
  SECTION 5.3.2 Executed Reaffirmation of Collateral Documents ..........................   41
  SECTION 5.3.3 Payment of Fees and Expenses ............................................   41
  SECTION 5.3.4  Resolutions, etc .......................................................   41
  SECTION 5.3.5  Certificate ............................................................   41
  SECTION 5.3.6  Updated Disclosure Schedules ...........................................   42
  SECTION 5.3.7  Other Documents ........................................................   42
ARTICLE VI REPRESENTATIONS AND WARRANTIES ..............................................   42
 SECTION 6.1 Organization, etc ..........................................................   42
 SECTION 6.2 Due Authorization, Non-Contravention, etc ..................................   42
 SECTION 6.3 Government Approval, Regulation, etc .......................................   43
 SECTION 6.4 Validity, etc ..............................................................   43
 SECTION 6.5 Financial Information ......................................................   43
 SECTION 6.6 No Material Adverse Change .................................................   43
 SECTION 6.7 Litigation, Labor Controversies, etc .......................................   43
 SECTION 6.8 Subsidiaries ...............................................................   44
 SECTION 6.9 Ownership of Properties ....................................................   44
 SECTION 6.10 Taxes .....................................................................   44
 SECTION 6.11 Pension and Welfare Plans .................................................   44
</TABLE>

                                      -2-

<PAGE>

<TABLE>
<S>                                                                                         <C>
 SECTION 6.12 Environmental Warranties ..................................................   44
 SECTION 6.13 Regulations T, U and X ....................................................   45
 SECTION 6.14 Accuracy of Information ...................................................   46
 SECTION 6.15 Solvency ..................................................................   46
 SECTION 6.16 Collateral Documents ......................................................   46
 SECTION 6.17 Indebtedness ..............................................................   47
 SECTION 6.18 Service Agreements; Employment Agreements .................................   47
 SECTION 6.19 Other Agreements/Program Eligibility ......................................   47
 SECTION 6.20 Reimbursement from Third Party Payors .....................................   47
 SECTION 6.21 Legal Compliance ..........................................................   48
 SECTION 6.22 Licensing and Accreditation ...............................................   48
 SECTION 6.23 Subordination Provisions ..................................................   48
 SECTION 6.24 RICO ......................................................................   48
ARTICLE VII COVENANTS ..................................................................   49
 SECTION 7.1 Affirmative Covenants ......................................................   49
  SECTION 7.1.1 Financial Information, Reports, Notices, etc ............................   49
  SECTION 7.1.2 Compliance with Laws, etc ...............................................   51
  SECTION 7.1.3 Maintenance of Properties ...............................................   51
  SECTION 7.1.4 Insurance ...............................................................   52
  SECTION 7.1.5 Books and Records .......................................................   53
  SECTION 7.1.6 Environmental Covenant ..................................................   53
  SECTION 7.1.7 Changes to Certain Agreements ...........................................   53
  SECTION 7.1.8 Governmental Licenses ...................................................   54
  SECTION 7.1.9 Covenants Extending to Other Persons ....................................   54
  SECTION 7.1.10 Solvency ...............................................................   54
  SECTION 7.1.11 Further Assurances .....................................................   54
  SECTION 7.1.12 New Subsidiaries .......................................................   55
 SECTION 7.2 Negative Covenants .........................................................   56
  SECTION 7.2.1 Business Activities .....................................................   56
  SECTION 7.2.2 Indebtedness ............................................................   56
  SECTION 7.2.3 Liens ...................................................................   58
  SECTION 7.2.4 Financial Condition .....................................................   60
  SECTION 7.2.5 Investments .............................................................   60
  SECTION 7.2.6 Restricted Payments, etc ................................................   62
  SECTION 7.2.7 Intentionally Omitted ...................................................   63
  SECTION 7.2.8 Consolidation, Merger, etc ..............................................   63
  SECTION 7.2.9 Asset and Capital Stock Dispositions, etc.( .............................   64
  SECTION 7.2.10 Modification of Certain Agreements .....................................   65
  SECTION 7.2.11 Transactions with Affiliates ...........................................   65
  SECTION 7.2.12 Negative Pledges, Restrictive Agreements, etc ..........................   65
ARTICLE VIII EVENTS OF DEFAULT ..........................................................   67
 SECTION 8.1 Listing of Events of Default ...............................................   67
  SECTION 8.1.1 Non-Payment of Obligations ..............................................   67
  SECTION 8.1.2 Breach of Warranty ......................................................   67
  SECTION 8.1.3 Non-Performance of Certain Covenants and Obligations ....................   67
  SECTION 8.1.4 Non-Performance of Other Covenants and Obligations ......................   67
  SECTION 8.1.5 Default on Other Indebtedness ...........................................   67
  SECTION 8.1.6 Judgments ...............................................................   67
  SECTION 8.1.7 Pension Plans ...........................................................   68
  SECTION 8.1.8 Change of Control .......................................................   68
  SECTION 8.1.9 Bankruptcy, Insolvency, etc .............................................   68
  SECTION 8.1.10 Impairment of Security, etc ............................................   69
  SECTION 8.1.11 Fraud and Abuse Laws ...................................................   69
</TABLE>

                                      -3-

<PAGE>

<TABLE>
<S>                                                                                         <C>
  SECTION 8.1.12 Certifications .........................................................   69
  SECTION 8.1.13 Service Agreements .....................................................   70
 SECTION 8.2 Action if Bankruptcy .......................................................   70
 SECTION 8.3 Action if Other Event of Default ...........................................   70
 SECTION 8.4 Letters of Credit ..........................................................   70
ARTICLE IX ..............................................................................   71
 SECTION 9.1 Actions ....................................................................   71
 SECTION 9.2 Funding Reliance, etc ......................................................   71
 SECTION 9.3 Exculpation ................................................................   72
 SECTION 9.4 Successor ..................................................................   72
 SECTION 9.5 Loans by National City .....................................................   73
 SECTION 9.6 Credit Decisions ...........................................................   73
 SECTION 9.7 Copies, etc ................................................................   73
ARTICLE X ...............................................................................   73
 SECTION 10.1 Waivers, Amendments, etc ..................................................   73
 SECTION 10.2 Notices ...................................................................   74
 SECTION 10.3 Payment of Costs and Expenses .............................................   74
 SECTION 10.4 Indemnification ...........................................................   75
 SECTION 10.5 Survival ..................................................................   76
 SECTION 10.6 Severability ..............................................................   76
 SECTION 10.7 Headings ..................................................................   76
 SECTION 10.8 Execution in Counterparts, Effectiveness, etc .............................   76
 SECTION 10.9 Governing Law; Entire Agreement ...........................................   77
 SECTION 10.10 Successors and Assigns ...................................................   77
 SECTION 10.11 Sale and Transfer of Loans and Note; Participations in Loans and Note ....   77
  SECTION 10.11.1 Assignments ...........................................................   77
  SECTION 10.11.2 Participations ........................................................   79
 SECTION 10.12 Confidentiality ..........................................................   79
 SECTION 10.13 Other Transactions .......................................................   80
 SECTION 10.14 Forum Selection and Consent to Jurisdiction ..............................   80
 SECTION 10.15 Waiver of Jury Trial .....................................................   81
</TABLE>

                                      -4-

<PAGE>

SCHEDULE 1        --       Original Closing Date Stockholders
SCHEDULE 2        --       Agreed EBITDA Formula
SCHEDULE 6.3      --       Approvals
SCHEDULE 6.8      --       Subsidiaries
SCHEDULE 6.10     --       Tax Matters
SCHEDULE 6.17     --       Existing Indebtedness
SCHEDULE 6.18     --       Service Agreements; Employment Agreements
SCHEDULE 6.22     --       Required Certificates
SCHEDULE 7.1.4    --       Insurance
SCHEDULE 7.2.3    --       Existing Liens
SCHEDULE 7.2.5    --       Existing Investments
SCHEDULE 10.1              Commitment Percentages
SCHEDULE 10.2     --       Notice Information

EXHIBIT A         Form of Note
EXHIBIT B         Form of Borrowing Request
EXHIBIT C         Form of Continuation/Conversion Notice
EXHIBIT D         Form of Lender Assignment Agreement
EXHIBIT E         Form of Guaranty
EXHIBIT F-1       Form of Borrower Pledge Agreement
EXHIBIT F-2       Form of Guarantor Pledge Agreement
EXHIBIT G-1       Form of Borrower Security Agreement
EXHIBIT G-2       Form of Guarantor Security Agreement
EXHIBIT H         Form of Opinion of Counsel to the Borrower
EXHIBIT I         Form of Reaffirmation of Collateral Documents
EXHIBIT J         Form of Adjusted Equity ownership EBITDA Certificate
EXHIBIT K         Permitted Asset Dispositions

                                      -5-

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August 29, 2001
among NOVAMED EYECARE, INC., a Delaware corporation (the "Borrower"), the
                                                          --------
various financial institutions from time to time party hereto (collectively, the
"Lenders"), and NATIONAL CITY BANK OF MICHIGAN/ILLINOIS, as agent (the "Agent")
 -------                                                                -----
for the Lenders;

                              W I T N E S S E T H:

     WHEREAS, the Borrower, the Lenders and the Agent entered into that certain
Credit Agreement dated as of June 28, 2000 whereby the Lenders agreed to provide
Revolving Commitments prior to the Revolving Commitment Termination Date to the
Borrower in a maximum aggregate principal amount at any one time outstanding not
to exceed $50,000,000 (the "Original Credit Agreement"); and
                            -------------------------

     WHEREAS, the Borrower has requested that the Lenders and the Agent amend
and restate the Original Credit Agreement; and

     WHEREAS, the Lenders are willing, on the terms and subject to the
conditions hereinafter set forth (including Article V), to amend and restate the
                                            ---------
Original Credit Agreement; and

     WHEREAS, the proceeds of such Loans will be used for general corporate
purposes and working capital purposes of the Borrower and its Subsidiaries and
to finance Permitted Acquisitions by the Borrower.

     NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.1 Defined Terms. The following terms (whether or not underscored)
                 -------------
when used in this Agreement, including its preamble and recitals, shall, except
where the context otherwise requires, have the following meanings (such meanings
to be equally applicable to the singular and plural forms thereof):

     "Affected Lender" is defined in Section 4.12.
      ---------------                ------------

     "Affiliate" of any Person means any other Person which, directly or
      ---------
indirectly, controls, is controlled by or is under common control with such
Person (excluding any trustee under, or any committee with responsibility for
administering, any Plan). A Person shall be deemed to be "controlled by" any
other Person if such other Person possesses, directly or indirectly, power

<PAGE>

          (a) to vote 10% or more of the securities (on a fully diluted basis)
     having ordinary voting power for the election of directors or managing
     general partners; or

          (b) to direct or cause the direction of the management and policies of
     such Person whether by contract or otherwise.

     "Agent" means National City Bank of Michigan/Illinois.
      -----

     "Agreed EBITDA FORM" is defined in Schedule 2.
      ------------------

     "Agreement" means, on any date, this Amended and Restated Credit Agreement
      ---------
as originally in effect on the Amendment and Restatement Effective Date and as
thereafter from time to time amended, supplemented, amended and restated, or
otherwise modified and in effect on such date.

     "Amendment and Restatement Effective Date" is defined in Section 5.3.
      ----------------------------------------

     "ASC Practice" means a Practice primarily engaged in business as an
      ------------
ambulatory surgery center or laser vision correction center.

     "ASC Subsidiary" means a Subsidiary of the Borrower primarily engaged in an
      --------------
ASC Practice.

     "ASC Subsidiary Capital Event" means the purchase by the Borrower or a
      ----------------------------
Wholly-Owned Subsidiary of the Borrower of all or a portion of the minority
interests in a Non-Wholly-Owned ASC Subsidiary or the redemption by a
Non-Wholly-Owned ASC Subsidiary of the Borrower of all or a portion of the
minority interests in such Non-Wholly-Owned ASC Subsidiary.

     "ASP Business" means an application services provider business through
      ------------
which the Borrower will provide information technology-based services and other
services designed to assist health care providers in the growth and development
of their business, which services, will include, without limitation:
installation, maintenance, hosting and support of information technology
systems; installation, maintenance and support of excimer lasers and other
equipment used to perform vision correction surgery; sales and marketing
products and services designed to assist health care professionals in the growth
of their businesses; financial and operations management services; patient
financing and credit card services; and other electronic services and related
electronic commerce capabilities.

     "Asset Disposition" means any sale, transfer or other disposition of any
      -----------------
property of the Borrower or any Subsidiary in a single transaction or in a
series of related transactions (other than the sale of inventory and of
equipment that is obsolete, worn-out or no longer useable by the Borrower or any
of its Subsidiaries, in each case in the ordinary course of business and
Permitted Equity Ownership Sales).

                                      -2-

<PAGE>

     "Assignee Lender" is defined in Section 10.11.1.
      ---------------

     "Authorized Officer" means, relative to any Credit Party, those of its
      ------------------
officers whose signatures and incumbency shall have been certified to the Agent
and the Lenders pursuant to Section 5.1.1.
                            -------------

     "Base Rate" means, on any date and with respect to all Base Rate Loans, a
      ---------
fluctuating rate of interest per annum equal to the higher of (i) the rate of
interest most recently announced by the Agent as its prime rate of interest or
(ii) 0.50% per annum above the Federal Funds Effective Rate. The Base Rate is
not necessarily intended to be the lowest rate of interest determined by the
Agent in connection with extensions of credit. Changes in the rate of interest
on that portion of any Loans maintained as Base Rate Loans will take effect
simultaneously with each change in the Base Rate. The Agent will give notice
promptly to the Borrower and the Lenders of changes in the Base Rate.

     "Base Rate Loan" means a Loan bearing interest at a fluctuating rate
      --------------
determined by reference to the Base Rate.

     "Borrower" is defined in the preamble.
      --------                    --------

     "Borrower Pledge Agreement" means the Pledge Agreement executed and
      -------------------------
delivered by the Borrower pursuant to Section 5.1.5, substantially in the form
                                      -------------
of Exhibit F-1 hereto, as amended, supplemented, restated or otherwise modified
   -----------
from time to time.

     "Borrower Security Agreement" means the Security Agreement executed and
      ---------------------------
delivered pursuant to Section 5.1.6, substantially in the form of Exhibit G-1
                      -------------                               -----------
hereto, as amended, supplemented, restated or otherwise modified from time to
time.

     "Borrowing" means the Loans of the same type and, in the case of LIBO Rate
      ---------
Loans, having the same Interest Period made by all Lenders on the same Business
Day and pursuant to the same Borrowing Request in accordance with Section 2.1.
                                                                  -----------

     "Borrowing Request" means a loan request and certificate duly executed by
      -----------------
an Authorized Officer of the Borrower, substantially in the form of Exhibit B
                                                                    ---------
hereto.

     "Business Day" means
      ------------

          (a) any day which is neither a Saturday or Sunday nor a legal holiday
     on which banks are authorized or required to be closed in Chicago,
     Illinois; and

          (b) relative to the making, continuing, prepaying or repaying of any
     LIBO Rate Loans, any day on which dealings in Dollars are carried on in the
     London interbank market.

                                      -3-

<PAGE>

     "Capital Expenditures" means, for any period, the aggregate amount of all
      --------------------
expenditures of the Borrower and its Subsidiaries for fixed or capital assets
made during such period which, in accordance with GAAP, would be classified as
capital expenditures.

     "Capitalized Lease Liabilities" means all monetary obligations of any
      -----------------------------
Credit Party under any leasing or similar arrangement which, in accordance with
GAAP, would be classified as capitalized leases, and, for purposes of this
Agreement and each other Loan Document, the amount of such obligations shall be
the capitalized amount thereof, determined in accordance with GAAP, and the
stated maturity thereof shall be the date of the last payment of rent or any
other amount due under such lease prior to the first date upon which such lease
may be terminated by the lessee without payment of a penalty.

     "Cash Equivalent Investment" means, at any time:
      --------------------------

          (a) any evidence of Indebtedness, maturing not more than eighteen
     months after such time, issued or guaranteed by the United States
     Government;

          (b) commercial paper, maturing not more than nine months from the date
     of issue, which is issued by:

               (i)  a corporation (other than an Affiliate of any Credit Party)
          organized under the laws of any state of the United States or of the
          District of Columbia and rated A-l by Standard & Poor's Corporation or
          P-l by Moody's Investors Service, Inc., or

               (ii) any Lender (or its holding company);

          (c) any certificate of deposit or bankers acceptance, maturing not
     more than one year after such time, which is issued by either:

               (i)  a commercial banking institution that is a member of the
          Federal Reserve System and has a combined capital and surplus and
          undivided profits of not less than $500,000,000, or

               (ii) any Lender; or

          (d) any repurchase agreement entered into with any Lender (or other
     commercial banking institution of the stature referred to in clause (c)(i))
                                                                  --------------
     which:

               (i)  is secured by a fully perfected security interest in any
          obligation of the type described in any of clauses (a) through (c);
                                                     -----------         ---
          and

                                      -4-

<PAGE>

               (ii) has a market value at the time such repurchase agreement is
          entered into of not less than 100% of the repurchase obligation of
          such Lender (or other commercial banking institution) thereunder.

     "CERCLA" means the Comprehensive Environmental Response, Compensation and
      ------
Liability Act of 1980, as amended.

     "CERCLIS" means the Comprehensive Environmental Response Compensation
      -------
Liability Information System List.

     "Change of Control" means (a) any Person or any two or more Persons acting
      -----------------
in concert (in any such case, excluding the Original Closing Date Stockholders
and their Affiliates) acquiring beneficial ownership (within the meaning of Rule
13d-3 of the Securities and Exchange Commission under the Exchange Act),
directly or indirectly, of capital stock (or other securities convertible into
such capital stock) of the Borrower representing 35% or more of the combined
voting power of all capital stock of the Borrower entitled to vote in the
election of directors, or (b) during any period of 12 consecutive calendar
months, the ceasing of those individuals (the "Continuing Directors") who (i)
                                               --------------------
were directors of the Borrower, on the first day of each such period or (ii)
subsequently became directors of the Borrower, and whose initial election or
initial nomination for election subsequent to that date was approved either by
(A) a majority of the Continuing Directors then on the board of directors of the
Borrower or (B) the shareholders who, in accordance with the provisions of the
Articles of Incorporation of the Borrower, are entitled to elect such director,
to constitute a majority of the board of directors of the Borrower.

     "Code" means the Internal Revenue Code of 1986, and regulations promulgated
      ----
thereunder.

     "Collateral" means all property and interests in property and proceeds
      ----------
thereof now owned or hereafter acquired by any Credit Party in or upon which a
Lien now or hereafter exists in favor of the Agent on behalf of the Lenders,
whether under this Agreement, Collateral Document or under any other documents
executed by any such Credit Party and delivered to the Agent.

     "Collateral Documents" means, collectively, (a) the Borrower Security
      --------------------
Agreement, the Guarantor Security Agreement, the Guaranty, the Borrower Pledge
Agreement, the Guarantor Pledge Agreement, the Reaffirmation of Collateral
Documents, the Intellectual Property Assignments and all other security
agreements, pledge agreements, assignments, guarantees and other similar
agreements between a Credit Party and the Agent for the benefit of the Lenders
now or hereafter delivered to the Lenders or the Agent pursuant to or in
connection with the transactions contemplated hereby, and all financing
statements (or comparable documents now or hereafter filed in accordance with
the Uniform Commercial Code or comparable law) against a Credit Party as debtor
in favor of the Agent, for the benefit of the Lenders, as secured party and

                                      -5-

<PAGE>

(b) any amendments, restatements, supplements, modifications, renewals,
replacements, consolidations, substitutions and extensions of any of the
foregoing.

     "Consideration" means with respect to any Permitted Acquisition, the
      -------------
aggregate of (i) the cash paid by the Borrower or any of its Subsidiaries,
directly or indirectly, to the seller in connection therewith, (ii) the
Indebtedness incurred or assumed by the Borrower or any of its Subsidiaries
(including, without limitation, Indebtedness of a person becoming a Credit Party
in connection with a Permitted Acquisition, which Indebtedness continues to
exist following the consummation of such Permitted Acquisition), whether in
favor of the seller or otherwise and whether fixed or contingent, in connection
therewith, (iii) any guaranty given or incurred by the Borrower or any of its
Subsidiaries in connection therewith, (iv) the fair market value of any equity
issued by the Borrower, in connection therewith, and (v) any other consideration
given or obligation incurred by the Borrower or any of its Subsidiaries in
connection therewith; provided, however, that the amount of any deferred
                      --------  -------
earn-out payments to any seller not required by GAAP to be reflected as a
liability on the consolidated balance sheet of the Borrower as of the date of
consummation of such Permitted Acquisition shall be excluded from the
determination under clauses (i) through (v) of this definition.

     "Consolidated Interest Expenses" means, for any period, the total interest
      ------------------------------
expense (including that attributable to capital leases) of the Borrower and its
Subsidiaries on a consolidated basis with respect to all outstanding
Indebtedness of the Borrower and its Subsidiaries, including, without
limitation, all commissions, discounts and other fees and charges owed with
respect to letters of credit and unused line fees but excluding any of the
foregoing to the extent it constitutes a non-cash item.

     "Contingent Liability" means any agreement, undertaking or arrangement
      --------------------
which would be reflected in a footnote to a balance sheet as a contingent
liability in accordance with GAAP.

     "Continuation/Conversion Notice" means a notice of continuation or
      ------------------------------
conversion and certificate duly executed by an Authorized Officer of the
Borrower, substantially in the form of Exhibit C hereto.

     "Controlled Group" means all members of a controlled group of corporations
      ----------------
and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414(b) or 414(c) of the Code or
Section 4001 of ERISA.

     "Credit Party" means the Borrower and any Subsidiary of the Borrower party
      ------------
to a Loan Document.

     "Default" means any condition, occurrence or event which, after notice or
      -------
lapse of time or both, would constitute an Event of Default.

     "Dollar" and the sign "$" mean lawful money of the United States.
      ------                -

                                      -6-

<PAGE>

     "Domestic Office" means, relative to any Lender, the office of such Lender
      ---------------
designated as such below its signature hereto or designated in the Lender
Assignment Agreement or such other office of a Lender (or any successor or
assign of such Lender) within the United States as may be designated from time
to time by notice from such Lender, as the case may be, to each other Person
party hereto. A Lender may have separate Domestic Offices for purposes of
making, maintaining or continuing, as the case may be, Base Rate Loans.

     "EBITDA" means, for any applicable computation period, the Borrower's Net
      ------
Income on a consolidated basis from continuing operations, plus (a) income and
franchise taxes paid or accrued during such period, (b) interest expenses paid
or accrued during such period, and (c) amortization and depreciation deducted in
determining Net Income for such period. For the purpose of determining
compliance with Section 7.2.4(b) and (c), "EBITDA" shall be as adjusted pursuant
                ------------------------
to the formula described in Schedule 2.
                            ----------

     "Effective Maturity Date" is defined in Section 3.1.3.
      -----------------------                -------------

     "Employment Agreement" means any employment agreement entered into by any
      --------------------
Provider, who is a shareholder of a Practice, with such Practice.

     "Environmental Laws" means all applicable federal, state or local statutes,
      ------------------
laws, ordinances, codes, rules, regulations and guidelines (including consent
decrees and administrative orders) relating to public health and safety and
protection of the environment.

     "Equity Provider" means any individual or group of individuals who had an
      ---------------
equity interest in (i) a Practice acquired in a Permitted Acquisition, on the
date of such Permitted Acquisition, or (ii) any other Practice with which the
Borrower has a Service Agreement, on the date of the execution of any such
Service Agreement."

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
      -----
amended, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time. References
to sections of ERISA also refer to any successor sections.

     "Event of Default" is defined in Section 8.1.
      ----------------                -----------

     "Extension Effective Date" is defined in Section 3.1.3.
      ------------------------                -------------

     "Extension Response Date" is defined in Section 3.1.3.
      -----------------------                -------------

     "Extension Request" is defined in Section 3.1.3.
      -----------------                -------------

     "Federal Funds Effective Rate" means, for any day, an interest rate per
      ----------------------------
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such

                                      -7-

<PAGE>

day (or, if such day is not a Business Day, for the immediately preceding
Business Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day which is a Business Day, the average of the quotations
at approximately 10:00 a.m. (Chicago time) on such day on such transactions
received by Agent from three Federal funds brokers of recognized standing
selected by the Agent in its sole discretion.

     "Fiscal Quarter" means any quarter of a Fiscal Year.
      --------------

     "Fiscal Year" means any period of twelve consecutive calendar months ending
      -----------
on December 31; references to a Fiscal Year with a number corresponding to any
calendar year (e.g. the "2000 Fiscal Year") refer to the Fiscal Year ending on
the December 31 occurring during such calendar year.

     "Fixed Charges" means, with respect to the Borrower and its Subsidiaries on
      -------------
a consolidated basis, as of any date of determination, (a) Consolidated Interest
Expenses for the period of four fiscal quarters ending on the date of
determination, and (b) scheduled principal payments on Indebtedness required to
be made in such period and (c) 10% of the outstanding principal amount of the
Loans and (d) rent expenses incurred by the Borrower and its Subsidiaries.

     "Fraud and Abuse Laws" means Section 1128B(b) of the Social Security Act,
      --------------------
42 U.S.C. Section 1320a-7b(b) and Section 1877 of the Social Security Act, 42
U.S.C. Section 1395nn, each as from time to time amended; any successor
statute(s) thereto; all rules and regulations promulgated thereunder; any other
federal or state law concerning the referral of patients by physicians; and any
law, rule, regulation or successor thereto concerning or related to false or
fraudulent billing for medical goods or services.

     "F.R.S. Board" means the Board of Governors of the Federal Reserve System
      ------------
or any successor thereto.

     "GAAP" means generally accepted accounting principles set forth from time
      ----
to time in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of
determination; provided, however, that for purposes of all computations required
               --------  -------
to be made with respect to compliance by the Borrower with Sections 7.2.4,
                                                           --------------
8.1.11 and 8.1.12 such term shall mean generally accepted accounting principles
------     ------
as in effect on the date of this Agreement, applied in a manner consistent with
those used in preparing the financial statements referred to in Section 6.5.
                                                                -----------

     "Guarantor" means each Person party to a Guaranty.
      ---------

                                      -8-

<PAGE>

     "Guarantor Pledge Agreement" means the Pledge Agreement substantially in
      --------------------------
the form of Exhibit F-2 hereto, as amended, supplemented, restated or otherwise
modified from time to time.

     "Guarantor Security Agreement" means the Security Agreement substantially
      ----------------------------
in the form of Exhibit G-2 hereto, as amended, supplemented, restated or
otherwise modified from time to time.

     "Guaranty" means, collectively, the Guaranty substantially in the form of
      --------
Exhibit E hereto, as amended, supplemented, restated or otherwise modified from
time to time.

     "Hazardous Material" means
      ------------------

          (a) any "hazardous substance", as defined by CERCLA;

          (b) any "hazardous waste", as defined by the Resource Conservation and
     Recovery Act, as amended;

          (c) any petroleum product; or

          (d) any pollutant or contaminant or hazardous, dangerous or toxic
     chemical, material or substance within the meaning of any other applicable
     federal, state or local law, regulation, ordinance or requirement
     (including consent decrees and administrative orders) relating to or
     imposing liability or standards of conduct concerning any medical,
     hazardous, toxic or dangerous waste, substance or material, all as amended
     or hereafter amended.

     "HCFA" shall mean the United States Health Care Financing Administration
      ----
and any successor thereto.

     "Hedging Agreements" means any Interest Rate Agreement, foreign currency
      ------------------
exchange agreement, commodity price protection agreement or other interest or
currency exchange rate or commodity price hedging agreement, provided that such
agreement is not entered into for speculative purposes, is entered into with the
Agent or a Lender.

     "herein", "hereof", "hereto", "hereunder" and similar terms contained in
      ------    ------    ------    ---------
this Agreement or any other Loan Document refer to this Agreement or such other
Loan Document, as the case may be, as a whole and not to any particular Section,
paragraph or provision of this Agreement or such other Loan Document.

     "Impermissible Qualification" means, relative to the opinion or
      ---------------------------
certification of any independent public accountant as to any financial statement
of any Credit Party, any qualification or exception to such opinion or
certification:

          (a) which is of a "going concern" or similar nature;

                                      -9-

<PAGE>

          (b) which relates to the limited scope of examination of matters
     relevant to such financial statement; or

          (c) which relates to the treatment or classification of any item in
     such financial statement and which, as a condition to its removal, would
     require an adjustment to such item the effect of which would be to cause
     such Credit Party to be in default of any of its obligations under Section
                                                                        -------
     7.2.4.
     -----

     "including" means including without limiting the generality of any
      ---------
description preceding such term, and, for purposes of this Agreement and each
other Loan Document, the parties hereto agree that the rule of ejusdem generis
shall not be applicable to limit a general statement, which is followed by or
referable to an enumeration of specific matters, to matters similar to the
matters specifically mentioned.

     "Indebtedness" of any Person means, without duplication:
      ------------

          (a) all obligations of such Person for borrowed money and all
     obligations of such Person evidenced by bonds, debentures, notes or other
     similar instruments;

          (b) all obligations, contingent or otherwise, relative to the face
     amount of all letters of credit (including Letters of Credit), whether or
     not drawn, and banker's acceptances issued for the account of such Person;

          (c) all obligations of such Person as lessee under leases which have
     been or should be, in accordance with GAAP, recorded as Capitalized Lease
     Liabilities;

          (d) all other liabilities for borrowed money in accordance with GAAP
     included on the liability side of the balance sheet of such Person as of
     the date at which Indebtedness is to be determined;

          (e) net liabilities of such Person under all Hedging Agreements;

          (f) whether or not so included as liabilities in accordance with GAAP,
     all obligations of such Person to pay the deferred purchase price of
     property or services, and indebtedness (excluding prepaid interest thereon)
     secured by a Lien on property owned or being purchased by such Person
     (including indebtedness arising under conditional sales or other title
     retention agreements), whether or not such indebtedness shall have been
     assumed by such Person or is limited in recourse; and

          (g) all Contingent Liabilities of such Person in respect of any of the
     foregoing.

For all purposes of this Agreement, the Indebtedness of any Person shall include
the Indebtedness of any partnership or joint venture in which such Person is a
general partner or a joint venturer, except to the extent payments have been
made or are required to be made with

                                      -10-

<PAGE>

respect to such Indebtedness solely by a general partner or a joint venture
partner other than a Subsidiary.

     "Indemnified Liabilities" is defined in Section 10.4.
      -----------------------                ------------

     "Indemnified Parties" is defined in Section 10.4.
      -------------------                ------------

     "Intercompany Loans" is defined in Section 7.2.2.
      -------------------               -------------

     "Intercompany Notes" is defined in Section 7.2.2.
      ------------------                -------------

     "Intellectual Property Assignment" means that certain Intellectual Property
      --------------------------------
Assignment in form and substance satisfactory to the Agent, duly executed and
delivered by a Credit Party in favor of the Agent, for the benefit of itself and
the Lenders, as the same may be amended, supplemented or otherwise modified from
time to time.

     "Interest Period" means, relative to any LIBO Rate Loans, the period
      ---------------
beginning on (and including) the date on which such LIBO Rate Loan is made or
continued as, or converted into, a LIBO Rate Loan pursuant to Section 2.3 or 2.4
                                                              -----------    ---
and shall end on (but exclude) either (i) the day one week subsequent to such
day, or (ii) the day which numerically corresponds to such date one, two, three
or six months thereafter (or, if such month has no numerically corresponding
day, on the last Business Day of such month), as the Borrower may select in its
relevant notice pursuant to Section 2.3 or 2.4; provided, however, that
                            -----------    ---  --------  -------

          (a) the Borrower shall not be permitted to select Interest Periods to
     be in effect at any one time which have expiration dates occurring on more
     than seven different dates;

          (b) Interest Periods commencing on the same date for Loans comprising
     part of the same Borrowing shall be of the same duration;

          (c) if such Interest Period would otherwise end on a day which is not
     a Business Day, such Interest Period shall end on the next following
     Business Day (unless such next following Business Day is the first Business
     Day of the immediately succeeding calendar month, in which case such
     Interest Period shall end on the Business Day next preceding such
     numerically corresponding day);

          (d) no Interest Period with respect to Loans made prior to the
     Revolving Commitment Termination Date may end later than the date set forth
     in clause (a) of the definition of "Revolving Commitment Termination Date";
        ----------

          (e) no Interest Period for any Loan outstanding on and after the
     Revolving Commitment Termination Date shall extend beyond the Maturity
     Date; and

                                      -11-

<PAGE>

          (f) no Interest Period applicable to a Loan outstanding on and after
     the Revolving Commitment Termination Date, or portion thereof, shall extend
     beyond any date upon which is due any scheduled principal payment in
     respect of the Loans unless the aggregate principal amount of Loans
     represented by LIBO Rate Loans having Interest Periods that will expire on
     or before such date, equals or exceeds the amount of such principal
     payment.

          "Interest Rate Agreement" means any interest rate swap agreement,
           -----------------------
     interest rate cap agreement, interest rate collar agreement or other
     similar agreement or arrangement designed to protect the Borrower or any of
     its Subsidiaries against fluctuations in interest rates.

          "Investment" means, relative to any Person,
           ----------

          (a) any loan or advance made by such Person to any other Person
     (excluding commission, travel and similar advances to officers and
     employees made in the ordinary course of business);

          (b) any Contingent Liability of such Person; and

          (c) any ownership or similar interest held by such Person in any other
     Person.

The amount of any Investment shall be the original principal or capital amount
thereof less all returns of principal or equity thereon (and without adjustment
by reason of the financial condition of such other Person) and shall, if made by
the transfer or exchange of property other than cash, be deemed to have been
made in an original principal or capital amount equal to the fair market value
of such property.

     "LC Notice" has the meaning specified in Section 2.7.
      ---------

     "Lender Assignment Agreement" means a Lender Assignment Agreement
      ---------------------------
substantially in the form of Exhibit D hereto.

     "Lenders" is defined in the preamble.
      -------                    --------

     "Letter of Credit" shall mean a Letter of Credit that is issued pursuant to
      ----------------
Section 2.7.
-----------

     "Letter of Credit Cash Collateral Account" has the meaning specified in
      ---------------------------------------
Section 8.4.

     "Letter of Credit Expiry Date" shall mean the date which is five Business
      ----------------------------
Days prior to the Revolving Commitment Termination Date.

     "Letter of Credit Issuer" shall mean National City.
      -----------------------

                                      -12-

<PAGE>

     "Letter of Credit Obligations" shall mean, as at the time of determination
      ----------------------------
thereof, the sum of (a) the aggregate amount of all unpaid and outstanding
reimbursement obligations and (b) without duplication, the aggregate stated
amount at such time of Letters of Credit then outstanding and undrawn (as such
aggregate stated amount shall be adjusted, from time to time, as a result of
drawings, the issuance of Letters of Credit, or otherwise).

     "Letter of Credit Sublimit" shall mean an aggregate amount of $5,000,000.
      -------------------------

     "LIBO Rate" is defined in Section 3.2.1.
      ---------                -------------

     "LIBO Rate Loan" means a Loan bearing interest, at all times during an
      --------------
Interest Period applicable to such Loan, at a fixed rate of interest determined
by reference to the LIBO Rate (Reserve Adjusted).

     "LIBO Rate (Reserve Adjusted)" is defined in Section 3.2.1.
      ----------------------------                -------------

     "LIBOR Office" means, relative to any Lender, the office of such Lender
      ------------
designated as such below its signature hereto or designated in the Lender
Assignment Agreement or such other office of a Lender as designated from time to
time by notice from such Lender to the Borrower and the Agent, whether or not
outside the United States, which shall be making or maintaining LIBO Rate Loans
of such Lender hereunder.

     "LIBOR Reserve Percentage" is defined in Section 3.2.1.
      ------------------------                -------------

     "Lien" means any security interest, mortgage, pledge, hypothecation,
      ----
assignment, deposit arrangement, encumbrance, lien (statutory or otherwise),
charge against or interest in property to secure payment of a debt or
performance of an obligation or other priority or preferential arrangement of
any kind or nature whatsoever.

     "Loan" is defined in Section 2.1.1.
      ----                -------------

     "Loan Document" means this Agreement, the Notes, each Collateral Document,
      -------------
each Hedging Agreement and each other document delivered pursuant to Section
                                                                     -------
7.1.12.
------

     "Majority Lenders" means Lenders holding at least 50.1% of the then
      ----------------
aggregate outstanding principal amount of all of the Notes then held by the
Lenders, or, if no such principal amount is then outstanding, Lenders having at
least 50.1% of the Revolving Commitments.

     "Material Adverse Effect" means a material adverse effect on the financial
      -----------------------
condition, operations, assets, business, properties or prospects of the Borrower
and its Subsidiaries taken as a whole or the Borrower and its Subsidiaries,
taken as a whole.

     "Maturity Date" means the earliest of:
      -------------

                                      -13-

<PAGE>

          (a) June 30, 2003; or

          (b) the date on which any Termination Event occurs.

     "Medicaid Certification" means a certification by a state agency or other
      ----------------------
entity responsible for certifying Medicaid providers and suppliers that a health
care provider or supplier is in compliance with all the conditions of
participation set forth in the Medicaid Regulations.

     "Medicaid Provider Agreement" means an agreement entered into between HCFA
      ---------------------------
or a state agency or other such entity administering the Medicaid program and a
health care provider or supplier under which the health care provider or
supplier agrees to provide services for Medicaid patients in accordance with the
terms of the agreement and Medicaid Regulations.

     "Medicaid Regulations" means, collectively, (i) all federal statutes
      --------------------
(whether set forth in Title XIX of the Social Security Act or elsewhere)
affecting the medical assistance program established by Title XIX of the Social
Security Act and any successor statute(s); (ii) all applicable provisions of all
federal rules, regulations, manuals and orders of all governmental authorities
promulgated pursuant to or in connection with the statutes described in clause
(i) above and all federal administrative, reimbursement and other guidelines of
all governmental authorities having the force of law promulgated pursuant to or
in connection with the statutes described in clause (i) above; (iii) all state
statutes and plans for medical assistance enacted in connection with the
statutes and provisions described in clauses (i) and (ii) above; and (iv) all
applicable provisions of all rules, regulations, manuals and orders of all
governmental authorities promulgated pursuant to or in connection with the
statutes described in clause (iii) above and all state administrative,
reimbursement and other guidelines of all governmental authorities having the
force of law promulgated pursuant to or in connection with the statutes
described in clause (iii) above, in each case as may be amended, supplemented or
other wise modified from time to time.

     "Medicare Certification" means certification by HCFA or a state agency or
      ----------------------
entity under contract with HCFA that the health care operation is in compliance
with all the conditions of participation set forth in the Medicare Regulation.

     "Medicare Provider Agreement" means an agreement entered into between HCFA
      ---------------------------
or a state agency or other such entity administering the Medicare program and a
health care provider or supplier under which the health care provider or
supplier agrees to provide services for Medicare patients in accordance with the
terms of the agreement and Medicare Regulations.

     "Medicare Regulations" means, collectively, all federal statues (whether
      --------------------
set forth in Title XVIII of the Social Security Act or elsewhere) affecting the
health insurance program for the aged and disabled established by Title XVIII of
the Social Security Act and any successor statute(s); together with all
applicable provisions of all rules, regulations, manuals and orders and
administrative, reimbursement and other guidelines of all governmental
authorities (including without limitation, the United States Department of
Health and Human Services ("HHS"),

                                      -14-

<PAGE>

HCFA, the Office of the Inspector General for HHS, or any person succeeding to
the functions of any of the foregoing) promulgated pursuant to or in connection
with any of the foregoing having the force of law, as each may be amended,
supplemented or otherwise modified from time to time.

     "National City" means National City Bank of Michigan/Illinois, acting in
      -------------
its individual capacity.

     "Net Available Proceeds" means (a) with respect to any Asset Disposition,
      ----------------------
the sum of cash or readily marketable cash equivalents received (including by
way of a cash generating sale or discounting of a note or account receivable)
therefrom, whether at the time of such disposition or subsequent thereto, or (b)
with respect to any sale or issuance of any debt or equity securities of the
Borrower or any Subsidiary, cash or readily marketable cash equivalents received
therefrom, whether at the time of such disposition or subsequent thereto, net,
in either case, of all legal, title and recording tax expenses, commissions and
other fees and all costs and expenses incurred and all federal, state, local and
other taxes required to be accrued as a liability as a consequence of such
transactions and, in the case of an Asset Disposition, net of all payments made
by the Borrower or any of its Subsidiaries, including any prepayment premiums,
on any Indebtedness which is secured by such assets pursuant to a Permitted Lien
upon or with respect to such assets or which must, by the terms of such Lien, in
order to obtain a necessary consent to such Asset Disposition, or by applicable
law, be repaid out of the proceeds from such Asset Disposition.

     "Net Income" means, for any computation period, with respect to the
      ----------
Borrower, on a consolidated basis, cumulative net income earned during such
period as determined in accordance with GAAP (other than net income from any
Subsidiary which is restricted from declaring or paying dividends, distributions
or otherwise advancing funds to its borrower whether by contract or otherwise,
except to the extent of any such net income actually received which is not in
violation of the applicable restriction). Net Income shall be determined without
giving effect to any non-cash, non-recurring loss.

     "Net Worth" means, for any computation period, the consolidated
      ---------
shareholders' equity of the Borrower determined in accordance with GAAP, which
consolidated shareholders' equity shall be deemed to include the preferred stock
of the Borrower.

     "Non-Wholly-Owned ASC Subsidiary" means an ASC Subsidiary in which the
      -------------------------------
Borrower or a Subsidiary of the Borrower owns less than 100% of the equity
interests; provided, however, it is understood that the Borrower or a Subsidiary
           --------  -------
of the Borrower will at all times own at least 50.1% of the equity interests of
each ASC Subsidiary.

     "Note" means a promissory note of the Borrower payable to any Lender, in
      ----
the form of Exhibit A hereto (as such promissory note may be amended, endorsed
            ---------
or otherwise modified from time to time), evidencing the aggregate Indebtedness
of the Borrower to such Lender

                                      -15-

<PAGE>

resulting from outstanding Loans, and also means all other promissory notes
accepted from time to time in substitution therefor or renewal thereof.

     "Obligations" means all obligations (monetary or otherwise) of each Credit
      -----------
Party arising under or in connection with this Agreement, the Notes, the Letters
of Credit and each other Loan Document.

     "Organizational Document" means, relative to any Subsidiary, its
      -----------------------
certificate of incorporation, its by-laws, its limited liability company
agreement, partnership agreement and all shareholder agreements, voting trusts
and similar arrangements applicable to any of its authorized shares of capital
stock, partnership interests, or membership interests, as the case may be.

     "Original Closing Date" means June 28, 2000.
      ---------------------

     "Original Closing Date Stockholders" means, collectively, the stockholders
      ----------------------------------
of record of the Borrower as of the Original Closing Date listed on Schedule 1.
                                                                    ----------

     "Original Credit Agreement" has the meaning specified in the Recitals
      -------------------------
hereto.

     "Participant" is defined in Section 10.11.
      -----------                -------------

     "PBGC" means the Pension Benefit Guaranty Corporation and any entity
      ----
succeeding to any or all of its functions under ERISA.

     "Pension Plan" means a "pension plan", as such term is defined in section
      ------------
3(2) of ERISA, which is subject to Title IV of ERISA (other than a multiemployer
plan as defined in section 4001(a)(3) of ERISA), and to which the Borrower or
any corporation, trade or business that is, along with the Borrower, a member of
a Controlled Group, may have liability, including any liability by reason of
having been a substantial employer within the meaning of section 4063 of ERISA
at any time during the preceding five years, or by reason of being deemed to be
a contributing sponsor under section 4069 of ERISA.

     "Percentage" means, relative to any Lender, the percentage set forth
      ----------
opposite its name on Schedule 10.1 hereto or set forth in the Lender Assignment
                     -------------
Agreement, as such percentage may be adjusted from time to time pursuant to
Lender Assignment Agreement(s) executed by such Lender and its Assignee
Lender(s) and delivered pursuant to Section 10.11.
                                    -------------

     "Permitted Acquisition" means the purchase (by asset purchase, stock
      ---------------------
purchase, membership interest purchase, other equity interest purchase, merger
or otherwise, subject to the other requirements of this definition set forth
below) by the Borrower or a Wholly-Owned Subsidiary of the Borrower (or, in the
case of the purchase of an ASC Practice, by the Borrower or a Subsidiary of the
Borrower) of the assets, stock, membership interests or other equity interests
of a Practice (it being acknowledged that medical records and certain other
professional

                                      -16-

<PAGE>

assets that are required by law to be owned by a Provider are not acquired in
these transactions), which purchase meets the following criteria:

          (a) no Default or Event of Default shall have occurred or be
     continuing both before and after giving effect to such acquisition;

          (b) in the event the Borrower's Total Leverage Ratio on a pro forma
     basis (after giving effect to the Permitted Acquisition) is greater than or
     equal to 2.25:1.0, the Borrower must be able to comply on a pro forma basis
     with all of the covenants in this Agreement;

          (c) in the event the Borrower's Total Leverage Ratio on a pro forma
     basis (after giving effect to the Permitted Acquisition) is greater than
     2.25:1.0 the aggregate Consideration (including any Indebtedness pursuant
     to Section 7.2.2(h), (i), (j) and (k) relating to such Permitted
        ----------------------------------
     Acquisitions) in connection with such Permitted Acquisition shall not
     exceed $10,000,000 individually and $30,000,000 for all Permitted
     Acquisitions (without giving effect to the transaction described on
     Schedule 1.1.) consummated within the previous twelve (12) month period
     ------------
     when aggregated with Investments made by the Borrower or any of its
     Subsidiaries permitted under Section 7.2.5(k) during such period;
                                  ----------------

          (d) the acquisition shall have been of the assets and/or working
     capital of a Practice or, if for stock or other equity interest in a
     Practice, shall be for not less than 50.1% of the equity interest therein,
     shall (other than with respect to an ASC Practice) either, to the extent
     permitted by applicable law, be merged with and into the Borrower or a
     Wholly-Owned Subsidiary of the Borrower, or be a Wholly-Owned Subsidiary of
     the Borrower;

          (e) the acquired Practice, on a pro forma basis shall have positive
     EBITDA for the period of four fiscal quarters ending on the date of any
     such acquisition;

          (f) the Borrower shall have delivered to the Agent, not later than 30
     days after the closing of the acquisition (i) pro forma financial
     statements or certificates demonstrating continued compliance with all
     covenants in this Agreement following the inclusion of the target in the
     Borrower's consolidated enterprise, (ii) a copy of the related acquisition
     agreement and Service Agreement and each Employment Agreement (all to the
     extent applicable) provided, however, in the event the approval of the
                        --------  -------
     Lenders is required for any acquisition, the Borrower shall have delivered
     to the Agent the documents contemplated by clauses (i) and (ii) of this
                                                --------------------
     clause (f) not later than 15 days prior to the closing of such acquisition
     ----------
     (with the documents contemplated in (ii) being in draft form); and

          (g) the Borrower shall have delivered to the Agent, not later than 30
     days after the closing of the acquisition a fully executed Agreed EBITDA
     Form.

                                      -17-

<PAGE>

     "Permitted Asset Disposition" has the meaning specified on Exhibit K
      ---------------------------                               ---------
hereto.

     "Permitted Equity Ownership Sale" means the sale, transfer or other
      -------------------------------
disposition of the outstanding capital stock, membership interest or other
equity interests in an ASC Subsidiary or the issuance of additional equity
interests in an ASC Subsidiary, so long as:

          (i)   after giving effect to such sale, a Credit Party shall own not
     less than 50.1% of the equity interests (including securities convertible
     into equity interests) of such ASC Subsidiary;

          (ii)  the equity interests in such ASC Subsidiary which are held by
     the Borrower or a Subsidiary of the Borrower after such sale continue to be
     pledged to the Lenders pursuant to either the Borrower Pledge Agreement or
     Subsidiary Guarantor Pledge Agreement, as the case may be;

          (iii) the chief financial officer or chief executive officer of the
     Borrower shall have delivered a certificate, dated the date of such sale,
     to the Agent certifying (a) that no Default or Event of Default exists or
     would result from such sale and (b) pro forma financial statements
     demonstrating compliance with Section 7.2.4 for the twelve-month period
                                   -------------
     following such sale;

          (iv)  after giving effect to a Permitted Equity Ownership Sale, the
     Adjusted Equity Ownership EBITDA Amount (as set forth in an Adjusted Equity
     Ownership EBITDA Amount Certificate (in the form of Exhibit J hereto)
                                                         ---------
     delivered to the Agent on or prior to the date of such Permitted Equity
     Ownership Sale) is greater than $1; and

          (v)   the proceeds (other than any proceeds received by a minority
     equity holder) of any such sale are applied in the manner set forth in
     Section 2.2.2(c).
     ----------------

          Upon the consummation of any Permitted Equity Ownership Sale and at
     the request of the Borrower, the ASC Subsidiary which has become a
     Non-Wholly Owned ASC Subsidiary as a result of such Permitted Equity
     Ownership Sale shall be released from the Guaranty, the Guarantor Pledge
     Agreement and Guarantor Security Agreement and the liens of the Lenders on
     the assets of such ASC Subsidiary shall be released (except to the extent
     of the pledge to the Lenders of the equity interests of such ASC Subsidiary
     retained by the Borrower or a Subsidiary of the Borrower) and the Agent is
     hereby authorized to execute and file the necessary release documentation
     to reflect such release.

     "Permitted Liens" means those liens listed in Section 7.2.3.
      ---------------                              -------------

     "Person" means any natural person, corporation, partnership, limited
      ------
liability company, firm, association, trust, government, governmental agency or
any other entity, whether acting in an individual, fiduciary or other capacity.

                                      -18-

<PAGE>

     "Plan" means any Pension Plan or Welfare Plan.
      ----

     "Pledged Collateral" has the meaning specified in the Borrower Pledge
      ------------------
Agreement and the Guarantor Pledge Agreement.

     "Practice" means (i) any ASP Business, (ii) any business that sells, leases
      --------
or provides medical equipment to doctors, hospitals or other health
organizations, and (iii) any medical or ophthalmology practice, ambulatory
surgery center or management service center, optometry practice, optical
dispensory or optical laboratory, vision correction centers (including, without
limitation, laser vision correction centers), companies that own, operate and/or
manage vision correction centers (including, without limitation, laser vision
correction centers), clinical research organizations or entities engaged in the
provision of clinical research and/or sight management services to ophthalmic
device and/or pharmaceutical companies, or reasonable extensions thereof
(including any company which leases or sells equipment or provides services to
any of the foregoing), at a single location or various locations. Whenever in
this Agreement "Practice" is used in describing an acquisition by the Borrower
or a Subsidiary of the Borrower of equity interests, such reference is to the
acquisition of the assets used in the operation of the Practice that can
lawfully be acquired by the Borrower or a Subsidiary of the Borrower or to the
acquisition of the equity interests of a Person that owns, as of the time of
purchase, only those assets that can be lawfully acquired by the Borrower or a
Subsidiary of the Borrower.

     "Provider" means any Person who performs professional medical services for
      --------
a Practice that is either managed by a Credit Party or the assets of which are
owned by a Credit Party.

     "Quarterly EBITDA Certificate" is defined in Schedule 2.
      ----------------------------                ----------

     "Quarterly Payment Date" means the last day of each March, June, September,
      ----------------------
and December or, if any such day is not a Business Day, the next succeeding
Business Day.

     "Reaffirmation of Collateral Documents" means that certain Reaffirmation of
      -------------------------------------
Collateral Documents substantially in the form attached hereto as Exhibit I.
                                                                  ---------

     "Release" means a "release", as such term is defined in CERCLA.
      -------

     "Replacement Lender" is defined in Section 4.12.
      ------------------                ------------

     "Reporting Person" shall mean, The Eye Center, Inc., NovaMed Eye Surgery
      ----------------
Center of North County, LLC, Illinois Eye Specialist, LTD, NovaMed Eye Surgery
Center of Maryville, L.L.C., Dominion Eye Associates, P.C., NovaMed of Richmond,
Inc., NovaMed Management of Kansas City, Inc., NovaMed Eye Surgery Center
(Plaza) L.L.C., NovaMed Surgery Center of Overland Park, L.L.C., SureVision Eye
Centers, LLC, Surevision Eye Centers Midwest LLC, Hunkler Eye Centers, P.C. and
each Practice acquired by the Borrower or a Wholly-Owned Subsidiary of the
Borrower pursuant to a Permitted Acquisition since the Original Closing Date.

                                      -19-

<PAGE>

     "Required Lenders" means, (i) at any time less than three Lenders are a
      ----------------
party to this Agreement, all Lenders and (ii) at any other time, Lenders holding
at least 66-2/3% of the then aggregate outstanding principal amount of all of
the Notes then held by the Lenders, or, if no such principal amount is then
outstanding, Lenders having at least 66-2/3% of the Revolving Commitments.

     "Resource Conservation and Recovery Act" means the Resource Conservation
      ---------------------------------------
and Recovery Act, 42 U.S.C. Section 6901, et seq., as in effect from time to
time.

     "Revolving Commitment" means, relative to any Lender, such Lender's
      --------------------
obligation to make Loans pursuant to Section 2.1.1.
                                     -------------

     "Revolving Commitment Amount" means, on any date, $50,000,000. The
      ---------------------------
Revolving Commitment Amount then in effect may be reduced from time to time
pursuant to Section 2.2.
            -----------

     "Revolving Commitment Termination Date" means the earliest of
      -------------------------------------

          (a) June 30, 2003;

          (b) the date on which the Revolving Commitment Amount is terminated in
     full or reduced to zero pursuant to Section 2.2; and
                                         -----------

          (c) the date on which any Termination Event occurs.

Upon the occurrence of any event described in clause (b) or (c), the Revolving
                                              ----------    ---
Commitments shall terminate automatically and without further action.

     "Service Agreement" means any of (i) the Service Agreements listed on
      -----------------
Schedule 6.18 and (ii) any similar agreement entered into by any Credit Party on
-------------
and after the Original Closing Date in each case as any of such agreements may
from time to time be amended, restated, supplemented or otherwise modified.

     "Senior Debt" shall mean Indebtedness of the type described in clauses (a),
      -----------                                                   -----------
(c) and (d) of the definition "Indebtedness" (other than Subordinated Debt) of
---     ---
the Borrower on a consolidated basis.

     "Solvent" means, when used with respect to a Person, that (a) the fair
      -------
saleable value of the assets of such Person is in excess of the total amount of
the present value of its liabilities (including for purposes of this definition
all liabilities whether or not reflected on a balance sheet prepared in
accordance with GAAP and whether direct or indirect, fixed or contingent,
secured or unsecured, disputed or undisputed), (b) such Person is able to pay
its debts or obligations in the ordinary course as they mature and (c) such
Person does not have unreasonably small capital to carry out its business as
conducted and as proposed to be conducted. "Solvency" shall have a correlative
meaning.

                                      -20-

<PAGE>

     "Subordinated Debt" means all Indebtedness the repayment of which is
      -----------------
subordinated, upon terms satisfactory to the Majority Lenders, in right of
payment to the payment in full in cash of all Obligations.

     "Subsidiary" of a Person means any corporation, association, partnership,
      ----------
limited liability company, joint venture or other business entity of which more
than 50% of the voting stock, membership interests or other equity interests (in
the case of Persons other than corporations), is owned or controlled directly or
indirectly by the Person, or one or more of the Subsidiaries of the Person, or a
combination thereof.

     "Taxes" is defined in Section 4.6.
      -----                -----------

     "Termination Event" means
      -----------------

          (a) the occurrence of any Default described in clauses (a) through (e)
                                                         -----------         ---
     of Section 8.1.9; or
        -------------

          (b) the occurrence and continuance of any other Event of Default and
     either

               (i)  the declaration of the Loans to be due and payable pursuant
          to Section 8.3, or
             -----------

               (ii) in the absence of such declaration, the giving of notice by
          the Agent, acting at the direction of the Required Lenders, to the
          Borrower that the Revolving Commitments have been terminated.

     "Total Funded Debt" of any Person means all Indebtedness of such Person
      -----------------
except Indebtedness specified in clauses (b) and (g) of the definition of
                                 -------------------
Indebtedness.

     "Total Leverage Ratio" has the meaning assigned to it in Section 3.2.1.
      --------------------                                    -------------

     "Type" means, relative to any Loan, the portion thereof, if any, being
      ----
maintained as a Base Rate Loan or a LIBO Rate Loan.

     "United States" or "U.S." means the United States of America, its fifty
      -------------      ----
States and the District of Columbia.

     "Welfare Plan" means a "welfare plan", as such term is defined in Section
      ------------
3(1) of ERISA.

     "Wholly-Owned Subsidiary" means any Person in which (other than directors'
      -----------------------
qualifying shares required by law) 100% of the equity interests of each class
having ordinary voting power, and 100% of the equity interests of every other
class, in each case, at the time as of which any

                                      -21-

<PAGE>

determination is being made, is owned, beneficially and of record, by the
Borrower or by one or more of the other Wholly-Owned Subsidiaries, or both.

     SECTION 1.2 Use of Defined Terms. Unless otherwise defined or the context
                 --------------------
otherwise requires, terms for which meanings are provided in this Agreement
shall have such meanings when used in the Schedules and in each Note, Borrowing
Request, Continuation/Conversion Notice, Loan Document, notice and other
communication delivered from time to time in connection with this Agreement or
any other Loan Document.

     SECTION 1.3 Cross-References. Unless otherwise specified, references in
                 ----------------
this Agreement and in each other Loan Document to any Article or Section are
references to such Article or Section of this Agreement or such other Loan
Document, as the case may be, and, unless otherwise specified, references in any
Article, Section or definition to any clause are references to such clause of
such Article, Section or definition.

     SECTION 1.4 Accounting Principles. Unless the context otherwise clearly
                 ---------------------
requires, all accounting terms not expressly defined herein shall be construed,
and all financial computations required under this Agreement shall be made, in
accordance with GAAP, consistently applied. For purposes of clarification, it
shall be understood that for any financial computation with respect to a
Non-Wholly Owned Subsidiary there shall be deducted, in accordance with GAAP,
from such financial computation the income or loss (as the case may be) of such
Non-Wholly Owned Subsidiary which constitutes the associated share of any
minority equity holder of such Non-Wholly Owned Subsidiary in such income or
loss (as the case may be).

                                   ARTICLE II

              REVOLVING COMMITMENTS, BORROWING PROCEDURES AND NOTES

     SECTION 2.1 Revolving Commitments. On the terms and subject to the
                 ---------------------
conditions of this Agreement (including Article V), each Lender severally agrees
                                        ---------
to make Loans pursuant to the Revolving Commitments described in this Section
                                                                      -------
2.1.
---

     SECTION 2.1.1 Revolving Commitment of Each Lender. From time to time on any
                   -----------------------------------
Business Day occurring prior to the Revolving Commitment Termination Date, each
Lender will make loans (relative to such Lender, and of any type, its "Loans")
                                                                       -----
to the Borrower, which, when added to the Letter of Credit Obligations at such
time, equal to such Lender's Percentage of the aggregate amount of the Borrowing
requested by the Borrower to be made on such day. The commitment of each Lender
described in this Section 2.1.1 is herein referred to as its "Revolving
                  -------------                               ---------
Commitment". On the terms and subject to the conditions hereof, the Borrower may
----------
from time to time borrow, prepay and reborrow Loans.

                                      -22-

<PAGE>

     SECTION 2.1.2 Lenders Not Permitted or Required To Make Loans. No Lender
                   -----------------------------------------------
shall be permitted or required to make any Loan if, after giving effect thereto,
the aggregate outstanding principal amount of all Loans

          (a) of all Lenders would exceed the Revolving Commitment Amount, or

          (b) of such Lender would exceed such Lender's Percentage of the
     Revolving Commitment Amount.

     SECTION 2.2 Reduction of Revolving Commitment Amount. The Revolving
                 ----------------------------------------
Commitment Amount is subject to reduction from time to time pursuant to this
Section 2.2.
-----------

     SECTION 2.2.1 Optional. The Borrower may, from time to time on any Business
                   --------
Day occurring after the time of the initial Borrowing hereunder, voluntarily
reduce the Revolving Commitment Amount; provided, however, that all such
reductions shall require at least three Business Days' prior notice to the Agent
and be permanent, and any partial reduction of the Revolving Commitment Amount
shall be in a minimum amount of $2,000,000 and in an integral multiple of
$1,000,000.

     SECTION 2.2.2 Mandatory Reductions and Prepayments. The Revolving
                   ------------------------------------
Commitment Amount shall, without any further action, automatically and
permanently be reduced to zero on the Revolving Commitment Termination Date and:

     (a) The Borrower shall prepay Loans in an amount equal to 100% of the
insurance proceeds received by the Borrower or any Subsidiary following a
casualty involving such Person's Property, to the extent not applied (or
intended to be applied) within 90 days after the consummation or receipt
thereof, as applicable, to the purchase of replacement assets or repair of
damaged assets;

     (b) The Borrower shall prepay Loans in an amount equal to 100% of the sum
of the Net Available Proceeds realized upon all Asset Dispositions to the extent
not applied (or committed to be applied) within 180 days of such Asset
Disposition to the purchase of other assets that are not classified as current
assets under GAAP and are used or useful in the business of the Company and its
Subsidiaries;

     (c) The Borrower shall prepay Loans in an amount equal to (i) 50% of the
sum of the Net Available Proceeds realized upon all equity issuances (other than
in connection with a Permitted Acquisition) by the Borrower and its Subsidiaries
and (ii) 100% of the sum of the Net Available Proceeds realized upon all
Permitted Equity Ownership Sales;

     (d) The Borrower shall prepay Loans in an amount equal to 100% of the sum
of the Net Available Proceeds realized upon all debt issuances (other than in
connection with a Permitted Acquisition) by the Borrower and its Subsidiaries;
and

                                      -23-

<PAGE>

     (f) The Borrower shall notify the Agent of the amount of any required
prepayment at least three (3) Business Days before it is made. The Borrower
shall pay any accrued interest on the Loans which are being prepaid pursuant to
this Section 2.2.2 and shall pay any break funding costs associated with such
     -------------
required prepayment.

     Any prepayments pursuant to Sections 2.2.1 or 2.2.2 hereof shall be without
                                 -----------------------
penalty or premium of any kind other than break funding and other charges
expressly provided by this Agreement with respect to LIBOR breakage costs;
provided, however, at the reasonable request of the Borrower and to avoid any
--------  -------
break funding charges with respect to LIBOR breakage costs associated with any
prepayment, any amounts to be prepaid pursuant to Section 2.2.2 shall be
                                                  -------------
deposited by the Borrower in an escrow account under the control of the Agent to
return an interest rate equal to the average deposit rate payable by the Agent
for commercial deposits of like size and duration as determined by the Agent in
its sole discretion, such amounts to be applied in the manner set forth in this
Section 2.2.2. at the expiration of the Interest Period for the Loans as to
-------------
which break funding charges would otherwise have applied.

     SECTION 2.3 Borrowing Procedure. By delivering a Borrowing Request to the
                 -------------------
Agent on or before 10:00 a.m., Chicago time, on a Business Day, the Borrower may
from time to time irrevocably request, on notice on the date of the requested
Borrowing in the case of Base Rate Loans and on not less than three nor more
than five Business Days' notice in the case of LIBO Rate Loans, that a Borrowing
be made in a minimum amount of (i) $500,000 if such Loan is a LIBO Rate Loan or
(ii) the lesser of the unused amount of the Revolving Commitments or $100,000,
if such Loan is a Base Rate Loan and an integral multiple of $100,000, to the
extent such additional amount is permitted to be borrowed hereunder. On the
terms and subject to the conditions of this Agreement, each Borrowing shall be
comprised of the type of Loans, and shall be made on the Business Day, specified
in such Borrowing Request. On or before 1:00 p.m. (Chicago time) on such
Business Day, each Lender shall deposit with the Agent same day funds in an
amount equal to such Lender's Percentage of the requested Borrowing. Such
deposit will be made to an account which the Agent shall specify from time to
time by notice to the Lenders. To the extent funds are received from the
Lenders, the Agent shall make such funds available to the Borrower by wire
transfer to the accounts the Borrower shall have specified in its Borrowing
Request. No Lender's obligation to make any Loan shall be affected by any other
Lender's failure to make any Loan.

     SECTION 2.4 Continuation and Conversion Elections. By delivering a
                 -------------------------------------
Continuation/Conversion Notice to the Agent on or before 10:00 a.m., Chicago
time, on a Business Day, the Borrower may from time to time irrevocably elect,
on not less than three nor more than five Business Days' notice that all, or any
portion in an aggregate minimum amount of $500,000 and an integral multiple of
$100,000, of any Loans be, in the case of Base Rate Loans, converted into LIBO
Rate Loans or, in the case of LIBO Rate Loans, be converted into a Base Rate
Loan or continued as a LIBO Rate Loan (in the absence of delivery of a
Continuation/ Conversion Notice with respect to any LIBO Rate Loan at least
three Business Days before the last day of the then current Interest Period with
respect thereto, such LIBO Rate

                                      -24-

<PAGE>

Loan shall, on such last day, automatically convert to a Base Rate Loan);
provided, however, that (i) each such conversion or continuation shall be pro
--------  -------
rated among the applicable outstanding Loans of all Lenders, and (ii) no portion
of the outstanding principal amount of any Loans may be continued as, or be
converted into, LIBO Rate Loans when any Event of Default has occurred and is
continuing.

     SECTION 2.5 Funding. Each Lender may, if it so elects, fulfill its
                 -------
obligation to make, continue or convert LIBO Rate Loans hereunder by causing one
of its foreign branches or Affiliates (or an international banking facility
created by such Lender) to make or maintain such LIBO Rate Loan; provided,
                                                                 --------
however, that such LIBO Rate Loan shall nonetheless be deemed to have been made
-------
and to be held by such Lender, and the obligation of the Borrower to repay such
LIBO Rate Loan shall nevertheless be to such Lender for the account of such
foreign branch, Affiliate or international banking facility. In addition, the
Borrower hereby consents and agrees that, for purposes of any determination to
be made for purposes of Sections 4.1, 4.2, 4.3 or 4.4, it shall be conclusively
                        ------------  ---  ---    ---
assumed that each Lender elected to fund all LIBO Rate Loans by purchasing
Dollar deposits in its LIBOR Office's interbank eurodollar market.

     SECTION 2.6 Notes. Each Lender's Loans under its Revolving Commitment shall
                 -----
be evidenced by a Note payable to the order of such Lender in a maximum
principal amount equal to such Lender's Percentage of the original Revolving
Commitment Amount. The Borrower hereby irrevocably authorizes each Lender to
make (or cause to be made) appropriate notations on the grid attached to such
Lender's Note (or on any continuation of such grid), which notations, if made,
shall evidence, inter alia, the date of, the outstanding principal of, and the
                ----- ----
interest rate and Interest Period applicable to the Loans evidenced thereby.
Such notations shall be conclusive and binding on the Borrower absent manifest
error; provided, however, that the failure of any Lender to make any such
       --------  -------
notations shall not limit or otherwise affect any Obligations of the Borrower or
any other Credit Party.

     SECTION 2.7 Letters of Credit.
                 -----------------

     SECTION 2.7.1 Issuance of Letters of Credit. From and after the date
                   -----------------------------
hereof, the Letter of Credit Issuer agrees, upon the terms and conditions set
forth in this Agreement, and subject to the satisfaction of such policy
standards and conditions relating to the issuance of standby letters of credit
generally as may be established by the Letter of Credit Issuer from time to
time, to issue standby letters of credit, for the account of the Borrower, from
time to time from the Original Closing Date to the Letter of Credit Expiry Date;
provided that the Borrower shall not request and the Letter of Credit Issuer
--------
shall not issue, any Letter of Credit which would cause the aggregate Letter of
Credit Obligations (after giving effect to the issuance of such Letter of
Credit) to exceed the amount of the lesser of (i) the Letter of Credit Sublimit
and (ii) the unused aggregate Revolving Commitment.

     SECTION 2.7.2 Participating Interests. Immediately upon the issuance by the
                   -----------------------
Letter of Credit Issuer of a Letter of Credit, each Lender shall be deemed to
have irrevocably and

                                      -25-

<PAGE>

unconditionally purchased and received from the Letter of Credit Issuer, without
recourse, representation or warranty, an undivided participation interest equal
to its Percentage of the face amount of such Letter of Credit and each draw paid
by the Letter of Credit Issuer thereunder. Each Lender's obligation to pay its
proportionate share of all draws under the Letters of Credit, absent gross
negligence or willful misconduct by the Letter of Credit Issuer in honoring any
such draw, shall be absolute, unconditional and irrevocable and in each case
shall be made without counterclaim or set-off by such Lender.

     SECTION 2.7.3 Reimbursement Upon Drawing. (a) The Borrower agrees to
                   --------------------------
reimburse the Letter of Credit Issuer for the amount of each draft drawn on a
Letter of Credit within one Business Day after the date such draft is so drawn.
The Borrower agrees to reimburse the Letter of Credit Issuer immediately when
due, under all circumstances, including, without limitation, any of the
following circumstances: (w) any lack of validity or enforceability of this
Agreement or any instrument executed pursuant hereto; (x) the existence of any
claim, set-off, defense or other right which the Borrower may have at any time
against a beneficiary named in a Letter of Credit, any transferee of any Letter
of Credit (or any Person for whom any such transferee may be acting), any Lender
or any other Person, whether in connection with this Agreement, any Letter of
Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transaction between the Borrower and the beneficiary
named in any Letter of Credit); (y) the validity, sufficiency or genuineness of
any document which the Letter of Credit Issuer reasonably has determined in good
faith complies on its face with the terms of the applicable Letter of Credit,
even if such document should later prove, without the knowledge of the Letter of
Credit Issuer, to have been forged, fraudulent, invalid or insufficient in any
respect or any statement therein shall have been untrue or inaccurate in any
respect; or (z) the surrender or material impairment of any security for the
performance or observance of any of the terms hereof.

          (b) If the Borrower does not pay any such reimbursement obligations
     when due, the Borrower shall be deemed to have immediately requested that
     the Lenders make a Base Rate Loan under this Agreement in a principal
     amount equal to such unreimbursed reimbursement obligations. The Agent
     shall promptly notify the Lenders of such deemed request and, without the
     necessity of compliance with the requirements of Sections 2.1 and 5.2, each
                                                      ------------     ---
     Lender shall make available to the Agent its Loan. The proceeds of such
     Loans shall be paid over by the Agent to the Letter of Credit Issuer for
     the account of the Borrower in satisfaction of such unreimbursed
     reimbursement obligations, which shall thereupon be deemed satisfied by the
     proceeds of, and replaced by, such Loan.

          (c) If the Letter of Credit Issuer makes a payment on account of any
     Letter of Credit and is not concurrently reimbursed therefor by the
     Borrower and if for any reason a Loan may not be made pursuant to Section
                                                                       -------
     2.7.3(b), then as promptly as practical during normal banking hours on the
     --------
     date of its receipt of such notice or, if not practicable on such date, not
     later than 12:00 noon (Chicago time) on the Business Day immediately
     succeeding such date of notification, each Lender shall deliver to the
     Agent for the

                                      -26-

<PAGE>

     account of the Letter of Credit Issuer, in immediately available funds, the
     purchase price for such Lender's interest in such unreimbursed
     reimbursement obligations, which shall be an amount equal to such Lender's
     pro-rata share of such payment. Each Lender shall, upon demand by the
     Letter of Credit Issuer, pay the Letter of Credit Issuer interest on such
     Lender's pro-rata share of such draw from the date of payment by the Letter
     of Credit Issuer on account of such Letter of Credit until the date of
     delivery of such funds to the Letter of Credit Issuer by such Lender at a
     rate per annum, computed for actual days elapsed based on a 360-day year,
     equal to the Federal Funds Effective Rate for such period; provided, that
                                                                --------
     such payments shall be made by the Lenders only in the event and to the
     extent that the Letter of Credit Issuer is not reimbursed in full by the
     Borrower for interest on the amount of any draw on the Letters of Credit.

     SECTION 2.7.4 Request for Letter of Credit. Each Letter of Credit shall be
                   ----------------------------
issued upon receipt by the Letter of Credit Issuer and the Agent from the
Borrower of an irrevocable request thereof (an "LC Notice") not later than 11:00
                                                ---------
a.m. (Chicago time) three (3) Business Days prior the issuance date. Each LC
Notice for a Letter of Credit issued shall be in form and substance satisfactory
to the Letter of Credit Issuer.

                                  ARTICLE III

                   REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

     SECTION 3.1 Repayments and Prepayments.
                 --------------------------

     SECTION 3.1.1 Prior to the Revolving Commitment Termination Date. The
                   --------------------------------------------------
Borrower

          (a) may, from time to time on any Business Day prior to the Revolving
     Commitment Termination Date, make a voluntary prepayment, in whole or in
     part, of the outstanding principal amount of any Loans; provided, however,
                                                             --------  -------
     that:

               (i)  any such prepayment shall be made pro rata among Loans of
                                                      --- ----
          the same type and, if applicable, having the same Interest Period of
          all Lenders;

               (ii) unless the Borrower complies with Section 4.4, no such
                                                      -----------
          prepayment of any LIBO Rate Loan may be made on any day other than the
          last day of the Interest Period for such Loan; and

          (b) shall, immediately upon any acceleration of the Maturity Date of
     any Loans pursuant to Section 8.2 or Section 8.3, repay all Loans, unless,
                           -----------    -----------
     pursuant to Section 8.3, only a portion of all Loans is so accelerated.
                 -----------

Each prepayment of any Loans made pursuant to this Section 3.1.1 shall be
                                                   -------------
without premium or penalty, except as may be required by Section 4.4. No
                                                         -----------
voluntary prepayment of principal of any

                                      -27-

<PAGE>

Loans pursuant to this Section 3.1.1 shall cause a reduction in the Revolving
                       -------------
Commitment Amount.

     SECTION 3.1.2 On the Maturity Date. On the Maturity Date, the Borrower
                   --------------------
shall repay the principal of the Loans then outstanding.

     SECTION 3.1.3 Extension of Maturity Date. The Borrower may, by written
                   --------------------------
request to the Agent and the Lenders given not later than one hundred eighty
(180) days prior to the Maturity Date then in effect (the "Effective Maturity
Date") request (an "Extension Request") that such Effective Maturity Date be
extended to a date which is twenty-four (24) months after such Effective
Maturity Date. No later than the date (the "Extension Response Date") which is
30 days after such Extension Request has been delivered to each of the Lenders,
each Lender will notify the Borrower in writing (with a copy to the Agent)
whether or not it consents to such Extension Request (which consent may be
granted or denied by each Lender in its sole discretion and may be conditioned
on receipt of such financial information or other documentation as may be
specified by such Lender); provided, that any Lender that fails to so advise the
Borrower on or prior to the Extension Response Date shall be deemed to have
denied such Extension Request. The extension of the Maturity Date contemplated
by an Extension Request shall become effective as of the applicable Effective
Maturity Date; provided, that (i) all of the Lenders shall have consented to
such Extension Request; and (ii) (x) each of the representations and warranties
made by the Borrower in or pursuant to the Loan Documents shall be true and
correct in all material respects on and as of each of the date of such Extension
Request and such Effective Maturity Date as if made on and as of such date,
except to the extent relating to an earlier date, (y) no Default or Event of
Default shall have occurred and be continuing on the date of such Extension
Request or on such Effective Maturity Date and (z) on each of the date of such
Extension Request and such Effective Maturity Date, the Agent shall have
received a certificate of the Borrower as to the matters set forth in clauses
(x) and (y) above.

     SECTION 3.2 Interest Provisions. Interest on the outstanding principal
amount of Loans shall accrue and be payable in accordance with this Section 3.2.

     SECTION 3.2.1 Rates. Pursuant to an appropriately delivered Borrowing
Request or Continuation/Conversion Notice, the Borrower may elect that Loans
comprising a Borrowing accrue interest at a rate per annum:

          (a) on that portion maintained from time to time as a Base Rate Loan,
     equal to the sum of the Base Rate from time to time in effect plus the
     Applicable Margin for Base Rate Loans; or

          (b) on that portion maintained as a LIBO Rate Loan, during each
     Interest Period applicable thereto, equal to the sum of the LIBO Rate
     (Reserve Adjusted) for such Interest Period plus the Applicable Margin for
     LIBO Rate Loans.

                                      -28-

<PAGE>

     The "LIBO Rate (Reserve Adjusted)" means, relative to any Loan to be made,
continued or maintained as, or converted into, a LIBO Rate Loan for any Interest
Period, a rate per annum (rounded upwards, if necessary, to the nearest 1/16 of
1%) determined pursuant to the following formula:

               LIBO Rate      =            LIBO Rate
                                -------------------------------
         (Reserve Adjusted)     1.00 - LIBOR Reserve Percentage

     The LIBO Rate (Reserve Adjusted) for any Interest Period for LIBO Rate
Loans will be determined by the Agent on the basis of the LIBOR Reserve
Percentage in effect on, and the applicable rates furnished to and received by
the Agent from National City, two Business Days before the first day of such
Interest Period.

     "LIBO Rate" means, relative to any Interest Period for LIBO Rate Loans, the
rate of interest equal to the average (rounded upwards, if necessary, to the
nearest 1/16 of 1%) of the rates per annum at which Dollar deposits in
immediately available funds are offered to National City's LIBOR Office in the
London interbank market as at or about 10:00 a.m. London time two Business Days
prior to the beginning of such Interest Period for delivery on the first day of
such Interest Period, and in an amount approximately equal to the amount of
National City's LIBO Rate Loan and for a period approximately equal to such
Interest Period.

     "LIBOR Reserve Percentage" means, relative to any Interest Period for LIBO
Rate Loans, the reserve percentage (expressed as a decimal) equal to the maximum
aggregate reserve requirements (including all basic, emergency, supplemental,
marginal and other reserves and taking into account any transitional adjustments
or other scheduled changes in reserve requirements) specified under regulations
issued from time to time by the F.R.S. Board and then applicable to assets or
liabilities consisting of and including "Eurocurrency Liabilities", as currently
defined in Regulation D of the F.R.S. Board, having a term approximately equal
or comparable to such Interest Period.

     All LIBO Rate Loans shall bear interest from and including the first day of
the applicable Interest Period to (but not including) the last day of such
Interest Period at the interest rate determined as applicable to such LIBOR Rate
Loan.

     "Applicable Margin" means on any date the applicable percentage set forth
below based upon the Level as shown in the certificate then most recently
delivered to the Lenders pursuant to Section 7.1.1(d):

   Level       Base Rate          LIBOR Rate           Commitment Fee
   -----       ---------          ----------           --------------
     I           .75%                2.25%                  .500%
    II           .50%                2.00%                  .375%

                                      -29-

<PAGE>

   III           .25%                1.75%                  .375%
   IV              0%                1.50%                  .375%

; provided, however that if the Borrower shall have failed to deliver to the
Lenders by the date required hereunder any certificate pursuant to Section
7.1.1(d), then from the date such certificate was required to be delivered until
the date of such delivery the Applicable Margin shall be deemed to be Level I.
Each change in the Applicable Margin shall take effect with respect to all
outstanding Loans on the third Business Day immediately succeeding the day on
which such certificate is received by the Agent. Notwithstanding the foregoing,
no reduction in the Applicable Margin shall be effected if a Default or an Event
of Default shall have occurred and be continuing on the date when such change
would otherwise occur, it being understood that on the third Business Day
immediately succeeding the day on which such Default or Event of Default is
either waived or cured (assuming no other Default or Event of Default shall be
then pending), the Applicable Margin shall be reduced (on a prospective basis)
in accordance with the then most recently delivered certificate.

     "Level" means, and includes, Level I, Level II, Level III or Level IV,
whichever is in effect at the relevant time.

     "Level I" shall exist at any time the Total Leverage Ratio is equal to or
less than 3.00:1.0 but equal to or greater than 2.50:1.0.

     "Level II" shall exist at any time the Total Leverage Ratio is less than
2.50:1.0 but equal to or greater than 2.00:1.0.

     "Level III" shall exist at any time the Total Leverage Ratio is less than
2.00:1.0 but equal to or greater than 1.50:1.0.

     "Level IV" shall exist at any time the Total Leverage Ratio is less than
1.50:1.0.

     "Total Leverage Ratio" means, with respect to any period, the ratio of (i)
Total Funded Debt to (ii) EBITDA, as of the end of the relevant period.

     SECTION 3.2.2 Post-Maturity Rates. After the date any principal amount of
any Loan is due and payable (whether on the Revolving Commitment Termination
Date, upon acceleration or otherwise), or after any other monetary Obligation of
the Borrower shall have become due and payable, the Borrower shall pay, but only
to the extent permitted by law, interest (after as well as before judgment) on
such amounts at a rate per annum equal to the Base Rate plus a margin of 2.00%.

     SECTION 3.2.3 Payment Dates. Interest accrued on each Loan shall be
                   -------------
payable, without duplication:

          (a) on the Revolving Commitment Termination Date;

                                      -30-

<PAGE>

          (b) on the date of any payment or prepayment, in whole or in part, of
     principal outstanding on such Loan;

          (c) with respect to Base Rate Loans, on each Quarterly Payment Date
     occurring after the Original Closing Date;

          (d) with respect to LIBO Rate Loans, the last day of each applicable
     Interest Period and, in the case of an Interest period in excess of three
     months, on the dates which are successively three months after the
     commencement of such Interest Period;

          (e) with respect to any Base Rate Loans converted into LIBO Rate Loans
     on a day when interest would not otherwise have been payable pursuant to
     clause (c), on the date of such conversion; and

          (f) on that portion of any Loans the Maturity Date of which is
     accelerated pursuant to Section 8.2 or Section 8.3, immediately upon such
     acceleration.

Interest accrued on Loans or other monetary Obligations arising under this
Agreement or any other Loan Document after the date such amount is due and
payable (whether on the Maturity Date, upon acceleration or otherwise) shall be
payable upon demand.

     SECTION 3.3 Fees. The Borrower agrees to pay the fees set forth in this
                 ----
Section 3.3. All such fees shall be non-refundable.
-----------

     SECTION 3.3.1 Revolving Commitment Fee. The Borrower agrees to pay to the
                   ------------------------
Agent for the account of each Lender, for the period (including any portion
thereof when its Revolving Commitment is suspended by reason of the Borrower's
inability to satisfy any condition of Article V) commencing on the Original
Closing Date and continuing through the Revolving Commitment Termination Date, a
commitment fee at the rate equal to the Applicable Margin for Commitment Fees
per annum on such Lender's Percentage of the sum of the average daily unused
portion of the Revolving Commitment Amount. Such commitment fees shall be
payable by the Borrower in arrears on each Quarterly Payment Date, commencing
with the first such day following the Original Closing Date and on the Revolving
Commitment Termination Date.

     SECTION 3.3.2 Letter of Credit Fees. (a) The Borrower agrees to pay the
Agent, for the account of each Lender pro-rata on the basis of its Revolving
Commitment, a fee in respect of each Letter of Credit computed at the Applicable
Margin for LIBO Rate Loans on the average daily stated amount of such Letter of
Credit (computed on the basis of a 360-day year for the actual days elapsed),
such fee to be due and payable quarterly in arrears on each Quarterly Payment
Date and on the Revolving Commitment Termination Date.

          (b) The Borrower shall pay to the Letter of Credit Issuer a letter of
credit fronting fee for each Letter of Credit issued by the Letter of Credit
Issuer equal to 1/4 of 1% of the face

                                      -31-

<PAGE>

amount (or increased face amount) of such Letter of Credit. Such Letter of
Credit fronting fee shall be due and payable on each date of issuance (or date
of increase) of a Letter of Credit.

     (c) The Borrower agrees to pay directly to the Letter of Credit Issuer upon
each issuance of, drawing under, and/or amendment of, a Letter of Credit issued
by it in such amount as shall at the time of such issuance, drawing or amendment
be the administrative charge which the Letter of Credit Issuer is customarily
charging for issuances of, drawing under or amendments of, letters of credit
issued by it.

     SECTION 3.3.3 Agency Fees. The Borrower shall pay to the Agent (x) on the
Original Closing Date for its own account and/or for distribution to the Lenders
such fees as heretofore agreed by the Borrower and the Agent and (y) for its own
account such other fees as may be agreed to from time to time between the
Borrower and the Agent, when and as due.

                                   ARTICLE IV

                         LIBO RATE AND OTHER PROVISIONS

     SECTION 4.1 LIBO Rate Lending Unlawful. If any Lender shall determine
(which determination shall, upon notice thereof to the Borrower and the Lenders,
be conclusive and binding on the Borrower) that the introduction of or any
change in or in the interpretation of any law makes it unlawful, or any central
bank or other governmental authority asserts that it is unlawful, for such
Lender to make, continue or maintain any Loan as, or to convert any Loan into, a
LIBO Rate Loan of a certain type, subject to the provisions of Section 4.11
hereof, the obligations of all Lenders to make, continue, maintain or convert
any such Loans shall, upon such determination, forthwith be suspended until such
Lender shall notify the Agent that the circumstances causing such suspension no
longer exist, and all LIBO Rate Loans of such type shall automatically convert
into Base Rate Loans at the end of the then current Interest Periods with
respect thereto or sooner, if required by such law or assertion.

     SECTION 4.2 Deposits Unavailable. If the Agent shall have determined that
                 --------------------

          (a) Dollar certificates of deposit or Dollar deposits, as the case may
     be, in the relevant amount and for the relevant Interest Period are not
     available to a Lender in its relevant market; or

          (b) by reason of circumstances affecting a Lender's relevant market,
     adequate means do not exist for ascertaining the interest rate applicable
     hereunder to LIBO Rate Loans of such type,

then, upon notice from the Agent to the Borrower and the Lenders, subject to the
provisions of Section 4.11 hereof, the obligations of all Lenders under Section
2.3 and Section 2.4 to make or continue any Loans as, or to convert any Loans
into, LIBO Rate Loans of such type shall

<PAGE>

forthwith be suspended until the Agent shall notify the Borrower and the Lenders
that the circumstances causing such suspension no longer exist.

     SECTION 4.3 Increased LIBO Rate Loan Costs, etc. The Borrower agrees to
reimburse each Lender for any increase in the cost to such Lender of, or any
reduction in the amount of any sum receivable by such Lender in respect of,
making, continuing or maintaining (or of its obligation to make, continue or
maintain) any Loans as, or of converting (or of its obligation to convert) any
Loans into, LIBO Rate Loans, subject to the provisions of Section 4.11 hereof.
Such Lender shall promptly notify the Agent and the Borrower in writing of the
occurrence of any such event, such notice to state, in reasonable detail, the
reasons therefor and the additional amount required fully to compensate such
Lender for such increased cost or reduced amount. Such additional amounts shall
be payable by the Borrower directly to such Lender within five days of its
receipt of such notice, and such notice shall, in the absence of manifest error,
be conclusive and binding on the Borrower; provided, however, in no event shall
Borrower be obligated to pay increased costs for a period greater than 180 days
prior to the date of receipt of such notice.

     SECTION 4.4 Funding Losses. In the event any Lender shall incur any loss or
expense (including any loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to make,
continue or maintain any portion of the principal amount of any Loan as, or to
convert any portion of the principal amount of any Loan into, a LIBO Rate Loan)
as a result of;

          (a) any conversion or repayment or prepayment of the principal amount
     of any LIBO Rate Loans on a date other than the scheduled last day of the
     Interest Period applicable thereto, whether pursuant to Section 3.1 or
     otherwise;

          (b) any Loans not being made as LIBO Rate Loans in accordance with the
     Borrowing Request therefor; or

          (c) any Loans not being continued as, or converted into, LIBO Rate
     Loans in accordance with the Continuation/ Conversion Notice therefor;

then, subject to the provisions of Section 4.11 hereof, upon the written notice
of such Lender (which notice shall be delivered within thirty days of the
incurrence thereof by such Lender) to the Borrower (with a copy to the Agent),
the Borrower shall, within five days of its receipt thereof, pay directly to
such Lender such amount as will (in the reasonable determination of such Lender)
reimburse such Lender for such loss or expense. Such written notice (which shall
include calculations in reasonable detail) shall, in the absence of manifest
error, be conclusive and binding on the Borrower.

     SECTION 4.5 Increased Capital Costs. If any change in, or the introduction,
                 -----------------------
adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive,

                                      -33-

<PAGE>

guideline, decision or request (whether or not having the force of law) of any
court, central bank, regulator or other governmental authority affects or would
affect the amount of capital required or expected to be maintained by any Lender
or any Person controlling such Lender, and such Lender determines (in its sole
and absolute discretion) that the rate of return on its or such controlling
Person's capital as a consequence of its Revolving Commitment or the Loans made
by such Lender is reduced to a level below that which such Lender or such
controlling Person could have achieved but for the occurrence of any such
circumstance, then, in any such case upon notice from time to time by such
Lender to the Borrower, subject to the provisions of Section 4.11 hereof, the
Borrower shall immediately pay directly to such Lender additional amounts
sufficient to compensate such Lender or such controlling Person for such
reduction in rate of return. A statement of such Lender as to any such
additional amount or amounts (including calculations thereof in reasonable
detail) shall, in the absence of manifest error, be conclusive and binding on
the Borrower. In determining such amount, such Lender may use any method of
averaging and attribution that it (in its sole and absolute discretion) shall
deem applicable; provided, however, in no event shall Borrower be obligated to
pay increased costs for a period greater than 180 days prior to the date of
receipt of the notice required by this Section 4.5.

     SECTION 4.6 Taxes. All payments by the Borrower of principal of, and
interest on, the Loans and all other amounts payable hereunder shall be made
free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or
other charges of any nature whatsoever imposed by any taxing authority, but
excluding franchise taxes and taxes imposed on or measured by any Lender's net
income or receipts (such non-excluded items being called "Taxes"). In the event
that any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any applicable law,
rule or regulation, then the Borrower will:

          (a) pay directly to the relevant authority the full amount required to
     be so withheld or deducted;

          (b) promptly forward to the Agent an official receipt or other
     documentation satisfactory to the Agent evidencing such payment to such
     authority; and

          (c) pay to the Agent for the account of the Lenders such additional
     amount or amounts as is necessary to ensure that the net amount actually
     received by each Lender will equal the full amount such Lender would have
     received had no such withholding or deduction been required.

Moreover, if any Taxes are directly asserted against the Agent or any Lender
with respect to any payment received by the Agent or such Lender hereunder, the
Agent or such Lender may pay such Taxes and the Borrower will promptly pay such
additional amounts (including any penalties, interest or expenses, other than
those penalties, interest or expenses which are due to

                                      -34-

<PAGE>

any delay by Agent or any Lender) as is necessary in order that the net amount
received by such person after the payment of such Taxes (including any Taxes on
such additional amount) shall equal the amount such person would have received
had not such Taxes been asserted.

     If the Borrower fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to the Agent, for the account of the respective
Lenders, the required receipts or other required documentary evidence, the
Borrower shall indemnify the Lenders for any incremental Taxes, interest or
penalties that may become payable by any Lender as a result of any such failure.
For purposes of this Section 4.6, a distribution hereunder by the Agent or any
Lender to or for the account of any Lender shall be deemed a payment by the
Borrower.

     Upon the request of the Borrower or the Agent, each Lender that is
organized under the laws of a jurisdiction other than the United States shall,
prior to the due date of any payments under the Notes, execute and deliver to
the Borrower and the Agent, on or about the first scheduled payment date in each
Fiscal Year, one or more (as the Borrower or the Agent may reasonably request)
United States Internal Revenue Service Forms 4224 or Forms 1001 or such other
forms or documents (or successor forms or documents), appropriately completed,
as may be applicable to establish the extent, if any, to which a payment to such
Lender is exempt from withholding or deduction of Taxes.

     SECTION 4.7 Payments, Computations, etc. Unless otherwise expressly
provided, all payments by the Borrower pursuant to this Agreement, the Notes or
any other Loan Document shall be made by the Borrower to the Agent for the pro
rata account of the Lenders entitled to receive such payment. All such payments
required to be made to the Agent shall be made, without setoff, deduction or
counterclaim, not later than 11:00 a.m., Chicago time, on the date due, in same
day or immediately available funds, to such account as the Agent shall specify
from time to time by notice to the Borrower. Funds received after that time
shall be deemed to have been received by the Agent on the next succeeding
Business Day. The Agent shall promptly remit in same day funds to each Lender
its share, if any, of such payments received by the Agent for the account of
such Lender. All interest and fees shall be computed on the basis of the actual
number of days (including the first day but excluding the last day) occurring
during the period for which such interest or fee is payable over a year
comprised of 360 days (or, in the case of interest on a Base Rate Loan, 365 days
or, if appropriate, 366 days). Whenever any payment to be made shall otherwise
be due on a day which is not a Business Day, such payment shall (except as
otherwise required by clause (c) of the definition of the term "Interest Period"
with respect to LIBO Rate Loans) be made on the next succeeding Business Day and
such extension of time shall be included in computing interest and fees, if any,
in connection with such payment.

     SECTION 4.8 Sharing of Payments. If any Lender shall obtain any payment or
other recovery (whether voluntary, involuntary, by application of setoff or
otherwise) on account of any Loan (other than pursuant to the terms of Sections
4.3, 4.4 and 4.5) in excess of its pro rata share of payments then or therewith
obtained by all Lenders, such Lender shall purchase from

                                      -35-

<PAGE>

the other Lenders such participations in Loans made by them as shall be
necessary to cause such purchasing Lender to share the excess payment or other
recovery ratably with each of them; provided, however, that if all or any
portion of the excess payment or other recovery is thereafter recovered from
such purchasing Lender, the purchase shall be rescinded and each Lender which
has sold a participation to the purchasing Lender shall repay to the purchasing
Lender the purchase price to the ratable extent of such recovery together with
an amount equal to such selling Lender's ratable share (according to the
proportion of:

          (a) the amount of such selling Lender's required repayment to the
     purchasing Lender

to
--

          (b) the total amount so recovered from the purchasing Lender);

of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section may, to
the fullest extent permitted by law, exercise all its rights of payment
(including pursuant to Section 4.9) with respect to such participation as fully
as if such Lender were the direct creditor of the Borrower in the amount of such
participation. If under any applicable bankruptcy, insolvency or other similar
law, any Lender receives a secured claim in lieu of a setoff to which this
Section applies, such Lender shall, to the extent practicable, exercise its
rights in respect of such secured claim in a manner consistent with the rights
of the Lenders entitled under this Section to share in the benefits of any
recovery on such secured claim.

     SECTION 4.9 Setoff. Each Lender shall, upon the occurrence of any Default
described in clauses (a) through (d) of Section 8.1.9 or, with the consent of
the Required Lenders, upon the occurrence of any other Event of Default, have
the right to appropriate and apply to the payment of the Obligations owing to it
(whether or not then due), and (as security for such Obligations) the Borrower
hereby grants to each Lender a continuing security interest in, any and all
balances, credits, deposits, accounts or moneys of the Borrower then or
thereafter maintained with such Lender; provided, however, that any such
appropriation and application shall be subject to the provisions of Section 4.8.
Each Lender agrees promptly to notify the Borrower and the Agent after any such
setoff and application made by such Lender; provided, however, that the failure
to give such notice shall not affect the validity of such setoff and
application. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff under applicable law
or otherwise) which such Lender may have.

     SECTION 4.10 Use of Proceeds. The Borrower shall apply the proceeds of each
Borrowing in accordance with the fourth recital; without limiting the foregoing,
no proceeds of any Loan will be used to acquire any equity security of a class
which is registered pursuant to

                                      -36-

<PAGE>

Section 12 of the Securities Exchange Act of 1934 or any "margin stock", as
defined in F.R.S. Board Regulation U.

     SECTION 4.11 Changes to Other Branches; Equal Treatment of Borrower. If a
Lender claims any additional amounts payable or that its is unable to make LIBOR
Loans available, as described more fully in Sections 4.1 through 4.5 hereof,
such Lender shall (i) use its reasonable efforts (consistent with legal and
regulatory restrictions) to avoid the need for paying such additional amounts or
such unavailability, including changing the jurisdiction of its applicable
lending office or moving the applicable Loan(s) to an Affiliate or Subsidiary;
provided, that the taking of any such action would not, in the reasonable
judgment of such Lender, be disadvantageous to such Lender and (ii) treat the
Borrower, with respect to all such issues, in a manner consistent with the
treatment of other similarly situated borrowers with respect to such issues.

     SECTION 4.12 Replacement of Lenders. Within fifteen (15) days after receipt
by Borrower of written notice and demand from any Lender for payment pursuant to
Section 4.5 or 4.6 (any such Lender demanding such payment being referred to
herein as an "Affected Lender"), Borrower may, at its option, notify Agent and
such Affected Lender of its intention to do one of the following:

               (A) Borrower may obtain, at Borrower's expense, a replacement
Lender ("Replacement Lender") for such Affected Lender, which Replacement Lender
shall be reasonably satisfactory to Agent. In the event Borrower obtains a
Replacement Lender that will refinance all outstanding Obligations owed to such
Affected Lender and assume its Commitments hereunder within ninety (90) days
following notice of Borrower's intention to do so, the Affected Lender shall
sell and assign all of its rights and delegate all of its obligations under this
Agreement to such Replacement Lender in accordance with the provisions of
Section 10.11.1, provided that Borrower has reimbursed such Affected Lender for
any administrative fee payable pursuant to Section 10.11.1 and, in any case
where such replacement occurs as the result of a demand for payment pursuant to
Section 4.5 or 5.6, paid all amounts required to be paid to such Affected Lender
pursuant to subsection 4.5 or 4.6 through the date of such sale and assignment;
or

               (B) Borrower may, upon consent of the Majority Lenders (other
than the Affected Lender), prepay in full all outstanding Obligations owed to
such Affected Lender and terminate such Affected Lender's Revolving Commitment,
in which case the Revolving Commitment Amount will be reduced by the amount of
such Affected Lender's Revolving Commitment. Borrower shall, within ninety (90)
days following notice of its intention to do so, prepay in full all outstanding
Obligations owed to such Affected Lender (including, in any case where such
replacement occurs as the result of a demand for payment for increased costs,
such Affected Lender's increased costs for which it is entitled to reimbursement
under this Agreement through the date of such prepayment), and terminate such
Affected Lender's obligations under the Revolving Commitment Amount.

                                      -37-

<PAGE>

                                   ARTICLE V

                             CONDITIONS TO BORROWING

     SECTION 5.1 Initial Borrowing. The obligations of the Lenders to fund the
initial Borrowing and the Letter of Credit Issuer to issue, and the Lenders to
participate in, any letter of Credit, shall be subject to the prior or
concurrent satisfaction of each of the conditions precedent set forth in this
Section 5.1.

     SECTION 5.1.1 Resolutions, etc. The Agent shall have received from each
Credit Party a certificate, dated the date of the initial Borrowing, of its
Secretary or Assistant Secretary as to:

          (a) resolutions of its Board of Directors then in full force and
     effect authorizing the execution, delivery and performance of this
     Agreement, the Notes and each other Loan Document to be executed by it; and

          (b) the incumbency and signatures of those of its officers authorized
     to act with respect to this Agreement, the Notes and each other Loan
     Document executed by it;

upon which certificate each Lender may conclusively rely until it shall have
received a further certificate of the Secretary of such Credit Party canceling
or amending such prior certificate.

     SECTION 5.1.2 Delivery of Notes. The Agent shall have received, for the
account of each Lender, its Notes duly executed and delivered by the Borrower.

     SECTION 5.1.3 Applicable Margin. The Agent shall receive a certificate,
executed by an Authorized Officer of the Borrower, delineating the Applicable
Margin after giving pro forma effect to the Loans to be incurred on the Original
Closing Date.

     SECTION 5.1.4 Guaranty. The Agent shall have received the Guaranty, dated
the date hereof, duly executed by each Subsidiary of the Borrower.

     SECTION 5.1.5 Pledge Agreements. The Agent shall have received executed
counterparts of the Borrower Pledge Agreement and the Guarantor Pledge
Agreement, each dated as of the date hereof, duly executed by each Credit Party
party thereto, together with stock certificates, accompanied by undated stock
powers duly executed in blank, and promissory notes, duly endorsed in blank,
required to be delivered to the Agent pursuant to the Borrower Pledge Agreement
and the Guarantor Pledge Agreement.

     SECTION 5.1.6 Security Agreements. The Agent shall have received executed
counterparts of the Borrower Security Agreement and the Guarantor Security
Agreement, each dated as of the date hereof, duly executed by each Credit Party
thereto, together with:

                                      -38-

<PAGE>

          (a) acknowledgment copies of properly filed Uniform Commercial Code
     financing statements (Form UCC-1) naming the relevant Credit Party as the
     debtor and the Agent as the secured party, or other similar instruments or
     documents, filed under the Uniform Commercial Code of all jurisdictions as
     may be necessary or, in the opinion of the Agent, desirable to perfect the
     security interest of the Agent pursuant to such Security Agreement;

          (b) executed copies of proper Uniform Commercial Code Form UCC-3
     termination statements, if any, necessary to release all Liens and other
     rights of any Person:

               (i)  in any collateral described in such Security Agreement
          previously granted by any Person, and

               (ii) securing any of the Indebtedness identified in Part A of
          Schedule 6.17, together with such other Uniform Commercial Code Form
          UCC-3 termination statements as the Agent may reasonably request from
          such Credit Party; and

          (c) copies of Uniform Commercial Code Requests for Information or
     Copies (Form UCC-11), or a similar search report certified by a party
     acceptable to the Agent, dated a date reasonably near to the date of the
     initial Borrowing, listing all effective financing statements which name
     each Credit Party (under its present name and any previous names) as the
     debtor and which are filed in the jurisdictions in which filings were made
     pursuant to clause (a) above, together with copies of such financing
     statements (none of which (other than those described in clause (a), if
     such Form UCC-11 or search report, as the case may be, is current enough to
     list such financing statements described in clause (a)) shall cover any
     collateral described in such Security Agreement).

     SECTION 5.1.7 Intellectual Property Assignment. The Agent shall have
received executed counterparts of an Intellectual Property Assignment, dated the
date hereof, duly executed by each Credit Party.

     SECTION 5.1.8 Opinions of Counsel. The Agent shall have received opinions,
dated the date of the initial Borrowing and addressed to the Agent and all
Lenders, from Katten Muchin & Zavis, counsel to the Borrower and its
Subsidiaries, substantially in the form of Exhibit H hereto.

     SECTION 5.1.9 Agreements. The Agent shall have received true and correct
copies, certified as such by an Authorized Officer of the Borrower, of each
agreement governing Indebtedness listed on Schedule 6.17 and each Service
Agreement and Employment Agreement listed on Schedule 6.18.

                                      -39-

<PAGE>

     SECTION 5.1.10 Closing Fees, Expenses, etc. The Agent shall have received
for its own account, or for the account of each Lender, as the case may be, all
fees, costs and expenses due and payable on the Original Closing Date pursuant
to Section 3.3 and, to the extent invoiced on such date, Section 10.3.

     SECTION 5.2 All Borrowings and Letters of Credit. The obligation of each
Lender to fund any Loan on the occasion of any Borrowing (including the initial
Borrowing) and the obligation of the Letter of Credit Issuer to issue any Letter
of Credit shall be subject to the satisfaction of each of the conditions
precedent set forth in this Section 5.2.

     SECTION 5.2.1 Compliance with Warranties, No Default, etc. Both before and
after giving effect to any Borrowing (but, if any Default of the nature referred
to in Section 8.1.5 shall have occurred with respect to any other Indebtedness,
without giving effect to the application, directly or indirectly, of the
proceeds thereof) the following statements shall be true and correct:

          (a) the representations and warranties set forth in Article VI shall
     be true and correct with the same effect as if then made (unless stated to
     relate solely to an early date, in which case such representations and
     warranties shall be true and correct as of such earlier date); and

          (b) no Default or Event of Default shall have then occurred and be
     continuing.

     SECTION 5.2.2 Borrowing Request; LC Notice. The Agent shall have received a
Borrowing Request for such Borrowing or LC Notice for the issuance of a Letter
of Credit. Each of the delivery of a Borrowing Request or LC Notice, as the case
may be, and the acceptance by the Borrower of the proceeds of such Borrowing or
the issuance of such Letter of Credit, as the case may be, shall constitute a
representation and warranty by the Borrower that on the date of such Borrowing
or the issuance of such Letter of Credit, as the case may be (both immediately
before and after giving effect to such Borrowing and the application of the
proceeds thereof or the issuance of such Letter of Credit, as the case may be,)
the statements made in Section 5.2.1 are true and correct.

     SECTION 5.2.3 Satisfactory Legal Form. All documents executed or submitted
pursuant hereto by or on behalf of each Credit Party shall be reasonably
satisfactory in form and substance to the Agent and its counsel; the Agent and
its counsel shall have received all information, approvals, opinions, documents
or instruments as the Agent or its counsel may reasonably request.

                                      -40-

<PAGE>

     SECTION 5.3 . Conditions to Amendment and Restatement Effective Date. This
Agreement shall become effective upon the later of August 29, 2001 and the date
of the satisfaction of each of the following (the "Amendment and Restatement
Effective Date"):

     SECTION 5.3.1 Executed Signature Pages to Agreement. Execution of this
Agreement and delivery of executed signature pages to this Agreement by the
Borrower, each Lender and the Agent.

     SECTION 5.3.2 Executed Reaffirmation of Collateral Documents. Execution of
the Reaffirmation of Collateral Documents by the Borrower and each Subsidiary
Guarantor and delivery of the signature pages executed by the Borrower and each
Subsidiary Guarantor to the Reaffirmation of Collateral Documents to the Agent.

     SECTION 5.3.3 Payment of Fees and Expenses. Payment by the Borrower to the
Agent of all reasonable out of pocket fees and expenses (including, without
limitation, the reasonable fees and expenses of Winston & Strawn) of the Agent
and the Lenders in connection with this Agreement.

     SECTION 5.3.4 Resolutions, etc. The Agent shall have received from each
Credit Party a certificate, dated as of the Amendment and Restatement Effective
Date, of its Secretary or Assistant Secretary as to:

          (a) resolutions of its Board of Directors then in full force and
     effect authorizing the execution, delivery and performance of this
     Agreement and each other Loan Document to be executed by it; and

          (b) the incumbency and signatures of those of its officers authorized
     to act with respect to this Agreement and each other Loan Document executed
     by it;

upon which certificate each Lender may conclusively rely until it shall have
received a further certificate of the Secretary of such Credit Party canceling
or amending such prior certificate.

     SECTION 5.3.5 Certificate.
                   -----------

          A certificate signed by the chief financial officer or chief executive
officer of the Borrower, dated as of the Amendment and Restatement Effective
Date:

          (i) stating that the representations and warranties contained in
     Article VI are true and correct on and as of such date as though made on
     and as of such date; and

                                      -41-

<PAGE>

          (ii) stating that no Default or Event of Default exists.

     SECTION 5.3.6 Updated Disclosure Schedules

          A certificate signed by the chief financial officer or chief executive
officer of the Borrower dated as of the Amendment and Restatement Effective
Date, proposing any necessary changes to the Schedules to this Agreement in form
and substance reasonably satisfactory to the Agent occurring after the Original
Closing Date.

     SECTION 5.3.7 Other Documents

          Such other customary approvals, opinions, documents or materials as
the Agent may reasonably request.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

     In order to induce the Lenders and the Agent to enter into this Agreement
and to make Loans hereunder, the Borrower represents and warrants unto the Agent
and each Lender as set forth in this Article VI.

     SECTION 6.1 Organization, etc. The Borrower and each of its Subsidiaries,
including, without limitation, the Borrower, is validly organized and existing
and in good standing under the laws of the State of its organization, is duly
qualified to do business and is in good standing as a foreign corporation in
each jurisdiction where the nature of its business requires such qualification,
and has full power and authority and holds all requisite governmental licenses,
permits and other approvals to enter into and perform its Obligations under this
Agreement, the Notes and each other Loan Document to which it is a party and to
own and hold under lease its property and to conduct its business substantially
as currently conducted by it.

     SECTION 6.2 Due Authorization, Non-Contravention, etc. The execution,
delivery and performance by the Borrower and each of its Subsidiaries, including
without limitation, the Borrower, of this Agreement, the Notes and each other
Loan Document executed or to be executed by it, are within each such Credit
Party's powers, have been duly authorized by all necessary corporate action, and
do not:

          (a) contravene such Credit Party's Organizational Documents;

                                      -42-

<PAGE>

          (b) contravene any contractual restriction, law or governmental
     regulation or court decree or order binding on or affecting such Credit
     Party, which contravention reasonably would be expected to have a Material
     Adverse Effect; or

          (c) result in, or require the creation or imposition of, any Lien on
     any of such Credit Party's properties other than a Permitted Lien.

     SECTION 6.3 Government Approval, Regulation, etc. No authorization or
approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body or other Person is required for the due execution,
delivery or performance by any Credit Party, including, without limitation, the
Borrower, of this Agreement, the Notes or any other Loan Document to which it is
a party, other than as described in Schedule 6.3 which have been obtained or
delivered on or prior to the Original Closing Date. Neither the Borrower nor any
of its Subsidiaries, is an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or a "holding company", or a
"subsidiary company" of a "holding company", or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

     SECTION 6.4 Validity, etc. This Agreement constitutes, and the Notes and
each other Loan Document executed by each Credit Party thereto will, on the due
execution and delivery thereof, constitute, the legal, valid and binding
obligations of such Credit Party enforceable in accordance with their respective
terms, except that the validity or enforceability of any such Loan Document may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforceability of creditors' rights generally or by
equitable principles, whether enforcement thereof is sought in a court of law or
equity.

     SECTION 6.5 Financial Information. The audited financial statements of the
Borrower and its Subsidiaries on a consolidated basis as of December 31, 1999,
and the unaudited financial statements of the Borrower and its Subsidiaries on a
consolidated basis as at March 31, 2000, copies of which have been furnished to
the Agent and each Lender, have been prepared in accordance with GAAP
consistently applied (subject to ordinary, good faith year end audit
adjustments), and present fairly the consolidated financial position of the
Persons covered thereby as at the dates thereof and the results of their
operations for the periods then ended.

     SECTION 6.6 No Material Adverse Change. Since December 31, 2000, there has
been no material adverse change in the financial condition, operations, assets,
business, properties or prospects of the Borrower and its Subsidiaries taken as
a whole.

     SECTION 6.7 Litigation, Labor Controversies, etc. There is no pending or,
                 ------------------------------------
to the knowledge of the Borrower, threatened litigation, action, proceeding, or
labor controversy affecting any Credit Party, or any of their respective
properties, businesses, assets or revenues,

                                      -43-

<PAGE>

or any Person who provided health care services under contract with any Credit
Party, which reasonably would be expected to have a Material Adverse Effect or
which purports to affect the legality, validity or enforceability of this
Agreement, the Notes or any other Loan Document.

     SECTION 6.8 Subsidiaries. (a) The Borrower has no Subsidiaries, except
                 ------------
those Subsidiaries:

          (i)  which are identified in Schedule 6.8; or
                                       ------------

          (ii) which are permitted to have been acquired by the Borrower in
     accordance with Section 7.2.5 or 7.2.8.
                     -------------    -----

     SECTION 6.9 Ownership of Properties. The Borrower and each of its
Subsidiaries owns good and marketable title (or valid leasehold title, with
respect to leasehold estates) to all of its properties and assets, real and
personal, tangible and intangible, of any nature whatsoever (including patents,
trademarks, trade names, service marks and copyrights), free and clear of all
Liens, charges or claims (including infringement claims with respect to patents,
trademarks, copyrights and the like) except as permitted pursuant to Section
7.2.3.

     SECTION 6.10 Taxes. Except as described on Schedule 6.10, the Borrower and
each of its Subsidiaries has filed all tax returns and reports required by law
to have been filed by it and has paid all taxes and governmental charges thereby
shown to be owing, except any such taxes or charges which are being diligently
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books.

     SECTION 6.11 Pension and Welfare Plans. During the twelve-consecutive-month
period prior to the Original Closing Date and prior to the date of any Borrowing
hereunder, no steps have been taken to terminate any Pension Plan, and no
contribution failure has occurred with respect to any Pension Plan sufficient to
give rise to a Lien under Section 302(f) of ERISA. No condition exists or event
or transaction has occurred with respect to any Pension Plan which reasonably
would be expected to result in the incurrence by the Borrower or any member of
the Controlled Group of any material liability, fine or penalty. Neither the
Borrower nor any member of the Controlled Group has any contingent liability
with respect to any post-retirement benefit under a Welfare Plan, other than
liability for continuation coverage described in Part 6 of Title I of ERISA.

     SECTION 6.12 Environmental Warranties. (a) All facilities and property
(including underlying groundwater) owned or leased by the Borrower or any of its
Subsidiaries have been, and continue to be, owned or leased by the Borrower and
its Subsidiaries in material compliance with all applicable Environmental Laws.

     (b) There have been no past (which have not been remedied or resolved), and
there are no pending or, to the best knowledge of the Borrower, threatened:

                                      -44-

<PAGE>

               (i)  claims, complaints, notices or requests for information
          received by the Borrower or any of its Subsidiaries with respect to
          any alleged material violation of any Environmental Law, or

               (ii) complaints, notices or inquiries to the Borrower or any of
          its Subsidiaries regarding potential material liability under any
          Environmental Law.

          (c) There have been no Releases of Hazardous Materials at, on or under
any property now or previously owned or leased by the Borrower or any of its
Subsidiaries that, singly or in the aggregate, have, or would reasonably be
expected to have, a Material Adverse Effect.

          (d) The Borrower and its Subsidiaries have been issued and are in
material compliance with all material permits, certificates, approvals, licenses
and other material authorizations relating to environmental matters and
necessary or desirable for their businesses.

          (e) No property now or previously owned or leased by the Borrower or
any of its Subsidiaries is listed or proposed for listing (with respect to owned
property only) on the National Priorities List pursuant to CERCLA, on the
CERCLIS or on any similar state list of sites requiring investigation or
clean-up.

          (f) There are no underground storage tanks, active or abandoned,
including petroleum storage tanks, on or under any property now or previously
owned or leased by the Borrower or any of its Subsidiaries.

          (g) Neither the Borrower nor any of its Subsidiaries has directly
transported or directly arranged for the transportation of any Hazardous
Material to any location which is listed or proposed for listing on the National
Priorities List pursuant to CERCLA, on the CERCLIS or on any similar state list
or which is the subject of federal, state or local enforcement actions or other
investigations which reasonably would be expected to lead to material claims
against the Borrower or such Subsidiary thereof for any remedial work, damage to
natural resources or personal injury, including claims under CERCLA.

          (h) To the best of the Borrower's knowledge after due inquiry, there
are no polychlorinated biphenyls or friable asbestos present at any property now
or previously owned or leased by the Borrower or any of its Subsidiaries.

          (i) No conditions exist at, on or under any property now or previously
owned or leased by the Borrower or any of its Subsidiaries which, with the
passage of time, or the giving of notice or both, reasonably would be expected
to give rise to any material liability under any Environmental Law.

     SECTION 6.13 Regulations T, U and X. Neither the Borrower nor any of its
                  ----------------------
Subsidiaries is engaged in the business of extending credit for the purpose of
purchasing or

                                      -45-

<PAGE>

carrying margin stock, and no proceeds of any Loans or any Letter of Credit will
be used for a purpose which violates, or would be inconsistent with, F.R.S.
Board Regulation U or X. Terms for which meanings are provided in F.R.S. Board
Regulation T, U or X or any regulations substituted therefor, as from time to
time in effect, are used in this Section with such meanings.

     SECTION 6.14 Accuracy of Information. All factual information heretofore or
contemporaneously furnished by or on behalf of any Credit Party in writing to
the Agent or any Lender for purposes of or in connection with this Agreement or
any transaction contemplated hereby is, and all other such factual information
hereafter furnished by or on behalf of any Credit Party to the Agent or any
Lender will be, true and accurate in every material respect on the date as of
which such information is dated or certified and as of the date of execution and
delivery of this Agreement by the Agent and such Lender, and such information is
not, or shall not be, as the case may be, incomplete by omitting to state any
material fact necessary to make such information not misleading.

     SECTION 6.15 Solvency. As of the Original Closing Date, after giving effect
to the consummation of the transaction contemplated by the Loan Documents and
the payment of all fees, costs and expenses payable by the Borrower with respect
to the transactions contemplated by the Loan Documents, the Borrower and its
Subsidiaries are Solvent on a consolidated basis.

     SECTION 6.16 Collateral Documents. (a) Subject to the provisions of clause
(b) below with respect to the requirement of the Agent to maintain possession as
the Pledged Collateral, the provisions of each of the Collateral Documents are
effective to create in favor of the Agent for the benefit of the Lenders and the
Agent, a legal, valid and enforceable first priority security interest in all
right, title and interest of each Credit Party in the Collateral described
therein; and financing statements have been filed in the offices in all of the
jurisdictions listed in the schedule to the Borrower Security Agreement and the
Guarantor Security Agreement, and each Intellectual Property Assignment has been
filed in the U.S. Patent and Trademark Office and the U.S. Copyright Office.

          (b) The provisions of the Borrower Pledge Agreement and the Guarantor
Pledge Agreement are effective to create, in favor of the Agent for the benefit
of the Lenders and the Agent, a legal, valid and enforceable first priority
security interest in all of the Collateral described therein; and the Pledged
Collateral was delivered to the Agent or its nominee in accordance with the
terms thereof. The Lien of the Borrower Pledge Agreement and the Guarantor
Pledge Agreement constitutes a perfected, first priority security interest in
all right, title and interest of the Credit Party thereto in the Pledged
Collateral described therein, prior and superior to all other Liens and
interests, provided the Agent maintains possession of the Pledged Collateral for
the term of each such Borrower Pledge Agreement or Guarantor Pledge Agreement,
as applicable.

          (c) All representations and warranties of each Credit Party contained
in the Collateral Documents are true and correct as of the date on which made,
except to the extent

                                      -46-

<PAGE>

such representations pertain to a prior date, in which case such representations
and warranties are true and correct as of such prior date.

     SECTION 6.17 Indebtedness. Attached hereto as Schedule 6.17 is a complete
and correct list of all Indebtedness of the Borrower and its Subsidiaries
outstanding on the Amendment and Restatement Effective Date, showing the
aggregate principal amount which was outstanding on such date. The Borrower has
delivered or caused to be delivered to the Agent a true and complete copy of
each instrument evidencing any Indebtedness listed on Schedule 6.17 and of each
document pursuant to which any of such Indebtedness was issued.

     SECTION 6.18 Service Agreements; Employment Agreements. As of the Amendment
and Restatement Effective Date, the Borrower has delivered to the Agent a true
and complete copy of each Service Agreement and Employment Agreement, and of
each amendment of modification thereof, listed on Schedule 6.18. Each such
Service Agreement and Employment Agreement is a valid and subsisting agreement
and is in full force and effect in accordance with the terms thereof, and no
material default by the Borrower or any of its Subsidiaries exists under any
such Service Agreement or such Employment Agreement and, to the best of the
Borrower's knowledge, no party to any Service Agreement or Employment Agreement
has any accrued right to terminate any such Service Agreement or Employment
Agreement on account of a default by the Borrower or any of its Subsidiaries
which right of default reasonably would be expected to have a Material Adverse
Effect.

     SECTION 6.19 Other Agreements/Program Eligibility. Neither the Borrower nor
any of its Subsidiaries, and to the knowledge of the Borrower's officers, no
Practice or Provider, is in default in the performance, observance or
fulfillment of any obligation, covenant or condition contained in or applicable
with respect to any Medicaid Provider Agreement, Medicare Provider Agreement,
other agreement or instrument to which the Borrower, a Subsidiary, Practice or
Provider is a party with a third party payor, or participation in medicare,
medicaid or a third party payor program in which the Borrower, a Subsidiary,
Practice or Provider participates, which default, if not remedied within any
applicable grace period, reasonably would be expected to (i) result in the
revocation, termination, cancellation, suspension or non-renewal of Medicaid
Certification, Medicare Certification, any similar certification of a material
third party payor, if any, a Medicare Provider Agreement, Medicaid Provider
Agreement or agreement with a third party payor, or eligibility to participate,
directly or indirectly, in medicare, medicaid or material third party payor
programs, or (ii) have a Material Adverse Effect.

     SECTION 6.20 Reimbursement from Third Party Payors. The accounts receivable
of the Borrower, each of its Subsidiaries and, to the knowledge of the
Borrower's officers, each Practice, have been and will continue to be adjusted
reasonably to reflect reimbursement experiences with and policies of third party
payors such as Medicare, Medicaid, Blue Cross/Blue Shield, private insurance
companies, health maintenance organizations, preferred provider organizations,
alternative delivery systems, managed care systems, government

<PAGE>

contracting agencies and other third party payors. In particular, accounts
receivable relating to such third party payors do not and shall not exceed
amounts any obligee is entitled to receive under any capitation arrangement, fee
schedule, discount formula, cost-based reimbursement or other adjustment or
limitation to its usual charges.

     SECTION 6.21 Legal Compliance. The Borrower and each of its Subsidiaries,
and to the knowledge of any of the Borrower's or any of its Subsidiaries'
officers, each Practice and each Provider, have duly complied and are in
compliance with all requirements, restrictions and prohibitions of law,
including, without limitation, any statute, law, treaty, rule, regulation,
manual, guidelines, rules of professional conduct, or order, decree, writ,
injunction or other determination of an arbitrator, court or other governmental
authority, in each case applicable to or binding upon such Person or any of its
property or to which such person or its property is subject and having the force
of law, other than those noncompliance with which would not reasonably be
expected to have a Material Adverse Effect.

     SECTION 6.22 Licensing and Accreditation. Each of the Borrower and each of
its Subsidiaries, and, to the extent applicable, to the knowledge of the
Borrower's officers, each Practice and Provider has, to the extent applicable,
(i) obtained (or been duly assigned) all required certificates of need (other
than as described on Schedule 6.22) or determinations of need, as required by
the relevant state governmental authority, for the acquisition, construction,
expansion of, investment in or operation of its businesses or facilities as
currently operated; (ii) obtained and maintains in good standing all required
licenses; (iii) to the extent customary in the industry in which it is engaged,
obtained and maintains accreditation from all generally recognized accrediting
agencies; (iv) obtained and maintains Medicaid Certification, Medicare
Certification and any similar third party payor certification, if any; and (v)
entered into and maintains in good standing, if applicable, its Medicare
Provider Agreement, its Medicaid Provider Agreement and its agreements with
third party payors. To the knowledge of the Borrower's officers, each Provider
is duly licensed (where licensing is required) by each federal or state agency
or commission, or any other governmental authority having jurisdiction over the
provision of such services rendered by such Provider, and all such required
licenses are in full force and effect on the date hereof and have not been
revoked or suspended or otherwise limited.

     SECTION 6.23 Subordination Provisions. The subordination provisions
contained in all notes, debentures and other instruments entered into or issued
in respect of Subordinated Debt are enforceable against the issuer of the
respective security and the holders thereof in accordance with their respective
terms, and the Loans and all other Obligations are within the definitions of
"Senior Indebtedness", or other comparable definition, included in such
provisions.

     SECTION 6.24 RICO. None of the Borrower nor any of its Subsidiaries is
                  ----
engaged in or has engaged in any course of conduct that reasonably would be
expected to subject any of their

                                      -48-

<PAGE>

respective properties to any Lien, seizure or other forfeiture under any
criminal law, racketeer influenced and corrupt organizations law, civil or
criminal, or other similar laws.

                                  ARTICLE VII

                                    COVENANTS

     SECTION 7.1 Affirmative Covenants. The Borrower agrees with the Agent and
each Lender that, until all Revolving Commitments have terminated and all
Obligations have been paid and performed in full, each Credit Party will perform
the obligations set forth in this Section 7.1 applicable to such Credit Party.

     SECTION 7.1.1 Financial Information, Reports, Notices, etc. The Borrower
will furnish, or will cause to be furnished, to each Lender and the Agent copies
of the following financial statements, reports, notices and information:

          (a) as soon as available and in any event within 45 days after the end
     of each of the first three Fiscal Quarters (commencing with the Fiscal
     Quarter ending June 30, 2000) of each Fiscal Year of the Borrower, to the
     extent prepared to comply with SEC requirements, a copy of the SEC Form
     10-Qs filed by the Borrower with the SEC for each such quarterly period, or
     if no such Form 10-Q was so filed by the Borrower with respect to any such
     quarterly period, consolidated and consolidating balance sheets of the
     Borrower and its Subsidiaries as of the end of such Fiscal Quarter and
     consolidated and consolidating statements of earnings and cash flow of the
     Borrower and its Subsidiaries for such Fiscal Quarter and for the period
     commencing at the end of the previous Fiscal Year and ending with the end
     of such Fiscal Quarter, certified by the Authorized Officer of the
     Borrower;

          (b) as soon as available and in any event within 90 days after the end
     of each Fiscal Year of the Borrower, to the extent prepared to comply with
     SEC requirements, a copy of the SEC Form 10-Ks filed by the Borrower with
     the SEC for such fiscal year, or, if no such Form 10-K was so filed by the
     Borrower for such fiscal year, a copy of the annual audit report for such
     Fiscal Year for the Borrower and its Subsidiaries including therein
     consolidated and consolidating balance sheets of the Borrower and its
     Subsidiaries (which consolidating balance sheets shall be prepared and
     delivered under separate cover by the Borrower) as of the end of such
     Fiscal Year and consolidated and consolidating statements of earnings and
     cash flow of the Borrower and its Subsidiaries (which consolidating
     statements shall be prepared and delivered under separate cover by the
     Borrower) for such Fiscal Year, in the case of the consolidated financial
     statements, certified (without any Impermissible Qualification) by Arthur
     Andersen LLP or other independent public accountants reasonably acceptable
     to the Agent, together with a certificate from such accountants containing
     a computation of, and showing compliance

                                      -49-

<PAGE>

     with, each of the financial ratios and restrictions contained in Section
     7.2.4 and to the effect that, in making the examination necessary for the
     signing of such annual report by such accountants, they have not become
     aware of any Default or Event of Default that has occurred and is
     continuing, or, if they have become aware of such Default or Event of
     Default, describing such Default or Event of Default and the steps, if any,
     which they have been advised are being taken to cure it;

          (c) as soon as available and in any event within 45 days after the end
     of each Fiscal Quarter, a certificate, executed by the chief financial
     officer and/or principal accounting officer of the Borrower, showing (in
     reasonable detail and with appropriate calculations and computations in all
     respects satisfactory to the Agent, including, without limitation, the
     delivery of a Quarterly EBITDA Certificate for each Reporting Person)
     compliance with the financial covenants set forth in Section 7.2.4.;

          (d) as soon as possible and in any event within three Business Days
     after the occurrence of each Default, a statement of the chief financial
     officer and/or principal accounting officer of the Borrower setting forth
     details of such Default and the action which the Borrower has taken and
     proposes to take with respect thereto;

          (e) as soon as possible and in any event within three Business Days
     after (x) the occurrence of any adverse development with respect to any
     litigation, action, proceeding, or labor controversy described in Section
     6.7 or (y) the commencement of any labor controversy, litigation, action,
     proceeding of the type described in Section 6.7, any of which reasonably
     would be expected to have a Material Adverse Effect, notice thereof and
     copies of all documentation relating thereto;

          (f) promptly, but not later than five days after the date of filing
     with the SEC, copies of all financial statements and reports that Borrower
     sends to its shareholders, and copies of all financial statements and
     regular, periodical or special reports (including Forms 10-K, 10-Q and 8-K)
     that Borrower or any of its Subsidiaries may make to, or file with, the SEC
     (including, without limitation, pursuant to Section 7.2.9(b) or any
     national securities exchange;

          (g) immediately upon becoming aware of the institution of any steps by
     the Borrower or any other Person to terminate any Pension Plan, or the
     failure to make a required contribution to any Pension Plan if such failure
     is sufficient to give rise to a Lien under Section 302(f) of ERISA, or the
     taking of any action with respect to a Pension Plan which reasonably would
     be expected to result in the requirement that the Borrower furnish a bond
     or other security to the PBGC or such Pension Plan, or the occurrence of
     any event with respect to any Pension Plan which reasonably would be
     expected to result in the incurrence by the Borrower of any material
     liability, fine or penalty, or any material increase in the contingent
     liability of the Borrower with respect to any post

                                      -50-

<PAGE>

retirement Welfare Plan benefit, notice thereof and copies of all documentation
relating thereto;

          (h) immediately upon becoming aware of any litigation or other
     proceedings being instituted against any Credit Party or any Practice or
     Provider to suspend, revoke or terminate any Medicaid Provider Agreement,
     Medicaid Certification, Medicare Provider Agreement, Medicare
     Certification, eligibility to participate in Medicare or Medicaid, or
     agreement with or certification by, if any, or eligibility to participate
     in a program of a third party payor, which suspension, revocation or
     termination reasonably would be expected to have a Material Adverse Effect,
     promptly deliver to the Agent written notice thereof stating the nature and
     status of such litigation, dispute, proceeding, levy, execution or other
     process; and

          (i) such other information respecting the condition or operations,
     financial or otherwise, of the Borrower or any of its Subsidiaries or any
     Practice as any Lender through the Agent may from time to time reasonably
     request.

     SECTION 7.1.2 Compliance with Laws, etc. (a) The Borrower will, and will
cause each of its Subsidiaries to, comply in all material respects with all
applicable laws, rules, regulations and orders (including, without limitation,
Fraud and Abuse Laws, Medicare Regulations, Medicaid Regulations and the rules
and regulations established by any third party payor), such compliance to
include (without limitation):

          (i)  the maintenance and preservation of its corporate existence and
     qualification as a foreign corporation, except to the extent no longer
     necessary within the reasonable business judgement of the Borrower or such
     Subsidiary, as applicable, or if otherwise terminated pursuant to a
     transaction consummated in accordance with the provisions of Section 7.2.8;
     and

          (ii) the payment, before the same become delinquent, of all taxes,
     assessments and governmental charges imposed upon it or upon its property
     except to the extent being diligently contested in good faith by
     appropriate proceedings and for which adequate reserves in accordance with
     GAAP shall have been set aside on its books.

     (b) the Borrower will further use its reasonable best efforts, subject to
applicable laws, to assure the compliance by all Practices and Providers with
all applicable laws, including, but not limited to, medical licensure and Fraud
and Abuse Laws, relating to their providing of healthcare services in all
material respects.

     SECTION 7.1.3 Maintenance of Properties. The Borrower will, and will cause
each of its Subsidiaries to, maintain, preserve, protect and keep its properties
in good repair, working order and condition, and make necessary and proper
repairs, renewals and replacements so that its business carried on in connection
therewith may be properly conducted at all times unless the

                                      -51-

<PAGE>

Borrower determines in good faith that the continued maintenance of any of its
properties is no longer economically desirable.

     SECTION 7.1.4 Insurance. (a) Schedule 7.1.4 sets forth as of the date of
this Agreement a true and complete listing of all insurance maintained by the
Borrower and each of its Subsidiaries and by each physician and non-physician
Provider. The Borrower will, and will cause each of its Subsidiaries to,
maintain or cause to be maintained with responsible insurance companies
insurance with respect to its properties and business (including business
interruption insurance) against at least such casualties and contingencies and
of at least such types and in at least such amounts as are described in Schedule
7.1.4 which insurance shall name the Agent as loss payee and an additional
insured, and will, upon request of the Agent, furnish to each Lender at
reasonable intervals (provided that, so long as no Event of Default shall have
occurred and be continuing, no such certification shall be required to be
delivered more than once in any Fiscal Year) a certificate of an Authorized
Officer of the Borrower setting forth the nature and extent of all insurance
maintained by the Borrower and its Subsidiaries in accordance with this Section.

          (b) The Borrower will, and with cause each of its Subsidiaries to,
maintain insurance for claims, however characterized, against them in connection
with the provision of medical services by Providers and/or ancillary services
provided by them for Practices covered by Service Agreements, in at least such
amounts per occurrence as are described in Schedule 7.1.4, which insurance shall
name the Agent as an additional insured. The Borrower will further cause each
Practice to maintain medical malpractice insurance in at least such amounts per
occurrence as are described in Schedule 7.1.4.

                                      -52-

<PAGE>

          SECTION 7.1.5 Books and Records. The Borrower will, and will cause
     each of its Subsidiaries to, keep books and records which accurately
     reflect all of its business affairs and transactions and permit the Agent
     and each Lender or any of their respective representatives, at reasonable
     times and intervals, upon, so long as no Event of Default shall exist and
     be continuing, reasonable prior notice delivered during regular business
     hours, to visit all of its offices, to discuss its financial matters with
     its officers and independent public accountant (and the Borrower hereby
     authorizes such independent public accountant to discuss the Borrower's
     financial matters with each Lender or its representatives, provided, so
     long as no Event of Default shall exist or be continuing, a representative
     of the Borrower is present) and to examine (and, at the expense of the
     Borrower, photocopy extracts from) any of its books or other corporate
     records. The Borrower shall pay any fees of such independent public
     accountant incurred in connection with the Agent's or any Lender's exercise
     of its rights pursuant to this Section provided, however, that so long as
     no Event of Default shall exist and be continuing, the Borrower shall not
     be liable for the fees and expenses of such independent public accountant
     related to more than one visit during any Fiscal Year. All visits conducted
     pursuant to this Section 7.1.5 shall be conducted in such a manner so as
     not to disrupt the business operations of the applicable office. All
     information obtained during any such visit shall be subject to the
     provisions of Section 10.12.

          SECTION 7.1.6 Environmental Covenant. The Borrower will, and will
     cause each of its Subsidiaries to:

               (a) use and operate all of its facilities and properties in
          material compliance with all Environmental Laws, keep all necessary
          material permits, approvals, certificates, licenses and other
          authorizations relating to environmental matters in effect and remain
          in material compliance therewith, and handle all Hazardous Materials
          in material compliance with all applicable Environmental Laws;

               (b) immediately notify the Agent and provide copies upon receipt
          of all written material claims, complaints, notices or inquiries
          relating to, the condition of its facilities and properties or
          compliance with Environmental Laws, and shall promptly cure and have
          dismissed with prejudice to the reasonable satisfaction of the Agent
          any actions and proceedings relating to compliance with Environmental
          Laws; and

               (c) provide such information and certifications which the Agent
          may reasonably request from time to time to evidence compliance with
          this Section 7.1.6.

     SECTION 7.1.7 Changes to Certain Agreements. Without the prior written
consent of the Required Lenders, no Credit Party shall make any amendment,
supplement or modification to any agreements evidencing Subordinated Debt;
provided, however, that any such amendment which conforms with applicable law in
all material respects and is not materially adverse to the interests of the
Lenders as Lenders under the Loan Documents shall be permitted without any

                                      -53-

<PAGE>

consent. Copies of such amended agreements shall be delivered promptly to the
Agent by the Borrower.

     SECTION 7.1.8 Governmental Licenses. The Borrower will, and will cause each
                   ----------------------
of its Subsidiaries to, obtain and maintain all material licenses, permits,
agreements, certifications and approvals of all applicable governmental
authorities as are required for the conduct of its business as currently
conducted and herein contemplated, Medicaid Certifications and Medicare
Certifications and certifications of third party payors, if any.

     SECTION 7.1.9 Covenants Extending to Other Persons. The Borrower will, and
will cause each of its Subsidiaries to, use its reasonable best efforts, in
accordance with applicable law (which shall include, without limitation, the
exercise of contractual rights and remedies available to the Borrower and its
Subsidiaries) to cause each Practice or Provider, as appropriate to do with
respect to itself, its business and its assets, each of the things required of a
Credit Party in Sections 7.1.2 through 7.1.8 inclusive, subject, however, in the
case of Section 7.1.5 to any laws, rules or regulations concerning the
confidentiality of medical records.

     SECTION 7.1.10 Solvency. The Borrower and its Subsidiaries on a
                    --------
consolidated basis shall at all times be Solvent.

     SECTION 7.1.11 Further Assurances. (a) The Borrower shall ensure that all
                    ------------------
written information, exhibits and reports furnished to the Agent or the Lenders
do not and will not contain any untrue statement of a material fact and do not
and will not omit to state any material fact or any fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which made, and will promptly disclose to the Agent and the Lenders and correct
any defect or error that may be discovered therein or in any Loan Document or in
the execution, acknowledgment or recordation thereof.

          (b) Promptly upon request of the Agent or the Required Lenders, the
Borrower shall (and shall cause any of its Subsidiaries to) execute,
acknowledge, deliver, record, re-record, file, re-file, register and
re-register, any and all such further acts, deeds, conveyances, security
agreements, mortgages, assignments, estoppel certificates, financing statements
and continuations thereof, termination statements, notices of assignment,
transfers, certificates, assurances and other instruments the Agent or such
Lenders, as the case may be, may reasonably require from time to time in order
(i) to carry out more effectively the purposes of this Agreement or any other
Loan Document, (ii) to subject any of the properties, rights or interests
covered by any of the Collateral Documents to the Liens intended to be created
by any of the Collateral Documents, (iii) to perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and the Liens
intended to be created thereby, and (iv) to better assure, convey, grant,
assign, transfer, preserve, protect and confirm to the Agent and the Lenders the
rights granted or now or hereafter intended to be granted to the Agent and the
Lenders under any Loan Document or under any other document executed in
connection therewith.

                                      -54-

<PAGE>

     SECTION 7.1.12 New Subsidiaries. Within 30 Business Days after the date of
the acquisition or creation of any Subsidiary by the Borrower or a Subsidiary of
the Borrower or in the case of a Non-Wholly Owned ASC Subsidiary which becomes a
Wholly-Owned Subsidiary, such Person will cause to be delivered to the Agent for
the benefit of the Lenders each of the following:

          (i)   in the case of a Subsidiary other than a Non-Wholly-Owned ASC
     Subsidiary, a joinder to the Guaranty, the Guarantor Pledge Agreement and
     the Guarantor Security Agreement;

          (ii)  in the case of a Subsidiary other than a Non-Wholly-Owned ASC
     Subsidiary, if such Subsidiary is a corporation, a limited liability
     company or a partnership that has issued certificates evidencing ownership
     of interests therein, the capital stock or, if applicable, certificates of
     ownership of such limited liability company or partnership, as the case may
     be, of such Person pertaining thereto, together with duly executed stock
     powers or powers of assignment in blank affixed thereto;

          (iii) in the case of a Subsidiary other than a Non-Wholly-Owned ASC
     Subsidiary, if such Subsidiary is a limited liability company or a
     partnership not described in clause (ii) immediately above, an
     acknowledgment of security interest of such limited liability company or
     partnership, as the case may be, with respect to the registration of the
     Lien on membership or partnership interests in such Subsidiary, as the case
     may be, of such Person which acknowledgment shall be in form and substance
     satisfactory to the Agent;

          (iv)  a supplement to the appropriate schedules attached to the
     Collateral Documents to reflect the acquisition by the Borrower or, a
     Subsidiary (other than a Non-Wholly-Owned ASC Subsidiary) of the Borrower,
     of such Subsidiary, certified as true, correct and complete by the
     Authorized Officer of the relevant Credit Party (provided that the failure
     to deliver such supplement shall not impair the rights conferred under the
     Collateral Documents in after acquired Collateral and Pledged Collateral);

          (v)   to the extent requested by Agent in its reasonable discretion,
     an opinion or opinions of counsel to the Borrower and such Subsidiary
     (other than a Non-Wholly-Owned ASC Subsidiary), dated as of the date of
     delivery of any of the documents provided in the foregoing clause (i) and
     addressed to the Agent and the Lenders, in form and substance reasonably
     acceptable to the Agent (which opinion may include assumptions and
     qualifications of similar effect to those contained in the opinions of
     counsel delivered pursuant to Section 5.1.8), to the effect that:

               (A) such Subsidiary is duly organized, validly existing and in
          good standing in the jurisdiction of its organization, has the
          requisite power and authority to own its properties and conduct its
          business as then owned and then proposed to be conducted and is duly
          qualified to transact business and is in good standing in each
          jurisdiction listed on the schedule attached to such opinion;

                                      -55-

<PAGE>

               (B) the execution, delivery and performance of the Guaranty, the
          Guarantor Pledge Agreement and the Guarantor Security Agreement, as
          applicable, described in clause (i) of this Section 7.1.12, have been
          duly authorized by all requisite action (including any required
          shareholder, member or partner approval), such agreement has been duly
          executed and delivered and constitutes the valid and binding
          obligation of such Subsidiary, enforceable against such Subsidiary in
          accordance with its terms, except to the extent such enforceability
          may be limited by applicable bankruptcy, insolvency, reorganization,
          moratorium or similar laws relating to creditors' rights and remedies
          generally, or to general principles of equity, whether enforcement
          thereof is considered in a court of law or equity; and

               (C) all financing statements, instruments and documents are in a
          form which is sufficient to create a security interest in favor of the
          Agent in the Pledged Collateral and the Collateral, as the case may
          be;

          (vi) current copies of the charter documents, including, limited
     liability agreements and certificates of formation, partnership agreements
     and certificates of limited partnership, if applicable, and bylaws of such
     Subsidiary, minutes of duly called and conducted meetings (or duly effected
     consent actions) of the Board of Directors, members, partners, or
     appropriate committees thereof (and, if required by such charter documents,
     bylaws or by applicable laws, of the shareholders, members or partners) of
     such Subsidiary authorizing the actions and the execution and delivery of
     documents described in this Section 7.1.2 and evidence satisfactory to the
     Agent (confirmation of the receipt of which will be provided by the Agent
     to the Lenders) that such Subsidiary is Solvent as of such date and after
     giving effect to the execution of any of the documents required by clause
     (i) above.

     SECTION 7.2 Negative Covenants. The Borrower agrees with the Agent and each
Lender that, until all Revolving Commitments have terminated and all Obligations
have been paid and performed in full, each Credit Party will perform the
obligations set forth in this Section 7.2.

     SECTION 7.2.1 Business Activities. The Borrower will not, and will not
permit any of its Subsidiaries, including, without limitation, any New
Subsidiary, to, engage in any business activity, except in the fields of
enterprise relating to eye care as it is presently conducting and such
activities as may be incidental or related thereto and reasonable extensions
thereof, including, without limitation, the ASP Business.

     SECTION 7.2.2 Indebtedness. The Borrower will not, and will not permit any
of its Subsidiaries to, create, incur, assume or suffer to exist or otherwise
become or be liable in respect of any Indebtedness, other than, without
duplication, the following:

          (a) Indebtedness in respect of the Loans and other Obligations;

                                      -56-

<PAGE>

          (b) until the date of the initial Borrowing, Indebtedness identified
     in Part A of Schedule 6.17;
                  -------------

          (c) Indebtedness, including Subordinated Debt, existing as of the
     Amendment and Restatement Effective Date which is identified in Part B of
     Schedule 6.17, but without giving effect to any extensions, renewals or
     refinancing thereof;

          (d) Indebtedness in respect of Liens to the extent permitted in
     Section 7.2.3(c);
     ----------------

          (e) unsecured Indebtedness incurred in the ordinary course of business
     (including open accounts extended by suppliers on normal trade terms in
     connection with purchases of goods and services, but excluding Indebtedness
     incurred through the borrowing of money or Contingent Liabilities);

          (f) Indebtedness, in respect of Capitalized Lease Liabilities, at any
     one time not to exceed in the aggregate $6,000,000 less the amount of any
     Indebtedness which is outstanding and permitted solely under subsection
     7.2.3.(c);

          (g) Indebtedness consisting of intercompany loans and advances made by
     the Borrower to any Credit Party or by such Credit Party to the Borrower or
     another Credit Party ("Intercompany Loans"), provided that (i) if requested
     by the Agent, the payor Credit Party shall have executed and delivered to
     the payee Credit Party a demand note (the "Intercompany Note") to evidence
     any such Intercompany Loan, which Intercompany Note shall be in form and
     substance satisfactory to Agent pledged to the Agent pursuant to the
     relevant Collateral Documents as additional collateral security for the
     Obligations, (ii) the payee Credit Party shall record all Intercompany
     Loans on its books and records in a manner satisfactory to Agent, (iii) at
     the time any such Intercompany Loan is made by a payee Credit Party and
     after giving effect thereto, each of the payee Credit Party and the payor
     Credit Party shall be Solvent and (iv) the aggregate outstanding principal
     amount of Intercompany Loans to Credit Parties that are non-Wholly-Owned
     Subsidiaries of the Borrower shall not at any one time exceed in the
     aggregate $500,000, provided, however, that the dollar limitation contained
     in this clause (iv) shall not apply to any non-Wholly-Owned Subsidiary that
     has executed and delivered to the Agent a guaranty, pledge agreement and
     security agreement in form and substance similar to the forms of such
     documents executed by Wholly-Owned Subsidiaries of the Borrower;

          (h) Subordinated Debt of the Borrower issued to a Provider in
     connection with a Permitted Acquisition, such Indebtedness to be on terms
     and conditions reasonably satisfactory to the Agent (the Agent hereby
     acknowledges and agrees that the subordination provisions contained in the
     Subordinated Debt existing as of the date hereof are satisfactory);

                                      -57-

<PAGE>

          (i) Subordinated Debt of the Borrower, such Subordinated Debt to
     mature no earlier than one year after the Maturity Date and shall otherwise
     be on terms and conditions reasonably satisfactory to the Agent (the Agent
     hereby acknowledges and agrees that the subordination provisions contained
     in the Subordinated Debt existing as of the date hereof are satisfactory);

          (j) Indebtedness of the Borrower constituting unpaid minority
     interests to a Provider in connection with a Permitted Acquisition, such
     Indebtedness to be on terms and conditions reasonably satisfactory to the
     Agent;

          (k) Indebtedness of a Practice which exists at the time such Practice
     is the subject of a Permitted Acquisition, which Indebtedness is assumed by
     the Credit Party which is a party to such Permitted Acquisition and is
     otherwise permitted pursuant to this Section 7.2.2; and

          (l) Indebtedness represented by the Investments described in Section
                                                                       -------
     7.2.5(h); provided, however, that no Indebtedness otherwise permitted by
     --------  --------  -------
     clauses (d), (e), (f), (g), (h), (i), (j), (k) or (l) shall be permitted
     -----------  ---  ---  ---  ---  ---  ---  ---    ---
     if, after giving effect to the incurrence thereof, any Default shall have
     occurred and be continuing.

     SECTION 7.2.3 Liens. The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of
its property, revenues or assets, whether now owned or hereafter acquired,
except:

          (a) Liens securing payment of the Obligations, granted pursuant to any
     Loan Document;

          (b) until the date of the initial Borrowing; Liens securing payment of
     Indebtedness of the type permitted and described in clause (b) of Section
                                                         ----------    -------
     7.2.2;
     -----

          (c) purchase money security interests, in addition to, and not in
     limitation of, the Capitalized Lease Liabilities described in clause (j)
     hereof, on any property acquired or held by any Credit Party in the
     ordinary course of business, securing Indebtedness incurred or assumed for
     the purpose of financing all or any part of the cost of acquiring such
     property; provided that (i) any such Lien attaches to such property
     concurrently with or within 20 days after the acquisition thereof, (ii)
     such Lien attaches solely to the property so acquired in such transaction,
     (iii) the principal amount of the Indebtedness secured thereby does not
     exceed 90% of the cost of such property and (iv) the principal amount of
     the Indebtedness which is outstanding and which is secured by any and all
     such purchase money security interests shall not at any time exceed
     $6,000,000 less the amount of Indebtedness outstanding and permitted solely
     under subsection 7.2.2(f);

                                      -58-

<PAGE>

          (d) Liens for taxes, assessments or other governmental charges or
     levies not at the time delinquent or thereafter payable without penalty or
     being diligently contested in good faith by appropriate proceedings and for
     which adequate reserves in accordance with GAAP shall have been set aside
     on its books;

          (e) Liens of carriers, warehousemen, mechanics, materialmen and
     landlords incurred in the ordinary course of business for sums not overdue
     or being diligently contested in good faith by appropriate proceedings and
     for which adequate reserves in accordance with GAAP shall have been set
     aside on its books;

          (f) Liens (other than any Lien imposed by ERISA) incurred in the
     ordinary course of business in connection with workmen's compensation,
     unemployment insurance or other forms of governmental insurance or
     benefits, or to secure performance of tenders, statutory obligations,
     leases and contracts (other than for borrowed money) entered into in the
     ordinary course of business or to secure obligations on surety or appeal
     bonds;

          (g) judgment Liens in existence less than 30 days after the entry
     thereof or with respect to which execution has been stayed or the payment
     of which is bonded or covered in full (subject to a customary deductible)
     by insurance maintained with responsible insurance companies;

          (h) Liens in existence on the Amendment and Restatement Effective Date
     and listed on Schedule 7.2.3, but without giving effect to any extensions
                   --------------
     or renewals thereof; and

          (i) easements, rights-of-way, restrictions and other similar
     encumbrances incurred in the ordinary course of business which, in the
     aggregate, do not materially detract from the value of the property subject
     thereto or interfere with the ordinary conduct of the business of the
     property of the Person which is subject thereto;

          (j) Liens in connection with Capitalized Lease Liabilities in the
     amount and to the extent permitted by subsection 7.2.2(f);
                                           -------------------

          (k) Liens on property leased by the Borrower or any Subsidiary or
     other interest or title of the lessor under operating leases securing
     obligations of the Borrower or such Subsidiary to the lessor under such
     leases; and

          (l) Liens on property of a Practice which exist at the time such
     Practice becomes the subject of a Permitted Acquisition to the extent such
     Liens are otherwise permitted pursuant to this Section 7.2.3.

                                      -59-

<PAGE>

     SECTION 7.2.4 Financial Condition. The Borrower will not permit:
                   -------------------

          (a) Its Net Worth as of the end of each Fiscal Quarter to be less than
     85% of the amount of its Net Worth existing on the Original Closing Date,
     plus 50% of Net Income (without giving effect to any losses) for each
     Fiscal Quarter occurring since the Original Closing Date, plus 50% of the
     net proceeds from any equity issuance by the Borrower or any of its
     Subsidiaries occurring since the Original Closing Date, plus 50% of any
     incremental additive equity associated with any Permitted Acquisition.

          (b) the Total Leverage Ratio as of the end of each Fiscal Quarter for
     the twelve-month period preceding such date to be greater than 3.00:1.00.

          (c) as of the last day of any Fiscal Quarter the ratio of (a) EBITDA
     plus rent expenses incurred by the Borrower and its Subsidiaries, minus
     Capital Expenditures incurred by the Borrower and its Subsidiaries, minus
     cash taxes paid by the Borrower and its Subsidiaries, in each case for the
     period of four fiscal quarters then ending, to (b) Fixed Charges for such
     four fiscal quarter period to be less than the ratio set forth below for
     such period:

                Fiscal Quarter Ended                            Ratio
                --------------------                            -----
             Closing through June 30, 2000                      1.15:1.0
             July 1, 2000 through September 30, 2000            1.20:1.0
             October 1, 2000 and each Fiscal Quarter            1.25:1.0
             thereafter

     SECTION 7.2.5 Investments. The Borrower will not, and will not permit any
of its Subsidiaries to, make, incur, assume or suffer to exist any Investment in
any other Person, except:

          (a) Investments existing on the Amendment and Restatement Effective
     Date and identified in Schedule 7.2.5;
                            --------------

          (b) Cash Equivalent Investments and cash, provided, however, that the
     balance maintained in any deposit account not subject to a Lien of the
     Agent shall not exceed $100,000 for a period of seven consecutive days;

          (c) without duplication, Investments permitted as Indebtedness
     pursuant to Section 7.2.2;
                 -------------

          (d) without duplication, Investments permitted as Capital
     Expenditures;

                                      -60-

<PAGE>

          (e) in the ordinary course of business, (1) Investments by the
     Borrower in any of its Wholly-Owned Subsidiaries, or in any new
     Wholly-Owned Subsidiary created after the Original Closing Date in
     connection with a Permitted Acquisition, or by any non-Wholly-Owned
     Subsidiary in any of its Subsidiaries, by way of contributions to capital
     and (2) Investments by the Borrower or any Wholly-Owned Subsidiary in any
     Non-Wholly-Owned ASC Subsidiary in an amount not to exceed $500,000 for all
     Investments consummated pursuant to this clause (e)(2) within the previous
     twelve (12) month period provided that the Borrower is in compliance on a
     pro forma basis after giving effect to such Investment with all of the
     covenants contained in this Agreement;

          (f) Permitted Acquisitions by the Borrower or a Wholly-Owned
     Subsidiary of the Borrower (or, in the case of the purchase of an ASC
     Practice, by the Borrower or a Subsidiary of the Borrower);

          (g) the acquisition by the Borrower or a Wholly-Owned Subsidiary of
     the Borrower of 100% of the minority interests held by a Provider in a
     non-Wholly-Owned Subsidiary, provided that any such acquisition is made
     solely in connection with the merger of such non-Wholly-Owned Subsidiary
     into the Borrower or a Wholly-Owned Subsidiary of the Borrower as permitted
     by Section 7.2.8;

          (h) Investments by the Borrower or any Subsidiary consisting of loans
     to Providers in an amount not to exceed $300,000 individually or $2,000,000
     in the aggregate outstanding at any one time;

          (i) Investments constituting Hedging Agreements of the Borrower;

          (j) Investments by a Practice which exist at the time such Practice is
     the subject of a Permitted Acquisition to the extent such Investments are
     otherwise permitted pursuant to this Section 7.2.5; and

          (k) Investments by the Borrower or a Subsidiary of the Borrower
     pursuant to ASC Subsidiary Capital Events provided that (1) no Default or
     Event of Default shall have occurred or be continuing both before and after
     giving effect to such ASC Subsidiary Capital Event, (2) the Borrower must
     be able to comply on a pro forma basis after giving effect to such ASC
     Subsidiary Capital Event with all of the covenants of this Agreement; and
     (3) in the event that the Borrower's Total Leverage Ratio on a pro forma
     basis (after giving effect to the ASC Subsidiary Capital Event) is greater
     than 2.25:1.0 the aggregate consideration in connection with such ASC
     Subsidiary Capital Event shall not exceed $10,000,000 individually and
     $30,000,0000 for all ASC Subsidiary Capital Events consummated within the
     previous twelve (12) month period when aggregated with the Consideration
     paid for Permitted Acquisitions permitted by Section 7.2.5(f) during such
     period, without duplication;

provided, however, that
--------  -------

                                      -61-

<PAGE>

          (l) any Investment which when made complies with the requirements of
     the definition of the term "Cash Equivalent Investment" may continue to be
     held notwithstanding that such Investment if made thereafter would not
     comply with such requirements; and

          (m) no Investment otherwise permitted by clauses (e), (f), (g), (h),
     (i), (j) or (l) shall be permitted to be made if, immediately before or
     after giving effect thereto, any Default shall exist and be continuing.

     SECTION 7.2.6 Restricted Payments, etc. On and at all times after the
Original Closing Date:

          (a) The Borrower will not, and will not permit any of its Subsidiaries
     to, declare, pay or make any dividend or distribution (in cash, property or
     obligations) on any shares of any class of capital stock (now or hereafter
     outstanding) of the Borrower or such Subsidiary or on any warrants, options
     or other rights with respect to any shares of any class of capital stock
     (now or hereafter outstanding) of the Borrower or such Subsidiary (other
     than in the case of (I) the Borrower (x) dividends or distributions payable
     in its common stock or warrants to purchase its common stock or splitups or
     reclassifications of its stock into additional or other shares of its
     common stock, (y) scheduled dividend payments on its preferred stock so
     long as no Default or Event of Default has occurred and is continuing both
     before and after giving effect to the payment of such dividend and (z)
     distributions to any Subsidiary which is a limited liability company of the
     Borrower solely to permit the members thereof to make payment of its
     federal and state income tax liability attributable to such limited
     liability company's taxable income, whether or not a Default or an Event of
     Default then or (II) any Subsidiary which is a limited liability company,
     distributions to members of any such Subsidiary solely to permit such
     members to make payment of their federal and state income tax liability
     attributably to such member's taxable income of such Subsidiary whether or
     not a Default or an Event of Default than exists) or apply, or permit any
     of its Subsidiaries to apply, any of its funds, property or assets to the
     purchase, redemption, sinking fund or other retirement of, or agree or
     permit any of its Subsidiaries to purchase or redeem, any shares of any
     class of capital stock (now or hereafter outstanding) of the Borrower, or
     warrants, options or other rights with respect to any shares of any class
     of capital stock (now or hereafter outstanding) of the Borrower, except
     that, (A), in addition to distributions permitted pursuant to clause
     (a)(II) above, any Subsidiary of the Borrower may declare and pay cash
     dividends and distributions to its equity holders and (B) so long as no
     Default or Event of Default then exists or would result therefrom and so
     long as the Borrower would be able to comply on a pro forma basis, assuming
     such redemption or purchase occurred, with all of the covenants contained
     in this Agreement, the Borrower may redeem or purchase shares of its stock
     held by former employees of the Borrower or any of its Subsidiaries
     following their death, disability or the termination of their employment;

                                      -62-

<PAGE>

          (b) Borrower will not, and will not permit any of its Subsidiaries to:

               (i)  make any payment or prepayment of principal of, or make any
          payment of interest on, any Subordinated Debt or on any put option
          granted to a holder of Subordinated Debt on any day other than the
          stated, scheduled date for such payment or prepayment set forth in the
          documents and instruments memorializing such Subordinated Debt or such
          put option, or which would violate the subordination provisions of
          such Subordinated Debt or such put option, or while any Default or
          Event of Default exists and is continuing both before and after giving
          effect to such payment; or

               (ii) redeem, purchase or defease any Subordinated Debt other than
          Subordinated Debt held by a Provider or a Practice, so long as no
          Default or Event of Default exists or is continuing both before and
          after giving effect to such redemption, purchase or defeasance; and

     (c)  Borrower will not, and will not permit any Subsidiary to, make any
sinking fund payment or deposit for any of the foregoing purposes.

     SECTION 7.2.7 Intentionally Omitted.

     SECTION 7.2.8 Consolidation, Merger, etc. The Borrower will not, and will
not permit any of its Subsidiaries to, liquidate or dissolve, consolidate with,
or merge into or with, any other corporation, or purchase or otherwise acquire
all or substantially all of the assets of any Person (or of any division
thereof) except:

          (a)  any such Subsidiary may liquidate or dissolve voluntarily into,
     and may merge with and into, the Borrower or any Wholly-Owned Subsidiary of
     the Borrower or any Guarantor, and the assets or stock of any Subsidiary
     may be purchased or otherwise acquired by the Borrower or any Wholly-Owned
     Subsidiary of the Borrower or any Guarantor;

          (b)  so long as no Default or Event of Default exists and is
     continuing or would occur after giving effect thereto, the Borrower or any
     Wholly-Owned Subsidiary of the Borrower (or in the case of the purchase of
     an ASC Practice, the Borrower or any Subsidiary of the Borrower) may
     consummate a Permitted Acquisition; and

          (c)  any Subsidiary may liquidate or dissolve into or merge with or
     into any other Person, provided that, after giving effect thereto (i) no
     Default or Event of Default shall exist or be continuing; (ii) the Net
     Worth of the surviving Person shall be at least equal to the Net Worth of
     the applicable Subsidiary immediately prior to the consummation of any such
     liquidation, dissolution or merger and (iii) the surviving Person shall
     assume all Obligations of the applicable Subsidiary under the Loan
     Documents.

                                      -63-

<PAGE>

     SECTION 7.2.9 Asset and Capital Stock Dispositions, etc.(a) The Borrower
will not, and will not permit any of its Subsidiaries to, sell, transfer, lease,
contribute or otherwise convey, or grant options, warrants or other rights with
respect to, all or any substantial part of its assets (including accounts
receivable and capital stock of Subsidiaries) to any Person, unless:

          (a)  such sale, transfer, lease, contribution or conveyance is in the
     ordinary course of its business or is permitted by Section 7.2.9(b);
                                                        ----------------

          (b)  the net book value of such assets, together with the net book
     value of all other assets sold, transferred, leased, contributed or
     conveyed otherwise than in the ordinary course of business by the Borrower
     or any of its Subsidiaries pursuant to this clause since the Original
     Closing Date, does not exceed $100,000 (exclusive of the value of any
     transaction described in the preceding clause (i)); or

          (c)  the Borrower or any Subsidiary of the Borrower may consummate a
     Permitted Asset Disposition.

          (b)  the Borrower will not, and will not permit any of its
     Subsidiaries to, issue, sell, assign, pledge or otherwise encumber or
     dispose of any shares of capital stock or other equity securities in the
     Borrower or any such Subsidiary (other than pursuant to this Agreement or
     any other Loan Document), including warrants, rights or options to acquire
     shares or other equity securities of the Borrower or any of its
     Subsidiaries; provided that, notwithstanding the foregoing, and so long as
     no Default or Event of Default will result therefrom, :

               (i)   (x) the Borrower may issue capital stock (or warrants,
          rights or options to purchase capital stock) of the Borrower in
          connection with a Permitted Acquisition and (y) a Subsidiary of the
          Borrower may undertake a Permitted Equity Ownership Sale;

               (ii)  the Borrower may issue common stock of the Borrower to a
          Provider upon the conversion of Subordinated Debt held by such
          Provider into common stock of the Borrower pursuant to the terms and
          conditions contained in the documentation governing such Subordinated
          Debt;

               (iii) the Borrower may issue common stock of the Borrower in
          connection with a registered offering, provided, however, that the
          Borrower shall have delivered a certified copy of each agreement,
          document or other instrument (including, without limitation, any
          registration statement and underwriting agreement) entered into by the
          Borrower in connection with such registered offering;

               (iv)  the Borrower may issue capital stock, and related options,
          of the Borrower to any permitted participant under Borrower's stock
          incentive plan or to

                                      -64-

<PAGE>

          any permitted participant under any future stock incentive plans
          established by the Borrower and reasonably acceptable to the Agent;
          and

               (v) the Borrower may issue capital stock (or warrants, rights or
          options to purchase capital stock) of the Borrower so long as in
          connection with a private placement of its capital stock the
          consideration received by the Borrower in connection with such sale is
          (x) for fair market value (as determined by the Board of Directors of
          the Borrower) and (y) paid in immediately available funds.

To the extent the Required Lenders waive the provisions of this Section 7.2.9
with respect to the sale of any Collateral, or any Collateral is sold as
permitted by this Section 7.2.9, such Collateral shall be sold free and clear of
the Liens created by the Collateral Documents and, if requested by the Borrower,
the Guarantor owner of such Collateral shall be released from the Guaranty, and
the portion of the Collateral owned by such Guarantor shall be released from the
Guarantor Security Agreement and the Agent shall be authorized to take any
actions deemed appropriate in order to effect the foregoing.

     SECTION 7.2.10 Modification of Certain Agreements. Except as otherwise
permitted pursuant to Section 7.1.7 hereof, the Borrower will not, and will not
permit any of its Subsidiaries to, consent to any amendment, supplement or other
modification of any of the terms or provisions contained in, or applicable to,
its Organizational Documents, any Service Agreement or Employment Agreement
listed on Schedule 6.18, any document, once entered into, relating to a
Permitted Acquisition, other than any amendment, supplement or other
modification that conforms with applicable laws in all material respects and is
not material or does not have an adverse effect on the Lenders as Lenders under
the Loan Documents, or any document or instrument evidencing or applicable to
any Subordinated Debt or any put option granted to the holders of Subordinated
Debt, other than any amendment, supplement or other modification which extends
the date or reduces the amount of any required repayment or redemption.
Notwithstanding anything else in this Section 7.2.10 to the contrary, the
Borrower and its Subsidiaries may terminate or make any necessary modification
to the Organizational Documents, Service Agreements or Employment Agreements of
a Subsidiary which is the subject of a Permitted Asset Disposition.

     SECTION 7.2.11 Transactions with Affiliates. The Borrower will not, and
will not permit any of its Subsidiaries to, enter into, or cause, suffer or
permit to exist any arrangement or contract with any of its other Affiliates
(other than a Subsidiary Guarantor) unless such arrangement or contract is fair
and equitable to the Borrower or such Subsidiary and is an arrangement or
contract of the kind which would be entered into by a prudent Person in the
position of the Borrower or such Subsidiary with a Person which is not one of
its Affiliates.

     SECTION 7.2.12 Negative Pledges, Restrictive Agreements, etc. The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any
agreement (excluding this Agreement, any other Loan Document and any agreement
governing any Indebtedness

                                      -65-

<PAGE>

permitted either by clause (b) of Section 7.2.2 as in effect on the Amendment
and Restatement Effective Date or by clause (d) of Section 7.2.2 as to the
assets financed with the proceeds of such Indebtedness) prohibiting:

          (a) the creation or assumption of any Lien upon its properties,
     revenues or assets, whether now owned or hereafter acquired, or the ability
     of any Credit Party to amend or otherwise modify this Agreement or any
     other Loan Document; or

          (b) the ability of any Subsidiary to make any payments, directly or
     indirectly, to the Borrower by way of dividends, distributions, advances,
     repayments of loans or advances, reimbursements of management and other
     intercompany charges, expenses and accruals or other returns on
     investments, or any other agreement or arrangement which restricts the
     ability of any such Subsidiary to make any payment, directly or indirectly,
     to the Borrower.

<PAGE>

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

     SECTION 8.1 Listing of Events of Default. Each of the following events or
occurrences described in this Section 8.1 shall constitute an "Event of
Default".

     SECTION 8.1.1 Non-Payment of Obligations. The Borrower shall default in the
payment or prepayment when due of any principal of or interest on any Loan or
any reimbursement obligation when due, or the Borrower shall default (and such
default shall continue unremedied for a period of five days) in the payment when
due of any commitment fee or other fee or of any other Obligation.

     SECTION 8.1.2 Breach of Warranty. Any representation or warranty of any
Credit Party made or deemed to be made hereunder or in any other Loan Document
executed by it, any Letter of Credit or any other writing or certificate
furnished by or on behalf of any Credit Party to the Agent or any Lender for the
purposes of or in connection with this Agreement or any such other Loan Document
or Letter of Credit (including any certificates delivered pursuant to Article V)
is or shall be incorrect when made in any material respect.

     SECTION 8.1.3 Non-Performance of Certain Covenants and Obligations. Any
Credit Party shall default in the due performance and observance of any of its
obligations under Sections 7.1.1, 7.1.7, 7.1.8, 7.1.11, 7.1.12 or Section 7.2.

     SECTION 8.1.4 Non-Performance of Other Covenants and Obligations. Any
Credit Party shall default in the due performance and observance of any other
agreement contained herein or in any other Loan Document executed by it, and
such default shall continue unremedied for a period of 30 days after notice
thereof shall have been given to the Borrower by the Agent or any Lender.

     SECTION 8.1.5 Default on Other Indebtedness. A default shall occur in the
payment when due (subject to any applicable grace period), whether by
acceleration or otherwise, of any Indebtedness (other than Indebtedness
described in Section 8.1.1) of any Credit Party having a principal amount,
individually or in the aggregate, in excess of $1,000,000, or a default shall
occur in the performance or observance of any obligation or condition with
respect to such Indebtedness if the effect of such default is to accelerate the
maturity of any such Indebtedness or such default shall continue unremedied for
any applicable period of time sufficient to permit the holder or holders of such
Indebtedness, or any trustee or agent for such holders, to cause such
Indebtedness to become due and payable prior to its expressed maturity.

     SECTION 8.1.6 Judgments. Any judgment or order for the payment of money in
     ---------
excess of $1,000,000 shall be rendered against any Credit Party (which judgement
is not covered by

                                      -67-

<PAGE>

insurance and with respect to such judgment an insurance carrier has not
accepted responsibility for coverage) and either:

          (a) enforcement proceedings shall have been commenced by any creditor
     upon such judgment or order; or

          (b) there shall be any period of 10 consecutive days during which a
     stay of enforcement of such judgment or order, by reason of a pending
     appeal or otherwise, shall not be in effect.

     SECTION 8.1.7 Pension Plans. Any of the following events shall occur with
respect to any Pension Plan:

          (a) the institution of any steps by the Borrower, any member of its
     Controlled Group or any other Person to terminate a Pension Plan if, as a
     result of such termination, the Borrower or any such member reasonably
     would be expected to be required to make a contribution to such Pension
     Plan, or would reasonably expect to incur a liability or obligation to such
     Pension Plan, in excess of $1,000,000; or

          (b) a contribution failure occurs with respect to any Pension Plan
     sufficient to give rise to a Lien under Section 302(f) of ERISA.

     SECTION 8.1.8 Change of Control. Any Change of Control shall occur.
                   -----------------

     SECTION 8.1.9 Bankruptcy, Insolvency, etc. Any Credit Party shall:

          (a) become insolvent or generally fail to pay, or admit in writing its
     inability or unwillingness to pay, its debts as they become due;

          (b) apply for, consent to, or acquiesce in, the appointment of a
     trustee, receiver, sequestrator or other custodian for such Credit Party or
     any property of such Credit Party, or make a general assignment for the
     benefit of creditors;

          (c) in the absence of such application, consent or acquiescence,
     permit or suffer to exist the appointment of a trustee, receiver,
     sequestrator or other custodian for such Credit Party or for a substantial
     part of the property of such Credit Party, and such trustee, receiver,
     sequestrator or other custodian shall not be discharged within 60 days,
     provided that the Borrower hereby expressly authorizes the Agent and each
     Lender to appear in any court conducting any relevant proceeding during
     such 60-day period to preserve, protect and defend their rights under the
     Loan Documents;

          (d) permit or suffer to exist the commencement of any bankruptcy,
     reorganization, debt arrangement or other case or proceeding under any
     bankruptcy or insolvency law, or any dissolution, winding up or liquidation
     proceeding, in respect of

<PAGE>

     such Credit Party, and, if any such case or proceeding is not commenced by
     such Credit Party, such case or proceeding shall be consented to or
     acquiesced in by such Credit Party or shall result in the entry of an order
     for relief or shall remain for 60 days undismissed, provided that the
     Borrower hereby expressly authorizes the Agent and each Lender to appear in
     any court conducting any such case or proceeding during such 60-day period
     to preserve, protect and defend their rights under the Loan Documents; or

          (e) take any action authorizing, or in furtherance of, any of the
     foregoing.

     SECTION 8.1.10 Impairment of Security, etc. Any Loan Document, or any Lien
granted thereunder, shall (except in accordance with its terms or pursuant to
Section 7.2.9), in whole or in part, terminate, cease to be effective or cease
to be the legally valid, binding and enforceable obligation of any Credit Party
thereto; any Credit Party or any other party shall, directly or indirectly,
contest in any manner the effectiveness, validity, binding nature or
enforceability of any Loan Document or Lien granted thereunder; or any Lien
securing any Obligation shall, in whole or in part, cease to be a perfected
first priority Lien, subject only to those exceptions expressly permitted by
such Loan Document.

     SECTION 8.1.11 Fraud and Abuse Laws. Receipt by any Credit Party, Practice
or Provider of a notice from a governmental authority or third party payor that
it intends to disallow requested reimbursements, or intends to demand or demands
adjustment or repayment of past reimbursements in excess of two percent (2%) of
the gross revenues of the Borrower for the previous fiscal quarter respecting
amounts submitted for reimbursement or collected by such Credit Party, Practice
or Provider from participation in the Medicare, Medicaid or third party payor
programs if the gross revenues (determined in accordance with GAAP) to such
Credit Party arising from the affected Credit Party, Practice or Provider exceed
one-half percent (1/2%) of the gross revenues (determined in accordance with
GAAP) of the Borrower for the previous Fiscal Quarter.

     SECTION 8.1.12 Certifications. (i) Revocation, suspension or involuntary
cancellation or termination of any Medicare Certification, Medicare Provider
Agreement, Medicaid Certification, Medicaid Provider Agreement or third party
payor certification, if any, or agreement of or affecting any Credit Party,
Practice or Provider, or (ii) the loss of any other permits, licenses,
authorizations, certifications or approval from any federal, state or local
governmental authority or termination of any contract with any such authority by
a Credit Party, Practice or Provider, in either case which cancellation,
revocation, suspension or termination, (x) continues for a period greater than
60 days and (y) results in the suspension or termination of operations of any
Credit Party or Practice or in the failure of any Credit Party, Practice or
Provider to be eligible to participate in Medicare, Medicaid or third party
payor programs or to accept assignments of rights to reimbursement under
Medicaid Regulations, Medicare Regulations or guidelines established by a third
party payor, provided that any such events described in this Section 8.1.12
shall result either singly or in the aggregate in the termination, cancellation,
revocation, suspension or material impairment of operations or rights to

<PAGE>

reimbursement which produce two percent (2%) or more of the Borrower's gross
revenues (determined in accordance with GAAP).

     SECTION 8.1.13 Service Agreements. (a) The termination of any Service
Agreement (other than in connection with a Permitted Asset Disposition) by a
Credit Party or Practice which, either individually, or when aggregated with
other Service Agreements (other than in connection with a Permitted Asset
Disposition) that have been terminated during the preceding twelve-month period
constitutes more than 10% of annual EBITDA of the Borrower; or (b) any Equity
Provider or group of Equity Providers within a given Practice cease to be
employed or otherwise retained by such Practice (other than in connection with a
Permitted Asset Disposition) and such Equity Provider or group of Equity
Providers accounted for 10% or more of the consolidated net revenues (either
individually, or when aggregated with the net revenues of other Equity Providers
who have ceased to be employed or otherwise retained by Reporting Persons within
the preceding twelve-month period (other than in connection with a Permitted
Asset Disposition)) of the Borrower and its Subsidiaries, in each case for the
twelve-month period immediately preceding the date of such termination.

     SECTION 8.2 Action if Bankruptcy. If any Event of Default described in
clauses (a) through (e) of Section 8.1.9 shall occur, the Revolving Commitments
(if not theretofore terminated) and the obligation of the Letter of Credit
Issuer to issue Letters of Credit shall automatically terminate and the
outstanding principal amount of all outstanding Loans and all other Obligations
shall automatically be and become immediately due and payable, without notice or
demand.

     SECTION 8.3 Action if Other Event of Default. If any Event of Default
(other than any Event of Default described in clauses (a) through (e) of Section
8.1.9) shall occur for any reason, whether voluntary or involuntary, and be
continuing, the Agent, upon the direction of the Required Lenders, shall by
notice to the Borrower declare all or any portion of the outstanding principal
amount of the Loans and other Obligations to be due and payable and/or the
Revolving Commitments (if not theretofore terminated) and/or the obligation of
the Letter of Credit Issuer to issue Letters of Credit to be terminated,
whereupon the full unpaid amount of such Loans and other Obligations which shall
be so declared due and payable shall be and become immediately due and payable,
without further notice, demand or presentment, and/or, as the case may be, the
Revolving Commitments shall terminate.

     SECTION 8.4 Letters of Credit. In addition to the foregoing, following the
occurrence and during the continuance of an Event of Default, so long as any
Letter of Credit has not been fully drawn and has not been canceled or expired
by its terms, upon demand by the Lenders, the Borrower shall deposit in an
account (the "Letter of Credit Cash Collateral Account") maintained with
National City in the name of the Agent, for the benefit of itself and the
Lenders, cash in an amount equal to the aggregate undrawn face amount of all
outstanding Letters of Credit and all fees and other amounts due or which may
become due with respect thereto. The Borrower shall have no control over funds
in the Letter of Credit Cash Collateral

<PAGE>

Account, which funds shall be invested by the Agent from time to time in its
discretion in certificates of deposit of National City having a maturity not
exceeding thirty days. Such funds shall be promptly applied by the Agent to
reimburse the Letter of Credit Issuer for drafts drawn from time to time under
the Letters of Credit. Such funds, if any, remaining in the Letter of Credit
Cash Collateral Account following the payment of all Obligations in full or the
earlier termination of all Events of Default shall, unless the Agent is
otherwise directed by a court of competent jurisdiction, be promptly paid over
to the Borrower.

                                   ARTICLE IX

                                    THE AGENT

     SECTION 9.1 Actions. Each Lender hereby appoints National City as its Agent
under and for purposes of this Agreement, the Notes and each other Loan
Document. Each Lender authorizes the Agent to act on behalf of such Lender under
this Agreement, the Notes and each other Loan Document and, in the absence of
other written instructions from the Required Lenders received from time to time
by the Agent (with respect to which the Agent agrees that it will comply, except
as otherwise provided in this Section or as otherwise advised by counsel), to
exercise such powers hereunder and thereunder as are specifically delegated to
or required of the Agent by the terms hereof and thereof, together with such
powers as may be reasonably incidental thereto. Each Lender hereby indemnifies
(which indemnity shall survive any termination of this Agreement) the Agent, pro
rata according to such Lender's Percentage, from and against any and all
liabilities, obligations, losses, damages, claims, costs or expenses of any kind
or nature whatsoever which may at any time be imposed on, incurred by, or
asserted against, the Agent in any way relating to or arising out of this
Agreement, the Notes and any other Loan Document, including reasonable
attorneys' fees, and as to which the Agent is not reimbursed by the Borrower;
provided, however, that no Lender shall be liable for the payment of any portion
of such liabilities, obligations, losses, damages, claims, costs or expenses
which are determined by a court of competent jurisdiction in a final proceeding
to have resulted solely from the Agent's gross negligence or willful misconduct.
The Agent shall not be required to take any action hereunder, under the Notes or
under any other Loan Document, or to prosecute or defend any suit in respect of
this Agreement, the Notes or any other Loan Document, unless it is indemnified
hereunder to its satisfaction. If any indemnity in favor of the Agent shall be
or become, in the Agent's determination, inadequate, the Agent may call for
additional indemnification from the Lenders and cease to do the acts indemnified
against hereunder until such additional indemnity is given.

     SECTION 9.2 Funding Reliance, etc. Unless the Agent shall have been
notified by telephone, confirmed in writing, by any Lender by 5:00 p.m., Chicago
time, on the day prior to a Borrowing that such Lender will not make available
the amount which would constitute its Percentage of such Borrowing on the date
specified therefor, the Agent may assume that such Lender has made such amount
available to the Agent and, in reliance upon such assumption, make available to
the Borrower a corresponding amount. If and to the extent that such Lender

                                      -71-

<PAGE>

shall not have made such amount available to the Agent, such Lender and the
Borrower severally, without duplication, agree to repay the Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date the Agent made such amount available to the Borrower to the date
such amount is repaid to the Agent, at the interest rate applicable at the time
to Loans comprising such Borrowing.

     SECTION 9.3 Exculpation. Neither the Agent nor any of its directors,
officers, employees or agents shall be liable to any Lender for any action taken
or omitted to be taken by it under this Agreement or any other Loan Document, or
in connection herewith or therewith, except for its own willful misconduct or
gross negligence, nor responsible for any recitals or warranties herein or
therein, nor for the effectiveness, enforceability, validity or due execution of
this Agreement or any other Loan Document, nor for the creation, perfection or
priority of any Liens purported to be created by any of the Loan Documents, or
the validity, genuineness, enforceability, existence, value or sufficiency of
any collateral security, nor to make any inquiry respecting the performance by
the Borrower of its obligations hereunder or under any other Loan Document. Any
such inquiry which may be made by the Agent shall not obligate it to make any
further inquiry or to take any action. The Agent shall be entitled to rely upon
advice of counsel concerning legal matters and upon any notice, consent,
certificate, statement or writing which the Agent believes to be genuine and to
have been presented by a proper Person.

     SECTION 9.4 Successor. The Agent may resign as such at any time upon at
least 30 days' prior notice to the Borrower and all Lenders. If the Agent at any
time shall resign, the Required Lenders, with, so long as no Default or Event of
Default exists and is continuing, the consent of the Borrower, may appoint
another Lender as a successor Agent which shall thereupon become the Agent
hereunder. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the
retiring Agent's giving notice of resignation, then the retiring Agent may, on
behalf of the Lenders, appoint a successor Agent, which shall be one of the
Lenders or a commercial banking institution organized under the laws of the U.S.
(or any State thereof) or a U.S. branch or agency of a commercial banking
institution, and having a combined capital and surplus of at least $500,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor Agent shall be entitled to receive from the retiring Agent such
documents of transfer and assignment as such successor Agent may reasonably
request, and shall thereupon succeed to and become vested with all rights,
powers, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Agent's resignation hereunder as the Agent, the provisions of

          (i) this Article IX shall inure to its benefit as to any actions taken
                   ----------
     or omitted to be taken by it while it was the Agent under this Agreement;
     and

          (ii) Section 10.3 and Section 10.4 shall continue to inure to its
               ------------     ------------
     benefit.

                                      -72-

<PAGE>

     SECTION 9.5 Loans by National City. National City shall have the same
rights and powers with respect to (x) the Loans made by it or any of its
Affiliates, and (y) the Notes held by it or any of its Affiliates as any other
Lender and may exercise the same as if it were not the Agent. National City and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of business with the Borrower or any Subsidiary or Affiliate of
Borrower as if National City were not the Agent hereunder.

     SECTION 9.6 Credit Decisions. Each Lender acknowledges that it has,
independently of the Agent and each other Lender, and based on such Lender's
review of the financial information of each Credit Party, this Agreement, the
other Loan Documents (the terms and provisions of which being satisfactory to
such Lender) and such other documents, information and investigations as such
Lender has deemed appropriate, made its own credit decision to extend its
Revolving Commitment. Each Lender also acknowledges that it will, independently
of the Agent and each other Lender, and based on such other documents,
information and investigations as it shall deem appropriate at any time,
continue to make its own credit decisions as to exercising or not exercising
from time to time any rights and privileges available to it under this Agreement
or any other Loan Document.

     SECTION 9.7 Copies, etc. The Agent shall give prompt notice to each Lender
of each notice or request required or permitted to be given to the Agent by any
Credit Party pursuant to the terms of this Agreement (unless concurrently
delivered to the Lenders by such Credit Party). The Agent will distribute to
each Lender each document or instrument received for its account and copies of
all other communications received by the Agent from any Credit Party for
distribution to the Lenders by the Agent in accordance with the terms of this
Agreement.

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.1 Waivers, Amendments, etc. The provisions of this Agreement and
of each other Loan Document may from time to time be amended, modified or
waived, if such amendment, modification or waiver is in writing and consented to
by the Borrower and the Required Lenders; provided, however, that no such
amendment, modification or waiver which would:

          (a) modify any requirement hereunder that any particular action be
     taken by all the Lenders or by the Required Lenders shall be effective
     unless consented to by each Lender;

          (b) modify this Section 10.1, change the definition of "Required
     Lenders", increase the Revolving Commitment Amount or the Percentage of any
     Lender, reduce any fees described in Article III, change the schedule of
     repayments of Loans provided for in Section 3.1.2, release any Guarantor
     from its obligations pursuant to any Guaranty, release all or substantially
     all of the collateral security, except as otherwise specifically

                                      -73-

<PAGE>

     provided in any Loan Document or extend the Revolving Commitment
     Termination Date or Maturity Date shall be made without the consent of each
     Lender and each holder of a Note;

          (c) extend the due date for, or reduce the amount of, any scheduled
     repayment or prepayment of principal of or interest on any Loan or any fee
     payable to a Lender (or reduce the principal amount of or rate of interest
     on any Loan) shall be made without the consent of the holder of that Note
     evidencing such Loan or Lender entitled to such fee;

          (d) affect adversely the interests, rights or obligations of the Agent
     qua the Agent shall be made without --- consent of the Agent; or

          (e) modify Section 2.7 or 8.4 shall be made without the consent of the
                     -----------    ---
Letter of Credit Issuer.

No failure or delay on the part of the Agent, any Lender or the holder of any
Note in exercising any power or right under this Agreement or any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power or right preclude any other or further exercise
thereof or the exercise of any other power or right. No notice to or demand on
any Credit Party in any case shall entitle it to any notice or demand in similar
or other circumstances. No waiver or approval by the Agent, any Lender or the
holder of any Note under this Agreement or any other Loan Document shall, except
as may be otherwise stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval hereunder shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.

     SECTION 10.2 Notices. All notices and other communications provided to any
party hereto under this Agreement or any other Loan Document shall be in writing
or by facsimile transmission and addressed, delivered or transmitted to such
party at its address, facsimile number transmission set forth below in Schedule
10.2 hereto or set forth in the Lender Assignment Agreement or at such other
address, or facsimile transmission number as may be designated by such party in
a notice to the other parties. Any notice, if mailed and properly addressed with
postage prepaid or if properly addressed and sent by pre-paid courier service,
shall be deemed given when received; any notice, if transmitted by facsimile
transmission, shall be deemed given when transmitted, provided such notice is
delivered or facsimile transmitted during regular business hours on a Business
Day.

     SECTION 10.3 Payment of Costs and Expenses. The Borrower agrees to pay on
demand all reasonable expenses of the Agent (including the reasonable fees and
out-of-pocket expenses of counsel to the Agent and of local counsel, if any, who
may be retained by counsel to the Agent) in connection with:

          (i) the negotiation, preparation, execution and delivery of this
     Agreement and of each other Loan Document, including schedules and
     exhibits, and any amendments,

                                      -74-

<PAGE>

     waivers, consents, supplements or other modifications to this Agreement or
     any other Loan Document as may from time to time hereafter be required,
     whether or not the transactions contemplated hereby are consummated, and

          (ii)  the filing, recording, refiling or rerecording of any Security
     Document and/or any Uniform Commercial Code financing statements relating
     thereto and all amendments, supplements and modifications to any thereof
     and any and all other documents or instruments of further assurance
     required to be filed or recorded or refiled or rerecorded by the terms
     hereof or of such Security Document, and

          (iii) the preparation and review of the form of any document or
     instrument required by this Agreement or any other Loan Document.

The Borrower further agrees to pay, and to save the Agent and the Lenders
harmless from all liability for, any stamp or other taxes which may be payable
in connection with the execution or delivery of this Agreement, the borrowings
hereunder, or the issuance of the Notes or any other Loan Documents. The
Borrower also agrees to reimburse the Agent and each Lender upon demand for all
reasonable out-of-pocket expenses (including reasonable attorneys' fees and
legal expenses) incurred by the Agent or such Lender in connection with (x) the
negotiation of any restructuring or "work-out", whether or not consummated, of
any Obligations and (y) the enforcement of any Obligations. Notwithstanding
anything contained herein to the contrary, the Borrower shall not be responsible
for any costs or expenses incurred by the Agent or any Lender in connection with
the transactions contemplated by either of Section 10.11(a) or 10.11(b) hereof.

     SECTION 10.4 Indemnification. In consideration of the execution and
delivery of this Agreement by each Lender and the extension of the Revolving
Commitments and the making of the Loans, the Borrower hereby indemnifies,
exonerates and holds the Agent and each Lender and each of their respective
officers, directors, employees and agents (collectively, the "Indemnified
Parties") free and harmless from and against any and all actions, causes of
action, suits, losses, costs, liabilities and damages, and expenses incurred in
connection therewith (irrespective of whether any such Indemnified Party is a
party to the action for which indemnification hereunder is sought), including
reasonable attorneys' fees and disbursements (collectively, the "Indemnified
Liabilities"), incurred by the Indemnified Parties or any of them as a result
of, or arising out of, or relating to:

          (i)  any transaction financed or to be financed in whole or in part,
     directly or indirectly, with the proceeds of any Loan;

          (ii) the entering into and performance of this Agreement and any other
     Loan Document by any of the Indemnified Parties (including any action
     brought by or on behalf of the Borrower as the result of any determination
     by the Required Lenders pursuant to Article V not to fund any Borrowing);

                                      -75-

<PAGE>

          (iii) any investigation, litigation or proceeding related to any
     acquisition or proposed acquisition by the Borrower of all or any portion
     of the stock or assets of any Person, whether or not the Agent or such
     Lender is party thereto;

          (iv)  any investigation, litigation or proceeding related to any
     environmental cleanup, audit, compliance or other matter relating to the
     protection of the environment or the Release by Borrower or any of its
     Subsidiaries of any Hazardous Material; or

          (v)   the presence on or under, or the escape, seepage, leakage,
     spillage, discharge, emission, discharging or releases from, any real
     property owned or operated by the Borrower or any Subsidiary thereof of any
     Hazardous Material (including any losses, liabilities, damages, injuries,
     costs, expenses or claims asserted or arising under any Environmental Law),
     regardless of whether caused by, or within the control of, the Borrower or
     such Subsidiary,

except for any such Indemnified Liabilities arising for the account of a
particular Indemnified Party by reason of the relevant Indemnified Party's gross
negligence or wilful misconduct. If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Borrower hereby agrees to
make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law.

     SECTION 10.5 Survival. The obligations of the Borrower under Sections 4.3,
4.4, 4.5, 4.6 and 10.3 and 10.4, and the obligations of the Lenders under
Section 9.1, shall in each case survive any termination of this Agreement, the
payment in full of all Obligations and the termination of all Revolving
Commitments. The representations and warranties made by the Borrower in this
Agreement and in each other Loan Document shall survive the execution and
delivery of this Agreement and each such other Loan Document.

     SECTION 10.6 Severability. Any provision of this Agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall, as
to such provision and such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of
this Agreement or such Loan Document or affecting the validity or enforceability
of such provision in any other jurisdiction.

     SECTION 10.7 Headings. The various headings of this Agreement and of each
other Loan Document are inserted for convenience only and shall not affect the
meaning or interpretation of this Agreement or such other Loan Document or any
provisions hereof or thereof.

     SECTION 10.8 Execution in Counterparts, Effectiveness, etc. This Agreement
may be executed by the parties hereto in several counterparts, each of which
shall be executed by the Borrower and the Agent and be deemed to be an original
and all of which shall constitute together but one and the same agreement. This
Agreement shall become effective when

<PAGE>

counterparts hereof executed on behalf of the Borrower and each Lender (or
notice thereof satisfactory to the Agent) shall have been received by the Agent
and notice thereof shall have been given by the Agent to the Borrower and each
Lender.

     SECTION 10.9 Governing Law; Entire Agreement. THIS AGREEMENT, THE NOTES AND
EACH OTHER LOAN DOCUMENT SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS. This Agreement, the
Notes and the other Loan Documents constitute the entire understanding among the
parties hereto with respect to the subject matter hereof and supersede any prior
agreements, written or oral, with respect thereto.

     SECTION 10.10 Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and assigns; provided, however, that:

          (i)  the Borrower may not assign or transfer its rights or obligations
     hereunder without the prior written consent of the Agent and all Lenders;
     and

          (ii) the rights of sale, assignment and transfer of the Lenders are
     subject to Section 10.11.
                -------------

     SECTION 10.11 Sale and Transfer of Loans and Note; Participations in Loans
and Note. Each Lender may assign, or sell participations in, its Loans and
Revolving Commitment to one or more other Persons in accordance with this
Section 10.11.

     SECTION 10.11.1 Assignments. Any Lender:
                     -----------

          (i)  with the written consent of the Agent and, provided no Event of
     Default then shall exist or be continuing, the Borrower (which consent
     shall not be unreasonably delayed or withheld) may at any time assign and
     delegate to one or more commercial banks or other financial institutions,
     and

          (ii) with notice to the Borrower and the Agent, but without the
     consent of the Borrower or the Agent, may assign and delegate to any of its
     Affiliates or to any other Lender,

(each Person described in either of the foregoing clauses as being the Person to
whom such assignment and delegation is to be made, being hereinafter referred to
as an "Assignee Lender"), all or any fraction of such Lender's total Loans and
Revolving Commitment (which assignment and delegation shall be of a constant,
and not a varying, percentage of all the assigning Lender's Loans and Revolving
Commitment) in a minimum aggregate amount of $5,000,000 (or such lesser amount
to the extent that after giving effect to such assignment such Lender's total
Loans and Revolving Commitment is reduced to zero); provided, however, that any
such Assignee Lender will comply, if applicable, with the provisions contained
in the penultimate sentence of

                                      -77-

<PAGE>

Section 4.6, and provided further, however, that, the Borrower and the Agent
shall be entitled to continue to deal solely and directly with such Lender in
connection with the interests so assigned and delegated to an Assignee Lender
until:

          (iii) written notice of such assignment and delegation, together with
     payment instructions, addresses and related information with respect to
     such Assignee Lender, shall have been given to the Borrower and the Agent
     by such Lender and such Assignee Lender,

          (iv)  such Assignee Lender shall have executed and delivered to the
     Borrower and the Agent a Lender Assignment Agreement, accepted by the
     Agent, and

          (v)   the processing fees described below shall have been paid.

From and after the date that the Agent accepts such Lender Assignment Agreement,
(x) the Assignee Lender thereunder shall be deemed automatically to have become
a party hereto and to the extent that rights and obligations hereunder have been
assigned and delegated to such Assignee Lender in connection with such Lender
Assignment Agreement, shall have the rights and obligations of a Lender
hereunder and under the other Loan Documents, and (y) the assignor Lender, to
the extent that rights and obligations hereunder have been assigned and
delegated by it in connection with such Lender Assignment Agreement, shall be
released from its obligations hereunder and under the other Loan Documents.
Within five Business Days after its receipt of notice that the Agent has
received an executed Lender Assignment Agreement, the Borrower shall execute and
deliver to the Agent (for delivery to the relevant Assignee Lender) a new Note
evidencing such Assignee Lender's assigned Loans and Revolving Commitment and,
if the assignor Lender has retained Loans and a Revolving Commitment hereunder,
a replacement Note in the principal amount of the Loans and Revolving Commitment
retained by the assignor Lender hereunder (such Note to be in exchange for, but
not in payment of, that Note then held by such assignor Lender). Each such Note
shall be dated the date of the predecessor Note. The assignor Lender shall mark
the predecessor Note "exchanged" and deliver it to the Borrower. Accrued
interest on that part of the predecessor Note evidenced by the new Note, and
accrued fees, shall be paid as provided in the Lender Assignment Agreement.
Accrued interest on that part of the predecessor Note evidenced by the
replacement Note shall be paid to the assignor Lender. Accrued interest and
accrued fees shall be paid at the same time or times provided in the predecessor
Note and in this Agreement. Such assignor Lender or such Assignee Lender must
also pay a processing fee to the Agent upon delivery of any Lender Assignment
Agreement in the amount of $3,500. Any attempted assignment and delegation not
made in accordance with this Section 10.11.1 shall be null and void.

                                      -78-

<PAGE>

     SECTION 10.11.2 Participations. Any Lender may at any time sell to one or
more commercial banks or other Persons (each of such commercial banks and other
Persons being herein called a "Participant") participating interests in any of
the Loans, its Revolving Commitment, or other interests of such Lender
hereunder; provided, however, that:

          (i)   no participation contemplated in this Section 10.11 shall
     relieve such Lender from its Revolving Commitment or its other obligations
     hereunder or under any other Loan Document,

          (ii)  such Lender shall remain solely responsible for the performance
     of its Revolving Commitment and such other obligations,

          (iii) the Borrower and the Agent shall continue to deal solely and
     directly with such Lender in connection with such Lender's rights and
     obligations under this Agreement and each of the other Loan Documents,

          (iv)  no Participant, unless such Participant is an Affiliate of such
     Lender, or is itself a Lender, shall be entitled to require such Lender to
     take or refrain from taking any action hereunder or under any other Loan
     Document, except that such Lender may agree with any Participant that such
     Lender will not, without such Participant's consent, take any actions of
     the type described in clause (b) or (c) of Section 10.1, and

          (v)   the Borrower shall not be required to pay any amount under
     Section 4.6 that is greater than the amount which it would have been
     required to pay had no participating interest been sold.

The Borrower acknowledges and agrees that each Participant, for purposes of
Sections 4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 10.3 and 10.4, shall be considered a
Lender.

     SECTION 10.12 Confidentiality. The Lenders shall hold all non-public
information (which has been identified as such by Borrower) obtained pursuant to
the requirements of this Agreement in accordance with their customary procedures
for handling confidential information of this nature and in accordance with safe
and sound banking practices and in any event may make disclosure to any of their
examiners, Affiliates, outside auditors, counsel and other professional advisors
in connection with this Agreement or as reasonably required by any bona fide
transferee, participant or assignee or as required or requested by any
governmental agency or representative thereof or pursuant to legal process;
provided, however, that:

          (i)   unless specifically prohibited by applicable law or court order,
     each Lender shall notify the Borrower of any request by any governmental
     agency or representative thereof (other than any such request in connection
     with an examination of the financial condition of such Lender by such
     governmental agency) for disclosure of any such non-public information
     prior to disclosure of such information;

                                      -79-

<PAGE>

          (ii)  prior to any such disclosure pursuant to this Section 10.12,
     each Lender shall require any such bona fide transferee, participant and
     assignee receiving a disclosure of non-public information to agree in
     writing:

                (1) to be bound by this Section 10.12; and
                                        -------------

                (2) to require such Person to require any other Person to whom
          such Person discloses such non-public information to be similarly
          bound by this Section 10.12; and

          (iii) except as may be required by an order of a court of competent
     jurisdiction and to the extent set forth therein, no Lender shall be
     obligated or required to return any materials furnished by any Credit
     Party.

     SECTION 10.13 Other Transactions. Nothing contained herein shall preclude
the Agent or any other Lender from engaging in any transaction, in addition to
those contemplated by this Agreement or any other Loan Document, with the
Borrower or any of its Affiliates in which Borrower or such Affiliate is not
restricted hereby from engaging with any other Person.

     SECTION 10.14 Forum Selection and Consent to Jurisdiction. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE LENDERS OR ANY CREDIT
PARTY SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE AGENT'S OPTION, IN THE
COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH SUCH LITIGATION. BORROWER FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE BORROWER HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT

                                      -80-

<PAGE>

FORUM. TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH SUCH CREDIT PARTY
HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     SECTION 10.15 Waiver of Jury Trial. THE AGENT, THE LENDERS AND THE BORROWER
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF THE AGENT, THE LENDERS OR THE BORROWER. THE BORROWER ACKNOWLEDGES AND
AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION
(AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY)
AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENT AND THE LENDERS
ENTERING INTO THIS AGREEMENT AND EACH SUCH OTHER LOAN DOCUMENT.

                                      * * *

<PAGE>

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

                                 NOVAMED EYECARE, INC.

                                 By_________________________________
                                     Title:

                                 NATIONAL CITY BANK OF
                                 MICHIGAN/ILLINOIS,
                                 Individually as a Lender, as Letter of Credit
                                 Issuer and as Agent

                                 By________________________________
                                     Title:

                                 LASALLE BANK NATIONAL ASSOCIATION
                                 Individually as a Lender

                                 By________________________________
                                     Title:

                                 THE NORTHERN TRUST COMPANY
                                 Individually as a Lender
                                 By________________________________
                                     Title:

                                 BANK OF AMERICA, N.A.
                                 Individually as a Lender
                                 By________________________________
                                     Title:<PAGE>

                                                               CONFORMED COPY
                                                               --------------

                              AMENDMENT AND WAIVER

          AMENDMENT AND WAIVER, dated as of October 1, 2001 (this "Amendment"),
                                                                   ---------
to the Fifth Amended and Restated Credit Agreement, dated as of November 1, 1999
(as amended, supplemented or otherwise modified from time to time, the "Credit
                                                                        ------
Agreement"), among Aurora Foods Inc. (the "Company"), the financial institutions
---------                                  -------
parties thereto (the "Lenders"), The Chase Manhattan Bank, as the administrative
                      -------
agent for the Lenders (in such capacity, the "Administrative Agent"), National
                                              --------------------
Westminster Bank PLC, as syndication agent (in such capacity, the "Syndication
                                                                   -----------
Agent") and UBS AG, Stamford Branch, as documentation agent (in such capacity,
-----
the "Documentation Agent").
     -------------------

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to
make, and have made, certain loans and other extensions of credit to the
Company;

          WHEREAS, the Company has requested, and, upon this Amendment becoming
effective, the Lenders have agreed, that certain provisions of the Credit
Agreement be amended and waived as set forth below;

          NOW, THEREFORE, the parties hereto hereby agree as follows:

          SECTION 1.  Defined Terms. Terms defined in the Credit Agreement and
                      -------------
used herein shall have the meanings given to them in the Credit Agreement.

          SECTION 2.  Waivers to the Credit Agreement. (a) Any breach by the
                      -------------------------------
Company of the financial condition covenant set forth in subsection 7.6F of the
Credit Agreement with respect to the test period ending September 30, 2001, and
any Event of Default or Potential Event of Default resulting from any such
breach is hereby waived; provided that, (i) such waiver shall be effective for
                         --------
the period from September 30, 2001 to and including October 31, 2001 only if,
after giving pro forma effect to the IP License as if the IP License had
occurred on or prior to September 30, 2001 and to the use by the Company of the
assumed Net Cash Proceeds therefrom of at least $17,000,000 to prepay Term Loans
pursuant to Section 2.4B(iii)(a) of the Credit Agreement, the Company would have
been in compliance with subsection 7.6F of the Credit Agreement as of September
30, 2001 and (ii) such waiver shall be effective after October 31, 2001 only if
the IP License has occurred on or prior to such date and the Net Cash Proceeds
therefrom have been used to prepay Term Loans pursuant to Section 2.4B(iii)(a)
of the Credit Agreement and if, after giving effect to the IP License as if the
IP License had occurred on or prior to September 30, 2001 and to the use by the
Company the Net Cash Proceeds therefrom to prepay Term Loans pursuant to Section
2.4B(iii)(a) of the Credit Agreement, the Company would have been in compliance
with subsection 7.6F of the Credit Agreement as of September 30, 2001.

<PAGE>

                                                                               2

                  (b) Any breach by the Company of subsections 7.2A or 7.7 of
the Credit Agreement with respect to the consummation of the IP License, or, to
the extent that the IP License constitutes "Indebtedness" of clause (v) of the
definition thereof in subsection 1.1, subsection 7.1 with respect to any such
Indebtedness, is hereby waived.

                  SECTION 3. Amendments to the Credit Agreement.
                             ----------------------------------

                  (a) Amendment to Subsection 1.1. Subsection 1.1 of the Credit
                      ---------------------------
Agreement shall be hereby amended by adding the following definitions in proper
alphabetical order:

                  "IP License" means the sale of a perpetual license to the IP
                   ----------
         Licensee to use the trademarks, service marks, formulas and other
         intellectual property relating to certain foodservice businesses for
         use in the foodservice channel (the "Licensed Intellectual Property")
                                              ------------------------------
         for an initial payment of approximately $17,000,000 or more. The
         obligations of the Company to the IP Licensee in respect of the IP
         License shall be secured by a security interest in the assets of the
         Company comprising the Licensed Intellectual Property. The IP License
         shall be deemed to be an "Asset Sale" for purposes of this agreement.

                  "IP Licensee" means the purchaser of the perpetual license
                   -----------
         described in the definition of "IP License".

                  (b)  Amendment to Subsection 5.16A. Subsection 5.16A of the
                       -----------------------------
Credit Agreement shall be hereby amended by adding the following parenthetical
after the phrase "a valid and perfected First Priority Lien on all of the
Collateral":

                  "(other than any such Collateral over which the IP Licensee
                  has been granted a first priority security interest pursuant
                  to the IP License)"

                  (c)  Amendment to Subsection 7.6F. If, as of October 31, 2001,
                       ----------------------------
(i) the IP License has not been consummated, (ii) the Company is not in
compliance with subsection 7.6F for the test period from July 1, 2001 to
September 30, 2001 and (iii) the Company has paid to each Lender which executes
and delivers this Amendment prior to 12:00 Noon, New York City time, October 1,
2001, a fee equal to 0.075% of the sum of such Lender's (A) Revolving Credit
Commitment, (B) outstanding Tranche A Term Loans and (C) outstanding Tranche B
Term Loans, subsection 7.6F shall be amended as of such date by deleting the
portion of the table appearing at the end of subsection 7.6F of the Credit
Agreement relating to the periods set forth below and substituting in lieu
thereof the following:

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

                                                    MAXIMUM SENIOR
                   TEST PERIOD                      LEVERAGE RATIO
         -------------------------------------------------------------
               07/01/01 - 09/30/01                     4.11:1.00
         -------------------------------------------------------------

<PAGE>

                                                                               3

          SECTION 4.  Authorization of Intercreditor Agreement. The Lenders
                      ----------------------------------------
hereby authorize the Administrative Agent to enter into an intercreditor
agreement with the IP Licensee, pursuant to which the IP Licensee shall be
granted a security interest in the Licensed Intellectual Property pursuant to
the terms of the IP License.

          SECTION 5.  Conditions to Effectiveness. This Amendment shall be
                      ---------------------------
effective on the date (the "Effective Date") on which the Administrative Agent
                            --------------
shall have received this Amendment, executed and delivered by a duly authorized
officer of each of the Company, the Guarantor and the Requisite Lenders.

          SECTION 6.  Representations and Warranties. To induce the Lenders
                      ------------------------------
parties hereto to enter into this Amendment, the Company hereby represents and
warrants to the Administrative Agent and all of the Lenders that (i) the
representations and warranties made by the Company in the Loan Documents are
true and correct in all material respects on and as of the date hereof, after
giving effect to the effectiveness of this Amendment, as if made on and as of
the date hereof and (ii) after giving effect to this Amendment, no Event of
Default or Potential Event of Default shall have occurred and be continuing.

          SECTION 7.  Effect on the Loan Documents. (a) Except as specifically
                      ----------------------------
amended or waived above, the Credit Agreement and all other Loan Documents shall
continue to be in full force and effect and are hereby in all respects ratified
and confirmed.

          (b) The execution, delivery and effectiveness of this Amendment,
except as expressly provided herein, shall not operate as a waiver of any right,
power or remedy of any Lender or the Administrative Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

          SECTION 8.  Costs, Expenses and Taxes. The Company agrees to pay on
                      -------------------------
demand all actual and reasonable and documented out-of-pocket costs and expenses
of the Administrative Agent in connection with the preparation, execution,
delivery, administration, modification and amendment of this Amendment and the
other instruments and documents to be delivered thereunder and hereunder,
including, without limitation, the reasonable and documented fees and
out-of-pocket expenses of counsel for the Administrative Agent (including
allocated costs of internal counsel) with respect thereto and with respect to
advising the Administrative Agent as to its rights and responsibilities
hereunder and thereunder. The Company further agrees to pay on demand all costs
and expenses of the Administrative Agent and each of the Lenders, if any
(including, without limitation, counsel fees and expenses), in connection with
the enforcement (whether through negotiations, legal proceedings or otherwise)
of this Amendment and the other instruments and documents to be delivered
hereunder, including, without limitation, reasonable counsel fees and expenses
(including allocated costs of internal counsel) in connection with the
enforcement of rights under this Section 7.

<PAGE>

                                                                               4

          SECTION 9.  Affirmation of Subsidiary Guaranty, Pledge Agreement and
                      --------------------------------------------------------
Credit Agreement. The Guarantor hereby consents to the modification of the
----------------
Credit Agreement contemplated hereby and each of the Company and the Guarantor
hereby acknowledge and agree that the guarantees contained in the Subsidiary
Guaranty, the pledge of stock contained in the Pledge Agreement and the
obligations contained in the Credit Agreement as modified hereby are, and shall
remain, in full force and effect.

          SECTION 10. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND
                      -------------
OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 11. Execution in Counterparts. This Amendment may be executed
                      -------------------------
by one or more of the parties hereto on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument. Any executed counterpart delivered by facsimile
transmission shall be effective as for all purposes hereof. A set of the copies
of this Amendment signed by all the parties shall be lodged with the Company and
the Administrative Agent.

<PAGE>

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

                                   AURORA FOODS INC.

                                   By: /s/ Christopher T. Sortwell
                                       -----------------------------------------
                                   Name: Christopher T. Sortwell
                                   Title: Executive Vice President and Chief
                                          Financial Officer

                                   SEA COAST FOODS, INC.

                                   By: /s/ Christopher T. Sortwell
                                       -----------------------------------------
                                   Name: Christopher T. Sortwell
                                   Title: Chief Financial Officer, Secretary,
                                          and Director

                                   THE CHASE MANHATTAN BANK,
                                   as Administrative Agent and as a Lender

                                   By: /s/ Kathryn A. Duncan
                                       -----------------------------------------
                                   Name: Kathryn A. Duncan
                                   Title: Vice President

<PAGE>

                                   ALLSTATE LIFE INSURANCE COMPANY

                                   By: /s/ Jerry D. Zinkula
                                       -----------------------------------------
                                   Name: Jerry D. Zinkula
                                   Title: Authorized Signatory

                                   By: /s/ Patricia W. Wilson
                                       -----------------------------------------
                                   Name: Patricia W. Wilson
                                   Title: Authorized Signatory

                                   APEX (IDM) CDO I, LTD.

                                   By: /s/ Roshan White
                                       -----------------------------------------
                                   Name: Roshan White
                                   Title: Vice President

                                   ARES LEVERAGED INVESTMENT FUND II, L.P.

                                   By: ARES Management II, L.P. its General
                                   Partner

                                   By: /s/ David A. Sachs
                                       -----------------------------------------
                                   Name: David A. Sachs
                                   Title: Vice President

                                   ARES III CLO LTD.

                                   By: ARES CLO Management, LLC its Investment
                                   Partner

                                   By: /s/ David A. Sachs
                                       -----------------------------------------
                                   Name: David A. Sachs
                                   Title: Vice President

<PAGE>

                                   ARES IV CLO LTD.

                                   By: ARES CLO Management IV, L.P. its
                                   Investment Partner

                                   By: ARES CLO GP IV, LLC its Managing Manager

                                   By: /s/ David A. Sachs
                                       -----------------------------------------
                                   Name: David A. Sachs
                                   Title: Vice President

                                   BANCO ESPIRITO SANTO, S.A.

                                   By: /s/ Terry R. Hull
                                       -----------------------------------------
                                   Name: Terry R. Hull
                                   Title: Senior Vice President

                                   By: /s/ Andrew M. Orsen
                                       -----------------------------------------
                                   Name: Andrew M. Orsen
                                   Title: Vice President

                                   BANK OF AMERICA, NA

                                   By: /s/ Laura Sweet
                                       -----------------------------------------
                                   Name: Laura Sweet
                                   Title: AVP

<PAGE>

                                     BAYERISCHE HYPO-UND VEREINSBANK AG

                                     By: /s/ Francesco Ossino
                                         ---------------------------------------
                                     Name:   Francesco Ossino
                                     Title: Director

                                     By: /s/ Timothy L. Harrod
                                         ---------------------------------------
                                     Name:   Timothy L. Harrod
                                     Title: Managing Director

                                     BNP PARIBAS

                                     By: /s/ Stephanie Rogers
                                         ---------------------------------------
                                     Name:   Stephanie Rogers
                                     Title: Vice President

                                     By: /s/ Duane P. Helkowski
                                         ---------------------------------------
                                     Name:   Duane P. Helkowski
                                     Title: Director

                                     CENTURION CDO II, LTD.

                                     By: American Express Asset Management Group
                                     Inc. as Collateral Manager

                                     By: /s/ Lynn A. Hopton
                                         ---------------------------------------
                                     Name:   Lynn A. Hopton
                                     Title: Senior Managing Director

<PAGE>

                                      CLYDESDALE CLO 2001-1, LTD.

                                      By: Nomura Corporate Research and Asset
                                      Management Inc. as Collateral Manager

                                      By: /s/ Richard W. Stewart
                                          --------------------------------------
                                      Name:   Richard W. Stewart
                                      Title: Director

                                      COBANK, ACB

                                      By: /s/ S. Richard Dill
                                          --------------------------------------
                                      Name:   S. Richard Dill
                                      Title: Vice President

                                      CONTINENTAL CASUALTY COMPANY

                                      By: /s/ Richard W. Dubberke
                                          --------------------------------------
                                      Name:   Richard W. Dubberke
                                      Title: Vice President

                                      CYPRESSTREE INVESTMENT PARTNERS I, LTD.,

                                      By: CypressTree Investment Management
                                      Company, Inc. as Portfolio Manager

                                      By: /s/ P. Jeffrey Huth
                                          --------------------------------------
                                      Name:   P. Jeffrey Huth
                                      Title: Principal

<PAGE>

                                       CYPRESSTREE INVESTMENT PARTNERS II, LTD.,

                                       By: CypressTree Investment Management
                                       Company, Inc. as Portfolio Manager

                                       By: /s/ P. Jeffrey Huth
                                           -------------------------------------
                                       Name:   P. Jeffrey Huth
                                       Title: Principal

                                       DEUTSCHE BANK AG NEW YORK BRANCH and/or
                                       CAYMAN ISLANDS BRANCH

                                       By: /s/ Alexander Karow
                                           -------------------------------------
                                       Name:   Alexander Karow
                                       Title: Vice President

                                       By: /s/ Thomas A. Foley
                                           -------------------------------------
                                       Name:   Thomas A. Foley
                                       Title: Vice President

                                       ELC (CAYMAN) LTD. CDO SERIES 1999-I

                                       By: /s/ Roshan White
                                           -------------------------------------
                                       Name:   Roshan White
                                       Title: Vice President

                                       ELC (CAYMAN) LTD. 1999-III

                                       By: /s/ Roshan White
                                           -------------------------------------
                                       Name:   Roshan White
                                       Title: Vice President

<PAGE>

                                         ELC (CAYMAN) LTD. 2000-1

                                         By: /s/ Roshan White
                                             ----------------------------
                                         Name:   Roshan White
                                         Title: Vice President

                                         EQ ADVISORS TRUST

                                         By: Alliance Capital Management L.P.,
                                         as Advisor

                                         By: /s/ Greg Dube
                                             -----------------------------------
                                         Name:   Greg Dube
                                         Title: Portfolio Manager

                                         FIRSTAR BANK, NATIONAL ASSOCIATION

                                         By: /s/ Mark Olmon
                                             -----------------------------------
                                         Name:   Mark Olmon
                                         Title: Sr. Vice President

                                         FRANKLIN FLOATING RATE TRUST

                                         By: /s/ Chauncey Lufkin
                                             -----------------------------------
                                         Name:   Chauncey Lufkin
                                         Title: Vice President

                                         FRANKLIN FLOATING RATE MASTER SERIES

                                         By: /s/ Chauncey Lufkin
                                             -----------------------------------
                                         Name:   Chauncey Lufkin
                                         Title: Vice President

<PAGE>

                                           FRANKLIN CLO II, LIMITED

                                           By: /s/ Chauncey Lufkin
                                               ---------------------------------
                                           Name:   Chauncey Lufkin
                                           Title: Vice President

                                           GENERAL ELECTRIC CAPITAL CORPORATION

                                           By: /s/ W. Jerome McDermott
                                               ---------------------------------
                                           Name:   W. Jerome McDermott
                                           Title: Duly Authorized Signatory

                                           HARBOURVIEW CDO II LTD., FUND

                                           By: /s/ Lisa Chaffee
                                               ---------------------------------
                                           Name:   Lisa Chaffee
                                           Title: Manager

                                           HARRIS TRUST AND SAVINGS BANK

                                           By: /s/ John Lyons
                                               ---------------------------------
                                           Name:   John Lyons
                                           Title: Vice President

                                           HSBC BANK USA

                                           By: /s/ Desmond C. English
                                               ---------------------------------
                                           Name:   Desmond C. English
                                           Title: Associate Director

<PAGE>

                                      INDOSUEZ CAPITAL FUNDING IIA, LIMITED

                                      By: Indosuez Capital as Portfolio Advisor

                                      By: /s/ Melissa Marano
                                          --------------------------------------
                                      Name:   Melissa Marano
                                      Title: Vice President

                                      INDOSUEZ CAPITAL FUNDING III, LIMITED

                                      By: Indosuez Capital as Portfolio Advisor

                                      By: /s/ Melissa Marano
                                          --------------------------------------
                                      Name:   Melissa Marano
                                      Title: Vice President

                                      INDOSUEZ CAPITAL FUNDING IV, L.P.

                                      By: Indosuez Capital as Portfolio Advisor

                                      By: /s/ Melissa Marano
                                          --------------------------------------
                                      Name:   Melissa Marano
                                      Title: Vice President

                                      KZH CYPRESSTREE-1 LLC

                                      By: /s/ Susan Lee
                                          --------------------------------------
                                      Name:   Susan Lee
                                      Title: Authorized Agent

<PAGE>

                                            KZH ING-2 LLC

                                            By: /s/ Susan Lee
                                                --------------------------------
                                            Name:   Susan Lee
                                            Title: Authorized Agent

                                            KZH PONDVIEW LLC

                                            By: /s/ Susan Lee
                                                --------------------------------
                                            Name:   Susan Lee
                                            Title: Authorized Agent

                                            KZH SHOSHONE LLC

                                            By: /s/ Susan Lee
                                                --------------------------------
                                            Name:   Susan Lee
                                            Title: Authorized Agent

                                            KZH STERLING LLC

                                            By: /s/ Susan Lee
                                                --------------------------------
                                            Name:   Susan Lee
                                            Title: Authorized Agent

                                            KZH WATERSIDE LLC

                                            By: /s/ Susan Lee
                                                --------------------------------
                                            Name:   Susan Lee
                                            Title: Authorized Agent

                                            MARINER LDC

                                            By: /s/ C. Howe II
                                                --------------------------------
                                            Name:   C. Howe II
                                            Title: Director

<PAGE>

                                   THE MITSUBISHI TRUST AND BANKING CORPORATION

                                   By: /s/ Toshihiro Hayashi
                                       -----------------------------------------
                                   Name:   Toshihiro Hayashi
                                   Title:  Senior Vice President

                                   ML CLO XII PILGRIM AMERICA (CAYMAN) LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   ML CLO XV PILGRIM AMERICA (CAYMAN) LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

<PAGE>

                                   ML CLO XX PILGRIM AMERICA (CAYMAN) LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   MONUMENT CAPITAL LTD., as Assignee

                                   By: Alliance Capital Management L.P., as
                                   Investment Manager

                                   By: Alliance Capital Management Corporation,
                                   as General Partner

                                   By: /s/ Joel G. Serebransky
                                       -----------------------------------------
                                   Name:   Joel G. Serebransky
                                   Title:  Senior Vice President

                                   NATIONAL CITY BANK

                                   By: /s/ Lisa B. Lisi
                                       -----------------------------------------
                                   Name:   Lisa B. Lisi
                                   Title:  Senior Vice President

<PAGE>

                                   NOMURA BOND & LOAN

                                   By: The Tokyo Trust & Banking Co., Ltd. as
                                   Trustee

                                   By: Nomura Corporate Research and Asset
                                   Management Inc., Attorney in Fact

                                   By: /s/ Richard W. Stewart
                                       -----------------------------------------
                                   Name:   Richard W. Stewart
                                   Title:  Director

                                   OLYMPIC FUNDING TRUST, SERIES 1999-1

                                   By: /s/ Ann E. Morris
                                       -----------------------------------------
                                   Name:   Ann E. Morris
                                   Title:  Authorized Agent

                                   OPPENHEIMER SENIOR FLOATING RATE FUND

                                   By: /s/ David Foxhaven
                                       -----------------------------------------
                                   Name:   David Foxhaven
                                   Title:  AV.P.

                                   PACIFICA PARTNERS I, L.P.

                                   By: Imperial Credit Asset Management as its
                                   Investment Advisor

                                   By: /s/ Tom Colwell
                                       -----------------------------------------
                                   Name:   Tom Colwell
                                   Title:  Vice President

<PAGE>

                                   PILGRIM PRIME RATE TRUST

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   PILGRIM SENIOR INCOME FUND

                                   By: ING Pilgrim Investment, Inc. as its
                                   Investment Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   PILGRIM AMERICA HIGH INCOME INVESTMENTS INC.
                                   LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

<PAGE>

                                   PILGRIM CLO 1999-1 LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   PINEHURST TRADING LLC

                                   By: /s/ Ann E. Morris
                                       -----------------------------------------
                                   Name:   Ann E. Morris
                                   Title:  Authorized Agent

                                   PPM SPYGLASS FUNDING TRUST

                                   By: /s/ Ann E. Morris
                                       -----------------------------------------
                                   Name:   Ann E. Morris
                                   Title:  Authorized Agent

                                   SENIOR DEBT PORTFOLIO

                                   By: Boston Management and Research as
                                   Investment Advisor

                                   By: /s/ Payson F. Swaffield
                                       -----------------------------------------
                                   Name:   Payson F. Swaffield
                                   Title:  Vice President

<PAGE>

                                   SEQUILS PILGRIM-1 LTD.

                                   By: ING Pilgrim Investments as its Investment
                                   Manager

                                   By: /s/ Jason Groom
                                       -----------------------------------------
                                   Name:   Jason Groom
                                   Title:  Vice President

                                   SEQUILS-CENTURION V, LTD

                                   By: American Express Asset Management Group
                                   Inc. as Collateral Manager

                                   By: /s/ Lynn A. Hopton
                                       -----------------------------------------
                                   Name:   Lynn A. Hopton
                                   Title:  Senior Managing Director

                                   SUNTRUST BANK

                                   By: /s/ Susan M. Hall
                                       -----------------------------------------
                                   Name:   Susan M. Hall
                                   Title:  Managing Director

                                   U.S. BANK NATIONAL ASSOCIATION

                                   By: /s/ Mark Olmon
                                       -----------------------------------------
                                   Name:   Mark Olmon
                                   Title:  Sr. Vice President

<PAGE>

                                   VAN KAMPEN SENIOR INCOME TRUST

                                   By: Van Kampen Investment Advisory Corp.

                                   By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                   Name:   Darvin D. Pierce
                                   Title:  Executive Director

                                   VAN KAMPEN PRIME RATE INCOME TRUST

                                   By: Van Kampen Investment Advisory Corp.

                                   By: /s/ Darvin D. Pierce
                                       ------------------------=----------------
                                   Name:   Darvin D. Pierce
                                   Title:  Executive Director

                                   VAN KAMPEN CLO I, LIMITED

                                   By: Van Kampen Management Inc., as Collateral
                                   Manager

                                   By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                   Name:   Darvin D. Pierce
                                   Title:  Executive Director

                                   VAN KAMPEN CLO II, LIMITED

                                   By: Van Kampen Management Inc., as Collateral
                                   Manager

                                   By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                   Name:   Darvin D. Pierce
                                   Title:  Executive Director

<PAGE>

                                   WELLS FARGO BANK, N.A.

                                   By: /s/ Hugh Diddy
                                       -----------------------------------------
                                   Name:   Hugh Diddy
                                   Title:  Vice President

                                   WINGED FOOT FUNDING TRUST

                                   By: /s/ Ann E. Morris
                                       -----------------------------------------
                                   Name:   Ann E. Morris
                                   Title:  Authorized Agent

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]