Document:

<PAGE>   1

                    FIRST AMENDMENT TO THE EXCHANGE AGREEMENT

         THIS FIRST AMENDMENT TO THE EXCHANGE AGREEMENT (this "Amendment"),
dated as of April 17, 2000, is by and among, American Medical Systems, Inc., a
Delaware corporation ("AMS"), American Medical Systems Holdings, Inc., a
Delaware corporation ("Holdings") and Urotek Ltd., an Israeli company
("Urotek").

                              W I T N E S S E T H:

         WHEREAS, AMS and Urotek were parties to the Agreement and Plan of
Merger dated as of November 12, 1999, as amended (the "Merger Agreement") by and
among AMS, Persuade Merger Corp., a Delaware corporation and a wholly-owned
subsidiary of AMS ("Merger Subsidiary"), and Influence, Inc., a Delaware
corporation ("Influence"), Urotek and certain other principal stockholders of
Influence, pursuant to which Influence merged with Merger Subsidiary resulting
in Influence as the surviving entity; and

         WHEREAS, Dr. Mordechay Beyar, through his personal holding company
Urotek, agreed to retain, pursuant to the terms of the Merger and as
contemplated in the Merger Agreement, 225,000 shares of the common stock, par
value $0.001 per share, of Influence (the "Retained Common Stock"), which
Retained Common Stock was not be converted into the right to receive Merger
Consideration (as defined in the Merger Agreement), and AMS agreed that Dr.
Beyar, through Urotek, could retain such Retained Common Stock, on the terms and
conditions set forth in the Exchange Agreement (the "Exchange Agreement") dated
December 16, 1999 by and between Urotek and AMS.

         WHEREAS, Holdings has been formed to hold 100% of the issued and
outstanding capital stock of AMS, and the shareholders of AMS have agreed to
exchange all of their shares of outstanding capital stock of AMS for shares of
the same class of capital stock of Holdings.

         WHEREAS, the parties desire to amend the Exchange Agreement to correct
certain calculations and make certain adjustments and to acknowledge the
formation of Holdings and the exchange of capital stock contemplated therewith,
as set forth in this Amendment.

         ACCORDINGLY, the parties hereto hereby agree as follows:

1. Section 2.01 (b). Section 2.01(b) of the Exchange Agreement is hereby amended
in its entirety to read as follows:

(b) The "Retained Percentage" for purposes of this Section 2.01 shall mean:

    (i)    with respect to the Initial Merger Consideration, a fraction equal to
           .025577 (which percentage represents $490,632.88 out of the Initial
           Merger Consideration);

<PAGE>   2

    (ii)   with respect to the Contingent Merger Consideration, a fraction equal
           to .023415; and

    (iii)  with respect to the Holdback Merger Consideration, a fraction equal
           to .026480.

2. Adjustment to Reduction of Initial Merger Consideration. Based on actual
Initial Merger Consideration (taking account of adjustments made at the
closing), post-closing adjustments and refund/adjustment payments by AMS to the
Exchange Agent, the actual amount of Initial Merger Consideration payable in
respect of 225,000 shares should have been $490,632.88. The amount of the Urotek
Retained Amount in the Funds Flow Memorandum was $530,306. AMS shall therefore
pay $39,673.12 (the difference between the Urotek Retained Amount in the Funds
Flow Memorandum and the actual amount of Initial Merger Consideration payable in
respect of 225,000 shares) to the Exchange Agent as additional Initial Merger
Consideration.

3. Section 2.02(b). Section 2.02(b) of the Exchange Agreement is hereby amended
in its entirety to read as follows:

(b) At any time after (or in the case of clauses (ii) or (iii) below,
immediately prior to or after) (i) December 31, 2001, (ii) the effective date of
a registration statement registering Parent's capital stock under the Securities
Act for public distribution or (iii) a Change in Control of Parent or Holdings,
Urotek may upon delivery of the Urotek Notice cause, without further act, Parent
to exchange the number of shares of Retained Common Stock specified therein,
which shares Urotek shall transfer, assign and deliver to Parent, for Parent
Shares. As used herein, a "Change in Control" shall mean the occurrence after
the Effective Time of any of the following: (x) the acquisition of voting
securities (other than upon the exchange of any class of preferred stock) of
Person by any person or group of persons that results in such person or group,
together with its affiliates, becoming, directly or indirectly, the beneficial
owner of in excess of 50% of the outstanding voting securities of Parent or
Holdings; (y) a merger or consolidation of Parent or Holdings with any other
corporation or legal entity regardless of which entity is the survivor, other
than a merger or consolidation which would result in the voting securities (or
preferred stock convertible into voting securities) of Parent or Holdings
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or being converted into voting securities of the surviving
entity) in excess of 50% of the voting securities of Parent or Holdings or such
surviving entity outstanding immediately after such merger or consolidation; or
(z) the sale or disposition of all or substantially all of Parent's or Holdings'
assets other than in a transaction in which holders of the voting securities of
Parent or Holdings immediately prior to such transaction receive voting
securities of the acquiror of such assets or its affiliate that represent in
excess of 50% of the voting securities of such entity after consummation of such
transaction.

4. Charter. The definition of "Charter" in Section 1.01 of the Exchange
Agreement is hereby amended to mean the Certificate of Incorporation of
Holdings, as in effect as of the date of this Amendment.

                                       2
<PAGE>   3

5. Parent. All references in the Exchange Agreement to Parent shall mean
American Medical Systems Holdings, Inc., except that the references in Sections
2.01(a), 2.02(b) and 4.01(h), (i) and (j) of the Exchange Agreement to Parent
shall mean American Medical Systems, Inc. and any reference in the Exchange
Agreement with respect to the acquisition by Parent of the Retained Common Stock
shall be deemed to be a reference to American Medical Systems, Inc. By executing
this Amendment, Holdings agrees to be bound by all of the provisions of the
Exchange Agreement binding on Parent as if Holdings were an original party to
the Exchange Agreement.

6. Amendment to the Definition of "Stockholders Agreement". The term
Stockholders Agreement is hereby amended in its entirety to read as follows:

"Stockholders Agreement" shall mean the Stockholders Agreement, dated as of
March 21, 2000, among Warburg, Pincus Equity Partners, L.P. ("Warburg"),
Holdings and certain other investors of Holdings identified therein
("Investors"). A copy of the Stockholders Agreement is attached to this
Amendment as Exhibit A.

7. Defined Terms. Capitalized words that are not defined herein shall have the
meaning given to them in the Exchange Agreement.

8. No Other Amendments. Except as amended herein, the Exchange Agreement shall
remain in full force and effect in accordance with its original terms.

9. Counterparts. This Amendment may be signed in any number of counterparts and
the signatures delivered by facsimile, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument.

                     (Following Page is the Signature Page)

                                       3
<PAGE>   4

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

AMERICAN MEDICAL SYSTEMS, INC.                 UROTEK LTD. INC.
a Delaware corporation                         an Israeli corporation

By:      /s/ Gregory J. Melsen                 By:      /s/ Mordechay Beyar
   -----------------------------------------      ------------------------------

Name:    Gregory J. Melsen                     Name:    Mordechay Beyar
     ---------------------------------------        ----------------------------

Title:   Vice President - Finance, Treasurer   Title:   Director
      --------------------------------------         ---------------------------
         and Chief Financial Officer
      --------------------------------------

AMERICAN MEDICAL SYSTEMS
HOLDINGS, INC.
a Delaware corporation

By:      /s/ Gregory J. Melsen
   -----------------------------------------

Name:    Gregory J. Melsen
     ---------------------------------------

Title:   Secretary
      --------------------------------------

Mordechay Beyar, M.D. hereby absolutely and unconditionally guarantees the
prompt payment and performance of all of the agreements, covenants and
obligations of Urotek Ltd. under the Exchange Agreement and the foregoing
Amendment between American Medical Systems, Inc. and Urotek Ltd.

/s/ Mordechay Beyar
--------------------------------------------
MORDECHAY BEYAR, M.D.

                                       4<PAGE>   1
                                                                [EXECUTION COPY]

                                CREDIT AGREEMENT

                           Dated as of March 24, 2000

                                      among

                         AMERICAN MEDICAL SYSTEMS, INC.,
                                  as Borrower,

                                       and

                        THE SUBSIDIARIES OF THE BORROWER
                         FROM TIME TO TIME PARTY HERETO,
                                 as Guarantors,

                                   THE LENDERS
                         FROM TIME TO TIME PARTY HERETO,

                             BANK OF AMERICA, N. A.,
                                    as Agent

                                       and

                         BANC OF AMERICA SECURITIES LLC,
                   as Sole Lead Arranger and Sole Book Manager

<PAGE>   2

                                TABLE OF CONTENTS

SECTION 1  DEFINITIONS.......................................................1

   1.1   DEFINITIONS.........................................................1
   1.2   COMPUTATION OF TIME PERIODS........................................28
   1.3   ACCOUNTING TERMS...................................................28

SECTION 2  CREDIT FACILITIES................................................29

   2.1   REVOLVING LOANS....................................................29
   2.2   LETTER OF CREDIT SUBFACILITY.......................................31
   2.3   TRANCHE A TERM LOAN................................................36
   2.4   TRANCHE B TERM LOAN................................................38

SECTION 3  OTHER PROVISIONS RELATING TO CREDIT FACILITIES...................40

   3.1   DEFAULT RATE.......................................................40
   3.2   EXTENSION AND CONVERSION...........................................40
   3.3   PREPAYMENTS........................................................41
   3.4   TERMINATION AND REDUCTION OF COMMITMENTS...........................44
   3.5   FEES...............................................................45
   3.6   CAPITAL ADEQUACY...................................................46
   3.7   LIMITATION ON EURODOLLAR LOANS.....................................46
   3.8   ILLEGALITY.........................................................46
   3.9   REQUIREMENTS OF LAW................................................47
   3.10  TREATMENT OF AFFECTED LOANS........................................48
   3.11  TAXES..............................................................48
   3.12  COMPENSATION.......................................................50
   3.13  PRO RATA TREATMENT.................................................51
   3.14  SHARING OF PAYMENTS................................................51
   3.15  PAYMENTS, COMPUTATIONS, ETC........................................52
   3.16  EVIDENCE OF DEBT...................................................54
   3.17  REPLACEMENT OF AFFECTED LENDERS....................................55

SECTION 4  GUARANTY.........................................................55

   4.1   THE GUARANTY.......................................................55
   4.2   OBLIGATIONS UNCONDITIONAL..........................................56
   4.3   REINSTATEMENT......................................................57
   4.4   CERTAIN ADDITIONAL WAIVERS.........................................57
   4.5   REMEDIES...........................................................57
   4.6   RIGHTS OF CONTRIBUTION.............................................58
   4.7   GUARANTEE OF PAYMENT; CONTINUING GUARANTEE.........................59

SECTION 5  CONDITIONS.......................................................59

   5.1   CLOSING CONDITIONS.................................................59
   5.2   CONDITIONS TO INITIAL EXTENSIONS OF CREDIT.........................59
   5.3   CONDITIONS TO ALL EXTENSIONS OF CREDIT.............................65

SECTION 6  REPRESENTATIONS AND WARRANTIES...................................66

   6.1   FINANCIAL CONDITION................................................66
   6.2   NO MATERIAL CHANGE.................................................68
   6.3   ORGANIZATION AND GOOD STANDING.....................................68
   6.4   POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS......................68
   6.5   NO CONFLICTS.......................................................68
   6.6   NO DEFAULT.........................................................69

                                       i

<PAGE>   3

   6.7   OWNERSHIP..........................................................69
   6.8   INDEBTEDNESS.......................................................69
   6.9   LITIGATION.........................................................69
   6.10  TAXES..............................................................69
   6.11  COMPLIANCE WITH LAW................................................70
   6.12  ERISA..............................................................70
   6.13  CORPORATE STRUCTURE; CAPITAL STOCK, ETC............................71
   6.14  GOVERNMENTAL REGULATIONS, ETC......................................72
   6.15  PURPOSE OF LOANS AND LETTERS OF CREDIT.............................72
   6.16  ENVIRONMENTAL MATTERS..............................................72
   6.17  INTELLECTUAL PROPERTY..............................................73
   6.18  SOLVENCY...........................................................74
   6.19  INVESTMENTS........................................................74
   6.20  BUSINESS LOCATIONS.................................................74
   6.21  DISCLOSURE.........................................................74
   6.22  NO BURDENSOME RESTRICTIONS.........................................74
   6.23  BROKERS' FEES......................................................74
   6.24  LABOR MATTERS......................................................74
   6.25  NATURE OF BUSINESS.................................................75
   6.26  YEAR 2000 COMPLIANCE...............................................75

SECTION 7  AFFIRMATIVE COVENANTS............................................75

   7.1   INFORMATION COVENANTS..............................................75
   7.2   PRESERVATION OF EXISTENCE AND FRANCHISES...........................78
   7.3   BOOKS AND RECORDS..................................................79
   7.4   COMPLIANCE WITH LAW................................................79
   7.5   PAYMENT OF TAXES AND OTHER INDEBTEDNESS............................79
   7.6   INSURANCE..........................................................79
   7.7   MAINTENANCE OF PROPERTY............................................80
   7.8   PERFORMANCE OF OBLIGATIONS.........................................80
   7.9   USE OF PROCEEDS....................................................80
   7.10  AUDITS/INSPECTIONS.................................................81
   7.11  FINANCIAL COVENANTS................................................81
   7.12  NEW SUBSIDIARIES...................................................82
   7.13  PLEDGED ASSETS.....................................................82
   7.14  INTEREST RATE PROTECTION...........................................83
   7.15  YEAR 2000 COMPLIANCE...............................................83

SECTION 8  NEGATIVE COVENANTS...............................................83

   8.1   INDEBTEDNESS.......................................................84
   8.2   LIENS..............................................................85
   8.3   NATURE OF BUSINESS.................................................87
   8.4   CONSOLIDATION, MERGER, DISSOLUTION, ETC............................87
   8.5   ASSET DISPOSITIONS.................................................87
   8.6   INVESTMENTS........................................................88
   8.7   RESTRICTED PAYMENTS................................................90
   8.8   OTHER INDEBTEDNESS.................................................90
   8.9   TRANSACTIONS WITH AFFILIATES.......................................91
   8.10  FISCAL YEAR; ORGANIZATIONAL DOCUMENTS..............................91
   8.11  LIMITATION ON RESTRICTED ACTIONS...................................91
   8.12  OWNERSHIP OF SUBSIDIARIES; LIMITATIONS ON PARENT...................92
   8.13  SALE LEASEBACKS....................................................92
   8.14  CAPITAL EXPENDITURES...............................................92
   8.15  NO FURTHER NEGATIVE PLEDGES........................................92
   8.16  OPERATING LEASE OBLIGATIONS........................................93
   8.17  LIMITATION ON FOREIGN OPERATIONS...................................93

                                       ii
<PAGE>   4

SECTION 9  EVENTS OF DEFAULT................................................93

   9.1      EVENTS OF DEFAULT...............................................93
   9.2      ACCELERATION; REMEDIES..........................................96

SECTION 10  AGENCY PROVISIONS...............................................97

   10.1     APPOINTMENT, POWERS AND IMMUNITIES..............................97
   10.2     RELIANCE BY AGENT...............................................97
   10.3     DEFAULTS........................................................98
   10.4     RIGHTS AS A LENDER..............................................98
   10.5     INDEMNIFICATION.................................................98
   10.6     NON-RELIANCE ON AGENT AND OTHER LENDERS.........................99
   10.7     SUCCESSOR AGENT.................................................99

SECTION 11  MISCELLANEOUS..................................................100

   11.1     NOTICES........................................................100
   11.2     RIGHT OF SET-OFF; ADJUSTMENTS..................................101
   11.3     BENEFIT OF AGREEMENT...........................................101
   11.4     NO WAIVER; REMEDIES CUMULATIVE.................................103
   11.5     EXPENSES; INDEMNIFICATION......................................104
   11.6     AMENDMENTS, WAIVERS AND CONSENTS...............................105
   11.7     COUNTERPARTS...................................................107
   11.8     HEADINGS.......................................................107
   11.9     SURVIVAL.......................................................107
   11.10    GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE...............107
   11.11    SEVERABILITY...................................................108
   11.12    ENTIRETY.......................................................108
   11.13    TERMINATION....................................................108
   11.14    CONFIDENTIALITY................................................108
   11.15    SOURCE OF FUNDS................................................109
   11.16    REGULATION D...................................................110
   11.17    CONFLICT.......................................................110

                                      iii

<PAGE>   5

SCHEDULES

Schedule 2.1(a)            Lenders
Schedule 6.1(a)            Disclosed Liabilities
Schedule 6.4               Required Consents, Authorizations, Notices
                           and Filings
Schedule 6.9               Litigation
Schedule 6.12              ERISA
Schedule 6.13A             Corporate Structure
Schedule 6.13B             Subsidiaries
Schedule 6.16              Environmental Disclosures
Schedule 6.17              Intellectual Property
Schedule 6.20(a)           Mortgaged Properties
Schedule 6.20(b)           Collateral Locations
Schedule 6.20(c)           Chief Executive Offices/Principal Places
                           of Business
Schedule 7.6               Insurance
Schedule 8.1(b)            Indebtedness
Schedule 8.1(m)            Terms of Subordination
Schedule 8.2               Liens
Schedule 8.6               Investments

                                    EXHIBITS

Exhibit 1.1A               Form of Pledge Agreement
Exhibit 1.1B               Form of Security Agreement
Exhibit 1.1C               Form of Warburg Guaranty
Exhibit 2.1(b)(i)          Form of Notice of Borrowing
Exhibit 2.1(e)             Form of Revolving Note
Exhibit 2.3(f)             Form of Tranche A Term Note
Exhibit 2.4(f)             Form of Tranche B Term Note
Exhibit 3.2                Form of Notice of Extension/Conversion
Exhibit 5.2                Form of Parent Joinder Agreement
Exhibit 7.1(c)             Form of Officer's Compliance Certificate
Exhibit 7.12               Form of Joinder Agreement
Exhibit 11.3(b)            Form of Assignment and Acceptance

AMERICAN MEDICAL SYSTEMS HOLDINGS, INC. WILL FILE A COPY OF THE EXHIBITS (TO THE
EXTENT NOT PREVIOUSLY FILED) AND THE SCHEDULES SUPPLEMENTALLY WITH THE
SECURITIES EXCHANGE COMMISSION UPON THEIR REQUEST.

                                       iv
<PAGE>   6

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT, dated as of March 24, 2000 (as amended,
modified, restated or supplemented from time to time, the "Credit Agreement"),
is by and among AMERICAN MEDICAL SYSTEMS, INC., a Delaware corporation (the
"Borrower"), the Subsidiary Guarantors (as defined herein), the Lenders (as
defined herein) and BANK OF AMERICA, N. A., as Agent for the Lenders (in such
capacity, the "Agent").

                               W I T N E S S E T H

         WHEREAS, the Borrower has requested that the Lenders provide credit
facilities in an aggregate amount of up to $115,000,000 (the "Credit
Facilities") for the purposes hereinafter set forth; and

         WHEREAS, the Lenders have agreed to make the requested Credit
Facilities available to the Borrower on the terms and conditions hereinafter set
forth;

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                    SECTION 1

                                   DEFINITIONS

                  1.1 DEFINITIONS.

         As used in this Credit Agreement, the following terms shall have the
meanings specified below unless the context otherwise requires:

                  "Acquisition", by any Person, means the acquisition by such
         Person of (a) all of the Capital Stock, (b) all or substantially all of
         the Property of another Person or (c) all or substantially all of a
         line of business of another Person, in each case whether or not
         involving a merger or consolidation with such other Person.

                  "Adjusted Base Rate" means the Base Rate plus the Applicable
         Percentage.

                  "Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
         Applicable Percentage.

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling or controlled by or under
         direct or indirect common control with such Person. For purposes of
         this definition, "control" when used with respect to any Person means
         the power (i) to vote 10% or more of the securities having ordinary
         voting power for the

<PAGE>   7

         election of directors of such corporation or (ii) to direct the
         management and policies of such Person, directly or indirectly, whether
         through the ownership of voting securities, by contract or otherwise;
         and the terms "controlling" and "controlled" have meanings correlative
         to the foregoing.

                  "Agency Services Address" means Bank of America, N. A.,
         NC1-001-15-04, 101 North Tryon Street, Charlotte, North Carolina 28255,
         Attn: Agency Services, or such other address as may be identified by
         written notice from the Agent to the Borrower.

                  "Agent" shall have the meaning assigned to such term in the
         heading hereof, together with any successors or assigns.

                  "Agent's Fee Letter" means that certain letter agreement,
         dated as of December 22, 1999, between the Agent and the Borrower, as
         amended, modified, restated or supplemented from time to time.

                  "Applicable Lending Office" means, for each Lender, the office
         of such Lender (or of an Affiliate of such Lender) as such Lender may
         from time to time specify to the Agent and the Borrower by written
         notice as the office by which its Eurodollar Loans are made and
         maintained.

                  "Applicable Percentage" means, for purposes of calculating the
         applicable interest rate for any day for any Loan, the applicable rate
         of the Unused Fee for any day for purposes of Section 3.5(a), the
         applicable rate of the Standby Letter of Credit Fee for any day for
         purposes of Section 3.5(b)(i) or the applicable rate of the Trade
         Letter of Credit Fee for any day for purposes of Section 3.5(b)(ii),
         the appropriate applicable percentage corresponding to the Leverage
         Ratio in effect as of the most recent Calculation Date:

<TABLE>
<CAPTION>
                                                                         APPLICABLE PERCENTAGES
                                  -------------------------------------------------------------------------------------------------
                                       FOR TRANCHE A TERM         FOR REVOLVING LOANS
                                             LOANS                 AND TRANCHE B TERM
                                                                          LOANS
                                  ---------------------------- -------------------------
                                                                                          FOR STANDBY     FOR TRADE    FOR UNUSED
     PRICING     LEVERAGE RATIO    EURODOLLAR     BASE RATE     EURODOLLAR     BASE RATE   LETTER OF      LETTER OF       FEE
      LEVEL                           LOANS         LOANS          LOANS         LOANS     CREDIT FEE     CREDIT FEE
  -------------- ---------------- -------------- ------------- -------------- ---------- ------------- -------------- -------------
<S>              <C>              <C>            <C>           <C>            <C>        <C>           <C>            <C>
        I         > 3.0 to 1.0        3.00%         2.00%         0.875%           0%        0.875%        0.4375%       0.125%
  -------------- ---------------- -------------- ------------- -------------- ---------- ------------- -------------- -------------
                  < 3.0 to 1.0
                  -
       II         but > 2.5 to        2.50%         1.50%         0.875%           0%        0.875%        0.4375%       0.125%
                       1.0
  -------------- ---------------- -------------- ------------- -------------- ---------- ------------- -------------- -------------
       III        < 2.5 to 1.0        2.00%         1.00%         0.875%           0%        0.875%        0.4375%       0.125%
                  -
</TABLE>

         The Applicable Percentages shall be determined and adjusted quarterly
         on the date (each a "Calculation Date") five Business Days after the
         date by which the Credit Parties are required to provide the officer's
         certificate in accordance with the provisions of

                                       2

<PAGE>   8

         Section 7.1(c) for the most recently ended fiscal quarter of the
         Consolidated Parties; provided, however, that (i) the initial
         Applicable Percentages shall be based on Pricing Level I (as shown
         above) and shall remain at Pricing Level I until the Calculation Date
         for the fiscal quarter of the Consolidated Parties ending on September
         30, 2000, on and after which time the Pricing Level shall be determined
         by the Leverage Ratio as of the last day of the most recently ended
         fiscal quarter of the Consolidated Parties preceding the applicable
         Calculation Date and (ii) if the Credit Parties fail to provide the
         officer's certificate to the Agency Services Address as required by
         Section 7.1(c) for the last day of the most recently ended fiscal
         quarter of the Consolidated Parties preceding the applicable
         Calculation Date, the Applicable Percentage from such Calculation Date
         shall be based on Pricing Level I until such time as an appropriate
         officer's certificate is provided, whereupon the Pricing Level shall be
         determined by the Leverage Ratio as of the last day of the most
         recently ended fiscal quarter of the Consolidated Parties preceding
         such Calculation Date. Each Applicable Percentage shall be effective
         from one Calculation Date until the next Calculation Date. Any
         adjustment in the Applicable Percentages shall be applicable to all
         existing Loans and Letters of Credit as well as any new Loans and
         Letters of Credit made or issued.

                  "Application Period", in respect of any Asset Disposition,
         shall have the meaning assigned to such term in Section 8.5.

                  "Asset Disposition" means any disposition (including pursuant
         to a Sale and Leaseback Transaction) of any or all of the Property
         (including without limitation the Capital Stock of a Subsidiary) of any
         Consolidated Party whether by sale, lease, transfer or otherwise, but
         other than pursuant to any casualty or condemnation event.

                  "Asset Disposition Prepayment Event" means, with respect to
         any Asset Disposition other than an Excluded Asset Disposition, the
         failure of the Credit Parties to apply (or cause to be applied) the Net
         Cash Proceeds of such Asset Disposition to Eligible Reinvestments
         during the Application Period for such Asset Disposition.

                  "Assignment and Acceptance" shall have the meaning to such
         term in Section 11.3(b).

                  "Bank of America" means Bank of America, N. A. and its
         successors.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

                  "Bankruptcy Event" means, with respect to any Person, the
         occurrence of any of the following with respect to such Person: (i) the
         entry of a decree or order for relief in respect of such Person by a
         court or governmental agency having jurisdiction in the premises in an
         involuntary case under any applicable bankruptcy, insolvency or other
         similar law now or hereafter in effect, or the appointment by a court
         or governmental agency having jurisdiction in the premises of a
         receiver, liquidator, assignee, custodian, trustee, sequestrator (or
         similar official) of such Person or for any substantial part of its
         Property or ordering the winding up

                                       3

<PAGE>   9

         or liquidation of its affairs; or (ii) the commencement against such
         Person of an involuntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or of any
         case, proceeding or other action for the appointment of a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or similar
         official) of such Person or for any substantial part of its Property or
         for the winding up or liquidation of its affairs, and such involuntary
         case or other case, proceeding or other action shall remain undismissed
         for a period of sixty (60) consecutive days; or (iii) such Person shall
         commence a voluntary case under any applicable bankruptcy, insolvency
         or other similar law now or hereafter in effect, or consent to the
         entry of an order for relief in an involuntary case under any such law,
         or consent to the appointment or taking possession by a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or similar
         official) of such Person or for any substantial part of its Property or
         make any general assignment for the benefit of creditors; or (iv) such
         Person shall be unable to, or shall admit in writing its inability to,
         pay its debts generally as they become due.

                  "Base Rate" means, for any day, the rate per annum equal to
         the higher of (a) the Federal Funds Rate for such day plus one-half of
         one percent (0.5%) and (b) the Prime Rate for such day. Any change in
         the Base Rate due to a change in the Prime Rate or the Federal Funds
         Rate shall be effective on the effective date of such change in the
         Prime Rate or Federal Funds Rate.

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

                  "Borrower" means the Person identified as such in the heading
         hereof, together with any permitted successors and assigns.

                  "Business Day" means a day other than a Saturday, Sunday or
         other day on which commercial banks in Charlotte, North Carolina or New
         York, New York are authorized or required by law to close, except that,
         when used in connection with a Eurodollar Loan, such day shall also be
         a day on which dealings between banks are carried on in Dollar deposits
         in London, England.

                  "Businesses" means, at any time, a collective reference to the
         businesses operated by the Consolidated Parties at such time.

                  "Calculation Date" shall have the meaning assigned to such
         term in the definition of "Applicable Percentage" set forth in this
         Section 1.1.

                  "Capital Lease" means, as applied to any Person, any lease of
         any Property (whether real, personal or mixed) by that Person as lessee
         which, in accordance with GAAP, is required to be accounted for as a
         capital lease on the balance sheet of that Person.

                  "Capital Stock" means (i) in the case of a corporation,
         capital stock, (ii) in the case of an association or business entity,
         any and all shares, interests, participations, rights or other
         equivalents (however designated) of capital stock, (iii) in the case of
         a

                                       4
<PAGE>   10

         partnership, partnership interests (whether general or limited), (iv)
         in the case of a limited liability company, membership interests and
         (v) any other interest or participation that confers on a Person the
         right to receive a share of the profits and losses of, or distributions
         of assets of, the issuing Person.

                  "Cash Equivalents" means, as at any date, (a) securities
         issued or directly and fully guaranteed or insured by the United States
         or any agency or instrumentality thereof (provided that the full faith
         and credit of the United States is pledged in support thereof) having
         maturities of not more than twelve months from the date of acquisition,
         (b) Dollar denominated time deposits and certificates of deposit of (i)
         any Lender, (ii) any domestic commercial bank of recognized standing
         having capital and surplus in excess of $500,000,000 or (iii) any bank
         whose short-term commercial paper rating from S&P is at least A-1 or
         the equivalent thereof or from Moody's is at least P-1 or the
         equivalent thereof (any such bank being an "Approved Bank"), in each
         case with maturities of not more than 270 days from the date of
         acquisition, (c) commercial paper and variable or fixed rate notes
         issued by any Approved Bank (or by the parent company thereof) or any
         variable rate notes issued by, or guaranteed by, any domestic
         corporation rated A-1 (or the equivalent thereof) or better by S&P or
         P-1 (or the equivalent thereof) or better by Moody's and maturing
         within six months of the date of acquisition, (d) repurchase agreements
         entered into by any Person with a bank or trust company (including any
         of the Lenders) or recognized securities dealer having capital and
         surplus in excess of $500,000,000 for direct obligations issued by or
         fully guaranteed by the United States in which such Person shall have a
         perfected first priority security interest (subject to no other Liens)
         and having, on the date of purchase thereof, a fair market value of at
         least 100% of the amount of the repurchase obligations and (e)
         Investments, classified in accordance with GAAP as current assets, in
         money market investment programs registered under the Investment
         Company Act of 1940, as amended, which are administered by reputable
         financial institutions having capital of at least $500,000,000 and the
         portfolios of which are limited to Investments of the character
         described in the foregoing subdivisions (a) through (d).

                  "Change of Control" means any of the following events: (a) the
         sale, lease, transfer or other disposition (other than by way of merger
         or consolidation), in one or a series of related transactions, of all
         or substantially all of the assets of the Borrower and its Subsidiaries
         taken as a whole to any "person" or "group" (within the meaning of
         Sections 13(d) and 14(d)(2) of the Securities Exchange Act) other than
         the WPEP Entities, (b) prior to a Qualifying IPO, the WPEP Entities
         shall fail to own beneficially, directly or indirectly, at least 50% of
         the outstanding Voting Stock of the Parent, (c) after a Qualifying IPO,
         the WPEP Entities shall fail to own beneficially, directly or
         indirectly, (1) at least 30% of the outstanding Voting Stock of the
         Parent and (2) a greater percentage of the outstanding Voting Stock of
         the Parent than the percentage of such outstanding Voting Stock which
         any other "person" or "group" (within the meaning of Sections 13(d) and
         14(d)(2) of the Securities Exchange Act) other than the WPEP Entities
         (A) shall have acquired beneficial ownership, directly or indirectly,
         of or (B) shall have acquired by contract or otherwise, or shall have
         entered into a contract or arrangement that, upon consummation, will
         result in its or their acquisition of, control over, (d) the failure of
         the WPEP Entities and the Co-Investor to control, whether through

                                       5
<PAGE>   11

         ownership of Voting Stock, by contract or otherwise, a majority of the
         seats (excluding vacant seats) on the Parent's Board of Directors. As
         used herein, "beneficial ownership" shall have the meaning provided in
         Rule 13d-3 of the Securities and Exchange Commission under the
         Securities Exchange Act, or (e) the Parent shall fail to own directly
         100% of the outstanding Capital Stock of the Borrower.

                  "Closing Date" means the date hereof.

                  "Co-Investor" means the Vertical Fund Associates, L.P., a
         Delaware limited partnership.

                  "Code" means the Internal Revenue Code of 1986, as amended,
         and any successor statute thereto, as interpreted by the rules and
         regulations issued thereunder, in each case as in effect from time to
         time. References to sections of the Code shall be construed also to
         refer to any successor sections.

                  "Collateral" means a collective reference to all real and
         personal Property (other than Excluded Property) with respect to which
         Liens in favor of the Agent are purported to be granted pursuant to and
         in accordance with the terms of the Collateral Documents.

                  "Collateral Documents" means a collective reference to the
         Security Agreement, the Pledge Agreement and the Mortgage Instruments.

                  "Commitment" means (i) with respect to each Lender, the
         Revolving Commitment of such Lender, the Tranche A Term Loan Commitment
         and the Tranche B Term Loan Commitment of such Lender and (ii) with
         respect to the Issuing Lender, the LOC Commitment.

                  "Commitment Percentage" means, for any Lender, the percentage
         identified as its Commitment Percentage on Schedule 2.1(a), as such
         percentage may be modified in connection with any assignment made in
         accordance with the provisions of Section 11.3.

                  "Consolidated Capital Expenditures" means, as of any date for
         the four fiscal quarter period ending on such date with respect to the
         Consolidated Parties on a consolidated basis, all capital expenditures,
         as determined in accordance with GAAP, but in any event excluding (i)
         Eligible Reinvestments made with proceeds of any Involuntary
         Disposition and (ii) any capital expenditures to the extent financed
         with the proceeds of (a) Investor Subordinated Debt or (b) any Equity
         Issuance by any member of the Initial Investor Group; provided,
         however, that (1) Consolidated Capital Expenditures for the four fiscal
         quarter period ending as of June 30, 2000 shall be based on
         Consolidated Capital Expenditures for the one fiscal-quarter period
         then ended multiplied by 4, (2) Consolidated Capital Expenditures for
         the four fiscal quarter period ending as of September 30, 2000 shall be
         based on Consolidated Capital Expenditures for the two fiscal-quarter
         period then ended multiplied by 2 and (3) Consolidated Capital
         Expenditures for the four fiscal quarter period ending as of December
         31, 2000 shall be based on Consolidated Capital Expenditures for the
         three fiscal-quarter period then ended

                                       6
<PAGE>   12
         multiplied by 1.33. Notwithstanding any other provisions of this Credit
         Agreement to the contrary, Consolidated Capital Expenditures shall not
         include any payments of Holdback Merger Consideration or Contingent
         Merger Consideration by or on behalf of the Borrower.

                  "Consolidated Cash Taxes" means, as of any date for the four
         fiscal quarter period ending on such date with respect to the
         Consolidated Parties on a consolidated basis, the aggregate of all
         taxes, as determined in accordance with GAAP, to the extent the same
         are paid in cash during such period; provided, however, that (i)
         Consolidated Cash Taxes for the four fiscal quarter period ending as of
         June 30, 2000 shall be based on Consolidated Cash Taxes for the one
         fiscal-quarter period then ended multiplied by 4, (ii) Consolidated
         Cash Taxes for the four fiscal quarter period ending as of September
         30, 2000 shall be based on Consolidated Cash Taxes for the two
         fiscal-quarter period then ended multiplied by 2 and (iii) Consolidated
         Cash Taxes for the four fiscal quarter period ending as of December 31,
         2000 shall be based on Consolidated Cash Taxes for the three
         fiscal-quarter period then ended multiplied by 1.33.

                  "Consolidated EBITDA" means, as of any date for the four
         fiscal quarter period ending on such date with respect to the
         Consolidated Parties on a consolidated basis, the sum of (i)
         Consolidated Net Income, plus (ii) an amount which, in the
         determination of Consolidated Net Income, has been deducted for (A)
         Consolidated Interest Expense, (B) total Federal, state, local and
         foreign income, value added and similar taxes, (C) depreciation and
         amortization expense, (D) recognition of accruals for pension plan
         obligations which did not require cash funding during such period, (E)
         to the extent incurred during fiscal year 2000 of the Consolidated
         Parties, one-time expenses in an aggregate amount not to exceed
         $1,000,000 associated with the restructuring of the business acquired
         under the Purchase Agreement, including, but not limited to severance
         obligations incurred as a result of such restructuring, (F) one-time
         expenses associated with the restructuring of the business acquired
         under that certain Asset Purchase Agreement dated as of July 21, 1998
         among Pfizer Inc. and the Borrower, including, but not limited to
         severance obligations incurred as a result of such restructuring, in an
         aggregate amount of up to (1) to the extent incurred during the first
         fiscal quarter of 1999, $3,000,000, (2) to the extent incurred during
         the second fiscal quarter of 1999, $400,000 and (3) to the extent
         incurred during the third fiscal quarter of 1999, $200,000 and (G) the
         recognition of expense for the write-off of purchased research and
         development, all as determined in accordance with GAAP.

                  "Consolidated Interest Expense" means, as of any date for the
         four fiscal quarter period ending on such date with respect to the
         Consolidated Parties on a consolidated basis, interest expense
         (including the amortization of debt discount and premium, the interest
         component under Capital Leases and the implied interest component under
         Synthetic Leases), as determined in accordance with GAAP; provided,
         however, that (i) Consolidated Interest Expense for the four
         fiscal-quarter period ending as of March 31, 2000 shall be calculated
         on a pro forma basis assuming that (a) the Indebtedness of the
         Consolidated Parties outstanding on March 31, 2000 was the only
         Indebtedness outstanding during such four fiscal-quarter period and (b)
         all Indebtedness of the Consolidated Parties outstanding on March 31,
         2000 was outstanding on every day

                                       7
<PAGE>   13

         of such four fiscal-quarter period and was bearing interest for each
         such day at the rate which is in effect with respect to such
         Indebtedness on March 31, 2000, (ii) Consolidated Interest Expense for
         the four fiscal quarter period ending as of June 30, 2000 shall be
         based on Consolidated Interest Expense for the one fiscal-quarter
         period then ended multiplied by 4, (iii) Consolidated Interest Expense
         for the four fiscal quarter period ending as of September 30, 2000
         shall be based on Consolidated Interest Expense for the two
         fiscal-quarter period then ended multiplied by 2 and (iv) Consolidated
         Interest Expense for the four fiscal quarter period ending as of
         December 31, 2000 shall be based on Consolidated Interest Expense for
         the three fiscal-quarter period then ended multiplied by 1.33.

                  "Consolidated Net Income" means, as of any date for the four
         fiscal quarter period ending on such date with respect to the
         Consolidated Parties on a consolidated basis, net income (excluding
         extraordinary items) after interest expense, income taxes and
         depreciation and amortization, all as determined in accordance with
         GAAP.

                  "Consolidated Parties" means a collective reference to the
         Parent and its Subsidiaries, and "Consolidated Party" means any one of
         them.

                  "Consolidated Scheduled Funded Debt Payments" means, as of any
         date for the four fiscal quarter period ending on such date with
         respect to the Consolidated Parties on a consolidated basis, the sum of
         all scheduled payments of principal on Funded Indebtedness (including
         the implied principal component of payments due on Capital Leases and
         Synthetic Leases, but excluding voluntary prepayments or mandatory
         prepayments required pursuant to Section 3.3), as determined in
         accordance with GAAP.

                  "Contingent Merger Consideration" shall have the meaning
         assigned to such term in Section 2.8(c) of the Purchase Agreement.

                  "Continue", "Continuation" and "Continued" shall refer to the
         continuation pursuant to Section 3.2 hereof of a Eurodollar Loan from
         one Interest Period to the next Interest Period.

                  "Convert", "Conversion" and "Converted" shall refer to a
         conversion pursuant to Section 3.2 or Sections 3.7 through 3.12,
         inclusive, of a Base Rate Loan into a Eurodollar Loan.

                  "Credit Documents" means a collective reference to this Credit
         Agreement, the Notes, the LOC Documents, each Joinder Agreement, the
         Agent's Fee Letter and the Collateral Documents (in each case as the
         same may be amended, modified, restated, supplemented, extended,
         renewed or replaced from time to time), and "Credit Document" means any
         one of them.

                  "Credit Facilities" shall have the meaning assigned to such
         term in the recitals hereto.

                                       8
<PAGE>   14

                  "Credit Parties" means a collective reference to the Borrower
         and the Guarantors, and "Credit Party" means any one of them.

                  "Credit Party Obligations" means, without duplication, (i) all
         of the obligations of the Credit Parties to the Lenders (including the
         Issuing Lender) and the Agent, whenever arising, under this Credit
         Agreement, the Notes, the Collateral Documents or any of the other
         Credit Documents (including, but not limited to, any interest accruing
         after the occurrence of a Bankruptcy Event with respect to any Credit
         Party, regardless of whether such interest is an allowed claim under
         the Bankruptcy Code) and (ii) unless otherwise agreed to by a Credit
         Party in the documentation evidencing same, all liabilities and
         obligations, whenever arising, owing from any Credit Party to any
         Lender, or any Affiliate of a Lender, arising under any Hedging
         Agreement.

                  "Debt Issuance" means the issuance of any Indebtedness for
         borrowed money by any Consolidated Party other than Indebtedness
         permitted under Section 8.1.

                  "Default" means any event, act or condition which with notice
         or lapse of time, or both, would constitute an Event of Default.

                  "Defaulting Lender" means, at any time, any Lender that (a)
         has failed to make a Loan or purchase a Participation Interest required
         pursuant to the term of this Credit Agreement within one Business Day
         of when due, (b) other than as set forth in (a) above, has failed to
         pay to the Agent or any Lender an amount owed by such Lender pursuant
         to the terms of this Credit Agreement within one Business Day of when
         due, unless such amount is subject to a good faith dispute or (c) has
         been deemed insolvent or has become subject to a bankruptcy or
         insolvency proceeding or with respect to which (or with respect to any
         of the assets of which) a receiver, trustee or similar official has
         been appointed.

                  "Dollar Equivalent" means, on any date, (i) with respect to an
         amount denominated in Dollars, such amount, and (ii) with respect to an
         amount denominated in any currency other than Dollars, the amount of
         Dollars into which such amount could be converted at its spot rate of
         exchange in the interbank foreign exchange market applicable to the
         relevant transaction on such date.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States.

                  "Domestic Subsidiary" means any direct or indirect Subsidiary
         of the Borrower which is incorporated or organized under the laws of
         any State of the United States or the District of Columbia.

                  "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
         Lender or any fund that invests in bank loans and is managed by an
         investment advisor to a Lender; and (iii) any commercial bank,
         financial institution or any institutional "accredited investor" (as
         defined in Regulation D) approved by the Agent and, unless an Event of
         Default has occurred and is continuing at the time any assignment is
         effected in accordance with Section 11.3, the Borrower (such approval
         by the Agent or the Borrower not to be

                                       9
<PAGE>   15

         unreasonably withheld or delayed and such approval to be deemed given
         by the Borrower if no objection is received by the assigning Lender and
         the Agent from the Borrower within two (2) Business Days after
         confirmation (such confirmation not to be unreasonably withheld or
         delayed) by an Executive Officer of the Borrower of receipt of notice
         of such proposed assignment by the assigning Lender); provided,
         however, that neither the Borrower nor an Affiliate of the Borrower
         shall qualify as an Eligible Assignee.

                  "Eligible Prepayment Proceeds" means, (i) at any time after
         the Agent has received the Required Financial Information for any
         fiscal year end, the portion of Excess Cash Flow for such fiscal year
         not required to be applied to prepay the Loans pursuant to the terms of
         Section 3.3(b)(ii), (ii) the cash proceeds from any Equity Issuance by
         any Consolidated Party to any member of the Initial Investor Group,
         (iii) the cash proceeds from a Qualifying IPO, (iv) the portion of Net
         Cash Proceeds from an Equity Issuance (other than an Excluded Equity
         Issuance) not required to be applied to prepay the Loans pursuant to
         the terms of Section 3.3(b)(v) and (v) the cash proceeds of Investor
         Subordinated Debt.

                  "Eligible Reinvestment" means (i) any acquisition (whether or
         not constituting a capital expenditure, but not constituting an
         Acquisition) of assets or any business (or any substantial part
         thereof) used or useful in the same or a similar line of business as
         the Borrower and its Subsidiaries were engaged in on the Closing Date
         (or any reasonable extensions or expansions thereof) and (ii) any
         Permitted Acquisition.

                  "Environmental Laws" means any and all lawful and applicable
         Federal, state, local and foreign statutes, laws (including, without
         limitation, the Comprehensive Environmental Response, Compensation and
         Liability Act of 1980, the Resource Conservation and Recovery Act of
         1976, the Toxic Substances Control Act, the Water Pollution Control
         Act, the Clean Air Act and the Hazardous Materials Transportation Act),
         regulations, ordinances, rules, judgments, orders, decrees, permits,
         concessions, grants, franchises, licenses, agreements or other
         governmental restrictions relating to the environment or to emissions,
         discharges, releases or threatened releases of pollutants,
         contaminants, chemicals, or industrial, toxic or hazardous substances
         or wastes into the environment including, without limitation, ambient
         air, surface water, ground water, or land, or otherwise relating to the
         manufacture, processing, distribution, use, treatment, storage,
         disposal, transport, or handling of pollutants, contaminants,
         chemicals, or industrial, toxic or hazardous substances or wastes.

                  "Equity Issuance" means any issuance by any Consolidated Party
         to any Person of (a) shares of its Capital Stock, (b) any shares of its
         Capital Stock pursuant to the exercise of options or warrants, (c) any
         shares of its Capital Stock pursuant to the conversion of any debt
         securities to equity or (d) any options or warrants relating to its
         Capital Stock. The term "Equity Issuance" shall not include any Asset
         Disposition.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended, and any successor statute thereto, as interpreted by
         the rules and regulations

                                       10
<PAGE>   16

         thereunder, all as the same may be in effect from time to time.
         References to sections of ERISA shall be construed also to refer to any
         successor sections.

                  "ERISA Affiliate" means an entity which is under common
         control with any Consolidated Party within the meaning of Section
         4001(a)(14) of ERISA, or is a member of a group which includes any
         Consolidated Party and which is treated as a single employer under
         Sections 414(b) or (c) of the Code.

                  "ERISA Event" means (i) with respect to any Plan, the
         occurrence of a Reportable Event or the substantial cessation of
         operations (within the meaning of Section 4062(e) of ERISA); (ii) the
         withdrawal by any Consolidated Party or any ERISA Affiliate from a
         Multiple Employer Plan during a plan year in which it was a substantial
         employer (as such term is defined in Section 4001(a)(2) of ERISA), or
         the termination of a Multiple Employer Plan; (iii) the distribution of
         a notice of intent to terminate or the actual termination of a Plan
         pursuant to Section 4041(a)(2) or 4041A of ERISA; (iv) the institution
         of proceedings to terminate or the actual termination of a Plan by the
         PBGC under Section 4042 of ERISA; (v) any event or condition which
         might constitute grounds under Section 4042 of ERISA for the
         termination of, or the appointment of a trustee to administer, any
         Plan; (vi) the complete or partial withdrawal of any Consolidated Party
         or any ERISA Affiliate from a Multiemployer Plan; (vii) the conditions
         for imposition of a lien under Section 302(f) of ERISA exist with
         respect to any Plan; or (viii) the adoption of an amendment to any Plan
         requiring the provision of security to such Plan pursuant to Section
         307 of ERISA.

                  "Eurodollar Loan" means any Loan that bears interest at a rate
         based upon the Eurodollar Rate.

                  "Eurodollar Rate" means, for any Eurodollar Loan for any
         Interest Period therefor, the rate per annum (rounded upwards, if
         necessary, to the nearest 1/100 of 1%) determined by the Agent to be
         equal to the quotient obtained by dividing (a) the Interbank Offered
         Rate for such Eurodollar Loan for such Interest Period by (b) 1 minus
         the Eurodollar Reserve Requirement for such Eurodollar Loan for such
         Interest Period.

                  "Eurodollar Reserve Requirement" means, at any time, the
         maximum rate at which reserves (including, without limitation, any
         marginal, special, supplemental, or emergency reserves) are required to
         be maintained under regulations issued from time to time by the Board
         of Governors of the Federal Reserve System (or any successor) by member
         banks of the Federal Reserve System against "Eurocurrency liabilities"
         (as such term is used in Regulation D). Without limiting the effect of
         the foregoing, the Eurodollar Reserve Requirement shall reflect any
         other reserves required to be maintained by such member banks with
         respect to (i) any category of liabilities which includes deposits by
         reference to which the Adjusted Eurodollar Rate is to be determined, or
         (ii) any category of extensions of credit or other assets which include
         Eurodollar Loans. The Adjusted Eurodollar Rate shall be adjusted
         automatically on and as of the effective date of any change in the
         Eurodollar Reserve Requirement.

                  "Event of Default" shall have the meaning assigned to such
         term in Section 9.1.

                                       11
<PAGE>   17

                  "Excess Cash Flow" means, with respect to any fiscal year
         period of the Consolidated Parties on a consolidated basis, an amount
         equal to (a) Consolidated EBITDA minus (b) Consolidated Capital
         Expenditures minus (c) Consolidated Interest Expense minus (d) Federal,
         state and other income taxes payable by the Consolidated Parties on a
         consolidated basis minus (e) Consolidated Scheduled Funded Debt
         Payments minus (f) the amount of any voluntary prepayments of the
         Tranche A Term Loan or (to the extent accompanied by a reduction in the
         Revolving Committed Amount) the Revolving Loans.

                  "Excess Proceeds" shall have the meaning assigned to such term
         in Section 7.6(b).

                  "Excluded Asset Disposition" means, with respect to any
         Consolidated Party, (i) the disposition of inventory or other assets
         sold, leased, licensed or disposed of or replaced in the ordinary
         course of such Consolidated Party's business, (ii) the disposition of
         machinery and equipment no longer used or useful in the conduct of such
         Consolidated Party's business, (iii) any Equity Issuance by such
         Consolidated Party, (iv) any Involuntary Disposition by such
         Consolidated Party, (v) any sale, lease, transfer or other disposition
         of Property by such Consolidated Party to any Credit Party, provided
         that the Credit Parties shall cause to be executed and delivered such
         documents, instruments and certificates as the Agent may request so as
         to cause the Credit Parties to be in compliance with the terms of
         Section 7.13 after giving effect to such transaction and (vi) if such
         Consolidated Party is not a Credit Party, any sale, lease, transfer or
         other disposition of Property by such Consolidated Party to any
         Consolidated Party that is not a Credit Party.

                  "Excluded Equity Issuance" means (i) any Equity Issuance by
         any Consolidated Party to any Credit Party or any member of the Initial
         Investor Group, (ii) any Equity Issuance by the Parent in connection
         with a Permitted Acquisition, (iii) any Equity Issuance by the Parent
         the proceeds of which are used to finance a Permitted Acquisition, (iv)
         any Equity Issuance pursuant to the exercise of options issued to
         management of the Parent or the Borrower and (v) any Equity Issuance
         constituting a Qualifying IPO.

                  "Excluded Property" means, with respect to any Consolidated
         Party, including any Person that becomes a Consolidated Party after the
         Closing Date as contemplated by Section 7.12, (i) any owned or leased
         real or personal Property of such Consolidated Party which is located
         outside of the United States, (ii) any owned real Property of such
         Consolidated Party which has a net book value of less than $100,000,
         provided that the aggregate net book value of all real Property of all
         of the Consolidated Parties excluded pursuant to this clause (ii) shall
         not exceed $500,000, (iii) any leased real Property of such Credit
         Party which, at the written request of the Borrower, the Agent has
         agreed in writing in its sole reasonable discretion is not material,
         (iv) any leased personal Property of such Consolidated Party, (v) any
         personal Property of such Consolidated Party (including, without
         limitation, motor vehicles) in respect of which perfection of a Lien is
         not either (A) governed by the Uniform Commercial Code or (B) effected
         by appropriate evidence of the Lien being filed in either the United
         States Copyright Office or the United States Patent and Trademark
         Office and (vi) any Property of such Consolidated Party which, subject
         to the terms of Section 8.11 and Section 8.15, is subject to a Lien of
         the

                                       12
<PAGE>   18

         type described in Section 8.2(g) pursuant to documents which prohibit
         such Consolidated Party from granting any other Liens in such Property.

                  "Executive Officer" of any Person means any of the chief
         executive officer, chief operating officer, president, vice president,
         chief financial officer or treasurer of such Person.

                  "Federal Funds Rate" means, for any day, the rate per annum
         (rounded upwards, if necessary, to the nearest 1/100 of 1%) 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 by the Federal Reserve
         Bank of New York on the Business Day next succeeding such day; provided
         that (a) if such day is not a Business Day, the Federal Funds Rate for
         such day shall be such rate on such transactions on the next preceding
         Business Day as so published on the next succeeding Business Day, and
         (b) if no such rate is so published on such next succeeding Business
         Day, the Federal Funds Rate for such day shall be the average rate
         charged to the Agent (in its individual capacity) on such day on such
         transactions as determined by the Agent.

                  "Fees" means all fees payable pursuant to Section 3.5.

                  "Fixed Charge Coverage Ratio" means, as of the end of any
         fiscal quarter of the Consolidated Parties for the four fiscal quarter
         period ending on such date with respect to the Consolidated Parties on
         a consolidated basis, the ratio of (a) the sum of (i) Consolidated
         EBITDA for such period minus (ii) Consolidated Capital Expenditures for
         such period minus (iii) Consolidated Cash Taxes for such period to (b)
         the sum of (i) Consolidated Interest Expense for such period plus (ii)
         Consolidated Scheduled Funded Debt Payments for such period.

                  "Foreign Subsidiary" means any direct or indirect Subsidiary
         of the Borrower which is not a Domestic Subsidiary.

                  "Fully Satisfied" means, with respect to the Credit Party
         Obligations as of any date, that, as of such date, (a) all principal of
         and interest accrued to such date which constitute Credit Party
         Obligations shall have been paid in full in cash, (b) all fees,
         expenses and other amounts then due and payable which constitute Credit
         Party Obligations shall have been paid in cash, (c) all outstanding
         Letters of Credit shall have been (i) terminated, (ii) fully cash
         collateralized or (iii) secured by one or more letters of credit on
         terms and conditions, and with one or more financial institutions,
         reasonably satisfactory to the Issuing Lender and (d) the Commitments
         shall have been expired or terminated in full.

                  "Funded Indebtedness" means, with respect to any Person,
         without duplication, (i) all Indebtedness of such Person other than
         Indebtedness of the types referred to in clauses (e), (f), (g), (i) and
         (n) of the definition of "Indebtedness" set forth in this Section 1.1,
         (ii) all Funded Indebtedness of others of the type referred to in
         clause (i) above secured by (or for which the holder of such Funded
         Indebtedness has an existing right,

                                       13
<PAGE>   19

         contingent or otherwise, to be secured by) any Lien on, or payable out
         of the proceeds of production from, Property owned or acquired by such
         Person, whether or not the obligations secured thereby have been
         assumed (or, if less, the aggregate net book value of all Property
         securing such Funded Indebtedness of others), (iii) all Guaranty
         Obligations of such Person with respect to Funded Indebtedness of the
         type referred to in clause (i) above of another Person and (iv) Funded
         Indebtedness of the type referred to in clause (i) above of any
         partnership or unincorporated joint venture in which such Person is a
         general partner or a joint venturer to the extent such Funded
         Indebtedness is recourse to such Person. Notwithstanding any other
         provisions of this Credit Agreement to the contrary, the Funded
         Indebtedness of the Consolidated Parties shall not include the
         obligations of the Borrower in respect of Holdback Merger Consideration
         or Contingent Merger Consideration.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to the terms of
         Section 1.3 (except, in respect of Synthetic Leases, as otherwise
         treated herein).

                  "General Partner" means Warburg, Pincus & Co., a New York
         general partnership, as general partner of each of the WPEP Entities.

                  "Governmental Authority" means any Federal, state, local or
         foreign court or governmental agency, authority, instrumentality or
         regulatory body.

                  "Guaranteed Lenders" means, at any time, Lenders holding any
         of (i) the Revolving Commitments (and Participation Interests therein)
         (or, if the Revolving Commitments have been terminated, the outstanding
         Revolving Loans, LOC Obligations and Participation Interests (including
         the Participation Interests of the Issuing Lender in any Letters of
         Credit) or (ii) the outstanding Tranche B Term Loans (and Participation
         Interests therein).

                  "Guarantors" means a collective reference to the Parent and
         each of the Subsidiary Guarantors, together with their successors and
         permitted assigns, and "Guarantor " means any one of them.

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations of such Person (other than
         endorsements in the ordinary course of business of negotiable
         instruments for deposit or collection) guaranteeing or intended to
         guarantee any Indebtedness of any other Person in any manner, whether
         direct or indirect, and including without limitation any obligation,
         whether or not contingent, (i) to purchase any such Indebtedness or any
         Property constituting security therefor, (ii) to advance or provide
         funds or other support for the payment or purchase of any such
         Indebtedness or to maintain working capital, solvency or other balance
         sheet condition of such other Person (including without limitation keep
         well agreements, maintenance agreements, comfort letters or similar
         agreements or arrangements) for the benefit of any holder of
         Indebtedness of such other Person, (iii) to lease or purchase Property,
         securities or services primarily for the purpose of assuring the holder
         of such Indebtedness, or (iv) to otherwise assure or hold harmless the
         holder of such Indebtedness against loss in respect thereof. The amount
         of any Guaranty Obligation hereunder shall (subject to any limitations
         set forth therein) be deemed to be an

                                       14
<PAGE>   20

         amount equal to the outstanding principal amount (or maximum principal
         amount, if larger) of the Indebtedness in respect of which such
         Guaranty Obligation is made. Notwithstanding any other provisions of
         this Credit Agreement to the contrary, the Guaranty Obligations of the
         Consolidated Parties shall not include the obligations of the Borrower
         in respect of Holdback Merger Consideration or Contingent Merger
         Consideration.

                  "Hedging Agreements" means any interest rate protection
         agreement, foreign currency exchange agreement or commodity price
         hedging agreement or, in each case, other similar agreement.

                  "Holdback Merger Consideration" shall have the meaning
         assigned to such term in Section 2.8(b) of the Purchase Agreement.

                  "Indebtedness" means, with respect to any Person, without
         duplication, (a) all obligations of such Person for borrowed money, (b)
         all obligations of such Person evidenced by bonds, debentures, notes or
         similar instruments, (c) all obligations of such Person under
         conditional sale or other title retention agreements relating to
         Property purchased by such Person (other than customary reservations or
         retentions of title under agreements with suppliers entered into in the
         ordinary course of business), (d) all obligations of such Person issued
         or assumed as the deferred purchase price of Property or services
         purchased by such Person (other than trade debt incurred in the
         ordinary course of business and due within six months of the incurrence
         thereof) which would appear as liabilities on a balance sheet of such
         Person, (e) all obligations of such Person under take-or-pay or similar
         arrangements or under commodities agreements, (f) all Indebtedness of
         others secured by (or for which the holder of such Indebtedness has an
         existing right, contingent or otherwise, to be secured by) any Lien on,
         or payable out of the proceeds of production from, Property owned or
         acquired by such Person, whether or not the obligations secured thereby
         have been assumed, (g) all Guaranty Obligations of such Person with
         respect to Indebtedness of another Person, (h) the implied principal
         component of all obligations of such Person under Capital Leases, (i)
         all obligations of such Person under Hedging Agreements, (j) the
         maximum amount of all performance and standby letters of credit issued
         or bankers' acceptances facilities created for the account of such
         Person and, without duplication, all drafts drawn thereunder (to the
         extent unreimbursed), (k) all preferred Capital Stock issued by such
         Person and which by the terms thereof could be (at the request of the
         holders thereof or otherwise) subject to mandatory sinking fund
         payments, redemption or other acceleration (other than as a result of a
         Change of Control or an Asset Disposition that does not in fact result
         in a redemption of such preferred Capital Stock) at any time prior to
         the Maturity Date, (l) the principal portion of all obligations of such
         Person under Synthetic Leases, (m) all obligations of such Person to
         repurchase any securities issued by such Person at any time prior to
         the Maturity Date which repurchase obligations are related to the
         issuance thereof, including, without limitation, obligations commonly
         known as residual equity appreciation potential shares, (n) the
         Indebtedness of any partnership or unincorporated joint venture in
         which such Person is a general partner or a joint venturer to the
         extent such Funded Indebtedness is recourse to such Person and (o) the
         aggregate amount of uncollected accounts receivable of such Person
         subject at such time to a sale of receivables (or similar transaction)
         to the extent such transaction is effected with recourse to such Person
         (whether or not such transaction would

                                       15
<PAGE>   21

         be reflected on the balance sheet of such Person in accordance with
         GAAP). Notwithstanding any other provisions of this Credit Agreement to
         the contrary, the Indebtedness of the Consolidated Parties shall not
         include the obligations of the Borrower in respect of Holdback Merger
         Consideration or Contingent Merger Consideration.

                  "Indemnified Party" shall have the meaning assigned to such
         term in Section 11.5(b).

                  "Influence" means Influence, Inc., a Delaware corporation.

                  "Initial Funding Date" means the date on which the conditions
         set forth in Section 5.2 to the making of the initial Loans and/or the
         issuance of the initial Letter of Credit, as applicable, shall have
         been fulfilled (or waived in the sole discretion of the Lenders) and on
         which the initial Loans shall have been made and/or the initial Letters
         of Credit shall have been issued.

                  "Initial Investor Group" means the WPEP Entities and their
         Affiliates, the Management Investors and the Co-Investor.

                  "Interbank Offered Rate" means, for any Eurodollar Loan for
         any Interest Period therefor, the rate per annum (rounded upwards, if
         necessary, to the nearest 1/100 of 1%) appearing on Page 3750 (or any
         successor page) of the Dow Jones Market Service as the London interbank
         offered rate for deposits in Dollars at approximately 11:00 a.m.
         (London time) two Business Days prior to the first day of such Interest
         Period for a term comparable to such Interest Period. If for any reason
         such rate is not available, the term "Interbank Offered Rate" shall
         mean, for any Eurodollar Loan for any Interest Period therefor, the
         rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
         1%) appearing on Reuters Screen LIBO Page as the London interbank
         offered rate for deposits in Dollars at approximately 11:00 a.m.
         (London time) two Business Days prior to the first day of such Interest
         Period for a term comparable to such Interest Period; provided,
         however, if more than one rate is specified on Reuters Screen LIBO
         Page, the applicable rate shall be the arithmetic mean of all such
         rates (rounded upwards, if necessary, to the nearest 1/100 of 1%).

                  "Interest Coverage Ratio" means, as of the end of any fiscal
         quarter of the Consolidated Parties for the four fiscal quarter period
         ending on such date with respect to the Consolidated Parties on a
         consolidated basis, the ratio of (a) Consolidated EBITDA for such
         period to (b) Consolidated Interest Expense for such period.

                  "Interest Payment Date" means (a) as to Base Rate Loans, the
         last Business Day of each March, June, September and December, the date
         of repayment of principal of such Loan and the Maturity Date, and (b)
         as to Eurodollar Loans, the last day of each applicable Interest
         Period, the date of repayment of principal of such Loan and the
         Maturity Date, and in addition where the applicable Interest Period for
         a Eurodollar Loan is greater than three months, then also the date
         three months from the beginning of the Interest Period and each three
         months thereafter.

                                       16

<PAGE>   22
                  "Interest Period" means, as to Eurodollar Loans, a period of
         one, two, three or six months' duration, as the Borrower may elect,
         commencing, in each case, on the date of the borrowing (including
         continuations and conversions thereof); provided, however, (a) if any
         Interest Period would end on a day which is not a Business Day, such
         Interest Period shall be extended to the next succeeding Business Day
         (except that where the next succeeding Business Day falls in the next
         succeeding calendar month, then on the next preceding Business Day),
         (b) no Interest Period shall extend beyond the Maturity Date and (c)
         where an Interest Period begins on a day for which there is no
         numerically corresponding day in the calendar month in which the
         Interest Period is to end, such Interest Period shall end on the last
         Business Day of such calendar month.

                  "Investment" in any Person means (a) the acquisition (whether
         for cash, property, services, assumption of Indebtedness, securities or
         otherwise) of assets (other than equipment, inventory, supplies and
         general intangibles in the ordinary course of business and other than
         any acquisition of assets constituting a Consolidated Capital
         Expenditure), Capital Stock, bonds, notes, debentures, partnership,
         joint ventures or other ownership interests or other securities of such
         other Person, (b) any deposit with, or advance, loan or other extension
         of credit to, such Person (other than deposits made in connection with
         the purchase of equipment inventory, supplies and general intangibles
         in the ordinary course of business) or (c) any other capital
         contribution to or investment in such Person, including, without
         limitation, any Guaranty Obligations (including any support for a
         letter of credit issued on behalf of such Person) incurred for the
         benefit of such Person and any Asset Disposition to such Person for
         consideration less than the fair market value of the Property disposed
         in such transaction, but excluding any Restricted Payment to such
         Person. Investments which are capital contributions or purchases of
         Capital Stock which have a right to participate in the profits of the
         issuer thereof shall be valued at the amount actually contributed or
         paid to purchase such Capital Stock as of the date of such contribution
         or payment. Investments which are loans, advances, extensions of credit
         or Guaranty Obligations shall be valued at the principal amount of such
         loan, advance or extension of credit outstanding as of the date of
         determination or, as applicable, the principal amount of the loan or
         advance outstanding as of the date of determination actually guaranteed
         by such Guaranty Obligation.

                  "Investor Subordinated Debt" means any Indebtedness of the
         Parent or the Borrower incurred pursuant to, and in accordance with the
         terms of, Section 8.1(m).

                  "Involuntary Disposition" shall have the meaning assigned to
         such term in Section 7.6(b).

                  "Issuing Lender" means Bank of America.

                  "Joinder Agreement" means a Joinder Agreement substantially in
         the form of Exhibit 7.12 hereto, executed and delivered by a new
         Guarantor in accordance with the provisions of Section 7.12.

                                       17

<PAGE>   23

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, and any Person which may become a Lender by
         way of assignment in accordance with the terms hereof, together with
         their successors and permitted assigns.

                  "Lending Party" shall have the meaning assigned to such term
         in Section 11.14.

                  "Letter of Credit" means any letter of credit issued by the
         Issuing Lender for the account of the Borrower in accordance with the
         terms of Section 2.2.

                  "Leverage Ratio" means, as of the end of any fiscal quarter of
         the Consolidated Parties for the four fiscal quarter period ending on
         such date with respect to the Consolidated Parties on a consolidated
         basis, the ratio of (a) Funded Indebtedness of the Consolidated Parties
         on a consolidated basis on the last day of such period less Revolving
         Loans and Tranche B Term Loans to (b) Consolidated EBITDA for such
         period.

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind (including any
         agreement to give any of the foregoing, any conditional sale or other
         title retention agreement, any financing or similar statement or notice
         filed under the Uniform Commercial Code as adopted and in effect in the
         relevant jurisdiction or other similar recording or notice statute, and
         any lease in the nature thereof).

                  "Loan" or "Loans" means the Revolving Loans, the Tranche A
         Term Loans and/or the Tranche B Term Loans (or a portion of any
         Revolving Loan, any Tranche A Term Loan or Tranche B Term Loan bearing
         interest at the Adjusted Base Rate or the Adjusted Eurodollar Rate and
         referred to as a Base Rate Loan or a Eurodollar Loan), individually or
         collectively, as appropriate.

                  "LOC Commitment" means the commitment of the Issuing Lender to
         issue Letters of Credit in an aggregate face amount at any time
         outstanding (together with the amounts of any unreimbursed drawings
         thereon) of up to the LOC Committed Amount.

                  "LOC Committed Amount" shall have the meaning assigned to such
         term in Section 2.2.

                  "LOC Documents" means, with respect to any Letter of Credit,
         such Letter of Credit, any amendments thereto, any documents delivered
         in connection therewith, any application therefor, and any agreements,
         instruments, guarantees or other documents (whether general in
         application or applicable only to such Letter of Credit) governing or
         providing for (i) the rights and obligations of the parties concerned
         or at risk or (ii) any collateral security for such obligations.

                  "LOC Obligations" means, at any time, the sum of (i) the
         maximum amount which is, or at any time thereafter may become,
         available to be drawn under Letters of Credit then outstanding,
         assuming compliance with all requirements for drawings referred to in
         such

                                       18

<PAGE>   24

         Letters of Credit plus (ii) the aggregate amount of all drawings under
         Letters of Credit honored by the Issuing Lender but not theretofore
         reimbursed by the Borrower.

                  "Management Agreement" means that certain management agreement
         between U.S. Warburg and the Manager dated as of June 11, 1998.

                  "Management Investors" means each of Douglas W. Kohrs and
         Samuel B. Humphries.

                  "Manager" means E.M. Warburg, Pincus & Co., LLC, a New York
         limited liability company, as manager of each of the WPEP Entities.

                  "Material Adverse Effect" means a material adverse effect on
         (i) after taking into account any applicable insurance and any
         applicable indemnification (to the extent the provider of such
         insurance or indemnification has the financial ability to support is
         obligations with respect thereto and is not disputing or refusing to
         acknowledge the same), the operations, financial condition or business
         of the Consolidated Parties taken as a whole, (ii) the ability of any
         Credit Party to perform any material obligation under the Credit
         Documents to which it is a party or (iii) the material rights and
         remedies of the Agent and the Lenders under the Credit Documents.

                  "Material Foreign Subsidiary" means, at any time, any direct
         Foreign Subsidiary of the Borrower or any Domestic Subsidiary having
         (i) 5% or more of Consolidated Total Assets at such time or (ii) 5% or
         more of Consolidated EBITDA for the most recently ended four fiscal
         quarters; provided, however, Influence Medical Technologies Ltd. shall
         not be eligible for classification as a Material Foreign Subsidiary
         prior to July 31, 2000.

                  "Materials of Environmental Concern" means any gasoline or
         petroleum (including crude oil or any fraction thereof) or petroleum
         products or any hazardous or toxic substances, materials or wastes,
         defined or regulated as such in or under any Environmental Laws,
         including, without limitation, asbestos, polychlorinated biphenyls and
         urea-formaldehyde insulation.

                  "Maturity Date" means the earlier of (a) if the audited
         financial statements described in Section 5.2(q) are not delivered to
         the Agent prior to April 30, 2000, April 30, 2000 or (b) March 24,
         2006.

                  "Moody's" means Moody's Investors Service, Inc., or any
         successor or assignee of the business of such company in the business
         of rating securities.

                  "Mortgage Instruments" shall have the meaning assigned such
         term in Section 5.2(f).

                  "Mortgage Policies" shall have the meaning assigned such term
         in Section 5.2(f).

                                       19

<PAGE>   25

                  "Mortgaged Properties" shall have the meaning assigned such
         term in Section 5.2(f).

                  "Multiemployer Plan" means a Plan which is a "multiemployer
         plan" as defined in Sections 3(37) or 4001(a)(3) of ERISA.

                  "Multiple Employer Plan" means a Plan (other than a
         Multiemployer Plan) which any Consolidated Party or any ERISA Affiliate
         and at least one employer other than the Consolidated Parties or any
         ERISA Affiliate are contributing sponsors.

                  "Net Cash Proceeds" means the aggregate proceeds paid in cash
         or Cash Equivalents received by any Consolidated Party in respect of
         any Asset Disposition, Equity Issuance, Debt Issuance or Involuntary
         Disposition, net of (a) direct costs (including, without limitation,
         legal, accounting and investment banking fees, and sales commissions)
         and (b) a good faith estimate of the taxes payable with respect to such
         proceeds, including, without duplication, withholding taxes and any
         taxes payable to a third party in connection with a distribution of
         such proceeds from a Subsidiary of the Borrower to the Borrower,
         directly or indirectly, (c) with respect to an Asset Disposition, any
         reserve for adjustment in respect of the sale price of such asset or
         assets established in accordance with the terms of the applicable
         agreements governing such Asset Disposition so long as such reserve
         amounts are placed in escrow with a third party and reserves
         established by the Borrower to fund contingent liabilities reasonably
         estimated to be payable during the year that such Asset Disposition
         occurred or the next succeeding year and that are directly attributable
         to such Asset Disposition (as determined reasonably and in good faith
         by the chief financial officer of the Borrower) (d) with respect to an
         Asset Disposition, any payments to be made by the Borrower or any of
         its Subsidiaries, as agreed to between the Borrower or such Subsidiary
         and the purchaser of such asset or assets, in connection with such sale
         or disposition; it being understood that "Net Cash Proceeds" shall
         include, without limitation, any cash or Cash Equivalents received upon
         the sale or other disposition of any non-cash consideration received by
         any such Consolidated Party in any Asset Disposition, Equity Issuance,
         Debt Issuance or Involuntary Disposition.

                  "Note" or "Notes" means the Revolving Notes, the Tranche A
         Term Notes and/or the Tranche B Term Notes, individually or
         collectively, as appropriate.

                  "Notice of Borrowing" means a written notice of borrowing in
         substantially the form of Exhibit 2.1(b)(i), as required by Section
         2.1(b)(i), Section 2.3(b) or Section 2.4(b).

                  "Notice of Extension/Conversion" means the written notice of
         extension or conversion in substantially the form of Exhibit 3.2, as
         required by Section 3.2.

                  "Operating Lease" means, as applied to any Person, any lease
         (including, without limitation, leases which may be terminated by the
         lessee at any time) of any Property (whether real, personal or mixed)
         which is not a Capital Lease other than any such lease in which that
         Person is the lessor.

                                       20

<PAGE>   26

                  "Other Taxes" shall have the meaning assigned to such term in
         Section 3.11(b).

                  "Parent" means American Medical Systems Holdings, Inc., a
         Delaware corporation, together with any permitted successors and
         assigns.

                  "Parent Joinder Agreement" means a Joinder Agreement
         substantially in the form of Exhibit 5.2 hereto, executed and delivered
         by the Parent.

                  "Participation Interest" means a purchase by a Lender of a
         participation in Letters of Credit or LOC Obligations as provided in
         Section 2.2 or in any Loans as provided in Section 3.14.

                  "PBGC" means the Pension Benefit Guaranty Corporation
         established pursuant to Subtitle A of Title IV of ERISA and any
         successor thereof.

                  "Permitted Acquisition" means an Acquisition by the Borrower
         or any Subsidiary of the Borrower permitted pursuant to the terms of
         Section 8.6(j).

                  "Permitted Asset Disposition" means (i) any Asset Disposition
         permitted by Section 8.5 and (ii) any Excluded Asset Disposition.

                  "Permitted Investments" means, at any time, Investments by the
         Consolidated Parties permitted to exist at such time pursuant to the
         terms of Section 8.6.

                  "Permitted Liens" means, at any time, Liens in respect of
         Property of the Consolidated Parties permitted to exist at such time
         pursuant to the terms of Section 8.2.

                  "Person" means any individual, partnership, joint venture,
         firm, corporation, limited liability company, association, trust or
         other enterprise (whether or not incorporated) or any Governmental
         Authority.

                  "Plan" means any employee benefit plan (as defined in Section
         3(3) of ERISA) which is covered by ERISA and with respect to which any
         Consolidated Party or any ERISA Affiliate is (or, if such plan were
         terminated at such time, would under Section 4069 of ERISA be deemed to
         be) an "employer" within the meaning of Section 3(5) of ERISA.

                  "Pledge Agreement" means the pledge agreement dated as of the
         Initial Funding Date in the form of Exhibit 1.1A to be executed in
         favor of the Agent by each of the Credit Parties, as amended, modified,
         restated or supplemented from time to time.

                  "Prime Rate" means the per annum rate of interest established
         from time to time by Bank of America as its prime rate, which rate may
         not be the lowest rate of interest charged by Bank of America to its
         customers.

                                       21

<PAGE>   27

                  "Principal Amortization Payment" means a principal payment on
         the Tranche A Term Loans as set forth in Section 2.3(d) or on the
         Tranche B Term Loans as set forth in Section 2.4(d).

                  "Principal Amortization Payment Date" means the date a
         Principal Amortization Payment is due.

                  "Principal Office" means the principal office of Bank of
         America, presently located at Charlotte, North Carolina.

                  "Pro Forma Basis" means, for purposes of calculating
         (utilizing the principles set forth in the second paragraph of Section
         1.3) compliance with each of the financial covenants set forth in
         Section 7.11(a) and (b) in respect of a proposed transaction, that such
         transaction shall be deemed to have occurred as of the first day of the
         four fiscal-quarter period ending as of the most recent fiscal quarter
         end preceding the date of such transaction with respect to which the
         Agent has received the Required Financial Information. As used herein,
         "transaction" shall mean (i) any Asset Disposition as referred to in
         Section 8.5 or (ii) any Acquisition as referred to in Section 8.6(j).
         In connection with any calculation of the financial covenants set forth
         in 7.11(a) and (b) upon giving effect to a transaction on a Pro Forma
         Basis:

         (A)      for purposes of any such calculation in respect of any Asset
                  Disposition as referred to in Section 8.5, (1) income
                  statement items (whether positive or negative) and capital
                  expenditures attributable to the Property disposed of shall be
                  excluded and (2) any Indebtedness which is retired in
                  connection with such transaction shall be excluded and deemed
                  to have been retired as of the first day of the applicable
                  period; and

         (B)      for purposes of any such calculation in respect of any
                  Acquisition as referred to in Section 8.6(j), (1) any
                  Indebtedness incurred by any Consolidated Party in connection
                  with such transaction (x) shall be deemed to have been
                  incurred as of the first day of the applicable period and (y)
                  if such Indebtedness has a floating or formula rate, shall
                  have an implied rate of interest for the applicable period for
                  purposes of this definition determined by utilizing the rate
                  which is or would be in effect with respect to such
                  Indebtedness as at the relevant date of determination, (2)
                  income statement items (whether positive or negative) and
                  capital expenditures attributable to the Person or Property
                  acquired shall be included beginning as of the first day of
                  the applicable period and (3) pro forma adjustments may be
                  included to the extent that such adjustments would be
                  permitted under GAAP and give effect to events that are (x)
                  directly attributable to such transaction, (y) expected to
                  have a continuing impact on the Consolidated Parties and (z)
                  factually supportable.

                  "Pro Forma Compliance Certificate" means a certificate of an
         Executive Officer of the Borrower delivered to the Agent in connection
         with (i) any Asset Disposition as referred to in Section 8.5 or (ii)
         any Acquisition as referred to in Section 8.6(j), as

                                       22

<PAGE>   28

         applicable, and containing reasonably detailed calculations, upon
         giving effect to the applicable transaction on a Pro Forma Basis, of
         the Leverage Ratio and the Interest Coverage Ratio as of the most
         recent fiscal quarter end preceding the date of the applicable
         transaction with respect to which the Agent shall have received the
         Required Financial Information.

                  "Property" means any interest in any kind of property or
         asset, whether real, personal or mixed, or tangible or intangible.

                  "Purchase Agreement" means Agreement and Plan of Merger, dated
         as of November 12, 1999, by and among the Borrower, Persuade Merger
         Corp., a Delaware corporation, Influence, Globerman Engineering Ltd.,
         an Israeli company, Urotek Ltd., an Israeli company, Katsumi Oneda and
         Lewis C. Pell, as the same may be amended, modified, restated or
         supplemented prior to the Closing Date.

                  "Qualifying IPO" means an Equity Issuance by the Parent
         consisting of an underwritten primary public offering (other than a
         public offering pursuant to a registration statement on Form S-8) of
         the common Capital Stock of the Parent (i) pursuant to an effective
         registration statement filed with the Securities and Exchange
         Commission in accordance with the Securities Act (whether alone or in
         connection with a secondary public offering) and (ii) resulting in
         proceeds to the Parent of at least $30,000,000.

                  "Real Properties" means, at any time, a collective reference
         to each of the facilities and real properties owned, leased or operated
         by the Consolidated Parties at such time.

                  "Refinancing" means the refinancing on the Initial Funding
         Date of certain existing Funded Indebtedness of the Borrower and its
         Subsidiaries.

                  "Register" shall have the meaning assigned to such term in
         Section 11.3(c).

                  "Regulation D, T, U, or X" means Regulation D, T, U or X,
         respectively, of the Board of Governors of the Federal Reserve System
         as from time to time in effect and any successor to all or a portion
         thereof.

                  "Reportable Event" means any of the events set forth in
         Section 4043(c) of ERISA, other than those events as to which the
         notice requirement has been waived by regulation.

                  "Required Financial Information" means, with respect to the
         applicable Calculation Date, (i) the financial statements of the
         Consolidated Parties required to be delivered pursuant to Section
         7.1(a) or (b) for the fiscal period or quarter ending as of such
         Calculation Date, and (ii) the certificate of an Executive Officer of
         the Borrower required by Section 7.1(c) to be delivered with the
         financial statements described in clause (i) above.

                                       23

<PAGE>   29

                  "Required Guaranteed Lenders" means, at any time, Lenders
         (other than Defaulting Lenders) holding in the aggregate at least a
         majority of (i) the Revolving Commitments (and Participation Interests
         therein) and the outstanding Tranche B Term Loans (and Participation
         Interests therein) or (ii) if the Revolving Commitments have been
         terminated, the outstanding Loans, LOC Obligations and Participation
         Interests (including the Participation Interests of the Issuing Lender
         in any Letters of Credit).

                  "Required Lenders" means, at any time, Lenders (other than
         Defaulting Lenders) holding in the aggregate at least a majority of (i)
         the Revolving Commitments (and Participation Interests therein), the
         outstanding Tranche A Term Loans (and Participation Interests therein)
         and the outstanding Tranche B Term Loans (and Participation Interests
         therein) or (ii) if the Revolving Commitments have been terminated, the
         outstanding Loans, LOC Obligations and Participation Interests
         (including the Participation Interests of the Issuing Lender in any
         Letters of Credit).

                  "Required Tranche A Term Lenders" means, at any time, Lenders
         (other than Defaulting Lenders) holding in the aggregate at least a
         majority of the outstanding Tranche A Term Loans (and Participation
         Interests therein).

                  "Requirement of Law" means, as to any Person, the certificate
         of incorporation and by-laws or other organizational or governing
         documents of such Person, and any law, treaty, rule or regulation or
         final, non-appealable determination of an arbitrator or a court or
         other Governmental Authority, in each case applicable to or binding
         upon such Person or to which any of its material property is subject.

                  "Restricted Payment" means (i) any dividend or other payment
         or distribution, direct or indirect, on account of any shares of any
         class of Capital Stock of any Consolidated Party, now or hereafter
         outstanding (including without limitation any payment in connection
         with any dissolution, merger, consolidation or disposition involving
         any Consolidated Party), or to the holders, in their capacity as such,
         of any shares of any class of Capital Stock of any Consolidated Party,
         now or hereafter outstanding (other than dividends or distributions
         payable in Capital Stock of the applicable Person and dividends or
         distributions payable (directly or indirectly through Subsidiaries) to
         any Credit Party other than the Parent), (ii) any redemption,
         retirement, sinking fund or similar payment, purchase or other
         acquisition for value, direct or indirect, of any shares of any class
         of Capital Stock of any Consolidated Party, now or hereafter
         outstanding, (iii) any payment made to retire, or to obtain the
         surrender of, any outstanding warrants, options or other rights to
         acquire shares of any class of Capital Stock of any Consolidated Party,
         now or hereafter outstanding, (iv) any payment or prepayment of
         principal of, premium, if any, or interest on, including any
         redemption, purchase, retirement, defeasance, sinking fund or similar
         payment with respect to, any Investor Subordinated Debt and (v) any
         loan or advance to the Parent.

                  "Revolving Commitment" means, with respect to each Lender, the
         commitment of such Lender in an aggregate principal amount at any time
         outstanding of up to such Lender's Commitment Percentage of the
         Revolving Committed Amount, (i) to make Revolving

                                       24

<PAGE>   30

         Loans in accordance with the provisions of Section 2.1(a) and (ii) to
         purchase Participation Interests in Letters of Credit in accordance
         with the provisions of Section 2.2(c).

                  "Revolving Committed Amount" shall have the meaning assigned
         to such term in Section 2.1(a).

                  "Revolving Loans" shall have the meaning assigned to such term
         in Section 2.1(a).

                  "Revolving Note" or "Revolving Notes" means the promissory
         notes of the Borrower in favor of each Lender provided pursuant to
         Section 2.1(e) and evidencing the Revolving Loans of such Lender,
         individually or collectively, as appropriate, as such promissory notes
         may be amended, modified, restated, supplemented, extended, renewed or
         replaced from time to time.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
         McGraw Hill Companies, Inc., or any successor or assignee of the
         business of such division in the business of rating securities.

                  "Sale and Leaseback Transaction" means any arrangement
         pursuant to which any Consolidated Party, directly or indirectly,
         becomes liable as lessee, guarantor or other surety with respect to any
         lease, whether an Operating Lease or a Capital Lease, of any Property
         (a) which such Consolidated Party has sold or transferred (or is to
         sell or transfer) to a Person which is not a Consolidated Party or (b)
         which such Consolidated Party intends to use for substantially the same
         purpose as any other Property which has been sold or transferred (or is
         to be sold or transferred) by such Consolidated Party to another Person
         which is not a Consolidated Party in connection with such lease.

                  "Securities Act" means the Securities Act of 1933, as amended,
         and all regulations issued pursuant thereto.

                  "Securities Exchange Act" means the Securities Exchange Act of
         1934, as amended, and all regulations issued pursuant thereto.

                  "Security Agreement" means the security agreement dated as of
         the Initial Funding Date in the form of Exhibit 1.1B to be executed in
         favor of the Agent by each of the Credit Parties, as amended, modified,
         restated or supplemented from time to time.

                  "Single Employer Plan" means any Plan which is covered by
         Title IV of ERISA, but which is not a Multiemployer Plan or a Multiple
         Employer Plan.

                  "Solvent" or "Solvency" means, with respect to any Person as
         of a particular date, that on such date (i) such Person is able to pay
         its debts and other liabilities, contingent obligations and other
         commitments as they mature in the normal course of business, (ii) such
         Person does not intend to, and does not believe that it will, incur
         debts or liabilities beyond such Person's ability to pay as such debts
         and liabilities mature in their ordinary course, (iii) such Person is
         not engaged in a business or a transaction, and is not about to

                                       25

<PAGE>   31

         engage in a business or a transaction, for which such Person's Property
         would constitute unreasonably small capital after giving due
         consideration to the prevailing practice in the industry in which such
         Person is engaged or is to engage, (iv) the fair value of the Property
         of such Person is greater than the total amount of liabilities,
         including, without limitation, contingent liabilities, of such Person
         and (v) the present fair salable value of the assets of such Person is
         not less than the amount that will be required to pay the probable
         liability of such Person on its debts as they become absolute and
         matured. In computing the amount of contingent liabilities at any time,
         it is intended that such liabilities will be computed at the amount
         which, in light of all the facts and circumstances existing at such
         time, represents the amount that can reasonably be expected to become
         an actual or matured liability.

                  "Standby Letter of Credit Fee" shall have the meaning assigned
         to such term in Section 3.5(b)(i).

                  "Subsidiary" means, as to any Person at any time, (a) any
         corporation more than 50% of whose Capital Stock of any class or
         classes having by the terms thereof ordinary voting power to elect a
         majority of the directors of such corporation (irrespective of whether
         or not at such time, any class or classes of such corporation shall
         have or might have voting power by reason of the happening of any
         contingency) is at such time owned by such Person directly or
         indirectly through Subsidiaries, and (b) any partnership, association,
         joint venture or other entity of which such Person directly or
         indirectly through Subsidiaries owns at such time more than 50% of the
         Capital Stock.

                  "Subsidiary Guarantor" means each of the Persons identified as
         a "Subsidiary Guarantor" on the signature pages hereto and each Person
         which may hereafter execute a Joinder Agreement pursuant to Section
         7.12, together with their successors and permitted assigns, and
         "Subsidiary Guarantor" means any one of them.

                  "Synthetic Lease" means any synthetic lease, tax retention
         operating lease, off-balance sheet loan or similar off-balance sheet
         financing product where such transaction is considered borrowed money
         indebtedness for tax purposes but is classified as an Operating Lease
         under GAAP.

                  "Taxes" shall have the meaning assigned to such term in
         Section 3.11(a).

                  "Trade Letter of Credit Fee" shall have the meaning assigned
         to such term in Section 3.5(b)(ii).

                  "Tranche A Obligations" all of the obligations of the Credit
         Parties to the Lenders and the Agent, whenever arising, with respect to
         the Tranche A Term Loans made pursuant to Section 2.3 of this Credit
         Agreement and the Tranche A Term Notes (including, but not limited to,
         any interest accruing after the occurrence of a Bankruptcy Event with
         respect to any Credit Party, regardless of whether such interest is an
         allowed claim under the Bankruptcy Code).

                                       26

<PAGE>   32

                  "Tranche A Term Lenders" means, at any time, Lenders holding
         any of the outstanding Tranche A Term Loans (or Participation Interests
         therein).

                  "Tranche A Term Loan" shall have the meaning assigned to such
         term in Section 2.3(a).

                  "Tranche A Term Loan Commitment" means, with respect to each
         Lender, the commitment of such Lender to make its portion of the
         Tranche A Term Loan in a principal amount equal to such Lender's
         Commitment Percentage of the Tranche A Term Loan Committed Amount.

                  "Tranche A Term Loan Committed Amount" shall have the meaning
         assigned to such term in Section 2.3(a).

                  "Tranche A Term Note" or "Tranche A Term Notes" means the
         promissory notes of the Borrower in favor of each Lender provided
         pursuant to Section 2.3(f) and evidencing the Tranche A Term Loans of
         such Lender, individually or collectively, as appropriate, as such
         promissory notes may be amended, modified, restated, supplemented,
         extended, renewed or replaced from time to time.

                  "Tranche B Term Loan" shall have the meaning assigned to such
         term in Section 2.4(a).

                  "Tranche B Term Loan Commitment" means, with respect to each
         Lender, the commitment of such Lender to make its portion of the
         Tranche B Term Loan in a principal amount equal to such Lender's
         Commitment Percentage of the Tranche B Term Loan Committed Amount.

                  "Tranche B Term Loan Committed Amount" shall have the meaning
         assigned to such term in Section 2.4(a).

                  "Tranche B Term Note" or "Tranche B Term Notes" means the
         promissory notes of the Borrower in favor of each Lender provided
         pursuant to Section 2.4(f) and evidencing the Tranche B Term Loans of
         such Lender, individually or collectively, as appropriate, as such
         promissory notes may be amended, modified, restated, supplemented,
         extended, renewed or replaced from time to time.

                  "Unused Fee" shall have the meaning assigned to such term in
         Section 3.5(a).

                  "Unused Fee Calculation Period" shall have the meaning
         assigned to such term in Section 3.5(a).

                  "Unused Revolving Committed Amount" means, for any period, the
         amount by which (a) the then applicable Revolving Committed Amount
         exceeds (b) the daily average sum for such period of (i) the
         outstanding aggregate principal amount of all Revolving Loans plus (ii)
         the outstanding aggregate principal amount of all LOC Obligations.

                                       27

<PAGE>   33

                  "US Warburg" means Warburg, Pincus Equity Partners, L.P., a
         Delaware limited partnership.

                  "Voting Stock" means, with respect to any Person, Capital
         Stock issued by such Person the holders of which are ordinarily, in the
         absence of contingencies, entitled to vote for the election of
         directors (or persons performing similar functions) of such Person,
         even though the right so to vote has been suspended by the happening of
         such a contingency.

                  "Warburg Guaranty" means that certain Guaranty and Investment
         Agreement as of the Initial Funding Date in the form of Exhibit 1.1C
         hereof to be executed in favor of the Agent by each of the WPEP
         Entities, as guarantors, as amended, modified, restated or supplemented
         from time to time.

                  "Wholly Owned Subsidiary" means any Person 100% of whose
         Voting Stock (other than director's qualifying shares) is at the time
         owned by the Borrower directly or indirectly through other Persons 100%
         of whose Voting Stock (other than director's qualifying shares) is at
         the time owned, directly or indirectly, by the Borrower.

                  "WPEP Entities" means US Warburg, Warburg, Pincus Netherlands
         Equity Partners I, C.V., a commanditaire vennootschap, Warburg, Pincus
         Netherlands Equity Partners II, C.V., a commanditaire vennootschap, and
         Warburg, Pincus Netherlands Equity Partners III, C.V., a commanditaire
         vennootschap.

                  "Year 2000 Problem" shall have the meaning assigned to such
         term in Section 6.27.

                  1.2      COMPUTATION OF TIME PERIODS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding."

                  1.3      ACCOUNTING TERMS.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis; provided, however, that calculations of the implied principal component
of all obligations under any Synthetic Lease or the implied interest component
of any rent paid under any Synthetic Lease shall be made by the Borrower in
accordance with accepted financial practice and consistent with the terms of
such Synthetic Lease. All calculations made for the purposes of determining
compliance with this Credit Agreement shall (except as otherwise expressly
provided herein) be made by application of GAAP applied on a basis consistent
with the most recent annual or quarterly financial statements delivered pursuant
to Section 7.1 (or, prior to the delivery of the first financial statements
pursuant to Section 7.1, consistent with the financial statements as at December
31, 1998), but, in any event, after elimination for minority interests;
provided, however, if (a) the Borrower shall object to determining such
compliance on such basis at the time of delivery

                                       28

<PAGE>   34

of such financial statements due to any change in GAAP or the rules promulgated
with respect thereto or (b) the Agent or the Required Lenders shall so object in
writing within 60 days after delivery of such financial statements, then such
calculations shall be made on a basis consistent with the most recent financial
statements delivered by the Credit Parties to the Lenders as to which no such
objection shall have been made.

         Notwithstanding the above, the parties hereto acknowledge and agree
that, for purposes of all calculations made under the financial covenants set
forth in Section 7.11 (including without limitation for purposes of the
definitions of "Applicable Percentage" and "Pro Forma Basis" set forth in
Section 1.1), (i) after consummation of any Asset Disposition occurring after
the Closing Date (A) income statement items (whether positive or negative) and
capital expenditures attributable to the Property disposed of shall be excluded
to the extent relating to any period occurring prior to the date of such
transaction and (B) Indebtedness which is retired shall be excluded and deemed
to have been retired as of the first day of the applicable period and (ii) after
consummation of any Acquisition occurring after the Closing Date (A) income
statement items (whether positive or negative) and capital expenditures
attributable to the Person or Property acquired shall, to the extent not
otherwise included in such income statement items for the Consolidated Parties
in accordance with GAAP or in accordance with any defined terms set forth in
Section 1.1, be included to the extent relating to any period applicable in such
calculations, (B) to the extent not retired in connection with such Acquisition,
Indebtedness of the Person or Property acquired shall be deemed to have been
incurred as of the first day of the applicable period and (C) pro forma
adjustments may be included to the extent that such adjustments would be
permitted under GAAP and give effect to items that are (x) directly attributable
to such transaction, (y) expected to have a continuing impact on the
Consolidated Parties and (z) factually supportable.

                                    SECTION 2

                                CREDIT FACILITIES

                  2.1      REVOLVING LOANS.

                  (a) Revolving Commitment. Subject to the terms and conditions
         hereof and in reliance upon the representations and warranties set
         forth herein, each Lender severally agrees to make available to the
         Borrower such Lender's Commitment Percentage of revolving credit loans
         requested by the Borrower in Dollars ("Revolving Loans") from time to
         time from the Initial Funding Date until the Maturity Date, or such
         earlier date as the Revolving Commitments shall have been terminated as
         provided herein; provided, however, that the sum of the aggregate
         outstanding principal amount of Revolving Loans shall not exceed
         FIFTEEN MILLION DOLLARS ($15,000,000) (as such aggregate maximum amount
         may be reduced from time to time as provided in Section 3.4, the
         "Revolving Committed Amount"); provided, further, (A) with regard to
         each Lender individually, such Lender's outstanding Revolving Loans
         shall not exceed such Lender's Commitment Percentage of the Revolving
         Committed Amount, and (B) the sum of the aggregate outstanding
         principal amount of Revolving Loans plus LOC Obligations shall not
         exceed

                                       29

<PAGE>   35

         the Revolving Committed Amount. Revolving Loans may consist of Base
         Rate Loans or Eurodollar Loans, or a combination thereof, as the
         Borrower may request; provided, however, that no more than 5 Eurodollar
         Loans which are Revolving Loans shall be outstanding hereunder at any
         time (it being understood that, for purposes hereof, Eurodollar Loans
         with different Interest Periods shall be considered as separate
         Eurodollar Loans, even if they begin on the same date, although
         borrowings, extensions and conversions may, in accordance with the
         provisions hereof, be combined at the end of existing Interest Periods
         to constitute a new Eurodollar Loan with a single Interest Period).
         Revolving Loans hereunder may be repaid and reborrowed in accordance
         with the provisions hereof.

                  (b)      Revolving Loan Borrowings.

                           (i) Notice of Borrowing. The Borrower shall request a
                  Revolving Loan borrowing by written notice (or telephonic
                  notice promptly confirmed in writing) to the Agent not later
                  than 10:00 A.M. (Charlotte, North Carolina time) on the
                  Business Day of the requested borrowing in the case of Base
                  Rate Loans, and on the third Business Day prior to the date of
                  the requested borrowing in the case of Eurodollar Loans. Each
                  such request for borrowing shall be irrevocable and shall
                  specify (A) that a Revolving Loan is requested, (B) the date
                  of the requested borrowing (which shall be a Business Day),
                  (C) the aggregate principal amount to be borrowed, and (D)
                  whether the borrowing shall be comprised of Base Rate Loans,
                  Eurodollar Loans or a combination thereof, and if Eurodollar
                  Loans are requested, the Interest Period(s) therefor. If the
                  Borrower shall fail to specify in any such Notice of Borrowing
                  (I) an applicable Interest Period in the case of a Eurodollar
                  Loan, then such notice shall be deemed to be a request for an
                  Interest Period of one month, or (II) the type of Revolving
                  Loan requested, then such notice shall be deemed to be a
                  request for a Base Rate Loan hereunder. The Agent shall give
                  notice to each affected Lender promptly upon receipt of each
                  Notice of Borrowing pursuant to this Section 2.1(b)(i), the
                  contents thereof and each such Lender's share of any borrowing
                  to be made pursuant thereto.

                           (ii) Minimum Amounts. Each Eurodollar Loan or Base
                  Rate Loan that is a Revolving Loan shall be in a minimum
                  aggregate principal amount of $1,000,000 and integral
                  multiples of $100,000 in excess thereof (or the remaining
                  amount of the Revolving Committed Amount, if less).

                           (iii) Advances. Each Lender will make its Commitment
                  Percentage of each Revolving Loan borrowing available to the
                  Agent for the account of the Borrower as specified in Section
                  3.15(a), or in such other manner as the Agent may specify in
                  writing, by 1:00 P.M. (Charlotte, North Carolina time) on the
                  date specified in the applicable Notice of Borrowing in
                  Dollars and in funds immediately available to the Agent. Such
                  borrowing will then be made available to the Borrower by the
                  Agent by crediting the account of the Borrower on the books of
                  such office with the aggregate of the amounts made available
                  to the Agent by the Lenders and in like funds as received by
                  the Agent.

                                       30

<PAGE>   36

                  (c) Repayment. The principal amount of all Revolving Loans
         shall be due and payable in full on the Maturity Date, unless
         accelerated sooner pursuant to Section 9.2.

                  (d)      Interest.  Subject to the provisions of Section 3.1,

                           (i) Base Rate Loans. During such periods as Revolving
                  Loans shall be comprised in whole or in part of Base Rate
                  Loans, such Base Rate Loans shall bear interest at a per annum
                  rate equal to the Adjusted Base Rate.

                           (ii) Eurodollar Loans. During such periods as
                  Revolving Loans shall be comprised in whole or in part of
                  Eurodollar Loans, such Eurodollar Loans shall bear interest at
                  a per annum rate equal to the Adjusted Eurodollar Rate.

         Interest on Revolving Loans shall be payable in arrears on each
         applicable Interest Payment Date (or at such other times as may be
         specified herein).

                  (e) Revolving Notes. The Revolving Loans made by each Lender
         shall be evidenced by a duly executed promissory note of the Borrower
         to such Lender in an original principal amount equal to such Lender's
         Commitment Percentage of the Revolving Committed Amount and in
         substantially the form of Exhibit 2.1(e).

                  2.2      LETTER OF CREDIT SUBFACILITY.

                  (a) Issuance. Subject to the terms and conditions hereof and
         in reliance upon the representations and warranties set forth herein,
         the Issuing Lender agrees to issue, and each Lender severally agrees to
         participate in the issuance by the Issuing Lender of, standby and trade
         Letters of Credit in Dollars from time to time from the Initial Funding
         Date until the date thirty (30) days prior to the Maturity Date as the
         Borrower may request, in a form reasonably acceptable to the Issuing
         Lender; provided, however, that (i) the LOC Obligations outstanding
         shall not at any time exceed FIVE MILLION DOLLARS ($5,000,000) (the
         "LOC Committed Amount") and (ii) the sum of the aggregate outstanding
         principal amount of Revolving Loans plus LOC Obligations shall not at
         any time exceed the Revolving Committed Amount. No Letter of Credit
         shall (x) have an original expiry date more than one year from the date
         of issuance (provided that any such Letter of Credit may contain
         customary "evergreen" provisions pursuant to which the expiry date is
         automatically extended by a specific time period unless the Issuing
         Lender gives notice to the beneficiary of such Letter of Credit at
         least a specified time period prior to the expiry date then in effect)
         or (y) as originally issued or as extended, have an expiry date
         extending beyond the date thirty (30) days prior to the Maturity Date.
         Each Letter of Credit shall comply with the related LOC Documents. The
         issuance and expiry dates of each Letter of Credit shall be a Business
         Day.

                  (b) Notice and Reports. The request for the issuance of a
         Letter of Credit shall be submitted by the Borrower to the Issuing
         Lender at least three (3) Business Days prior to the requested date of
         issuance. The Issuing Lender will, at least quarterly and more
         frequently upon request, disseminate to each of the Lenders a detailed
         report specifying the

                                       31

<PAGE>   37

         Letters of Credit which are then issued and outstanding and any
         activity with respect thereto which may have occurred since the date of
         the prior report, and including therein, among other things, the
         beneficiary, the face amount and the expiry date, as well as any
         payment or expirations which may have occurred.

                  (c) Participation. Each Lender, upon issuance of a Letter of
         Credit, shall be deemed to have purchased without recourse a
         Participation Interest from the Issuing Lender in such Letter of Credit
         and the obligations arising thereunder and any collateral relating
         thereto, in each case in an amount equal to its pro rata share of the
         obligations under such Letter of Credit (based on the respective
         Commitment Percentages of the Lenders) and shall absolutely,
         unconditionally and irrevocably assume and be obligated to pay to the
         Issuing Lender and discharge when due, its pro rata share of the
         obligations arising under such Letter of Credit. Without limiting the
         scope and nature of each Lender's Participation Interest in any Letter
         of Credit, to the extent that the Issuing Lender has not been
         reimbursed as required hereunder or under any such Letter of Credit,
         each such Lender shall pay to the Issuing Lender its pro rata share of
         such unreimbursed drawing in same day funds on the day of notification
         by the Issuing Lender of an unreimbursed drawing pursuant to the
         provisions of subsection (d) below. The obligation of each Lender to so
         reimburse the Issuing Lender shall be absolute and unconditional and
         shall not be affected by the occurrence of a Default, an Event of
         Default or any other occurrence or event. Any such reimbursement shall
         not relieve or otherwise impair the obligation of the Borrower to
         reimburse the Issuing Lender under any Letter of Credit, together with
         interest as hereinafter provided.

                  (d) Reimbursement. In the event of any drawing under any
         Letter of Credit, the Issuing Lender will promptly notify the Borrower.
         Unless the Borrower shall immediately notify the Issuing Lender that
         the Borrower intends to otherwise reimburse the Issuing Lender for such
         drawing, the Borrower shall be deemed to have requested that the
         Lenders make a Revolving Loan in the amount of the drawing as provided
         in subsection (e) below on the related Letter of Credit, the proceeds
         of which will be used to satisfy the related reimbursement obligations.
         The Borrower promises to reimburse the Issuing Lender on the day of
         drawing under any Letter of Credit (either with the proceeds of a
         Revolving Loan obtained hereunder or otherwise) in same day funds. If
         the Borrower shall fail to reimburse the Issuing Lender as provided
         hereinabove, the unreimbursed amount of such drawing shall bear
         interest at a per annum rate equal to the Adjusted Base Rate plus 2%.
         The Borrower's reimbursement obligations hereunder shall be absolute
         and unconditional under all circumstances irrespective of (but without
         waiver of) any rights of setoff, counterclaim or defense to payment
         that the applicable account party or the Borrower may claim or have
         against the Issuing Lender, the Agent, the Lenders, the beneficiary of
         the Letter of Credit drawn upon or any other Person, including without
         limitation any defense based on any failure of the applicable account
         party or the Borrower or any other Credit Party to receive
         consideration or the legality, validity, regularity or unenforceability
         of the Letter of Credit. The Issuing Lender will promptly notify the
         other Lenders of the amount of any unreimbursed drawing and each Lender
         shall promptly pay to the Agent for the account of the Issuing Lender
         in Dollars and in immediately available funds, the amount of such
         Lender's pro rata share of such unreimbursed drawing. Such payment
         shall be made on the

                                       32

<PAGE>   38

         day such notice is received by such Lender from the Issuing Lender if
         such notice is received at or before 2:00 P.M. (Charlotte, North
         Carolina time), and otherwise such payment shall be made at or before
         12:00 Noon (Charlotte, North Carolina time) on the Business Day next
         succeeding the day such notice is received. If such Lender does not pay
         such amount to the Issuing Lender in full upon such request, such
         Lender shall, on demand, pay to the Agent for the account of the
         Issuing Lender interest on the unpaid amount during the period from the
         date of such drawing until such Lender pays such amount to the Issuing
         Lender in full at a rate per annum equal to, if paid within two (2)
         Business Days of the date that such Lender is required to make payments
         of such amount pursuant to the preceding sentence, the Federal Funds
         Rate and thereafter at a rate equal to the Base Rate. Each Lender's
         obligation to make such payment to the Issuing Lender, and the right of
         the Issuing Lender to receive the same, shall be absolute and
         unconditional, shall not be affected by any circumstance whatsoever and
         without regard to the termination of this Credit Agreement or the
         Commitments hereunder, the existence of a Default or Event of Default
         or the acceleration of the obligations of the Borrower hereunder and
         shall be made without any offset, abatement, withholding or reduction
         whatsoever. Simultaneously with the making of each such payment by a
         Lender to the Issuing Lender, such Lender shall, automatically and
         without any further action on the part of the Issuing Lender or such
         Lender, acquire a Participation Interest in an amount equal to such
         payment (excluding the portion of such payment constituting interest
         owing to the Issuing Lender) in the related unreimbursed drawing
         portion of the LOC Obligation and in the interest thereon and in the
         related LOC Documents, and shall have a claim against the Borrower with
         respect thereto.

                  (e) Repayment with Revolving Loans. On any day on which the
         Borrower shall have requested, or been deemed to have requested, a
         Revolving Loan advance to reimburse a drawing under a Letter of Credit,
         the Agent shall give notice to the Lenders that a Revolving Loan has
         been requested or deemed requested by the Borrower to be made in
         connection with a drawing under a Letter of Credit, in which case a
         Revolving Loan advance comprised of Base Rate Loans (or Eurodollar
         Loans to the extent the Borrower has complied with the procedures of
         Section 2.1(b)(i) with respect thereto) shall be immediately made to
         the Borrower by all Lenders (notwithstanding any termination of the
         Commitments pursuant to Section 9.2) pro rata based on the respective
         Commitment Percentages of the Lenders (determined before giving effect
         to any termination of the Commitments pursuant to Section 9.2) and the
         proceeds thereof shall be paid directly to the Issuing Lender for
         application to the respective LOC Obligations. Each such Lender hereby
         irrevocably agrees to make its pro rata share of each such Revolving
         Loan immediately upon any such request or deemed request in the amount,
         in the manner and on the date specified in the preceding sentence
         notwithstanding (i) the amount of such borrowing may not comply with
         the minimum amount for advances of Revolving Loans otherwise required
         hereunder, (ii) whether any conditions specified in Section 5.3 are
         then satisfied, (iii) whether a Default or an Event of Default then
         exists, (iv) failure for any such request or deemed request for
         Revolving Loan to be made by the time otherwise required hereunder, (v)
         whether the date of such borrowing is a date on which Revolving Loans
         are otherwise permitted to be made hereunder or (vi) any termination of
         the Commitments relating thereto immediately prior to or
         contemporaneously with such borrowing. In the event that any Revolving
         Loan cannot for any reason be made on the date otherwise required above
         (including, without limitation,

                                       33

<PAGE>   39

         as a result of the commencement of a proceeding under the Bankruptcy
         Code with respect to the Borrower or any other Credit Party), then each
         such Lender hereby agrees that it shall forthwith purchase (as of the
         date such borrowing would otherwise have occurred, but adjusted for any
         payments received from the Borrower on or after such date and prior to
         such purchase) from the Issuing Lender such Participation Interests in
         the outstanding LOC Obligations as shall be necessary to cause each
         such Lender to share in such LOC Obligations ratably (based upon the
         respective Commitment Percentages of the Lenders (determined before
         giving effect to any termination of the Commitments pursuant to Section
         9.2)), provided that at the time any purchase of Participation
         Interests pursuant to this sentence is actually made, the purchasing
         Lender shall be required to pay to the Issuing Lender, to the extent
         not paid to the Issuing Lender by the Borrower in accordance with the
         terms of subsection (d) above, interest on the principal amount of
         Participation Interests purchased for each day from and including the
         day upon which such borrowing would otherwise have occurred to but
         excluding the date of payment for such Participation Interests, at the
         rate equal to, if paid within two (2) Business Days of the date of the
         Revolving Loan advance, the Federal Funds Rate, and thereafter at a
         rate equal to the Base Rate.

                  (f) Designation of Consolidated Parties as Account Parties.
         Notwithstanding anything to the contrary set forth in this Credit
         Agreement, including without limitation Section 2.2(a), a Letter of
         Credit issued hereunder may contain a statement to the effect that such
         Letter of Credit is issued for the account of any Subsidiary of the
         Borrower, provided that notwithstanding such statement, the Borrower
         shall be the actual account party for all purposes of this Credit
         Agreement for such Letter of Credit and such statement shall not affect
         the Borrower's reimbursement obligations hereunder with respect to such
         Letter of Credit.

                  (g) Renewal, Extension. The renewal or extension of any Letter
         of Credit shall, for purposes hereof, be treated in all respects the
         same as the issuance of a new Letter of Credit hereunder.

                  (h) Uniform Customs and Practices. The Issuing Lender may have
         the Letters of Credit be subject to The Uniform Customs and Practice
         for Documentary Credits (the "UCP") or the International Standby
         Practices 1998 (the "ISP98"), in either case as published as of the
         date of issue by the International Chamber of Commerce, in which case
         the UCP or the ISP98, as applicable, may be incorporated therein and
         deemed in all respects to be a part thereof.

                  (i) Indemnification; Nature of Issuing Lender's Duties.

                           (i) In addition to its other obligations under this
                  Section 2.2, the Borrower hereby agrees to pay, and protect,
                  indemnify and save each Lender harmless from and against, any
                  and all claims, demands, liabilities, damages, losses, costs,
                  charges and expenses (including reasonable attorneys' fees)
                  that such Lender may incur or be subject to as a consequence,
                  direct or indirect, of (A) the issuance of any Letter of
                  Credit or (B) the failure of such Lender to honor a drawing
                  under a

                                       34

<PAGE>   40

                  Letter of Credit as a result of any act or omission, whether
                  rightful or wrongful, of any present or future de jure or de
                  facto government or Governmental Authority (all such acts or
                  omissions, herein called "Government Acts").

                           (ii) As between the Borrower and the Lenders
                  (including the Issuing Lender), the Borrower shall assume all
                  risks of the acts, omissions or misuse of any Letter of Credit
                  by the beneficiary thereof. No Lender (including the Issuing
                  Lender) shall be responsible: (A) for the form, validity,
                  sufficiency, accuracy, genuineness or legal effect of any
                  document submitted by any party in connection with the
                  application for and issuance of any Letter of Credit, even if
                  it should in fact prove to be in any or all respects invalid,
                  insufficient, inaccurate, fraudulent or forged; (B) for the
                  validity or sufficiency of any instrument transferring or
                  assigning or purporting to transfer or assign any Letter of
                  Credit or the rights or benefits thereunder or proceeds
                  thereof, in whole or in part, that may prove to be invalid or
                  ineffective for any reason; (C) for errors, omissions,
                  interruptions or delays in transmission or delivery of any
                  messages, by mail, cable, telegraph, telex or otherwise,
                  whether or not they be in cipher; (D) for any loss or delay in
                  the transmission or otherwise of any document required in
                  order to make a drawing under a Letter of Credit or of the
                  proceeds thereof; and (E) for any consequences arising from
                  causes beyond the control of such Lender, including, without
                  limitation, any Government Acts. None of the above shall
                  affect, impair, or prevent the vesting of the Issuing Lender's
                  rights or powers hereunder.

                           (iii) In furtherance and extension and not in
                  limitation of the specific provisions hereinabove set forth,
                  any action taken or omitted by any Lender (including the
                  Issuing Lender), under or in connection with any Letter of
                  Credit or the related certificates, if taken or omitted in
                  good faith, shall not put such Lender under any resulting
                  liability to the Borrower or any other Credit Party. It is the
                  intention of the parties that this Credit Agreement shall be
                  construed and applied to protect and indemnify each Lender
                  (including the Issuing Lender) against any and all risks
                  involved in the issuance of the Letters of Credit, all of
                  which risks are hereby assumed by the Borrower (on behalf of
                  itself and each of the other Credit Parties), including,
                  without limitation, any and all Government Acts. No Lender
                  (including the Issuing Lender) shall, in any way, be liable
                  for any failure by such Lender or anyone else to pay any
                  drawing under any Letter of Credit as a result of any
                  Government Acts or any other cause beyond the control of such
                  Lender.

                           (iv) Nothing in this subsection (i) is intended to
                  limit the reimbursement obligations of the Borrower contained
                  in subsection (d) above. The obligations of the Borrower under
                  this subsection (i) shall survive the termination of this
                  Credit Agreement. No act or omission of any current or prior
                  beneficiary of a Letter of Credit shall in any way affect or
                  impair the rights of the Lenders (including the Issuing
                  Lender) to enforce any right, power or benefit under this
                  Credit Agreement.

                           (v) Notwithstanding anything to the contrary
                  contained in this subsection (i), the Borrower shall have no
                  obligation to indemnify any Lender

                                       35

<PAGE>   41

                  (including the Issuing Lender) in respect of any liability
                  incurred by such Lender (A) arising solely out of the gross
                  negligence or willful misconduct of such Lender, as determined
                  by a court of competent jurisdiction, or (B) caused by such
                  Lender's failure to pay under any Letter of Credit after
                  presentation to it of a request strictly complying with the
                  terms and conditions of such Letter of Credit, as determined
                  by a court of competent jurisdiction, unless such payment is
                  prohibited by any law, regulation, court order or decree.
                  Nothing in this Credit Agreement shall relieve the Issuing
                  Lender of any liability to the Borrower in respect of any
                  action taken by the Issuing Lender which action constitutes
                  gross negligence or willful misconduct of the Issuing Lender
                  or a violation of the UCP, ISP98 or Uniform Commercial Code
                  (as applicable), as determined by a court of competent
                  jurisdiction.

                  (j) Responsibility of Issuing Lender. It is expressly
         understood and agreed that the obligations of the Issuing Lender
         hereunder to the Lenders are only those expressly set forth in this
         Credit Agreement and that the Issuing Lender shall be entitled to
         assume that the conditions precedent set forth in Section 5.3 have been
         satisfied unless it shall have acquired actual knowledge that any such
         condition precedent has not been satisfied; provided, however, that
         nothing set forth in this Section 2.2 shall be deemed to prejudice the
         right of any Lender to recover from the Issuing Lender any amounts made
         available by such Lender to the Issuing Lender pursuant to this Section
         2.2 in the event that it is determined by a court of competent
         jurisdiction that the payment with respect to a Letter of Credit
         constituted gross negligence or willful misconduct on the part of the
         Issuing Lender.

                  (k) Conflict with LOC Documents. In the event of any conflict
         between this Credit Agreement and any LOC Document (including any
         letter of credit application), this Credit Agreement shall control.

                  2.3 TRANCHE A TERM LOAN.

                  (a) Tranche A Term Commitment. Subject to the terms and
         conditions hereof and in reliance upon the representations and
         warranties set forth herein each Lender severally agrees to make
         available to the Borrower on the Initial Funding Date such Lender's
         Commitment Percentage of a term loan in Dollars (the "Tranche A Term
         Loan") in the aggregate principal amount of SIXTY-FIVE MILLION DOLLARS
         ($65,000,000) (the "Tranche A Term Loan Committed Amount"). The Tranche
         A Term Loan may consist of Base Rate Loans or Eurodollar Loans, or a
         combination thereof, as the Borrower may request; provided, however,
         that no more than 5 Eurodollar Loans which are Tranche A Term Loans
         shall be outstanding hereunder at any time (it being understood that,
         for purposes hereof, Eurodollar Loans with different Interest Periods
         shall be considered as separate Eurodollar Loans, even if they begin on
         the same date, although borrowings, extensions and conversions may, in
         accordance with the provisions hereof, be combined at the end of
         existing Interest Periods to constitute a new Eurodollar Loan with a
         single Interest Period). Amounts repaid on the Tranche A Term Loan may
         not be reborrowed.

                                       36

<PAGE>   42
                  (b) Borrowing Procedures. The Borrower shall submit an
         appropriate Notice of Borrowing to the Agent not later than 11:00 A.M.
         (Charlotte, North Carolina time) on the Initial Funding Date, with
         respect to the portion of the Tranche A Term Loan initially consisting
         of a Base Rate Loan, or on the third Business Day prior to the Initial
         Funding Date, with respect to the portion of the Tranche A Term Loan
         initially consisting of one or more Eurodollar Loans. Such Notice of
         Borrowing shall be irrevocable and shall specify (i) that the funding
         of a Tranche A Term Loan is requested and (ii) whether the funding of
         the Tranche A Term Loan shall be comprised of Base Rate Loans,
         Eurodollar Loans or a combination thereof, and if Eurodollar Loans are
         requested, the Interest Period(s) therefor. If the Borrower shall fail
         to deliver such Notice of Borrowing to the Agent by 11:00 A.M.
         (Charlotte, North Carolina time) on the third Business Day prior to the
         Initial Funding Date, then the full amount of the Tranche A Term Loan
         shall be disbursed on the Initial Funding Date as a Base Rate Loan.
         Each Lender shall make its Commitment Percentage of the Tranche A Term
         Loan available to the Agent for the account of the Borrower at the
         office of the Agent specified in Schedule 2.1(a), or at such other
         office as the Agent may designate in writing, by 1:00 P.M. (Charlotte,
         North Carolina time) on the Initial Funding Date in Dollars and in
         funds immediately available to the Agent.

                  (c) Minimum Amounts. Each Eurodollar Loan or Base Rate Loan
         that is part of the Tranche A Term Loan shall be in an aggregate
         principal amount that is not less than $1,000,000 and integral
         multiples of $25,000 (or the then remaining principal balance of the
         Tranche A Term Loan, if less).

                  (d) Repayment of Tranche A Term Loan. The principal amount of
         the Tranche A Term Loan shall be repaid in twenty-four (24) consecutive
         quarterly installments as follows unless accelerated sooner pursuant to
         Section 9.2:

<TABLE>
<CAPTION>
            ================================ ==============================
                                                     TRANCHE A TERM
                        PRINCIPAL                    LOAN PRINCIPAL
                       AMORTIZATION                   AMORTIZATION
                       PAYMENT DATES                    PAYMENT
            ================================ ==============================
<S>                                          <C>
                      June 30, 2000,
                    September 30, 2000,
                   December 31,2000 and               $2,000,000
                      March 31, 2001
            ================================ ==============================
                      June 30, 2001,
                    September 30, 2001,
                   December 31,2001 and
                      March 31, 2002                  $2,000,000
            ================================ ==============================
                      June 30, 2002,
                    September 30, 2002,
                   December 31,2002 and
                      March 31, 2003                  $2,500,000

</TABLE>

                                       37

<PAGE>   43

<TABLE>
<S>                                          <C>
            ================================ ==============================
                      June 30, 2003,
                    September 30, 2003,
                   December 31,2003 and
                      March 31, 2004                  $3,000,000
            ================================ ==============================
                      June 30, 2004,
                   September 30, 2004,
                   December 31,2004 and
                     March 31, 2005                   $3,375,000
            ================================ ==============================
                      June 30, 2005,
                    September 30, 2005,
                   December 31,2005 and
                      Maturity Date                   $3,375,000
            ================================ ==============================
</TABLE>

                  (e)  Interest. Subject to the provisions of Section 3.1, the
         Tranche A Term Loan shall bear interest at a per annum rate equal to:

                       (i) Base Rate Loans. During such periods as the Tranche A
                  Term Loan shall be comprised in whole or in part of Base Rate
                  Loans, such Base Rate Loans shall bear interest at a per annum
                  rate equal to the Adjusted Base Rate.

                       (ii) Eurodollar Loans. During such periods as the Tranche
                  A Term Loan shall be comprised in whole or in part of
                  Eurodollar Loans, such Eurodollar Loans shall bear interest at
                  a per annum rate equal to the Adjusted Eurodollar Rate.

         Interest on the Tranche A Term Loan shall be payable in arrears on each
         applicable Interest Payment Date (or at such other times as may be
         specified herein).

                  (f)  Tranche A Term Notes. The portion of the Tranche A Term
         Loan made by each Lender shall be evidenced by a duly executed
         promissory note of the Borrower to such Lender in an original principal
         amount equal to such Lender's Commitment Percentage of the Tranche A
         Term Loan and substantially in the form of Exhibit 2.3(f).

                  2.4  TRANCHE B TERM LOAN.

                  (a)  Tranche B Term Commitment. Subject to the terms and
         conditions hereof and in reliance upon the representations and
         warranties set forth herein, each Lender severally agrees to make
         available to the Borrower on the Initial Funding Date such Lender's
         Commitment Percentage of a term loan in Dollars (the "Tranche B Term
         Loan") in the aggregate principal amount of THIRTY-FIVE MILLION DOLLARS
         ($35,000,000) (the "Tranche B Term Loan Committed Amount"). The Tranche
         B Term Loan may consist of Base Rate Loans or Eurodollar Loans, or a
         combination thereof, as the Borrower may request; provided, however,
         that no more than 5 Eurodollar Loans which are Tranche B Term Loans
         shall be outstanding hereunder at any time (it being understood that,
         for purposes hereof, Eurodollar Loans with different Interest Periods
         shall be considered as separate Eurodollar Loans, even if they begin on
         the same date, although borrowings,

                                       38

<PAGE>   44

         extensions and conversions may, in accordance with the provisions
         hereof, be combined at the end of existing Interest Periods to
         constitute a new Eurodollar Loan with a single Interest Period).
         Amounts repaid on the Tranche B Term Loan may not be reborrowed.

                  (b) Borrowing Procedures. The Borrower shall submit an
         appropriate Notice of Borrowing to the Agent not later than 11:00 A.M.
         (Charlotte, North Carolina time) on the Initial Funding Date, with
         respect to the portion of the Tranche B Term Loan initially consisting
         of a Base Rate Loan, or on the third Business Day prior to the Initial
         Funding Date, with respect to the portion of the Tranche B Term Loan
         initially consisting of one or more Eurodollar Loans. Such Notice of
         Borrowing shall be irrevocable and shall specify (i) that the funding
         of a Tranche B Term Loan is requested and (ii) whether the funding of
         the Tranche B Term Loan shall be comprised of Base Rate Loans,
         Eurodollar Loans or a combination thereof, and if Eurodollar Loans are
         requested, the Interest Period(s) therefor. If the Borrower shall fail
         to deliver such Notice of Borrowing to the Agent by 11:00 A.M.
         (Charlotte, North Carolina time) on the third Business Day prior to the
         Initial Funding Date, then the full amount of the Tranche B Term Loan
         shall be disbursed on the Initial Funding Date as a Base Rate Loan.
         Each Lender shall make its Commitment Percentage of the Tranche B Term
         Loan available to the Agent for the account of the Borrower at the
         office of the Agent specified in Schedule 2.1(a), or at such other
         office as the Agent may designate in writing, by 1:00 P.M. (Charlotte,
         North Carolina time) on the Initial Funding Date in Dollars and in
         funds immediately available to the Agent.

                  (c) Minimum Amounts. Each Eurodollar Loan or Base Rate Loan
         that is part of the Tranche B Term Loan shall be in an aggregate
         principal amount that is not less than $1,000,000 and integral
         multiples of $25,000 (or the then remaining principal balance of the
         Tranche B Term Loan, if less).

                  (d) Repayment of Tranche B Term Loan. The principal amount of
         the Tranche B Term Loan shall be repaid in four (4) consecutive
         quarterly installments as follows unless accelerated sooner pursuant to
         Section 9.2:

<TABLE>
<CAPTION>
              ================================ ==============================
                                                   TRANCHE B TERM LOAN
               PRINCIPAL AMORTIZATION PAYMENT      PRINCIPAL AMORTIZATION
                           DATES                          PAYMENT
              ================================ ==============================
<S>                                            <C>
                June 30, 2005, September 30,
                 2005, December 31,2005 and
                        Maturity Date                    $8,750,000
              ================================ ==============================
</TABLE>

                  (e) Interest. Subject to the provisions of Section 3.1, the
         Tranche B Term Loan shall bear interest at a per annum rate equal to:

                                       39
<PAGE>   45

                       (i) Base Rate Loans. During such periods as the Tranche B
                  Term Loan shall be comprised in whole or in part of Base Rate
                  Loans, such Base Rate Loans shall bear interest at a per annum
                  rate equal to the Adjusted Base Rate.

                       (ii) Eurodollar Loans. During such periods as the Tranche
                  B Term Loan shall be comprised in whole or in part of
                  Eurodollar Loans, such Eurodollar Loans shall bear interest at
                  a per annum rate equal to the Adjusted Eurodollar Rate.

         Interest on the Tranche B Term Loan shall be payable in arrears on each
         applicable Interest Payment Date (or at such other times as may be
         specified herein).

                  (f)  Tranche B Term Notes. The portion of the Tranche B Term
         Loan made by each Lender shall be evidenced by a duly executed
         promissory note of the Borrower to such Lender in an original principal
         amount equal to such Lender's Commitment Percentage of the Tranche B
         Term Loan and substantially in the form of Exhibit 2.4(f).

                                    SECTION 3

                 OTHER PROVISIONS RELATING TO CREDIT FACILITIES

                 3.1   DEFAULT RATE.

         Upon the occurrence, and during the continuance, of an Event of
Default, (i) the principal of and, to the extent permitted by law, interest on
the Loans and any other amounts owing hereunder or under the other Credit
Documents shall bear interest, payable on demand, at a per annum rate 2% greater
than the rate which would otherwise be applicable (or if no rate is applicable,
whether in respect of interest, fees or other amounts, then the Adjusted Base
Rate plus 2%) and (ii) the Standby Letter of Credit Fee and the Trade Letter of
Credit shall accrue at a per annum rate 2% greater than the rate which would
otherwise be applicable.

                 3.2   EXTENSION AND CONVERSION.

         The Borrower shall have the option, on any Business Day, to extend
existing Loans into a subsequent permissible Interest Period or to convert Loans
into Loans of another interest rate type; provided, however, that (i) except as
provided in Section 3.8, Eurodollar Loans may be converted into Base Rate Loans
or extended as Eurodollar Loans for new Interest Periods only on the last day of
the Interest Period applicable thereto, (ii) Loans extended as, or converted
into, Eurodollar Loans shall be subject to the terms of the definition of
"Interest Period" set forth in Section 1.1 and shall be in such minimum amounts
as provided in, with respect to Revolving Loans, Section 2.1(b)(ii), with
respect to the Tranche A Term Loan, Section 2.3(c), or, with respect to the
Tranche B Term Loan, Section 2.4(c), (iii) no more than 5 Eurodollar Loans which
are Revolving Loans, 5 Eurodollar Loans which are Tranche A Term Loans and 5
Eurodollar Loans which are Tranche B Term Loans shall be outstanding hereunder
at any time (it being understood that, for purposes hereof, Eurodollar Loans
with different Interest Periods shall be considered as separate Eurodollar
Loans, even if they begin on the same date, although borrowings, extensions and
conversions may, in accordance with

                                       40

<PAGE>   46

the provisions hereof, be combined at the end of existing Interest Periods to
constitute a new Eurodollar Loan with a single Interest Period) and (iv) any
request for extension or conversion of a Eurodollar Loan which shall fail to
specify an Interest Period shall be deemed to be a request for an Interest
Period of one month. Each such extension or conversion shall be effected by the
Borrower by giving a Notice of Extension/Conversion (or telephonic notice
promptly confirmed in writing) to the office of the Agent specified in Schedule
2.1(a), or at such other office as the Agent may designate in writing, prior to
11:00 A.M. (Charlotte, North Carolina time) on the Business Day of, in the case
of the conversion of a Eurodollar Loan into a Base Rate Loan, and on the third
Business Day prior to, in the case of the extension of a Eurodollar Loan as, or
conversion of a Base Rate Loan into, a Eurodollar Loan, the date of the proposed
extension or conversion, specifying the date of the proposed extension or
conversion, the Loans to be so extended or converted, the types of Loans into
which such Loans are to be converted and, if appropriate, the applicable
Interest Periods with respect thereto. Each request for extension or conversion
shall be irrevocable and shall constitute a representation and warranty by the
Borrower of the matters specified in subsections (b), (c), (d) and (e) of
Section 5.3. In the event the Borrower fails to request extension or conversion
of any Eurodollar Loan in accordance with this Section 3.2, or any such
conversion or extension is not permitted or required by this Section 3.2, then
such Eurodollar Loan shall be automatically converted into a Base Rate Loan at
the end of the Interest Period applicable thereto. The Agent shall give each
Lender notice as promptly as practicable of any such proposed extension or
conversion affecting any Loan.

                  3.3      PREPAYMENTS.

                  (a)      Voluntary Prepayments.

                                    (i) Revolving Loans and Tranche A Term Loan.
                           The Borrower shall have the right to prepay Revolving
                           Loans and the Tranche A Term Loan in whole or in part
                           from time to time; provided, however, that each
                           partial prepayment of Revolving Loans or the Tranche
                           A Term Loan shall be in an integral multiple of
                           $500,000 (or the then remaining principal balance of
                           the Revolving Loans or the Tranche A Term Loan, as
                           applicable, if less). Prepayments of the Tranche A
                           Term Loan shall be applied pro rata to remaining
                           Principal Amortization Payments. Subject to the
                           foregoing terms, amounts prepaid under this Section
                           3.3(a)(i) shall be applied as the Borrower may elect;
                           provided that if the Borrower shall fail to specify
                           with respect to any voluntary prepayment, such
                           voluntary prepayment shall be applied first to
                           Revolving Loans and then to the Tranche A Term Loan
                           (pro rata to remaining Principal Amortization
                           Payments), in each case first to Base Rate Loans and
                           then to Eurodollar Loans in direct order of Interest
                           Period maturities. All prepayments under this Section
                           3.3(a)(i) shall be subject to Section 3.12, but
                           otherwise without premium or penalty, and shall be
                           accompanied by interest on the principal amount
                           prepaid through the date of prepayment.

                                    (ii) Tranche B Term Loan. The Borrower shall
                           not have the right to prepay the Tranche B Term Loan
                           unless all amounts outstanding

                                       41

<PAGE>   47

                    hereunder in respect of the Tranche A Term Loan shall have
                    been paid in full and the Revolving Commitments shall have
                    been terminated; provided, however, that, so long as there
                    are no outstanding Revolving Loans or LOC Obligations at the
                    time of such prepayment, the Borrower shall have the right
                    to prepay the Tranche B Term Loan in whole or in part from
                    time to time with Eligible Prepayment Proceeds. Each partial
                    prepayment of the Tranche B Term Loan shall be in an
                    integral multiple of $500,000 (or the then remaining
                    principal balance of the Tranche B Term Loan, if less) and
                    shall be applied pro rata to remaining Principal
                    Amortization Payments. Subject to the foregoing terms,
                    amounts prepaid under this Section 3.3(a)(ii) shall be
                    applied as the Borrower may elect; provided that if the
                    Borrower shall fail to specify with respect to any voluntary
                    prepayment, such voluntary prepayment shall be applied first
                    to Base Rate Loans and then to Eurodollar Loans in direct
                    order of Interest Period maturities. All prepayments under
                    this Section 3.3(a)(ii) shall be subject to Section 3.12,
                    but otherwise without premium or penalty, and shall be
                    accompanied by interest on the principal amount prepaid
                    through the date of prepayment.

              (b)   Mandatory Prepayments.

                    (i) (A) Revolving Committed Amount. If at any time, the sum
                    of the aggregate outstanding principal amount of Revolving
                    Loans plus LOC Obligations shall exceed the Revolving
                    Committed Amount, the Borrower immediately shall prepay the
                    Revolving Loans and (after all Revolving Loans have been
                    repaid) cash collateralize the LOC Obligations, in an amount
                    sufficient to eliminate such excess.

                        (B) LOC Committed Amount. If at any time, the sum of the
                    aggregate principal amount of LOC Obligations shall exceed
                    the LOC Committed Amount, the Borrower immediately shall
                    cash collateralize the LOC Obligations in an amount
                    sufficient to eliminate such excess.

                    (ii) Excess Cash Flow. Within 90 days after the end of each
              fiscal year (commencing with the fiscal year ending December 31,
              2000), the Borrower shall prepay the Loans in an amount equal to
              75% (if the Leverage Ratio as of the end of such fiscal year is
              greater than 3.0 to 1.0), 50% (if the Leverage Ratio as of the end
              of such fiscal year is less than or equal to 3.0 to 1.0 but
              greater than 2.5 to 1.0) or 25% (if the Leverage Ratio as of the
              end of such fiscal year is less than or equal to 2.5 to 1.0 but
              greater than 2.0 to 1.0) of Excess Cash Flow for such prior fiscal
              year (such prepayment to be applied as set forth in clause (vi)
              below).

                    (iii) (A) Asset Dispositions. Immediately upon the
                    occurrence of any Asset Disposition Prepayment Event, the
                    Borrower shall prepay the Loans in an aggregate amount equal
                    to 100% of the Net Cash Proceeds of the related Asset
                    Disposition not applied (or caused to be applied) by the
                    Credit Parties during the related Application Period to make
                    Eligible Reinvestments as

                                       42

<PAGE>   48

                    contemplated by the terms of Section 8.5(g) (such prepayment
                    to be applied as set forth in clause (vi) below).

                          (B) Casualty and Condemnation Events. Immediately upon
                    the occurrence of any event requiring application of any
                    insurance proceeds to the prepayment of Loans (and cash
                    collateralization of LOC Obligations) pursuant to Section
                    7.6(b), the Borrower shall prepay the Loans in the amount
                    required by such Section 7.6(b) (such prepayment to be
                    applied as set forth in clause (vi) below).

                    (iv)  Debt Issuances. Immediately upon receipt by any
              Consolidated Party of proceeds from any Debt Issuance, the
              Borrower shall prepay the Loans in an aggregate amount equal to
              100% of the Net Cash Proceeds of such Debt Issuance (such
              prepayment to be applied as set forth in clause (vi) below).

                    (v)   Equity Issuances. Immediately upon receipt by a
              Consolidated Party of proceeds from any Equity Issuance other than
              an Excluded Equity Issuance, the Borrower shall prepay the Loans
              in an aggregate amount equal to 50% of the Net Cash Proceeds of
              such Equity Issuance (such prepayment to be applied as set forth
              in clause (vi) below).

                    (vi)  Application of Mandatory Prepayments. All amounts
              required to be paid pursuant to this Section 3.3(b) shall be
              applied as follows: (A) with respect to all amounts prepaid
              pursuant to Section 3.3(b)(i)(A), to Revolving Loans and (after
              all Revolving Loans have been repaid) to a cash collateral account
              in respect of LOC Obligations, (B) with respect to all amounts
              prepaid pursuant to Section 3.3(b)(i)(B), to a cash collateral
              account in respect of LOC Obligations and (C) with respect to all
              amounts prepaid pursuant to Section 3.3(b)(ii), (iii), (iv) and
              (v), to the Tranche A Term Loan (pro rata to remaining Principal
              Amortization Payments). Within the parameters of the applications
              set forth above, prepayments shall be applied first to Base Rate
              Loans and then to Eurodollar Loans unless otherwise directed by
              the Borrower. No prepayments under Sections 3.3(b)(ii) through (v)
              shall be required after the Tranche A Term Loan has been repaid in
              full. All prepayments under this Section 3.3(b) shall be subject
              to Section 3.12, but otherwise without premium or penalty, and
              shall be accompanied by interest on the principal amount prepaid
              through the date of prepayment.

                    (vii) Prepayment Account. If the Borrower is required to
              make a mandatory prepayment of Eurodollar Loans under this Section
              3.3(b), the Borrower shall have the right, in lieu of making such
              prepayment in full, to deposit an amount equal to such mandatory
              prepayment with the Agent in a cash collateral account maintained
              (pursuant to documentation reasonably satisfactory to the Agent)
              by and in the sole dominion and control of the Agent. Any amounts
              so deposited shall be held by the Agent as collateral for the
              prepayment of such Eurodollar Loans and shall be applied to the
              prepayment of the applicable Eurodollar Loans at the end of the
              current Interest Periods applicable thereto. At

                                       43

<PAGE>   49

                    the request of the Borrower, amounts so deposited shall be
                    invested by the Agent in Cash Equivalents maturing prior to
                    the date or dates on which it is anticipated that such
                    amounts will be applied to prepay such Eurodollar Loans; any
                    interest earned on such Cash Equivalents will be for the
                    account of the Borrower and the Borrower will deposit with
                    the Agent the amount of any loss on any such Cash
                    Equivalents to the extent necessary in order that the amount
                    of the prepayment to be made with the deposited amounts may
                    not be reduced.

                    3.4 TERMINATION AND REDUCTION OF COMMITMENTS.

                    (a) Voluntary Reductions. The Borrower may from time to time
         permanently reduce or terminate the Revolving Committed Amount in whole
         or in part (in minimum aggregate amounts of $1,000,000 or in integral
         multiples of $100,000 in excess thereof (or, if less, the full
         remaining amount of the then applicable Revolving Committed Amount))
         upon five Business Days' prior written notice to the Agent; provided,
         however, (i) prior to payment in full of all amounts outstanding
         hereunder in respect of the Tranche A Term Loan, no such termination or
         reduction shall be made which would cause the Revolving Committed
         Amount to be less than $10,000,000 and (ii) no such termination or
         reduction shall be made which would cause the sum of the aggregate
         outstanding principal amount of Revolving Loans plus LOC Obligations to
         exceed the Revolving Committed Amount, unless, concurrently with such
         termination or reduction, the Revolving Loans are repaid to the extent
         necessary to eliminate such excess. The Agent shall promptly notify
         each affected Lender of receipt by the Agent of any notice from the
         Borrower pursuant to this Section 3.4(a).

                    (b) Term Loan Commitments. The Tranche A Term Loan
         Commitment of each Lender shall automatically terminate at such time as
         such Lender shall have made available to the Borrower such Lender's
         share of the Tranche A Term Loan, and the Tranche B Term Loan
         Commitment of each Lender shall automatically terminate at such time as
         such Lender shall have made available to the Borrower such Lender's
         share of the Tranche B Term Loan.

                    (c) Mandatory Reductions. The Revolving Committed Amount
         automatically shall be permanently reduced from time to time in
         accordance with the terms of Section 3.3(b)(vi).

                    (d) Maturity Date. The Revolving Commitments of the Lenders
         and the LOC Commitment of the Issuing Lender shall automatically
         terminate on the Maturity Date.

                    (e) General. The Borrower shall pay to the Agent for the
         account of the Lenders in accordance with the terms of Section 3.5(a),
         on the date of each termination or reduction of the Revolving Committed
         Amount, the Unused Fee accrued through the date of such termination or
         reduction on the amount of the Revolving Committed Amount so terminated
         or reduced.

                                       44

<PAGE>   50

                    3.5  FEES.

                    (a)  Unused Fee. In consideration of the Revolving
         Commitments of the Lenders hereunder, the Borrower promises to pay to
         the Agent for the account of each Lender a fee (the "Unused Fee") on
         the Unused Revolving Committed Amount computed at a per annum rate for
         each day during the applicable Unused Fee Calculation Period
         (hereinafter defined) at a rate equal to the Applicable Percentage in
         effect from time to time. The Unused Fee shall commence to accrue on
         the Initial Funding Date and shall be due and payable in arrears on the
         last Business Day of each March, June, September and December (and on
         any date that the Revolving Committed Amount is reduced and on the
         Maturity Date) for the immediately preceding quarter (or portion
         thereof) (each such quarter or portion thereof for which the Unused Fee
         is payable hereunder being herein referred to as an "Unused Fee
         Calculation Period"), beginning with the first of such dates to occur
         after the Initial Funding Date.

                  (b)    Letter of Credit Fees.

                         (i)   Standby Letter of Credit Issuance Fee. In
                  consideration of the issuance of standby Letters of Credit
                  hereunder, the Borrower promises to pay to the Agent for the
                  account of each Lender a fee (the "Standby Letter of Credit
                  Fee") on such Lender's Commitment Percentage of the average
                  daily maximum amount available to be drawn under each such
                  standby Letter of Credit computed at a per annum rate for each
                  day from the date of issuance to the date of expiration equal
                  to the Applicable Percentage. The Standby Letter of Credit Fee
                  will be payable quarterly in arrears on the last Business Day
                  of each March, June, September and December for the
                  immediately preceding quarter (or a portion thereof).

                         (ii)  Trade Letter of Credit Drawing Fee. In
                  consideration of the issuance of trade Letters of Credit
                  hereunder, the Borrower promises to pay to the Agent for the
                  account of each Lender a fee (the "Trade Letter of Credit
                  Fee") on such Lender's Commitment Percentage of the average
                  daily maximum amount available to be drawn under each such
                  trade Letter of Credit computed at a per annum rate for each
                  day from the date of issuance to the date of expiration equal
                  to the Applicable Percentage. The Trade Letter of Credit Fee
                  will be payable quarterly in arrears on the last Business Day
                  of each March, June, September and December for the
                  immediately preceding quarter (or a portion thereof).

                         (iii) Issuing Lender Fees. In addition to the Standby
                  Letter of Credit Fee payable pursuant to clause (i) above and
                  the Trade Letter of Credit Fee payable pursuant to clause (ii)
                  above, the Borrower promises to pay to the Agent for the
                  account of the Issuing Lender without sharing by the other
                  Lenders (i) a letter of credit fronting fee of 0.125% on the
                  average daily maximum amount available to be drawn under each
                  Letter of Credit computed at a per annum rate for each day
                  from the date of issuance to the date of expiration (which
                  fronting fee shall be payable quarterly in arrears on the last
                  Business Day of each March, June, September and December for
                  the immediately preceding quarter (or a portion thereof)) and
                  (ii) the

                                       45

<PAGE>   51

                  customary charges from time to time of the Issuing Lender with
                  respect to the issuance, amendment, transfer, administration,
                  cancellation and conversion of, and drawings under, such
                  Letters of Credit.

                  (c) Agent's Fees. The Borrower promises to pay to the Agent,
         for its own account, for the account of the Issuing Lender and for the
         account of Banc of America Securities LLC, as applicable, the fees
         referred to in the Agent's Fee Letter; provided that no such fees shall
         be payable prior to the Initial Funding Date.

                  3.6 CAPITAL ADEQUACY.

         If any Lender has determined, after the date hereof, that the adoption
or the becoming effective of, or any change in, or any change by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof in the interpretation or administration
of, any applicable law, rule or regulation regarding capital adequacy, or
compliance by such Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender's capital or assets as a consequence of its commitments or
obligations hereunder to a level below that which such Lender could have
achieved but for such adoption, effectiveness, change or compliance (taking into
consideration such Lender's policies with respect to capital adequacy), then,
upon notice from such Lender to the Borrower, the Borrower shall be obligated to
pay to such Lender such additional amount or amounts as will compensate such
Lender for such reduction. Each determination by any such Lender of amounts
owing under this Section shall, absent manifest error, be conclusive and binding
on the parties hereto. No Lender shall be entitled to receive compensation
pursuant to this Section 3.6 for such amounts incurred more than 180 days prior
to delivery of a certificate requesting compensation and providing a reasonably
detailed explanation of the calculation thereof.

                  3.7 LIMITATION ON EURODOLLAR LOANS.

         If on or prior to the first day of any Interest Period for any
Eurodollar Loan the Agent determines (which determination shall be conclusive)
that by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for such
Interest Period, then the Agent shall give the Borrower prompt notice thereof,
and so long as such condition remains in effect, the Lenders shall be under no
obligation to make additional Eurodollar Loans, Continue Eurodollar Loans, or to
Convert Base Rate Loans into Eurodollar Loans and the Borrower shall, on the
last day(s) of the then current Interest Period(s) for the outstanding
Eurodollar Loans, either prepay such Eurodollar Loans or Convert such Eurodollar
Loans into Base Rate Loans in accordance with the terms of this Credit
Agreement.

                  3.8 ILLEGALITY.

         Notwithstanding any other provision of this Credit Agreement, in the
event that it becomes unlawful for any Lender or its Applicable Lending Office
to make, maintain, or fund Eurodollar Loans hereunder, then such Lender shall
promptly notify the Borrower thereof and such Lender's obligation to make or
Continue Eurodollar Loans and to Convert Base Rate Loans into Eurodollar

                                       46
<PAGE>   52

Loans shall be suspended until such time as such Lender may again make,
maintain, and fund Eurodollar Loans (in which case the provisions of Section
3.10 shall be applicable).

                  3.9 REQUIREMENTS OF LAW.

         If, after the date hereof, the adoption of any applicable law, rule, or
regulation, or any change in any applicable law, rule, or regulation, or any
change in the interpretation or administration thereof by any Governmental
Authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or its Applicable Lending
Office) with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank, or comparable agency:

                  (i) shall subject such Lender (or its Applicable Lending
         Office) to any tax, duty, or other charge with respect to any
         Eurodollar Loans, its Notes, or its obligation to make Eurodollar
         Loans, or change the basis of taxation of any amounts payable to such
         Lender (or its Applicable Lending Office) under this Credit Agreement
         or its Notes in respect of any Eurodollar Loans (other than taxes
         imposed on the overall net income of such Lender by the jurisdiction in
         which such Lender has its principal office or such Applicable Lending
         Office);

                  (ii)  shall impose, modify, or deem applicable any reserve,
         special deposit, assessment, or similar requirement (other than the
         Eurodollar Reserve Requirement utilized in the determination of the
         Adjusted Eurodollar Rate) relating to any extensions of credit or other
         assets of, or any deposits with or other liabilities or commitments of,
         such Lender (or its Applicable Lending Office), including the
         Commitment of such Lender hereunder; or

                  (iii) shall impose on such Lender (or its Applicable Lending
         Office) or the London interbank market any other condition affecting
         this Credit Agreement or its Notes or any of such extensions of credit
         or liabilities or commitments;

and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, Converting into, Continuing, or
maintaining any Eurodollar Loans or to reduce any sum received or receivable by
such Lender (or its Applicable Lending Office) under this Credit Agreement or
its Notes with respect to any Eurodollar Loans, then the Borrower shall pay to
such Lender on demand such amount or amounts as will compensate such Lender for
such increased cost or reduction. If any Lender requests compensation by the
Borrower under this Section 3.9, the Borrower may, by notice to such Lender
(with a copy to the Agent), suspend the obligation of such Lender to make or
Continue Eurodollar Loans, or to Convert Base Rate Loans into Eurodollar Loans,
until the event or condition giving rise to such request ceases to be in effect
(in which case the provisions of Section 3.10 shall be applicable); provided
that such suspension shall not affect the right of such Lender to receive the
compensation so requested. Each Lender shall promptly notify the Borrower and
the Agent of any event of which it has knowledge, occurring after the date
hereof, which will entitle such Lender to compensation pursuant to this Section
3.9 and will designate a different Applicable Lending Office if such designation
will avoid the need for, or reduce the amount of, such compensation and will
not, in the judgment of such Lender, be otherwise disadvantageous to it. Any
Lender claiming compensation under this Section 3.9 shall

                                       47

<PAGE>   53

furnish to the Borrower and the Agent a statement setting forth the additional
amount or amounts to be paid to it hereunder which shall be conclusive in the
absence of manifest error. In determining such amount, such Lender may use any
reasonable averaging and attribution methods.

                  3.10 TREATMENT OF AFFECTED LOANS.

         If the obligation of any Lender to make any Eurodollar Loan or to
Continue, or to Convert Base Rate Loans into, Eurodollar Loans shall be
suspended pursuant to Section 3.7, 3.8 or 3.9 hereof, such Lender's Eurodollar
Loans shall be automatically Converted into Base Rate Loans on the last day(s)
of the then current Interest Period(s) for such Eurodollar Loans (or, in the
case of a Conversion, on such earlier date as such Lender may specify to the
Borrower with a copy to the Agent) and, unless and until such Lender gives
notice as provided below that the circumstances specified in Section 3.7, 3.8 or
3.9 hereof that gave rise to such Conversion no longer exist:

                  (a)  to the extent that such Lender's Eurodollar Loans have
         been so Converted, all payments and prepayments of principal that would
         otherwise be applied to such Lender's Eurodollar Loans shall be applied
         instead to its Base Rate Loans; and

                  (b)  all Loans that would otherwise be made or Continued by
         such Lender as Eurodollar Loans shall be made or Continued instead as
         Base Rate Loans, and all Base Rate Loans of such Lender that would
         otherwise be Converted into Eurodollar Loans shall remain as Base Rate
         Loans.

If such Lender gives notice to the Borrower (with a copy to the Agent) that the
circumstances specified in Section 3.7, 3.8 or 3.9 hereof that gave rise to the
Conversion of such Lender's Eurodollar Loans pursuant to this Section 3.10 no
longer exist (which such Lender agrees to do promptly upon such circumstances
ceasing to exist) at a time when Eurodollar Loans made by other Lenders are
outstanding, such Lender's Base Rate Loans shall be automatically Converted, on
the first day(s) of the next succeeding Interest Period(s) for such outstanding
Eurodollar Loans, to the extent necessary so that, after giving effect thereto,
all Loans held by the Lenders holding Eurodollar Loans and by such Lender are
held pro rata (as to principal amounts, interest rate basis, and Interest
Periods) in accordance with their respective Commitments.

                  3.11 TAXES.

                  (a)  Any and all payments by any Credit Party to or for the
         account of any Lender or the Agent hereunder or under any other Credit
         Document shall be made free and clear of and without deduction for any
         and all present or future taxes, duties, levies, imposts, deductions,
         charges or withholdings, and all liabilities with respect thereto,
         excluding, in the case of each Lender and the Agent, taxes imposed on
         its income, and franchise taxes imposed on it, by the jurisdiction
         under the laws of which such Lender (or its Applicable Lending Office)
         or the Agent (as the case may be) is organized or any political
         subdivision thereof (all such non-excluded taxes, duties, levies,
         imposts, deductions, charges, withholdings, and liabilities being
         hereinafter referred to as "Taxes"). If any Credit Party shall be
         required by law to deduct any Taxes from or in respect of any sum
         payable under this Credit Agreement or any other Credit Document to any
         Lender or the Agent, (i) the sum

                                       48

<PAGE>   54

         payable shall be increased as necessary so that after making all
         required deductions (including deductions applicable to additional sums
         payable under this Section 3.11) such Lender or the Agent receives an
         amount equal to the sum it would have received had no such deductions
         been made, (ii) such Credit Party shall make such deductions, (iii)
         such Credit Party shall pay the full amount deducted to the relevant
         taxation authority or other authority in accordance with applicable
         law, and (iv) such Credit Party shall furnish to the Agent, at its
         address referred to in Section 11.1, the original or a certified copy
         of a receipt evidencing payment thereof.

                  (b) In addition, the Borrower agrees to pay any and all
         present or future stamp or documentary taxes and any other excise or
         property taxes or charges or similar levies which arise from any
         payment made under this Credit Agreement or any other Credit Document
         or from the execution or delivery of, or otherwise with respect to,
         this Credit Agreement or any other Credit Document (hereinafter
         referred to as "Other Taxes").

                  (c) The Borrower agrees to indemnify each Lender and the Agent
         for the full amount of Taxes and Other Taxes (including, without
         limitation, any Taxes or Other Taxes imposed or asserted by any
         jurisdiction on amounts payable under this Section 3.11) paid by such
         Lender or the Agent (as the case may be) and any liability (including
         penalties, interest, and expenses) arising therefrom or with respect
         thereto.

                  (d) Each Lender that is not a United States person under
         Section 7701(a)(30) of the Code, on or prior to the date of its
         execution and delivery of this Credit Agreement in the case of each
         Lender listed on the signature pages hereof and on or prior to the date
         on which it becomes a Lender in the case of each other Lender, and from
         time to time thereafter if requested in writing by the Borrower or the
         Agent (but only so long as such Lender remains lawfully able to do so),
         shall provide the Borrower and the Agent with (i) Internal Revenue
         Service Form W-8 BEN or W-8 ECI, as appropriate, or any successor form
         prescribed by the Internal Revenue Service, certifying that such Lender
         is entitled to benefits under an income tax treaty to which the United
         States is a party which reduces to zero the rate of withholding tax on
         payments of interest or certifying that the income receivable pursuant
         to this Credit Agreement is effectively connected with the conduct of a
         trade or business in the United States, (ii) Internal Revenue Service
         Form W-8 or W-9, as appropriate, or any successor form prescribed by
         the Internal Revenue Service, and/or (iii) any other form or
         certificate required by any taxing authority (including any certificate
         required by Sections 871(h) and 881(c) of the Internal Revenue Code),
         certifying that such Lender is entitled to an exemption from tax on
         payments pursuant to this Credit Agreement or any of the other Credit
         Documents.

                  (e) For any period with respect to which a Lender has failed
         to provide the Borrower and the Agent with the appropriate form
         pursuant to Section 3.11(d) (unless such failure is due to a change in
         treaty, law, or regulation occurring subsequent to the date on which a
         form originally was required to be provided), such Lender shall not be
         entitled to indemnification under Section 3.11(a) or 3.11(b) with
         respect to Taxes imposed by the United States; provided, however, that
         should a Lender, which is otherwise exempt from withholding tax, become
         subject to Taxes because of its failure to

                                       49

<PAGE>   55

         deliver a form required hereunder, the Borrower shall take such steps
         as such Lender shall reasonably request to assist such Lender to
         recover such Taxes.

                  (f) If any Credit Party is required to pay additional amounts
         to or for the account of any Lender pursuant to this Section 3.11, then
         such Lender will agree to use reasonable efforts to change the
         jurisdiction of its Applicable Lending Office so as to eliminate or
         reduce any such additional payment which may thereafter accrue if such
         change, in the judgment of such Lender, is not otherwise
         disadvantageous to such Lender.

                  (g) Within thirty (30) days after the date of any payment of
         Taxes, the applicable Credit Party shall furnish to the Agent the
         original or a certified copy of a receipt evidencing such payment.

                  (h) Without prejudice to the survival of any other agreement
         of the Credit Parties hereunder, the agreements and obligations of the
         Credit Parties contained in this Section 3.11 shall survive the
         repayment of the Loans, LOC Obligations and other obligations under the
         Credit Documents and the termination of the Commitments hereunder.

                  3.12 COMPENSATION.

         Upon the request of any Lender, the Borrower shall pay to such Lender
such amount or amounts as shall be sufficient (in the reasonable opinion of such
Lender) to compensate it for any loss, cost, or expense (excluding loss of
anticipated profits (including loss of Applicable Margin)) incurred by it as a
result of:

                  (a)  any payment, prepayment, or Conversion of a Eurodollar
         Loan for any reason (including, without limitation, (i) in connection
         with any assignment by Bank of America pursuant to Section 11.3(b) as
         part of the primary syndication of the Loans during the 180-day period
         immediately following the Initial Funding Date and (ii) the
         acceleration of the Loans pursuant to Section 9.2) on a date other than
         the last day of the Interest Period for such Loan; or

                  (b)  any failure by the Borrower for any reason (including,
         without limitation, the failure of any condition precedent specified in
         Section 5 to be satisfied) to borrow, Convert, Continue, or prepay a
         Eurodollar Loan on the date for such borrowing, Conversion,
         Continuation, or prepayment specified in the relevant notice of
         borrowing, prepayment, Continuation, or Conversion under this Credit
         Agreement.

With respect to Eurodollar Loans, such indemnification may include an amount
equal to the excess, if any, of (a) the amount of interest which would have
accrued on the amount so prepaid, or not so borrowed, Converted or Continued,
for the period from the date of such prepayment or of such failure to borrow,
Convert or Continue to the last day of the applicable Interest Period (or, in
the case of a failure to borrow, Convert or Continue, the Interest Period that
would have commenced on the date of such failure) in each case at the applicable
rate of interest for such Eurodollar Loans provided for herein (excluding,
however, the Applicable Percentage included therein, if any) over (b) the amount
of interest (as reasonably determined by such Lender) which would have accrued
to

                                       50

<PAGE>   56

such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank Eurodollar market. The covenants of
the Borrower set forth in this Section 3.12 shall survive the repayment of the
Loans, LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments hereunder.

                  3.13 PRO RATA TREATMENT.

         Except to the extent otherwise provided herein:

                  (a)  Loans. Each Loan, each payment or (subject to the terms
         of Section 3.3) prepayment of principal of any Loan or reimbursement
         obligations arising from drawings under Letters of Credit, each payment
         of interest on the Loans or reimbursement obligations arising from
         drawings under Letters of Credit, each payment of Unused Fees, each
         payment of the Standby Letter of Credit Fee, each payment of the Trade
         Letter of Credit Fee, each reduction of the Revolving Committed Amount
         and each conversion or extension of any Loan, shall be allocated pro
         rata among the Lenders in accordance with the respective principal
         amounts of their outstanding Loans of the applicable type and
         Participation Interests in Loans of the applicable type and Letters of
         Credit.

                  (b)  Advances. No Lender shall be responsible for the failure
         or delay by any other Lender in its obligation to make its ratable
         share of a borrowing hereunder; provided, however, that the failure of
         any Lender to fulfill its obligations hereunder shall not relieve any
         other Lender of its obligations hereunder. Unless the Agent shall have
         been notified by any Lender prior to the date of any requested
         borrowing that such Lender does not intend to make available to the
         Agent its ratable share of such borrowing to be made on such date, the
         Agent may assume that such Lender has made such amount available to the
         Agent on the date of such borrowing, and the Agent in reliance upon
         such assumption, may (in its sole discretion but without any obligation
         to do so) make available to the Borrower a corresponding amount. If
         such corresponding amount is not in fact made available to the Agent,
         the Agent shall be able to recover such corresponding amount from such
         Lender. If such Lender does not pay such corresponding amount forthwith
         upon the Agent's demand therefor, the Agent will promptly notify the
         Borrower, and the Borrower shall immediately pay such corresponding
         amount to the Agent. The Agent shall also be entitled to recover from
         the Lender or the Borrower, as the case may be, interest on such
         corresponding amount in respect of each day from the date such
         corresponding amount was made available by the Agent to the Borrower to
         the date such corresponding amount is recovered by the Agent at a per
         annum rate equal to (i) from the Borrower at the applicable rate for
         the applicable borrowing pursuant to the Notice of Borrowing and (ii)
         from a Lender at the Federal Funds Rate.

                  3.14 SHARING OF PAYMENTS.

         The Lenders agree among themselves that, in the event that any Lender
shall obtain payment in respect of any Loan, LOC Obligations or any other
obligation owing to such Lender under this Credit Agreement through the exercise
of a right of setoff, banker's lien or counterclaim, or pursuant to a secured
claim under Section 506 of Title 11 of the United States Code or other

                                       51

<PAGE>   57

security or interest arising from, or in lieu of, such secured claim, received
by such Lender under any applicable bankruptcy, insolvency or other similar law
or otherwise, or by any other means, in excess of its pro rata share of such
payment as provided for in this Credit Agreement, such Lender shall promptly
purchase from the other Lenders a Participation Interest in such Loans, LOC
Obligations and other obligations in such amounts, and make such other
adjustments from time to time, as shall be equitable to the end that all Lenders
share such payment in accordance with their respective ratable shares as
provided for in this Credit Agreement. The Lenders further agree among
themselves that if payment to a Lender obtained by such Lender through the
exercise of a right of setoff, banker's lien, counterclaim or other event as
aforesaid shall be rescinded or must otherwise be restored, each Lender which
shall have shared the benefit of such payment shall, by repurchase of a
Participation Interest theretofore sold, return its share of that benefit
(together with its share of any accrued interest payable with respect thereto)
to each Lender whose payment shall have been rescinded or otherwise restored.
The Borrower agrees that any Lender so purchasing such a Participation Interest
may, to the fullest extent permitted by law, exercise all rights of payment,
including setoff, banker's lien or counterclaim, with respect to such
Participation Interest as fully as if such Lender were a holder of such Loan,
LOC Obligations or other obligation in the amount of such Participation
Interest. Except as otherwise expressly provided in this Credit Agreement, if
any Lender shall fail to remit to the Agent or any other Lender an amount
payable by such Lender to the Agent or such other Lender pursuant to this Credit
Agreement on the date when such amount is due, such payments shall be made
together with interest thereon for each date from the date such amount is due
until the date such amount is paid to the Agent or such other Lender at a rate
per annum equal to the Federal Funds Rate. 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 3.14 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 under this Section 3.14 to share in
the benefits of any recovery on such secured claim.

                  3.15 PAYMENTS, COMPUTATIONS, ETC.

                  (a)  Generally. Except as otherwise specifically provided
         herein, all payments hereunder shall be made to the Agent in Dollars in
         immediately available funds, without setoff, deduction, counterclaim or
         withholding of any kind, at the Agent's office specified in Schedule
         2.1(a) not later than 2:00 P.M. (Charlotte, North Carolina time) on the
         date when due. Payments received after such time shall be deemed to
         have been received on the next succeeding Business Day. The Agent may
         (but shall not be obligated to) debit the amount of any such payment
         which is not made by such time to any ordinary deposit account of the
         Borrower or any other Credit Party maintained with the Agent (with
         notice to the Borrower or such other Credit Party). The Borrower shall,
         at the time it makes any payment under this Credit Agreement, specify
         to the Agent the Loans, LOC Obligations, Fees, interest or other
         amounts payable by the Borrower hereunder to which such payment is to
         be applied (and in the event that it fails so to specify, or if such
         application would be inconsistent with the terms hereof, the Agent
         shall distribute such payment to the Lenders in such manner as the
         Agent may determine to be appropriate in respect of obligations owing
         by the Borrower hereunder, subject to the terms of Section 3.13(a)).
         The Agent will distribute such payments to such Lenders, if any such
         payment is received prior to 2:00 P.M. (Charlotte, North Carolina time)
         on a Business Day in like funds as received prior to the end of such
         Business

                                       52

<PAGE>   58

         Day and otherwise the Agent will distribute such payment to such
         Lenders on the next succeeding Business Day. Whenever any payment
         hereunder shall be stated to be due on a day which is not a Business
         Day, the due date thereof shall be extended to the next succeeding
         Business Day (subject to accrual of interest and Fees for the period of
         such extension), except that in the case of Eurodollar Loans, if the
         extension would cause the payment to be made in the next following
         calendar month, then such payment shall instead be made on the next
         preceding Business Day. Except as expressly provided otherwise herein,
         all computations of interest and fees shall be made on the basis of
         actual number of days elapsed over a year of 360 days, except with
         respect to computation of interest on Base Rate Loans which shall be
         calculated based on a year of 365 or 366 days, as appropriate. Interest
         shall accrue from and include the date of borrowing, but exclude the
         date of payment.

                  (b)  Allocation of Payments After Event of Default.
         Notwithstanding any other provisions of this Credit Agreement to the
         contrary, after the occurrence and during the continuance of an Event
         of Default (but subject to the terms of Section 3.3(b)(vi)), all
         amounts collected or received by the Agent or any Lender on account of
         the Credit Party Obligations or any other amounts outstanding under any
         of the Credit Documents or in respect of the Collateral shall be paid
         over or delivered as follows:

                       FIRST, to the payment of all reasonable out-of-pocket
                  costs and expenses (including without limitation reasonable
                  attorneys' fees) of the Agent in connection with enforcing the
                  rights of the Lenders under the Credit Documents and any
                  protective advances made by the Agent with respect to the
                  Collateral under or pursuant to the terms of the Collateral
                  Documents;

                       SECOND, to payment of any fees owed to the Agent;

                       THIRD, to the payment of all of the Tranche A Obligations
                  consisting of accrued fees and interest;

                       FOURTH, to the payment of the outstanding principal
                  amount of the Tranche A Obligations;

                       FIFTH, to the payment of all of the other Credit Party
                  Obligations consisting of accrued fees and interest;

                       SIXTH, to the payment of the outstanding principal amount
                  of the other Credit Party Obligations (including the payment
                  or cash collateralization of the outstanding LOC Obligations);

                       SEVENTH, to the payment of all reasonable out-of-pocket
                  costs and expenses (including without limitation, reasonable
                  attorneys' fees) of each of the Lenders in connection with
                  enforcing its rights under the Credit Documents or otherwise
                  with respect to the Credit Party Obligations owing to such
                  Lender;

                                       53

<PAGE>   59

                           EIGHTH, to all other Credit Party Obligations and
                  other obligations which shall have become due and payable
                  under the Credit Documents or otherwise and not repaid
                  pursuant to clauses "FIRST" through "SEVENTH" above; and

                           NINTH, to the payment of the surplus, if any, to
                  whomever may be lawfully entitled to receive such surplus.

         In carrying out the foregoing, (i) amounts received shall be applied in
         the numerical order provided until exhausted prior to application to
         the next succeeding category; (ii) each of the Lenders shall receive an
         amount equal to its pro rata share (based on the proportion that the
         then outstanding Loans and LOC Obligations held by such Lender bears to
         the aggregate then outstanding Loans and LOC Obligations) of amounts
         available to be applied pursuant to clauses "THIRD", "FOURTH", "FIFTH",
         "SIXTH", "SEVENTH" and "EIGHTH" above; and (iii) to the extent that any
         amounts available for distribution pursuant to clause "SEVENTH" above
         are attributable to the issued but undrawn amount of outstanding
         Letters of Credit, such amounts shall be held by the Agent in a cash
         collateral account and applied (A) first, to reimburse the Issuing
         Lender from time to time for any drawings under such Letters of Credit
         and (B) then, following the expiration of all Letters of Credit, to all
         other obligations of the types described in clauses "SEVENTH" and
         "EIGHTH" above in the manner provided in this Section 3.15(b).

                  3.16 EVIDENCE OF DEBT.

                  (a)  Each Lender shall maintain an account or accounts
         evidencing each Loan made by such Lender to the Borrower from time to
         time, including the amounts of principal and interest payable and paid
         to such Lender from time to time under this Credit Agreement. Each
         Lender will make reasonable efforts to maintain the accuracy of its
         account or accounts and to promptly update its account or accounts from
         time to time, as necessary.

                  (b)  The Agent shall maintain the Register pursuant to Section
         11.3(c), and a subaccount for each Lender, in which Register and
         subaccounts (taken together) shall be recorded (i) the amount, type and
         Interest Period of each such Loan hereunder, (ii) the amount of any
         principal or interest due and payable or to become due and payable to
         each Lender hereunder and (iii) the amount of any sum received by the
         Agent hereunder from or for the account of any Credit Party and each
         Lender's share thereof. The Agent will make reasonable efforts to
         maintain the accuracy of the subaccounts referred to in the preceding
         sentence and to promptly update such subaccounts from time to time, as
         necessary.

                  (c)  The entries made in the accounts, Register and
         subaccounts maintained pursuant to clause (b) of this Section 3.16
         (and, if consistent with the entries of the Agent, clause (a)) shall be
         prima facie evidence of the existence and amounts of the obligations of
         the Credit Parties therein recorded; provided, however, that the
         failure of any Lender or the Agent to maintain any such account, such
         Register or such subaccount, as applicable, or any error therein, shall
         not in any manner affect the obligation of the Credit Parties to repay
         the Credit Party Obligations owing to such Lender.

                                       54

<PAGE>   60

                  3.17  REPLACEMENT OF AFFECTED LENDERS.

         If (i) any Lender having a Revolving Commitment becomes a Defaulting
Lender or (ii) any Credit Party is required to make any payments to any Lender
under Section 3.6, Section 3.8, Section 3.9 or Section 3.11 in an amount
reasonably deemed material by the Borrower, the Borrower shall have the right,
if no Event of Default then exists, to replace such Lender (the "Replaced
Lender") with one or more other Eligible Assignee or Eligible Assignees, none of
whom shall constitute a Defaulting Lender at the time of such replacement
(collectively, the "Replacement Lender"), provided that (a) at the time of any
replacement pursuant to this Section 3.17, the Replaced Lender and Replacement
Lender shall enter into an Assignment and Acceptance pursuant to which the
Replacement Lender shall acquire all or a portion, as the case may be, of the
Commitments and outstanding Loans of, and participation in Letters of Credit by,
the Replaced Lender and (b) all obligations of the Borrower owing to the
Replaced Lender relating to the Loans so replaced (including, without
limitation, such increased costs and excluding those specifically described in
clause (a) above in respect of which the assignment purchase price has been, or
is concurrently being paid) shall be paid in full to such Replaced Lender
concurrently with such replacement. Upon the execution of the appropriate
Assignment and Acceptance, the payment of amounts referred to in clauses (a) and
(b) above and, if so requested by the Replacement Lender, delivery to the
Replacement Lender of the appropriate Note or Notes executed by the Borrower,
the Replacement Lender shall become a Lender hereunder and the Replaced Lender
shall cease to constitute a Lender hereunder with respect to such replaced
Loans, except with respect to indemnification provisions under this Agreement,
which shall survive as to such Replaced Lender. Notwithstanding anything to the
contrary contained above, (1) the Lender that acts as the Issuing Lender may not
be replaced hereunder at any time that it has Letters of Credit outstanding
hereunder unless arrangements satisfactory to the Issuing Lender (including the
furnishing of a back-up standby letter of credit in form and substance, and
issued by an issuer satisfactory to such Issuing Lender or the depositing of
cash collateral into a cash collateral account maintained with the Agent in
amounts and pursuant to arrangements satisfactory to such Issuing Lender) have
been made with respect to such outstanding Letters of Credit and (2) the Lender
that acts as the Agent may not be replaced hereunder except in accordance with
the terms of Section 10.7. The Replaced Lender shall be required to deliver for
cancellation its applicable Notes to be canceled on the date of replacement, or
if any such Note is lost or unavailable, such other assurances or
indemnification therefor as the Borrower may reasonably request.

                                    SECTION 4

                                    GUARANTY

                  4.1  THE GUARANTY.

         Each of the Guarantors hereby jointly and severally guarantees to each
Lender, each Affiliate of a Lender that enters into a Hedging Agreement, and the
Agent as hereinafter provided, as primary obligor and not as surety, the prompt
payment of the Credit Party Obligations in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration, as a mandatory

                                       55

<PAGE>   61

cash collateralization or otherwise) strictly in accordance with the terms
thereof. The Guarantors hereby further agree that if any of the Credit Party
Obligations are not paid in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise), the Guarantors will, jointly and severally, promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Credit Party Obligations, the same
will be promptly paid in full when due (whether at extended maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) in accordance with the terms of such extension or renewal.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Credit Documents or Hedging Agreements, the obligations of each
Guarantor under this Credit Agreement and the other Credit Documents shall be
limited to an aggregate amount equal to the largest amount that would not render
such obligations subject to avoidance under Section 548 of the Bankruptcy Code
or any comparable provisions of any applicable state law.

                  4.2 OBLIGATIONS UNCONDITIONAL.

         The obligations of the Guarantors under Section 4.1 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Credit Documents or Hedging
Agreements, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Credit Party Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section 4.2 that the
obligations of the Guarantors hereunder shall be absolute and unconditional
under any and all circumstances. Each Guarantor agrees that such Guarantor shall
have no right of subrogation, indemnity, reimbursement or contribution against
the Borrower or any other Guarantor for amounts paid under this Section 4 until
such time as the Credit Party Obligations have been Fully Satisfied. Without
limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by law, the occurrence of any one or more of the following
shall not alter or impair the liability of any Guarantor hereunder which shall
remain absolute and unconditional as described above:

                  (a) at any time or from time to time, without notice to any
         Guarantor, the time for any performance of or compliance with any of
         the Credit Party Obligations shall be extended, or such performance or
         compliance shall be waived;

                  (b) any of the acts mentioned in any of the provisions of any
         of the Credit Documents, any Hedging Agreement between any Consolidated
         Party and any Lender, or any Affiliate of a Lender, or any other
         agreement or instrument referred to in the Credit Documents or such
         Hedging Agreements shall be done or omitted;

                  (c) the maturity of any of the Credit Party Obligations shall
         be accelerated, or any of the Credit Party Obligations shall be
         modified, supplemented or amended in any respect, or any right under
         any of the Credit Documents, any Hedging Agreement between any
         Consolidated Party and any Lender, or any Affiliate of a Lender, or any
         other agreement or instrument referred to in the Credit Documents or
         such Hedging Agreements shall be

                                       56

<PAGE>   62

         waived or any other guarantee of any of the Credit Party Obligations or
         any security therefor shall be released, impaired or exchanged in whole
         or in part or otherwise dealt with;

                  (d) any Lien granted to, or in favor of, the Agent or any
         Lender or Lenders as security for any of the Credit Party Obligations
         shall fail to attach or be perfected; or

                  (e) any of the Credit Party Obligations shall be determined to
         be void or voidable (including, without limitation, for the benefit of
         any creditor of any Guarantor) or shall be subordinated to the claims
         of any Person (including, without limitation, any creditor of any
         Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly
waives diligence, presentment, demand of payment, protest and all notices
whatsoever, and any requirement that the Agent or any Lender exhaust any right,
power or remedy or proceed against any Person under any of the Credit Documents,
any Hedging Agreement between any Consolidated Party and any Lender, or any
Affiliate of a Lender, or any other agreement or instrument referred to in the
Credit Documents or such Hedging Agreements, or against any other Person under
any other guarantee of, or security for, any of the Credit Party Obligations.

                  4.3 REINSTATEMENT.

         The obligations of the Guarantors under this Section 4 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Credit Party Obligations is
rescinded or must be otherwise restored by any holder of any of the Credit Party
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Agent and each Lender on demand for all reasonable costs and expenses
(including, without limitation, fees and expenses of counsel) incurred by the
Agent or such Lender in connection with such rescission or restoration,
including any such costs and expenses incurred in defending against any claim
alleging that such payment constituted a preference, fraudulent transfer or
similar payment under any bankruptcy, insolvency or similar law.

                  4.4 CERTAIN ADDITIONAL WAIVERS.

         Without limiting the generality of the provisions of this Section 4,
each Guarantor hereby specifically waives the benefits of N.C. Gen. Stat. ss.ss.
26-7 through 26-9, inclusive, to the extent applicable. Each Guarantor further
agrees that such Guarantor shall have no right of recourse to security for the
Credit Party Obligations, except through the exercise of rights of subrogation
pursuant to Section 4.2 and through the exercise of rights of contribution
pursuant to Section 4.6.

                  4.5 REMEDIES.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Agent and the Lenders, on the
other hand, the Credit Party Obligations may be declared to be forthwith due and
payable as provided in Section 9.2 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section 9.2)
for

                                       57

<PAGE>   63

purposes of Section 4.1 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing the Credit Party
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Credit Party
Obligations being deemed to have become automatically due and payable), the
Credit Party Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by the Guarantors for purposes of Section
4.1. The Guarantors acknowledge and agree that their obligations hereunder are
secured in accordance with the terms of the Collateral Documents and that the
Lenders may exercise their remedies thereunder in accordance with the terms
thereof.

                  4.6 RIGHTS OF CONTRIBUTION.

         The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment. The
payment obligations of any Guarantor under this Section 4.6 shall be subordinate
and subject in right of payment to the Credit Party Obligations until such time
as the Credit Party Obligations have been Fully Satisfied, and none of the
Guarantors shall exercise any right or remedy under this Section 4.6 against any
other Guarantor until such Credit Party Obligations have been Fully Satisfied.
For purposes of this Section 4.6, (a) "Excess Payment" shall mean the amount
paid by any Guarantor in excess of its Pro Rata Share of any Guaranteed
Obligations; (b) "Pro Rata Share" shall mean, for any Guarantor in respect of
any payment of Credit Party Obligations, the ratio (expressed as a percentage)
as of the date of such payment of Guaranteed Obligations of (i) the amount by
which the aggregate present fair salable value of all of its assets and
properties exceeds the amount of all debts and liabilities of such Guarantor
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of such Guarantor hereunder) to (ii) the amount by
which the aggregate present fair salable value of all assets and other
properties of all of the Credit Parties exceeds the amount of all of the debts
and liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the Credit Parties hereunder) of
the Credit Parties; provided, however, that, for purposes of calculating the Pro
Rata Shares of the Guarantors in respect of any payment of Credit Party
Obligations, any Guarantor that became a Guarantor subsequent to the date of any
such payment shall be deemed to have been a Guarantor on the date of such
payment and the financial information for such Guarantor as of the date such
Guarantor became a Guarantor shall be utilized for such Guarantor in connection
with such payment; and (c) "Contribution Share" shall mean, for any Guarantor in
respect of any Excess Payment made by any other Guarantor, the ratio (expressed
as a percentage) as of the date of such Excess Payment of (i) the amount by
which the aggregate present fair salable value of all of its assets and
properties exceeds the amount of all debts and liabilities of such Guarantor
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of such Guarantor hereunder) to (ii) the amount by
which the aggregate present fair salable value of all assets and other
properties of the Credit Parties other than the maker of such Excess Payment
exceeds the amount of all of the debts and liabilities (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of the Credit Parties) of the Credit Parties other than the maker of
such Excess Payment; provided, however, that, for purposes of calculating the
Contribution Shares of the Guarantors in respect of any Excess Payment, any
Guarantor that became a Guarantor subsequent to the date of any such Excess
Payment shall be deemed to have been a Guarantor on the date of such

                                       58

<PAGE>   64

Excess Payment and the financial information for such Guarantor as of the date
such Guarantor became a Guarantor shall be utilized for such Guarantor in
connection with such Excess Payment. This Section 4.6 shall not be deemed to
affect any right of subrogation, indemnity, reimbursement or contribution that
any Guarantor may have under applicable law against the Borrower in respect of
any payment of Guaranteed Obligations. Notwithstanding the foregoing, all rights
of contribution against any Guarantor shall terminate from and after such time,
if ever, that such Guarantor shall be relieved of its obligations pursuant to
Section 8.5.

                  4.7 GUARANTEE OF PAYMENT; CONTINUING GUARANTEE.

         The guarantee in this Section 4 is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Credit Party
Obligations whenever arising.

                                    SECTION 5

                                   CONDITIONS

                  5.1 CLOSING CONDITIONS.

         This Credit Agreement shall become effective at such time on or after
the Closing Date when it shall have been executed by the Borrower, Influence and
the Agent, and the Agent shall have received copies hereof (telefaxed or
otherwise) which, when taken together, bear the signatures of each Lender, and
thereafter this Credit Agreement shall be binding upon and inure to the benefit
of each Credit Party, the Agent and each Lender and their respective successors
and assigns.

                  5.2 CONDITIONS TO INITIAL EXTENSIONS OF CREDIT.

         The obligation of the Lenders to enter into this Credit Agreement and
to make the initial Loans or the Issuing Lender to issue the initial Letter of
Credit, whichever shall occur first, shall be subject to satisfaction of the
following conditions in addition to satisfaction of the conditions set forth in
Section 5.1:

                  (a) Executed Credit Documents. Receipt by the Agent of duly
         executed copies of: (i) the Notes, (ii) the Pledge Agreement, (iii) the
         Security Agreement, (iv) the Mortgage Instruments and (v) the Warburg
         Guaranty.

                  (b) Corporate Documents. Receipt by the Agent of the
         following:

                      (i) Charter Documents. Copies of the articles or
                  certificates of incorporation or other charter documents of
                  each Credit Party certified to be true and complete as of a
                  recent date by the appropriate Governmental Authority of the
                  state or other jurisdiction of its incorporation and certified
                  by a secretary or assistant secretary of such Credit Party to
                  be true and correct as of the Initial Funding Date.

                                       59
<PAGE>   65
                           (ii) Bylaws. A copy of the bylaws of each Credit
                  Party certified by a secretary or assistant secretary of such
                  Credit Party to be true and correct as of the Initial Funding
                  Date.

                           (iii) Resolutions. Copies of resolutions of the Board
                  of Directors of each Credit Party approving and adopting the
                  Credit Documents to which it is a party, the transactions
                  contemplated therein and authorizing execution and delivery
                  thereof, certified by a secretary or assistant secretary of
                  such Credit Party to be true and correct and in force and
                  effect as of the Initial Funding Date.

                           (iv) Good Standing. Copies of (A) certificates of
                  good standing, existence or its equivalent with respect to
                  each Credit Party certified as of a recent date by the
                  appropriate Governmental Authorities of the state or other
                  jurisdiction of incorporation and each other jurisdiction in
                  which the failure to so qualify and be in good standing could
                  have a Material Adverse Effect and (B) to the extent
                  available, a certificate indicating payment of all corporate
                  or comparable franchise taxes certified as of a recent date by
                  the appropriate governmental taxing authorities.

                           (v) Incumbency. An incumbency certificate of each
                  Credit Party certified by a secretary or assistant secretary
                  to be true and correct as of the Initial Funding Date.

                  (c) Warburg Partnership Documents. (i) A copy of the
         certificate of limited partnership and the partnership agreement (not
         including the schedules thereto) of U.S. Warburg, as amended and
         modified from time to time, certified by an officer of the Manager to
         be true and correct as of the Initial Funding Date, (ii) a copy of the
         Management Agreement certified to be true and complete as of the
         Initial Funding Date by an officer of the Manager, (iii) a copy of the
         authorization of the General Partner authorizing the Manager to execute
         and deliver the Warburg Guaranty on behalf of U.S. Warburg, (iv) an
         excerpted copy of Sections 4.1, 4.2 and 4.3 of the Amended and Restated
         Operating Agreement of the Manager authorizing officers of the Manager
         to execute and deliver documents (including, without limitation, the
         Warburg Guaranty) on behalf of the Manager certified to be true and
         correct as of the Initial Funding Date by an officer of the Manager and
         (v) incumbency certificate of the Manager certified by an officer of
         the Manager to be true and correct as of the Initial Funding Date.

                  (d) Opinions of Counsel. The Agent shall have received, in
         each case dated as of the Initial Funding Date and in form and
         substance reasonably satisfactory to the Agent:

                           (i) a legal opinion of Willkie Farr & Gallagher,
                  counsel for the Credit Parties;

                           (ii) a legal opinion of Willkie Farr & Gallagher,
                  general counsel for the General Partner;

                                       60

<PAGE>   66

                           (iii) a legal opinion of special local counsel for
                  each Credit Party not organized in the State of Delaware or
                  the State of New York;

                           (iv) a legal opinion of special local real estate
                  counsel for the Credit Parties for each State in which any
                  Mortgaged Property is located; and

                           (v) a legal opinion of special foreign counsel for
                  the Credit Parties for each country in which any Material
                  Foreign Subsidiary is organized.

                  (e) Personal Property Collateral. The Agent shall have
         received:

                        (i) searches of Uniform Commercial Code filings in the
                  jurisdiction of the chief executive office of each Credit
                  Party and each jurisdiction where any Collateral is located or
                  where a filing would need to be made in order to perfect the
                  Agent's security interest in the Collateral, copies of the
                  financing statements on file in such jurisdictions and
                  evidence that no Liens exist other than Permitted Liens;

                       (ii) duly executed UCC financing statements for each
                  appropriate jurisdiction where financing statements are
                  required to be filed, in the Agent's sole discretion, in order
                  to perfect the Agent's security interest in the Collateral;

                      (iii) searches of ownership of, and Liens on, intellectual
                  property of each Credit Party in the appropriate governmental
                  offices;

                       (iv) all certificates evidencing any certificated Capital
                  Stock pledged to the Agent pursuant to the Pledge Agreement,
                  together with duly executed in blank, undated stock powers
                  attached thereto (unless, with respect to the pledged Capital
                  Stock of any Material Foreign Subsidiary, such stock powers
                  are deemed unnecessary by the Agent in its reasonable
                  discretion under the law of the jurisdiction of incorporation
                  of such Person);

                        (v) duly executed notices of grant of security interest
                  in the form required by the Security Agreement as are
                  necessary, in the Agent's sole discretion, to perfect the
                  Agent's security interest in the Collateral;

                       (vi) all instruments and chattel paper in the possession
                  of any of the Credit Parties, together with allonges or
                  assignments as may be necessary or appropriate to perfect the
                  Agent's security interest in the Collateral;

                      (vii) duly executed consents as are necessary, in the
                  Agent's sole discretion, to perfect the Agent's security
                  interest in the Collateral; and

                     (viii) in the case of any personal property Collateral
                  located at a premises leased by a Credit Party, such estoppel
                  letters, consents and waivers from the landlords on such real
                  property as may be required by the Agent.

                                       61

<PAGE>   67

                  (f) Real Property Collateral. The Agent shall have received,
         in form and substance reasonably satisfactory to the Agent:

                        (i) fully executed and notarized mortgages, deeds of
                  trust or deeds to secure debt (each, as the same may be
                  amended, modified, restated or supplemented from time to time,
                  a "Mortgage Instrument" and collectively the "Mortgage
                  Instruments") encumbering the fee interest and/or leasehold
                  interest of any Credit Party in each of the Real Properties
                  designated in Schedule 6.20(a) (each a "Mortgaged Property"
                  and collectively the "Mortgaged Properties");

                       (ii) in the case of each real property leasehold interest
                  of any Credit Party constituting Mortgaged Property, (a) such
                  estoppel letters, consents and waivers from the landlords on
                  such real property as may be required by the Agent, which
                  estoppel letters shall be in the form and substance reasonably
                  satisfactory to the Agent and (b) evidence that the applicable
                  lease, a memorandum of lease with respect thereto, or other
                  evidence of such lease in form and substance reasonably
                  satisfactory to the Agent, has been or will be recorded in all
                  places to the extent necessary or desirable, in the reasonable
                  judgment of the Agent, so as to enable the Mortgage Instrument
                  encumbering such leasehold interest to effectively create a
                  valid and enforceable first priority lien (subject to
                  Permitted Liens) on such leasehold interest in favor of the
                  Agent (or such other Person as may be required or desired
                  under local law) for the benefit of Lenders;

                      (iii) maps or plats of an as-built survey of the sites of
                  the real property covered by the Mortgage Instruments
                  certified to the Agent and the title insurance company issuing
                  the policy referred to in Section 5.2(f)(iv) (the "Title
                  Insurance Company") in a manner reasonably satisfactory to
                  each of the Agent and the Title Insurance Company, dated a
                  date reasonably satisfactory to each of the Agent and the
                  Title Insurance Company by an independent professional
                  licensed land surveyor, which maps or plats and the surveys on
                  which they are based shall be sufficient to delete any
                  standard printed survey exception contained in the applicable
                  title policy and be made in accordance with the Minimum
                  Standard Detail Requirements for Land Title Surveys jointly
                  established and adopted by the American Land Title Association
                  and the American Congress on Surveying and Mapping in 1992,
                  and, without limiting the generality of the foregoing, there
                  shall be surveyed and shown on such maps, plats or surveys the
                  following: (A) the locations on such sites of all the
                  buildings, structures and other improvements and the
                  established building setback lines; (B) the lines of streets
                  abutting the sites and width thereof; (C) all access and other
                  easements appurtenant to the sites necessary to use the sites;
                  (D) all roadways, paths, driveways, easements, encroachments
                  and overhanging projections and similar encumbrances affecting
                  the site, whether recorded, apparent from a physical
                  inspection of the sites or otherwise known to the surveyor;
                  (E) any encroachments on any adjoining property by the
                  building structures and improvements on the sites; and (F) if
                  the site is described as being on a filed map, a legend
                  relating the survey to said map;

                                       62

<PAGE>   68

                       (iv) ALTA mortgagee title insurance policies issued by
                  Chicago Title Insurance Company (the "Mortgage Policies"), in
                  amounts not less than the respective amounts designated in
                  Schedule 6.20(a) with respect to any particular Mortgaged
                  Property, assuring the Agent that each of the Mortgage
                  Instruments creates a valid and enforceable first priority
                  mortgage lien on the applicable Mortgaged Property, free and
                  clear of all defects and encumbrances except Permitted Liens,
                  which Mortgage Policies shall be in form and substance
                  reasonably satisfactory to the Agent and shall provide for
                  affirmative insurance and such reinsurance as the Agent may
                  reasonably request, all of the foregoing in form and substance
                  reasonably satisfactory to the Agent;

                        (v) evidence as to (A) whether any Mortgaged Property is
                  in an area designated by the Federal Emergency Management
                  Agency as having special flood or mud slide hazards (a "Flood
                  Hazard Property") and (B) if any Mortgaged Property is a Flood
                  Hazard Property, (1) whether the community in which such
                  Mortgaged Property is located is participating in the National
                  Flood Insurance Program, (2) the applicable Credit Party's
                  written acknowledgment of receipt of written notification from
                  the Agent (a) as to the fact that such Mortgaged Property is a
                  Flood Hazard Property and (b) as to whether the community in
                  which each such Flood Hazard Property is located is
                  participating in the National Flood Insurance Program and (3)
                  copies of insurance policies or certificates of insurance of
                  the Consolidated Parties evidencing flood insurance
                  satisfactory to the Agent and naming the Agent as sole loss
                  payee on behalf of the Lenders; and

                       (vi) evidence reasonably satisfactory to the Agent that
                  each of the Mortgaged Properties, and the uses of the
                  Mortgaged Properties, are in compliance in all material
                  respects with all applicable laws, regulations and ordinances
                  including without limitation health and environmental
                  protection laws, erosion control ordinances, storm drainage
                  control laws, doing business and/or licensing laws, zoning
                  laws (the evidence submitted as to zoning should include the
                  zoning designation made for each of the Mortgaged Properties,
                  the permitted uses of each such Mortgaged Properties under
                  such zoning designation and zoning requirements as to parking,
                  lot size, ingress, egress and building setbacks) and laws
                  regarding access and facilities for disabled persons
                  including, but not limited to, the Federal Architectural
                  Barriers Act, the Fair Housing Amendments Act of 1988, the
                  Rehabilitation Act of 1973 and the Americans with Disabilities
                  Act of 1990.

                  (g) Availability. After giving effect to the Refinancing and
         the making of the initial Loans and the issuance of the initial Letters
         of Credit hereunder on the Initial Funding Date, the Revolving
         Committed Amount shall exceed the sum of the aggregate outstanding
         principal amount of Revolving Loans plus LOC Obligations by at least
         $8,000,000.

                  (h) Evidence of Insurance. Receipt by the Agent of copies of
         insurance policies or certificates of insurance of the Consolidated
         Parties evidencing liability and casualty

                                       63

<PAGE>   69

         insurance meeting the requirements set forth in the Credit Documents,
         including, but not limited to, naming the Agent as additional insured
         (in the case of liability insurance) or loss payee (in the case of
         hazard insurance) on behalf of the Lenders.

                  (i) Government Consent. Receipt by the Agent of evidence that
         all governmental, shareholder and material third party consents and
         approvals necessary or desirable in connection with the Refinancing and
         expiration of all applicable waiting periods without any action being
         taken by any authority that could restrain, prevent or impose any
         material adverse conditions on the Refinancing or that could seek or
         threaten any of the foregoing, and no law or regulation shall be
         applicable which in the judgment of the Agent could have such effect.

                  (j) Capital Contribution. The Agent shall be satisfied that
         members of the Initial Investor Group shall have contributed
         approximately $20.9 million to the Borrower in exchange for common
         Capital Stock of the Borrower, all on terms that are satisfactory to
         the Agent.

                  (k) Officer's Certificates. The Agent shall have received (i)
         a certificate or certificates executed by an Executive Officer of the
         Borrower as of the Initial Funding Date, in form and substance
         satisfactory to the Agent, stating that (A) each Credit Party is in
         compliance with all existing financial obligations, (B) all
         governmental, shareholder and third party consents and approvals, if
         any, with respect to the Credit Documents and the transactions
         contemplated thereby have been obtained, (C) no action, suit,
         investigation or proceeding is pending or threatened in any court or
         before any arbitrator or governmental instrumentality that purports to
         affect any Credit Party or any transaction contemplated by the Credit
         Documents, if such action, suit, investigation or proceeding could have
         a Material Adverse Effect and (D) immediately after giving effect to
         the Refinancing, (1) no Default or Event of Default exists, (2) all
         representations and warranties contained herein and in the other Credit
         Documents are true and correct in all material respects and (3) on the
         basis of income statement items and capital expenditures for the
         12-month period ending on the last day of the most recently ended
         calendar month prior to the Initial Funding Date and balance sheet
         items as of the Initial Funding Date after giving effect to the
         Refinancing, the Credit Parties are in pro forma compliance with each
         of the financial covenants set forth in Section 7.11; and (ii) a
         certificate or certificates executed by an officer of the Manager as of
         the Initial Funding Date stating that (A) all governmental, shareholder
         and third party consents and approvals, if any, with respect to the
         Warburg Guaranty and the transactions contemplated thereby have been
         obtained, (B) there does not exist any pending or threatened action,
         suit, investigation, or proceeding against any WPEP Entity that could
         have a Material Adverse Effect and (C) immediately after giving effect
         to the Credit Agreement, the other Credit Documents and all
         transactions contemplated therein to occur on such date, (1) no Default
         or Event of Default exists, (2) all representations and warranties of
         the WPEP Entities contained in the Warburg Guaranty are true and
         correct in all material respects and (3) as of the Initial Funding
         Date, the aggregate Remaining Capital Commitment Balances of all
         Limited Partners is at least $2.5 billion.

                                       64

<PAGE>   70

                  (l) Solvency Certificate. The Agent shall have received a
         certificate executed by an Executive Officer of the Borrower as of the
         Initial Funding Date, in form and substance satisfactory to the Agent,
         regarding the Solvency of each of the Credit Parties.

                  (m) Purchase Agreement. The Agent shall have received a copy,
         certified by an Executive Officer of the Borrower as true and complete,
         of the Purchase Agreement as originally executed and delivered,
         together with all exhibits and schedules thereto.

                  (n) Fees and Expenses. Payment by the Credit Parties to the
         Lenders and the Agent of all fees and expenses relating to the Credit
         Facilities which are due and payable on the Initial Funding Date,
         including, without limitation, payment to the Agent of the fees set
         forth in the Agent's Fee Letter.

                  (o) Leverage Ratio. After giving effect to the Refinancing,
         the ratio of (i) Funded Indebtedness of the Consolidated Parties on a
         consolidated basis (other than Revolving Loans and Tranche B Term
         Loans) on the Initial Funding Date to (ii) Consolidated EBITDA for the
         four fiscal quarter period ending on December 31, 1999, shall be no
         greater than 3.1 to 1.0.

                  (p) Parent Joinder Agreement. Receipt by the Agent of a duly
         executed copy of the Parent Joinder Agreement.

                  (q) 1999 Audited Financial Statements. Receipt by the Agent of
         the audited annual financial statements of the Consolidated Parties
         described in Section 7.1(a) for the fiscal year ended December 31,
         1999.

                  (r) Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender, including, but not limited to, information regarding
         litigation, tax, accounting, labor, insurance, pension liabilities
         (actual or contingent), real estate leases, material contracts, debt
         agreements, property ownership and contingent liabilities of the
         Consolidated Parties.

                  5.3 CONDITIONS TO ALL EXTENSIONS OF CREDIT.

         The obligations of each Lender to make, convert or extend any Loan and
of the Issuing Lender to issue or extend any Letter of Credit (including the
initial Loans and the initial Letter of Credit) are subject to satisfaction of
the following conditions in addition to satisfaction on the Closing Date of the
conditions set forth in Section 5.1 and satisfaction on the Initial Funding Date
of the conditions set forth in Section 5.2:

                  (a) The Borrower shall have delivered (i) in the case of any
         Revolving Loan, any portion of the Tranche A Term Loan or any portion
         of the Tranche B Term Loan, an appropriate Notice of Borrowing or
         Notice of Extension/Conversion or (ii) in the case of any Letter of
         Credit, the Issuing Lender shall have received an appropriate request
         for issuance in accordance with the provisions of Section 2.2(b);

                                       65

<PAGE>   71

                  (b) The representations and warranties set forth in Section 6
         and in Section 10 of the Warburg Guaranty shall, subject to the
         limitations set forth therein, be true and correct in all material
         respects as of such date (except for those which expressly relate to an
         earlier date);

                  (c) There shall not have been commenced against the Borrower
         or the Parent an involuntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or any
         case, proceeding or other action for the appointment of a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or similar
         official) of such Person or for any substantial part of its Property or
         for the winding up or liquidation of its affairs, and such involuntary
         case or other case, proceeding or other action shall remain
         undismissed;

                  (d) No Default or Event of Default shall exist and be
         continuing either prior to or after giving effect thereto; and

                  (e) Immediately after giving effect to the making of such Loan
         (and the application of the proceeds thereof) or to the issuance of
         such Letter of Credit, as the case may be, (i) the sum of the aggregate
         outstanding principal amount of Revolving Loans plus LOC Obligations
         shall not exceed the Revolving Committed Amount, and (ii) the LOC
         Obligations shall not exceed the LOC Committed Amount.

The delivery of each Notice of Borrowing, each Notice of Extension/Conversion
and each request for a Letter of Credit pursuant to Section 2.2(b) shall
constitute a representation and warranty by the Credit Parties of the
correctness of the matters specified in subsections (b), (c), (d) and (e) above.

                                    SECTION 6

                         REPRESENTATIONS AND WARRANTIES

         The Credit Parties hereby represent to the Agent and each Lender that:

                  6.1 FINANCIAL CONDITION.

                  (a) The audited consolidated balance sheets and income
         statements of the Consolidated Parties (other than Influence and its
         Subsidiaries) for the fiscal years ended December 31, 1996 and December
         31, 1997 and the period from September 10, 1998 to December 31, 1998
         (including the notes thereto) (i) have been audited by KPMG Peat
         Marwick LLP, in the case of the 1996 and 1997 financial statements, and
         Ernst & Young, LLP, in the case of the 1998 financial statements, (ii)
         have been prepared in accordance with GAAP consistently applied
         throughout the periods covered thereby and (iii) present fairly (on the
         basis disclosed in the footnotes to such financial statements) the
         consolidated financial condition, results of operations and cash flows
         of the Consolidated Parties (other than Influence and its Subsidiaries)
         as of such date and for such periods. The audited consolidated balance
         sheets and income statements of Influence for the fiscal year December
         31, 1998 and for the six-month period ended June 30, 1999 (including
         the notes

                                       66

<PAGE>   72

         thereto) (i) have been audited by Ernst & Young, LLP, (ii) have been
         prepared in accordance with GAAP consistently applied throughout the
         periods covered thereby and (iii) present fairly (on the basis
         disclosed in the footnotes to such financial statements) the
         consolidated financial condition, results of operations and cash flows
         of Influence as of such date and for such periods. The unaudited
         interim consolidated balance sheets of each of the Consolidated Parties
         (other than Influence and its Subsidiaries) and of Influence and its
         Subsidiaries as at the end of, and the related unaudited interim
         statements of earnings and of cash flows for, each fiscal quarterly
         period ended (x) after December 31, 1998 for the Consolidated Parties
         (other than Influence and its Subsidiaries) and (y) after June 30, 1999
         for Influence and its Subsidiaries and prior to the Closing Date (i)
         have been prepared in accordance with GAAP consistently applied
         throughout the periods covered thereby and (ii) present fairly (on the
         basis disclosed in the footnotes to such financial statements) the
         consolidated and consolidating financial condition, results of
         operations and cash flows of the Consolidated Parties (other than
         Influence and its Subsidiaries) or Influence, as the case may be, as of
         such date and for such periods but are subject to potential adjustments
         for in process research and development write-offs associated with the
         acquisition of Influence and its Subsidiaries or the acquisition of the
         UroVive product line. Except as contemplated by the Purchase Agreement,
         during the period from December 31, 1998 to and including the Initial
         Funding Date, there has been no sale, transfer or other disposition by
         any Consolidated Party (including Influence and its Subsidiaries) of
         any material part of the business or property of the Consolidated
         Parties (including Influence and its Subsidiaries), taken as a whole,
         and, except for the Acquisition of the Capital Stock of Influence
         pursuant to the Purchase Agreement, no purchase or other acquisition by
         any of them of any business or property (including any Capital Stock of
         any other Person ) material in relation to the consolidated financial
         condition of the Consolidated Parties (including Influence and its
         Subsidiaries), taken as a whole, in each case, which is not reflected
         in the foregoing financial statements or in the notes thereto and has
         not otherwise been disclosed in writing to the Lenders on or prior to
         the Initial Funding Date. Except as disclosed on Schedule 6.1(a)
         hereto, the Consolidated Parties (including Influence and its
         Subsidiaries) have no material liabilities (contingent or otherwise)
         that are not reflected in the foregoing financial statements or in the
         notes thereto.

                  (b) The pro forma consolidated balance sheet of the
         Consolidated Parties as of the Initial Funding Date giving effect to
         the Refinancing and reflecting estimated purchase accounting
         adjustments is based upon reasonable assumptions made known to the
         Lenders and upon information not known to be incorrect or misleading in
         any material respect but such balance sheet is subject to potential
         adjustments for in process research and development write-offs
         associated with the acquisition of Influence and its Subsidiaries or
         the acquisition of the UroVive product line.

                  (c) The financial statements delivered pursuant to Section
         7.1(a) and (b) have been prepared in accordance with GAAP (except as
         may otherwise be permitted under Section 7.1(a) and (b)) and present
         fairly (on the basis disclosed in the footnotes to such financial
         statements) the consolidated and consolidating financial condition,
         results of operations and cash flows of the Consolidated Parties as of
         such date and for such periods.

                                       67

<PAGE>   73

                  6.2 NO MATERIAL CHANGE.

         Except as set forth on Schedule 6.9, since December 31, 1998, there has
been no development or event relating to or affecting a Consolidated Party which
has had or could reasonably be expected to have a Material Adverse Effect.

                  6.3 ORGANIZATION AND GOOD STANDING.

         Each of the Consolidated Parties (a) is duly organized, validly
existing and is in good standing under the laws of the jurisdiction of its
incorporation or organization, (b) has the corporate or other necessary power
and authority, and the legal right, to own and operate its property, to lease
the property it operates as lessee and to conduct the business in which it is
currently engaged and (c) is duly qualified as a foreign entity and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its business requires such
qualification, other than in such jurisdictions where the failure to be so
qualified and in good standing would not be reasonably expected to have a
Material Adverse Effect.

                  6.4 POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS.

         Each of the Credit Parties has the corporate or other necessary power
and authority, and the legal right, to make, deliver and perform the Credit
Documents to which it is a party, and in the case of the Borrower, to obtain
extensions of credit hereunder, and has taken all necessary corporate or other
necessary action to authorize the borrowings and other extensions of credit on
the terms and conditions of this Credit Agreement and to authorize the
execution, delivery and performance of the Credit Documents to which it is a
party. No consent or authorization of, filing with, notice to or other similar
act by or in respect of, any Governmental Authority or any other Person is
required to be obtained or made by or on behalf of any Credit Party in
connection with the borrowings or other extensions of credit hereunder, with the
execution, delivery, performance, validity or enforceability of the Credit
Documents to which such Credit Party is a party or with the consummation of the
Refinancing, except for (i) consents, authorizations, notices and filings
described in Schedule 6.4, all of which have been obtained or made or have the
status described in such Schedule 6.4 and (ii) filings to perfect the Liens
created by the Collateral Documents. This Credit Agreement has been, and each
other Credit Document to which any Credit Party is a party will be, duly
executed and delivered on behalf of the Credit Parties. This Credit Agreement
constitutes, and each other Credit Document to which any Credit Party is a party
when executed and delivered will constitute, a legal, valid and binding
obligation of such Credit Party enforceable against such party in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

                  6.5 NO CONFLICTS.

         Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by such Credit Party will (a)
violate or conflict with any provision of its articles

                                       68

<PAGE>   74

or certificate of incorporation or bylaws or other organizational or governing
documents of such Person, (b) violate, contravene or materially conflict with
any Requirement of Law or any other law, regulation (including, without
limitation, Regulation U or Regulation X), order, writ, judgment, injunction,
decree or permit applicable to it, (c) violate, contravene or conflict with
contractual provisions of, or cause an event of default under, any indenture,
loan agreement, mortgage, deed of trust, contract or other agreement or
instrument to which it is a party or by which it may be bound, the violation of
which could reasonably be expected to have a Material Adverse Effect, or (d)
result in or require the creation of any Lien (other than those contemplated in
or created in connection with the Credit Documents) upon or with respect to its
properties.

                  6.6 NO DEFAULT.

         No Consolidated Party is in default in any respect under any contract,
lease, loan agreement, indenture, mortgage, security agreement or other
agreement or obligation to which it is a party or by which any of its properties
is bound which default could reasonably be expected to have a Material Adverse
Effect. No Default or Event of Default has occurred or exists except as
previously disclosed in writing to the Lenders.

                  6.7 OWNERSHIP.

         Each Consolidated Party is the owner of, and has good and marketable
title to, all of its respective assets and none of such assets is subject to any
Lien other than Permitted Liens.

                  6.8 INDEBTEDNESS.

         Except as otherwise permitted under Section 8.1, the Consolidated
Parties have no Indebtedness.

                  6.9 LITIGATION.

         Except as disclosed in Schedule 6.9, there does not exist any pending
or threatened action, suit or legal, equitable, arbitration or administrative
proceeding against any Consolidated Party which could reasonably be expected to
have a Material Adverse Effect.

                  6.10 TAXES.

         Each Consolidated Party has filed, or caused to be filed, all material
tax returns (Federal, state, local and foreign) required to be filed and paid
(a) all amounts of taxes shown thereon to be due (including interest and
penalties) and (b) all other taxes, fees, assessments and other governmental
charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) owing by it, except for such taxes (i) which are not yet
delinquent or (ii) that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP. No Credit Party is aware as of the Initial Funding Date of
any proposed material tax assessments against it or any other Consolidated
Party.

                                       69

<PAGE>   75

                  6.11 COMPLIANCE WITH LAW.

         Each Consolidated Party is in compliance with all Requirements of Law
and all other laws, rules, regulations, orders and decrees (including without
limitation Environmental Laws) applicable to it, or to its properties, unless
such failure to comply could not reasonably be expected to have a Material
Adverse Effect.

                  6.12 ERISA.

         Except as disclosed and described in Schedule 6.12 attached hereto or
as would not be reasonably expected to have a Material Adverse Effect:

                  (a) During the five-year period prior to the date on which
         this representation is made or deemed made: (i) no ERISA Event has
         occurred, and, to the best knowledge of the Executive Officers of the
         Credit Parties, no event or condition has occurred or exists as a
         result of which any ERISA Event could reasonably be expected to occur,
         with respect to any Plan; (ii) no "accumulated funding deficiency," as
         such term is defined in Section 302 of ERISA and Section 412 of the
         Code, whether or not waived, has occurred with respect to any Plan;
         (iii) each Plan has been maintained, operated, and funded in compliance
         with its own terms and in material compliance with the provisions of
         ERISA, the Code, and any other applicable federal or state laws; and
         (iv) no lien in favor of the PBGC or a Plan has arisen or is reasonably
         likely to arise on account of any Plan.

                  (b) The actuarial present value of all "benefit liabilities"
         (as defined in Section 4001(a)(16) of ERISA), whether or not vested,
         under each Single Employer Plan, as of the last annual valuation date
         prior to the date on which this representation is made or deemed made
         (determined, in each case, in accordance with Financial Accounting
         Standards Board Statement 87, utilizing the actuarial assumptions used
         in such Plan's most recent actuarial valuation report), did not exceed
         as of such valuation date the fair market value of the assets of such
         Plan.

                  (c) Neither any Consolidated Party nor any ERISA Affiliate has
         incurred, or, to the best knowledge of the Executive Officers of the
         Credit Parties, could be reasonably expected to incur, any withdrawal
         liability under ERISA to any Multiemployer Plan or Multiple Employer
         Plan. Neither any Consolidated Party nor any ERISA Affiliate would
         become subject to any withdrawal liability under ERISA if any
         Consolidated Party or any ERISA Affiliate were to withdraw completely
         from all Multiemployer Plans and Multiple Employer Plans as of the
         valuation date most closely preceding the date on which this
         representation is made or deemed made. Neither any Consolidated Party
         nor any ERISA Affiliate has received any notification that any
         Multiemployer Plan is in reorganization (within the meaning of Section
         4241 of ERISA), is insolvent (within the meaning of Section 4245 of
         ERISA), or has been terminated (within the meaning of Title IV of
         ERISA), and no Multiemployer Plan is, to the best knowledge of the
         Executive Officers of the Credit Parties, reasonably expected to be in
         reorganization, insolvent, or terminated.

                                       70

<PAGE>   76

                  (d) No prohibited transaction (within the meaning of Section
         406 of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility has occurred with respect to a Plan which has subjected
         or may subject any Consolidated Party or any ERISA Affiliate to any
         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which any Consolidated Party or any ERISA Affiliate has
         agreed or is required to indemnify any Person against any such
         liability.

                  (e) Neither any Consolidated Party nor any ERISA Affiliates
         has any material liability with respect to "expected post-retirement
         benefit obligations" within the meaning of the Financial Accounting
         Standards Board Statement 106, except as have been accrued on the
         financial statements of the Borrower. Each Plan which is a welfare plan
         (as defined in Section 3(1) of ERISA) to which Sections 601-609 of
         ERISA and Section 4980B of the Code apply has been administered in
         compliance in all material respects of such sections.

                  (f) Neither the execution and delivery of this Credit
         Agreement nor the consummation of the financing transactions
         contemplated thereunder will involve any transaction which is subject
         to the prohibitions of Sections 404, 406 or 407 of ERISA or in
         connection with which a tax could be imposed pursuant to Section 4975
         of the Code. The representation by the Credit Parties in the preceding
         sentence is made in reliance upon and subject to the accuracy of the
         Lenders' representation in Section 11.15 with respect to their source
         of funds and is subject, in the event that the source of the funds used
         by the Lenders in connection with this transaction is an insurance
         company's general asset account, to the application of Prohibited
         Transaction Class Exemption 95-60, 60 Fed. Reg. 35,925 (1995),
         compliance with the regulations issued under Section 401(c)(1)(A) of
         ERISA, or the issuance of any other prohibited transaction exemption or
         similar relief, to the effect that assets in an insurance company's
         general asset account do not constitute assets of an "employee benefit
         plan" within the meaning of Section 3(3) of ERISA or a "plan" within
         the meaning of Section 4975(e)(1) of the Code.

                  6.13 CORPORATE STRUCTURE; CAPITAL STOCK, ETC.

         The corporate capital and ownership structure of the Consolidated
Parties as of the Initial Funding Date is as described in Schedule 6.13A. Set
forth on Schedule 6.13B is a complete and accurate list with respect to the
Borrower and each of its direct and indirect Subsidiaries of (i) jurisdiction of
incorporation, (ii) number of shares of each class of Capital Stock outstanding,
(iii) number and percentage of outstanding shares of each class owned (directly
or indirectly) by the Consolidated Parties and (iv) number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Capital Stock of all such Persons is validly issued, fully paid and, in the case
of the Borrower or any Domestic Subsidiary, non-assessable and is owned by the
Consolidated Parties, directly or indirectly, in the manner set forth on
Schedule 6.13B, free and clear of all Liens (other than those arising under or
contemplated in connection with the Credit Documents). Other than as set forth
in Schedule 6.13B, neither the Borrower nor any of its Subsidiaries has
outstanding any securities convertible into or exchangeable for its Capital
Stock nor does any such Person have outstanding any rights to subscribe for or
to purchase or any options for the purchase of, or any agreements

                                       71

<PAGE>   77

providing for the issuance (contingent or otherwise) of, or any calls,
commitments or claims of any character relating to its Capital Stock. Schedule
6.13B may be updated from time to time by the Borrower by giving written notice
thereof to the Agent.

                  6.14 GOVERNMENTAL REGULATIONS, ETC.

                  (a) None of the transactions contemplated by this Credit
         Agreement (including, without limitation, the direct or indirect use of
         the proceeds of the Loans) will violate or result in a violation of the
         Securities Act, the Securities Exchange Act or any of Regulations U and
         X. If requested by any Lender or the Agent, the Borrower will furnish
         to the Agent and each Lender a statement, in conformity with the
         requirements of FR Form U-1 referred to in Regulation U, that no part
         of the Letters of Credit or proceeds of the Loans will be used,
         directly or indirectly, for the purpose of "buying" or "carrying" any
         "margin stock" within the meaning of Regulations U and X, or for the
         purpose of purchasing or carrying or trading in any securities.

                  (b) None of the Consolidated Parties is (i) an "investment
         company", or a company "controlled" by "investment company", within the
         meaning of the Investment Company Act of 1940, as amended, (ii) a
         "holding company" as defined in, or otherwise subject to regulation
         under, the Public Utility Holding Company Act of 1935, as amended or
         (iii) subject to regulation under any other Federal or state statute or
         regulation which limits its ability to incur Indebtedness.

                  6.15 PURPOSE OF LOANS AND LETTERS OF CREDIT.

         The proceeds of the Loans hereunder shall be used solely by the
Borrower to effect the Refinancing, to pay fees and expenses related to the
Refinancing and to provide for working capital and general corporate purposes of
the Borrower and its Subsidiaries (including, without limitation, Permitted
Acquisitions). The Letters of Credit shall be used only for or in connection
with appeal bonds, reimbursement obligations arising in connection with surety
and reclamation bonds, reinsurance, domestic or international trade transactions
and obligations not otherwise aforementioned relating to transactions entered
into by the applicable account party for general corporate purposes in the
ordinary course of business.

                  6.16 ENVIRONMENTAL MATTERS.

         Except as disclosed and described in Schedule 6.16 attached hereto or
as would not reasonably be expected to have a Material Adverse Effect:

                  (a) Each of the Real Properties and all operations at the Real
         Properties are in compliance with all applicable Environmental Laws,
         there is no violation of any Environmental Law with respect to the Real
         Properties or the Businesses, and there are no conditions relating to
         the Real Properties or the Businesses that could reasonably be expected
         to give rise to liability under any applicable Environmental Laws.

                                       72

<PAGE>   78

                  (b) None of the Real Properties contains, or has previously
         contained, any Materials of Environmental Concern at, on or under the
         Real Properties in amounts or concentrations that constitute or
         constituted a violation of, or could reasonably be expected to give
         rise to liability under, Environmental Laws.

                  (c) No Consolidated Party has received any written or verbal
         notice of, or inquiry from any Governmental Authority regarding, any
         violation, alleged violation, non-compliance, liability or potential
         liability regarding environmental matters or compliance with
         Environmental Laws with regard to any of the Real Properties or the
         Businesses that remains unresolved, nor does any Executive Officer of
         any Credit Party have knowledge or reason to believe that any such
         notice will be received or is being threatened.

                  (d) Materials of Environmental Concern have not been
         transported or disposed of from the Real Properties, or generated,
         treated, stored or disposed of at, on or under any of the Real
         Properties or any other location, in each case by or on behalf of any
         Consolidated Party in violation of, or in a manner that could
         reasonably be expected to give rise to liability under, any applicable
         Environmental Law.

                  (e) No judicial proceeding or governmental or administrative
         action is pending or, to the best knowledge of the Executive Officers
         of the Credit Parties, threatened, under any Environmental Law to which
         any Consolidated Party is or will be named as a party, nor are there
         any consent decrees or other decrees, consent orders, administrative
         orders or other orders, or other administrative or judicial
         requirements outstanding under any Environmental Law with respect to
         the Consolidated Parties, the Real Properties or the Businesses.

                  (f) There has been no release, or threat of release, of
         Materials of Environmental Concern at or from the Real Properties, or
         arising from or related to the operations (including, without
         limitation, disposal) of any Consolidated Party in connection with the
         Real Properties or otherwise in connection with the Businesses, in
         violation of or in amounts or in a manner that could give rise to
         liability under Environmental Laws.

                  6.17 INTELLECTUAL PROPERTY.

         Each Consolidated Party owns, or has the legal right to use, all
patents, trademarks, tradenames, copyrights, technology, know-how and processes
(the "Intellectual Property") necessary for each of them to conduct its business
as currently conducted except for those the failure to own or have such legal
right to use could not reasonably be expected to have a Material Adverse Effect.
As of the Closing Date, set forth on Schedule 6.17 is a list of all Intellectual
Property registered with the United States Copyright Office or the United States
Patent and Trademark Office and owned by each Consolidated Party or that any
Consolidated Party has the right to use. Except as provided on Schedule 6.17, no
claim has been asserted and is pending by any Person challenging or questioning
the use of any such Intellectual Property or the validity or effectiveness of
any such Intellectual Property, nor does any Credit Party know of any such
claim, and, to the knowledge of the Executive Officers of the Credit Parties,
the use of such Intellectual Property by any Consolidated Party does not
infringe on the rights of any Person, except for such claims and

                                       73

<PAGE>   79

infringements that, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

                  6.18 SOLVENCY.

         Each Credit Party is Solvent.

                  6.19 INVESTMENTS.

         All Investments of each Consolidated Party are Permitted Investments.

                  6.20 BUSINESS LOCATIONS.

         Set forth on Schedule 6.20(a) is a list of all Real Properties located
in the United States as of the Initial Funding Date. Set forth on Schedule
6.20(b) is a list of all locations where any tangible personal property of a
Consolidated Party is located as of the Initial Funding Date. Set forth on
Schedule 6.20(c) is the chief executive office and principal place of business
of each Consolidated Party as of the Initial Funding Date.

                  6.21 DISCLOSURE.

         Neither this Credit Agreement nor any financial statements delivered to
the Lenders nor any other document, certificate or statement furnished to the
Lenders by or on behalf of any Consolidated Party in connection with the
transactions contemplated hereby contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements
contained therein or herein not misleading.

                  6.22 NO BURDENSOME RESTRICTIONS.

         No Consolidated Party is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any
provision of any applicable law, rule or regulation which, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect.

                  6.23 BROKERS' FEES.

         No Consolidated Party has any obligation to any Person in respect of
any finder's, broker's, investment banking or other similar fee in connection
with any of the transactions contemplated under the Credit Documents.

                  6.24 LABOR MATTERS.

         There are no collective bargaining agreements or Multiemployer Plans
covering the employees of a Consolidated Party as of the Initial Funding Date,
and none of the Consolidated Parties has suffered any strikes, walkouts, work
stoppages or other material labor difficulty within

                                       74

<PAGE>   80

the last five years except for any of the foregoing that individually or in the
aggregate could not be reasonably expected to have a Material Adverse Effect.

                  6.25 NATURE OF BUSINESS.

         As of the Closing Date, the Consolidated Parties are engaged in the
business of manufacturing and distributing medical urological devices.

                  6.26 YEAR 2000 COMPLIANCE.

         Each of the Credit Parties has (i) completed a review and assessment of
all areas within its and each of its Subsidiaries' businesses and operations
(including those affected by suppliers, vendors and customers) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications may not be able to recognize and properly perform date-sensitive
functions after December 31, 1999), (ii) developed a plan and timeline for
addressing the Year 2000 Problem on a timely basis, and (iii) substantially
completed implementation of that plan in accordance with that timetable. The
Year 2000 Problem has not resulted in, and each Credit Party believes that the
Year 2000 Problem will not result in, a Material Adverse Effect.

                                    SECTION 7

                              AFFIRMATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that, so long as this
Credit Agreement is in effect or any amounts payable hereunder or under any
other Credit Document shall remain outstanding or any Letter of Credit is
outstanding, and until all of the Commitments hereunder shall have terminated:

                  7.1 INFORMATION COVENANTS.

         The Credit Parties will furnish, or cause to be furnished, to the Agent
and each of the Lenders:

                  (a) Annual Financial Statements. As soon as available, and in
         any event within 90 days (or, in the case of fiscal year 1999, 120
         days) after the close of each fiscal year of the Consolidated Parties,
         a consolidated balance sheet and income statement of the Consolidated
         Parties as of the end of such fiscal year, together with related
         consolidated statements of retained earnings and cash flows for such
         fiscal year, in each case setting forth in comparative form
         consolidated figures for the preceding fiscal year, all such financial
         information described above to be in reasonable form and detail and
         audited by independent certified public accountants of recognized
         national standing reasonably acceptable to the Agent and whose opinion
         shall be to the effect that such financial statements have been
         prepared in accordance with GAAP (except for changes with which such
         accountants concur) and shall not be limited as to the scope of the
         audit or qualified as to the status of the Consolidated Parties as a
         going concern or any other material qualifications or exceptions.

                                       75

<PAGE>   81

                  (b) Quarterly Financial Statements. As soon as available, and
         in any event within 45 days after the close of each fiscal quarter of
         the Consolidated Parties (other than the fourth fiscal quarter, in
         which case 90 days (or, in the case of fiscal year 1999, 120 days)
         after the end thereof), a consolidated and consolidating balance sheet
         and income statement of the Consolidated Parties as of the end of such
         fiscal quarter, together with related consolidated and consolidating
         statements of retained earnings and cash flows for such fiscal quarter,
         in each case setting forth in comparative form consolidated and
         consolidating figures for the corresponding period of the preceding
         fiscal year, all such financial information described above to be in
         reasonable form and detail and reasonably acceptable to the Agent, and
         accompanied by a certificate of an Executive Officer of the Borrower to
         the effect that such quarterly financial statements fairly present in
         all material respects the financial condition of the Consolidated
         Parties and have been prepared in accordance with GAAP, subject to
         changes resulting from audit and normal year-end audit adjustments.

                  (c) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of an Executive Officer of the Borrower substantially in
         the form of Exhibit 7.1(c), (i) demonstrating compliance with the
         financial covenants contained in Section 7.11 by calculation thereof as
         of the end of each such fiscal period and (ii) stating that no Default
         or Event of Default exists, or if any Default or Event of Default does
         exist, specifying the nature and extent thereof and what action the
         Credit Parties propose to take with respect thereto.

                  (d) Annual Business Plan and Budgets. By March 1 of each
         fiscal year of the Borrower, an annual (with quarterly break out)
         business plan and budget of the Consolidated Parties for such fiscal
         year containing, among other things, pro forma financial statements.

                  (e) Compliance With Certain Provisions of the Credit
         Agreement. Within 90 days after the end of each fiscal year of the
         Credit Parties, a certificate containing information regarding (i) the
         calculation of Excess Cash Flow and (ii) the amount of all Asset
         Dispositions, Debt Issuances and Equity Issuances that were made during
         the prior fiscal year.

                  (f) Accountant's Certificate. Within the period for delivery
         of the annual financial statements provided in Section 7.1(a), a
         certificate of the accountants conducting the annual audit stating that
         they have reviewed this Credit Agreement as it relates to accounting
         and other financial matters and stating further whether, in the course
         of their audit, they have become aware of any Default or Event of
         Default and, if any such Default or Event of Default exists, specifying
         the nature and extent thereof, provided that such accountants shall not
         be liable by reason of any failure to obtain knowledge of any such
         Default or Event of Default that would not be disclosed in the course
         of their audit examination; provided further, that no such certificate
         shall be required if the Borrower has used its best efforts to obtain
         such a certificate and such accountants are unwilling to provide such a
         certificate and other independent certified public accountants of
         recognized national standing are unwilling to provide such a
         certificate.

                                       76

<PAGE>   82

                  (g) Auditor's Reports. Promptly upon receipt thereof, a copy
         of any other report or "management letter" submitted by independent
         accountants to any Consolidated Party in connection with any annual,
         interim or special audit of the books of such Person.

                  (h) Reports. Promptly upon transmission or receipt thereof,
         (i) copies of any filings and registrations with, and reports to or
         from, the Securities and Exchange Commission, or any successor agency,
         and copies of all financial statements, proxy statements, notices and
         reports as any Consolidated Party shall send to its shareholders (in
         their capacity as shareholders) or to a holder of any Indebtedness owed
         by any Consolidated Party in its capacity as such a holder and (ii)
         upon the request of the Agent, all reports and written information to
         and from the United States Environmental Protection Agency, or any
         state or local agency responsible for environmental matters, the United
         States Occupational Health and Safety Administration, or any state or
         local agency responsible for health and safety matters, or any
         successor agencies or authorities concerning environmental, health or
         safety matters.

                  (i) Notices. Upon any Executive Officer of a Credit Party
         obtaining knowledge thereof, the Credit Parties will give written
         notice to the Agent immediately of (i) the occurrence of an event or
         condition consisting of a Default or Event of Default, specifying the
         nature and existence thereof and what action the Credit Parties propose
         to take with respect thereto, and (ii) the occurrence of any of the
         following with respect to any Consolidated Party (A) the pendency or
         commencement of any litigation, arbitral or governmental proceeding
         against such Person which if adversely determined is likely to have a
         Material Adverse Effect or (B) the institution of any proceedings
         against such Person with respect to, or the receipt of notice by such
         Person of potential liability or responsibility for violation, or
         alleged violation of any Federal, state or local law, rule or
         regulation, including but not limited to, Environmental Laws, the
         violation of which could reasonably be expected to have a Material
         Adverse Effect.

                  (j) ERISA. Upon any Executive Officer of a Credit Party
         obtaining knowledge thereof, the Credit Parties will give written
         notice to the Agent promptly (and in any event within five Business
         Days) of: (i) any event or condition, including, but not limited to,
         any Reportable Event, that constitutes, or might reasonably lead to, an
         ERISA Event; (ii) with respect to any Multiemployer Plan, the receipt
         of notice as prescribed in ERISA or otherwise of any withdrawal
         liability assessed against the Credit Parties or any ERISA Affiliates,
         or of a determination that any Multiemployer Plan is in reorganization
         or insolvent (both within the meaning of Title IV of ERISA); (iii) the
         failure to make full payment on or before the due date (including
         extensions) thereof of all amounts which any Consolidated Party or any
         ERISA Affiliate is required to contribute to each Plan pursuant to its
         terms and as required to meet the minimum funding standard set forth in
         ERISA and the Code with respect thereto; or (iv) any change in the
         funding status of any Plan that could reasonably be expected to have a
         Material Adverse Effect, together with a description of any such event
         or condition or a copy of any such notice and a statement by an
         Executive Officer of the Borrower briefly setting forth the details
         regarding such event, condition, or notice, and the action, if any,
         which has been or is being taken or is proposed to be taken by the
         Credit Parties with respect thereto. Promptly upon request, the Credit
         Parties shall

                                       77

<PAGE>   83

         furnish the Agent and the Lenders with such additional information
         concerning any Plan as may be reasonably requested, including, but not
         limited to, copies of each annual report/return (Form 5500 series), as
         well as all schedules and attachments thereto required to be filed with
         the Department of Labor and/or the Internal Revenue Service pursuant to
         ERISA and the Code, respectively, for each "plan year" (within the
         meaning of Section 3(39) of ERISA).

                  (k) Environmental. Upon the written request of the Agent, (i)
         based upon the reasonable belief that there has been a violation of
         Environmental Law or a release of Materials of Environmental Concern at
         a Real Property which is reasonably likely to have a Material Adverse
         Effect or (ii) at any time during the existence of an Event of Default,
         upon the written request of the Agent, the Credit Parties will furnish
         or cause to be furnished to the Agent, at the Credit Parties' expense,
         a report of an environmental assessment of reasonable scope, form and
         depth, (including, where appropriate, invasive soil or groundwater
         sampling) by a consultant reasonably acceptable to the Agent as to the
         nature and extent of the presence of any Materials of Environmental
         Concern on any Real Properties (as defined in Section 6.16) and as to
         the compliance by any Consolidated Party with Environmental Laws at
         such Real Properties. If the Credit Parties fail to deliver such an
         environmental report within seventy-five (75) days after receipt of
         such written request then the Agent may arrange for same, and the
         Consolidated Parties hereby grant to the Agent and their
         representatives access to the Real Properties to reasonably undertake
         such an assessment (including, where appropriate, invasive soil or
         groundwater sampling). The reasonable cost of any assessment arranged
         for by the Agent pursuant to this provision will be payable by the
         Credit Parties on demand and added to the obligations secured by the
         Collateral Documents.

                  (l) Additional Patents and Trademarks. At the time of delivery
         of the financial statements and reports provided for in Section 7.1(a),
         a report signed by an Executive Officer of the Borrower setting forth
         (i) a list of registration numbers for all patents, trademarks, service
         marks, tradenames and copyrights awarded to any Consolidated Party
         since the last day of the immediately preceding fiscal year and (ii) a
         list of all patent applications, trademark applications, service mark
         applications, trade name applications and copyright applications
         submitted by any Consolidated Party since the last day of the
         immediately preceding fiscal year and the status of each such
         application, all in such form as shall be reasonably satisfactory to
         the Agent.

                  (m) Other Information. With reasonable promptness upon any
         such request, such other information regarding the business, properties
         or financial condition of any Consolidated Party as the Agent or the
         Required Lenders may reasonably request.

                  7.2 PRESERVATION OF EXISTENCE AND FRANCHISES.

         Except as a result of or in connection with a dissolution, merger or
disposition of a Subsidiary not prohibited by Section 8.4 or Section 8.5, each
Credit Party will, and will cause each of its Subsidiaries to, do all things
necessary to preserve and keep in full force and effect its existence, rights,
franchises and authority, except (with respect to rights, franchises and
authority

                                       78

<PAGE>   84

only) where the failure to do so would not have or be reasonably expected to
have a Material Adverse Effect.

                  7.3 BOOKS AND RECORDS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
keep complete and accurate books and records of its transactions in accordance
with good accounting practices on the basis of GAAP (including the establishment
and maintenance of appropriate reserves).

                  7.4 COMPLIANCE WITH LAW.

         Each Credit Party will, and will cause each of its Subsidiaries to,
comply with all laws, rules, regulations and orders, and all applicable
restrictions imposed by all Governmental Authorities, applicable to it and its
Property if noncompliance with any such law, rule, regulation, order or
restriction could reasonably be expected to have a Material Adverse Effect.

                  7.5 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
pay, settle or discharge (a) all taxes, assessments and governmental charges or
levies imposed upon it, or upon its income or profits, or upon any of its
properties, before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies) which, if unpaid, might
give rise to a Lien upon any of its properties, and (c) except as prohibited
hereunder, all of its other Indebtedness as it shall become due; provided,
however, that (i) no Consolidated Party shall be required to pay any such tax,
assessment, charge, levy, claim or Indebtedness which is being contested in good
faith by appropriate proceedings and as to which adequate reserves therefor have
been established in accordance with GAAP, unless the failure to make any such
payment (A) would give rise to an immediate right to foreclose on a Lien
securing such amounts or (B) could reasonably be expected to have a Material
Adverse Effect and (ii) no Consolidated Party shall be required to pay any
Indebtedness if the aggregate amount of such unpaid Indebtedness does not exceed
$1,500,000 (taking into account applicable insurance or indemnitees to the
extent the provider of such insurance or indemnity has the financial ability to
support its obligations with respect thereto and is not disputing the same).

                  7.6 INSURANCE.

                  (a) Each Credit Party will, and will cause each of its
         Subsidiaries to, at all times maintain in full force and effect
         insurance (including worker's compensation insurance, liability
         insurance, casualty insurance and business interruption insurance) in
         such amounts, covering such risks and liabilities and with such
         deductibles or self-insurance retentions as are in accordance with
         normal industry practice (or as otherwise required by the Collateral
         Documents). The Agent shall be named as loss payee or mortgagee, as its
         interest may appear, and/or additional insured with respect to any such
         insurance providing coverage in respect of any Collateral, and each
         provider of any such insurance shall agree, by endorsement upon the
         policy or policies issued by it or by independent instruments furnished
         to the Agent, that it will give the Agent thirty (30) days prior
         written notice

                                       79

<PAGE>   85

         before any such policy or policies shall be altered or canceled. The
         present insurance coverage of the Consolidated Parties is outlined as
         to carrier, policy number, expiration date, type and amount on Schedule
         7.6.

                  (b) In the event that the Consolidated Parties receive Net
         Cash Proceeds in excess of $500,000 in aggregate amount during any
         fiscal year of the Consolidated Parties ("Excess Proceeds") on account
         of any loss of, damage to or destruction of, or any condemnation or
         other taking for public use of, any Property of the Consolidated
         Parties (with respect to any Consolidated Party, an "Involuntary
         Disposition"), the Credit Parties shall, within the period of 365 days
         following the date of receipt of such Excess Proceeds, apply (or cause
         to be applied) an amount equal to such Excess Proceeds to (i) make
         Eligible Reinvestments (including but not limited to the repair or
         replacement of the related Property) or (ii) prepay the Loans (and cash
         collateralize LOC Obligations) in accordance with the terms of Section
         3.3(b)(iii)(B); provided, however, that such Person shall not undertake
         replacement or restoration of such Property unless, after giving pro
         forma effect to any Funded Indebtedness to be incurred in connection
         with such replacement or restoration, the Credit Parties would be in
         compliance with the financial covenants set forth in Section 7.11(a)
         and (b) as of the most recent fiscal quarter end preceding the date of
         determination with respect to which the Agent has received the Required
         Financial Information (assuming, for purposes hereof, that such Funded
         Indebtedness was incurred as of the first day of the four
         fiscal-quarter period ending as of such fiscal quarter end). All
         insurance proceeds shall be subject to the security interest of the
         Agent (for the ratable benefit of the Lenders) under the Collateral
         Documents. Pending final application of any Excess Proceeds, the Credit
         Parties may apply such Excess Proceeds to temporarily reduce the
         Revolving Loans or to make Permitted Investments.

                  7.7 MAINTENANCE OF PROPERTY.

         Each Credit Party will, and will cause each of its Subsidiaries to,
maintain and preserve its properties and equipment material to the conduct of
its business in good repair, working order and condition, normal wear and tear
and casualty and condemnation excepted, and will make, or cause to be made, in
such properties and equipment from time to time all repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto as may
be needed or proper, to the extent and in the manner customary for companies in
similar businesses.

                  7.8 PERFORMANCE OF OBLIGATIONS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
perform in all material respects all of its obligations under the terms of all
material agreements, indentures, mortgages, security agreements or other debt
instruments to which it is a party or by which it is bound, unless the failure
to do so will not have or be reasonably expected to have a Material Adverse
Effect.

                  7.9 USE OF PROCEEDS.

         The Borrower will use the proceeds of the Loans and will use the
Letters of Credit solely for the purposes set forth in Section 6.15.

                                       80

<PAGE>   86
                  7.10 AUDITS/INSPECTIONS.

         Upon reasonable notice and during normal business hours (but absent the
existence of an Event of Default or other reasonable cause, not more than twice
during any fiscal year), each Credit Party will, and will cause each of its
Subsidiaries to, permit representatives appointed by the Agent, including,
without limitation, independent accountants, agents, attorneys, and appraisers
to visit and inspect its property, including its books and records, its accounts
receivable and inventory, its facilities and its other business assets, and to
make photocopies or photographs thereof and to write down and record any
information such representative obtains and shall permit the Agent or its
representatives to investigate and verify the accuracy of information provided
to the Lenders and to discuss all such matters with the officers, employees and
representatives of such Person. The Credit Parties agree that the Agent, and its
representatives, may conduct an annual audit of the Collateral, at the expense
of the Credit Parties.

                  7.11 FINANCIAL COVENANTS.

                  (a) Leverage Ratio. The Leverage Ratio, as of the last day of
         each fiscal quarter of the Consolidated Parties indicated below, shall
         be less than or equal to the ratio indicated with respect to such date:

                FISCAL QUARTER END                        LEVERAGE RATIO
                  March 31, 2000
                  June 30, 2000                            3.50 to 1.00
                September 30, 2000
                December 31, 2000
                  March 31, 2001
                  June 30, 2001                            3.00 to 1.00
                September 30, 2001
            December 31, 2001 and each
          fiscal quarter-end thereafter                    2.50 to 1.00

                  (b) Interest Coverage Ratio. The Interest Coverage Ratio, as
         of the last day of each fiscal quarter of the Consolidated Parties
         indicated below, shall be greater than or equal to the ratio indicated
         with respect to such date:

               FISCAL QUARTER END                   INTEREST COVERAGE RATIO
                 March 31, 2000
                  June 30, 2000                          2.00 to 1.00
                September 30, 2000
                December 31, 2000
                 March 31, 2001
                  June 30, 2001                          2.50 to 1.00
                September 30, 2001
            December 31, 2001 and each                   3.00 to 1.00

                                       81

<PAGE>   87

                   fiscal quarter-end thereafter

                  (c) Fixed Charge Coverage Ratio. The Fixed Charge Coverage
         Ratio, as of the last day of each fiscal quarter of the Consolidated
         Parties indicated below, shall be greater than or equal to the ratio
         indicated with respect to such date:

             FISCAL QUARTER END                 FIXED CHARGE COVERAGE RATIO
       June 30, 2000 and each fiscal
           quarter-end thereafter                       1.00 to 1.00

                  7.12 NEW SUBSIDIARIES.

         As soon as practicable and in any event within 30 days after any Person
becomes a direct or indirect Subsidiary of the Parent, the Borrower shall
provide the Agent with written notice thereof setting forth information in
reasonable detail describing all of the assets of such Person and shall (a) if
such Person is a Domestic Subsidiary, (i) cause such Person to execute a Joinder
Agreement in substantially the same form as Exhibit 7.12 and (ii) cause 100% of
the issued and outstanding Capital Stock of such Person to be delivered to the
Agent (together with undated stock powers signed in blank) and pledged to the
Agent pursuant to an appropriate pledge agreement(s) in substantially the form
of the Pledge Agreement and otherwise in form acceptable to the Agent, (b) if
such Person is a Material Foreign Subsidiary, cause 65% of the issued and
outstanding Capital Stock entitled to vote (within the meaning of Treas. Reg.
Section 1.956-2(c)(2)) and 100% of the issued and outstanding Capital Stock not
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) of
such Person to be delivered to the Agent (together with undated stock powers
signed in blank (unless, with respect to a Material Foreign Subsidiary, such
stock powers are deemed unnecessary by the Agent in its reasonable discretion
under the law of the jurisdiction of incorporation of such Person)) and pledged
to the Agent pursuant to an appropriate pledge agreement(s) in substantially the
form of the Pledge Agreement and otherwise in form acceptable to the Agent, (c)
if such Person is a Domestic Subsidiary, cause such Person to deliver to the
Agent with respect to any real Property owned or leased by such Person and which
is not Excluded Property, documents, instruments and other items of the types
required to be delivered pursuant to Section 5.2(e) all in form, content and
scope reasonably satisfactory to the Agent and (d) deliver such other
documentation as the Agent may reasonably request in connection with the
foregoing, including, without limitation, appropriate UCC-1 financing
statements, real estate title insurance policies, environmental reports,
landlord's waivers, certified resolutions and other organizational and
authorizing documents of such Person, favorable opinions of counsel to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to above and the
perfection of the Agent's liens thereunder) and other items of the types
required to be delivered pursuant to Section 5.3(b), (c), (d) and (e), all in
form, content and scope reasonably satisfactory to the Agent.

                  7.13 PLEDGED ASSETS.

         Each Credit Party will (i) cause all of its owned and leased real and
personal Property other than Excluded Property to be subject at all times to
first priority, perfected and, in the case

                                       82

<PAGE>   88

of real Property (whether leased or owned), title insured Liens in favor of the
Agent to secure the Credit Party Obligations pursuant to the terms and
conditions of the Collateral Documents or, with respect to any such Property
acquired subsequent to the Initial Funding Date, such other additional security
documents as the Agent shall reasonably request, subject in any case to
Permitted Liens and (ii) deliver such other documentation as the Agent may
reasonably request in connection with the foregoing, including, without
limitation, appropriate UCC-1 financing statements, real estate title insurance
policies, surveys, environmental reports, landlord's waivers, certified
resolutions and other organizational and authorizing documents of such Person,
favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
documentation referred to above and the perfection of the Agent's liens
thereunder) and other items of the types required to be delivered pursuant to
Section 5.2(d) and (e), all in form, content and scope reasonably satisfactory
to the Agent. Without limiting the generality of the above, the Borrower will
cause (A) 100% of the issued and outstanding Capital Stock of the Borrower, (B)
100% of the issued and outstanding Capital Stock of each Domestic Subsidiary and
(C) 65% of the issued and outstanding Capital Stock entitled to vote (within the
meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and
outstanding Capital Stock not entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) in each Material Foreign Subsidiary to be subject at
all times to a first priority, perfected Lien in favor of the Agent pursuant to
the terms and conditions of the Collateral Documents or such other security
documents as the Agent shall reasonably request.

                  7.14 INTEREST RATE PROTECTION.

         At all times from the date 90 days after the Initial Funding Date, the
Credit Parties shall cause the Borrower to maintain protection against
fluctuations in interest rates pursuant to one or more Hedging Agreements
reasonably satisfactory to the Agent and providing coverage in a notional amount
equal to at least $30,000,000 for a period of three years from the Initial
Funding Date.

                  7.15 YEAR 2000 COMPLIANCE.

         The Credit Parties will promptly notify the Agent in the event any
Credit Party discovers or determines that the Year 2000 Problem has resulted in,
or is reasonably expected to result in, a Material Adverse Effect.

                                    SECTION 8

                               NEGATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that, so long as this
Credit Agreement is in effect or any amounts payable hereunder or under any
other Credit Document shall remain outstanding or any Letter of Credit is
outstanding, and until all of the Commitments hereunder shall have terminated:

                                       83

<PAGE>   89

                  8.1 INDEBTEDNESS.

         The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Indebtedness, except:

                  (a) Indebtedness arising under this Credit Agreement and the
         other Credit Documents;

                  (b) Indebtedness of the Borrower and its Subsidiaries set
         forth in Schedule 8.1(b) (and renewals, refinancings and extensions
         thereof on terms and conditions not in excess of that outstanding as of
         the date of such renewal, refinancing, or extension);

                  (c) purchase money Indebtedness (including obligations in
         respect of Capital Leases or Synthetic Leases) hereafter incurred by
         the Borrower or any of its Subsidiaries to finance the purchase of
         fixed assets provided that (i) the total of all such Indebtedness for
         all such Persons taken together shall not exceed an aggregate principal
         amount of $1,000,000 at any one time outstanding; (ii) such
         Indebtedness when incurred shall not exceed the purchase price of the
         asset(s) financed; and (iii) no such Indebtedness shall be refinanced
         for a principal amount in excess of the principal balance outstanding
         thereon at the time of such refinancing;

                  (d) obligations of the Borrower in respect of Hedging
         Agreements entered into in order to manage existing or anticipated
         interest rate or exchange rate risks and not for speculative purposes;

                  (e) intercompany Indebtedness arising out of loans, advances
         and Guaranty Obligations permitted under Section 8.6;

                  (f) preferred Capital Stock issued by the Parent;

                  (g) Indebtedness of the Borrower or any Domestic Subsidiary in
         respect of performance, surety or appeal bonds in the ordinary course
         of business;

                  (h) additional unsecured Indebtedness of the Borrower or any
         Domestic Subsidiary in an aggregate principal amount not to exceed
         $1,000,000 at any time outstanding for all such Persons taken together;

                  (i) Indebtedness of any Foreign Subsidiary to any other
         Foreign Subsidiary;

                  (j) additional Indebtedness of Foreign Subsidiaries in an
         aggregate principal amount not to exceed the Dollar Equivalent of
         $2,000,000 at any time outstanding for all such Persons taken together;

                  (k) subject to the terms of Section 8.6(j)(vii), Indebtedness
         of the Borrower or any Domestic Subsidiary assumed in connection with a
         Permitted Acquisition (including

                                       84

<PAGE>   90

         renewals, refinancings or extensions of such Indebtedness in a
         principal amount not in excess of that outstanding as of the date of
         such renewal, refinancing or extension), provided that (i) such
         Indebtedness is not incurred in anticipation of or in connection with
         such Permitted Acquisition and (ii) the aggregate principal amount of
         all such Indebtedness shall not exceed $10,000,000 at any one time
         outstanding;

                  (l) Indebtedness of the Borrower or any of its Subsidiaries
         arising from agreements providing for indemnification, adjustment of
         purchase price or similar obligations (or from guarantees or letters of
         credit, surety bonds or performance bonds securing any obligations of a
         Credit Party or any of its Subsidiaries pursuant to such agreements),
         in any case incurred in connection with any Asset Disposition permitted
         under Section 8.5, provided that such Indebtedness in respect of any
         such Asset Disposition shall not exceed the gross proceeds actually
         received by the Borrower and its Subsidiaries in connection therewith;
         and

                  (m) additional unsecured subordinated Indebtedness of the
         Parent or the Borrower to any member of the Initial Investor Group,
         provided that (i) such Indebtedness shall be subordinated in right of
         payment to the Credit Party Obligation on substantially the terms and
         conditions set forth in Schedule 8.1(m) and (ii) the aggregate
         principal amount of all such Indebtedness shall not exceed $30,000,000
         at any one time outstanding.

                  8.2 LIENS.

         The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Lien with respect to any of its
Property, whether now owned or after acquired, except for:

                  (a) Liens in favor of the Agent to secure the Credit Party
         Obligations;

                  (b) Liens (other than Liens created or imposed under ERISA)
         for taxes, assessments or governmental charges or levies not yet due or
         Liens for taxes being contested in good faith by appropriate
         proceedings for which adequate reserves determined in accordance with
         GAAP have been established (and as to which the Property subject to any
         such Lien is not yet subject to foreclosure, sale or loss on account
         thereof);

                  (c) statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and suppliers and other Liens
         imposed by law or pursuant to customary reservations or retentions of
         title arising in the ordinary course of business, provided that such
         Liens secure only amounts not yet due and payable or, if due and
         payable, are unfiled and no other action has been taken to enforce the
         same or are being contested in good faith by appropriate proceedings
         for which adequate reserves determined in accordance with GAAP have
         been established (and as to which the Property subject to any such Lien
         is not yet subject to foreclosure, sale or loss on account thereof);

                                       85

<PAGE>   91

                  (d) Liens (other than Liens created or imposed under ERISA)
         incurred or deposits made by any Consolidated Party in the ordinary
         course of business in connection with workers' compensation,
         unemployment insurance and other types of social security, or to secure
         the performance of tenders, statutory obligations, bids, leases,
         government contracts, performance and return-of-money bonds and other
         similar obligations (exclusive of obligations for the payment of
         borrowed money);

                  (e) Liens in connection with attachments or judgments
         (including judgment or appeal bonds) provided that the judgments
         secured shall not constitute an Event of Default;

                  (f) easements, rights-of-way, restrictions (including zoning
         restrictions), minor defects or irregularities in title and other
         similar charges or encumbrances not, in any material respect, impairing
         the use of the encumbered Property for its intended purposes;

                  (g) Liens on Property of any Person securing purchase money
         Indebtedness (including Capital Leases and Synthetic Leases) of such
         Person permitted under Section 8.1(c), provided that any such Lien
         attaches to such Property concurrently with or within 90 days after the
         acquisition thereof;

                  (h) Liens on Property of a Foreign Subsidiary securing
         Indebtedness of such Person permitted under Section 8.1(j);

                  (i) Liens on Property securing Indebtedness permitted under
         Section 8.1(k), provided that such Liens are not incurred in
         anticipation of or in connection with a Permitted Acquisition and do
         not extend to cover any Property not acquired in such Permitted
         Acquisition;

                  (j) leases or subleases granted to others not interfering in
         any material respect with the business of any Consolidated Party;

                  (k) any interest of title of a lessor under, and Liens arising
         from UCC financing statements (or equivalent filings, registrations or
         agreements in foreign jurisdictions) relating to, leases permitted by
         this Credit Agreement;

                  (l) Liens in favor of customs and revenue authorities arising
         as a matter of law to secure payment of customs duties in connection
         with the importation of goods;

                  (m) Liens deemed to exist in connection with Investments in
         repurchase agreements permitted under Section 8.6;

                  (n) normal and customary rights of setoff upon deposits of
         cash in favor of banks or other depository institutions;

                  (o) Liens of a collection bank arising under Section 4-210 of
         the Uniform Commercial Code on items in the course of collection;

                                       86

<PAGE>   92

                  (p) Liens of sellers of goods to the Borrower and any of its
         Subsidiaries arising under Article 2 of the Uniform Commercial Code or
         similar provisions of applicable law in the ordinary course of
         business, covering only the goods sold and securing only the unpaid
         purchase price for such goods and related expenses; and

                  (q) Liens existing as of the Closing Date and set forth on
         Schedule 8.2; provided that no such Lien shall at any time be extended
         to or cover any Property other than the Property subject thereto on the
         Closing Date.

                  8.3 NATURE OF BUSINESS.

         The Credit Parties will not permit any Consolidated Party to
substantively alter the character of the business conducted by such Person as of
the Closing Date with reasonable expansions and extensions of such Business.

                  8.4 CONSOLIDATION, MERGER, DISSOLUTION, ETC.

         Except in connection with a Permitted Asset Disposition, the Credit
Parties will not permit any Consolidated Party to enter into any transaction of
merger or consolidation or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution); provided that, notwithstanding the foregoing
provisions of this Section 8.4 but subject to the terms of Sections 7.12 and
7.13, (a) the Borrower may merge or consolidate with any of its Subsidiaries
provided that the Borrower shall be the continuing or surviving corporation, (b)
any Credit Party other than the Parent or the Borrower may merge or consolidate
with any other Credit Party other than the Parent or the Borrower, (c) any
Consolidated Party which is not a Credit Party may be merged or consolidated
with or into any Credit Party other than the Parent provided that such Credit
Party shall be the continuing or surviving corporation, (d) any Consolidated
Party which is not a Credit Party may be merged or consolidated with or into any
other Consolidated Party which is not a Credit Party, (e) any Subsidiary of the
Borrower may merge with any Person that is not a Credit Party in connection with
an Asset Disposition permitted under Section 8.5, (f) the Borrower or any
Subsidiary of the Borrower may merge with any Person other than a Consolidated
Party in connection with a Permitted Acquisition provided that, if such
transaction involves the Borrower, the Borrower shall be the continuing or
surviving corporation and (g) any Wholly Owned Subsidiary of the Borrower may
dissolve, liquidate or wind up its affairs at any time provided that such
dissolution, liquidation or winding up, as applicable, could not have a Material
Adverse Effect.

                  8.5 ASSET DISPOSITIONS.

         The Credit Parties will not permit any Consolidated Party to make any
Asset Disposition other than an Excluded Asset Disposition unless (a) the
consideration paid in connection therewith shall be cash or Cash Equivalents,
(b) if such transaction is a Sale and Leaseback Transaction, such transaction is
not prohibited by the terms of Section 8.13, (c) such transaction does not
involve the sale or other disposition of a minority equity interest in any
Consolidated Party, (d) such transaction does not involve a sale or other
disposition of receivables other than receivables owned by or attributable to
other Property concurrently being disposed of in a transaction otherwise
permitted under this Section 8.5, (e) the aggregate net book value of all of the
assets sold or otherwise

                                       87

<PAGE>   93

disposed of by the Consolidated Parties in all such transactions after the
Closing Date shall not exceed $1,000,000, (f) no later than five (5) Business
Days prior to such Asset Disposition, the Borrower shall have delivered to the
Agent (i) a Pro Forma Compliance Certificate demonstrating that, upon giving
effect on a Pro Forma Basis to such transaction, the Credit Parties would be in
compliance with the financial covenants set forth in Section 7.11(a) and (b) and
(ii) a certificate of an Executive Officer of the Borrower specifying the
anticipated date of such Asset Disposition, briefly describing the assets to be
sold or otherwise disposed of and setting forth the net book value of such
assets, the aggregate consideration and the Net Cash Proceeds to be received for
such assets in connection with such Asset Disposition and (g) the Credit Parties
shall, within the period of 180 days following the consummation of such Asset
Disposition (with respect to any such Asset Disposition, the "Application
Period"), apply (or cause to be applied) an amount equal to the Net Cash
Proceeds of such Asset Disposition to (i) make Eligible Reinvestments or (ii)
prepay the Loans (and cash collateralize LOC Obligations) in accordance with the
terms of Section 3.3(b)(iii)(A). Pending final application of the Net Cash
Proceeds of any Asset Disposition, the Consolidated Parties may apply such Net
Cash Proceeds to temporarily reduce the Revolving Loans or to make Investments
in Cash Equivalents.

         Upon a sale of assets or the sale of Capital Stock of a Consolidated
Party permitted by this Section 8.5, the Agent shall (to the extent applicable)
deliver to the Credit Parties, upon the Credit Parties' request and at the
Credit Parties' expense, such documentation as is reasonably necessary to
evidence the release of the Agent's security interest, if any, in such assets or
Capital Stock, including, without limitation, amendments or terminations of UCC
financing statements, if any, the return of stock certificates, if any, and the
release of such Consolidated Party from all of its obligations, if any, under
the Credit Documents.

         8.6 INVESTMENTS.

         The Credit Parties will not permit any Consolidated Party to make any
Investments, except for:

                  (a) Investments consisting of cash and Cash Equivalents;

                  (b) Investments consisting of accounts receivable created,
         acquired or made by any Consolidated Party in the ordinary course of
         business and payable or dischargeable in accordance with customary
         trade terms or otherwise in the prudent judgment of such Consolidated
         Party;

                  (c) Investments consisting of Capital Stock, obligations,
         securities or other property received by any Consolidated Party in
         settlement of accounts receivable (created in the ordinary course of
         business) from bankrupt obligors;

                  (d) Investments existing as of the Closing Date and set forth
         in Schedule 8.6 (including additional Investments required to be made
         in connection therewith as such additional Investments are described in
         Schedule 8.6);

                                       88

<PAGE>   94

                  (e) Investments consisting of (i) loans or advances to
         directors, officers, employees and agents in the ordinary course of
         business to provide for the payment of reasonable expenses incurred by
         such persons in the performance of their responsibilities or in
         connection with any relocation and (ii) loans or advances to directors,
         officers, employees, agents, customers or suppliers that do not exceed
         $100,000 in the aggregate at any one time outstanding;

                  (f) Investments in any Credit Party other than the Parent;

                  (g) Investments in Foreign Subsidiaries in an aggregate
         principal amount (including Investments of such type set forth in
         Schedule 8.6) not to exceed the Dollar Equivalent of $1,000,000 at any
         time outstanding;

                  (h) to the extent constituting Investments, transactions
         permitted under Section 8.7;

                  (i) any Eligible Reinvestment of the proceeds of any
         Involuntary Disposition as contemplated by Section 7.6(b) or of any
         Asset Disposition as contemplated by Section 8.5(g); or

                  (j) Investments consisting of an Acquisition by the Borrower
         or any Subsidiary of the Borrower, provided that (i) the Property
         acquired (or the Property of the Person acquired) in such Acquisition
         is used or useful in the same or a similar line of business as the
         Borrower and its Subsidiaries were engaged in on the Closing Date (or
         any reasonable extensions or expansions thereof), (ii) the Agent shall
         have received all items in respect of the Capital Stock or Property
         acquired in such Acquisition required to be delivered by the terms of
         Section 7.12 and/or Section 7.13, (iii) in the case of an Acquisition
         of the Capital Stock of another Person, the board of directors (or
         other comparable governing body) of such other Person shall have duly
         approved such Acquisition, (iv) the Borrower shall have delivered to
         the Agent (A) a Pro Forma Compliance Certificate demonstrating that,
         upon giving effect to such Acquisition on a Pro Forma Basis, the Credit
         Parties would be in compliance with the financial covenants set forth
         in Section 7.11(a) and (b) and (B) a certificate of an Executive
         Officer of the Borrower demonstrating that upon giving effect to such
         Acquisition, at least 90% of Consolidated EBITDA for four
         fiscal-quarter period ending as of the most recent fiscal quarter end
         preceding the date of such transaction with respect to which the Agent
         has received the Required Financial Information shall have been audited
         in accordance with GAAP by independent certified public accountants of
         recognized national standing reasonably acceptable to the Agent (whose
         opinion shall not be limited as to the scope or qualified as to going
         concern status), (v) the representations and warranties made by the
         Credit Parties in any Credit Document shall be true and correct in all
         material respects at and as if made as of the date of such Acquisition
         (after giving effect thereto) except to the extent such representations
         and warranties expressly relate to an earlier date, (vi) after giving
         effect to such Acquisition, there shall be at least $7,000,000 of
         availability existing under the Revolving Committed Amount and (vii)
         the aggregate consideration (including cash and non-cash consideration
         and any assumption of Indebtedness, but excluding consideration
         consisting of (A) any Capital Stock of the

                                       89

<PAGE>   95

         Parent issued to the seller of the Capital Stock or Property acquired
         in such Acquisition, (B) the proceeds of any Equity Issuance by the
         Parent consummated subsequent to the Initial Funding Date to the extent
         not required to be applied to prepay of the Loans pursuant to the terms
         of Section 3.3(b)(v), (C) the proceeds of any Asset Disposition,
         Excluded Asset Disposition or Involuntary Disposition consummated
         subsequent to the Initial Funding Date, (D) the proceeds of any
         Investor Subordinated Debt and (E) the proceeds of any Equity Issuance
         by any Consolidated Party to any Credit Party or any member of the
         Initial Investor Group) paid by the Consolidated Parties shall not
         exceed (1) $5,000,000, for any single Acquisition, or (2) $10,000,000
         for all Acquisitions occurring after the Closing Date.

                  8.7 RESTRICTED PAYMENTS.

         The Credit Parties will not permit any Consolidated Party to, directly
or indirectly, declare, order, make or set apart any sum for or pay any
Restricted Payment, except (a) to make dividends or other distributions payable
to any Credit Party other than the Parent (directly or indirectly through
Subsidiaries), (b) as permitted by Section 8.8 or Section 8.9, (c) loans to the
Parent to permit the Parent to pay expenses incurred by it so long as the Parent
is in compliance with the provisions of Section 8.12, (d) loans to the Parent or
dividends to the Parent to permit the Parent to, and the Parent shall be
permitted to, (1) pay cash severance payments to employees of the Parent
following the death, retirement or termination of such employees and (2)
repurchase outstanding shares of Capital Stock of the Parent owned by employees
of the Parent following the death, retirement or termination of such employee or
purchase equity securities of the Parent from existing stockholders pursuant to
the Parent's exercise of a right of first refusal, provided that such Restricted
Payments do not exceed $500,000 in the aggregate during the term of this Credit
Agreement and (e) purchases of Capital Stock of Influence from existing
stockholders of Influence pursuant to the Exchange Agreement dated as of
December 15, 1999 between the Borrower and Urotek Ltd. provided that the
consideration for such Capital Stock is solely (except for cash issued for
fractional shares) is Capital Stock in the Parent.

                  8.8 OTHER INDEBTEDNESS.

         The Credit Parties will not permit any Consolidated Party to (i) if any
Default or Event of Default has occurred and is continuing or would be directly
or indirectly caused as a result thereof, (a) after the issuance thereof, amend
or modify any of the terms of any Indebtedness of such Consolidated Party if
such amendment or modification would add or change any terms in a manner adverse
to such Consolidated Party, or shorten the final maturity or average life to
maturity or require any payment to be made sooner than originally scheduled or
increase the interest rate applicable thereto, or (b) make (or give any notice
with respect thereto) any voluntary or optional payment or prepayment or
redemption or acquisition for value of (including without limitation, by way of
depositing money or securities with the trustee with respect thereto before due
for the purpose of paying when due), refund, refinance or exchange of any other
Indebtedness of such Consolidated Party, (ii) after the issuance thereof, amend
or modify any of the terms of the documents evidencing or governing any Investor
Subordinated Debt if such amendment or modification would add or change any
terms in a manner adverse to the Consolidated Parties, or shorten the final
maturity or average life to maturity thereof or require any payment to be made

                                       90

<PAGE>   96

sooner than originally scheduled or increase the interest rate applicable
thereto or change any subordination provision thereof, (iii) make interest
payments in respect of the Investor Subordinated Debt in violation of the
subordination provisions of the documents evidencing or governing such Investor
Subordinated Debt or (iv) make (or give any notice with respect thereto) any
voluntary or optional payment or prepayment, redemption, acquisition for value
or defeasance of (including without limitation, by way of depositing money or
securities with the trustee with respect thereto before due for the purpose of
paying when due), refund, refinance or exchange of any Investor Subordinated
Debt.

                  8.9  TRANSACTIONS WITH AFFILIATES.

         The Credit Parties will not permit any Consolidated Party to enter into
or permit to exist any transaction or series of transactions with any officer,
director, shareholder, Subsidiary or Affiliate of such Person other than (a)
advances of working capital to any Credit Party other than the Parent, (b)
transfers of cash and assets to any Credit Party other than the Parent, (c)
intercompany transactions expressly permitted by Section 8.1, Section 8.4,
Section 8.5, Section 8.6, or Section 8.7, (d) normal compensation and
reimbursement of expenses of officers and directors and (e) except as otherwise
specifically limited in this Credit Agreement, other transactions which are
entered into in the ordinary course of such Person's business on terms and
conditions substantially as favorable to such Person as would be obtainable by
it in a comparable arms-length transaction with a Person other than an officer,
director, shareholder, Subsidiary or Affiliate.

                  8.10 FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

         The Credit Parties will not permit any Consolidated Party to (i) change
its fiscal year without prior written notice to the Agent (provided that no such
change may occur if such change would materially affect the Lenders ability to
read and interpret the financial statements delivered pursuant to Section 7.1 or
make any calculation in respect of the financial covenants set forth in Section
7.11) or (ii) change its articles or certificate of incorporation or its bylaws
in any manner that would reasonably be likely to adversely affect the rights of
the Lenders.

                  8.11 LIMITATION ON RESTRICTED ACTIONS.

         The Credit Parties will not permit any Consolidated Party to, directly
or indirectly, create or otherwise cause or suffer to exist or become effective
any encumbrance or restriction on the ability of any such Person to (a) pay
dividends or make any other distributions to any Credit Party on its Capital
Stock or with respect to any other interest or participation in, or measured by,
its profits, (b) pay any Indebtedness or other obligation owed to any Credit
Party, (c) make loans or advances to any Credit Party, (d) sell, lease or
transfer any of its properties or assets to any Credit Party, or (e) act as a
Credit Party and pledge its assets pursuant to the Credit Documents or any
renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (a)-(d) above) for such
encumbrances or restrictions existing under or by reason of (i) this Credit
Agreement and the other Credit Documents, (ii) applicable law, (iii) any
document or instrument governing Indebtedness incurred pursuant to Section
8.1(c), provided that any such restriction contained therein relates only to the
asset or assets constructed or acquired in connection therewith, (iv) any
Permitted Lien or any document or instrument

                                       91

<PAGE>   97

governing any Permitted Lien, provided that any such restriction contained
therein relates only to the asset or assets subject to such Permitted Lien or
(v) customary restrictions and conditions contained in any agreement relating to
the sale of any Property permitted under Section 8.5 pending the consummation of
such sale.

                  8.12 OWNERSHIP OF SUBSIDIARIES; LIMITATIONS ON PARENT.

         Notwithstanding any other provisions of this Credit Agreement to the
contrary:

                  (a) The Credit Parties will not permit any Consolidated Party
         to (i) permit any Person (other than the Borrower or any Wholly Owned
         Subsidiary of the Borrower) to own more than 10% of the Capital Stock
         of any Subsidiary of the Borrower, except (A) to qualify directors
         where required by applicable law or to satisfy other requirements of
         applicable law with respect to the ownership of Capital Stock of
         Foreign Subsidiaries or (B) as a result of or in connection with a
         dissolution, merger, consolidation or disposition of a Subsidiary not
         prohibited by Section 8.4 or Section 8.5, (ii) permit any Subsidiary of
         the Borrower to issue or have outstanding any shares of preferred
         Capital Stock or (iii) permit, create, incur, assume or suffer to exist
         any Lien on any Capital Stock of any Subsidiary of the Borrower, except
         for Permitted Liens.

                  (b) The Parent shall not (i) hold any material assets other
         than the Capital Stock of the Borrower, (ii) have any liabilities other
         than (A) the liabilities under the Credit Documents, (B) tax
         liabilities in the ordinary course of business, (C) loans and advances
         permitted under Section 8.9 and (D) corporate, administrative and
         operating expenses in the ordinary course of business or (iii) engage
         in any business other than (A) owning the Capital Stock of the Borrower
         and activities incidental or related thereto and (B) acting as a
         Guarantor hereunder and pledging its assets to the Agent, for the
         benefit of the Lenders, pursuant to the Collateral Documents to which
         it is a party.

                  8.13 SALE LEASEBACKS.

         The Credit Parties will not permit any Consolidated Party to enter into
any Sale and Leaseback Transaction.

                  8.14 CAPITAL EXPENDITURES.

         The Credit Parties will not permit Consolidated Capital Expenditures
for any fiscal year to exceed $4,000,000, plus the unused amount available for
Consolidated Capital Expenditures under this Section 8.14 for the immediately
preceding fiscal year (excluding any carry-forward available from any prior
fiscal year).

                  8.15 NO FURTHER NEGATIVE PLEDGES.

         The Credit Parties will not permit any Consolidated Party to enter
into, assume or become subject to any agreement prohibiting or otherwise
restricting the existence of any Lien upon any of its Property in favor of the
Agent (for the benefit of the Lenders) for the purpose of securing the

                                       92

<PAGE>   98

Credit Party Obligations, whether now owned or hereafter acquired, or requiring
the grant of any security for any obligation if such Property is given as
security for the Credit Party Obligations, except (a) in connection with any
Permitted Lien or any document or instrument governing any Permitted Lien,
provided that any such restriction contained therein relates only to the asset
or assets subject to such Permitted Lien, (b) in connection with any Permitted
Lien or any document or instrument governing any Permitted Lien, provided that
any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien and (c) pursuant to customary restrictions and
conditions contained in any agreement relating to the sale of any Property
permitted under Section 8.5, pending the consummation of such sale.

                  8.16 OPERATING LEASE OBLIGATIONS.

         The Credit Parties will not permit any Consolidated Party to enter
into, assume or permit to exist any obligations for the payment of rental under
Operating Leases in respect of all Property other than automobiles provided to
sales representatives in the ordinary course of business, which in the aggregate
for all of the Consolidated Parties would exceed $500,000 in any fiscal year.

                  8.17 LIMITATION ON FOREIGN OPERATIONS.

         The Credit Parties will not permit (i) the sum of (a) the portion of
Consolidated Total Assets owned by Foreign Subsidiaries plus (b) the portion of
Consolidated Total Assets owned by the Parent, the Borrower and the Domestic
Subsidiaries and located outside the United States to exceed 20% of Consolidated
Total Assets or (ii) the portion of Consolidated EBITDA attributable to the
Foreign Subsidiaries for any four quarter period to exceed 20% of Consolidated
EBITDA for such period.

                                    SECTION 9

                                EVENTS OF DEFAULT

                  9.1 EVENTS OF DEFAULT.

         An Event of Default shall exist upon the occurrence and during the
continuance of any of the following specified events (each an "Event of
Default"):

                  (a) Payment. Any Credit Party shall

                           (i) default in the payment when due of any principal
                  of any of the Loans or of any reimbursement obligations
                  arising from drawings under Letters of Credit, or

                           (ii) default, and such default shall continue for
                  three (3) or more Business Days, in the payment when due of
                  any interest on the Loans or on any reimbursement obligations
                  arising from drawings under Letters of Credit, or of any

                                       93

<PAGE>   99

                  Fees or other amounts owing hereunder, under any of the other
                  Credit Documents or in connection herewith or therewith; or

                  (b) Representations. Any representation, warranty or statement
         made or deemed to be made by any Credit Party herein, in any of the
         other Credit Documents, or in any statement or certificate delivered or
         required to be delivered pursuant hereto or thereto shall prove untrue
         in any material respect on the date as of which it was deemed to have
         been made; or

                  (c) Covenants. Any Credit Party shall

                           (i) default in the due performance or observance of
                  any term, covenant or agreement contained in Sections 7.2,
                  7.9, 7.11, 7.12 or 7.13 or Section 8;

                           (ii) default in the due performance or observance of
                  any term, covenant or agreement contained in Sections 7.1(a),
                  (b), (c) or (d) and such default shall continue unremedied for
                  a period of at least 5 days after the earlier of an Executive
                  Officer of a Credit Party becoming aware of such default or
                  notice thereof by the Agent; or

                           (iii) default in the due performance or observance by
                  it of any term, covenant or agreement (other than those
                  referred to in subsections (a), (b), (c)(i) or (c)(ii) of this
                  Section 9.1) contained in this Credit Agreement or any other
                  Credit Document and such default shall continue unremedied for
                  a period of at least 30 days after the earlier of an Executive
                  Officer of a Credit Party becoming aware of such default or
                  notice thereof by the Agent; or

                  (d) Other Credit Documents. Except as a result of or in
         connection with a dissolution, merger or disposition of a Subsidiary
         not prohibited by Section 8.4 or Section 8.5, any Credit Document shall
         fail to be in full force and effect or to give the Agent and/or the
         Lenders the Liens, rights, powers and privileges purported to be
         created thereby, or any Credit Party shall so state in writing; or

                  (e) Guaranties. Except as the result of or in connection with
         a dissolution, merger or disposition of a Subsidiary not prohibited by
         Section 8.4 or Section 8.5, the guaranty given by any Guarantor
         hereunder (including any Person after the Closing Date in accordance
         with Section 7.12) or any provision thereof shall cease to be in full
         force and effect, or any Guarantor (including any Person after the
         Closing Date in accordance with Section 7.12) hereunder or any Person
         acting by or on behalf of such Guarantor shall deny or disaffirm such
         Guarantor's obligations under such guaranty, or any Guarantor shall
         default in the due performance or observance of any term, covenant or
         agreement on its part to be performed or observed pursuant to any
         guaranty; or

                  (f) Bankruptcy, etc. Any Bankruptcy Event shall occur with
         respect to the Parent, the Borrower or any Domestic Subsidiary; or

                                       94

<PAGE>   100

                  (g) Defaults under Other Agreements.

                           (i) Any Consolidated Party shall default in the
                  performance or observance (beyond the applicable grace period
                  with respect thereto, if any) or any material obligation or
                  condition of any contract or lease material to the
                  Consolidated Parties taken as a whole if such default could
                  reasonably be expected to have a Material Adverse Effect; or

                           (ii) With respect to any Indebtedness (other than
                  Indebtedness outstanding under this Credit Agreement) in
                  excess of $1,500,000 in the aggregate for the Consolidated
                  Parties (other than Foreign Subsidiaries which are not
                  Material Foreign Subsidiaries) taken as a whole, (A) either
                  (1) default in any payment shall occur and continue (beyond
                  the applicable grace period with respect thereto, if any) with
                  respect to any such Indebtedness, or (2) a default in the
                  observance or performance relating to such Indebtedness or
                  contained in any instrument or agreement evidencing, securing
                  or relating thereto, or any other event or condition shall
                  occur or exist, the effect of which default or other event or
                  condition is to cause, or permit, the holder or holders of
                  such Indebtedness (or trustee or agent on behalf of such
                  holders) to cause (determined without regard to whether any
                  notice or lapse of time is required), any such Indebtedness to
                  become due prior to its stated maturity; or (B) any such
                  Indebtedness shall be declared due and payable, or required to
                  be prepaid other than by a regularly scheduled required
                  prepayment, prior to the stated maturity thereof; or

                  (h) Judgments. One or more judgments or decrees shall be
         entered against one or more of the Consolidated Parties (other than
         Foreign Subsidiaries which are not Material Foreign Subsidiaries)
         involving a liability of $1,500,000 or more in the aggregate (to the
         extent not paid or fully covered by insurance provided by a carrier who
         has acknowledged coverage and has the ability to perform) and any such
         judgments or decrees shall not have been vacated, discharged or stayed
         or bonded pending appeal within 30 days from the entry thereof; or

                  (i) ERISA. Any of the following events or conditions, if such
         event or condition could involve possible taxes, penalties, and other
         liabilities in an aggregate amount which could reasonably be expected
         to have a Material Adverse Effect: (i) any "accumulated funding
         deficiency," as such term is defined in Section 302 of ERISA and
         Section 412 of the Code, whether or not waived, shall exist with
         respect to any Plan, or any lien shall arise on the assets of any
         Consolidated Party or any ERISA Affiliate in favor of the PBGC or a
         Plan; (ii) an ERISA Event shall occur with respect to a Single Employer
         Plan, which is, in the reasonable opinion of the Agent, likely to
         result in the termination of such Plan for purposes of Title IV of
         ERISA; (iii) an ERISA Event shall occur with respect to a Multiemployer
         Plan or Multiple Employer Plan, which is, in the reasonable opinion of
         the Agent, likely to result in (A) the termination of such Plan for
         purposes of Title IV of ERISA, or (B) any Consolidated Party or any
         ERISA Affiliate incurring any liability in connection with a withdrawal
         from, reorganization of (within the meaning of Section 4241 of ERISA),
         or insolvency (within the meaning of Section 4245 of ERISA) of such
         Plan; or

                                       95

<PAGE>   101

         (iv) any prohibited transaction (within the meaning of Section 406 of
         ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility shall occur which may subject any Consolidated Party or
         any ERISA Affiliate to any liability under Sections 406, 409, 502(i),
         or 502(l) of ERISA or Section 4975 of the Code, or under any agreement
         or other instrument pursuant to which any Consolidated Party or any
         ERISA Affiliate has agreed or is required to indemnify any person
         against any such liability; or

                  (j) Event of Default under Warburg Guaranty. The occurrence of
         an "Event of Default" under and as defined in the Warburg Guaranty; or

                  (k) Ownership. The occurrence of a Change of Control.

                  9.2 ACCELERATION; REMEDIES.

         Upon the occurrence and during the continuance of an Event of Default,
the Agent may or, upon the request and direction of the Required Lenders, shall,
by written notice to the Credit Parties take any of the following actions:

                  (a) Termination of Commitments. Declare the Commitments
         terminated whereupon the Commitments shall be immediately terminated.

                  (b) Acceleration. Declare the unpaid principal of and any
         accrued interest in respect of all Loans, any reimbursement obligations
         arising from drawings under Letters of Credit and any and all other
         indebtedness or obligations of any and every kind owing by the Credit
         Parties to the Agent and/or any of the Lenders hereunder to be due
         whereupon the same shall be immediately due and payable without
         presentment, demand, protest or other notice of any kind, all of which
         are hereby waived by the Credit Parties.

                  (c) Cash Collateral. Direct the Credit Parties to pay (and the
         Credit Parties agree that upon receipt of such notice they will
         immediately pay) to the Agent additional cash, to be held by the Agent,
         for the benefit of the Lenders, in a cash collateral account as
         additional security for the LOC Obligations in respect of subsequent
         drawings under all then outstanding Letters of Credit in an amount
         equal to the maximum aggregate amount which may be drawn under all
         Letters of Credits then outstanding.

                  (d) Enforcement of Rights. Enforce any and all rights and
         interests created and existing under the Credit Documents including,
         without limitation, all rights and remedies existing under the
         Collateral Documents, all rights and remedies against a Guarantor and
         all rights of set-off.

         Notwithstanding the foregoing, if an Event of Default specified in
Section 9.1(f) shall occur with respect to the Borrower, then, without the
giving of any notice or other action by the Agent or the Lenders, (i) the
Commitments automatically shall terminate, (ii) all Loans, all reimbursement
obligations arising from drawings under Letters of Credit, all accrued interest
in respect thereof, all accrued and unpaid Fees and other indebtedness or
obligations owing to the Agent and/or any of the Lenders hereunder automatically
shall immediately become due and payable and (iii) the Credit

                                       96

<PAGE>   102

Parties automatically shall be obligated to pay to the Agent additional cash, to
be held by the Agent, for the benefit of the Lenders, in a cash collateral
account as additional security for the LOC Obligations in respect of subsequent
drawings under all then outstanding Letters of Credit in an amount equal to the
maximum aggregate amount which may be drawn under all Letters of Credits then
outstanding.

                                   SECTION 10

                                AGENCY PROVISIONS

                  10.1 APPOINTMENT, POWERS AND IMMUNITIES.

         Each Lender hereby irrevocably appoints and authorizes the Agent to act
as its agent under this Credit Agreement and the other Credit Documents with
such powers and discretion as are specifically delegated to the Agent by the
terms of this Credit Agreement and the other Credit Documents, together with
such other powers as are reasonably incidental thereto. The Agent (which term as
used in this sentence and in Section 10.5 and the first sentence of Section 10.6
hereof shall include its Affiliates and its own and its Affiliates' officers,
directors, employees, and agents): (a) shall not have any duties or
responsibilities except those expressly set forth in this Credit Agreement and
shall not be a trustee or fiduciary for any Lender; (b) shall not be responsible
to the Lenders for any recital, statement, representation, or warranty (whether
written or oral) made in or in connection with any Credit Document or any
certificate or other document referred to or provided for in, or received by any
of them under, any Credit Document, or for the value, validity, effectiveness,
genuineness, enforceability, or sufficiency of any Credit Document, or any other
document referred to or provided for therein or for any failure by any Credit
Party or any other Person to perform any of its obligations thereunder; (c)
shall not be responsible for or have any duty to ascertain, inquire into, or
verify the performance or observance of any covenants or agreements by any
Credit Party or the satisfaction of any condition or to inspect the property
(including the books and records) of any Credit Party or any of its Subsidiaries
or Affiliates; and (d) shall not be responsible for any action taken or omitted
to be taken by it under or in connection with any Credit Document, except for
its own gross negligence or willful misconduct. The Agent may employ agents and
attorneys-in-fact and shall not be responsible for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it with reasonable care.

                  10.2 RELIANCE BY AGENT.

         The Agent shall be entitled to rely upon any certification, notice,
instrument, writing, or other communication (including, without limitation, any
thereof by telephone or telecopy) believed by it to be genuine and correct and
to have been signed, sent or made by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel (including counsel for
any Credit Party), independent accountants, and other experts selected by the
Agent. The Agent may deem and treat the payee of any Note as the holder thereof
for all purposes hereof unless and until the Agent receives and accepts an
Assignment and Acceptance executed in accordance with Section 11.3(b) hereof. As
to any matters not expressly provided for by this

                                       97

<PAGE>   103

Credit Agreement, the Agent shall not be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding on
all of the Lenders; provided, however, that the Agent shall not be required to
take any action that exposes the Agent to personal liability or that is contrary
to any Credit Document or applicable law or unless it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking any such action.

                  10.3 DEFAULTS.

         The Agent shall not be deemed to have knowledge or notice of the
occurrence of a Default or Event of Default unless the Agent has received
written notice from a Lender or a Credit Party specifying such Default or Event
of Default and stating that such notice is a "Notice of Default". In the event
that the Agent receives such a notice of the occurrence of a Default or Event of
Default, the Agent shall give prompt notice thereof to the Lenders. The Agent
shall (subject to Section 10.2 hereof) take such action with respect to such
Default or Event of Default as shall reasonably be directed by the Required
Lenders (or such other Lenders as required by Section 11.6), provided that,
unless and until the Agent shall have received such directions, the Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable in the best interest of the Lenders.

                  10.4 RIGHTS AS A LENDER.

         With respect to its Commitment and the Loans made by it, Bank of
America (and any successor acting as Agent) in its capacity as a Lender
hereunder shall have the same rights and powers hereunder as any other Lender
and may exercise the same as though it were not acting as the Agent, and the
term "Lender" or "Lenders" shall, unless the context otherwise indicates,
include the Agent in its individual capacity. Bank of America (and any successor
acting as Agent) and its Affiliates may (without having to account therefor to
any Lender) accept deposits from, lend money to, make investments in, provide
services to, and generally engage in any kind of lending, trust, or other
business with any Credit Party or any of its Subsidiaries or Affiliates as if it
were not acting as Agent, and Bank of America (and any successor acting as
Agent) and its Affiliates may accept fees and other consideration from any
Credit Party or any of its Subsidiaries or Affiliates for services in connection
with this Credit Agreement or otherwise without having to account for the same
to the Lenders.

                  10.5 INDEMNIFICATION.

         The Lenders agree to indemnify the Agent (to the extent not reimbursed
under Section 11.5 hereof, but without limiting the obligations of the Credit
Parties under such Section) ratably (in accordance with their respective (i)
Revolving Commitments (or, if the Revolving Commitments have been terminated,
the outstanding Revolving Loans and Participation Interests in Letters of Credit
(including the Participation Interests of the Issuing Lender in Letters of
Credit)), (ii) outstanding Tranche A Term Loans (and Participation Interests
therein) and (iii) outstanding

                                       98

<PAGE>   104

Tranche B Term Loans (and Participation Interests therein)) for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses (including attorneys' fees), or disbursements of any kind and
nature whatsoever that may be imposed on, incurred by or asserted against the
Agent (including by any Lender) in any way relating to or arising out of any
Credit Document or the transactions contemplated thereby or any action taken or
omitted by the Agent under any Credit Document; provided that no Lender shall be
liable for any of the foregoing to the extent they arise from the gross
negligence or willful misconduct of the Person to be indemnified. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly
upon demand for its ratable share of any costs or expenses payable by the Credit
Parties under Section 11.5, to the extent that the Agent is not promptly
reimbursed for such costs and expenses by the Credit Parties. The agreements in
this Section 10.5 shall survive the repayment of the Loans, LOC Obligations and
other obligations under the Credit Documents and the termination of the
Commitments hereunder.

                  10.6 NON-RELIANCE ON AGENT AND OTHER LENDERS.

         Each Lender agrees that it has, independently and without reliance on
the Agent or any other Lender, and based on such documents and information as it
has deemed appropriate, made its own credit analysis of the Credit Parties and
their Subsidiaries and decision to enter into this Credit Agreement and that it
will, independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not taking
action under the Credit Documents. Except for notices, reports, and other
documents and information expressly required to be furnished to the Lenders by
the Agent hereunder, the Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the affairs,
financial condition, or business of any Credit Party or any of its Subsidiaries
or Affiliates that may come into the possession of the Agent or any of its
Affiliates.

                  10.7 SUCCESSOR AGENT.

         The Agent may resign at any time by giving notice thereof to the
Lenders and the Credit Parties. Upon any such resignation, the Required Lenders
shall have the right to appoint a successor Agent. If no successor Agent shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Agent's giving of notice
of resignation, then the retiring Agent may, on behalf of the Lenders, appoint a
successor Agent which shall be a commercial bank organized under the laws of the
United States having combined capital and surplus of at least $100,000,000. Upon
the acceptance of any appointment as Agent hereunder by a successor, such
successor shall thereupon succeed to and become vested with all the rights,
powers, discretion, privileges, and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations hereunder.
After any retiring Agent's resignation hereunder as Agent, the provisions of
this Section 10 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as Agent.

                                       99

<PAGE>   105

                                   SECTION 11

                                  MISCELLANEOUS

                  11.1 NOTICES.

         Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered, (b) when transmitted via telecopy (or other facsimile device) to the
number set out below, (c) the Business Day following the day on which the same
has been delivered prepaid (or pursuant to an invoice arrangement) to a
reputable national overnight air courier service, or (d) the third Business Day
following the day on which the same is sent by certified or registered mail,
postage prepaid, in each case to the respective parties at the address, in the
case of the Credit Parties and the Agent, set forth below, and, in the case of
the Lenders, set forth on Schedule 2.1(a), or at such other address as such
party may specify by written notice to the other parties hereto:

         if to any Credit Party:

                  American Medical Systems, Inc.
                  10700 Bren Road
                  Minnetonka, Minnesota  55343-9679
                  Attn:  Greg Melsen
                  Telephone: (612) 930-6167
                  Telecopy:  (612) 930-6695

         if to the Agent:

                  Bank of America, N. A.
                  Independence Center, 15th Floor
                  NC1-001-15-04
                  101 North Tryon Street
                  Charlotte, North Carolina 28255
                  Attn:  Erik Truette, Agency Services
                  Telephone: (704) 388-1108
                  Telecopy:  (704) 409-0028

         with a copy to:

                                      100

<PAGE>   106

                  Bank of America, N. A.
                  Bank of America Corporate Center, 13th Floor
                  NC1-007-13-06
                  100 North Tryon Street
                  Charlotte, North Carolina 28255
                  Attn:  Kip Davis
                  Telephone: (704) 388-7731
                  Telecopy:  (704) 386-9607

                  11.2 RIGHT OF SET-OFF; ADJUSTMENTS.

         Upon the occurrence and during the continuance of any Event of Default,
each Lender (and each of its Affiliates) is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender (or any
of its Affiliates) to or for the credit or the account of any Credit Party
against any and all of the obligations of such Person now or hereafter existing
under this Credit Agreement, under the Notes, under any other Credit Document or
otherwise, irrespective of whether such Lender shall have made any demand
hereunder or thereunder and although such obligations may be unmatured. Each
Lender agrees promptly to notify any affected Credit Party after any such
set-off and application made by such Lender; provided, however, that the failure
to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section 11.2 are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) that such Lender may have.

                  11.3 BENEFIT OF AGREEMENT.

                  (a) This Credit Agreement shall be binding upon and inure to
         the benefit of and be enforceable by the respective successors and
         assigns of the parties hereto; provided that none of the Credit Parties
         may assign or transfer any of its interests and obligations without
         prior written consent of each of the Lenders; provided further that the
         rights of each Lender to transfer, assign or grant participations in
         its rights and/or obligations hereunder shall be limited as set forth
         in this Section 11.3.

                  (b) Each Lender may assign to one or more Eligible Assignees
         all or a portion of its rights and obligations under this Credit
         Agreement (including, without limitation, all or a portion of its
         Loans, its Notes, and its Commitment); provided, however, that

                           (i) each such assignment shall be to an Eligible
                  Assignee;

                           (ii) except in the case of an assignment to another
                  Lender, an Affiliate of an existing Lender or any fund that
                  invests in bank loans and is advised or managed by an
                  investment advisor to an existing Lender or an assignment of
                  all of a Lender's rights and obligations under this Credit
                  Agreement, any such partial assignment shall be in an amount
                  at least equal to $5,000,000 (or, if less, the

                                      101

<PAGE>   107

                  remaining amount of the Commitment being assigned by such
                  Lender) or an integral multiple of $1,000,000 in excess
                  thereof; and

                           (iii) the parties to such assignment shall execute
                  and deliver to the Agent for its acceptance an Assignment and
                  Acceptance in the form of Exhibit 11.3(b) (an "Assignment and
                  Acceptance"), together with any Note subject to such
                  assignment and a processing fee of $3,500.

         Upon execution, delivery, and acceptance of such Assignment and
         Acceptance, the assignee thereunder shall be a party hereto and, to the
         extent of such assignment, have the obligations, rights, and benefits
         of a Lender hereunder and the assigning Lender shall, to the extent of
         such assignment, relinquish its rights and be released from its
         obligations under this Credit Agreement. Upon the consummation of any
         assignment pursuant to this Section 11.3(b), the assignor, the Agent
         and the Credit Parties shall make appropriate arrangements so that, if
         required, new Notes are issued to the assignor and the assignee. If the
         assignee is not a United States person under Section 7701(a)(30) of the
         Code, it shall deliver to the Credit Parties and the Agent
         certification as to exemption from deduction or withholding of Taxes in
         accordance with Section 3.11.

                  (c) The Agent shall maintain (and the Borrower hereby
         designates the Agent to serve as the Borrower's agent to maintain) at
         its address referred to in Section 11.1 a copy of each Assignment and
         Acceptance delivered to and accepted by it and a register for the
         recordation of the names and addresses of the Lenders and the
         Commitment of, and principal amount of the Loans owing to, each Lender
         from time to time (the "Register"). The entries in the Register shall
         be conclusive and binding for all purposes, absent manifest error, and
         the Credit Parties, the Agent and the Lenders may treat each Person
         whose name is recorded in the Register as a Lender hereunder for all
         purposes of this Credit Agreement. The Register shall be available for
         inspection by the Credit Parties or any Lender at any reasonable time
         and from time to time upon reasonable prior notice. Any assignment of
         any Loan or other Credit Party Obligations shall be effective only upon
         an entry with respect thereto being made in the Register.

                  (d) Upon its receipt of an Assignment and Acceptance executed
         by the parties thereto, together with any Note subject to such
         assignment and payment of the processing fee, the Agent shall, if such
         Assignment and Acceptance has been completed and is in substantially
         the form of Exhibit 11.3(b) hereto, (i) accept such Assignment and
         Acceptance, (ii) record the information contained therein in the
         Register and (iii) give prompt notice thereof to the parties thereto.

                  (e) Each Lender may sell participations to one or more Persons
         in all or a portion of its rights, obligations or rights and
         obligations under this Credit Agreement (including all or a portion of
         its Commitment or its Loans); provided, however, that (i) such Lender's
         obligations under this Credit Agreement shall remain unchanged, (ii)
         such Lender shall remain solely responsible to the other parties hereto
         for the performance of such obligations, (iii) the participant shall be
         entitled to the benefit of the yield protection provisions contained in
         Sections 3.6 through 3.12, inclusive (but only to

                                      102

<PAGE>   108

         the extent that the selling Lender is so entitled), and the right of
         set-off contained in Section 11.2, and (iv) the Credit Parties shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Credit Agreement,
         and such Lender shall retain the sole right to enforce the obligations
         of the Credit Parties relating to the Credit Party Obligations owing to
         such Lender and to approve any amendment, modification, or waiver of
         any provision of this Credit Agreement (other than amendments,
         modifications, or waivers (A) decreasing the amount of principal of or
         the rate at which interest is payable on such Loans or Notes, (B)
         extending any scheduled principal payment date or date fixed for the
         payment of interest on such Loans or Notes, (C) extending its
         Commitment, (D) except as the result of or in connection with an Asset
         Disposition not prohibited by Section 8.5, releasing all or
         substantially all of the Collateral, (E) except as the result of or in
         connection with a dissolution, merger or disposition of a Consolidated
         Party not prohibited by Section 8.4 or Section 8.5, releasing the
         Borrower or substantially all of the other Credit Parties from its or
         their obligations under the Credit Documents or (D) releasing US
         Warburg from its obligations under the Warburg Guaranty).

                  (f) Notwithstanding any other provision set forth in this
         Credit Agreement, any Lender may at any time assign and pledge all or
         any portion of its Loans and its Notes (i) to any Federal Reserve Bank
         as collateral security pursuant to Regulation A and any Operating
         Circular issued by such Federal Reserve Bank or (ii) in the case of any
         Lender which has made Tranche B Term Loans hereunder and is an
         investment fund, to the trustee under the indenture to which such fund
         is a party in support of its obligations to such trustee for the
         benefit of the applicable trust beneficiaries. No such assignment shall
         release the assigning Lender from its obligations hereunder.

                  (g) Any Lender may furnish any information concerning the
         Consolidated Parties in the possession of such Lender from time to time
         to assignees and participants (including prospective assignees and
         participants), subject, however, to the provisions of Section 11.14
         hereof.

                  11.4 NO WAIVER; REMEDIES CUMULATIVE.

         No failure or delay on the part of the Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Credit
Document and no course of dealing between the Agent or any Lender and any of the
Credit Parties shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder or under any other
Credit Document preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder or thereunder. The rights and
remedies provided herein are cumulative and not exclusive of any rights or
remedies which the Agent or any Lender would otherwise have. No notice to or
demand on any Credit Party in any case shall entitle the Credit Parties to any
other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Agent or the Lenders to any other or
further action in any circumstances without notice or demand.

                                      103

<PAGE>   109
                  11.5     EXPENSES; INDEMNIFICATION.

                  (a) The Credit Parties jointly and severally agree to pay on
         demand all reasonable out-of-pocket costs and expenses of the Agent in
         connection with the syndication, preparation, execution, delivery,
         administration, modification, and amendment of this Credit Agreement,
         the other Credit Documents, and the other documents to be delivered
         hereunder, including, without limitation, the reasonable fees and
         expenses of counsel for the Agent (including the cost of internal
         counsel) with respect thereto and with respect to advising the Agent as
         to its rights and responsibilities under the Credit Documents. The
         Credit Parties further jointly and severally agree to pay on demand all
         costs and expenses of the Agent and the Lenders, if any (including,
         without limitation, reasonable attorneys' fees and expenses and the
         cost of internal counsel), in connection with any work-out or
         restructuring relating to the Credit Facilities or any enforcement
         (whether through negotiations, legal proceedings, or otherwise) of any
         of the Credit Documents.

                  (b) The Credit Parties jointly and severally agree to
         indemnify and hold harmless the Agent and each Lender and each of their
         Affiliates and their respective officers, directors, employees, agents,
         and advisors (each, an "Indemnified Party") from and against any and
         all claims, damages, losses, liabilities, costs, and expenses
         (including, without limitation, reasonable attorneys' fees) that may be
         incurred by or asserted or awarded against any Indemnified Party, in
         each case arising out of or in connection with or by reason of
         (including, without limitation, in connection with any investigation,
         litigation, or proceeding or preparation of defense in connection
         therewith) the Credit Documents, any of the transactions contemplated
         herein or the actual or proposed use of the proceeds of the Loans,
         except to the extent such claim, damage, loss, liability, cost, or
         expense is found in a final, non-appealable judgment by a court of
         competent jurisdiction to have resulted from such Indemnified Party's
         gross negligence or willful misconduct. In the case of an
         investigation, litigation or other proceeding to which the indemnity in
         this Section 11.5 applies, such indemnity shall be effective whether or
         not such investigation, litigation or proceeding is brought by any of
         the Credit Parties, their respective directors, shareholders or
         creditors or an Indemnified Party or any other Person or any
         Indemnified Party is otherwise a party thereto and whether or not the
         transactions contemplated hereby are consummated. The Credit Parties
         agree not to assert any claim against the Agent, any Lender, any of
         their Affiliates, or any of their respective directors, officers,
         employees, attorneys, agents, and advisers, on any theory of liability,
         for special, indirect, consequential, or punitive damages arising out
         of or otherwise relating to the Credit Documents, any of the
         transactions contemplated herein or the actual or proposed use of the
         proceeds of the Loans.

                  (c) Without prejudice to the survival of any other agreement
         of the Credit Parties hereunder, the agreements and obligations of the
         Credit Parties contained in this Section 11.5 shall survive the
         repayment of the Loans, LOC Obligations and other obligations under the
         Credit Documents and the termination of the Commitments hereunder.

                                      104
<PAGE>   110

                  11.6     AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing entered into by, or approved in writing by, each of the Credit Parties
party thereto and the Required Lenders, provided, however, that:

                  (a) without the consent of each Lender affected thereby,
         neither this Credit Agreement nor any other Credit Document may be
         amended, changed, waived, discharged or terminated so as to

                        (i) extend the final maturity of any Loan or of any
                  reimbursement obligation, or any portion thereof, arising from
                  drawings under Letters of Credit, or extend or waive any
                  Principal Amortization Payment of any Loan, or any portion
                  thereof,

                       (ii) reduce the rate or extend the time of payment of
                  interest on any Loan or of any reimbursement obligation, or
                  any portion thereof, arising from drawings under Letters of
                  Credit (other than as a result of waiving the applicability of
                  any post-default increase in interest rates) or of any Fees,

                      (iii) reduce or waive the principal amount of any Loan or
                  of any reimbursement obligation, or any portion thereof,
                  arising from drawings under Letters of Credit,

                       (iv) increase the Commitment of a Lender over the amount
                  thereof in effect (it being understood and agreed that a
                  waiver of any Default or Event of Default or mandatory
                  reduction in the Commitments shall not constitute a change in
                  the terms of any Commitment of any Lender),

                        (v) except as the result of or in connection with a
                  Permitted Asset Disposition and subject to the terms of
                  Section 11.6(e), release all or substantially all of the
                  Collateral,

                       (vi) except as the result of or in connection with a
                  dissolution, merger or disposition of a Consolidated Party not
                  prohibited by Section 8.4 or Section 8.5 and subject to the
                  terms of Section 11.6(e), release the Borrower or
                  substantially all of the other Credit Parties from its or
                  their obligations under the Credit Documents,

                       (vii) amend, modify or waive any provision of this
                  Section 11.6,

                      (viii) reduce any percentage specified in, or otherwise
                  modify, the definitions of Required Guaranteed Lenders,
                  Required Lenders or Required Tranche A Term Lenders,

                                      105
<PAGE>   111

                       (ix) release US Warburg from its obligations under the
                  Warburg Guaranty, or

                        (x) subject to the terms of Section 11.6(e), consent to
                  the assignment or transfer by the Borrower or all or
                  substantially all of the other Credit Parties of any of its or
                  their rights and obligations under (or in respect of) the
                  Credit Documents except as permitted thereby;

                  (b) without the consent of the Agent, no provision of Section
         10 may be amended, changed, waived, discharged or terminated;

                  (c) without the consent of the Issuing Lender, no provision of
         Section 2.2 may be amended, changed, waived, discharged or terminated;

                  (d) without the consent of the Required Tranche A Term
         Lenders, (A) no amendment, change, waiver, discharge or termination of
         any of the following which would have an adverse effect on the Tranche
         A Term Lenders shall be effective: (1) the definitions of "Asset
         Disposition", "Asset Disposition Prepayment Event", "Application
         Period", "Capital Stock", "Collateral", "Collateral Documents", "Debt
         Issuance", "Domestic Subsidiary", "Eligible Reinvestment", "Equity
         Issuance", "Excess Proceeds", "Excluded Asset Disposition", "Excluded
         Equity Issuance", "Excluded Property", "Foreign Subsidiary",
         "Guarantors", "Involuntary Disposition", "Joinder Agreement", "Lien",
         "Material Foreign Subsidiary", "Mortgaged Instruments", "Mortgaged
         Properties", "Mortgaged Policies", "Net Cash Proceeds", "Permitted
         Asset Disposition", "Permitted Liens", "Pledge Agreement", "Property",
         "Security Agreement", "Subsidiary", "Subsidiary Guarantor" and "Tranche
         A Obligations" set forth in Section 1.1, (2) Sections 3.3(a),
         3.3(b)(iii)-(vi),3.15(b), 4, 7.6(b), 7.12, 7.13, 8.2, 8.5 or 9.1(e) or
         (3) any of the Collateral Documents, and (B) neither this Credit
         Agreement nor any other Credit Document may be amended, changed,
         waived, discharged or terminated so as to (1) except as the result of
         or in connection with a Permitted Asset Disposition, release any of the
         Collateral, (2) except as the result of or in connection with a
         dissolution, merger or disposition of a Consolidated Party not
         prohibited by Section 8.4 or Section 8.5, release the Borrower or any
         of the other Credit Parties from its or their obligations under the
         Credit Documents or (3) consent to the assignment or transfer by the
         Borrower or any of the other Credit Parties of any of its or their
         rights and obligations under (or in respect of) the Credit Documents
         except as permitted thereby;

                  (e) without the consent of the Required Guaranteed Lenders, no
         amendment, change, waiver, discharge or termination of any of the
         following which would have an adverse effect on the Guaranteed Lenders
         shall be effective: (A) the definitions of "Guaranteed Lenders" set
         forth in Section 1.1, (B) the Warburg Guaranty or (C) Section 9.1(j);
         and

                  (f) without the consent of each Lender, no amendment, change,
         waiver, discharge or termination of Sections 5.2(a), (n), (o), (p) or
         (q) shall be effective.

                                      106
<PAGE>   112

         Notwithstanding the fact that the consent of all the Lenders is
         required in certain circumstances as set forth above, (x) each Lender
         is entitled to vote as such Lender sees fit on any bankruptcy
         reorganization plan that affects the Loans, and each Lender
         acknowledges that the provisions of Section 1126(c) of the Bankruptcy
         Code supersedes the unanimous consent provisions set forth herein and
         (y) the Required Lenders shall determine whether or not to allow a
         Credit Party to use cash collateral in the context of a bankruptcy or
         insolvency proceeding and such determination shall be binding on all of
         the Lenders.

                  11.7     COUNTERPARTS.

         This Credit Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. It shall not be necessary in
making proof of this Credit Agreement to produce or account for more than one
such counterpart for each of the parties hereto. Delivery by facsimile by any of
the parties hereto of an executed counterpart of this Credit Agreement shall be
as effective as an original executed counterpart hereof and shall be deemed a
representation that an original executed counterpart hereof will be delivered.

                  11.8     HEADINGS.

         The headings of the sections hereof are provided for convenience only
and shall not in any way affect the meaning or construction of any provision of
this Credit Agreement.

                  11.9     SURVIVAL.

         All indemnities set forth herein, including, without limitation, in
Section 2.2(i), 3.11, 3.12, 10.5 or 11.5 shall survive the execution and
delivery of this Credit Agreement, the making of the Loans, the issuance of the
Letters of Credit, the repayment of the Loans, LOC Obligations and other
obligations under the Credit Documents and the termination of the Commitments
hereunder, and all representations and warranties made by the Credit Parties
herein shall survive until this Credit Agreement shall be terminated in
accordance with the terms of Section 11.13.

                  11.10    GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE.

                  (a) THIS CREDIT AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY
         PROVIDED THEREIN, THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED
         BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
         STATE OF NEW YORK. Any legal action or proceeding with respect to this
         Credit Agreement or any other Credit Document may be brought in the
         courts of the State of New York in New York County, or of the United
         States for the Southern District of New York, and, by execution and
         delivery of this Credit Agreement, each of the Credit Parties hereby
         irrevocably accepts for itself and in respect of its property,
         generally and unconditionally, the nonexclusive jurisdiction of such
         courts. Each of the Credit Parties further irrevocably consents to the
         service of process out of any of the aforementioned courts in any such
         action or proceeding by the mailing of copies thereof

                                      107
<PAGE>   113

         by registered or certified mail, postage prepaid, to it at the address
         set out for notices pursuant to Section 11.1, such service to become
         effective three (3) days after such mailing. Nothing herein shall
         affect the right of the Agent or any Lender to serve process in any
         other manner permitted by law or to commence legal proceedings or to
         otherwise proceed against any Credit Party in any other jurisdiction.

                  (b) Each of the Credit Parties hereby irrevocably waives any
         objection which it may now or hereafter have to the laying of venue of
         any of the aforesaid actions or proceedings arising out of or in
         connection with this Credit Agreement or any other Credit Document
         brought in the courts referred to in subsection (a) above and hereby
         further irrevocably waives and agrees not to plead or claim in any such
         court that any such action or proceeding brought in any such court has
         been brought in an inconvenient forum.

                  (c) TO THE EXTENT PERMITTED BY LAW, EACH OF THE AGENT, THE
         LENDERS, EACH OF THE CREDIT PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT
         TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
         OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT
         DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                  11.11    SEVERABILITY.

         If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

                  11.12    ENTIRETY.

         This Credit Agreement together with the other Credit Documents
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.

                  11.13    TERMINATION.

         The term of this Credit Agreement shall be until the Credit Party
Obligations are Fully Satisfied.

                  11.14    CONFIDENTIALITY.

         The Agent and each Lender (each, a "Lending Party") agrees to keep
confidential any information furnished or made available to it by or on behalf
of the Credit Parties pursuant to this Credit Agreement; provided that nothing
herein shall prevent any Lending Party from disclosing such information (a) to
any other Lending Party or any Affiliate of any Lending Party, or any officer,
director, employee, agent, or advisor of any Lending Party or Affiliate of any
Lending

                                      108
<PAGE>   114

Party, (b) to any other Person if reasonably incidental to the administration of
the Credit Facilities, (c) as required by any law, rule, or regulation, (d) upon
the order of any court or administrative agency, (e) upon the request or demand
of any regulatory agency or authority, (f) that is or becomes available to the
public or that is or becomes available to any Lending Party other than as a
result of a disclosure by any Lending Party prohibited by this Credit Agreement,
(g) in connection with any litigation to which such Lending Party or any of its
Affiliates may be a party, (h) to the extent necessary in connection with the
exercise of any remedy under this Credit Agreement or any other Credit Document,
(i) to the National Association of Insurance Commissioners or any similar
organization or any nationally recognized rating agency that requires access to
information about a Lender's investment portfolio in connection with ratings
issued with respect to such Lender, (j) to any direct or indirect contractual
counterparty in swap agreements or such contractual counterparty's professional
advisor (so long as such contractual counterparty or professional advisor to
such contractual counterparty (i) has been approved in writing by the Borrower
and (ii) agrees in a writing enforceable by the Borrower to be bound by the
provisions of this Section 11.14) and (k) subject to provisions substantially
similar to those contained in this Section 11.14, to any actual or proposed
participant or assignee.

                  11.15    SOURCE OF FUNDS.

         Each of the Lenders hereby represents and warrants to the Borrower that
at least one of the following statements is an accurate representation as to the
source of funds to be used by such Lender in connection with the financing
hereunder:

                  (a) no part of such funds constitutes assets allocated to any
         separate account maintained by such Lender in which any employee
         benefit plan (or its related trust) has any interest;

                  (b) to the extent that any part of such funds constitutes
         assets allocated to any separate account maintained by such Lender,
         such Lender has disclosed to the Borrower the name of each employee
         benefit plan whose assets in such account exceed 10% of the total
         assets of such account as of the date of such purchase (and, for
         purposes of this clause (b), all employee benefit plans maintained by
         the same employer or employee organization are deemed to be a single
         plan);

                  (c) to the extent that any part of such funds constitutes
         assets of an insurance company's general account, such insurance
         company has complied with all of the requirements of the regulations
         issued under Section 401(c)(1)(A) of ERISA; or

                  (d) such funds constitute assets of one or more specific
         benefit plans which such Lender has identified in writing to the
         Borrower.

As used in this Section 11.15, the terms "employee benefit plan" and "separate
account" shall have the respective meanings assigned to such terms in Section 3
of ERISA.

                                      109
<PAGE>   115

                  11.16    REGULATION D.

         Each of the Lenders hereby represents and warrants to the Borrower that
it is a commercial lender, other financial institution or other "accredited"
investor (as defined in SEC Regulation D) which makes or acquires or loans on
the ordinary course of business and that it will make or acquire Loans for its
own account in the ordinary course of business.

                  11.17    CONFLICT.

         To the extent that there is a conflict or inconsistency between any
provision hereof, on the one hand, and any provision of any Credit Document, on
the other hand, this Credit Agreement shall control.

                           [Signature Page to Follow]

                                      110
<PAGE>   116

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Credit Agreement to be duly executed and delivered as of the date first
above written.

BORROWER:                                   AMERICAN MEDICAL SYSTEMS, INC.

                                            By:  /s/ Gregory J. Melsen
                                               ----------------------------
                                            Name:  Gregory J. Melsen
                                                 --------------------------
                                            Title:  Vice President -
                                                  -------------------------
                                                    Finance, Treasurer and
                                                  -------------------------
                                                    Chief Financial Officer
                                                  -------------------------

SUBSIDIARY
GUARANTOR:                                  INFLUENCE, INC.

                                            By:  /s/ Gregory J. Melsen
                                               ----------------------------
                                            Name:  Gregory J. Melsen
                                                 --------------------------
                                            Title:  Chief Financial Officer
                                                  -------------------------

<PAGE>   117

LENDERS:                                    BANK OF AMERICA, N. A.,
                                            individually in its capacity as a
                                            Lender and in its capacity as Agent

                                            By:  /s/ John J. O'Neill
                                               ----------------------------
                                            Name:  John J. O'Neill
                                                 --------------------------
                                            Title:  Managing Director
                                                  -------------------------

                                            BANKERS TRUST COMPANY

                                            By:  /s/ David J. Bell
                                               ----------------------------
                                            Name:  David J. Bell
                                                 --------------------------
                                            Title:  Principal
                                                  -------------------------

                                            U.S. BANK NATIONAL ASSOCIATION

                                            By:  /s/ Mark K. Olson
                                               ----------------------------
                                            Name:  Mark K. Olson
                                                 --------------------------
                                            Title:  Senior Vice President
                                                  -------------------------

                                            FLEET NATIONAL BANK

                                            By:  /s/ Timothy G. Clifford
                                               ----------------------------
                                            Name:  Timothy G. Clifford
                                                 --------------------------
                                            Title:  Director
                                                  -------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]